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HF 1

1st Engrossment - 86th Legislature, 2010 1st Special Session (2010 - 2010) Posted on 05/17/2010 12:30pm

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A bill for an act
relating to the state budget; balancing proposed general fund spending and
anticipated general fund revenue; modifying certain payment schedules to
improve cash flow; making reductions in appropriations for E-12 education,
higher education, environment and natural resources, energy and commerce,
agriculture, economic development, transportation, public safety, state
government, human services, and health; modifying calculation of state tax aids
and credits; providing for deposit of certain receipts in the special revenue fund
rather than the general fund; making changes to health and human services policy
provisions including state health care programs, continuing care, children and
family services, health care reform, Department of Health, public health, health
plans; increasing fees; requiring reports; making supplemental and contingent
appropriations and reductions for the Departments of Health and Human Services
and other health-related boards and councils;amending Minnesota Statutes
2008, sections 3.9741, subdivision 2; 8.15, subdivision 3; 13.03, subdivision 10;
13.3806, subdivision 13; 16C.23, subdivision 6; 62D.08, by adding a subdivision;
62J.692, subdivision 4; 62Q.19, subdivision 1; 103B.101, subdivision 9;
103I.681, subdivision 11; 116J.551, subdivision 1; 123B.75, subdivisions 5, 9, by
adding a subdivision; 126C.48, subdivision 7; 127A.441; 127A.45, subdivisions
2, 3, 13, by adding a subdivision; 127A.46; 144.05, by adding a subdivision;
144.226, subdivision 3; 144.293, subdivision 4; 144.603; 144.605, subdivisions
2, 3, by adding a subdivision; 144.608, subdivision 1; 144.651, subdivision 2;
144.9504, by adding a subdivision; 144A.51, subdivision 5; 144D.03, subdivision
2; 144D.04, subdivision 2; 144E.37; 144G.06; 152.126, as amended; 190.32;
214.40, subdivision 7; 246.18, by adding a subdivision; 254B.01, subdivision
2; 254B.02, subdivisions 1, 5; 254B.03, subdivision 4, by adding a subdivision;
254B.05, subdivision 4; 254B.06, subdivision 2; 254B.09, subdivision 8; 256.01,
by adding a subdivision; 256B.04, subdivision 14a; 256B.055, by adding a
subdivision; 256B.056, subdivisions 3, 4; 256B.057, subdivision 9; 256B.0625,
subdivisions 8, 8a, 8b, 18a, 22, 31, by adding subdivisions; 256B.0631,
subdivisions 1, 3; 256B.0644, as amended; 256B.0915, by adding a subdivision;
256B.19, subdivision 1c; 256B.69, subdivision 27, by adding a subdivision;
256B.692, subdivision 1; 256B.76, subdivisions 2, 4; 256D.03, subdivision
3b; 256D.031, subdivision 5, as added; 256D.0515; 256I.05, by adding a
subdivision; 256J.24, subdivision 6; 256L.07, by adding a subdivision; 256L.11,
subdivision 6; 256L.12, subdivisions 5, 9; 256L.15, subdivision 1; 257.69,
subdivision 2; 260C.331, subdivision 6; 273.1384, subdivision 6, as added;
276.112; 289A.60, by adding a subdivision; 299C.48; 299E.02; 446A.086,
subdivision 2, as amended; 469.177, subdivision 11; 517.08, subdivision 1c, as
amended; 518.165, subdivision 3; 609.3241; 611.20, subdivision 3; Minnesota
Statutes 2009 Supplement, sections 123B.54; 137.025, subdivision 1; 157.16,
subdivision 3; 252.27, subdivision 2a; 256.969, subdivisions 2b, 3a; 256.975,
subdivision 7; 256B.0625, subdivision 13h; 256B.0659, subdivision 11;
256B.0911, subdivision 1a; 256B.441, subdivision 55; 256B.69, subdivisions
5a, 23; 256B.76, subdivision 1; 256B.766; 256D.03, subdivision 3, as amended;
256J.425, subdivision 3; 256J.621; 256L.03, subdivision 5; 270.97; 289A.20,
subdivision 4; 327.15, subdivision 3; 517.08, subdivision 1b; Laws 1994, chapter
531, section 1; Laws 2005, First Special Session chapter 4, article 8, section 66,
as amended; Laws 2009, chapter 79, article 3, section 18; article 5, sections
17; 18; 22; 75, subdivision 1; 78, subdivision 5; article 8, sections 4; 51; 84;
article 13, sections 3, subdivisions 1, as amended, 3, as amended, 4, as amended,
8, as amended; 4, subdivision 4, as amended; 5, subdivision 8, as amended;
Laws 2009, chapter 96, article 1, section 24, subdivisions 2, 4, 5, 6, 7; article 2,
section 67, subdivisions 2, 3, 4, 7, 9; article 3, section 21, subdivisions 2, 4, 5;
article 4, section 12, subdivisions 2, 3, 4, 6; article 5, section 13, subdivisions
4, 6, 7, 9; article 6, section 11, subdivisions 2, 3, 4, 6, 7, 8, 9, 12; article 7,
section 3, subdivision 2; Laws 2009, chapter 173, article 1, section 17; Laws
2010, chapter 200, article 1, sections 12, subdivisions 6, 7, 8; 16; 21; article 2,
section 2, subdivisions 1, 4, 5, 8; Laws 2010, chapter 215, article 3, section 3,
subdivision 6; article 13, section 6; proposing coding for new law in Minnesota
Statutes, chapters 62D; 62E; 62Q; 137; 144; 144D; 246; 254B; 256; 256B; 477A;
repealing Minnesota Statutes 2008, sections 144.607; 254B.02, subdivisions 2, 3,
4; 254B.09, subdivisions 4, 5, 7; 256D.03, subdivisions 3, 3a, 5, 6, 7, 8; Laws
2009, chapter 79, article 7, section 26, subdivision 3; Laws 2010, chapter 200,
article 1, sections 12, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10; 18; 19.

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

ARTICLE 1

SUMMARY

Section 1. GENERAL FUND SUMMARY.

The amounts shown in this section summarize general fund direct and open
appropriations, and transfers into the general fund from other funds, made in articles 2 to
15, after forecast adjustments and after voiding certain allotment reductions.

2010
2011
Total
E-12 Education
$
(1,069,361,000)
$
(893,834,000)
$
(1,963,195,000)
Higher Education
(77,000)
(100,077,000)
(100,154,000)
Environment and Natural
Resources
(1,571,000)
(1,564,000)
(3,135,000)
Energy
(247,000)
(247,000)
(494,000)
Agriculture
(493,000)
(492,000)
(985,000)
Economic Development
(489,000)
(745,000)
(1,234,000)
Transportation
(1,649,000)
(11,649,000)
(13,298,000)
Public Safety
(79,000)
(79,000)
(158,000)
State Government
(1,694,000)
(1,820,000)
(3,514,000)
Health and Human Services
(74,704,000)
(83,154,000)
(157,858,000)
Tax Aids and Credits
(103,986,000)
(260,495,000)
(364,481,000)
Subtotal of Appropriations
(1,254,530,000)
(1,354,156,000)
(2,608,686,000)
Transfers In
40,418,000
40,000,000
80,418,000
Total
$
(1,294,948,000)
$
(1,394,156,000)
$
(2,689,104,000)

Sec. 2. ALLOTMENT REDUCTIONS VOID.

The allotment reductions made by the commissioner of management and budget
from July 1, 2009, to the effective date of this section are void.

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 2

CASH FLOW

Section 1.

Minnesota Statutes 2008, section 127A.46, is amended to read:


127A.46 CHANGE IN PAYMENT OF AIDS AND CREDITS.

If the commissioner of management and budget determines that modifications in the
payment schedule would reduce the need for state short-term borrowing, the commissioner
shall may modify payments to districts according to this section. The modifications must
begin no sooner than September 1 of each fiscal year, and must remain in effect until no
later than May 30 of that same fiscal year. In calculating the payment to a district pursuant
to section 127A.45, subdivision 3, the commissioner may subtract the sum specified in
that subdivision, plus an additional amount no greater than the following:

(1) the net cash balance in each of the district's operating funds on June 30 of the
preceding fiscal year; minus

(2) the product of $150 $700 times the number of resident pupil units in the
preceding fiscal year; minus

(3) the amount of payments made by the county treasurer during the preceding fiscal
year, pursuant to section 276.11, which is considered revenue for the current school year.
However, no additional amount shall be subtracted if the total of the net unappropriated
fund balances in the district's four operating funds on June 30 of the preceding fiscal year,
is less than the product of $350 $700 times the number of resident pupil units in the
preceding fiscal year. The net cash balance must include all cash and investments, less
certificates of indebtedness outstanding, and orders not paid for want of funds.

A district may appeal the payment schedule established by this section according to
the procedures established in section 127A.45, subdivision 4.

Sec. 2.

Minnesota Statutes 2009 Supplement, section 137.025, subdivision 1, is
amended to read:


Subdivision 1.

Monthly payments.

The commissioner of management and budget
shall pay 1/12 of the annual appropriation to the University of Minnesota on by the 21st
25th
day of each month. If the 21st 25th day of the month falls on a Saturday or Sunday,
the monthly payment must be made on by the first business day immediately following
the 21st 25th day of the month.

Sec. 3.

Minnesota Statutes 2008, section 276.112, is amended to read:


276.112 STATE PROPERTY TAXES; COUNTY TREASURER.

On or before January 25 each year, for the period ending December 31 of the
prior year, and on or before June 28 each year, for the period ending on the most recent
settlement day determined in section 276.09, and on or before December 2 each year, for
the period ending November 20
the estimated payment and settlement dates provided in
this chapter for the settlement of taxes levied by school districts
, the county treasurer must
make full settlement with the county auditor according to sections 276.09, 276.10, and
276.111
for all receipts of state property taxes levied under section 275.025, and must
transmit those receipts to the commissioner of revenue by electronic means on the dates
and according to the provisions applicable to distributions to school districts
.

EFFECTIVE DATE.

This section is effective for distributions beginning October
1, 2010, and thereafter.

Sec. 4.

Minnesota Statutes 2009 Supplement, section 289A.20, subdivision 4, is
amended to read:


Subd. 4.

Sales and use tax.

(a) The taxes imposed by chapter 297A are due and
payable to the commissioner monthly on or before the 20th day of the month following
the month in which the taxable event occurred, or following another reporting period
as the commissioner prescribes or as allowed under section 289A.18, subdivision 4,
paragraph (f) or (g), except that:

(1) use taxes due on an annual use tax return as provided under section 289A.11,
subdivision 1
, are payable by April 15 following the close of the calendar year.; and

(2) except as provided in paragraph (f), for a vendor having a liability of $120,000
or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes
imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the
commissioner monthly in the following manner:

(i) On or before the 14th day of the month following the month in which the taxable
event occurred, the vendor must remit to the commissioner 90 percent of the estimated
liability for the month in which the taxable event occurred.

(ii) On or before the 20th day of the month in which the taxable event occurs, the
vendor must remit to the commissioner a prepayment for the month in which the taxable
event occurs equal to 67 percent of the liability for the previous month.

(iii) On or before the 20th day of the month following the month in which the taxable
event occurred, the vendor must pay any additional amount of tax not previously remitted
under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than
the vendor's liability for the month in which the taxable event occurred, the vendor may
take a credit against the next month's liability in a manner prescribed by the commissioner.

(iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to
continue to make payments in the same manner, as long as the vendor continues having a
liability of $120,000 or more during the most recent fiscal year ending June 30.

(v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required
payment in the first month that the vendor is required to make a payment under either item
(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make
subsequent monthly payments in the manner provided in item (ii).

(vi) For vendors making an accelerated payment under item (ii), for the first month
that the vendor is required to make the accelerated payment, on the 20th of that month, the
vendor will pay 100 percent of the liability for the previous month and a prepayment for
the first month equal to 67 percent of the liability for the previous month.

(b) Notwithstanding paragraph (a), a vendor having a liability of $120,000 or more
during a fiscal year ending June 30 must remit the June liability for the next year in the
following manner:

(1) Two business days before June 30 of the year, the vendor must remit 90 percent
of the estimated June liability to the commissioner.

(2) On or before August 20 of the year, the vendor must pay any additional amount
of tax not remitted in June.

(c) A vendor having a liability of:

(1) $20,000 or more in the fiscal year ending June 30, 2005; or

(2) (1) $10,000 or more in the, but less than $120,000 during a fiscal year ending
June 30, 2006 2009, and fiscal years thereafter, must remit by electronic means all
liabilities on returns due for periods beginning in the subsequent calendar year by
electronic means
on or before the 20th day of the month following the month in which the
taxable event occurred, or on or before the 20th day of the month following the month in
which the sale is reported under section 289A.18, subdivision 4, except for 90 percent of
the estimated June liability, which is due two business days before June 30. The remaining
amount of the June liability is due on August 20.
; or

(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years
thereafter, must remit by electronic means all liabilities in the manner provided in
paragraph (a), clause (2), on returns due for periods beginning in the subsequent calendar
year, except for 90 percent of the estimated June liability, which is due two business days
before June 30. The remaining amount of the June liability is due on August 20.

(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
religious beliefs from paying electronically shall be allowed to remit the payment by mail.
The filer must notify the commissioner of revenue of the intent to pay by mail before
doing so on a form prescribed by the commissioner. No extra fee may be charged to a
person making payment by mail under this paragraph. The payment must be postmarked
at least two business days before the due date for making the payment in order to be
considered paid on a timely basis.

(e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed
under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the
chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and
paid with the chapter 297A taxes, then the payment of all the liabilities on the return must
be accelerated as provided in this subdivision.

(f) At the start of the first calendar quarter at least 90 days after the cash flow
account established in section 16A.152, subdivision 1, and the budget reserve account
established in section 16A.152, subdivision 1a, reach the amounts listed in section
16A.152, subdivision 2, paragraph (a), the remittance of the accelerated payments required
under paragraph (a), clause (2), must be suspended. The commissioner of management
and budget shall notify the commissioner of revenue when the accounts have reached
the required amounts. Beginning with the suspension of paragraph (a), clause (2), for a
vendor with a liability of $120,000 or more during a fiscal year ending June 30, 2009,
and fiscal years thereafter, the taxes imposed by chapter 297A are due and payable to the
commissioner on the 20th day of the month following the month in which the taxable
event occurred. Payments of tax liabilities for taxable events occurring in June under
paragraph (b) are not changed.

EFFECTIVE DATE.

This section is effective for taxes due and payable after
September 1, 2010.

Sec. 5.

Minnesota Statutes 2008, section 289A.60, is amended by adding a subdivision
to read:


Subd. 31.

Accelerated payment of monthly sales tax liability; penalty for
underpayment.

For payments made after September 1, 2010, if a vendor is required
by section 289A.20, subdivision 4, paragraph (a), clause (2), item (i) or (ii), to make
accelerated payments, then the penalty for underpayment is as follows:

(a) For those vendors that must remit a 90 percent payment by the 14th day of
the month following the month in which the taxable event occurred, as an estimation
of monthly sales tax liabilities, including the liability of any fee or other tax that is to
be reported on the same return as and paid with the chapter 297A taxes, for the month
in which the taxable event occurred, the vendor shall pay a penalty equal to ten percent
of the amount of liability that was required to be paid by the 14th day of the month, less
the amount remitted by the 14th day of the month. The penalty must not be imposed,
however, if the amount remitted by the 14th day of the month equals the least of: (1) 90
percent of the liability for the month preceding the month in which the taxable event
occurred; (2) 90 percent of the liability for the same month in the previous calendar year
as the month in which the taxable event occurred; or (3) 90 percent of the average monthly
liability for the previous calendar year.

(b) For those vendors that, on or before the 20th day of the month in which the
taxable event occurs, must remit to the commissioner a prepayment of sales tax liabilities
for the month in which the taxable event occurs equal to 67 percent of the liabilities for the
previous month, including the liability of any fee or other tax that is to be reported on the
same return as and paid with the chapter 297A taxes, for the month in which the taxable
event occurred, the vendor shall pay a penalty equal to ten percent of the amount of liability
that was required to be paid by the 20th of the month, less the amount remitted by the 20th
of the month. The penalty must not be imposed, however, if the amount remitted by the
20th of the month equals the lesser of 67 percent of the liability for the month preceding
the month in which the taxable event occurred or 67 percent of the liability of the same
month in the previous calendar year as the month in which the taxable event occurred.

EFFECTIVE DATE.

This section is effective for taxes due and payable after
September 1, 2010.

ARTICLE 3

E-12 EDUCATION

Section 1.

Minnesota Statutes 2008, section 123B.75, is amended by adding a
subdivision to read:


Subd. 1a.

Definition.

For the purposes of this section, "school district tax settlement
revenue" means the current, delinquent, and manufactured home property tax receipts
collected by the county and distributed to the school district.

EFFECTIVE DATE.

This section is effective retroactively from July 1, 2009.

Sec. 2.

Minnesota Statutes 2008, section 123B.75, subdivision 5, is amended to read:


Subd. 5.

Levy recognition.

(a) "School district tax settlement revenue" means the
current, delinquent, and manufactured home property tax receipts collected by the county
and distributed to the school district.

(b) For fiscal year 2004 and later years 2009 and 2010, in June of each year, the
school district must recognize as revenue, in the fund for which the levy was made, the
lesser of:

(1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4
, received in July and August of that calendar year; or

(2) the sum of:

(i) 31 percent of the referendum levy certified according to section 126C.17, in
calendar year 2000; and

(ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph
(a)
, and 3
, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
subdivision 6
; plus

(iii) zero percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
not including the levy portions that are assumed by the state, that remains after subtracting
the referendum levy certified according to section 126C.17 and the amount recognized
according to item (ii)
.

(b) For fiscal year 2011 and later years, in June of each year, the school district must
recognize as revenue, in the fund for which the levy was made, the lesser of:

(1) the sum of May, June, and July school district tax settlement revenue received in
that calendar year, plus general education aid according to section 126C.13, subdivision
4, received in July and August of that calendar year; or

(2) the sum of:

(i) the greater of 48.6 percent of the referendum levy certified according to section
126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
according to section 126C.17 in calendar year 2000; plus

(ii) the entire amount of the levy certified in the prior calendar year according to
section 124D.86, subdivision 4, for school districts receiving revenue under sections
124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, paragraph
(a), and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; 126C.457; and 126C.48,
subdivision 6; plus

(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
school district's general and community service funds, plus or minus auditor's adjustments,
not including the levy portions that are assumed by the state, that remains after subtracting
the referendum levy certified according to section 126C.17 and the amount recognized
according to item (ii).

EFFECTIVE DATE.

This section is effective retroactively from July 1, 2009.

Sec. 3.

Minnesota Statutes 2008, section 123B.75, subdivision 9, is amended to read:


Subd. 9.

Commissioner shall specify fiscal year.

The commissioner shall specify
the fiscal year or years to which the revenue from any aid or tax levy is applicable if
Minnesota Statutes do not so specify. The commissioner must report to the chairs and
ranking minority members of the house of representatives and senate committees with
jurisdiction over education finance by January 15 of each year any adjustments under this
subdivision in the previous year.

Sec. 4.

Minnesota Statutes 2008, section 126C.48, subdivision 7, is amended to read:


Subd. 7.

Reporting.

For each tax settlement, the county auditor shall report to each
school district by fund, the district tax settlement revenue defined in section 123B.75,
subdivision 5
, paragraph (a) 1a, on the form specified in section 276.10. The county auditor
shall send to the district a copy of the spread levy report specified in section 275.124.

EFFECTIVE DATE.

This section is effective retroactively from July 1, 2009.

Sec. 5.

Minnesota Statutes 2008, section 127A.441, is amended to read:


127A.441 AID REDUCTION; LEVY REVENUE RECOGNITION CHANGE.

Each year, the state aids payable to any school district for that fiscal year that are
recognized as revenue in the school district's general and community service funds shall
be adjusted by an amount equal to (1) the amount the district recognized as revenue for the
prior fiscal year pursuant to section 123B.75, subdivision 5, paragraph (a) or (b), minus (2)
the amount the district recognized as revenue for the current fiscal year pursuant to section
123B.75, subdivision 5, paragraph (a) or (b). For purposes of making the aid adjustments
under this section, the amount the district recognizes as revenue for either the prior fiscal
year or the current fiscal year pursuant to section 123B.75, subdivision 5, paragraph (b),
shall not include any amount levied pursuant to section 124D.86, subdivision 4, for school
districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3);
126C.41, subdivisions 1, 2, and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2;
126C.457; and 126C.48, subdivision 6. Payment from the permanent school fund shall not
be adjusted pursuant to this section. The school district shall be notified of the amount of
the adjustment made to each payment pursuant to this section.

EFFECTIVE DATE.

This section is effective retroactively from July 1, 2009.

Sec. 6.

Minnesota Statutes 2008, section 127A.45, subdivision 2, is amended to read:


Subd. 2.

Definitions.

(a) The term "Other district receipts" means payments by
county treasurers pursuant to section 276.10, apportionments from the school endowment
fund pursuant to section 127A.33, apportionments by the county auditor pursuant to
section 127A.34, subdivision 2, and payments to school districts by the commissioner of
revenue pursuant to chapter 298.

(b) The term "Cumulative amount guaranteed" means the product of

(1) the cumulative disbursement percentage shown in subdivision 3; times

(2) the sum of

(i) the current year aid payment percentage of the estimated aid and credit
entitlements paid according to subdivision 13; plus

(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus

(iii) the other district receipts.

(c) The term "Payment date" means the date on which state payments to districts
are made by the electronic funds transfer method. If a payment date falls on a Saturday,
a Sunday, or a weekday which is a legal holiday, the payment shall be made on the
immediately preceding business day. The commissioner may make payments on dates
other than those listed in subdivision 3, but only for portions of payments from any
preceding payment dates which could not be processed by the electronic funds transfer
method due to documented extenuating circumstances.

(d) The current year aid payment percentage equals 90 73 in fiscal year 2010, 70
in fiscal year 2011, and 90 in fiscal years 2012 and later
.

EFFECTIVE DATE.

This section is effective retroactively from July 1, 2009.

Sec. 7.

Minnesota Statutes 2008, section 127A.45, subdivision 3, is amended to read:


Subd. 3.

Payment dates and percentages.

(a) For fiscal year 2004 and later, The
commissioner shall pay to a district on the dates indicated an amount computed as follows:
the cumulative amount guaranteed minus the sum of (a) (1) the district's other district
receipts through the current payment, and (b) (2) the aid and credit payments through the
immediately preceding payment. For purposes of this computation, the payment dates and
the cumulative disbursement percentages are as follows:

Payment date
Percentage
Payment 1
July 15:
5.5
Payment 2
July 30:
8.0
Payment 3
August 15:
17.5
Payment 4
August 30:
20.0
Payment 5
September 15:
22.5
Payment 6
September 30:
25.0
Payment 7
October 15:
27.0
Payment 8
October 30:
30.0
Payment 9
November 15:
32.5
Payment 10
November 30:
36.5
Payment 11
December 15:
42.0
Payment 12
December 30:
45.0
Payment 13
January 15:
50.0
Payment 14
January 30:
54.0
Payment 15
February 15:
58.0
Payment 16
February 28:
63.0
Payment 17
March 15:
68.0
Payment 18
March 30:
74.0
Payment 19
April 15:
78.0
Payment 20
April 30:
85.0
Payment 21
May 15:
90.0
Payment 22
May 30:
95.0
Payment 23
June 20:
100.0

(b) In addition to the amounts paid under paragraph (a), for fiscal year 2004, the
commissioner shall pay to a district on the dates indicated an amount computed as follows:

Payment 3
August 15: the final adjustment for the prior fiscal year for the state paid
property tax credits established in section 273.1392
Payment 4
August 30: one-third of the final adjustment for the prior fiscal year for
all aid entitlements except state paid property tax credits
Payment 6
September 30: one-third of the final adjustment for the prior fiscal year
for all aid entitlements except state paid property tax credits
Payment 8
October 30: one-third of the final adjustment for the prior fiscal year for
all aid entitlements except state paid property tax credits

(c) (b) In addition to the amounts paid under paragraph (a), for fiscal year 2005 and
later,
the commissioner shall pay to a district on the dates indicated an amount computed
as follows:

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

EFFECTIVE DATE.

This section is effective the day following final enactment
and applies to fiscal years 2010 and later.

Sec. 8.

Minnesota Statutes 2008, section 127A.45, is amended by adding a subdivision
to read:


Subd. 7b.

Advance final payment.

(a) Notwithstanding subdivisions 3 and 7, if the
current year aid payment percentage, under subdivision 2, is less than 90, then a school
district or charter school exceeding its expenditure limitations under section 123B.83 as of
June 30 of the prior fiscal year may receive a portion of its final payment for the current
fiscal year on June 20, if requested by the district or charter school. The amount paid
under this subdivision must not exceed the lesser of:

(1) the difference between 90 percent and the current year payment percentage in
subdivision 2, paragraph (d), in the current fiscal year times the sum of the district or
charter school's general education aid plus the aid adjustment in section 127A.50 for
the current fiscal year; or

(2) the amount by which the district's or charter school's net negative unreserved
general fund balance as of June 30 of the prior fiscal year exceeds 2.5 percent of the
district or charter school's expenditures for that fiscal year.

(b) The state total advance final payment under this subdivision for any year must
not exceed $7,500,000. If the amount request exceeds $7,500,000, the advance final
payment for each eligible district must be reduced proportionately.

EFFECTIVE DATE.

This section is effective the day following final enactment
and applies to fiscal years 2010 and later.

Sec. 9.

Minnesota Statutes 2008, section 127A.45, subdivision 13, is amended to read:


Subd. 13.

Aid payment percentage.

Except as provided in subdivisions 11, 12, 12a,
and 14, each fiscal year, all education aids and credits in this chapter and chapters 120A,
120B, 121A, 122A, 123A, 123B, 124D, 125A, 125B, 126C, 134, and section 273.1392,
shall be paid at the current year aid payment percentage of the estimated entitlement during
the fiscal year of the entitlement. For the purposes of this subdivision, a district's estimated
entitlement for special education excess cost aid under section 125A.79 for fiscal year
2005 equals 70 percent of the district's entitlement for the second prior fiscal year.
For the
purposes of this subdivision, a district's estimated entitlement for special education excess
cost aid under section 125A.79 for fiscal year 2006 and later equals 74.0 percent of the
district's entitlement for the current fiscal year. The final adjustment payment, according
to subdivision 9, must be the amount of the actual entitlement, after adjustment for actual
data, minus the payments made during the fiscal year of the entitlement.

Sec. 10.

Laws 2009, chapter 96, article 1, section 24, subdivision 2, is amended to read:


Subd. 2.

General education aid.

For general education aid under Minnesota
Statutes, section 126C.13, subdivision 4:

$
5,195,504,000
4,291,422,000
.....
2010
$
5,626,994,000
4,776,884,000
.....
2011

The 2010 appropriation includes $555,864,000 $553,591,000 for 2009 and
$4,639,640,000 $3,737,831,000 for 2010.

The 2011 appropriation includes $500,976,000 $1,363,306,000 for 2010 and
$5,126,018,000 $3,413,578,000 for 2011.

Sec. 11.

Laws 2009, chapter 96, article 6, section 11, subdivision 6, is amended to read:


Subd. 6.

Educate parents partnership.

For the educate parents partnership under
Minnesota Statutes, section 124D.129:

$
50,000 49,000
.....
2010
$
50,000 49,000
.....
2011

Any balance in the first year does not cancel but is available in the second year.

Sec. 12.

Laws 2009, chapter 96, article 6, section 11, subdivision 7, is amended to read:


Subd. 7.

Kindergarten entrance assessment initiative and intervention
program.

For the kindergarten entrance assessment initiative and intervention program
under Minnesota Statutes, section 124D.162:

$
287,000 281,000
.....
2010
$
287,000 281,000
.....
2011

Any balance in the first year does not cancel but is available in the second year.

Sec. 13.

Laws 2009, chapter 96, article 7, section 3, subdivision 2, is amended to read:


Subd. 2.

Department.

(a) For the Department of Education:

$
20,943,000
20,147,600
.....
2010
$
20,943,000
19,811,000
.....
2011

Any balance in the first year does not cancel but is available in the second year.

(b) $260,000 each year is for the Minnesota Children's Museum.

(c) $41,000 each year is for the Minnesota Academy of Science.

(d) $632,000 $618,000 each year is for the Board of Teaching. Any balance in the
first year does not cancel but is available in the second year.

(e) $171,000 $167,000 each year is for the Board of School Administrators. Any
balance in the first year does not cancel but is available in the second year.

(f) $40,000 each year $10,000 is for an early hearing loss intervention coordinator
under Minnesota Statutes, section 125A.63, subdivision 5. This appropriation is for
fiscal year 2010 only.
If the department expends federal funds to employ a hearing
loss coordinator under Minnesota Statutes, section 125A.63, subdivision 5, then the
appropriation under this paragraph is reallocated for purposes of employing a world
languages coordinator.

(g) $50,000 each year is for the Duluth Children's Museum.

(h) None of the amounts appropriated under this subdivision may be used for
Minnesota's Washington, D.C., office.

(i) The expenditures of federal grants and aids as shown in the biennial budget
document and its supplements are approved and appropriated and shall be spent as
indicated. The commissioner must provide, to the K-12 Education Finance Division in
the house of representatives and the E-12 Budget Division in the senate, details about the
distribution of state incentive grants, education technology state grants, teacher incentive
funds, and statewide data system funds as outlined in the supplemental federal funds
submission dated March 25, 2009.

ARTICLE 4

E-12 EDUCATION FORECAST ADJUSTMENTS

Section 1.

Minnesota Statutes 2009 Supplement, section 123B.54, is amended to read:


123B.54 DEBT SERVICE APPROPRIATION.

(a) $9,109,000 in fiscal year 2009, $7,948,000 in fiscal year 2010, $9,275,000 in
fiscal year 2011, $9,574,000
$17,161,000 in fiscal year 2012, and $8,904,000 $19,175,000
in fiscal year 2013 and later are appropriated from the general fund to the commissioner of
education for payment of debt service equalization aid under section 123B.53.

(b) The appropriations in paragraph (a) must be reduced by the amount of any
money specifically appropriated for the same purpose in any year from any state fund.

EFFECTIVE DATE.

This section is effective July 1, 2010, and supersedes any
contrary provision in 2010 H.F. No. 3329, regardless of its date of final enactment.

Sec. 2.

Laws 2009, chapter 96, article 1, section 24, subdivision 4, is amended to read:


Subd. 4.

Abatement revenue.

For abatement aid under Minnesota Statutes, section
127A.49:

$
1,175,000
1,000,000
.....
2010
$
1,034,000
1,132,000
.....
2011

The 2010 appropriation includes $140,000 for 2009 and $1,035,000 $860,000 for
2010.

The 2011 appropriation includes $115,000 $317,000 for 2010 and $919,000
$815,000
for 2011.

Sec. 3.

Laws 2009, chapter 96, article 1, section 24, subdivision 5, is amended to read:


Subd. 5.

Consolidation transition.

For districts consolidating under Minnesota
Statutes, section 123A.485:

$
854,000 684,000
.....
2010
$
927,000 576,000
.....
2011

The 2010 appropriation includes $0 for 2009 and $854,000 $684,000 for 2010.

The 2011 appropriation includes $94,000 $252,000 for 2010 and $833,000 $324,000
for 2011.

Sec. 4.

Laws 2009, chapter 96, article 1, section 24, subdivision 6, is amended to read:


Subd. 6.

Nonpublic pupil education aid.

For nonpublic pupil education aid under
Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

$
17,250,000
12,861,000
.....
2010
$
17,889,000
16,157,000
.....
2011

The 2010 appropriation includes $1,647,000 $1,067,000 for 2009 and $15,603,000
$11,794,000
for 2010.

The 2011 appropriation includes $1,733,000 $4,362,000for 2010 and $16,156,000
$11,795,000
for 2011.

Sec. 5.

Laws 2009, chapter 96, article 1, section 24, subdivision 7, is amended to read:


Subd. 7.

Nonpublic pupil transportation.

For nonpublic pupil transportation aid
under Minnesota Statutes, section 123B.92, subdivision 9:

$
22,159,000
17,297,000
.....
2010
$
22,712,000
19,729,000
.....
2011

The 2010 appropriation includes $2,077,000 for 2009 and $20,082,000 $15,220,000
for 2010.

The 2011 appropriation includes $2,231,000 $5,629,000 for 2010 and $20,481,000
$14,100,000
for 2011.

Sec. 6.

Laws 2009, chapter 96, article 2, section 67, subdivision 2, is amended to read:


Subd. 2.

Charter school building lease aid.

For building lease aid under Minnesota
Statutes, section 124D.11, subdivision 4:

$
40,453,000
34,833,000
.....
2010
$
44,775,000
44,938,000
.....
2011

The 2010 appropriation includes $3,704,000 for 2009 and $36,749,000 $31,129,000
for 2010.

The 2011 appropriation includes $4,083,000 $11,513,000 for 2010 and $40,692,000
$33,425,000
for 2011.

Sec. 7.

Laws 2009, chapter 96, article 2, section 67, subdivision 3, is amended to read:


Subd. 3.

Charter school startup aid.

For charter school startup cost aid under
Minnesota Statutes, section 124D.11:

$
1,488,000
1,218,000
.....
2010
$
1,064,000
743,000
.....
2011

The 2010 appropriation includes $202,000 for 2009 and $1,286,000 $1,016,000
for 2010.

The 2011 appropriation includes $142,000 $375,000 for 2010 and $922,000
$368,000
for 2011.

Sec. 8.

Laws 2009, chapter 96, article 2, section 67, subdivision 4, is amended to read:


Subd. 4.

Integration aid.

For integration aid under Minnesota Statutes, section
124D.86, subdivision 5:

$
65,358,000
50,812,000
.....
2010
$
65,484,000
61,782,000
.....
2011

The 2010 appropriation includes $6,110,000 $5,832,000 for 2009 and $59,248,000
$44,980,000
for 2010.

The 2011 appropriation includes $6,583,000 $16,636,000 for 2010 and $58,901,000
$45,146,000
for 2011.

Sec. 9.

Laws 2009, chapter 96, article 2, section 67, subdivision 7, is amended to read:


Subd. 7.

Success for the future.

For American Indian success for the future grants
under Minnesota Statutes, section 124D.81:

$
2,137,000
1,774,000
.....
2010
$
2,137,000
2,072,000
.....
2011

The 2010 appropriation includes $213,000 for 2009 and $1,924,000 $1,561,000
for 2010.

The 2011 appropriation includes $213,000 $576,000 for 2010 and $1,924,000
$1,496,000
for 2011.

Sec. 10.

Laws 2009, chapter 96, article 2, section 67, subdivision 9, is amended to read:


Subd. 9.

Tribal contract schools.

For tribal contract school aid under Minnesota
Statutes, section 124D.83:

$
2,030,000
1,702,000
.....
2010
$
2,211,000
2,119,000
.....
2011

The 2010 appropriation includes $191,000 for 2009 and $1,839,000 $1,511,000
for 2010.

The 2011 appropriation includes $204,000 $558,000 for 2010 and $2,007,000
$1,561,000
for 2011.

Sec. 11.

Laws 2009, chapter 96, article 3, section 21, subdivision 2, is amended to read:


Subd. 2.

Special education; regular.

For special education aid under Minnesota
Statutes, section 125A.75:

$
734,071,000
609,003,000
.....
2010
$
781,497,000
749,248,000
.....
2011

The 2010 appropriation includes $71,947,000 for 2009 and $662,124,000
$537,056,000
for 2010.

The 2011 appropriation includes $73,569,000 $198,637,000 for 2010 and
$707,928,000 $550,611,000 for 2011.

Sec. 12.

Laws 2009, chapter 96, article 3, section 21, subdivision 4, is amended to read:


Subd. 4.

Travel for home-based services.

For aid for teacher travel for home-based
services under Minnesota Statutes, section 125A.75, subdivision 1:

$
258,000 224,000
.....
2010
$
282,000 282,000
.....
2011

The 2010 appropriation includes $24,000 for 2009 and $234,000 $200,000 for 2010.

The 2011 appropriation includes $26,000 $73,000 for 2010 and $256,000 $209,000
for 2011.

Sec. 13.

Laws 2009, chapter 96, article 3, section 21, subdivision 5, is amended to read:


Subd. 5.

Special education; excess costs.

For excess cost aid under Minnesota
Statutes, section 125A.79, subdivision 7:

$
110,871,000
96,926,000
.....
2010
$
110,877,000
108,410,000
.....
2011

The 2010 appropriation includes $37,046,000 for 2009 and $73,825,000 $59,880,000
for 2010.

The 2011 appropriation includes $37,022,000 $50,967,000 for 2010 and $73,855,000
$57,443,000
for 2011.

Sec. 14.

Laws 2009, chapter 96, article 4, section 12, subdivision 2, is amended to read:


Subd. 2.

Health and safety revenue.

For health and safety aid according to
Minnesota Statutes, section 123B.57, subdivision 5:

$
161,000 132,000
.....
2010
$
160,000 135,000
.....
2011

The 2010 appropriation includes $10,000 for 2009 and $151,000 $122,000 for 2010.

The 2011 appropriation includes $16,000 $44,000 for 2010 and $144,000 $91,000
for 2011.

Sec. 15.

Laws 2009, chapter 96, article 4, section 12, subdivision 3, is amended to read:


Subd. 3.

Debt service equalization.

For debt service aid according to Minnesota
Statutes, section 123B.53, subdivision 6:

$
7,948,000
6,608,000
.....
2010
$
9,275,000
8,204,000
.....
2011

The 2010 appropriation includes $851,000 for 2009 and $7,097,000 $5,757,000
for 2010.

The 2011 appropriation includes $788,000 $2,128,000 for 2010 and $8,487,000
$6,076,000
for 2011.

Sec. 16.

Laws 2009, chapter 96, article 4, section 12, subdivision 4, is amended to read:


Subd. 4.

Alternative facilities bonding aid.

For alternative facilities bonding aid,
according to Minnesota Statutes, section 123B.59, subdivision 1:

$
19,287,000
16,008,000
.....
2010
$
19,287,000
18,708,000
.....
2011

The 2010 appropriation includes $1,928,000 for 2009 and $17,359,000 $14,080,000
for 2010.

The 2011 appropriation includes $1,928,000 $5,207,000 for 2010 and $17,359,000
$13,501,000
for 2011.

Sec. 17.

Laws 2009, chapter 96, article 4, section 12, subdivision 6, is amended to read:


Subd. 6.

Deferred maintenance aid.

For deferred maintenance aid, according to
Minnesota Statutes, section 123B.591, subdivision 4:

$
2,302,000
1,918,000
.....
2010
$
2,073,000
2,146,000
.....
2011

The 2010 appropriation includes $260,000 for 2009 and $2,042,000 $1,658,000
for 2010.

The 2011 appropriation includes $226,000 $613,000 for 2010 and $1,847,000
$1,533,000
for 2011.

Sec. 18.

Laws 2009, chapter 96, article 5, section 13, subdivision 4, is amended to read:


Subd. 4.

Kindergarten milk.

For kindergarten milk aid under Minnesota Statutes,
section 124D.118:

$
1,098,000
1,104,000
.....
2010
$
1,120,000
1,126,000
.....
2011

Sec. 19.

Laws 2009, chapter 96, article 5, section 13, subdivision 6, is amended to read:


Subd. 6.

Basic system support.

For basic system support grants under Minnesota
Statutes, section 134.355:

$
13,570,000
11,264,000
.....
2010
$
13,570,000
13,162,000
.....
2011

The 2010 appropriation includes $1,357,000 for 2009 and $12,213,000 $9,907,000
for 2010.

The 2011 appropriation includes $1,357,000 $3,663,000 for 2010 and $12,213,000
$9,499,000
for 2011.

Sec. 20.

Laws 2009, chapter 96, article 5, section 13, subdivision 7, is amended to read:


Subd. 7.

Multicounty, multitype library systems.

For grants under Minnesota
Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

$
1,300,000
1,079,000
.....
2010
$
1,300,000
1,261,000
.....
2011

The 2010 appropriation includes $130,000 for 2009 and $1,170,000 $949,000 for
2010.

The 2011 appropriation includes $130,000 $351,000 for 2010 and $1,170,000
$910,000
for 2011.

Sec. 21.

Laws 2009, chapter 96, article 5, section 13, subdivision 9, is amended to read:


Subd. 9.

Regional library telecommunications aid.

For regional library
telecommunications aid under Minnesota Statutes, section 134.355:

$
2,300,000
1,909,000
.....
2010
$
2,300,000
2,231,000
.....
2011

The 2010 appropriation includes $230,000 for 2009 and $2,070,000 $1,679,000
for 2010.

The 2011 appropriation includes $230,000 $621,000 for 2010 and $2,070,000
$1,610,000
for 2011.

Sec. 22.

Laws 2009, chapter 96, article 6, section 11, subdivision 2, is amended to read:


Subd. 2.

School readiness.

For revenue for school readiness programs under
Minnesota Statutes, sections 124D.15 and 124D.16:

$
10,095,000
8,379,000
.....
2010
$
10,095,000
9,792,000
.....
2011

The 2010 appropriation includes $1,009,000 for 2009 and $9,086,000 $7,370,000
for 2010.

The 2011 appropriation includes $1,009,000 $2,725,000 for 2010 and $9,086,000
$7,067,000
for 2011.

Sec. 23.

Laws 2009, chapter 96, article 6, section 11, subdivision 3, is amended to read:


Subd. 3.

Early childhood family education aid.

For early childhood family
education aid under Minnesota Statutes, section 124D.135:

$
22,955,000
19,005,000
.....
2010
$
22,547,000
21,460,000
.....
2011

The 2010 appropriation includes $3,020,000 for 2009 and $19,935,000 $15,985,000
for 2010.

The 2011 appropriation includes $2,214,000 $5,911,000 for 2010 and $20,333,000
$15,549,000
for 2011.

Sec. 24.

Laws 2009, chapter 96, article 6, section 11, subdivision 4, is amended to read:


Subd. 4.

Health and developmental screening aid.

For health and developmental
screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

$
3,694,000
2,922,000
.....
2010
$
3,800,000
3,425,000
.....
2011

The 2010 appropriation includes $367,000 for 2009 and $3,327,000 $2,555,000
for 2010.

The 2011 appropriation includes $369,000 $945,000 for 2010 and $3,431,000
$2,480,000
for 2011.

Sec. 25.

Laws 2009, chapter 96, article 6, section 11, subdivision 8, is amended to read:


Subd. 8.

Community education aid.

For community education aid under
Minnesota Statutes, section 124D.20:

$
585,000 476,000
.....
2010
$
467,000 473,000
.....
2011

The 2010 appropriation includes $73,000 for 2009 and $512,000 $403,000 for 2010.

The 2011 appropriation included $56,000 $148,000 for 2010 and $411,000 $325,000
for 2011.

Sec. 26.

Laws 2009, chapter 96, article 6, section 11, subdivision 9, is amended to read:


Subd. 9.

Adults with disabilities program aid.

For adults with disabilities
programs under Minnesota Statutes, section 124D.56:

$
710,000 588,000
.....
2010
$
710,000 688,000
.....
2011

The 2010 appropriation includes $71,000 $69,000 for 2009 and $639,000 $519,000
for 2010.

The 2011 appropriation includes $71,000 $191,000 for 2010 and $639,000 $497,000
for 2011.

Sec. 27.

Laws 2009, chapter 96, article 6, section 11, subdivision 12, is amended to
read:


Subd. 12.

Adult basic education aid.

For adult basic education aid under
Minnesota Statutes, section 124D.531:

$
42,975,000
35,671,000
.....
2010
$
44,258,000
42,732,000
.....
2011

The 2010 appropriation includes $4,187,000 for 2009 and $38,788,000 $31,484,000
for 2010.

The 2011 appropriation includes $4,309,000 $11,644,000 for 2010 and $39,949,000
$31,088,000
for 2011.

ARTICLE 5

HIGHER EDUCATION

Section 1. SUMMARY OF APPROPRIATIONS.

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

2010
2011
Total
General
$
(77,000)
$
(100,077,000)
$
(100,154,000)

Sec. 2. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 95, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition
to or subtraction from the appropriation listed under them is available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.

APPROPRIATIONS
Available for the Year
Ending June 30
2010
2011

Sec. 3. MINNESOTA OFFICE OF HIGHER
EDUCATION

$
(77,000)
$
(77,000)

This reduction is from the appropriation for
agency administration.

Sec. 4. BOARD OF TRUSTEES OF THE
MINNESOTA STATE COLLEGES AND
UNIVERSITIES

$
-0-
$
(50,000,000)

$2,079,000 of the reduction in 2011 is from
the central offices and shared services unit
appropriation. None of these reductions may
be charged back or allocated to the campuses.

$47,921,000 of the reduction in 2011
is from the operations and maintenance
appropriation.

For fiscal years 2012 and 2013, the base for
operations and maintenance is $580,802,000
each year.

Sec. 5. BOARD OF REGENTS OF THE
UNIVERSITY OF MINNESOTA

Subdivision 1.

Total Appropriation

$
-0-
$
(50,000,000)

The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.

Operations and Maintenance

-0-
(44,606,000)

For fiscal years 2012 and 2013, the base for
operations and maintenance is $578,370,000
each year.

Subd. 3.

Special Appropriations

(a) Agriculture and Extension Service
-0-
(3,858,000)
(b) Health Sciences
-0-
(389,000)

$26,000 of the 2011 reduction is from the St.
Cloud family practice residency program.

(c) Institute of Technology
-0-
(102,000)
(d) System Special
-0-
(454,000)
(e) University of Minnesota and Mayo
Foundation Partnership
-0-
(591,000)

ARTICLE 6

ENVIRONMENT AND NATURAL RESOURCES

Section 1. SUMMARY OF APPROPRIATIONS.

The amounts shown in this section summarize changes to direct appropriations, by
fund, made in this article.

2010
2011
Total
General
$
(1,571,000)
$
(1,564,000)
$
(3,135,000)

Sec. 2. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 37, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition to
or subtraction from the appropriation listed under them are available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.

APPROPRIATIONS
Available for the Year
Ending June 30
2010
2011

Sec. 3. POLLUTION CONTROL AGENCY

Subdivision 1.

Total Appropriation

$
(110,000)
$
(99,000)

The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.

Water

(98,000)
(38,000)

The $98,000 reduction in fiscal year 2010
is from the agency's activities to develop
minimal impact design standards for urban
stormwater runoff.

Subd. 3.

Land

-0-
(30,000)

The $30,000 reduction in the second year is
from the environmental health tracking and
biomonitoring activities of the agency.

Subd. 4.

Environmental
Assistance and Cross Media

-0-
(16,000)

Subd. 5.

Administrative
Support

(12,000)
(15,000)

Sec. 4. NATURAL RESOURCES

Subdivision 1.

Total Appropriation

$
(1,375,000)
$
(1,379,000)

The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.

Lands and
Minerals

(30,000)
(30,000)

Subd. 3.

Water Resources
Management

(84,000)
(84,000)

Subd. 4.

Forest
Management

(188,000)
(188,000)

$53,000 of the reduction each year is from
activities supporting the Forest Resources
Council with implementation of the
Sustainable Forest Resources Act.

Subd. 5.

Parks and Trails
Management

(420,000)
(422,000)

Subd. 6.

Fish and Wildlife
Management

(265,000)
(265,000)

$265,000 of the reduction each year is from
activities for preserving, restoring, and
enhancing grassland/wetland complexes on
public or private land.

Subd. 7.

Ecological Services

(46,000)
(47,000)

Subd. 8.

Enforcement

(230,000)
(230,000)

Subd. 9.

Operations
Support

(112,000)
(113,000)

Sec. 5. METROPOLITAN COUNCIL

$
(86,000)
$
(86,000)

Sec. 6.

Laws 2010, chapter 215, article 3, section 3, subdivision 6, is amended to read:


Subd. 6.

Transfers In

(a) The amounts appropriated from the
agency indirect costs account in the special
revenue fund are reduced by $328,000 in
fiscal year 2010 and $462,000 in fiscal year
2011, and those amounts must be transferred
to the general fund by June 30, 2011. The
appropriation reductions are onetime.

(b) The commissioner of management and
budget shall transfer $8,000,000 $48,000,000
in fiscal year 2011 from the closed landfill
investment fund in Minnesota Statutes,
section 115B.421, to the general fund. The
commissioner shall transfer $4,000,000
$12,000,000
on July 1, 2013, and $4,000,000
on July 1,
in each of the years 2014, 2015,
2016, and 2017
from the general fund to the
closed landfill investment fund. For the July
1, 2014,
each transfer to the closed landfill
investment fund, the commissioner shall
determine the total amount of interest and
other earnings that would have accrued to
the fund if the transfers to the general fund
under this paragraph had not been made and
add this amount to the transfer. The amounts
necessary for these transfers are appropriated
from the general fund in the fiscal years
specified for the transfers.

ARTICLE 7

ENERGY

Section 1. SUMMARY OF APPROPRIATIONS.

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

2010
2011
Total
General
$
(247,000)
$
(247,000)
$
(494,000)

Sec. 2. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 37, article 2, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition
to or subtraction from the appropriation listed under them is available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.

APPROPRIATIONS
Available for the Year
Ending June 30
2010
2011

Sec. 3. DEPARTMENT OF COMMERCE

Subdivision 1.

Total Appropriation

$
(247,000)
$
(247,000)

The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.

Administrative Services

(97,000)
(97,000)

Subd. 3.

Market Assurance

(150,000)
(150,000)

ARTICLE 8

AGRICULTURE

Section 1. SUMMARY OF APPROPRIATIONS.

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

2010
2011
Total
General
$
(493,000)
$
(492,000)
$
(985,000)

Sec. 2. AGRICULTURAL APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 94, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition to
or subtraction from the appropriations listed under them are available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.

APPROPRIATIONS
Available for the Year
Ending June 30
2010
2011

Sec. 3. DEPARTMENT OF AGRICULTURE

Subdivision 1.

Total Appropriation

$
(493,000)
$
(492,000)

The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.

Protection Services

(228,000)
(228,000)

$13,000 in fiscal year 2010 and $13,000 in
fiscal year 2011 are reductions from plant
pest surveys.

Subd. 3.

Agricultural Marketing and
Development

(127,000)
(127,000)

$77,000 in fiscal year 2010 and $77,000 in
fiscal year 2011 are reductions for integrated
pest management activities.

Subd. 4.

Administration and Financial
Assistance

(138,000)
(137,000)

$69,000 in fiscal year 2010 and $69,000 in
fiscal year 2011 are reductions from the dairy
and profitability enhancement and dairy
business planning grant programs established
under Laws 1997, chapter 216, section 7,
subdivision 2, and Laws 2001, First Special
Session chapter 2, section 9, subdivision 2.

$1,000 in fiscal year 2010 is a reduction from
the appropriation for the administration of
the Feeding Minnesota Task Force.

ARTICLE 9

ECONOMIC DEVELOPMENT

Section 1. SUMMARY OF APPROPRIATIONS.

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

2010
2011
Total
General
$
(489,000)
$
(745,000)
$
(1,234,000)

Sec. 2. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to, or if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 78, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition
to or subtraction from the appropriation listed under them is available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.

APPROPRIATIONS
Available for the Year
Ending June 30
2010
2011

Sec. 3. EMPLOYMENT AND ECONOMIC
DEVELOPMENT

Subdivision 1.

Total Appropriation

$
(285,000)
$
(285,000)

The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.

Business and Community
Development

(87,000)
(87,000)

$25,000 in 2010 and $25,000 in 2011 are
from the appropriation for the Office of
Science and Technology.

Subd. 3.

Workforce Development

(115,000)
(115,000)

$15,000 in 2010 and $15,000 in 2011 are
from the appropriation for the Minnesota job
skills partnership program under Minnesota
Statutes, sections 116L.01 to 116L.17.

$11,000 in 2010 and $11,000 in 2011 are from
the appropriation for administrative expenses
to programs that provide employment
support services to persons with mental
illness under Minnesota Statutes, sections
268A.13 and 268A.14.

$89,000 in 2010 and $89,000 in 2011 are
from the appropriation for state services for
the blind activities.

Subd. 4.

State-Funded Administration

(83,000)
(83,000)

Sec. 4. HOUSING FINANCE AGENCY

$
-0-
$
(256,000)

This reduction is from the appropriation to
the Housing Finance Agency for the housing
rehabilitation program under Minnesota
Statutes, section 462A.05, subdivision 14,
for rental housing developments.

On or before June 30, 2010, the Housing
Finance Agency shall transfer $256,000
from the housing rehabilitation program in
the housing development fund to the general
fund.

Sec. 5. DEPARTMENT OF LABOR AND
INDUSTRY

$
(20,000)
$
(20,000)

This reduction is from the general
fund appropriation for labor
standards/apprenticeship.

Sec. 6. BUREAU OF MEDIATION
SERVICES

$
(16,000)
$
(16,000)

This reduction is from the general fund
appropriation for mediation services.

Sec. 7. MINNESOTA HISTORICAL
SOCIETY

Subdivision 1.

Total Appropriation

$
(168,000)
$
(168,000)

The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.

Education and Outreach

(96,000)
(96,000)

Subd. 3.

Preservation and Access

(72,000)
(72,000)

ARTICLE 10

TRANSPORTATION

Section 1. SUMMARY OF APPROPRIATIONS.

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

2010
2011
Total
General
$
(1,649,000)
$
(11,649,000)
$
(13,298,000)

Sec. 2. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 36, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition to
or subtraction from the appropriation listed under them are available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.

APPROPRIATIONS
Available for the Year
Ending June 30
2010
2011

Sec. 3. TRANSPORTATION

Subdivision 1.

Total Appropriation

$
(24,000)
$
(1,474,000)

The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.

Multimodal Systems

(a) Transit
(9,000)
(1,459,000)

This reduction is to the Transit Improvement
Administration appropriation.

The base appropriation from the general fund
for fiscal years 2012 and 2013 is $16,292,000
each year.

(b) Freight
(9,000)
(9,000)

This reduction is to the rail service plan
appropriation.

(c) Electronic Communication
(6,000)
(6,000)

This reduction is to the Roosevelt Tower
appropriation.

Sec. 4. METROPOLITAN COUNCIL

Subdivision 1.

Total Appropriation

$
(1,625,000)
$
(10,175,000)

The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.

Bus Transit

(1,506,000)
(10,056,000)

This reduction is to the appropriation for bus
system operations.

The base appropriation for fiscal years 2012
and 2013 is $59,796,000 each year.

Subd. 3.

Rail Operations

(119,000)
(119,000)

This reduction is to the appropriation for rail
systems.

The base appropriation for fiscal years 2012
and 2013 is $5,174,000 each year.

ARTICLE 11

PUBLIC SAFETY

Section 1. SUMMARY OF APPROPRIATIONS.

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

2010
2011
Total
General
$
(79,000)
$
(79,000)
$
(158,000)

Sec. 2.

APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 83, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition
to or subtraction from the appropriation listed under them is available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.

APPROPRIATIONS
Available for the Year
Ending June 30
2010
2011

Sec. 3.

HUMAN RIGHTS
$
(79,000)
$
(79,000)

ARTICLE 12

STATE GOVERNMENT

Section 1. SUMMARY OF APPROPRIATIONS.

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

2010
2011
Total
General
$
(1,694,000)
$
(1,820,000)
$
(3,514,000)

Sec. 2. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from, the appropriations in Laws 2009, chapter 101, article 1, to
the agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated for
each purpose. The figures "2010" and "2011" used in this article mean that the addition
to or subtraction from the appropriation listed under them is available for the fiscal year
ending June 30, 2010, or June 30, 2011, respectively. Supplemental appropriations and
reductions to appropriations for the fiscal year ending June 30, 2010, are effective the
day following final enactment.

APPROPRIATIONS
Available for the Year
Ending June 30
2010
2011

Sec. 3. GOVERNOR AND LIEUTENANT
GOVERNOR

$
(81,000)
$
(81,000)

$13,000 of the reduction in each of
fiscal years 2010 and 2011 are from the
appropriation for necessary expenses in the
normal performance of the governor's and
lieutenant governor's duties for which no
other reimbursement is provided.

Sec. 4. OFFICE OF ENTERPRISE
TECHNOLOGY

$
(130,000)
$
(130,000)

$96,000 of the reduction in each of
fiscal years 2010 and 2011 are from the
appropriation for information technology
security.

Sec. 5. ADMINISTRATION

$
(100,000)
$
(200,000)

These reductions are from the Government
and Citizen Services Program.

$162,000 of the balance in the central stores
fund is transferred to the general fund on
or before June 30, 2010. This is a onetime
transfer.

The base appropriation from the general fund
for the Government and Citizen Services
Program for fiscal years 2012 and 2013 is
$17,116,000 each year.

Sec. 6. MANAGEMENT AND BUDGET

$
(459,000)
$
(459,000)
Health Care Access Fund Loan

(a) By June 30, 2011, the commissioner of
management and budget shall transfer up to
$40,000,000 from the balance of the health
care access fund to the general fund.

(b) By June 30, 2012, the commissioner of
management and budget shall transfer the
amount transferred in paragraph (a) from the
general fund to the health care access fund.

(c) The amounts necessary to complete
these transfers are appropriated to the
commissioner from each fund.

Sec. 7. REVENUE

$
(924,000)
$
(950,000)

These reductions are from the tax system
management program.

ARTICLE 13

AIDS, CREDITS, REFUNDS

Section 1.

Minnesota Statutes 2008, section 273.1384, subdivision 6, as added by Laws
2010, chapter 215, article 13, section 2, is amended to read:


Subd. 6.

Credit reduction.

In 2011 and each year thereafter, the market value
credit reimbursement amount for each taxing jurisdiction determined under this section
is reduced by the dollar amount of the reduction in market value credit reimbursements
for that taxing jurisdiction in 2010 due to unallotment the reductions announced prior
to February 28, 2010, under section 16A.152
under section 477A.0132. No taxing
jurisdiction's market value credit reimbursements are reduced to less than zero under
this subdivision. The commissioner of revenue shall pay the annual market value credit
reimbursement amounts, after reduction under this subdivision, to the affected taxing
jurisdictions as provided in this section.

EFFECTIVE DATE.

This section is effective for taxes payable in 2011 and
thereafter.

Sec. 2.

[477A.0132] 2009 AND 2010 AID REDUCTIONS.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms
have the meanings given them in this subdivision.

(b) The "2009 revenue base" for a statutory or home rule charter city is the sum of
the city's certified property tax levy for taxes payable in 2009, plus the amount of local
government aid under section 477A.013, subdivision 9, that the city was certified to
receive in 2009, plus the amount of taconite aids under sections 298.28 and 298.282 that
the city was certified to receive in 2009, including any amounts required to be placed in a
special fund for distribution in a later year.

(c) The "2009 revenue base" for a county is the sum of the county's certified property
tax levy for taxes payable in 2009, plus the amount of county program aid under section
477A.0124 that the county was certified to receive in 2009, plus the amount of taconite
aids under sections 298.28 and 298.282 that the county was certified to receive in 2009,
including any amounts required to be placed in a special fund for distribution in a later year.

(d) The "2009 revenue base" for a town is the sum of the town's certified property
tax levy for taxes payable in 2009, plus the amount of aid under section 477A.013 that
the town was certified to receive in 2009, plus the amount of taconite aids under sections
298.28 and 298.282 that the town was certified to receive in 2009, including any amounts
required to be placed in a special fund for distribution in a later year.

(e) "Population" means the population of the county, city, or town for 2007 based on
information available to the commissioner of revenue in July 2009.

(f) "Adjusted net tax capacity" means the amount of net tax capacity for the county,
city, or town, computed using equalized market values according to section 477A.011,
subdivision 20, for aid payable in 2009.

(g) "Adjusted net tax capacity per capita" means the jurisdiction's adjusted net tax
capacity divided by its population.

Subd. 2.

2009 aid reductions.

(a) The commissioner of revenue must compute a
2009 aid reduction amount for each county.

The aid reduction amount is zero for a county with a population of less than 5,000,
and is zero for a county containing the Shooting Star Casino property that was removed
from the tax rolls in 2009.

For all other counties, the aid reduction amount is equal to 1.188968672 percent of
the county's 2009 revenue base.

The reduction amount is limited to the sum of the amount of county program aid
under section 477A.0124 that the county was certified to receive in 2009, plus the amount
of market value credit reimbursements under section 273.1384 payable to the county in
2009 before the reductions in this section.

The reduction amount is applied first to reduce the amount payable to the county
in 2009 as county program aid under section 477A.013 and then, if necessary, to reduce
the amount payable to the county in 2009 as market value credit reimbursements under
section 273.1384.

No county's aid or reimbursements are reduced to less than zero under this section.

(b) The commissioner of revenue must compute a 2009 aid reduction amount for
each city.

The aid reduction amount is zero for any city with a population of less than 1,000 that
has an adjusted net tax capacity per capita amount less than the statewide average adjusted
net tax capacity amount per capita for all cities. The aid reduction amount is also zero for
a city located outside the seven-county metropolitan area, with a 2006 population greater
than 3,500, a pre-1940 housing percentage greater than 29 percent, a commercial-industrial
percentage less than nine percent, and a population decline percentage of zero based on the
data used to certify the 2009 local government aid distribution under section 477A.013.

For all other cities, the aid reduction amount is equal to 3.3127634 percent of the
city's 2009 revenue base.

The reduction amount is limited to the sum of the amount of local government aid
under section 477A.013, subdivision 9, that the city was certified to receive in 2009, plus
the amount of market value credit reimbursements under section 273.1384 payable to the
city in 2009 before the reductions in this section.

The reduction amount for a city is further limited to $22 per capita.

The reduction amount is applied first to reduce the amount payable to the city in
2009 as local government aid under section 477A.013 and then, if necessary, to reduce
the amount payable to the city in 2009 as market value credit reimbursements under
section 273.1384.

No city's aid or reimbursements are reduced to less than zero under this section.

(c) The commissioner of revenue must compute a 2009 aid reduction amount for
each town.

The aid reduction amount is zero for any town with a population of less than 1,000
that has an adjusted net tax capacity per capita amount less than the statewide average
adjusted net tax capacity amount per capita for all towns.

For all other towns, the aid reduction amount is equal to 1.735103 percent of the
town's 2009 revenue base.

The reduction amount is limited to $5 per capita.

The reduction amount is applied to reduce the amount payable to the town in 2009
as market value credit reimbursements under section 273.1384.

No town's reimbursements are reduced to less than zero under this section.

Subd. 3.

2010 aid reductions.

(a) The commissioner of revenue must compute a
2010 aid reduction amount for each county.

The aid reduction amount is zero for a county with a population of less than 5,000,
and is zero for a county containing the Shooting Star Casino property that was removed
from the tax rolls in 2009.

For all other counties, the aid reduction amount is equal to 2.41396687 percent of
the county's 2009 revenue base.

The reduction amount is limited to the sum of the amount of county program aid
under section 477A.0124 that the county was certified to receive in 2009, plus the amount
of market value credit reimbursements under section 273.1384 payable to the county in
2009 before the reductions in this section.

The reduction amount is applied first to reduce the amount payable to the county
in 2010 as county program aid under section 477A.013 and then, if necessary, to reduce
the amount payable to the county in 2010 as market value credit reimbursements under
section 273.1384.

No county's aid or reimbursements are reduced to less than zero under this section.

(b) The commissioner of revenue must compute a 2010 aid reduction amount for
each city.

The aid reduction amount is zero for any city with a population of less than 1,000
that has an adjusted net tax capacity per capita amount less than the statewide average
adjusted net tax capacity amount per capita for all cities.

For all other cities, the aid reduction amount is equal to 7.643803025 percent of the
city's 2009 revenue base.

The reduction amount is limited to the sum of the amount of local government aid
under section 477A.013, subdivision 9, that the city was certified to receive in 2010, plus
the amount of market value credit reimbursements under section 273.1384 payable to the
city in 2010 before the reductions in this section.

The reduction amount for a city is further limited to $55 per capita.

The reduction amount is applied first to reduce the amount payable to the city in
2010 as local government aid under section 477A.013 and then, if necessary, to reduce
the amount payable to the city in 2010 as market value credit reimbursements under
section 273.1384.

No city's aid or reimbursements are reduced to less than zero under this section.

(c) The commissioner of revenue must compute a 2010 aid reduction amount for
each town.

The aid reduction amount is zero for any town with a population of less than 1,000
that has an adjusted net tax capacity per capita amount less than the statewide average
adjusted net tax capacity amount per capita for all towns.

For all other towns, the aid reduction amount is equal to 3.660798 percent of the
town's 2009 revenue base.

The reduction amount is limited to $10 per capita.

The reduction amount is applied to reduce the amount payable to the town in 2010
as market value credit reimbursements under section 273.1384.

No town's reimbursements are reduced to less than zero under this section.

EFFECTIVE DATE.

This section is effective the day following final enactment
and is retroactive for aids and credit reimbursements payable in 2009.

Sec. 3.

Laws 2010, chapter 215, article 13, section 6, is amended to read:


Sec. 6.

477A.0133 ADDITIONAL 2010 AID AND CREDIT REDUCTIONS.

Subdivision 1.

Definitions.

(a) For the purposes of this section, the following terms
have the meanings given them in this subdivision.

(b) The "2010 revenue base" for a county is the sum of the county's certified property
tax levy for taxes payable in 2010, plus the amount of county program aid under section
477A.0124 that the county was certified to receive in 2010, plus the amount of taconite
aids under sections 298.28 and 298.282 that the county was certified to receive in 2010
including any amounts required to be placed in a special fund for distribution in a later year.

(c) The "2010 revenue base" for a statutory or home rule charter city is the sum of
the city's certified property tax levy for taxes payable in 2010, plus the amount of local
government aid under section 477A.013, subdivision 9, that the city was certified to
receive in 2010, plus the amount of taconite aids under sections 298.28 and 298.282 that
the city was certified to receive in 2010 including any amounts required to be placed in a
special fund for distribution in a later year.

Subd. 2.

2010 reductions; counties and cities.

The commissioner of revenue
must compute additional 2010 aid and credit reimbursement reduction amounts for each
county and city under this section, after implementing any reduction of county program
aid under section 477A.0124, local government aid under section 477A.013, or market
value credit reimbursements under section 273.1384, to reflect the reduction of allotments
under section 16A.152
reductions under section 477A.0132.

The additional reduction amounts under this section are limited to the sum of the
amount of county program aid under section 477A.0124, local government aid under
section 477A.013, and market value credit reimbursements under section 273.1384
payable to the county or city in 2010 before the reductions in this section, but after the
reductions for unallotments under section 477A.0132.

The reduction amount under this section is applied first to reduce the amount
payable to the county or city in 2010 as market value credit reimbursements under section
273.1384, and then if necessary, to reduce the amount payable as either county program
aid under section 477A.0124 in the case of a county, or local government aid under section
477A.013 in the case of a city.

No aid or reimbursement amount is reduced to less than zero under this section.

The additional 2010 aid reduction amount for a county is equal to 1.82767 percent
of the county's 2010 revenue base. The additional 2010 aid reduction amount for a city
is equal to the lesser of (1) 3.4287 percent of the city's 2010 revenue base or (2) $28
multiplied by the city's 2008 population.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 4. REFUNDS AND CREDITS.

Subdivision 1.

Political contribution credit.

Notwithstanding the provisions of
Minnesota Statutes, section 290.06, subdivision 23, or any other law to the contrary, the
political contribution refund does not apply to contributions made after June 30, 2009,
and before July 1, 2011.

Subd. 2.

Property tax refund.

For property tax refunds based on rent paid during
calendar year 2009 only, but also applying to refunds based on property taxes payable in
2010 that include gross rent paid in 2009, the following rules apply:

(1) "rent constituting property taxes" must be calculated by substituting "15 percent"
for "19 percent" under Minnesota Statutes, section 290A.03, subdivision 11; and

(2) "property taxes payable" must be calculated under Minnesota Statutes, section
290A.03, subdivision 13, by substituting "15 percent" for "19 percent" in determining the
portion of gross rent paid that is included in property taxes payable.

Subd. 3.

Sustainable forest incentive program.

The maximum sustainable forest
incentive program payments under Minnesota Statutes, section 290C.07, per each Social
Security number or state or federal business tax identification number must not exceed
$100,000. The provisions of this subdivision apply only to payments made during fiscal
year 2011.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 5. LEVY VALIDATION.

Any special levy under Minnesota Statutes, section 275.70, subdivision 5, clause
(22), approved by the commissioner of revenue for taxes payable in 2010, is validated
notwithstanding a later judicial decision that may affect the validity of unallotments that
were announced in 2009. A local government may not levy under Minnesota Statutes,
section 275.70, subdivision 5, clause (22), for taxes payable in 2011 for any retroactive
reduction in aid and credit reimbursements for aids and credits payable in 2008 or 2009.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 6. PAYMENT OF REFUNDS.

(a) In paying refunds during fiscal year 2011 of overpayments of corporate
franchise tax and of sales tax, including but not limited to capital equipment refunds,
the commissioner of revenue shall delay paying a sufficient number of these refunds
until fiscal year 2012 so that $152,000,000 less in refunds is paid in fiscal year 2011
than otherwise would have been paid. This amount is in addition to any amount that the
commissioner delays pursuant to administrative actions undertaken in connection with the
unallotment announced in June 2009. Refunds delayed by the commissioner under this
section are deemed to be due on July 1, 2011, for budget purposes, if the law otherwise
would provide an earlier date. Any refunds paid after June 30, 2011, and before the close
of fiscal year 2011 are deemed to be paid in fiscal year 2012 for budget purposes.

(b) In carrying out the requirement of paragraph (a), the commissioner shall, to the
extent possible, minimize delaying the payment of refunds that would result in payment of
additional interest by the state. The commissioner may select refunds for delayed payment
under this section or exempt refunds from this section in the manner that the commissioner
determines, in the commissioner's sole discretion, has the least adverse effect on tax
administration and taxpayer compliance.

ARTICLE 14

SPECIAL REVENUE FUND

Section 1.

Minnesota Statutes 2008, section 3.9741, subdivision 2, is amended to read:


Subd. 2.

Postsecondary Education Board.

The legislative auditor may enter into
an interagency agreement with the Board of Trustees of the Minnesota State Colleges and
Universities to conduct financial audits, in addition to audits conducted under section
3.972, subdivision 2. All payments received for audits requested by the board shall be
added to the appropriation for deposited in the special revenue fund and appropriated to
the legislative auditor to pay audit expenses.

Sec. 2.

Minnesota Statutes 2008, section 8.15, subdivision 3, is amended to read:


Subd. 3.

Agreements.

(a) To facilitate the delivery of legal services, the attorney
general may:

(1) enter into agreements with executive branch agencies, political subdivisions, or
quasi-state agencies to provide legal services for the benefit of the citizens of Minnesota;
and

(2) in addition to funds otherwise appropriated by the legislature, accept and spend
funds received under any agreement authorized in clause (1) for the purpose set forth in
clause (1), subject to a report of receipts to the chairs of the senate Finance Committee and
the house of representatives Ways and Means Committee by October 15 each year.

(b) When entering into an agreement for legal services, the attorney general must
notify the committees responsible for funding the Office of the Attorney General. When
the attorney general enters into an agreement with a state agency, the attorney general
must also notify the committees responsible for funding that agency.

Funds received under this subdivision must be deposited in the general an account in
the special revenue
fund and are appropriated to the attorney general for the purposes set
forth in this subdivision.

Sec. 3.

Minnesota Statutes 2008, section 13.03, subdivision 10, is amended to read:


Subd. 10.

Costs for providing copies of data.

Money may be collected by a
responsible authority in a state agency for the actual cost to the agency of providing
copies or electronic transmittal of government data is appropriated to the agency and
added to the appropriations from which the costs were paid
. When money collected for
purposes of this section is of a magnitude sufficient to warrant a separate account in the
state treasury, that money must be deposited in a fund other than the general fund and is
appropriated to the agency.

Sec. 4.

Minnesota Statutes 2008, section 16C.23, subdivision 6, is amended to read:


Subd. 6.

State surplus property.

The commissioner may do any of the following to
dispose of state surplus property:

(1) transfer it to or between state agencies;

(2) transfer it to a governmental unit or nonprofit organization in Minnesota; or

(3) sell it and charge a fee to cover expenses incurred by the commissioner in the
disposal of the surplus property.

The proceeds of the sale less the fee must be deposited in an account in a fund other
than the general fund and
are appropriated to the agency for whose account the sale was
made, to be used and expended by that agency to purchase similar state property.

Sec. 5.

Minnesota Statutes 2008, section 103B.101, subdivision 9, is amended to read:


Subd. 9.

Powers and duties.

In addition to the powers and duties prescribed
elsewhere, the board shall:

(1) coordinate the water and soil resources planning activities of counties, soil and
water conservation districts, watershed districts, watershed management organizations,
and any other local units of government through its various authorities for approval of
local plans, administration of state grants, and by other means as may be appropriate;

(2) facilitate communication and coordination among state agencies in cooperation
with the Environmental Quality Board, and between state and local units of government,
in order to make the expertise and resources of state agencies involved in water and soil
resources management available to the local units of government to the greatest extent
possible;

(3) coordinate state and local interests with respect to the study in southwestern
Minnesota under United States Code, title 16, section 1009;

(4) develop information and education programs designed to increase awareness
of local water and soil resources problems and awareness of opportunities for local
government involvement in preventing or solving them;

(5) provide a forum for the discussion of local issues and opportunities relating
to water and soil resources management;

(6) adopt an annual budget and work program that integrate the various functions
and responsibilities assigned to it by law; and

(7) report to the governor and the legislature by October 15 of each even-numbered
year with an assessment of board programs and recommendations for any program
changes and board membership changes necessary to improve state and local efforts
in water and soil resources management.

The board may accept grants, gifts, donations, or contributions in money, services,
materials, or otherwise from the United States, a state agency, or other source to achieve
an authorized purpose. The board may enter into a contract or agreement necessary or
appropriate to accomplish the transfer. The board may receive and expend money to
acquire conservation easements, as defined in chapter 84C, on behalf of the state and
federal government consistent with the Camp Ripley's Army Compatible Use Buffer
Project.

Any money received is hereby deposited in an account in a fund other than the
general fund and
appropriated and dedicated for the purpose for which it is granted.

Sec. 6.

Minnesota Statutes 2008, section 103I.681, subdivision 11, is amended to read:


Subd. 11.

Permit fee schedule.

(a) The commissioner of natural resources shall
adopt a permit fee schedule under chapter 14. The schedule may provide minimum fees
for various classes of permits, and additional fees, which may be imposed subsequent
to the application, based on the cost of receiving, processing, analyzing, and issuing
the permit, and the actual inspecting and monitoring of the activities authorized by the
permit, including costs of consulting services.

(b) A fee may not be imposed on a state or federal governmental agency applying
for a permit.

(c) The fee schedule may provide for the refund of a fee, in whole or in part, under
circumstances prescribed by the commissioner of natural resources. Fees received must
be deposited in the state treasury and credited to the general an account in the natural
resources
fund. Permit fees received are appropriated annually from the general natural
resources
fund to the commissioner of natural resources for the costs of inspecting and
monitoring the activities authorized by the permit, including costs of consulting services.

Sec. 7.

Minnesota Statutes 2008, section 116J.551, subdivision 1, is amended to read:


Subdivision 1.

Grant account.

A contaminated site cleanup and development grant
account is created in the general special revenue fund. Money in the account may be used,
as appropriated by law, to make grants as provided in section 116J.554 and to pay for the
commissioner's costs in reviewing applications and making grants. Notwithstanding
section 16A.28, money appropriated to the account for this program from any source
is available until spent.

Sec. 8.

Minnesota Statutes 2008, section 190.32, is amended to read:


190.32 FEDERAL REIMBURSEMENT RECEIPTS.

The Department of Military Affairs may deposit federal reimbursement receipts into
the general fund an account in the special revenue fund, maintenance of military training
facilities. These receipts are for services, supplies, and materials initially purchased by the
Camp Ripley maintenance account.

Sec. 9.

Minnesota Statutes 2008, section 257.69, subdivision 2, is amended to read:


Subd. 2.

Guardian; legal fees.

(a) The court may order expert witness and guardian
ad litem fees and other costs of the trial and pretrial proceedings, including appropriate
tests, to be paid by the parties in proportions and at times determined by the court. The
court shall require a party to pay part of the fees of court-appointed counsel according
to the party's ability to pay, but if counsel has been appointed the appropriate agency
shall pay the party's proportion of all other fees and costs. The agency responsible for
child support enforcement shall pay the fees and costs for blood or genetic tests in a
proceeding in which it is a party, is the real party in interest, or is acting on behalf of the
child. However, at the close of a proceeding in which paternity has been established under
sections 257.51 to 257.74, the court shall order the adjudicated father to reimburse the
public agency, if the court finds he has sufficient resources to pay the costs of the blood or
genetic tests. When a party bringing an action is represented by the county attorney, no
filing fee shall be paid to the court administrator.

(b) In each fiscal year, the commissioner of management and budget shall deposit
guardian ad litem reimbursements in the general special revenue fund and credit them to a
separate account with the trial courts. The balance of this account is appropriated to the
trial courts and does not cancel but is available until expended. Expenditures by the state
court administrator's office from this account must be based on the amount of the guardian
ad litem reimbursements received by the state from the courts in each judicial district.

Sec. 10.

Minnesota Statutes 2008, section 260C.331, subdivision 6, is amended to read:


Subd. 6.

Guardian ad litem fees.

(a) In proceedings in which the court appoints a
guardian ad litem pursuant to section 260C.163, subdivision 5, clause (a), the court may
inquire into the ability of the parents to pay for the guardian ad litem's services and,
after giving the parents a reasonable opportunity to be heard, may order the parents to
pay guardian fees.

(b) In each fiscal year, the commissioner of management and budget shall deposit
guardian ad litem reimbursements in the general special revenue fund and credit them to a
separate account with the trial courts. The balance of this account is appropriated to the
trial courts and does not cancel but is available until expended. Expenditures by the state
court administrator's office from this account must be based on the amount of the guardian
ad litem reimbursements received by the state from the courts in each judicial district.

Sec. 11.

Minnesota Statutes 2009 Supplement, section 270.97, is amended to read:


270.97 DEPOSIT OF REVENUES.

The commissioner shall deposit all revenues derived from the tax, interest, and
penalties received from the county in the contaminated site cleanup and development
account in the general special revenue fund and is annually appropriated to the
commissioner of the Department of Employment and Economic Development, for the
purposes of section 116J.551.

Sec. 12.

Minnesota Statutes 2008, section 299C.48, is amended to read:


299C.48 CONNECTION BY AUTHORIZED AGENCY; FEE,
APPROPRIATION.

(a) An agency authorized under section 299C.46, subdivision 3, may connect with
and participate in the criminal justice data communications network upon approval
of the commissioner of public safety; provided, that the agency shall first agree to pay
installation charges as may be necessary for connection and monthly operational charges
as may be established by the commissioner of public safety. Before participation by a
criminal justice agency may be approved, the agency must have executed an agreement
with the commissioner providing for security of network facilities and restrictions on
access to data supplied to and received through the network.

(b) In addition to any fee otherwise authorized, the commissioner of public safety
shall impose a fee for providing secure dial-up or Internet access for criminal justice
agencies and noncriminal justice agencies. The following monthly fees apply:

(1) criminal justice agency accessing via Internet, $15;

(2) criminal justice agency accessing via dial-up, $35;

(3) noncriminal justice agency accessing via Internet, $35; and

(4) noncriminal justice agency accessing via dial-up, $35.

(c) The installation and monthly operational charges collected by the commissioner
of public safety under paragraphs (a) and (b) must be deposited in an account in the special
revenue fund and
are annually appropriated to the commissioner to administer sections
299C.46 to 299C.50.

Sec. 13.

Minnesota Statutes 2008, section 299E.02, is amended to read:


299E.02 CONTRACT SERVICES; APPROPRIATION.

Fees charged for contracted security services provided by the Capitol Complex
Security Division of the Department of Public Safety must be deposited in an account in
the special revenue fund and
are annually appropriated to the commissioner of public
safety to administer and provide these services.

Sec. 14.

Minnesota Statutes 2008, section 446A.086, subdivision 2, as amended by
Laws 2010, chapter 290, section 14, is amended to read:


Subd. 2.

Application.

(a) This section provides a state guarantee of the payment of
principal and interest on debt obligations if:

(1) the obligations are issued for new projects and are not issued for the purposes of
refunding previous obligations;

(2) application to the Public Facilities Authority is made before issuance; and

(3) the obligations are covered by an agreement meeting the requirements of
subdivision 3.

(b) Applications to be covered by the provisions of this section must be made in a
form and contain the information prescribed by the authority. Applications are subject to
either a fee of $500 for each bond issue requested by a county or governmental unit or the
applicable fees under section 446A.087.

(c) Application fees paid under this section must be deposited in a separate credit
enhancement bond guarantee account in the general special revenue fund. Money in the
credit enhancement bond guarantee account is appropriated to the authority for purposes
of administering this section.

(d) Neither the authority nor the commissioner is required to promulgate
administrative rules under this section and the procedures and requirements established by
the authority or commissioner under this section are not subject to chapter 14.

Sec. 15.

Minnesota Statutes 2008, section 469.177, subdivision 11, is amended to read:


Subd. 11.

Deduction for enforcement costs; appropriation.

(a) The county
treasurer shall deduct an amount equal to 0.25 percent of any increment distributed to an
authority or municipality. The county treasurer shall pay the amount deducted to the
commissioner of management and budget for deposit in the state general an account in
the special revenue
fund.

(b) The amounts deducted and paid under paragraph (a) are appropriated to the state
auditor for the cost of (1) the financial reporting of tax increment financing information
and (2) the cost of examining and auditing of authorities' use of tax increment financing
as provided under section 469.1771, subdivision 1. Notwithstanding section 16A.28 or
any other law to the contrary, this appropriation does not cancel and remains available
until spent.

(c) For taxes payable in 2002 and thereafter, the commissioner of revenue shall
increase the percent in paragraph (a) to a percent equal to the product of the percent in
paragraph (a) and the amount that the statewide tax increment levy for taxes payable in
2002 would have been without the class rate changes in this act and the elimination of
the general education levy in this act divided by the statewide tax increment levy for
taxes payable in 2002.

Sec. 16.

Minnesota Statutes 2008, section 518.165, subdivision 3, is amended to read:


Subd. 3.

Fees.

(a) A guardian ad litem appointed under either subdivision 1 or 2
may be appointed either as a volunteer or on a fee basis. If a guardian ad litem is appointed
on a fee basis, the court shall enter an order for costs, fees, and disbursements in favor
of the child's guardian ad litem. The order may be made against either or both parties,
except that any part of the costs, fees, or disbursements which the court finds the parties
are incapable of paying shall be borne by the state courts. The costs of court-appointed
counsel to the guardian ad litem shall be paid by the county in which the proceeding is
being held if a party is incapable of paying for them. Until the recommendations of the
task force created in Laws 1999, chapter 216, article 7, section 42, are implemented, the
costs of court-appointed counsel to a guardian ad litem in the Eighth Judicial District shall
be paid by the state courts if a party is incapable of paying for them. In no event may the
court order that costs, fees, or disbursements be paid by a party receiving public assistance
or legal assistance or by a party whose annual income falls below the poverty line as
established under United States Code, title 42, section 9902(2).

(b) In each fiscal year, the commissioner of management and budget shall deposit
guardian ad litem reimbursements in the general special revenue fund and credit them to a
separate account with the trial courts. The balance of this account is appropriated to the
trial courts and does not cancel but is available until expended. Expenditures by the state
court administrator's office from this account must be based on the amount of the guardian
ad litem reimbursements received by the state from the courts in each judicial district.

Sec. 17.

Minnesota Statutes 2008, section 609.3241, is amended to read:


609.3241 PENALTY ASSESSMENT AUTHORIZED.

When a court sentences an adult convicted of violating section 609.322 or 609.324,
while acting other than as a prostitute, the court shall impose an assessment of not less
than $250 and not more than $500 for a violation of section 609.324, subdivision 2, or a
misdemeanor violation of section 609.324, subdivision 3; otherwise the court shall impose
an assessment of not less than $500 and not more than $1,000. The mandatory minimum
portion of the assessment is to be used for the purposes described in section 626.558,
subdivision 2a
, and is in addition to the surcharge required by section 357.021, subdivision
6
. Any portion of the assessment imposed in excess of the mandatory minimum amount
shall be forwarded to the general deposited in an account in the special revenue fund and
is appropriated annually to the commissioner of public safety. The commissioner, with the
assistance of the General Crime Victims Advisory Council, shall use money received under
this section for grants to agencies that provide assistance to individuals who have stopped
or wish to stop engaging in prostitution. Grant money may be used to provide these
individuals with medical care, child care, temporary housing, and educational expenses.

Sec. 18.

Minnesota Statutes 2008, section 611.20, subdivision 3, is amended to read:


Subd. 3.

Reimbursement.

In each fiscal year, the commissioner of management
and budget shall deposit the payments in the general special revenue fund and credit them
to a separate account with the Board of Public Defense. The amount credited to this
account is appropriated to the Board of Public Defense.

The balance of this account does not cancel but is available until expended.
Expenditures by the board from this account for each judicial district public defense office
must be based on the amount of the payments received by the state from the courts in
each judicial district. A district public defender's office that receives money under this
subdivision shall use the money to supplement office overhead payments to part-time
attorneys providing public defense services in the district. By January 15 of each year,
the Board of Public Defense shall report to the chairs and ranking minority members of
the senate and house of representatives divisions having jurisdiction over criminal justice
funding on the amount appropriated under this subdivision, the number of cases handled
by each district public defender's office, the number of cases in which reimbursements
were ordered, the average amount of reimbursement ordered, and the average amount of
money received by part-time attorneys under this subdivision.

Sec. 19.

Laws 1994, chapter 531, section 1, is amended to read:


Section 1. SALE OF WILDLIFE LANDS.

Notwithstanding Minnesota Statutes, sections 84.027, subdivision 10; 92.45; 94.09
to 94.165; 97A.135; 103F.535, or any other law, the commissioner of administration may
sell lands located in the Gordy Yaeger wildlife management area in Olmsted county. The
consideration for the lands described in sections 2 and 3 shall be $950 per acre. The
conveyances shall be by guitclaim quitclaim deed in a form approved by the attorney
general and shall reserve to the state all minerals and mineral rights. The proceeds received
from the sales are to be deposited in an account in the general natural resources fund and
are appropriated to the commissioner of natural resources for acquisition of replacement
wildlife management area lands. These sales are pursuant to the recommendation of the
Gordy Yaeger wildlife management area advisory committee.

ARTICLE 15

HEALTH AND HUMAN SERVICES

Section 1. SUMMARY OF APPROPRIATIONS.

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

2010
2011
Total
General
$
(74,704,000)
$
(83,154,000)
$
(157,858,000)

Sec. 2. APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are added to or, if shown
in parentheses, subtracted from the appropriations in Laws 2009, chapter 79, article 13,
as amended by Laws 2009, chapter 173, article 2, to the agencies and for the purposes
specified in this article. The appropriations are from the general fund and are available
for the fiscal years indicated for each purpose. The figures "2010" and "2011" used in
this article mean that the addition to or subtraction from the appropriation listed under
them is available for the fiscal year ending June 30, 2010, or June 30, 2011, respectively.
Supplemental appropriations and reductions to appropriations for the fiscal year ending
June 30, 2010, are effective the day following final enactment unless a different effective
date is explicit. All reductions in this article are onetime, unless otherwise stated.

APPROPRIATIONS
Available for the Year
Ending June 30
2010
2011

Sec. 3. DEPARTMENT OF HUMAN
SERVICES

Subdivision 1.

Total Appropriation

$
(74,177,000)
$
(82,629,000)

The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.

Agency Management; Financial
Operations

(3,289,000)
(3,282,000)

Subd. 3.

Children and Economic Assistance
Grants

(a) Child Support Enforcement Grants
(3,400,000)
(1,249,000)
(b) Children's Services Grants
(600,000)
-0-

American Indian Child Welfare Projects.
Notwithstanding Laws 2009, chapter 79,
article 2, section 35, $600,000 of the fiscal
year 2009 funds extended in fiscal year 2010
cancel to the general fund.

(c) Children and Community Services Grants
(16,900,000)
(1,500,000)
(d) General Assistance Grants
(5,267,000)
-0-
(e) Minnesota Supplemental Aid Grants
(733,000)
-0-
(f) Group Residential Housing Grants
(467,000)
(706,000)

Subd. 4.

Basic Health Care Grants

(a) Medical Assistance Basic Health Care
Grants - Families and Children
(5,599,000)
(29,979,000)
(b) Medical Assistance Basic Health Care
Grants - Elderly and Disabled
(2,331,000)
(22,298,000)

Hospital Fee-for-Service Payment Delay.
Payments from the Medicaid Management
Information System that would otherwise
have been made for inpatient hospital
services for Minnesota health care program
enrollees must be delayed as follows: for
fiscal year 2011, June payments must be
included in the first payments in fiscal
year 2012. The provisions of Minnesota
Statutes, section 16A.124, do not apply
to these delayed payments. This payment
delay includes, and is not in addition to, the
payment delay for inpatient hospital services
in Laws 2009, chapter 79, article 13, section
3, subdivision 6, paragraph (c).

Nonhospital Fee-for-Service Payment
Delay.
Payments from the Medicaid
Management Information System that would
otherwise have been made for nonhospital
acute care services for Minnesota health
care program enrollees must be delayed as
follows: for fiscal year 2011, June payments
must be included in the first payments in
fiscal year 2012. This payment delay must
not include nursing facilities, intermediate
care facilities for persons with developmental
disabilities, home and community-based
services, prepaid health plans, personal care
provider organizations, and home health
agencies. The provisions of Minnesota
Statutes, section 16A.124, do not apply
to these delayed payments. This payment
delay includes, and is not in addition to, the
payment delay for nonhospital acute care
services in Laws 2009, chapter 79, article 13,
section 3, subdivision 6, paragraph (c).

(c) General Assistance Medical Care Grants
(15,879,000)
-0-

Subd. 5.

Health Care Management;
Administration

(180,000)
(360,000)

Incentive Program and Outreach Grants.
The general fund appropriation for the
incentive program under Laws 2008, chapter
358, article 5, section 3, subdivision 4,
paragraph (b), is canceled. This paragraph is
effective retroactively from January 1, 2010.

Subd. 6.

Continuing Care Grants

(a) Aging and Adult Services Grants
(3,600,000)
(3,600,000)

Community Service/Service Development
Grants Reduction.
Effective retroactively
from July 1, 2009, funding for grants made
under Minnesota Statutes, sections 256.9754
and 256B.0917, subdivision 13, is reduced
by $5,807,000 for each year of the biennium.
Grants made during the biennium under
Minnesota Statutes, section 256.9754, shall
not be used for new construction or building
renovation.

Aging Grants Delay. Aging grants must be
reduced by $917,000 in fiscal year 2011 and
increased by $917,000 in fiscal year 2012.
These adjustments are onetime and must not
be applied to the base. This provision expires
June 30, 2012.

(b) Medical Assistance Long-Term Care
Facilities Grants
(3,827,000)
(2,745,000)

ICF/MR Variable Rates Suspension.
Effective retroactively from July 1, 2009,
to June 30, 2010, no new variable rates
shall be authorized for intermediate care
facilities for persons with developmental
disabilities under Minnesota Statutes, section
256B.5013, subdivision 1.

ICF/MR Occupancy Rate Adjustment
Suspension.
Effective retroactively from
July 1, 2009, to June 30, 2011, approval
of new applications for occupancy rate
adjustments for unoccupied short-term
beds under Minnesota Statutes, section
256B.5013, subdivision 7, is suspended.

(c) Medical Assistance Long-Term Care
Waivers and Home Care Grants
(2,318,000)
(5,807,000)

Developmental Disability Waiver Acuity
Factor.
Effective retroactively from January
1, 2010, the January 1, 2010, one percent
growth factor in the developmental disability
waiver allocations under Minnesota Statutes,
section 256B.092, subdivisions 4 and 5,
that is attributable to changes in acuity, is
suspended to June 30, 2011.

(d) Adult Mental Health Grants
(5,000,000)
-0-
(e) Chemical Dependency Entitlement Grants
(3,622,000)
(3,622,000)
(f) Chemical Dependency Nonentitlement
Grants
(393,000)
(393,000)
(g) Other Continuing Care Grants
-0-
(2,500,000)

Other Continuing Care Grants Delay.
Other continuing care grants must be reduced
by $1,414,000 in fiscal year 2011 and
increased by $1,414,000 in fiscal year 2012.
These adjustments are onetime and must not
be applied to the base. This provision expires
June 30, 2012.

Subd. 7.

Continuing Care Management

(350,000)
-0-

County Maintenance of Effort. The general
fund appropriation for the State-County
Results Accountability and Service Delivery
Reform under Minnesota Statutes, chapter
402A, is canceled. This paragraph is
effective retroactively from July 1, 2009.

Subd. 8.

State-Operated Services; Adult
Mental Health Services

(422,000)
(4,588,000)

Sec. 4. DEPARTMENT OF HEALTH

Subdivision. 1.

Total Appropriation

$
(527,000)
$
(525,000)

The appropriation reductions for each
purpose are shown in the following
subdivisions.

Subd. 2.

Community and Family Health
Promotion

(53,000)
(355,000)

Subd. 3.

Policy Quality and Compliance

(118,000)
(74,000)

Office of Unlicensed Health Care Practice.
Of the general fund reduction $74,000
in fiscal year 2011 is from the Office of
Unlicensed Complementary and Alternative
Health Care Practice.

Subd. 4.

Health Protection

(225,000)
(74,000)

Subd. 5.

Administrative Support Services

(131,000)
(22,000)

Sec. 5.

Laws 2009, chapter 79, article 13, section 3, subdivision 8, as amended by
Laws 2009, chapter 173, article 2, section 1, subdivision 8, is amended to read:


Subd. 8.

Continuing Care Grants

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

(a) Aging and Adult Services Grants
13,499,000
15,805,000

Base Adjustment. The general fund base is
increased by $5,751,000 in fiscal year 2012
and $6,705,000 in fiscal year 2013.

Information and Assistance
Reimbursement.
Federal administrative
reimbursement obtained from information
and assistance services provided by the
Senior LinkAge or Disability Linkage lines
to people who are identified as eligible for
medical assistance shall be appropriated to
the commissioner for this activity.

Community Service Development Grant
Reduction.
Funding for community service
development grants must be reduced by
$260,000 for fiscal year 2010; $284,000 in
fiscal year 2011; $43,000 in fiscal year 2012;
and $43,000 in fiscal year 2013. Base level
funding shall be restored in fiscal year 2014.

Community Service Development Grant
Community Initiative.
Funding for
community service development grants shall
be used to offset the cost of aging support
grants. Base level funding shall be restored
in fiscal year 2014.

Senior Nutrition Use of Federal Funds.
For fiscal year 2010, general fund grants
for home-delivered meals and congregate
dining shall be reduced by $500,000. The
commissioner must replace these general
fund reductions with equal amounts from
federal funding for senior nutrition from the
American Recovery and Reinvestment Act
of 2009.

(b) Alternative Care Grants
50,234,000
48,576,000

Base Adjustment. The general fund base is
decreased by $3,598,000 in fiscal year 2012
and $3,470,000 in fiscal year 2013.

Alternative Care Transfer. Any money
allocated to the alternative care program that
is not spent for the purposes indicated does
not cancel but must be transferred to the
medical assistance account.

(c) Medical Assistance Grants; Long-Term
Care Facilities.
367,444,000
419,749,000
(d) Medical Assistance Long-Term Care
Waivers and Home Care Grants
853,567,000
1,039,517,000

Manage Growth in TBI and CADI
Waivers.
During the fiscal years beginning
on July 1, 2009, and July 1, 2010, the
commissioner shall allocate money for home
and community-based waiver programs
under Minnesota Statutes, section 256B.49,
to ensure a reduction in state spending that is
equivalent to limiting the caseload growth of
the TBI waiver to 12.5 allocations per month
each year of the biennium and the CADI
waiver to 95 allocations per month each year
of the biennium. Limits do not apply: (1)
when there is an approved plan for nursing
facility bed closures for individuals under
age 65 who require relocation due to the
bed closure; (2) to fiscal year 2009 waiver
allocations delayed due to unallotment; or (3)
to transfers authorized by the commissioner
from the personal care assistance program
of individuals having a home care rating
of "CS," "MT," or "HL." Priorities for the
allocation of funds must be for individuals
anticipated to be discharged from institutional
settings or who are at imminent risk of a
placement in an institutional setting.

Manage Growth in DD Waiver. The
commissioner shall manage the growth in
the DD waiver by limiting the allocations
included in the February 2009 forecast to 15
additional diversion allocations each month
for the calendar years that begin on January
1, 2010, and January 1, 2011. Additional
allocations must be made available for
transfers authorized by the commissioner
from the personal care program of individuals
having a home care rating of "CS," "MT,"
or "HL."

Adjustment to Lead Agency Waiver
Allocations.
Prior to the availability of the
alternative license defined in Minnesota
Statutes, section 245A.11, subdivision 8,
the commissioner shall reduce lead agency
waiver allocations for the purposes of
implementing a moratorium on corporate
foster care.

Alternatives to Personal Care Assistance
Services.
Base level funding of $3,237,000
in fiscal year 2012 and $4,856,000 in
fiscal year 2013 is to implement alternative
services to personal care assistance services
for persons with mental health and other
behavioral challenges who can benefit
from other services that more appropriately
meet their needs and assist them in living
independently in the community. These
services may include, but not be limited to, a
1915(i) state plan option.

(e) Mental Health Grants
Appropriations by Fund
General
77,739,000
77,739,000
Health Care Access
750,000
750,000
Lottery Prize
1,508,000
1,508,000

Funding Usage. Up to 75 percent of a fiscal
year's appropriation for adult mental health
grants may be used to fund allocations in that
portion of the fiscal year ending December
31.

(f) Deaf and Hard-of-Hearing Grants
1,930,000
1,917,000
(g) Chemical Dependency Entitlement Grants
111,303,000
122,822,000

Payments for Substance Abuse Treatment.
For services provided during fiscal years
2010 and 2011, county-negotiated rates and
provider claims to the consolidated chemical
dependency fund must not exceed rates
charged for these services on January 1,
2009; and rates for fiscal years 2010 and
2011 must not exceed 160 percent of the
average rate on January 1, 2009, for each
group of vendors with similar attributes
.
For services provided in fiscal years 2012
and 2013, statewide average rates under
the new rate methodology to be developed
under Minnesota Statutes, section 254B.12,
must not exceed the average rates charged
for these services on January 1, 2009, plus a
state share increase of $3,787,000 for fiscal
year 2012 and $5,023,000 for fiscal year
2013. Notwithstanding any provision to the
contrary in this article, this provision expires
on June 30, 2013.

Chemical Dependency Special Revenue
Account.
For fiscal year 2010, $750,000
must be transferred from the consolidated
chemical dependency treatment fund
administrative account and deposited into the
general fund.

County CD Share of MA Costs for
ARRA Compliance.
Notwithstanding the
provisions of Minnesota Statutes, chapter
254B, for chemical dependency services
provided during the period October 1, 2008,
to December 31, 2010, and reimbursed by
medical assistance at the enhanced federal
matching rate provided under the American
Recovery and Reinvestment Act of 2009, the
county share is 30 percent of the nonfederal
share. This provision is effective the day
following final enactment.

(h) Chemical Dependency Nonentitlement
Grants
1,729,000
1,729,000
(i) Other Continuing Care Grants
19,201,000
17,528,000

Base Adjustment. The general fund base is
increased by $2,639,000 in fiscal year 2012
and increased by $3,854,000 in fiscal year
2013.

Technology Grants. $650,000 in fiscal
year 2010 and $1,000,000 in fiscal year
2011 are for technology grants, case
consultation, evaluation, and consumer
information grants related to developing and
supporting alternatives to shift-staff foster
care residential service models.

Other Continuing Care Grants; HIV
Grants.
Money appropriated for the HIV
drug and insurance grant program in fiscal
year 2010 may be used in either year of the
biennium.

Quality Assurance Commission. Effective
July 1, 2009, state funding for the quality
assurance commission under Minnesota
Statutes, section 256B.0951, is canceled.

Sec. 6.

Laws 2009, chapter 79, article 13, section 4, subdivision 4, as amended by
Laws 2009, chapter 173, article 2, section 2, subdivision 4, is amended to read:


Subd. 4.

Health Protection

Appropriations by Fund
General
9,871,000
9,780,000
State Government
Special Revenue
30,209,000
30,209,000

Base Adjustment. The general fund base is
reduced by $50,000 in each of fiscal years
2012 and 2013.

Health Protection Appropriations. (a)
$163,000 each year is for the lead abatement
grant program.

(b) $100,000 each year is for emergency
preparedness and response activities.

(c) $50,000 each year is for tuberculosis
prevention and control. This is a onetime
appropriation.

(d) $55,000 in fiscal year 2010 is for
pentachlorophenol.

(e) $20,000 in fiscal year 2010 is for a PFC
Citizens Advisory Group.

American Recovery and Reinvestment
Act Funds.
Federal funds received
by the commissioner for immunization
operations from the American Recovery
and Reinvestment Act of 2009, Public Law
111-5, are appropriated to the commissioner
for the purposes of the grant.

Sec. 7.

Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 11,
is amended to read:


Subd. 11.

Personal care assistant; requirements.

(a) A personal care assistant
must meet the following requirements:

(1) be at least 18 years of age with the exception of persons who are 16 or 17 years
of age with these additional requirements:

(i) supervision by a qualified professional every 60 days; and

(ii) employment by only one personal care assistance provider agency responsible
for compliance with current labor laws;

(2) be employed by a personal care assistance provider agency;

(3) enroll with the department as a personal care assistant after clearing a background
study. Before a personal care assistant provides services, the personal care assistance
provider agency must initiate a background study on the personal care assistant under
chapter 245C, and the personal care assistance provider agency must have received a
notice from the commissioner that the personal care assistant is:

(i) not disqualified under section 245C.14; or

(ii) is disqualified, but the personal care assistant has received a set aside of the
disqualification under section 245C.22;

(4) be able to effectively communicate with the recipient and personal care
assistance provider agency;

(5) be able to provide covered personal care assistance services according to the
recipient's personal care assistance care plan, respond appropriately to recipient needs,
and report changes in the recipient's condition to the supervising qualified professional
or physician;

(6) not be a consumer of personal care assistance services;

(7) maintain daily written records including, but not limited to, time sheets under
subdivision 12;

(8) effective January 1, 2010, complete standardized training as determined by the
commissioner before completing enrollment. Personal care assistant training must include
successful completion of the following training components: basic first aid, vulnerable
adult, child maltreatment, OSHA universal precautions, basic roles and responsibilities of
personal care assistants including information about assistance with lifting and transfers
for recipients, emergency preparedness, orientation to positive behavioral practices, fraud
issues, and completion of time sheets. Upon completion of the training components,
the personal care assistant must demonstrate the competency to provide assistance to
recipients;

(9) complete training and orientation on the needs of the recipient within the first
seven days after the services begin; and

(10) be limited to providing and being paid for up to 310 hours per month, except
that this limit shall be 275 hours per month for the period July 1, 2009, through June 30,
2011,
of personal care assistance services regardless of the number of recipients being
served or the number of personal care assistance provider agencies enrolled with.

(b) A legal guardian may be a personal care assistant if the guardian is not being paid
for the guardian services and meets the criteria for personal care assistants in paragraph (a).

(c) Effective January 1, 2010, persons who do not qualify as a personal care assistant
include parents and stepparents of minors, spouses, paid legal guardians, family foster
care providers, except as otherwise allowed in section 256B.0625, subdivision 19a, or
staff of a residential setting.

EFFECTIVE DATE.

This section is effective July 1, 2009.

Sec. 8.

Minnesota Statutes 2009 Supplement, section 256B.441, subdivision 55,
is amended to read:


Subd. 55.

Phase-in of rebased operating payment rates.

(a) For the rate years
beginning October 1, 2008, to October 1, 2015, the operating payment rate calculated
under this section shall be phased in by blending the operating rate with the operating
payment rate determined under section 256B.434. For purposes of this subdivision, the
rate to be used that is determined under section 256B.434 shall not include the portion of
the operating payment rate related to performance-based incentive payments under section
256B.434, subdivision 4, paragraph (d). For the rate year beginning October 1, 2008, the
operating payment rate for each facility shall be 13 percent of the operating payment rate
from this section, and 87 percent of the operating payment rate from section 256B.434.
For the rate year beginning October 1, 2009, the operating payment rate for each facility
shall be 14 percent of the operating payment rate from this section, and 86 percent of the
operating payment rate from section 256B.434.
For rate years beginning October 1, 2009;
October 1, 2010; October 1, 2011; and October 1, 2012, no rate adjustments shall be
implemented under this section, but shall be determined under section 256B.434. For the
rate year beginning October 1, 2013, the operating payment rate for each facility shall be
65 percent of the operating payment rate from this section, and 35 percent of the operating
payment rate from section 256B.434. For the rate year beginning October 1, 2014, the
operating payment rate for each facility shall be 82 percent of the operating payment rate
from this section, and 18 percent of the operating payment rate from section 256B.434. For
the rate year beginning October 1, 2015, the operating payment rate for each facility shall
be the operating payment rate determined under this section. The blending of operating
payment rates under this section shall be performed separately for each RUG's class.

(b) For the rate year beginning October 1, 2008, the commissioner shall apply limits
to the operating payment rate increases under paragraph (a) by creating a minimum
percentage increase and a maximum percentage increase.

(1) Each nursing facility that receives a blended October 1, 2008, operating payment
rate increase under paragraph (a) of less than one percent, when compared to its operating
payment rate on September 30, 2008, computed using rates with RUG's weight of 1.00,
shall receive a rate adjustment of one percent.

(2) The commissioner shall determine a maximum percentage increase that will
result in savings equal to the cost of allowing the minimum increase in clause (1). Nursing
facilities with a blended October 1, 2008, operating payment rate increase under paragraph
(a) greater than the maximum percentage increase determined by the commissioner, when
compared to its operating payment rate on September 30, 2008, computed using rates with
a RUG's weight of 1.00, shall receive the maximum percentage increase.

(3) Nursing facilities with a blended October 1, 2008, operating payment rate
increase under paragraph (a) greater than one percent and less than the maximum
percentage increase determined by the commissioner, when compared to its operating
payment rate on September 30, 2008, computed using rates with a RUG's weight of 1.00,
shall receive the blended October 1, 2008, operating payment rate increase determined
under paragraph (a).

(4) The October 1, 2009, through October 1, 2015, operating payment rate for
facilities receiving the maximum percentage increase determined in clause (2) shall be
the amount determined under paragraph (a) less the difference between the amount
determined under paragraph (a) for October 1, 2008, and the amount allowed under clause
(2). This rate restriction does not apply to rate increases provided in any other section.

(c) A portion of the funds received under this subdivision that are in excess of
operating payment rates that a facility would have received under section 256B.434, as
determined in accordance with clauses (1) to (3), shall be subject to the requirements in
section 256B.434, subdivision 19, paragraphs (b) to (h).

(1) Determine the amount of additional funding available to a facility, which shall be
equal to total medical assistance resident days from the most recent reporting year times
the difference between the blended rate determined in paragraph (a) for the rate year being
computed and the blended rate for the prior year.

(2) Determine the portion of all operating costs, for the most recent reporting year,
that are compensation related. If this value exceeds 75 percent, use 75 percent.

(3) Subtract the amount determined in clause (2) from 75 percent.

(4) The portion of the fund received under this subdivision that shall be subject to
the requirements in section 256B.434, subdivision 19, paragraphs (b) to (h), shall equal
the amount determined in clause (1) times the amount determined in clause (3).

EFFECTIVE DATE.

This section is effective retroactively from October 1, 2009.

Sec. 9.

Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 5a, is
amended to read:


Subd. 5a.

Managed care contracts.

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

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

(c) Effective for services rendered on or after January 1, 2003, the commissioner
shall withhold five percent of managed care plan payments under this section and
county-based purchasing plan's payment rate under section 256B.692 for the prepaid
medical assistance and general assistance medical care programs pending completion of
performance targets. Each performance target must be quantifiable, objective, measurable,
and reasonably attainable, except in the case of a performance target based on a federal
or state law or rule. Criteria for assessment of each performance target must be outlined
in writing prior to the contract effective date. The managed care plan must demonstrate,
to the commissioner's satisfaction, that the data submitted regarding attainment of
the performance target is accurate. The commissioner shall periodically change the
administrative measures used as performance targets in order to improve plan performance
across a broader range of administrative services. The performance targets must include
measurement of plan efforts to contain spending on health care services and administrative
activities. The commissioner may adopt plan-specific performance targets that take into
account factors affecting only one plan, including characteristics of the plan's enrollee
population. The withheld funds must be returned no sooner than July of the following
year if performance targets in the contract are achieved. The commissioner may exclude
special demonstration projects under subdivision 23.

(d) Effective for services rendered on or after January 1, 2009, through December 31,
2009, the commissioner shall withhold three percent of managed care plan payments under
this section and county-based purchasing plan payments under section 256B.692 for the
prepaid medical assistance and general assistance medical care programs. The withheld
funds must be returned no sooner than July 1 and no later than July 31 of the following
year. The commissioner may exclude special demonstration projects under subdivision 23.

The return of the withhold under this paragraph is not subject to the requirements of
paragraph (c).

(e) Effective for services provided on or after January 1, 2010, the commissioner
shall require that managed care plans use the assessment and authorization processes,
forms, timelines, standards, documentation, and data reporting requirements, protocols,
billing processes, and policies consistent with medical assistance fee-for-service or the
Department of Human Services contract requirements consistent with medical assistance
fee-for-service or the Department of Human Services contract requirements for all
personal care assistance services under section 256B.0659.

(f) Effective for services rendered on or after January 1, 2010, through December
31, 2010, the commissioner shall withhold 3.5 4.5 percent of managed care plan payments
under this section and county-based purchasing plan payments under section 256B.692
for the prepaid medical assistance program. The withheld funds must be returned no
sooner than July 1 and no later than July 31 of the following year. The commissioner may
exclude special demonstration projects under subdivision 23.

(g) Effective for services rendered on or after January 1, 2011, through December 31,
2011, the commissioner shall withhold four 4.5 percent of managed care plan payments
under this section and county-based purchasing plan payments under section 256B.692
for the prepaid medical assistance program. The withheld funds must be returned no
sooner than July 1 and no later than July 31 of the following year. The commissioner may
exclude special demonstration projects under subdivision 23.

(h) Effective for services rendered on or after January 1, 2012, through December
31, 2012, the commissioner shall withhold 4.5 percent of managed care plan payments
under this section and county-based purchasing plan payments under section 256B.692
for the prepaid medical assistance program. The withheld funds must be returned no
sooner than July 1 and no later than July 31 of the following year. The commissioner may
exclude special demonstration projects under subdivision 23.

(i) Effective for services rendered on or after January 1, 2013, through December 31,
2013, the commissioner shall withhold 4.5 percent of managed care plan payments under
this section and county-based purchasing plan payments under section 256B.692 for the
prepaid medical assistance program. The withheld funds must be returned no sooner than
July 1 and no later than July 31 of the following year. The commissioner may exclude
special demonstration projects under subdivision 23.

(j) Effective for services rendered on or after January 1, 2014, the commissioner
shall withhold three percent of managed care plan payments under this section and
county-based purchasing plan payments under section 256B.692 for the prepaid medical
assistance and prepaid general assistance medical care programs. The withheld funds must
be returned no sooner than July 1 and no later than July 31 of the following year. The
commissioner may exclude special demonstration projects under subdivision 23.

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

(l) Contracts between the commissioner and a prepaid health plan are exempt from
the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph
(a), and 7.

EFFECTIVE DATE.

The additional withhold percentage in paragraph (f) is
effective retroactively from January 1, 2010.

Sec. 10.

Minnesota Statutes 2009 Supplement, section 256B.76, subdivision 1, is
amended to read:


Subdivision 1.

Physician reimbursement.

(a) Effective for services rendered on
or after October 1, 1992, the commissioner shall make payments for physician services
as follows:

(1) payment for level one Centers for Medicare and Medicaid Services' common
procedural coding system codes titled "office and other outpatient services," "preventive
medicine new and established patient," "delivery, antepartum, and postpartum care,"
"critical care," cesarean delivery and pharmacologic management provided to psychiatric
patients, and level three codes for enhanced services for prenatal high risk, shall be paid
at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June
30, 1992. If the rate on any procedure code within these categories is different than the
rate that would have been paid under the methodology in section 256B.74, subdivision 2,
then the larger rate shall be paid;

(2) payments for all other services shall be paid at the lower of (i) submitted charges,
or (ii) 15.4 percent above the rate in effect on June 30, 1992; and

(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th
percentile of 1989, less the percent in aggregate necessary to equal the above increases
except that payment rates for home health agency services shall be the rates in effect
on September 30, 1992.

(b) Effective for services rendered on or after January 1, 2000, payment rates for
physician and professional services shall be increased by three percent over the rates
in effect on December 31, 1999, except for home health agency and family planning
agency services. The increases in this paragraph shall be implemented January 1, 2000,
for managed care.

(c) Effective for services rendered on or after July 1, 2009, payment rates for
physician and professional services shall be reduced by five percent, except that for the
period July 1, 2009, through June 30, 2010, payments rates shall be reduced by 6.5 percent
for the medical assistance and general assistance medical care programs,
over the rates in
effect on June 30, 2009. This reduction does not apply to office or other outpatient visits,
preventive medicine visits and family planning visits billed by physicians, advanced
practice nurses, or physician assistants in a family planning agency or in one of the
following primary care practices: general practice, general internal medicine, general
pediatrics, general geriatrics, and family medicine. This reduction does not apply to
federally qualified health centers, rural health centers, and Indian health services. Effective
October 1, 2009, payments made to managed care plans and county-based purchasing
plans under sections 256B.69, 256B.692, and 256L.12 shall reflect the payment reduction
described in this paragraph.

EFFECTIVE DATE.

The additional rate reductions in this section are effective
retroactively from July 1, 2009.

Sec. 11.

Minnesota Statutes 2008, section 256B.76, subdivision 4, is amended to read:


Subd. 4.

Critical access dental providers.

(a) Effective for dental services rendered
on or after January 1, 2002, the commissioner shall increase reimbursements to dentists
and dental clinics deemed by the commissioner to be critical access dental providers.
For dental services rendered on or after July 1, 2007, the commissioner shall increase
reimbursement by 30 percent above the reimbursement rate that would otherwise be paid to
the critical access dental provider. The commissioner shall pay the health plan companies
in amounts sufficient to reflect increased reimbursements to critical access dental providers
as approved by the commissioner. In determining which dentists and dental clinics shall
be deemed critical access dental providers, the commissioner shall review:

(1) the utilization rate in the service area in which the dentist or dental clinic operates
for dental services to patients covered by medical assistance, general assistance medical
care, or MinnesotaCare as their primary source of coverage;

(2) the level of services provided by the dentist or dental clinic to patients covered
by medical assistance, general assistance medical care, or MinnesotaCare as their primary
source of coverage; and

(3) whether the level of services provided by the dentist or dental clinic is critical to
maintaining adequate levels of patient access within the service area.

In the absence of a critical access dental provider in a service area, the commissioner may
designate a dentist or dental clinic as a critical access dental provider if the dentist or
dental clinic is willing to provide care to patients covered by medical assistance, general
assistance medical care, or MinnesotaCare at a level which significantly increases access
to dental care in the service area.

(b) Notwithstanding paragraph (a), critical access payments must not be made for
dental services provided from April 1, 2010, through June 30, 2010.

EFFECTIVE DATE.

This section is effective retroactively from April 1, 2010.

Sec. 12.

Minnesota Statutes 2009 Supplement, section 256B.766, is amended to read:


256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.

(a) Effective for services provided on or after July 1, 2009, total payments for basic
care services, shall be reduced by three percent, except that for the period July 1, 2009,
through June 30, 2011, total payments shall be reduced by 4.5 percent for the medical
assistance and general assistance medical care programs
, prior to third-party liability
and spenddown calculation. Payments made to managed care plans and county-based
purchasing plans shall be reduced for services provided on or after October 1, 2009,
to reflect this reduction.

(b) This section does not apply to physician and professional services, inpatient
hospital services, family planning services, mental health services, dental services,
prescription drugs, medical transportation, federally qualified health centers, rural health
centers, Indian health services, and Medicare cost-sharing.

EFFECTIVE DATE.

The additional rate reductions in this section are effective
retroactively from July 1, 2009.

Sec. 13. REDUCTION OF GROUP RESIDENTIAL HOUSING
SUPPLEMENTAL SERVICE RATE.

Effective retroactively from November 1, 2009, through June 30, 2011, the
commissioner of human services shall decrease the group residential housing (GRH)
supplementary service rate under Minnesota Statutes, section 256I.05, subdivision 1a, by
five percent for services rendered on or after that date, except that reimbursement rates
for a GRH facility reimbursed as a nursing facility shall not be reduced. The reduction
in this paragraph is in addition to the reduction under Laws 2009, chapter 79, article
8, section 79, paragraph (b), clause (11).

EFFECTIVE DATE.

This section is effective retroactively from November 1, 2009.

Sec. 14. ARTICLE EFFECTIVE DATE.

This article is effective the day following final enactment.

ARTICLE 16

HEALTH CARE

Section 1.

Minnesota Statutes 2008, section 256.01, is amended by adding a
subdivision to read:


Subd. 30.

Review and evaluation of ongoing studies.

The commissioner
shall review all ongoing studies, reports, and program evaluations completed by the
Department of Human Services for state fiscal years 2006 through 2010. For each item,
the commissioner shall report the legislature's appropriation for that work, if any, and the
actual reported cost of the completed work by the Department of Human Services. The
commissioner shall make recommendations to the legislature about which studies, reports,
and program evaluations required by law on an ongoing basis are duplicative, unnecessary,
or obsolete. The commissioner shall repeat this review every five fiscal years.

Sec. 2.

Minnesota Statutes 2009 Supplement, section 256.969, subdivision 2b, is
amended to read:


Subd. 2b.

Operating payment rates.

In determining operating payment rates for
admissions occurring on or after the rate year beginning January 1, 1991, and every two
years after, or more frequently as determined by the commissioner, the commissioner shall
obtain operating data from an updated base year and establish operating payment rates
per admission for each hospital based on the cost-finding methods and allowable costs of
the Medicare program in effect during the base year. Rates under the general assistance
medical care, medical assistance, and MinnesotaCare programs shall not be rebased to
more current data on January 1, 1997, January 1, 2005, for the first 24 months of the
rebased period beginning January 1, 2009. For the first three 24 months of the rebased
period beginning January 1, 2011, rates shall not be rebased at 74.25 percent of the full
value of the rebasing percentage change. From April 1, 2011, to March 31, 2012, rates
shall be rebased at 39.2 percent of the full value of the rebasing percentage change
, except
that a Minnesota long-term hospital shall be rebased effective January 1, 2011, based on
its most recent Medicare cost report ending on or before September 1, 2008, with the
provisions under subdivisions 9 and 23, based on the rates in effect on December 31, 2010.
For subsequent rate setting periods in which the base years are updated, a Minnesota
long-term hospital's base year shall remain within the same period as other hospitals
.
Effective April 1, 2012 January 1, 2013, rates shall be rebased at full value. The base year
operating payment rate per admission is standardized by the case mix index and adjusted
by the hospital cost index, relative values, and disproportionate population adjustment.
The cost and charge data used to establish operating rates shall only reflect inpatient
services covered by medical assistance and shall not include property cost information
and costs recognized in outlier payments.

EFFECTIVE DATE.

This section is effective July 1, 2010.

Sec. 3.

Minnesota Statutes 2009 Supplement, section 256.969, subdivision 3a, is
amended to read:


Subd. 3a.

Payments.

(a) Acute care hospital billings under the medical
assistance program must not be submitted until the recipient is discharged. However,
the commissioner shall establish monthly interim payments for inpatient hospitals that
have individual patient lengths of stay over 30 days regardless of diagnostic category.
Except as provided in section 256.9693, medical assistance reimbursement for treatment
of mental illness shall be reimbursed based on diagnostic classifications. Individual
hospital payments established under this section and sections 256.9685, 256.9686, and
256.9695, in addition to third party and recipient liability, for discharges occurring during
the rate year shall not exceed, in aggregate, the charges for the medical assistance covered
inpatient services paid for the same period of time to the hospital. This payment limitation
shall be calculated separately for medical assistance and general assistance medical
care services. The limitation on general assistance medical care shall be effective for
admissions occurring on or after July 1, 1991. Services that have rates established under
subdivision 11 or 12, must be limited separately from other services. After consulting with
the affected hospitals, the commissioner may consider related hospitals one entity and
may merge the payment rates while maintaining separate provider numbers. The operating
and property base rates per admission or per day shall be derived from the best Medicare
and claims data available when rates are established. The commissioner shall determine
the best Medicare and claims data, taking into consideration variables of recency of the
data, audit disposition, settlement status, and the ability to set rates in a timely manner.
The commissioner shall notify hospitals of payment rates by December 1 of the year
preceding the rate year. The rate setting data must reflect the admissions data used to
establish relative values. Base year changes from 1981 to the base year established for the
rate year beginning January 1, 1991, and for subsequent rate years, shall not be limited
to the limits ending June 30, 1987, on the maximum rate of increase under subdivision
1. The commissioner may adjust base year cost, relative value, and case mix index data
to exclude the costs of services that have been discontinued by the October 1 of the year
preceding the rate year or that are paid separately from inpatient services. Inpatient stays
that encompass portions of two or more rate years shall have payments established based
on payment rates in effect at the time of admission unless the date of admission preceded
the rate year in effect by six months or more. In this case, operating payment rates for
services rendered during the rate year in effect and established based on the date of
admission shall be adjusted to the rate year in effect by the hospital cost index.

(b) For fee-for-service admissions occurring on or after July 1, 2002, the total
payment, before third-party liability and spenddown, made to hospitals for inpatient
services is reduced by .5 percent from the current statutory rates.

(c) In addition to the reduction in paragraph (b), the total payment for fee-for-service
admissions occurring on or after July 1, 2003, made to hospitals for inpatient services
before third-party liability and spenddown, is reduced five percent from the current
statutory rates. Mental health services within diagnosis related groups 424 to 432, and
facilities defined under subdivision 16 are excluded from this paragraph.

(d) In addition to the reduction in paragraphs (b) and (c), the total payment for
fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for
inpatient services before third-party liability and spenddown, is reduced 6.0 percent
from the current statutory rates. Mental health services within diagnosis related groups
424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph.
Notwithstanding section 256.9686, subdivision 7, for purposes of this paragraph, medical
assistance does not include general assistance medical care. Payments made to managed
care plans shall be reduced for services provided on or after January 1, 2006, to reflect
this reduction.

(e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for
fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009, made
to hospitals for inpatient services before third-party liability and spenddown, is reduced
3.46 percent from the current statutory rates. Mental health services with diagnosis related
groups 424 to 432 and facilities defined under subdivision 16 are excluded from this
paragraph. Payments made to managed care plans shall be reduced for services provided
on or after January 1, 2009, through June 30, 2009, to reflect this reduction.

(f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment for
fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2010, made
to hospitals for inpatient services before third-party liability and spenddown, is reduced
1.9 percent from the current statutory rates. Mental health services with diagnosis related
groups 424 to 432 and facilities defined under subdivision 16 are excluded from this
paragraph. Payments made to managed care plans shall be reduced for services provided
on or after July 1, 2009, through June 30, 2010, to reflect this reduction.

(g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment
for fee-for-service admissions occurring on or after July 1, 2010, made to hospitals for
inpatient services before third-party liability and spenddown, is reduced 1.79 percent
from the current statutory rates. Mental health services with diagnosis related groups
424 to 432 and facilities defined under subdivision 16 are excluded from this paragraph.
Payments made to managed care plans shall be reduced for services provided on or after
July 1, 2010, to reflect this reduction.

(h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total
payment for fee-for-service admissions occurring on or after July 1, 2009, made to
hospitals for inpatient services before third-party liability and spenddown, is reduced
one percent from the current statutory rates. Facilities defined under subdivision 16 are
excluded from this paragraph. Payments made to managed care plans shall be reduced for
services provided on or after October 1, 2009, to reflect this reduction.

(i) In addition to the reductions in paragraphs (b), (c), (d), (g), and (h), the total
payment for fee-for-service admissions occurring on or after July 1, 2011, made to
hospitals for inpatient services before third-party liability and spenddown, is reduced
1.96 percent from the current statutory rates. Facilities defined under subdivision 16 are
excluded from this paragraph. Payments made to managed care plans shall be reduced for
services provided on or after January 1, 2011, to reflect this reduction.

EFFECTIVE DATE.

This section is effective July 1, 2011.

Sec. 4.

Minnesota Statutes 2008, section 256B.04, subdivision 14a, is amended to read:


Subd. 14a.

Level of need determination.

Nonemergency medical transportation
level of need determinations must be performed by a physician, a registered nurse working
under direct supervision of a physician, a physician's assistant, a nurse practitioner, a
licensed practical nurse, or a discharge planner. Nonemergency medical transportation
level of need determinations must not be performed more than semiannually annually on
any individual, unless the individual's circumstances have sufficiently changed so as
to require a new level of need determination. Individuals residing in licensed nursing
facilities are exempt from a level of need determination and are eligible for special
transportation services until the individual no longer resides in a licensed nursing facility.
If a person authorized by this subdivision to perform a level of need determination
determines that an individual requires stretcher transportation, the individual is presumed
to maintain that level of need until otherwise determined by a person authorized to
perform a level of need determination, or for six months, whichever is sooner.

Sec. 5.

Minnesota Statutes 2008, section 256B.055, is amended by adding a
subdivision to read:


Subd. 15.

Adults without children.

Medical assistance may be paid for a person
who is:

(1) at least age 21 and under age 65;

(2) not pregnant;

(3) not entitled to Medicare Part A or enrolled in Medicare Part B under Title XVIII
of the Social Security Act;

(4) not an adult in a family with children as defined in section 256L.01, subdivision
3a; and

(5) not described in another subdivision of this section.

Sec. 6.

Minnesota Statutes 2008, section 256B.056, subdivision 3, is amended to read:


Subd. 3.

Asset limitations for individuals and families.

(a) To be eligible for
medical assistance, a person must not individually own more than $3,000 in assets, or if a
member of a household with two family members, husband and wife, or parent and child,
the household must not own more than $6,000 in assets, plus $200 for each additional
legal dependent. In addition to these maximum amounts, an eligible individual or family
may accrue interest on these amounts, but they must be reduced to the maximum at the
time of an eligibility redetermination. The accumulation of the clothing and personal
needs allowance according to section 256B.35 must also be reduced to the maximum at
the time of the eligibility redetermination. The value of assets that are not considered in
determining eligibility for medical assistance is the value of those assets excluded under
the supplemental security income program for aged, blind, and disabled persons, with
the following exceptions:

(1) household goods and personal effects are not considered;

(2) capital and operating assets of a trade or business that the local agency determines
are necessary to the person's ability to earn an income are not considered;

(3) motor vehicles are excluded to the same extent excluded by the supplemental
security income program;

(4) assets designated as burial expenses are excluded to the same extent excluded by
the supplemental security income program. Burial expenses funded by annuity contracts
or life insurance policies must irrevocably designate the individual's estate as contingent
beneficiary to the extent proceeds are not used for payment of selected burial expenses; and

(5) effective upon federal approval, for a person who no longer qualifies as an
employed person with a disability due to loss of earnings, assets allowed while eligible
for medical assistance under section 256B.057, subdivision 9, are not considered for 12
months, beginning with the first month of ineligibility as an employed person with a
disability, to the extent that the person's total assets remain within the allowed limits of
section 256B.057, subdivision 9, paragraph (c).

(b) No asset limit shall apply to persons eligible under section 256B.055, subdivision
15.

Sec. 7.

Minnesota Statutes 2008, section 256B.056, subdivision 4, is amended to read:


Subd. 4.

Income.

(a) To be eligible for medical assistance, a person eligible under
section 256B.055, subdivisions 7, 7a, and 12, may have income up to 100 percent of
the federal poverty guidelines. Effective January 1, 2000, and each successive January,
recipients of supplemental security income may have an income up to the supplemental
security income standard in effect on that date.

(b) To be eligible for medical assistance, families and children may have an income
up to 133-1/3 percent of the AFDC income standard in effect under the July 16, 1996,
AFDC state plan. Effective July 1, 2000, the base AFDC standard in effect on July 16,
1996, shall be increased by three percent.

(c) Effective July 1, 2002, to be eligible for medical assistance, families and children
may have an income up to 100 percent of the federal poverty guidelines for the family size.

(d) To be eligible for medical assistance under section 256B.055, subdivision 15, a
person may have an income up to 75 percent of federal poverty guidelines for the family
size.

(e) In computing income to determine eligibility of persons under paragraphs (a) to
(c) (d) who are not residents of long-term care facilities, the commissioner shall disregard
increases in income as required by Public Law Numbers 94-566, section 503; 99-272;
and 99-509. Veterans aid and attendance benefits and Veterans Administration unusual
medical expense payments are considered income to the recipient.

Sec. 8.

Minnesota Statutes 2008, section 256B.0625, subdivision 8, is amended to read:


Subd. 8.

Physical therapy.

Medical assistance covers physical therapy and related
services, including specialized maintenance therapy. Authorization by the commissioner
is required to provide medically necessary services to a recipient beyond any of the
following onetime service thresholds, or a lower threshold where one has been established
by the commissioner for a specified service: (1) 80 units of any approved CPT code other
than modalities; (2) 20 modality sessions; and (3) three evaluations or reevaluations.
Services provided by a physical therapy assistant shall be reimbursed at the same rate as
services performed by a physical therapist when the services of the physical therapy
assistant are provided under the direction of a physical therapist who is on the premises.
Services provided by a physical therapy assistant that are provided under the direction
of a physical therapist who is not on the premises shall be reimbursed at 65 percent of
the physical therapist rate.

EFFECTIVE DATE.

This section is effective July 1, 2010, for services provided
through fee-for-service, and January 1, 2011, for services provided through managed care.

Sec. 9.

Minnesota Statutes 2008, section 256B.0625, subdivision 8a, is amended to
read:


Subd. 8a.

Occupational therapy.

Medical assistance covers occupational therapy
and related services, including specialized maintenance therapy. Authorization by the
commissioner is required to provide medically necessary services to a recipient beyond
any of the following onetime service thresholds, or a lower threshold where one has been
established by the commissioner for a specified service: (1) 120 units of any combination
of approved CPT codes; and (2) two evaluations or reevaluations.
Services provided by an
occupational therapy assistant shall be reimbursed at the same rate as services performed
by an occupational therapist when the services of the occupational therapy assistant are
provided under the direction of the occupational therapist who is on the premises. Services
provided by an occupational therapy assistant that are provided under the direction of an
occupational therapist who is not on the premises shall be reimbursed at 65 percent of
the occupational therapist rate.

EFFECTIVE DATE.

This section is effective July 1, 2010, for services provided
through fee-for-service, and January 1, 2011, for services provided through managed care.

Sec. 10.

Minnesota Statutes 2008, section 256B.0625, subdivision 8b, is amended to
read:


Subd. 8b.

Speech language pathology and audiology services.

Medical assistance
covers speech language pathology and related services, including specialized maintenance
therapy. Authorization by the commissioner is required to provide medically necessary
services to a recipient beyond any of the following onetime service thresholds, or a
lower threshold where one has been established by the commissioner for a specified
service: (1) 50 treatment sessions with any combination of approved CPT codes; and
(2) one evaluation.
Medical assistance covers audiology services and related services.
Services provided by a person who has been issued a temporary registration under section
148.5161 shall be reimbursed at the same rate as services performed by a speech language
pathologist or audiologist as long as the requirements of section 148.5161, subdivision
3
, are met.

EFFECTIVE DATE.

This section is effective July 1, 2010, for services provided
through fee-for-service, and January 1, 2011, for services provided through managed care.

Sec. 11.

Minnesota Statutes 2008, section 256B.0625, is amended by adding a
subdivision to read:


Subd. 8d.

Chiropractic services.

Payment for chiropractic services is limited to
one annual evaluation and 12 visits per year unless prior authorization of a greater number
of visits is obtained.

Sec. 12.

Minnesota Statutes 2009 Supplement, section 256B.0625, subdivision 13h,
is amended to read:


Subd. 13h.

Medication therapy management services.

(a) Medical assistance
and general assistance medical care cover medication therapy management services for
a recipient taking four or more prescriptions to treat or prevent two or more chronic
medical conditions, or a recipient with a drug therapy problem that is identified or prior
authorized by the commissioner that has resulted or is likely to result in significant
nondrug program costs. The commissioner may cover medical therapy management
services under MinnesotaCare if the commissioner determines this is cost-effective. For
purposes of this subdivision, "medication therapy management" means the provision
of the following pharmaceutical care services by a licensed pharmacist to optimize the
therapeutic outcomes of the patient's medications:

(1) performing or obtaining necessary assessments of the patient's health status;

(2) formulating a medication treatment plan;

(3) monitoring and evaluating the patient's response to therapy, including safety
and effectiveness;

(4) performing a comprehensive medication review to identify, resolve, and prevent
medication-related problems, including adverse drug events;

(5) documenting the care delivered and communicating essential information to
the patient's other primary care providers;

(6) providing verbal education and training designed to enhance patient
understanding and appropriate use of the patient's medications;

(7) providing information, support services, and resources designed to enhance
patient adherence with the patient's therapeutic regimens; and

(8) coordinating and integrating medication therapy management services within the
broader health care management services being provided to the patient.

Nothing in this subdivision shall be construed to expand or modify the scope of practice of
the pharmacist as defined in section 151.01, subdivision 27.

(b) To be eligible for reimbursement for services under this subdivision, a pharmacist
must meet the following requirements:

(1) have a valid license issued under chapter 151;

(2) have graduated from an accredited college of pharmacy on or after May 1996, or
completed a structured and comprehensive education program approved by the Board of
Pharmacy and the American Council of Pharmaceutical Education for the provision and
documentation of pharmaceutical care management services that has both clinical and
didactic elements;

(3) be practicing in an ambulatory care setting as part of a multidisciplinary team or
have developed a structured patient care process that is offered in a private or semiprivate
patient care area that is separate from the commercial business that also occurs in the
setting, or in home settings, excluding long-term care and group homes, if the service is
ordered by the provider-directed care coordination team; and

(4) make use of an electronic patient record system that meets state standards.

(c) For purposes of reimbursement for medication therapy management services,
the commissioner may enroll individual pharmacists as medical assistance and general
assistance medical care providers. The commissioner may also establish contact
requirements between the pharmacist and recipient, including limiting the number of
reimbursable consultations per recipient.

(d) If there are no pharmacists who meet the requirements of paragraph (b) practicing
within a reasonable geographic distance of the patient, a pharmacist who meets the
requirements may provide the services via two-way interactive video. Reimbursement
shall be at the same rates and under the same conditions that would otherwise apply to
the services provided. To qualify for reimbursement under this paragraph, the pharmacist
providing the services must meet the requirements of paragraph (b), and must be located
within an ambulatory care setting approved by the commissioner. The patient must also
be located within an ambulatory care setting approved by the commissioner. Services
provided under this paragraph may not be transmitted into the patient's residence.

(e) The commissioner shall establish a pilot project for an intensive medication
therapy management program for patients identified by the commissioner with multiple
chronic conditions and a high number of medications who are at high risk of preventable
hospitalizations, emergency room use, medication complications, and suboptimal
treatment outcomes due to medication-related problems. For purposes of the pilot
project, medication therapy management services may be provided in a patient's home
or community setting, in addition to other authorized settings. The commissioner may
waive existing payment policies and establish special payment rates for the pilot project.
The pilot project must be designed to produce a net savings to the state compared to the
estimated costs that would otherwise be incurred for similar patients without the program.
The pilot project must begin by January 1, 2010, and end June 30, 2012.

EFFECTIVE DATE.

This section is effective July 1, 2010.

Sec. 13.

Minnesota Statutes 2008, section 256B.0625, subdivision 18a, is amended to
read:


Subd. 18a.

Access to medical services.

(a) Medical assistance reimbursement for
meals for persons traveling to receive medical care may not exceed $5.50 for breakfast,
$6.50 for lunch, or $8 for dinner.

(b) Medical assistance reimbursement for lodging for persons traveling to receive
medical care may not exceed $50 per day unless prior authorized by the local agency.

(c) Medical assistance direct mileage reimbursement to the eligible person or the
eligible person's driver may not exceed 20 cents per mile.

(d) Regardless of the number of employees that an enrolled health care provider
may have, medical assistance covers sign and oral language interpreter services when
provided by an enrolled health care provider during the course of providing a direct,
person-to-person covered health care service to an enrolled recipient with limited English
proficiency or who has a hearing loss and uses interpreting services. Coverage for
face-to-face oral language interpreter services shall be provided only if the oral language
interpreter used by the enrolled health care provider is listed in the registry or roster
established under section 144.058.

EFFECTIVE DATE.

This section is effective January 1, 2011.

Sec. 14.

Minnesota Statutes 2008, section 256B.0625, subdivision 31, is amended to
read:


Subd. 31.

Medical supplies and equipment.

Medical assistance covers medical
supplies and equipment. Separate payment outside of the facility's payment rate shall
be made for wheelchairs and wheelchair accessories for recipients who are residents
of intermediate care facilities for the developmentally disabled. Reimbursement for
wheelchairs and wheelchair accessories for ICF/MR recipients shall be subject to the same
conditions and limitations as coverage for recipients who do not reside in institutions. A
wheelchair purchased outside of the facility's payment rate is the property of the recipient.
The commissioner may set reimbursement rates for specified categories of medical
supplies at levels below the Medicare payment rate.

Sec. 15.

Minnesota Statutes 2008, section 256B.0625, is amended by adding a
subdivision to read:


Subd. 54.

Services provided in birth centers.

(a) Medical assistance covers
services provided in a licensed birth center by a licensed health professional if the service
would otherwise be covered if provided in a hospital.

(b) Facility services provided by a birth center shall be paid at the lower of billed
charges or 70 percent of the statewide average for a facility payment rate made to a
hospital for an uncomplicated vaginal birth as determined using the most recent calendar
year for which complete claims data is available. If a recipient is transported from a birth
center to a hospital prior to the delivery, the payment for facility services to the birth center
shall be the lower of billed charges or 15 percent of the average facility payment made to a
hospital for the services provided for an uncomplicated vaginal delivery as determined
using the most recent calendar year for which complete claims data is available.

(c) Nursery care services provided by a birth center shall be paid the lower of billed
charges or 70 percent of the statewide average for a payment rate paid to a hospital for
nursery care as determined by using the most recent calendar year for which complete
claims data is available.

(d) Professional services provided by traditional midwives licensed under chapter
147D shall be paid at the lower of billed charges or 100 percent of the rate paid to a
physician performing the same services. If a recipient is transported from a birth center to
a hospital prior to the delivery, a licensed traditional midwife who does not perform the
delivery may not bill for any delivery services. Services are not covered if provided by an
unlicensed traditional midwife.

(e) The commissioner shall apply for any necessary waivers from the Centers for
Medicare and Medicaid Services to allow birth centers and birth center providers to be
reimbursed.

EFFECTIVE DATE.

This section is effective July 1, 2010.

Sec. 16.

Minnesota Statutes 2008, section 256B.0631, subdivision 1, is amended to
read:


Subdivision 1.

Co-payments.

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

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

(2) $3 for eyeglasses;

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

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

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

(1) $6 $3.50 for nonemergency visits to a hospital-based emergency room;

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

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

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

EFFECTIVE DATE.

This section is effective January 1, 2011.

Sec. 17.

Minnesota Statutes 2008, section 256B.0631, subdivision 3, is amended to
read:


Subd. 3.

Collection.

(a) The medical assistance reimbursement to the provider
shall be reduced by the amount of the co-payment, except that reimbursements shall
not be reduced:

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

(2) for a recipient identified by the commissioner under 100 percent of the federal
poverty guidelines who has met their monthly five percent co-payment limit.

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

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

Sec. 18.

Minnesota Statutes 2008, section 256B.0644, as amended by Laws 2010,
chapter 200, article 1, section 6, is amended to read:


256B.0644 REIMBURSEMENT UNDER OTHER STATE HEALTH CARE
PROGRAMS.

(a) A vendor of medical care, as defined in section 256B.02, subdivision 7, and a
health maintenance organization, as defined in chapter 62D, must participate as a provider
or contractor in the medical assistance program, general assistance medical care program,
and MinnesotaCare as a condition of participating as a provider in health insurance plans
and programs or contractor for state employees established under section 43A.18, the
public employees insurance program under section 43A.316, for health insurance plans
offered to local statutory or home rule charter city, county, and school district employees,
the workers' compensation system under section 176.135, and insurance plans provided
through the Minnesota Comprehensive Health Association under sections 62E.01 to
62E.19. The limitations on insurance plans offered to local government employees shall
not be applicable in geographic areas where provider participation is limited by managed
care contracts with the Department of Human Services.

(b) For providers other than health maintenance organizations, participation in the
medical assistance program means that:

(1) the provider accepts new medical assistance, general assistance medical care,
and MinnesotaCare patients;

(2) for providers other than dental service providers, at least 20 percent of the
provider's patients are covered by medical assistance, general assistance medical care,
and MinnesotaCare as their primary source of coverage; or

(3) for dental service providers, at least ten percent of the provider's patients are
covered by medical assistance, general assistance medical care, and MinnesotaCare as
their primary source of coverage, or the provider accepts new medical assistance and
MinnesotaCare patients who are children with special health care needs. For purposes
of this section, "children with special health care needs" means children up to age 18
who: (i) require health and related services beyond that required by children generally;
and (ii) have or are at risk for a chronic physical, developmental, behavioral, or emotional
condition, including: bleeding and coagulation disorders; immunodeficiency disorders;
cancer; endocrinopathy; developmental disabilities; epilepsy, cerebral palsy, and other
neurological diseases; visual impairment or deafness; Down syndrome and other genetic
disorders; autism; fetal alcohol syndrome; and other conditions designated by the
commissioner after consultation with representatives of pediatric dental providers and
consumers.

(c) Patients seen on a volunteer basis by the provider at a location other than
the provider's usual place of practice may be considered in meeting the participation
requirement in this section. The commissioner shall establish participation requirements
for health maintenance organizations. The commissioner shall provide lists of participating
medical assistance providers on a quarterly basis to the commissioner of management and
budget, the commissioner of labor and industry, and the commissioner of commerce. Each
of the commissioners shall develop and implement procedures to exclude as participating
providers in the program or programs under their jurisdiction those providers who do
not participate in the medical assistance program. The commissioner of management
and budget shall implement this section through contracts with participating health and
dental carriers.

(d) Any hospital or other provider that is participating in a coordinated care
delivery system under section 256D.031, subdivision 6, or receives payments from the
uncompensated care pool under section 256D.031, subdivision 8, shall not refuse to
provide services to any patient enrolled in general assistance medical care regardless of
the availability or the amount of payment.

(e) For purposes of paragraphs (a) and (b), participation in the general assistance
medical care program applies only to pharmacy providers.

EFFECTIVE DATE.

This section is effective June 1, 2010.

Sec. 19.

[256B.0755] HEALTH CARE DELIVERY SYSTEMS
DEMONSTRATION PROJECT.

Subdivision 1.

Implementation.

(a) The commissioner shall develop and
authorize a demonstration project to test alternative and innovative health care delivery
systems, including accountable care organizations that provide services to a specified
patient population for an agreed upon total cost of care or risk-gain sharing payment
arrangement. The commissioner shall develop a request for proposals for participation in
the demonstration project in consultation with hospitals, primary care providers, health
plans, and other key stakeholders.

(b) In developing the request for proposals, the commissioner shall:

(1) establish uniform statewide methods of forecasting utilization and cost of care
for the appropriate Minnesota public program populations, to be used by the commissioner
for the health care delivery system projects;

(2) identify key indicators of quality, access, patient satisfaction, and other
performance indicators that will be measured, in addition to indicators for measuring
cost savings;

(3) allow maximum flexibility to encourage innovation and variation so that a variety
of provider collaborations are able to become health care delivery systems;

(4) encourage and authorize different levels and types of financial risk;

(5) encourage and authorize projects representing a wide variety of geographic
locations, patient populations, provider relationships, and care coordination models;

(6) encourage projects that involve close partnerships between the health care
delivery system and counties and nonprofit agencies that provide services to patients
enrolled with the health care delivery system, including social services, public health,
mental health, community-based services, and continuing care;

(7) encourage projects established by community hospitals, clinics, and other
providers in rural communities;

(8) identify required covered services for a total cost of care model or services
considered in whole or partially in an analysis of utilization for a risk/gain sharing model;

(9) establish a mechanism to monitor enrollment;

(10) establish quality standards for the delivery system demonstrations;

(11) encourage participation of privately insured population so as to create sufficient
alignment in demonstration systems; and

(12) coordinate projects with any coordinated care delivery systems established
under section 256D.031.

(c) To be eligible to participate in the demonstration project, a health care delivery
system must:

(1) provide required covered services and care coordination to recipients enrolled in
the health care delivery system;

(2) establish a process to monitor enrollment and ensure the quality of care provided;

(3) in cooperation with counties and community social service agencies, coordinate
the delivery of health care services with existing social services programs;

(4) provide a system for advocacy and consumer protection; and

(5) adopt innovative and cost-effective methods of care delivery and coordination,
which may include the use of allied health professionals, telemedicine, patient educators,
care coordinators, and community health workers.

(d) A health care delivery system demonstration may be formed by the following
groups of providers of services and suppliers if they have established a mechanism for
shared governance:

(1) professionals in group practice arrangements;

(2) networks of individual practices of professionals;

(3) partnerships or joint venture arrangements between hospitals and health care
professionals;

(4) hospitals employing professionals; and

(5) other groups of providers of services and suppliers as the commissioner
determines appropriate.

A managed care plan or county-based purchasing plan may participate in this
demonstration in collaboration with one or more of the entities listed in clauses (1) to (5).

A health care delivery system may contract with a managed care plan or a
county-based purchasing plan to provide administrative services, including the
administration of a payment system using the payment methods established by the
commissioner for health care delivery systems.

(e) The commissioner may require a health care delivery system to enter into
additional third-party contractual relationships for the assessment of risk and purchase of
stop loss insurance or another form of insurance risk management related to the delivery
of care described in paragraph (c).

Subd. 2.

Enrollment.

(a) Individuals eligible for medical assistance or
MinnesotaCare shall be eligible for enrollment in a health care delivery system.

(b) Eligible applicants and recipients may enroll in a health care delivery system if
a system serves the county in which the applicant or recipient resides. If more than one
health care delivery system serves a county, the applicant or recipient shall be allowed
to choose among the delivery systems. The commissioner may assign an applicant or
recipient to a health care delivery system if a health care delivery system is available and
no choice has been made by the applicant or recipient.

Subd. 3.

Accountability.

(a) Health care delivery systems must accept responsibility
for the quality of care based on standards established under subdivision 1, paragraph (b),
clause (10), and the cost of care or utilization of services provided to its enrollees under
subdivision 1, paragraph (b), clause (1).

(b) A health care delivery system may contract and coordinate with providers and
clinics for the delivery of services and shall contract with community health clinics,
federally qualified health centers, community mental health centers or programs, and rural
clinics to the extent practicable.

Subd. 4.

Payment system.

(a) In developing a payment system for health care
delivery systems, the commissioner shall establish a total cost of care benchmark or a
risk/gain sharing payment model to be paid for services provided to the recipients enrolled
in a health care delivery system.

(b) The payment system may include incentive payments to health care delivery
systems that meet or exceed annual quality and performance targets realized through
the coordination of care.

(c) An amount equal to the savings realized to the general fund as a result of the
demonstration project shall be transferred each fiscal year to the health care access fund.

Subd. 5.

Outpatient prescription drug coverage.

Outpatient prescription drug
coverage may be provided through accountable care organizations only if the delivery
method qualifies for federal prescription drug rebates.

Subd. 6.

Federal approval.

The commissioner shall apply for any federal waivers
or other federal approval required to implement this section. The commissioner shall
also apply for any applicable grant or demonstration under the Patient Protection and
Affordable Health Care Act, Public Law 111-148, or the Health Care and Education
Reconciliation Act of 2010, Public Law 111-152, that would further the purposes of or
assist in the establishment of accountable care organizations.

Subd. 7.

Expansion.

The commissioner shall explore the expansion of the
demonstration project to include additional medical assistance and MinnesotaCare
enrollees, and shall seek participation of Medicare in demonstration projects. The
commissioner shall seek to include participation of privately insured persons and Medicare
recipients in the health care delivery demonstration.

EFFECTIVE DATE.

This section is effective July 1, 2011.

Sec. 20.

[256B.0756] HENNEPIN AND RAMSEY COUNTIES PILOT
PROGRAM.

(a) The commissioner, upon federal approval of a new waiver request or amendment
of an existing demonstration, may establish a pilot program in Hennepin County or
Ramsey County, or both, to test alternative and innovative integrated health care delivery
networks.

(b) Individuals eligible for the pilot program shall be individuals who are eligible for
medical assistance under Minnesota Statutes, section 256B.055, subdivision 15, and who
reside in Hennepin County or Ramsey County.

(c) Individuals enrolled in the pilot shall be enrolled in an integrated health care
delivery network in their county of residence. The integrated health care delivery network
in Hennepin County shall be a network, such as an accountable care organization or a
community-based collaborative care network, created by or including Hennepin County
Medical Center. The integrated health care delivery network in Ramsey County shall be
a network, such as an accountable care organization or community-based collaborative
care network, created by or including Regions Hospital.

(d) The commissioner shall cap pilot program enrollment at 7,000 enrollees for
Hennepin County and 3,500 enrollees for Ramsey County.

(e) In developing a payment system for the pilot programs, the commissioner shall
establish a total cost of care for the recipients enrolled in the pilot programs that equals
the cost of care that would otherwise be spent for these enrollees in the prepaid medical
assistance program.

(f) Counties may transfer funds necessary to support the nonfederal share of
payments for integrated health care delivery networks in their county. Such transfers per
county shall not exceed 15 percent of the expected expenses for county enrollees.

(g) The commissioner shall apply to the federal government for, or as appropriate,
cooperate with counties, providers, or other entities that are applying for any applicable
grant or demonstration under the Patient Protection and Affordable Health Care Act, Public
Law 111-148, or the Health Care and Education Reconciliation Act of 2010, Public Law
111-152, that would further the purposes of or assist in the creation of an integrated health
care delivery network for the purposes of this subdivision, including, but not limited to, a
global payment demonstration or the community-based collaborative care network grants.

Sec. 21.

Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 5a,
is amended to read:


Subd. 5a.

Managed care contracts.

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

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

(c) Effective for services rendered on or after January 1, 2003, the commissioner
shall withhold five percent of managed care plan payments under this section and
county-based purchasing plan's payment rate plan payments under section 256B.692 for
the prepaid medical assistance and general assistance medical care programs pending
completion of performance targets. Each performance target must be quantifiable,
objective, measurable, and reasonably attainable, except in the case of a performance target
based on a federal or state law or rule. Criteria for assessment of each performance target
must be outlined in writing prior to the contract effective date. The managed care plan
must demonstrate, to the commissioner's satisfaction, that the data submitted regarding
attainment of the performance target is accurate. The commissioner shall periodically
change the administrative measures used as performance targets in order to improve plan
performance across a broader range of administrative services. The performance targets
must include measurement of plan efforts to contain spending on health care services and
administrative activities. The commissioner may adopt plan-specific performance targets
that take into account factors affecting only one plan, including characteristics of the
plan's enrollee population. The withheld funds must be returned no sooner than July of the
following year if performance targets in the contract are achieved. The commissioner may
exclude special demonstration projects under subdivision 23.

(d) Effective for services rendered on or after January 1, 2009, through December 31,
2009, the commissioner shall withhold three percent of managed care plan payments under
this section and county-based purchasing plan payments under section 256B.692 for the
prepaid medical assistance and general assistance medical care programs. The withheld
funds must be returned no sooner than July 1 and no later than July 31 of the following
year. The commissioner may exclude special demonstration projects under subdivision 23.

The return of the withhold under this paragraph is not subject to the requirements of
paragraph (c).

(e) Effective for services provided on or after January 1, 2010, the commissioner
shall require that managed care plans use the assessment and authorization processes,
forms, timelines, standards, documentation, and data reporting requirements, protocols,
billing processes, and policies consistent with medical assistance fee-for-service or the
Department of Human Services contract requirements consistent with medical assistance
fee-for-service or the Department of Human Services contract requirements for all
personal care assistance services under section 256B.0659.

(f) Effective for services rendered on or after January 1, 2010, through December
31, 2010, the commissioner shall withhold 3.5 percent of managed care plan payments
under this section and county-based purchasing plan payments under section 256B.692
for the prepaid medical assistance program. The withheld funds must be returned no
sooner than July 1 and no later than July 31 of the following year. The commissioner may
exclude special demonstration projects under subdivision 23.

(g) Effective for services rendered on or after January 1, 2011, the commissioner
shall include as part of the performance targets described in paragraph (c) a reduction in
the health plan's emergency room utilization rate for state health care program enrollees
by a measurable rate of five percent from the plan's utilization rate for state health care
program enrollees for the previous calendar year.

The withheld funds must be returned no sooner than July 1 and no later than July 31
of the following calendar year if the managed care plan demonstrates to the satisfaction of
the commissioner that a reduction in the utilization rate was achieved.

The withhold described in this paragraph shall continue for each consecutive
contract period until the plan's emergency room utilization rate for state health care
program enrollees is reduced by 25 percent of the plan's emergency room utilization
rate for state health care program enrollees for calendar year 2009. Hospitals shall
cooperate with the health plans in meeting this performance target and shall accept
payment withholds that may be returned to the hospitals if the performance target is
achieved. The commissioner shall structure the withhold so that the commissioner returns
a portion of the withheld funds in amounts commensurate with achieved reductions in
utilization less than the targeted amount. The withhold in this paragraph does not apply to
county-based purchasing plans.

(g) (h) Effective for services rendered on or after January 1, 2011, through December
31, 2011, the commissioner shall withhold four percent of managed care plan payments
under this section and county-based purchasing plan payments under section 256B.692
for the prepaid medical assistance program. The withheld funds must be returned no
sooner than July 1 and no later than July 31 of the following year. The commissioner may
exclude special demonstration projects under subdivision 23.

(h) (i) Effective for services rendered on or after January 1, 2012, through December
31, 2012, the commissioner shall withhold 4.5 percent of managed care plan payments
under this section and county-based purchasing plan payments under section 256B.692
for the prepaid medical assistance program. The withheld funds must be returned no
sooner than July 1 and no later than July 31 of the following year. The commissioner may
exclude special demonstration projects under subdivision 23.

(i) (j) Effective for services rendered on or after January 1, 2013, through December
31, 2013, the commissioner shall withhold 4.5 percent of managed care plan payments
under this section and county-based purchasing plan payments under section 256B.692
for the prepaid medical assistance program. The withheld funds must be returned no
sooner than July 1 and no later than July 31 of the following year. The commissioner may
exclude special demonstration projects under subdivision 23.

(j) (k) Effective for services rendered on or after January 1, 2014, the commissioner
shall withhold three percent of managed care plan payments under this section and
county-based purchasing plan payments under section 256B.692 for the prepaid medical
assistance and prepaid general assistance medical care programs. The withheld funds must
be returned no sooner than July 1 and no later than July 31 of the following year. The
commissioner may exclude special demonstration projects under subdivision 23.

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

(l) (m) Contracts between the commissioner and a prepaid health plan are exempt
from the set-aside and preference provisions of section 16C.16, subdivisions 6, paragraph
(a), and 7.

EFFECTIVE DATE.

This section is effective July 1, 2010.

Sec. 22.

Minnesota Statutes 2008, section 256B.69, is amended by adding a
subdivision to read:


Subd. 5l.

Actuarial soundness.

(a) Rates paid to managed care plans and
county-based purchasing plans shall satisfy requirements for actuarial soundness. In order
to comply with this subdivision, the rates must:

(1) be neither inadequate nor excessive;

(2) satisfy federal requirements;

(3) in the case of contracts with incentive arrangements, not exceed 105 percent of
the approved capitation payments attributable to the enrollees or services covered by
the incentive arrangement;

(4) be developed in accordance with generally accepted actuarial principles and
practices;

(5) be appropriate for the populations to be covered and the services to be furnished
under the contract; and

(6) be certified as meeting the requirements of federal regulations by actuaries who
meet the qualification standards established by the American Academy of Actuaries and
follow the practice standards established by the Actuarial Standards Board.

(b) Each year within 30 days of the establishment of plan rates, the commissioner
shall report to the chairs and ranking minority members of the senate Health and Human
Services Budget Division and the house of representatives Health Care and Human
Services Finance Division to certify how each of these conditions have been met by
the new payment rates.

Sec. 23.

Minnesota Statutes 2008, section 256B.69, subdivision 27, is amended to read:


Subd. 27.

Information for persons with limited English-language proficiency.

Managed care contracts entered into under this section and sections 256D.03, subdivision
4
, paragraph (c), and
section 256L.12 must require demonstration providers to provide
language assistance to enrollees that ensures meaningful access to its programs and
services according to Title VI of the Civil Rights Act and federal regulations adopted
under that law or any guidance from the United States Department of Health and Human
Services.

EFFECTIVE DATE.

This section is effective retroactively from April 1, 2010.

Sec. 24.

Minnesota Statutes 2008, section 256B.692, subdivision 1, is amended to read:


Subdivision 1.

In general.

County boards or groups of county boards may elect
to purchase or provide health care services on behalf of persons eligible for medical
assistance and general assistance medical care who would otherwise be required to or may
elect to participate in the prepaid medical assistance or prepaid general assistance medical
care programs
according to sections section 256B.69 and 256D.03. Counties that elect to
purchase or provide health care under this section must provide all services included in
prepaid managed care programs according to sections section 256B.69, subdivisions 1
to 22
, and 256D.03. County-based purchasing under this section is governed by section
256B.69, unless otherwise provided for under this section.

EFFECTIVE DATE.

This section is effective retroactively from April 1, 2010.

Sec. 25.

Minnesota Statutes 2009 Supplement, section 256B.76, subdivision 1, is
amended to read:


Subdivision 1.

Physician reimbursement.

(a) Effective for services rendered on
or after October 1, 1992, the commissioner shall make payments for physician services
as follows:

(1) payment for level one Centers for Medicare and Medicaid Services' common
procedural coding system codes titled "office and other outpatient services," "preventive
medicine new and established patient," "delivery, antepartum, and postpartum care,"
"critical care," cesarean delivery and pharmacologic management provided to psychiatric
patients, and level three codes for enhanced services for prenatal high risk, shall be paid
at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June
30, 1992. If the rate on any procedure code within these categories is different than the
rate that would have been paid under the methodology in section 256B.74, subdivision 2,
then the larger rate shall be paid;

(2) payments for all other services shall be paid at the lower of (i) submitted charges,
or (ii) 15.4 percent above the rate in effect on June 30, 1992; and

(3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th
percentile of 1989, less the percent in aggregate necessary to equal the above increases
except that payment rates for home health agency services shall be the rates in effect
on September 30, 1992.

(b) Effective for services rendered on or after January 1, 2000, payment rates for
physician and professional services shall be increased by three percent over the rates
in effect on December 31, 1999, except for home health agency and family planning
agency services. The increases in this paragraph shall be implemented January 1, 2000,
for managed care.

(c) Effective for services rendered on or after July 1, 2009, payment rates for
physician and professional services shall be reduced by five percent over the rates in effect
on June 30, 2009. This reduction does and the reductions in paragraph (d) do not apply
to office or other outpatient visits, preventive medicine visits and family planning visits
billed by physicians, advanced practice nurses, or physician assistants in a family planning
agency or in one of the following primary care practices: general practice, general internal
medicine, general pediatrics, general geriatrics, and family medicine. This reduction does
and the reductions in paragraph (d) do not apply to federally qualified health centers,
rural health centers, and Indian health services. Effective October 1, 2009, payments
made to managed care plans and county-based purchasing plans under sections 256B.69,
256B.692, and 256L.12 shall reflect the payment reduction described in this paragraph.

(d) Effective for services rendered on or after July 1, 2010, payment rates for
physician and professional services shall be reduced an additional seven percent over
the five percent reduction in rates described in paragraph (c). This additional reduction
does not apply to physical therapy services, occupational therapy services, and speech
pathology and related services provided on or after July 1, 2010. This additional reduction
does not apply to physician services billed by a psychiatrist or an advanced practice nurse
with a specialty in mental health. Effective October 1, 2010, payments made to managed
care plans and county-based purchasing plans under sections 256B.69, 256B.692, and
256L.12 shall reflect the payment reduction described in this paragraph.

EFFECTIVE DATE.

This section is effective July 1, 2010.

Sec. 26.

Minnesota Statutes 2008, section 256B.76, subdivision 2, is amended to read:


Subd. 2.

Dental reimbursement.

(a) Effective for services rendered on or after
October 1, 1992, the commissioner shall make payments for dental services as follows:

(1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25
percent above the rate in effect on June 30, 1992; and

(2) dental rates shall be converted from the 50th percentile of 1982 to the 50th
percentile of 1989, less the percent in aggregate necessary to equal the above increases.

(b) Beginning October 1, 1999, the payment for tooth sealants and fluoride treatments
shall be the lower of (1) submitted charge, or (2) 80 percent of median 1997 charges.

(c) Effective for services rendered on or after January 1, 2000, payment rates for
dental services shall be increased by three percent over the rates in effect on December
31, 1999.

(d) Effective for services provided on or after January 1, 2002, payment for
diagnostic examinations and dental x-rays provided to children under age 21 shall be the
lower of (1) the submitted charge, or (2) 85 percent of median 1999 charges.

(e) The increases listed in paragraphs (b) and (c) shall be implemented January 1,
2000, for managed care.

(f) Effective for dental services rendered on or after October 1, 2010, by a
state-operated dental clinic, payment shall be paid on a reasonable cost basis that is based
on the Medicare principles of reimbursement. This payment shall be effective for services
rendered on or after January 1, 2011, to recipients enrolled in managed care plans or
county-based purchasing plans.

(g) Beginning in fiscal year 2011, if the payments to state-operated dental clinics
in paragraph (f), including state and federal shares, are less than $1,850,000 per fiscal
year, a supplemental state payment equal to the difference between the total payments
in paragraph (f) and $1,850,000 shall be paid from the general fund to state-operated
services for the operation of the dental clinics.

(h) If the cost-based payment system for state-operated dental clinics described in
paragraph (f) does not receive federal approval, then state-operated dental clinics shall be
designated as critical access dental providers under subdivision 4, paragraph (b), and shall
receive the critical access dental reimbursement rate as described under subdivision 4,
paragraph (a).

EFFECTIVE DATE.

This section is effective July 1, 2010.

Sec. 27.

Minnesota Statutes 2008, section 256B.76, subdivision 4, is amended to read:


Subd. 4.

Critical access dental providers.

(a) Effective for dental services
rendered on or after January 1, 2002, the commissioner shall increase reimbursements
to dentists and dental clinics deemed by the commissioner to be critical access dental
providers. For dental services rendered on or after July 1, 2007, the commissioner shall
increase reimbursement by 30 percent above the reimbursement rate that would otherwise
be paid to the critical access dental provider. The commissioner shall pay the health plan
companies
managed care plans and county-based purchasing plans in amounts sufficient
to reflect increased reimbursements to critical access dental providers as approved by the
commissioner. In determining which dentists and dental clinics shall be deemed critical
access dental providers, the commissioner shall review:

(b) The commissioner shall designate the following dentists and dental clinics as
critical access dental providers:

(1) the utilization rate in the service area in which the dentist or dental clinic operates
for dental services to patients covered by medical assistance, general assistance medical
care, or MinnesotaCare as their primary source of coverage
nonprofit community clinics
that:

(i) have nonprofit status in accordance with chapter 317A;

(ii) have tax exempt status in accordance with the Internal Revenue Code, section
501(c)(3);

(iii) are established to provide oral health services to patients who are low income,
uninsured, have special needs, and are underserved;

(iv) have professional staff familiar with the cultural background of the clinic's
patients;

(v) charge for services on a sliding fee scale designed to provide assistance to
low-income patients based on current poverty income guidelines and family size;

(vi) do not restrict access or services because of a patient's financial limitations
or public assistance status; and

(vii) have free care available as needed;

(2) the level of services provided by the dentist or dental clinic to patients covered
by medical assistance, general assistance medical care, or MinnesotaCare as their primary
source of coverage
federally qualified health centers, rural health clinics, and public
health clinics
; and

(3) whether the level of services provided by the dentist or dental clinic is critical
to maintaining adequate levels of patient access within the service area
county owned
and operated hospital-based dental clinics;

(4) a dental clinic or dental group owned and operated by a nonprofit corporation in
accordance with chapter 317A with more than 10,000 patient encounters per year with
patients who are uninsured or covered by medical assistance, general assistance medical
care, or MinnesotaCare; and

(5) a dental clinic associated with an oral health or dental education program
operated by the University of Minnesota or an institution within the Minnesota State
Colleges and Universities system
.

In the absence of a critical access dental provider in a service area, (c) The
commissioner may designate a dentist or dental clinic as a critical access dental provider
if the dentist or dental clinic is willing to provide care to patients covered by medical
assistance, general assistance medical care, or MinnesotaCare at a level which significantly
increases access to dental care in the service area.

EFFECTIVE DATE.

This section is effective July 1, 2010.

Sec. 28.

Minnesota Statutes 2009 Supplement, section 256B.766, is amended to read:


256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.

(a) Effective for services provided on or after July 1, 2009, total payments for
basic care services, shall be reduced by three percent, prior to third-party liability and
spenddown calculation. Effective July 1, 2010, the commissioner shall classify physical
therapy services, occupational therapy services, and speech language pathology and
related services as basic care services. The reduction in this paragraph shall apply to
physical therapy services, occupational therapy services, and speech language pathology
and related services provided on or after July 1, 2010.

(b) Payments made to managed care plans and county-based purchasing plans shall
be reduced for services provided on or after October 1, 2009, to reflect this the reduction
effective July 1, 2009, and payments made to the plans shall be reduced effective October
1, 2010, to reflect the reduction effective July 1, 2010
.

(b) (c) This section does not apply to physician and professional services, inpatient
hospital services, family planning services, mental health services, dental services,
prescription drugs, medical transportation, federally qualified health centers, rural health
centers, Indian health services, and Medicare cost-sharing.

Sec. 29.

[256B.767] MEDICARE PAYMENT LIMIT.

(a) Effective for services rendered on or after July 1, 2010, fee-for-service payment
rates for physician and professional services under section 256B.76, subdivision 1, and
basic care services subject to the rate reduction specified in section 256B.766, shall not
exceed the Medicare payment rate for the applicable service, as adjusted for any changes
in Medicare payment rates after July 1, 2010. The commissioner shall implement this
section after any other rate adjustment that is effective July 1, 2010, and shall reduce rates
under this section by first reducing or eliminating provider rate add-ons.

(b) This section does not apply to services provided by advanced practice certified
nurse midwives licensed under chapter 148 or traditional midwives licensed under chapter
147D. Notwithstanding this exemption, medical assistance fee-for-service payment rates
for advanced practice certified nurse midwives and licensed traditional midwives shall
equal and shall not exceed the medical assistance payment rate to physicians for the
applicable service.

(c) This section does not apply to mental health services or physician services billed
by a psychiatrist or an advanced practice registered nurse with a specialty in mental health.

Sec. 30.

Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 3, as
amended by Laws 2010, chapter 200, article 1, section 11, is amended to read:


Subd. 3.

General assistance medical care; eligibility.

(a) Beginning April 1, 2010,
the general assistance medical care program shall be administered according to section
256D.031, unless otherwise stated, except for outpatient prescription drug coverage,
which shall continue to be administered under this section and funded under section
256D.031, subdivision 9, beginning June 1, 2010.

(b) Outpatient prescription drug coverage under general assistance medical care is
limited to prescription drugs that:

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

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

(c) Outpatient prescription drug coverage does not include drugs administered in a
clinic or other outpatient setting.

(d) For the period beginning April 1, 2010, to May 31, 2010, general assistance
medical care covers the services listed in subdivision 4.

EFFECTIVE DATE.

This section is effective retroactively from April 1, 2010.

Sec. 31.

Minnesota Statutes 2008, section 256D.03, subdivision 3b, is amended to read:


Subd. 3b.

Cooperation.

(a) General assistance or general assistance medical care
applicants and recipients must cooperate with the state and local agency to identify
potentially liable third-party payors and assist the state in obtaining third-party payments.
Cooperation includes identifying any third party who may be liable for care and services
provided under this chapter to the applicant, recipient, or any other family member for
whom application is made and providing relevant information to assist the state in pursuing
a potentially liable third party. General assistance medical care applicants and recipients
must cooperate by providing information about any group health plan in which they may
be eligible to enroll. They must cooperate with the state and local agency in determining
if the plan is cost-effective. For purposes of this subdivision, coverage provided by the
Minnesota Comprehensive Health Association under chapter 62E shall not be considered
group health plan coverage or cost-effective by the state and local agency. If the plan is
determined cost-effective and the premium will be paid by the state or local agency or is
available at no cost to the person, they must enroll or remain enrolled in the group health
plan. Cost-effective insurance premiums approved for payment by the state agency and
paid by the local agency are eligible for reimbursement according to subdivision 6.

(b) Effective for all premiums due on or after June 30, 1997, general assistance
medical care does not cover premiums that a recipient is required to pay under a qualified
or Medicare supplement plan issued by the Minnesota Comprehensive Health Association.
General assistance medical care shall continue to cover premiums for recipients who are
covered under a plan issued by the Minnesota Comprehensive Health Association on June
30, 1997, for a period of six months following receipt of the notice of termination or
until December 31, 1997, whichever is later.

EFFECTIVE DATE.

This section is effective July 1, 2010.

Sec. 32.

Minnesota Statutes 2008, section 256D.031, subdivision 5, as added by Laws
2010, chapter 200, article 1, section 12, subdivision 5, is amended to read:


Subd. 5.

Payment rates and contract modification; April 1, 2010, to May 31,
2010.

(a) For the period April 1, 2010, to May 31, 2010, general assistance medical
care shall be paid on a fee-for-service basis. Fee-for-service payment rates for services
other than outpatient prescription drugs shall be set at 37 percent of the payment rate in
effect on March 31, 2010.

(b) Outpatient prescription drugs covered under section 256D.03, subdivision 3,
provided on or after April 1, 2010, to May 31, 2010, shall be paid on a fee-for-service
basis according to section 256B.0625, subdivisions 13 to 13g.

(c) If section 256B.055, subdivision 15, and section 256B.056, subdivisions 3 and 4
are implemented effective July 1, 2010:

(1) general assistance medical care must be paid on a fee-for-service basis for the
period June 1 to June 30, 2010;

(2) fee-for-service payment rates for services other than outpatient prescription drugs
must be set at 27 percent of the payment rate in effect on March 31, 2010; and

(3) outpatient prescription drugs considered under section 256D.03, subdivision 3,
must be paid on a fee-for-service basis according to section 256B.0625, subdivisions
13 to 13g.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 33.

Minnesota Statutes 2009 Supplement, section 256L.03, subdivision 5, is
amended to read:


Subd. 5.

Co-payments and coinsurance.

(a) Except as provided in paragraphs (b)
and (c), the MinnesotaCare benefit plan shall include the following co-payments and
coinsurance requirements for all enrollees:

(1) ten percent of the paid charges for inpatient hospital services for adult enrollees,
subject to an annual inpatient out-of-pocket maximum of $1,000 per individual;

(2) $3 per prescription for adult enrollees;

(3) $25 for eyeglasses for adult enrollees;

(4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an
episode of service which is required because of a recipient's symptoms, diagnosis, or
established illness, and which is delivered in an ambulatory setting by a physician or
physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse,
audiologist, optician, or optometrist; and

(5) $6 for nonemergency visits to a hospital-based emergency room for services
provided through December 31, 2010, and $3.50 effective January 1, 2011
.

(b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of
children under the age of 21.

(c) Paragraph (a) does not apply to pregnant women and children under the age of 21.

(d) Paragraph (a), clause (4), does not apply to mental health services.

(e) Adult enrollees with family gross income that exceeds 200 percent of the federal
poverty guidelines or 215 percent of the federal poverty guidelines on or after July 1, 2009,
and who are not pregnant shall be financially responsible for the coinsurance amount, if
applicable, and amounts which exceed the $10,000 inpatient hospital benefit limit.

(f) When a MinnesotaCare enrollee becomes a member of a prepaid health plan,
or changes from one prepaid health plan to another during a calendar year, any charges
submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket
expenses incurred by the enrollee for inpatient services, that were submitted or incurred
prior to enrollment, or prior to the change in health plans, shall be disregarded.

(g) MinnesotaCare reimbursements to fee-for-service providers and payments to
managed care plans or county-based purchasing plans shall not be increased as a result of
the reduction of the co-payments in paragraph (a), clause (5), effective January 1, 2011.

EFFECTIVE DATE.

This section is effective July 1, 2010.

Sec. 34.

Minnesota Statutes 2008, section 256L.11, subdivision 6, is amended to read:


Subd. 6.

Enrollees 18 or older.

Payment by the MinnesotaCare program for
inpatient hospital services provided to MinnesotaCare enrollees eligible under section
256L.04, subdivision 7, or who qualify under section 256L.04, subdivisions 1 and 2,
with family gross income that exceeds 175 percent of the federal poverty guidelines
and who are not pregnant, who are 18 years old or older on the date of admission to the
inpatient hospital must be in accordance with paragraphs (a) and (b). Payment for adults
who are not pregnant and are eligible under section 256L.04, subdivisions 1 and 2, and
whose incomes are equal to or less than 175 percent of the federal poverty guidelines,
shall be as provided for under paragraph (c).

(a) If the medical assistance rate minus any co-payment required under section
256L.03, subdivision 4, is less than or equal to the amount remaining in the enrollee's
benefit limit under section 256L.03, subdivision 3, payment must be the medical
assistance rate minus any co-payment required under section 256L.03, subdivision 4. The
hospital must not seek payment from the enrollee in addition to the co-payment. The
MinnesotaCare payment plus the co-payment must be treated as payment in full.

(b) If the medical assistance rate minus any co-payment required under section
256L.03, subdivision 4, is greater than the amount remaining in the enrollee's benefit limit
under section 256L.03, subdivision 3, payment must be the lesser of:

(1) the amount remaining in the enrollee's benefit limit; or

(2) charges submitted for the inpatient hospital services less any co-payment
established under section 256L.03, subdivision 4.

The hospital may seek payment from the enrollee for the amount by which usual and
customary charges exceed the payment under this paragraph. If payment is reduced under
section 256L.03, subdivision 3, paragraph (b), the hospital may not seek payment from the
enrollee for the amount of the reduction.

(c) For admissions occurring during the period of July 1, 1997, through June 30,
1998, for adults who are not pregnant and are eligible under section 256L.04, subdivisions
1 and 2
, and whose incomes are equal to or less than 175 percent of the federal poverty
guidelines, the commissioner shall pay hospitals directly, up to the medical assistance
payment rate, for inpatient hospital benefits in excess of the $10,000 annual inpatient
benefit limit.
For admissions occurring on or after July 1, 2011, for single adults and
households without children who are eligible under section 256L.04, subdivision 7, the
commissioner shall pay hospitals directly, up to the medical assistance payment rate, for
inpatient hospital benefits up to the $10,000 annual inpatient benefit limit, minus any
co-payment required under section 256L.03, subdivision 5.

Sec. 35.

Minnesota Statutes 2008, section 256L.07, is amended by adding a subdivision
to read:


Subd. 9.

Firefighters; volunteer ambulance attendants.

(a) For purposes of this
subdivision, "qualified individual" means:

(1) a volunteer firefighter with a department as defined in section 299N.01,
subdivision 2, who has passed the probationary period; and

(2) a volunteer ambulance attendant as defined in section 144E.001, subdivision 15.

(b) A qualified individual who documents to the satisfaction of the commissioner
status as a qualified individual by completing and submitting a one-page form developed
by the commissioner is eligible for MinnesotaCare without meeting other eligibility
requirements of this chapter, but must pay premiums equal to the average expected
capitation rate for adults with no children paid under section 256L.12. Individuals eligible
under this subdivision shall receive coverage for the benefit set provided to adults with no
children.

EFFECTIVE DATE.

This section is effective April 1, 2011.

Sec. 36.

Minnesota Statutes 2008, section 256L.12, subdivision 5, is amended to read:


Subd. 5.

Eligibility for other state programs.

MinnesotaCare enrollees who
become eligible for medical assistance or general assistance medical care will remain in
the same managed care plan if the managed care plan has a contract for that population.
Effective January 1, 1998, MinnesotaCare enrollees who were formerly eligible for
general assistance medical care pursuant to section 256D.03, subdivision 3, within six
months of MinnesotaCare enrollment and were enrolled in a prepaid health plan pursuant
to section 256D.03, subdivision 4, paragraph (c), must remain in the same managed care
plan if the managed care plan has a contract for that population. Managed care plans must
participate in the MinnesotaCare and general assistance medical care programs program
under a contract with the Department of Human Services in service areas where they
participate in the medical assistance program.

EFFECTIVE DATE.

This section is effective retroactively from April 1, 2010.

Sec. 37.

Minnesota Statutes 2008, section 256L.12, subdivision 9, is amended to read:


Subd. 9.

Rate setting; performance withholds.

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

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

(c) For services rendered on or after January 1, 2004, the commissioner shall
withhold five percent of managed care plan payments and county-based purchasing
plan payments
under this section pending completion of performance targets. Each
performance target must be quantifiable, objective, measurable, and reasonably attainable,
except in the case of a performance target based on a federal or state law or rule. Criteria
for assessment of each performance target must be outlined in writing prior to the
contract effective date. The managed care plan must demonstrate, to the commissioner's
satisfaction, that the data submitted regarding attainment of the performance target is
accurate. The commissioner shall periodically change the administrative measures used
as performance targets in order to improve plan performance across a broader range of
administrative services. The performance targets must include measurement of plan
efforts to contain spending on health care services and administrative activities. The
commissioner may adopt plan-specific performance targets that take into account factors
affecting only one plan, such as characteristics of the plan's enrollee population. The
withheld funds must be returned no sooner than July 1 and no later than July 31 of the
following calendar year if performance targets in the contract are achieved. A managed
care plan or a county-based purchasing plan under section 256B.692 may include as
admitted assets under section 62D.044 any amount withheld under this paragraph that is
reasonably expected to be returned.

(c) For services rendered on or after January 1, 2011, the commissioner shall
withhold an additional three percent of managed care plan or county-based purchasing
plan payments under this section. The withheld funds must be returned no sooner than
July 1 and no later than July 31 of the following calendar year. The return of the withhold
under this paragraph is not subject to the requirements of paragraph (b).

(d) Effective for services rendered on or after January 1, 2011, the commissioner
shall include as part of the performance targets described in paragraph (b) a reduction in
the plan's emergency room utilization rate for state health care program enrollees by a
measurable rate of five percent from the plan's utilization rate for the previous calendar
year.

The withheld funds must be returned no sooner than July 1 and no later than July 31
of the following calendar year if the managed care plan demonstrates to the satisfaction of
the commissioner that a reduction in the utilization rate was achieved.

The withhold described in this paragraph shall continue for each consecutive
contract period until the plan's emergency room utilization rate for state health care
program enrollees is reduced by 25 percent of the plan's emergency room utilization rate
for state health care program enrollees for calendar year 2009. Hospitals shall cooperate
with the health plans in meeting this performance target and shall accept payment
withholds that may be returned to the hospitals if the performance target is achieved. The
commissioner shall structure the withhold so that the commissioner returns a portion of
the withheld funds in amounts commensurate with achieved reductions in utilization less
than the targeted amount. The withhold described in this paragraph does not apply to
county-based purchasing plans.

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

EFFECTIVE DATE.

This section is effective July 1, 2010.

Sec. 38.

Laws 2009, chapter 79, article 5, section 75, subdivision 1, is amended to read:


Subdivision 1.

Medical assistance coverage.

The commissioner of human services
shall establish a demonstration project to provide additional medical assistance coverage
for a maximum of 200 American Indian children in Minneapolis, St. Paul, and Duluth
who are burdened by health disparities associated with the cumulative health impact
of toxic environmental exposures. Under this demonstration project, the additional
medical assistance coverage for this population must include, but is not limited to, home
environmental assessments for triggers of asthma, and in-home asthma education on the
proper medical management of asthma by a certified asthma educator or public health
nurse with asthma management training, and must be limited to two visits per child. The
home visit payment rates must be based on a rate commensurate with a first-time visit rate
and follow-up visit rate. Coverage also includes
the following durable medical equipment:
high efficiency particulate air (HEPA) cleaners, HEPA vacuum cleaners, allergy bed and
pillow encasements, high filtration filters for forced air gas furnaces, and dehumidifiers
with medical tubing to connect the appliance to a floor drain, if the listed item is medically
necessary
useful to reduce asthma symptoms. Provision of these items of durable medical
equipment
must be preceded by a home environmental assessment for triggers of asthma
and in-home asthma education on the proper medical management of asthma by a Certified
Asthma Educator or public health nurse with asthma management training.

Sec. 39.

Laws 2009, chapter 79, article 5, section 78, subdivision 5, is amended to read:


Subd. 5.

Expiration.

This section, with the exception of subdivision 4, expires
December 31, 2010 August 31, 2011. Subdivision 4 expires February 28, 2012.

Sec. 40.

Laws 2010, chapter 200, article 1, section 12, subdivision 6, is amended to
read:


Subd. 6.

Coordinated care delivery systems.

(a) Effective June 1, 2010, the
commissioner shall contract with hospitals or groups of hospitals that qualify under
paragraph (b) and agree to deliver services according to this subdivision. Contracting
hospitals shall develop and implement a coordinated care delivery system to provide
health care services to individuals who are eligible for general assistance medical care
under this section and who either choose to receive services through the coordinated
care delivery system or who are enrolled by the commissioner under paragraph (c). The
health care services provided by the system must include: (1) the services described in
subdivision 4 with the exception of outpatient prescription drug coverage but shall include
drugs administered in a clinic or other outpatient setting; or (2) a set of comprehensive
and medically necessary health services that the recipients might reasonably require to be
maintained in good health and that has been approved by the commissioner, including at a
minimum, but not limited to, emergency care, medical transportation services, inpatient
hospital and physician care, outpatient health services, preventive health services, mental
health services, and prescription drugs administered in a clinic or other outpatient setting.
Outpatient prescription drug coverage is covered on a fee-for-service basis in accordance
with section 256D.03, subdivision 3, and funded under subdivision 9. A hospital
establishing a coordinated care delivery system under this subdivision must ensure that the
requirements of this subdivision are met.

(b) A hospital or group of hospitals may contract with the commissioner to develop
and implement a coordinated care delivery system as follows:

(1) effective June 1, 2010, a hospital qualifies under this subdivision if: (i) during
calendar year 2008, it received fee-for-service payments for services to general assistance
medical care recipients (A) equal to or greater than $1,500,000, or (B) equal to or greater
than 1.3 percent of net patient revenue; or (ii) a contract with the hospital is necessary to
provide geographic access or to ensure that at least 80 percent of enrollees have access to
a coordinated care delivery system; and

(2) effective December 1, 2010, a Minnesota hospital not qualified under clause
(1) may contract with the commissioner under this subdivision if it agrees to satisfy the
requirements of this subdivision.

Participation by hospitals shall become effective quarterly on June 1, September 1,
December 1, or March 1. Hospital participation is effective for a period of 12 months and
may be renewed for successive 12-month periods.

(c) Applicants and recipients may enroll in any available coordinated care delivery
system statewide. If more than one coordinated care delivery system is available, the
applicant or recipient shall be allowed to choose among the systems. The commissioner
may assign an applicant or recipient to a coordinated care delivery system if no choice
is made by the applicant or recipient. The commissioner shall consider a recipient's zip
code, city of residence, county of residence, or distance from a participating coordinated
care delivery system when determining default assignment. An applicant or recipient
may decline enrollment in a coordinated care delivery system. Upon enrollment into a
coordinated care delivery system, the recipient must agree to receive all nonemergency
services through the coordinated care delivery system. Enrollment in a coordinated care
delivery system is for six months and may be renewed for additional six-month periods,
except that initial enrollment is for six months or until the end of a recipient's period
of general assistance medical care eligibility, whichever occurs first. A recipient who
continues to meet the eligibility requirements of this section is not eligible to enroll in
MinnesotaCare during a period of enrollment in a coordinated care delivery system.
From June 1, 2010, to November 30, 2010 February 28, 2011, applicants and recipients
not enrolled in a coordinated care delivery system may seek services from a hospital
eligible for reimbursement under the temporary uncompensated care pool established
under subdivision 8. After November 30, 2010 February 28, 2011, services are available
only through a coordinated care delivery system.

(d) The hospital may contract and coordinate with providers and clinics for the
delivery of services and shall contract with essential community providers as defined
under section 62Q.19, subdivision 1, paragraph (a), clauses (1) and (2), to the extent
practicable. If a provider or clinic contracts with a hospital to provide services through the
coordinated care delivery system, the provider may not refuse to provide services to any
recipient enrolled in the system, and payment for services shall be negotiated with the
hospital and paid by the hospital from the system's allocation under subdivision 7.

(e) A coordinated care delivery system must:

(1) provide the covered services required under paragraph (a) to recipients enrolled
in the coordinated care delivery system, and comply with the requirements of subdivision
4, paragraphs (b) to (g);

(2) establish a process to monitor enrollment and ensure the quality of care provided;
and

(3) in cooperation with counties, coordinate the delivery of health care services with
existing homeless prevention, supportive housing, and rent subsidy programs and funding
administered by the Minnesota Housing Finance Agency under chapter 462A; and

(4) adopt innovative and cost-effective methods of care delivery and coordination,
which may include the use of allied health professionals, telemedicine, patient educators,
care coordinators, and community health workers.

(f) The hospital may require a recipient to designate a primary care provider or
a primary care clinic. The hospital may limit the delivery of services to a network of
providers who have contracted with the hospital to deliver services in accordance with
this subdivision, and require a recipient to seek services only within this network. The
hospital may also require a referral to a provider before the service is eligible for payment.
A coordinated care delivery system is not required to provide payment to a provider who
is not employed by or under contract with the system for services provided to a recipient
enrolled in the system, except in cases of an emergency. For purposes of this section,
emergency services are defined in accordance with Code of Federal Regulations, title
42, section 438.114 (a).

(g) A recipient enrolled in a coordinated care delivery system has the right to appeal
to the commissioner according to section 256.045.

(h) The state shall not be liable for the payment of any cost or obligation incurred
by the coordinated care delivery system.

(i) The hospital must provide the commissioner with data necessary for assessing
enrollment, quality of care, cost, and utilization of services. Each hospital must provide,
on a quarterly basis on a form prescribed by the commissioner for each recipient served by
the coordinated care delivery system, the services provided, the cost of services provided,
and the actual payment amount for the services provided and any other information the
commissioner deems necessary to claim federal Medicaid match. The commissioner must
provide this data to the legislature on a quarterly basis.

(j) Effective June 1, 2010, the provisions of section 256.9695, subdivision 2,
paragraph (b), do not apply to general assistance medical care provided under this section.

(k) Notwithstanding any other provision in this section to the contrary, for
participation beginning September 1, 2010, the commissioner shall offer the same contract
terms related to an enrollment threshold formula and financial liability protections to a
hospital or group of hospitals qualified under this subdivision to develop and implement
a coordinated care delivery system as those contained in the coordinated care delivery
system contracts effective June 1, 2010.

(l) If section 256B.055, subdivision 15, and section 256B.056, subdivisions 3 and 4
are implemented effective July 1, 2010, this subdivision must not be implemented.

Sec. 41.

Laws 2010, chapter 200, article 1, section 12, subdivision 7, is amended to
read:


Subd. 7.

Payments; rate setting for the hospital coordinated care delivery
system.

(a) Effective for general assistance medical care services, with the exception
of outpatient prescription drug coverage, provided on or after June 1, 2010, through a
coordinated care delivery system, the commissioner shall allocate the annual appropriation
for the coordinated care delivery system to hospitals participating under subdivision
6 in quarterly payments, beginning on the first scheduled warrant on or after June 1,
2010. The payment shall be allocated among all hospitals qualified to participate on the
allocation date. Each hospital or group of hospitals shall receive a pro rata share of the
allocation based on the hospital's or group of hospitals' calendar year 2008 payments for
general assistance medical care services, provided that, for the purposes of this allocation,
payments to Hennepin County Medical Center, Regions Hospital, Saint Mary's Medical
Center, and University of Minnesota Medical Center, Fairview, shall be weighted at 110
percent of the actual amount.
as follows:

(1) each hospital or group of hospitals shall be allocated an initial amount based on
the hospital's or group of hospitals' pro rata share of calendar year 2008 payments for
general assistance medical care services to all participating hospitals;

(2) the initial allocations to Hennepin County Medical Center; Regions Hospital;
Saint Mary's Medical Center; and the University of Minnesota Medical Center, Fairview,
shall be increased to 110 percent of the value determined in clause (1);

(3) the initial allocation to hospitals not listed in clause (2) shall be reduced a pro rata
amount in order to keep the allocations within the limit of available appropriations; and

(4) the amounts determined under clauses (1) to (3) shall be allocated to participating
hospitals.

The commissioner may prospectively reallocate payments to participating hospitals on
a biannual basis to ensure that final allocations reflect actual coordinated care delivery
system enrollment. The 2008 base year shall be updated by one calendar year each June 1,
beginning June 1, 2011.

(b) Beginning June 1, 2010, and every quarter beginning in June thereafter, the
commissioner shall make one-third of the quarterly payment in June and the remaining
two-thirds of the quarterly payment in July to each participating hospital or group of
hospitals.

(c) In order to be reimbursed under this section, nonhospital providers of health
care services shall contract with one or more hospitals described in paragraph (a) to
provide services to general assistance medical care recipients through the coordinated care
delivery system established by the hospital. The hospital shall reimburse bills submitted
by nonhospital providers participating under this paragraph at a rate negotiated between
the hospital and the nonhospital provider.

(c) (d) The commissioner shall apply for federal matching funds under section
256B.199, paragraphs (a) to (d), for expenditures under this subdivision.

(d) (e) Outpatient prescription drug coverage is provided in accordance with section
256D.03, subdivision 3, and paid on a fee-for-service basis under subdivision 9.

EFFECTIVE DATE.

This section is effective retroactively from April 1, 2010.

Sec. 42.

Laws 2010, chapter 200, article 1, section 12, subdivision 8, is amended to
read:


Subd. 8.

Temporary uncompensated care pool.

(a) The commissioner shall
establish a temporary uncompensated care pool, effective June 1, 2010. Payments from
the pool must be distributed, within the limits of the available appropriation, to hospitals
that are not part of a coordinated care delivery system established under subdivision 6.

(b) Hospitals seeking reimbursement from this pool must submit an invoice to
the commissioner in a form prescribed by the commissioner for payment for services
provided to an applicant or recipient not enrolled in a coordinated care delivery system. A
payment amount, as calculated under current law, must be determined, but not paid, for
each admission of or service provided to a general assistance medical care recipient on or
after June 1, 2010, to November 30, 2010 February 28, 2011.

(c) The aggregated payment amounts for each hospital must be calculated as a
percentage of the total calculated amount for all hospitals.

(d) Distributions from the uncompensated care pool for each hospital must be
determined by multiplying the factor in paragraph (c) by the amount of money in the
uncompensated care pool that is available for the six-month period.

(e) The commissioner shall apply for federal matching funds under section
256B.199, paragraphs (a) to (d), for expenditures under this subdivision.

(f) Outpatient prescription drugs are not eligible for payment under this subdivision.

Sec. 43.

Laws 2010, chapter 200, article 1, section 16, is amended by adding an
effective date to read:


EFFECTIVE DATE.

This section is effective June 1, 2010.

Sec. 44.

Laws 2010, chapter 200, article 1, section 21, is amended to read:


Sec. 21. REPEALER.

(a) Minnesota Statutes 2008, sections 256.742; 256.979, subdivision 8; and 256D.03,
subdivision 9, are repealed effective April 1, 2010.

(b) Minnesota Statutes 2009 Supplement, section 256D.03, subdivision 4, is repealed
effective April June 1, 2010.

(c) Minnesota Statutes 2008, section 256B.195, subdivisions 4 and 5, are repealed
effective for federal fiscal year 2010.

(d) Minnesota Statutes 2009 Supplement, section 256B.195, subdivisions 1, 2, and
3, are repealed effective for federal fiscal year 2010.

(e) Minnesota Statutes 2008, sections 256L.07, subdivision 6; 256L.15, subdivision
4; and 256L.17, subdivision 7, are repealed January 1, 2011 July 1, 2010.

EFFECTIVE DATE.

This section is effective retroactively from April 1, 2010.

Sec. 45. PREPAID HEALTH PLAN RATES.

In negotiating the prepaid health plan contract rates for services rendered on or
after January 1, 2011, the commissioner of human services shall take into consideration
and the rates shall reflect the anticipated savings in the medical assistance program due
to extending medical assistance coverage to services provided in licensed birth centers,
the anticipated use of these services within the medical assistance population, and the
reduced medical assistance costs associated with the use of birth centers for normal,
low-risk deliveries.

EFFECTIVE DATE.

This section is effective July 1, 2010.

Sec. 46. STATE PLAN AMENDMENT; FEDERAL APPROVAL.

(a) The commissioner of human services shall submit a Medicaid state plan
amendment to receive federal fund participation for adults without children whose income
is equal to or less than 75 percent of federal poverty guidelines in accordance with the
Patient Protection and Affordable Care Act, Public Law 111-148, or the Health Care and
Education Reconciliation Act of 2010, Public Law 111-152. The effective date of the
state plan amendment shall be July 1, 2010.

(b) The commissioner of human services shall submit a federal waiver or an
amendment to the MinnesotaCare health care reform waiver to include in the waiver
single adults and households without children.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 47. REPEALER.

(a) Minnesota Statutes 2008, section 256D.03, subdivisions 3, 3a, 5, 6, 7, and 8, are
repealed contingently upon implementation of Minnesota Statutes, sections 256B.055,
subdivision 15, and 256B.056, subdivisions 3 and 4.

(b) Laws 2010, chapter 200, article 1, sections 12, subdivisions 1, 2, 3, and 5; 18;
and 19,
are repealed contingently upon implementation of Minnesota Statutes, sections
256B.055, subdivision 15, and 256B.056, subdivisions 3 and 4.

(c) Laws 2010, chapter 200, article 1, section 12, subdivisions 4, 6, 7, 8, 9, and 10,
are repealed contingently upon implementation of Minnesota Statutes, sections 256B.055,
subdivision 15, and 256B.056, subdivisions 3 and 4.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 48. EFFECTIVE DATE OF EARLY ENROLLMENT IN MEDICAL
ASSISTANCE.

(a) In order for sections 5 to 7 and 20 to be effective, the governor in office at the
time of enactment of this section must direct, by executive order issued at any time
during that governor's term, the commissioner of human services to implement them,
notwithstanding any other effective dates for those sections.

(b) If the governor in office at the time of enactment of this section does not issue an
executive order under paragraph (a) directing implementation, the succeeding governor,
from the start of that governor's term until January 15, 2011, may by executive order direct
the commissioner of human services to implement sections 5 to 7 and 20.

(c) If a governor does not issue an executive order under paragraph (a) or (b),
sections 5 to 7 and 20 are not effective and do not have the force of law.

(d) In making the determinations under this section whether to issue an executive
order under paragraph (a) or (b), the governor shall consider the cost of implementation
and the availability of funds in the state treasury, the potential for increased federal
funding, the effect of implementation on access to health care services in the state, and
alternative approaches that may be available to pursue policy goals.

(e) If this section is determined by a court of competent jurisdiction to be
unconstitutional, sections 5 to 7 and 20 are not effective and do not have the force of law.

EFFECTIVE DATE.

This section is effective the day following final enactment.

ARTICLE 17

CONTINUING CARE

Section 1.

Minnesota Statutes 2008, section 144D.03, subdivision 2, is amended to
read:


Subd. 2.

Registration information.

The establishment shall provide the following
information to the commissioner in order to be registered:

(1) the business name, street address, and mailing address of the establishment;

(2) the name and mailing address of the owner or owners of the establishment and, if
the owner or owners are not natural persons, identification of the type of business entity
of the owner or owners, and the names and addresses of the officers and members of the
governing body, or comparable persons for partnerships, limited liability corporations, or
other types of business organizations of the owner or owners;

(3) the name and mailing address of the managing agent, whether through
management agreement or lease agreement, of the establishment, if different from the
owner or owners, and the name of the on-site manager, if any;

(4) verification that the establishment has entered into a housing with services
contract, as required in section 144D.04, with each resident or resident's representative;

(5) verification that the establishment is complying with the requirements of section
325F.72, if applicable;

(6) the name and address of at least one natural person who shall be responsible
for dealing with the commissioner on all matters provided for in sections 144D.01 to
144D.06, and on whom personal service of all notices and orders shall be made, and who
shall be authorized to accept service on behalf of the owner or owners and the managing
agent, if any; and

(7) the signature of the authorized representative of the owner or owners or, if
the owner or owners are not natural persons, signatures of at least two authorized
representatives of each owner, one of which shall be an officer of the owner; and

(8) whether services are included in the base rate to be paid by the resident.

Personal service on the person identified under clause (6) by the owner or owners in
the registration shall be considered service on the owner or owners, and it shall not be a
defense to any action that personal service was not made on each individual or entity. The
designation of one or more individuals under this subdivision shall not affect the legal
responsibility of the owner or owners under sections 144D.01 to 144D.06.

Sec. 2.

Minnesota Statutes 2008, section 144D.04, subdivision 2, is amended to read:


Subd. 2.

Contents of contract.

A housing with services contract, which need not be
entitled as such to comply with this section, shall include at least the following elements
in itself or through supporting documents or attachments:

(1) the name, street address, and mailing address of the establishment;

(2) the name and mailing address of the owner or owners of the establishment and, if
the owner or owners is not a natural person, identification of the type of business entity
of the owner or owners;

(3) the name and mailing address of the managing agent, through management
agreement or lease agreement, of the establishment, if different from the owner or owners;

(4) the name and address of at least one natural person who is authorized to accept
service of process on behalf of the owner or owners and managing agent;

(5) a statement describing the registration and licensure status of the establishment
and any provider providing health-related or supportive services under an arrangement
with the establishment;

(6) the term of the contract;

(7) a description of the services to be provided to the resident in the base rate to be
paid by resident, including a delineation of the portion of the base rate that constitutes rent
and a delineation of charges for each service included in the base rate
;

(8) a description of any additional services, including home care services, available
for an additional fee from the establishment directly or through arrangements with the
establishment, and a schedule of fees charged for these services;

(9) a description of the process through which the contract may be modified,
amended, or terminated;

(10) a description of the establishment's complaint resolution process available
to residents including the toll-free complaint line for the Office of Ombudsman for
Long-Term Care;

(11) the resident's designated representative, if any;

(12) the establishment's referral procedures if the contract is terminated;

(13) requirements of residency used by the establishment to determine who may
reside or continue to reside in the housing with services establishment;

(14) billing and payment procedures and requirements;

(15) a statement regarding the ability of residents to receive services from service
providers with whom the establishment does not have an arrangement;

(16) a statement regarding the availability of public funds for payment for residence
or services in the establishment; and

(17) a statement regarding the availability of and contact information for
long-term care consultation services under section 256B.0911 in the county in which the
establishment is located.

Sec. 3.

[144D.08] UNIFORM CONSUMER INFORMATION GUIDE.

All housing with services establishments shall make available to all prospective
and current residents information consistent with the uniform format and the required
components adopted by the commissioner under section 144G.06.

Sec. 4.

[144D.09] TERMINATION OF LEASE.

The housing with services establishment shall include with notice of termination
of lease information about how to contact the ombudsman for long-term care, including
the address and phone number along with a statement of how to request problem-solving
assistance.

Sec. 5.

Minnesota Statutes 2008, section 144G.06, is amended to read:


144G.06 UNIFORM CONSUMER INFORMATION GUIDE.

(a) The commissioner of health shall establish an advisory committee consisting
of representatives of consumers, providers, county and state officials, and other
groups the commissioner considers appropriate. The advisory committee shall present
recommendations to the commissioner on:

(1) a format for a guide to be used by individual providers of assisted living, as
defined in section 144G.01, that includes information about services offered by that
provider, which services may be covered by Medicare, service costs, and other relevant
provider-specific information, as well as a statement of philosophy and values associated
with assisted living, presented in uniform categories that facilitate comparison with guides
issued by other providers; and

(2) requirements for informing assisted living clients, as defined in section 144G.01,
of their applicable legal rights.

(b) The commissioner, after reviewing the recommendations of the advisory
committee, shall adopt a uniform format for the guide to be used by individual providers,
and the required components of materials to be used by providers to inform assisted
living clients of their legal rights, and shall make the uniform format and the required
components available to assisted living providers.

Sec. 6.

Minnesota Statutes 2009 Supplement, section 252.27, subdivision 2a, is
amended to read:


Subd. 2a.

Contribution amount.

(a) The natural or adoptive parents of a minor
child, including a child determined eligible for medical assistance without consideration of
parental income, must contribute to the cost of services used by making monthly payments
on a sliding scale based on income, unless the child is married or has been married,
parental rights have been terminated, or the child's adoption is subsidized according to
section 259.67 or through title IV-E of the Social Security Act. The parental contribution
is a partial or full payment for medical services provided for diagnostic, therapeutic,
curing, treating, mitigating, rehabilitation, maintenance, and personal care services as
defined in United States Code, title 26, section 213, needed by the child with a chronic
illness or disability.

(b) For households with adjusted gross income equal to or greater than 100 percent
of federal poverty guidelines, the parental contribution shall be computed by applying the
following schedule of rates to the adjusted gross income of the natural or adoptive parents:

(1) if the adjusted gross income is equal to or greater than 100 percent of federal
poverty guidelines and less than 175 percent of federal poverty guidelines, the parental
contribution is $4 per month;

(2) if the adjusted gross income is equal to or greater than 175 percent of federal
poverty guidelines and less than or equal to 545 percent of federal poverty guidelines,
the parental contribution shall be determined using a sliding fee scale established by the
commissioner of human services which begins at one percent of adjusted gross income
at 175 percent of federal poverty guidelines and increases to 7.5 percent of adjusted
gross income for those with adjusted gross income up to 545 percent of federal poverty
guidelines;

(3) if the adjusted gross income is greater than 545 percent of federal poverty
guidelines and less than 675 percent of federal poverty guidelines, the parental
contribution shall be 7.5 percent of adjusted gross income;

(4) if the adjusted gross income is equal to or greater than 675 percent of federal
poverty guidelines and less than 975 percent of federal poverty guidelines, the parental
contribution shall be determined using a sliding fee scale established by the commissioner
of human services which begins at 7.5 percent of adjusted gross income at 675 percent of
federal poverty guidelines and increases to ten percent of adjusted gross income for those
with adjusted gross income up to 975 percent of federal poverty guidelines; and

(5) if the adjusted gross income is equal to or greater than 975 percent of federal
poverty guidelines, the parental contribution shall be 12.5 percent of adjusted gross
income.

If the child lives with the parent, the annual adjusted gross income is reduced by
$2,400 prior to calculating the parental contribution. If the child resides in an institution
specified in section 256B.35, the parent is responsible for the personal needs allowance
specified under that section in addition to the parental contribution determined under this
section. The parental contribution is reduced by any amount required to be paid directly to
the child pursuant to a court order, but only if actually paid.

(c) The household size to be used in determining the amount of contribution under
paragraph (b) includes natural and adoptive parents and their dependents, including the
child receiving services. Adjustments in the contribution amount due to annual changes
in the federal poverty guidelines shall be implemented on the first day of July following
publication of the changes.

(d) For purposes of paragraph (b), "income" means the adjusted gross income of the
natural or adoptive parents determined according to the previous year's federal tax form,
except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds
have been used to purchase a home shall not be counted as income.

(e) The contribution shall be explained in writing to the parents at the time eligibility
for services is being determined. The contribution shall be made on a monthly basis
effective with the first month in which the child receives services. Annually upon
redetermination or at termination of eligibility, if the contribution exceeded the cost of
services provided, the local agency or the state shall reimburse that excess amount to
the parents, either by direct reimbursement if the parent is no longer required to pay a
contribution, or by a reduction in or waiver of parental fees until the excess amount is
exhausted. All reimbursements must include a notice that the amount reimbursed may be
taxable income if the parent paid for the parent's fees through an employer's health care
flexible spending account under the Internal Revenue Code, section 125, and that the
parent is responsible for paying the taxes owed on the amount reimbursed.

(f) The monthly contribution amount must be reviewed at least every 12 months;
when there is a change in household size; and when there is a loss of or gain in income
from one month to another in excess of ten percent. The local agency shall mail a written
notice 30 days in advance of the effective date of a change in the contribution amount.
A decrease in the contribution amount is effective in the month that the parent verifies a
reduction in income or change in household size.

(g) Parents of a minor child who do not live with each other shall each pay the
contribution required under paragraph (a). An amount equal to the annual court-ordered
child support payment actually paid on behalf of the child receiving services shall be
deducted from the adjusted gross income of the parent making the payment prior to
calculating the parental contribution under paragraph (b).

(h) The contribution under paragraph (b) shall be increased by an additional five
percent if the local agency determines that insurance coverage is available but not
obtained for the child. For purposes of this section, "available" means the insurance is a
benefit of employment for a family member at an annual cost of no more than five percent
of the family's annual income. For purposes of this section, "insurance" means health
and accident insurance coverage, enrollment in a nonprofit health service plan, health
maintenance organization, self-insured plan, or preferred provider organization.

Parents who have more than one child receiving services shall not be required
to pay more than the amount for the child with the highest expenditures. There shall
be no resource contribution from the parents. The parent shall not be required to pay
a contribution in excess of the cost of the services provided to the child, not counting
payments made to school districts for education-related services. Notice of an increase in
fee payment must be given at least 30 days before the increased fee is due.

(i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if,
in the 12 months prior to July 1:

(1) the parent applied for insurance for the child;

(2) the insurer denied insurance;

(3) the parents submitted a complaint or appeal, in writing to the insurer, submitted
a complaint or appeal, in writing, to the commissioner of health or the commissioner of
commerce, or litigated the complaint or appeal; and

(4) as a result of the dispute, the insurer reversed its decision and granted insurance.

For purposes of this section, "insurance" has the meaning given in paragraph (h).

A parent who has requested a reduction in the contribution amount under this
paragraph shall submit proof in the form and manner prescribed by the commissioner or
county agency, including, but not limited to, the insurer's denial of insurance, the written
letter or complaint of the parents, court documents, and the written response of the insurer
approving insurance. The determinations of the commissioner or county agency under this
paragraph are not rules subject to chapter 14.

(j) Notwithstanding paragraph (b), for the period from July 1, 2010, to June 30,
2013, the parental contribution shall be computed by applying the following contribution
schedule to the adjusted gross income of the natural or adoptive parents:

(1) if the adjusted gross income is equal to or greater than 100 percent of federal
poverty guidelines and less than 175 percent of federal poverty guidelines, the parental
contribution is $4 per month;

(2) if the adjusted gross income is equal to or greater than 175 percent of federal
poverty guidelines and less than or equal to 525 percent of federal poverty guidelines,
the parental contribution shall be determined using a sliding fee scale established by the
commissioner of human services which begins at one percent of adjusted gross income
at 175 percent of federal poverty guidelines and increases to eight percent of adjusted
gross income for those with adjusted gross income up to 525 percent of federal poverty
guidelines;

(3) if the adjusted gross income is greater than 525 percent of federal poverty
guidelines and less than 675 percent of federal poverty guidelines, the parental contribution
shall be 9.5 percent of adjusted gross income;

(4) if the adjusted gross income is equal to or greater than 675 percent of federal
poverty guidelines and less than 900 percent of federal poverty guidelines, the parental
contribution shall be determined using a sliding fee scale established by the commissioner
of human services which begins at 9.5 percent of adjusted gross income at 675 percent of
federal poverty guidelines and increases to 12 percent of adjusted gross income for those
with adjusted gross income up to 900 percent of federal poverty guidelines; and

(5) if the adjusted gross income is equal to or greater than 900 percent of federal
poverty guidelines, the parental contribution shall be 13.5 percent of adjusted gross
income. If the child lives with the parent, the annual adjusted gross income is reduced by
$2,400 prior to calculating the parental contribution. If the child resides in an institution
specified in section 256B.35, the parent is responsible for the personal needs allowance
specified under that section in addition to the parental contribution determined under this
section. The parental contribution is reduced by any amount required to be paid directly to
the child pursuant to a court order, but only if actually paid.

Sec. 7.

[256.4825] REPORT REGARDING PROGRAMS AND SERVICES FOR
PEOPLE WITH DISABILITIES.

The Minnesota State Council on Disability, the Minnesota Consortium for Citizens
with Disabilities, and the Arc of Minnesota may submit an annual report by January 15 of
each year, beginning in 2012, to the chairs and ranking minority members of the legislative
committees with jurisdiction over programs serving people with disabilities as provided in
this section. The report must describe the existing state policies and goals for programs
serving people with disabilities including, but not limited to, programs for employment,
transportation, housing, education, quality assurance, consumer direction, physical and
programmatic access, and health. The report must provide data and measurements to
assess the extent to which the policies and goals are being met. The commissioner of
human services and the commissioners of other state agencies administering programs for
people with disabilities shall cooperate with the Minnesota State Council on Disability,
the Minnesota Consortium for Citizens with Disabilities, and the Arc of Minnesota and
provide those organizations with existing published information and reports that will assist
in the preparation of the report.

Sec. 8.

Minnesota Statutes 2009 Supplement, section 256.975, subdivision 7, is
amended to read:


Subd. 7.

Consumer information and assistance and long-term care options
counseling; Senior LinkAge Line.

(a) The Minnesota Board on Aging shall operate a
statewide service to aid older Minnesotans and their families in making informed choices
about long-term care options and health care benefits. Language services to persons with
limited English language skills may be made available. The service, known as Senior
LinkAge Line, must be available during business hours through a statewide toll-free
number and must also be available through the Internet.

(b) The service must provide long-term care options counseling by assisting older
adults, caregivers, and providers in accessing information and options counseling about
choices in long-term care services that are purchased through private providers or available
through public options. The service must:

(1) develop a comprehensive database that includes detailed listings in both
consumer- and provider-oriented formats;

(2) make the database accessible on the Internet and through other telecommunication
and media-related tools;

(3) link callers to interactive long-term care screening tools and make these tools
available through the Internet by integrating the tools with the database;

(4) develop community education materials with a focus on planning for long-term
care and evaluating independent living, housing, and service options;

(5) conduct an outreach campaign to assist older adults and their caregivers in
finding information on the Internet and through other means of communication;

(6) implement a messaging system for overflow callers and respond to these callers
by the next business day;

(7) link callers with county human services and other providers to receive more
in-depth assistance and consultation related to long-term care options;

(8) link callers with quality profiles for nursing facilities and other providers
developed by the commissioner of health;

(9) incorporate information about the availability of housing options, as well as
registered housing
with services and consumer rights within the MinnesotaHelp.info
network long-term care database to facilitate consumer comparison of services and costs
among housing with services establishments and with other in-home services and to
support financial self-sufficiency as long as possible. Housing with services establishments
and their arranged home care providers shall provide information to the commissioner of
human services that is consistent with information required by the commissioner of health
under section 144G.06, the Uniform Consumer Information Guide
that will facilitate price
comparisons, including delineation of charges for rent and for services available. The
commissioners of health and human services shall align the data elements required by
section 144G.06, the Uniform Consumer Information Guide, and this section to provide
consumers standardized information and ease of comparison of long-term care options
.
The commissioner of human services shall provide the data to the Minnesota Board on
Aging for inclusion in the MinnesotaHelp.info network long-term care database;

(10) provide long-term care options counseling. Long-term care options counselors
shall:

(i) for individuals not eligible for case management under a public program or public
funding source, provide interactive decision support under which consumers, family
members, or other helpers are supported in their deliberations to determine appropriate
long-term care choices in the context of the consumer's needs, preferences, values, and
individual circumstances, including implementing a community support plan;

(ii) provide Web-based educational information and collateral written materials to
familiarize consumers, family members, or other helpers with the long-term care basics,
issues to be considered, and the range of options available in the community;

(iii) provide long-term care futures planning, which means providing assistance to
individuals who anticipate having long-term care needs to develop a plan for the more
distant future; and

(iv) provide expertise in benefits and financing options for long-term care, including
Medicare, long-term care insurance, tax or employer-based incentives, reverse mortgages,
private pay options, and ways to access low or no-cost services or benefits through
volunteer-based or charitable programs; and

(11) using risk management and support planning protocols, provide long-term care
options counseling to current residents of nursing homes deemed appropriate for discharge
by the commissioner. In order to meet this requirement, the commissioner shall provide
designated Senior LinkAge Line contact centers with a list of nursing home residents
appropriate for discharge planning via a secure Web portal. Senior LinkAge Line shall
provide these residents, if they indicate a preference to receive long-term care options
counseling, with initial assessment, review of risk factors, independent living support
consultation, or referral to:

(i) long-term care consultation services under section 256B.0911;

(ii) designated care coordinators of contracted entities under section 256B.035 for
persons who are enrolled in a managed care plan; or

(iii) the long-term care consultation team for those who are appropriate for relocation
service coordination due to high-risk factors or psychological or physical disability.

Sec. 9.

Minnesota Statutes 2008, section 256B.057, subdivision 9, is amended to read:


Subd. 9.

Employed persons with disabilities.

(a) Medical assistance may be paid
for a person who is employed and who:

(1) but for excess earnings or assets, meets the definition of disabled under the
supplemental security income program;

(2) is at least 16 but less than 65 years of age;

(3) meets the asset limits in paragraph (c); and

(4) effective November 1, 2003, pays a premium and other obligations under
paragraph (e).

Any spousal income or assets shall be disregarded for purposes of eligibility and premium
determinations.

(b) After the month of enrollment, a person enrolled in medical assistance under
this subdivision who:

(1) is temporarily unable to work and without receipt of earned income due to a
medical condition, as verified by a physician, may retain eligibility for up to four calendar
months; or

(2) effective January 1, 2004, loses employment for reasons not attributable to the
enrollee, may retain eligibility for up to four consecutive months after the month of job
loss. To receive a four-month extension, enrollees must verify the medical condition or
provide notification of job loss. All other eligibility requirements must be met and the
enrollee must pay all calculated premium costs for continued eligibility.

(c) For purposes of determining eligibility under this subdivision, a person's assets
must not exceed $20,000, excluding:

(1) all assets excluded under section 256B.056;

(2) retirement accounts, including individual accounts, 401(k) plans, 403(b) plans,
Keogh plans, and pension plans; and

(3) medical expense accounts set up through the person's employer.

(d)(1) Effective January 1, 2004, for purposes of eligibility, there will be a $65
earned income disregard. To be eligible, a person applying for medical assistance under
this subdivision must have earned income above the disregard level.

(2) Effective January 1, 2004, to be considered earned income, Medicare, Social
Security, and applicable state and federal income taxes must be withheld. To be eligible,
a person must document earned income tax withholding.

(e)(1) A person whose earned and unearned income is equal to or greater than 100
percent of federal poverty guidelines for the applicable family size must pay a premium
to be eligible for medical assistance under this subdivision. The premium shall be based
on the person's gross earned and unearned income and the applicable family size using a
sliding fee scale established by the commissioner, which begins at one percent of income
at 100 percent of the federal poverty guidelines and increases to 7.5 percent of income
for those with incomes at or above 300 percent of the federal poverty guidelines. Annual
adjustments in the premium schedule based upon changes in the federal poverty guidelines
shall be effective for premiums due in July of each year.

(2) Effective January 1, 2004, all enrollees must pay a premium to be eligible for
medical assistance under this subdivision. An enrollee shall pay the greater of a $35
premium or the premium calculated in clause (1).

(3) Effective November 1, 2003, all enrollees who receive unearned income must
pay one-half of one percent of unearned income in addition to the premium amount.

(4) Effective November 1, 2003, for enrollees whose income does not exceed 200
percent of the federal poverty guidelines and who are also enrolled in Medicare, the
commissioner must reimburse the enrollee for Medicare Part B premiums under section
256B.0625, subdivision 15, paragraph (a).

(5) Increases in benefits under title II of the Social Security Act shall not be counted
as income for purposes of this subdivision until July 1 of each year.

(f) A person's eligibility and premium shall be determined by the local county
agency. Premiums must be paid to the commissioner. All premiums are dedicated to
the commissioner.

(g) Any required premium shall be determined at application and redetermined at
the enrollee's six-month income review or when a change in income or household size is
reported. Enrollees must report any change in income or household size within ten days
of when the change occurs. A decreased premium resulting from a reported change in
income or household size shall be effective the first day of the next available billing month
after the change is reported. Except for changes occurring from annual cost-of-living
increases, a change resulting in an increased premium shall not affect the premium amount
until the next six-month review.

(h) Premium payment is due upon notification from the commissioner of the
premium amount required. Premiums may be paid in installments at the discretion of
the commissioner.

(i) Nonpayment of the premium shall result in denial or termination of medical
assistance unless the person demonstrates good cause for nonpayment. Good cause exists
if the requirements specified in Minnesota Rules, part 9506.0040, subpart 7, items B to
D, are met. Except when an installment agreement is accepted by the commissioner,
all persons disenrolled for nonpayment of a premium must pay any past due premiums
as well as current premiums due prior to being reenrolled. Nonpayment shall include
payment with a returned, refused, or dishonored instrument. The commissioner may
require a guaranteed form of payment as the only means to replace a returned, refused,
or dishonored instrument.

(j) The commissioner shall notify enrollees annually beginning at least 24 months
before the person's 65th birthday of the medical assistance eligibility rules affecting
income, assets, and treatment of a spouse's income and assets that will be applied upon
reaching age 65.

EFFECTIVE DATE.

This section is effective January 1, 2011.

Sec. 10.

Minnesota Statutes 2009 Supplement, section 256B.0659, subdivision 11,
is amended to read:


Subd. 11.

Personal care assistant; requirements.

(a) A personal care assistant
must meet the following requirements:

(1) be at least 18 years of age with the exception of persons who are 16 or 17 years
of age with these additional requirements:

(i) supervision by a qualified professional every 60 days; and

(ii) employment by only one personal care assistance provider agency responsible
for compliance with current labor laws;

(2) be employed by a personal care assistance provider agency;

(3) enroll with the department as a personal care assistant after clearing a background
study. Before a personal care assistant provides services, the personal care assistance
provider agency must initiate a background study on the personal care assistant under
chapter 245C, and the personal care assistance provider agency must have received a
notice from the commissioner that the personal care assistant is:

(i) not disqualified under section 245C.14; or

(ii) is disqualified, but the personal care assistant has received a set aside of the
disqualification under section 245C.22;

(4) be able to effectively communicate with the recipient and personal care
assistance provider agency;

(5) be able to provide covered personal care assistance services according to the
recipient's personal care assistance care plan, respond appropriately to recipient needs,
and report changes in the recipient's condition to the supervising qualified professional
or physician;

(6) not be a consumer of personal care assistance services;

(7) maintain daily written records including, but not limited to, time sheets under
subdivision 12;

(8) effective January 1, 2010, complete standardized training as determined by the
commissioner before completing enrollment. Personal care assistant training must include
successful completion of the following training components: basic first aid, vulnerable
adult, child maltreatment, OSHA universal precautions, basic roles and responsibilities of
personal care assistants including information about assistance with lifting and transfers
for recipients, emergency preparedness, orientation to positive behavioral practices, fraud
issues, and completion of time sheets. Upon completion of the training components,
the personal care assistant must demonstrate the competency to provide assistance to
recipients;

(9) complete training and orientation on the needs of the recipient within the first
seven days after the services begin; and

(10) be limited to providing and being paid for up to 310 275 hours per month of
personal care assistance services regardless of the number of recipients being served or the
number of personal care assistance provider agencies enrolled with.

(b) A legal guardian may be a personal care assistant if the guardian is not being paid
for the guardian services and meets the criteria for personal care assistants in paragraph (a).

(c) Effective January 1, 2010, persons who do not qualify as a personal care assistant
include parents and stepparents of minors, spouses, paid legal guardians, family foster
care providers, except as otherwise allowed in section 256B.0625, subdivision 19a, or
staff of a residential setting.

EFFECTIVE DATE.

This section is effective July 1, 2011.

Sec. 11.

Minnesota Statutes 2008, section 256B.0915, is amended by adding a
subdivision to read:


Subd. 3i.

Rate reduction for customized living and 24-hour customized living
services.

(a) Effective July 1, 2010, the commissioner shall reduce service component
rates and service rate limits for customized living services and 24-hour customized living
services, from the rates in effect on June 30, 2010, by five percent.

(b) To implement the rate reductions in this subdivision, capitation rates paid by the
commissioner to managed care organizations under section 256B.69 shall reflect a ten
percent reduction for the specified services for the period January 1, 2011, to June 30,
2011, and a five percent reduction for those services on and after July 1, 2011.

Sec. 12.

Minnesota Statutes 2009 Supplement, section 256B.441, subdivision 55,
is amended to read:


Subd. 55.

Phase-in of rebased operating payment rates.

(a) For the rate years
beginning October 1, 2008, to October 1, 2015, the operating payment rate calculated
under this section shall be phased in by blending the operating rate with the operating
payment rate determined under section 256B.434. For purposes of this subdivision, the
rate to be used that is determined under section 256B.434 shall not include the portion of
the operating payment rate related to performance-based incentive payments under section
256B.434, subdivision 4, paragraph (d). For the rate year beginning October 1, 2008, the
operating payment rate for each facility shall be 13 percent of the operating payment rate
from this section, and 87 percent of the operating payment rate from section 256B.434.
For the rate year beginning October 1, 2009, the operating payment rate for each facility
shall be 14 percent of the operating payment rate from this section, and 86 percent of
the operating payment rate from section 256B.434. For rate years beginning October 1,
2010; October 1, 2011; and October 1, 2012,
For the rate period from October 1, 2009, to
September 30, 2013,
no rate adjustments shall be implemented under this section, but shall
be determined under section 256B.434. For the rate year beginning October 1, 2013, the
operating payment rate for each facility shall be 65 percent of the operating payment rate
from this section, and 35 percent of the operating payment rate from section 256B.434.
For the rate year beginning October 1, 2014, the operating payment rate for each facility
shall be 82 percent of the operating payment rate from this section, and 18 percent of the
operating payment rate from section 256B.434. For the rate year beginning October 1,
2015, the operating payment rate for each facility shall be the operating payment rate
determined under this section. The blending of operating payment rates under this section
shall be performed separately for each RUG's class.

(b) For the rate year beginning October 1, 2008, the commissioner shall apply limits
to the operating payment rate increases under paragraph (a) by creating a minimum
percentage increase and a maximum percentage increase.

(1) Each nursing facility that receives a blended October 1, 2008, operating payment
rate increase under paragraph (a) of less than one percent, when compared to its operating
payment rate on September 30, 2008, computed using rates with RUG's weight of 1.00,
shall receive a rate adjustment of one percent.

(2) The commissioner shall determine a maximum percentage increase that will
result in savings equal to the cost of allowing the minimum increase in clause (1). Nursing
facilities with a blended October 1, 2008, operating payment rate increase under paragraph
(a) greater than the maximum percentage increase determined by the commissioner, when
compared to its operating payment rate on September 30, 2008, computed using rates with
a RUG's weight of 1.00, shall receive the maximum percentage increase.

(3) Nursing facilities with a blended October 1, 2008, operating payment rate
increase under paragraph (a) greater than one percent and less than the maximum
percentage increase determined by the commissioner, when compared to its operating
payment rate on September 30, 2008, computed using rates with a RUG's weight of 1.00,
shall receive the blended October 1, 2008, operating payment rate increase determined
under paragraph (a).

(4) The October 1, 2009, through October 1, 2015, operating payment rate for
facilities receiving the maximum percentage increase determined in clause (2) shall be
the amount determined under paragraph (a) less the difference between the amount
determined under paragraph (a) for October 1, 2008, and the amount allowed under clause
(2). This rate restriction does not apply to rate increases provided in any other section.

(c) A portion of the funds received under this subdivision that are in excess of
operating payment rates that a facility would have received under section 256B.434, as
determined in accordance with clauses (1) to (3), shall be subject to the requirements in
section 256B.434, subdivision 19, paragraphs (b) to (h).

(1) Determine the amount of additional funding available to a facility, which shall be
equal to total medical assistance resident days from the most recent reporting year times
the difference between the blended rate determined in paragraph (a) for the rate year being
computed and the blended rate for the prior year.

(2) Determine the portion of all operating costs, for the most recent reporting year,
that are compensation related. If this value exceeds 75 percent, use 75 percent.

(3) Subtract the amount determined in clause (2) from 75 percent.

(4) The portion of the fund received under this subdivision that shall be subject to
the requirements in section 256B.434, subdivision 19, paragraphs (b) to (h), shall equal
the amount determined in clause (1) times the amount determined in clause (3).

EFFECTIVE DATE.

This section is effective retroactive to October 1, 2009.

Sec. 13.

Minnesota Statutes 2009 Supplement, section 256B.69, subdivision 23,
is amended to read:


Subd. 23.

Alternative services; elderly and disabled persons.

(a) The
commissioner may implement demonstration projects to create alternative integrated
delivery systems for acute and long-term care services to elderly persons and persons
with disabilities as defined in section 256B.77, subdivision 7a, that provide increased
coordination, improve access to quality services, and mitigate future cost increases.
The commissioner may seek federal authority to combine Medicare and Medicaid
capitation payments for the purpose of such demonstrations and may contract with
Medicare-approved special needs plans to provide Medicaid services. Medicare funds and
services shall be administered according to the terms and conditions of the federal contract
and demonstration provisions. For the purpose of administering medical assistance funds,
demonstrations under this subdivision are subject to subdivisions 1 to 22. The provisions
of Minnesota Rules, parts 9500.1450 to 9500.1464, apply to these demonstrations,
with the exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, subpart 1,
items B and C, which do not apply to persons enrolling in demonstrations under this
section. An initial open enrollment period may be provided. Persons who disenroll from
demonstrations under this subdivision remain subject to Minnesota Rules, parts 9500.1450
to 9500.1464. When a person is enrolled in a health plan under these demonstrations and
the health plan's participation is subsequently terminated for any reason, the person shall
be provided an opportunity to select a new health plan and shall have the right to change
health plans within the first 60 days of enrollment in the second health plan. Persons
required to participate in health plans under this section who fail to make a choice of
health plan shall not be randomly assigned to health plans under these demonstrations.
Notwithstanding section 256L.12, subdivision 5, and Minnesota Rules, part 9505.5220,
subpart 1, item A, if adopted, for the purpose of demonstrations under this subdivision,
the commissioner may contract with managed care organizations, including counties, to
serve only elderly persons eligible for medical assistance, elderly and disabled persons, or
disabled persons only. For persons with a primary diagnosis of developmental disability,
serious and persistent mental illness, or serious emotional disturbance, the commissioner
must ensure that the county authority has approved the demonstration and contracting
design. Enrollment in these projects for persons with disabilities shall be voluntary. The
commissioner shall not implement any demonstration project under this subdivision for
persons with a primary diagnosis of developmental disabilities, serious and persistent
mental illness, or serious emotional disturbance, without approval of the county board of
the county in which the demonstration is being implemented.

(b) Notwithstanding chapter 245B, sections 252.40 to 252.46, 256B.092, 256B.501
to 256B.5015, and Minnesota Rules, parts 9525.0004 to 9525.0036, 9525.1200 to
9525.1330, 9525.1580, and 9525.1800 to 9525.1930, the commissioner may implement
under this section projects for persons with developmental disabilities. The commissioner
may capitate payments for ICF/MR services, waivered services for developmental
disabilities, including case management services, day training and habilitation and
alternative active treatment services, and other services as approved by the state and by the
federal government. Case management and active treatment must be individualized and
developed in accordance with a person-centered plan. Costs under these projects may not
exceed costs that would have been incurred under fee-for-service. Beginning July 1, 2003,
and until four years after the pilot project implementation date, subcontractor participation
in the long-term care developmental disability pilot is limited to a nonprofit long-term
care system providing ICF/MR services, home and community-based waiver services,
and in-home services to no more than 120 consumers with developmental disabilities in
Carver, Hennepin, and Scott Counties. The commissioner shall report to the legislature
prior to expansion of the developmental disability pilot project. This paragraph expires
four years after the implementation date of the pilot project.

(c) Before implementation of a demonstration project for disabled persons, the
commissioner must provide information to appropriate committees of the house of
representatives and senate and must involve representatives of affected disability groups
in the design of the demonstration projects.

(d) A nursing facility reimbursed under the alternative reimbursement methodology
in section 256B.434 may, in collaboration with a hospital, clinic, or other health care entity
provide services under paragraph (a). The commissioner shall amend the state plan and
seek any federal waivers necessary to implement this paragraph.

(e) The commissioner, in consultation with the commissioners of commerce and
health, may approve and implement programs for all-inclusive care for the elderly (PACE)
according to federal laws and regulations governing that program and state laws or rules
applicable to participating providers. The process for approval of these programs shall
begin only after the commissioner receives grant money in an amount sufficient to cover
the state share of the administrative and actuarial costs to implement the programs during
state fiscal years 2006 and 2007. Grant amounts for this purpose shall be deposited in an
account in the special revenue fund and are appropriated to the commissioner to be used
solely for the purpose of PACE administrative and actuarial costs.
A PACE provider is
not required to be licensed or certified as a health plan company as defined in section
62Q.01, subdivision 4. Persons age 55 and older who have been screened by the county
and found to be eligible for services under the elderly waiver or community alternatives
for disabled individuals or who are already eligible for Medicaid but meet level of
care criteria for receipt of waiver services may choose to enroll in the PACE program.
Medicare and Medicaid services will be provided according to this subdivision and
federal Medicare and Medicaid requirements governing PACE providers and programs.
PACE enrollees will receive Medicaid home and community-based services through the
PACE provider as an alternative to services for which they would otherwise be eligible
through home and community-based waiver programs and Medicaid State Plan Services.
The commissioner shall establish Medicaid rates for PACE providers that do not exceed
costs that would have been incurred under fee-for-service or other relevant managed care
programs operated by the state.

(f) The commissioner shall seek federal approval to expand the Minnesota disability
health options (MnDHO) program established under this subdivision in stages, first to
regional population centers outside the seven-county metro area and then to all areas of
the state. Until July 1, 2009, expansion for MnDHO projects that include home and
community-based services is limited to the two projects and service areas in effect on
March 1, 2006. Enrollment in integrated MnDHO programs that include home and
community-based services shall remain voluntary. Costs for home and community-based
services included under MnDHO must not exceed costs that would have been incurred
under the fee-for-service program. Notwithstanding whether expansion occurs under
this paragraph, in determining MnDHO payment rates and risk adjustment methods for
contract years starting in 2012,
the commissioner must consider the methods used to
determine county allocations for home and community-based program participants. If
necessary to reduce MnDHO rates to comply with the provision regarding MnDHO costs
for home and community-based services, the commissioner shall achieve the reduction
by maintaining the base rate for contract years year 2010 and 2011 for services provided
under the community alternatives for disabled individuals waiver at the same level as for
contract year 2009. The commissioner may apply other reductions to MnDHO rates to
implement decreases in provider payment rates required by state law. Effective January
1, 2011, enrollment and operation of the MnDHO program in effect during 2010 shall
cease. The commissioner may reopen the program provided all applicable conditions of
this section are met.
In developing program specifications for expansion of integrated
programs, the commissioner shall involve and consult the state-level stakeholder group
established in subdivision 28, paragraph (d), including consultation on whether and how
to include home and community-based waiver programs. Plans for further expansion of to
reopen
MnDHO projects shall be presented to the chairs of the house of representatives
and senate committees with jurisdiction over health and human services policy and finance
by February 1, 2007 prior to implementation.

(g) Notwithstanding section 256B.0261, health plans providing services under this
section are responsible for home care targeted case management and relocation targeted
case management. Services must be provided according to the terms of the waivers and
contracts approved by the federal government.

Sec. 14.

Laws 2009, chapter 79, article 8, section 51, the effective date, is amended to
read:


EFFECTIVE DATE.

This section is effective January July 1, 2011.

Sec. 15.

Laws 2009, chapter 79, article 8, section 84, is amended to read:


Sec. 84. HOUSING OPTIONS.

The commissioner of human services, in consultation with the commissioner of
administration and the Minnesota Housing Finance Agency, and representatives of
counties, residents' advocacy groups, consumers of housing services, and provider
agencies shall explore ways to maximize the availability and affordability of housing
choices available to persons with disabilities or who need care assistance due to other
health challenges. A goal shall also be to minimize state physical plant costs in order to
serve more persons with appropriate program and care support. Consideration shall be
given to:

(1) improved access to rent subsidies;

(2) use of cooperatives, land trusts, and other limited equity ownership models;

(3) whether a public equity housing fund should be established that would maintain
the state's interest, to the extent paid from state funds, including group residential housing
and Minnesota supplemental aid shelter-needy funds in provider-owned housing, so that
when sold, the state would recover its share for a public equity fund to be used for future
public needs under this chapter;

(4) the desirability of the state acquiring an ownership interest or promoting the
use of publicly owned housing;

(5) promoting more choices in the market for accessible housing that meets the
needs of persons with physical challenges; and

(6) what consumer ownership models, if any, are appropriate; and

(7) a review of the definition of home and community services and appropriate
settings where these services may be provided, including the number of people who
may reside under one roof, through the home and community-based waivers for seniors
and individuals with disabilities
.

The commissioner shall provide a written report on the findings of the evaluation of
housing options to the chairs and ranking minority members of the house of representatives
and senate standing committees with jurisdiction over health and human services policy
and funding by December 15, 2010. This report shall replace the November 1, 2010,
annual report by the commissioner required in Minnesota Statutes, sections 256B.0916,
subdivision 7
, and 256B.49, subdivision 21.

Sec. 16. COMMISSIONER TO SEEK FEDERAL MATCH.

(a) The commissioner of human services shall seek federal financial participation
for eligible activity related to fiscal years 2010 and 2011 grants to Advocating Change
Together to establish a statewide self-advocacy network for persons with developmental
disabilities and for eligible activities under any future grants to the organization.

(b) The commissioner shall report to the chairs and ranking minority members of
the senate Health and Human Services Budget Division and the house of representatives
Health Care and Human Services Finance Division by December 15, 2010, with the
results of the application for federal matching funds.

Sec. 17. ICF/MR RATE INCREASE.

The daily rate at an intermediate care facility for the developmentally disabled
located in Clearwater County and classified as a Class A facility with 15 beds shall be
increased from $112.73 to $138.23 for the rate period July 1, 2010, to June 30, 2011.

ARTICLE 18

CHILDREN AND FAMILY SERVICES

Section 1.

Minnesota Statutes 2008, section 256D.0515, is amended to read:


256D.0515 ASSET LIMITATIONS FOR FOOD STAMP HOUSEHOLDS.

All food stamp households must be determined eligible for the benefit discussed
under section 256.029. Food stamp households must demonstrate that:

(1) their gross income meets the federal Food Stamp requirements under United
States Code, title 7, section 2014(c); and

(2) they have financial resources, excluding vehicles, of less than $7,000 is equal to
or less than 165 percent of the federal poverty guidelines for the same family size
.

EFFECTIVE DATE.

This section is effective November 1, 2010.

Sec. 2.

Minnesota Statutes 2008, section 256I.05, is amended by adding a subdivision
to read:


Subd. 1n.

Supplemental rate; Mahnomen County.

Notwithstanding the
provisions of this section, for the rate period July 1, 2010, to June 30, 2011, a county
agency shall negotiate a supplemental service rate in addition to the rate specified in
subdivision 1, not to exceed $753 per month or the existing rate, including any legislative
authorized inflationary adjustments, for a group residential provider located in Mahnomen
County that operates a 28-bed facility providing 24-hour care to individuals who are
homeless, disabled, chemically dependent, mentally ill, or chronically homeless.

Sec. 3.

Minnesota Statutes 2008, section 256J.24, subdivision 6, is amended to read:


Subd. 6.

Family cap.

(a) MFIP assistance units shall not receive an increase in the
cash portion of the transitional standard as a result of the birth of a child, unless one of
the conditions under paragraph (b) is met. The child shall be considered a member of the
assistance unit according to subdivisions 1 to 3, but shall be excluded in determining
family size for purposes of determining the amount of the cash portion of the transitional
standard under subdivision 5. The child shall be included in determining family size for
purposes of determining the food portion of the transitional standard. The transitional
standard under this subdivision shall be the total of the cash and food portions as specified
in this paragraph. The family wage level under this subdivision shall be based on the
family size used to determine the food portion of the transitional standard.

(b) A child shall be included in determining family size for purposes of determining
the amount of the cash portion of the MFIP transitional standard when at least one of
the following conditions is met:

(1) for families receiving MFIP assistance on July 1, 2003, the child is born to the
adult parent before May 1, 2004;

(2) for families who apply for the diversionary work program under section 256J.95
or MFIP assistance on or after July 1, 2003, the child is born to the adult parent within
ten months of the date the family is eligible for assistance;

(3) the child was conceived as a result of a sexual assault or incest, provided that the
incident has been reported to a law enforcement agency;

(4) the child's mother is a minor caregiver as defined in section 256J.08, subdivision
59
, and the child, or multiple children, are the mother's first birth; or

(5) the child is the mother's first child subsequent to a pregnancy that did not result
in a live birth; or

(6) any child previously excluded in determining family size under paragraph
(a) shall be included if the adult parent or parents have not received benefits from the
diversionary work program under section 256J.95 or MFIP assistance in the previous ten
months. An adult parent or parents who reapply and have received benefits from the
diversionary work program or MFIP assistance in the past ten months shall be under the
ten-month grace period of their previous application under clause (2).

(c) Income and resources of a child excluded under this subdivision, except child
support received or distributed on behalf of this child, must be considered using the same
policies as for other children when determining the grant amount of the assistance unit.

(d) The caregiver must assign support and cooperate with the child support
enforcement agency to establish paternity and collect child support on behalf of the
excluded child. Failure to cooperate results in the sanction specified in section 256J.46,
subdivisions 2 and 2a
. Current support paid on behalf of the excluded child shall be
distributed according to section 256.741, subdivision 15.

(e) County agencies must inform applicants of the provisions under this subdivision
at the time of each application and at recertification.

(f) Children excluded under this provision shall be deemed MFIP recipients for
purposes of child care under chapter 119B.

EFFECTIVE DATE.

This section is effective September 1, 2010.

Sec. 4.

Minnesota Statutes 2009 Supplement, section 256J.425, subdivision 3, is