SF 477

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to human services; including provisions for 
  1.3             agency management; children's programs; basic health 
  1.4             care programs; medical assistance and general 
  1.5             assistance medical care; long-term care; 
  1.6             state-operated services; mental health and 
  1.7             developmentally disabled; MinnesotaCare; child support 
  1.8             enforcement; assistance to families; health 
  1.9             department; appropriating money; amending Minnesota 
  1.10            Statutes 1996, sections 13.46, subdivision 2; 13.99, 
  1.11            by adding a subdivision; 62D.04, subdivision 5; 
  1.12            62E.14, by adding a subdivision; 103I.101, subdivision 
  1.13            6; 103I.208; 103I.401, subdivision 1; 144.0721, 
  1.14            subdivision 3; 144.121, subdivision 1, and by adding 
  1.15            subdivisions; 144.223; 144.226, subdivision 1, and by 
  1.16            adding a subdivision; 153A.17; 157.16, subdivision 3; 
  1.17            245.4882, subdivision 5; 245.493, subdivision 1, and 
  1.18            by adding a subdivision; 245.652, subdivisions 1, 2, 
  1.19            and 4; 246.0135; 246.02, subdivision 2; 252.025, 
  1.20            subdivisions 1, 4, and by adding a subdivision; 
  1.21            252.32, subdivisions 1a, 3, 3a, 3c, and 5; 254.04; 
  1.22            254B.02, subdivisions 1 and 3; 254B.03, subdivision 1; 
  1.23            254B.09, subdivisions 4, 5, and 7; 256.01, subdivision 
  1.24            2, and by adding a subdivision; 256.045, subdivisions 
  1.25            3, 3b, 4, 5, 7, and 8; 256.476, subdivisions 2, 3, 4, 
  1.26            and 5; 256.82, by adding a subdivision; 256.87, 
  1.27            subdivisions 1, 1a, 3, 5, and by adding a subdivision; 
  1.28            256.9353, subdivisions 3 and 7; 256.9355, subdivisions 
  1.29            1, 3, and 4; 256.9356, subdivision 2; 256.9357, 
  1.30            subdivisions 2 and 3; 256.9358, subdivisions 1 and 7; 
  1.31            256.9363, subdivision 7; 256.969, subdivision 1; 
  1.32            256.9695, subdivision 1; 256.978, subdivisions 1 and 
  1.33            2; 256.979, subdivision 8, and by adding a 
  1.34            subdivision; 256.9791, subdivision 1; 256.9792, 
  1.35            subdivisions 1 and 2; 256.998, subdivisions 1, 6, 7, 
  1.36            and 9; 256B.02, by adding a subdivision; 256B.037, 
  1.37            subdivision 2; 256B.055, by adding a subdivision; 
  1.38            256B.056, subdivisions 4, 5, 7, and by adding 
  1.39            subdivisions; 256B.061; 256B.0625, subdivisions 13 and 
  1.40            15; 256B.0626; 256B.0911, subdivision 7; 256B.0913, 
  1.41            subdivisions 5 and 15; 256B.0915, subdivision 3, and 
  1.42            by adding a subdivision; 256B.421, subdivision 1; 
  1.43            256B.431, subdivision 25, and by adding a subdivision; 
  1.44            256B.434, subdivisions 3 and 4; 256B.49, subdivision 
  1.45            1; 256B.69, subdivisions 4, 6, and by adding 
  1.46            subdivisions; 256D.03, subdivisions 3 and 3b; 
  2.1             256E.115; 256G.05, subdivision 2; 256I.04, subdivision 
  2.2             2a; 256I.05, subdivision 1a; 257.57, subdivision 2; 
  2.3             257.62, subdivisions 1 and 2; 257.66, subdivision 3, 
  2.4             and by adding a subdivision; 257.70; 257.75, 
  2.5             subdivisions 1a, 2, 3, 4, 5, and 7; 295.50, 
  2.6             subdivisions 3, 4, and by adding a subdivision; 
  2.7             295.51, subdivision 1; 295.52, subdivisions 1 and 1b; 
  2.8             295.53, subdivisions 3 and 5; 295.54, subdivision 1; 
  2.9             295.58; 295.582; 299C.46, subdivision 3; 393.07, 
  2.10            subdivision 2; 466.01, subdivision 1; 469.155, 
  2.11            subdivision 4; 471.59, subdivision 11; 517.08, 
  2.12            subdivision 1c; 518.005, by adding a subdivision; 
  2.13            518.10; 518.148, subdivision 2; 518.171, subdivisions 
  2.14            1 and 4; 518.54, subdivision 6, and by adding a 
  2.15            subdivision; 518.551, subdivisions 12, 13, and by 
  2.16            adding a subdivision; 518.5511, subdivisions 1, 2, 3, 
  2.17            4, and by adding a subdivision; 518.5512, subdivisions 
  2.18            2, 3, and by adding subdivisions; 518.611, 
  2.19            subdivisions 2, 3, 4, 5, 6, 10, 12, and by adding 
  2.20            subdivisions; 518.616, by adding a subdivision; 
  2.21            518.64, subdivision 2; 518.68, subdivision 2; 
  2.22            518C.101; 518C.204; 518C.205; 518C.207; 518C.301; 
  2.23            518C.304; 518C.305; 518C.310; 518C.401; 518C.501; 
  2.24            518C.603; 518C.605; 518C.608; 518C.611; 518C.612; 
  2.25            626.558, subdivisions 1 and 2; and 626.559, 
  2.26            subdivision 5; Laws 1995, chapter 207, article 8, 
  2.27            section 41, subdivision 2; proposing coding for new 
  2.28            law in Minnesota Statutes, chapters 144; 256; 256B; 
  2.29            518; and 518C; repealing Minnesota Statutes 1996, 
  2.30            sections 8.35; 252.32, subdivision 4; 256.74; 
  2.31            256.9657, subdivision 2; 256.979, subdivision 9; 
  2.32            256B.0625, subdivision 13b; 256B.501, subdivision 5c; 
  2.33            295.54, subdivision 2; 469.154, subdivision 6; 
  2.34            518.5511, subdivisions 5, 6, 7, 8, and 9; 518.611, 
  2.35            subdivision 1; 518.613; 518C.502; and 518C.9011. 
  2.36  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.37                             ARTICLE 1
  2.38                           APPROPRIATIONS 
  2.39  Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
  2.40     The sums shown in the columns marked "APPROPRIATIONS" are 
  2.41  appropriated from the general fund, or any other fund named, to 
  2.42  the agencies and for the purposes specified in the following 
  2.43  sections of this article, to be available for the fiscal years 
  2.44  indicated for each purpose.  The figures "1998" and "1999" where 
  2.45  used in this article, mean that the appropriation or 
  2.46  appropriations listed under them are available for the fiscal 
  2.47  year ending June 30, 1998, or June 30, 1999, respectively.  
  2.48  Where a dollar amount appears in parentheses, it means a 
  2.49  reduction of an appropriation.  
  2.50                          SUMMARY BY FUND
  2.51  APPROPRIATIONS                                      BIENNIAL
  2.52                            1998          1999           TOTAL
  2.53  General          $2,583,480,000 $2,736,620,000 $5,320,100,000
  3.1   Health Care 
  3.2   Access              281,705,000    295,898,000    577,603,000
  3.3   State Government
  3.4   Special Revenue      31,645,000     31,928,000     63,573,000
  3.5   Metropolitan Landfill 
  3.6   Contingency Action Fund 193,000        193,000        386,000
  3.7   Trunk Highway         1,652,000      1,678,000      3,330,000
  3.8   TOTAL             2,898,675,000  3,066,317,000  5,964,992,000
  3.9                                              APPROPRIATIONS 
  3.10                                         Available for the Year 
  3.11                                             Ending June 30 
  3.12                                            1998         1999 
  3.13  Sec. 2.  COMMISSIONER OF 
  3.14  HUMAN SERVICES 
  3.15  Subdivision 1.  Total 
  3.16  Appropriation                      2,767,083,000  2,925,862,000
  3.17                Summary by Fund
  3.18  General           2,494,082,000 2,640,191,000
  3.19  Health Care       
  3.20  Access              272,548,000   285,209,000
  3.21  State Government
  3.22  Special Revenue         453,000       462,000
  3.23  Subd. 2.  Agency Management 
  3.24  General              26,944,000    25,654,000
  3.25  Health Care
  3.26  Access                1,401,000     1,419,000
  3.27  State Government
  3.28  Special Revenue         342,000       350,000
  3.29  The amounts that may be spent from the 
  3.30  appropriation for each purpose are as 
  3.31  follows: 
  3.32  (a) Financial Operations 
  3.33  General               8,104,000     6,773,000
  3.34  Health Care
  3.35  Access                  570,000       581,000
  3.36  [RECEIPTS FOR SYSTEMS PROJECTS.] 
  3.37  Appropriations and federal receipts for 
  3.38  information system projects for MAXIS, 
  3.39  electronic benefit system, social 
  3.40  services information system, child 
  3.41  support enforcement, and Minnesota 
  3.42  medicaid information system (MMIS II) 
  3.43  must be deposited in the state system 
  3.44  account authorized in Minnesota 
  3.45  Statutes, section 256.014.  Money 
  3.46  appropriated for computer projects 
  3.47  approved by the information policy 
  3.48  office, funded by the legislature, and 
  3.49  approved by the commissioner of finance 
  3.50  may be transferred from one project to 
  3.51  another and from development to 
  4.1   operations as the commissioner of human 
  4.2   services considers necessary.  Any 
  4.3   unexpended balance in the appropriation 
  4.4   for these projects does not cancel but 
  4.5   is available for ongoing development 
  4.6   and operations. 
  4.7   (b) Legal & Regulation Operations 
  4.8   General               7,360,000     7,151,000
  4.9   Health Care
  4.10  Access                  136,000       138,000
  4.11  State Government
  4.12  Special Revenue         342,000       350,000
  4.13  (c) Management Operations 
  4.14  General              11,480,000    11,730,000
  4.15  Health Care
  4.16  Access                  695,000       700,000
  4.17  [COMMUNICATION COSTS.] The commissioner 
  4.18  shall continue to operate the 
  4.19  department of human services 
  4.20  communication systems account 
  4.21  established in Laws 1993, First Special 
  4.22  Session chapter 1, article 1, section 
  4.23  2, subdivision 2, to manage shared 
  4.24  communication costs necessary for the 
  4.25  operation of the programs the 
  4.26  commissioner supervises.  A 
  4.27  communications account may also be 
  4.28  established for each regional treatment 
  4.29  center which operates communication 
  4.30  systems.  Each account shall be used to 
  4.31  manage shared communication costs 
  4.32  necessary for the operation of programs 
  4.33  the commissioner supervises.  The 
  4.34  commissioner may distribute the costs 
  4.35  of operating and maintaining 
  4.36  communication systems to participants 
  4.37  in a manner that reflects actual 
  4.38  usage.  Costs may include acquisition, 
  4.39  licensing, insurance, maintenance, 
  4.40  repair, staff time, and other costs as 
  4.41  determined by the commissioner.  State, 
  4.42  county, and local agencies involved in 
  4.43  the operation of programs the 
  4.44  commissioner supervises may participate 
  4.45  in the use of the department's 
  4.46  communication technology and share in 
  4.47  the cost of operation.  Nonprofit 
  4.48  organizations similarly involved in the 
  4.49  operation of programs the commissioner 
  4.50  supervises may participate in the use 
  4.51  of the department's communication 
  4.52  technology and share in the cost of 
  4.53  operation.  The commissioner may accept 
  4.54  on behalf of the state any gift, 
  4.55  bequest, devise, or personal property 
  4.56  of any kind or money tendered to the 
  4.57  state for any lawful purpose pertaining 
  4.58  to the communication activities of the 
  4.59  department.  Any money so received must 
  4.60  be deposited in the department of human 
  4.61  services communication systems 
  4.62  accounts.  Money collected by the 
  4.63  commissioner for the use of 
  5.1   communication systems must be deposited 
  5.2   in the state communication systems 
  5.3   account and is appropriated to the 
  5.4   commissioner for purposes of this 
  5.5   section. 
  5.6   [ISSUANCE OPERATIONS CENTER.] Payments 
  5.7   to the commissioner from other 
  5.8   governmental units and private 
  5.9   enterprises for (1) services performed 
  5.10  by the issuance operations center, or 
  5.11  (2) reports generated by the payment 
  5.12  and eligibility systems must be 
  5.13  deposited in the state systems account 
  5.14  authorized in Minnesota Statutes, 
  5.15  section 256.014.  These payments are 
  5.16  appropriated to the commissioner for 
  5.17  the operation of the issuance center or 
  5.18  system, in accordance with Minnesota 
  5.19  Statutes, section 256.014. 
  5.20  Subd. 3.  Children's Grants
  5.21  General              35,857,000    38,382,000
  5.22  Subd. 4.  Children's Services Management
  5.23  General               3,001,000     3,032,000
  5.24  Subd. 5.  Basic Health Care Grants
  5.25                Summary by Fund
  5.26  General             759,720,000   879,586,000
  5.27  Health Care
  5.28  Access              259,786,000   270,244,000
  5.29  The amounts that may be spent from this 
  5.30  appropriation for each purpose are as 
  5.31  follows: 
  5.32  (a) Minnesota Care Grants   
  5.33  Health Care
  5.34  Access               83,605,000    91,808,000
  5.35  (b) MA Basic Health Care Grants-
  5.36  Families and Children
  5.37  General             350,218,000   394,088,000
  5.38  (c) MA Basic Health Care Grants- 
  5.39  Elderly & Disabled
  5.40  General             409,502,000   485,498,000
  5.41  [PUBLIC HEALTH NURSE ASSESSMENT.] 
  5.42  Effective for public health nurse 
  5.43  visits on or after July 1, 1996, the 
  5.44  reimbursement for public health nurse 
  5.45  visits relating to the provision of 
  5.46  personal care services under Minnesota 
  5.47  Statutes, sections 256B.0625, 
  5.48  subdivision 19a, and 256B.0627, is 
  5.49  $204.36 for the initial assessment 
  5.50  visit and $102.18 for each reassessment 
  5.51  visit. 
  5.52  [SURCHARGE COMPLIANCE.] In the event 
  5.53  that federal financial participation in 
  6.1   the Minnesota medical assistance 
  6.2   program is reduced as a result of a 
  6.3   determination that Minnesota is out of 
  6.4   compliance with Public Law Number 
  6.5   102-234 or its implementing regulations 
  6.6   or with any other federal law designed 
  6.7   to restrict provider tax programs or 
  6.8   intergovernmental transfers, the 
  6.9   commissioner shall appeal the 
  6.10  determination to the fullest extent 
  6.11  permitted by law and may ratably reduce 
  6.12  all medical assistance and general 
  6.13  assistance medical care payments to 
  6.14  providers other than the state of 
  6.15  Minnesota in order to eliminate any 
  6.16  shortfall resulting from the reduced 
  6.17  federal funding.  Any amount later 
  6.18  recovered through the appeals process 
  6.19  shall be used to reimburse providers 
  6.20  for any ratable reductions taken. 
  6.21  (d) General Assistance Medical Care
  6.22  General                 -0-           -0-    
  6.23  Health Care
  6.24  Access              176,181,000   178,436,000
  6.25  [GAMC TRANSFER TO HEALTH CARE ACCESS 
  6.26  FUND.] The commissioner of finance will 
  6.27  transfer $153,971,000 from the general 
  6.28  fund to the health care access fund in 
  6.29  each fiscal year beginning July 1, 
  6.30  1997, and ending June 30, 2000. 
  6.31  Subd. 6.  Basic Health Care Management
  6.32  General              23,987,000    24,905,000
  6.33  Health Care
  6.34  Access               11,142,000    13,322,000
  6.35  (a) Health Care Policy Administration
  6.36  General               4,256,000     4,316,000
  6.37  Health Care
  6.38  Access                  601,000       615,000
  6.39  [CONSUMER SATISFACTION SURVEY.] Any 
  6.40  federal matching money received through 
  6.41  the medical assistance program for the 
  6.42  consumer satisfaction survey is 
  6.43  appropriated to the commissioner for 
  6.44  this purpose.  The commissioner may 
  6.45  expend the federal money received for 
  6.46  the consumer satisfaction survey in 
  6.47  either year of the biennium. 
  6.48  (b) Health Care Operations
  6.49  General              19,731,000    20,589,000
  6.50  Health Care
  6.51  Access               10,541,000    12,707,000
  6.52  [MANAGED CARE.] The nonfederal share of 
  6.53  the Prepaid Medical Assistance Program 
  6.54  funds, which have been appropriated to 
  6.55  fund county managed care advocacy and 
  6.56  enrollment operating costs, shall be 
  7.1   disbursed as grants using either a 
  7.2   reimbursement or block grant mechanism. 
  7.3   [HEALTH CARE PROGRAM ADMINISTRATION 
  7.4   CONTINUITY.] In the event of disruption 
  7.5   of technical systems or computer 
  7.6   operations, the commissioner of human 
  7.7   services may use available grant 
  7.8   appropriations to ensure continuity of 
  7.9   payments for maintaining the health, 
  7.10  safety, and well-being of clients 
  7.11  served by programs administered by the 
  7.12  department of human services.  Grant 
  7.13  funds must be used in a manner 
  7.14  consistent with the original intent of 
  7.15  the appropriation. 
  7.16  [PREPAID MEDICAL PROGRAMS.] 
  7.17  Administrative money appropriated for 
  7.18  the prepaid medical assistance program 
  7.19  and the prepaid general assistance 
  7.20  medical care program may be transferred 
  7.21  between grants and nongrant 
  7.22  administration costs with the approval 
  7.23  of the commissioner of finance. 
  7.24  Subd. 7.  State-Operated Services
  7.25  General             208,340,000   204,539,000
  7.26  The amounts that may be spent from this 
  7.27  appropriation for each purpose are as 
  7.28  follows: 
  7.29  (a) RTC Facilities
  7.30  General             193,607,000   188,483,000
  7.31  [MITIGATION RELATED TO DD DOWNSIZING 
  7.32  AND MH PILOTS.] Money appropriated for 
  7.33  the biennium ending June 30, 1999, to 
  7.34  finance mitigation expenses related to 
  7.35  the downsizing of regional treatment 
  7.36  center developmental disabilities 
  7.37  programs and the establishment of 
  7.38  mental health pilot projects may be 
  7.39  transferred between fiscal years within 
  7.40  the biennium. 
  7.41  (b) State-Operated Community
  7.42  Services - MI Adults 
  7.43  General               3,907,000     3,976,000
  7.44  (c) State-Operated Community 
  7.45  Services - DD
  7.46  General              10,826,000    12,080,000
  7.47  [RTC CHEMICAL DEPENDENCY PROGRAMS.] 
  7.48  When the operations of the regional 
  7.49  treatment center chemical dependency 
  7.50  fund created in Minnesota Statutes, 
  7.51  section 246.18, subdivision 2, are 
  7.52  impeded by projected cash deficiencies 
  7.53  resulting from delays in the receipt of 
  7.54  grants, dedicated income, or other 
  7.55  similar receivables, and when the 
  7.56  deficiencies would be corrected within 
  7.57  the budget period involved, the 
  7.58  commissioner of finance may transfer 
  8.1   general fund cash reserves into this 
  8.2   account as necessary to meet cash 
  8.3   demands.  The cash flow transfers must 
  8.4   be returned to the general fund in the 
  8.5   fiscal year that the transfer was 
  8.6   made.  Any interest earned on general 
  8.7   fund cash flow transfers accrues to the 
  8.8   general fund and not the regional 
  8.9   treatment center chemical dependency 
  8.10  fund. 
  8.11  [RTC RESTRUCTURING.] For purposes of 
  8.12  restructuring the regional treatment 
  8.13  centers and state nursing homes, any 
  8.14  regional treatment center or state 
  8.15  nursing home employee whose position is 
  8.16  to be eliminated shall be afforded the 
  8.17  options provided in applicable 
  8.18  collective bargaining agreements.  All 
  8.19  salary and mitigation allocations from 
  8.20  fiscal year 1998 shall be carried 
  8.21  forward into fiscal year 1999.  
  8.22  Provided there is no conflict with any 
  8.23  collective bargaining agreement, any 
  8.24  regional treatment center or state 
  8.25  nursing home position reduction must 
  8.26  only be accomplished through 
  8.27  mitigation, attrition, transfer, and 
  8.28  other measures as provided in state or 
  8.29  applicable collective bargaining 
  8.30  agreements and in Minnesota Statutes, 
  8.31  section 252.50, subdivision 11, and not 
  8.32  through layoff. 
  8.33  [RTC POPULATION.] If the resident 
  8.34  population at the regional treatment 
  8.35  centers is projected to be higher than 
  8.36  the estimates upon which the medical 
  8.37  assistance forecast and budget 
  8.38  recommendations for the 1998-99 
  8.39  biennium were based, the amount of the 
  8.40  medical assistance appropriation that 
  8.41  is attributable to the cost of services 
  8.42  that would have been provided as an 
  8.43  alternative to regional treatment 
  8.44  center services, including resources 
  8.45  for community placements and waivered 
  8.46  services for persons with mental 
  8.47  retardation and related conditions, is 
  8.48  transferred to the residential 
  8.49  facilities appropriation. 
  8.50  [REPAIRS AND BETTERMENTS.] The 
  8.51  commissioner may transfer unencumbered 
  8.52  appropriation balances between fiscal 
  8.53  years for the state residential 
  8.54  facilities repairs and betterments 
  8.55  account and special equipment. 
  8.56  [PROJECT LABOR.] Wages for project 
  8.57  labor may be paid by the commissioner 
  8.58  of human services out of repairs and 
  8.59  betterments money if the individual is 
  8.60  to be engaged in a construction project 
  8.61  or a repair project of short-term and 
  8.62  nonrecurring nature.  Compensation for 
  8.63  project labor shall be based on the 
  8.64  prevailing wage rates, as defined in 
  8.65  Minnesota Statutes, section 177.42, 
  8.66  subdivision 6.  Project laborers are 
  8.67  excluded from the provisions of 
  9.1   Minnesota Statutes, sections 43A.22 to 
  9.2   43A.30, and shall not be eligible for 
  9.3   state-paid insurance and benefits. 
  9.4   Subd. 8.  Continuing Care and 
  9.5   Community Support Grants
  9.6   General           1,109,361,000 1,148,052,000
  9.7   The amounts that may be spent from this 
  9.8   appropriation for each purpose are as 
  9.9   follows: 
  9.10  (a) Community Services Block Grants
  9.11      54,203,000     54,203,000 
  9.12  (b) Consumer Support Grants
  9.13       1,757,000      1,757,000 
  9.14  (c) Aging Adult Service Grants
  9.15       7,195,000      7,198,000 
  9.16  (d) Deaf and Hard-of-Hearing 
  9.17  Services Grants
  9.18       1,074,000      1,074,000 
  9.19  (e) Mental Health Grants
  9.20      47,353,000     48,681,000 
  9.21  (f) Developmental Disabilities
  9.22  Support Grants
  9.23       6,218,000      6,168,000 
  9.24  (g) Medical Assistance Long-Term 
  9.25  Care Waivers and Home Care
  9.26     248,409,000    275,790,000 
  9.27  (h) Medical Assistance Long-Term
  9.28  Care Facilities
  9.29     588,506,000    588,578,000 
  9.30  [ICF/MR AND NURSING FACILITY 
  9.31  INFLATION.] The commissioner of human 
  9.32  services shall grant inflation 
  9.33  adjustments for nursing facilities with 
  9.34  rate years beginning during the 
  9.35  biennium according to Minnesota 
  9.36  Statutes, section 256B.431, and shall 
  9.37  grant inflation adjustments for 
  9.38  intermediate care facilities for 
  9.39  persons with mental retardation or 
  9.40  related conditions with rate years 
  9.41  beginning during the biennium according 
  9.42  to Minnesota Statutes, section 256B.501.
  9.43  [ICF/MR RATE EXEMPTIONS.] For the rate 
  9.44  year beginning October 1, 1997, the 
  9.45  commissioner shall exempt ICF/MR 
  9.46  facilities from reductions to the 
  9.47  payment rates under Minnesota Statutes, 
  9.48  section 256B.501, subdivision 5b, 
  9.49  paragraph (d), clause (6), if the 
  9.50  facility:  (1) has had a settle-up 
 10.1   payment rate established in the 
 10.2   reporting year preceding the rate year 
 10.3   for a one-time rate adjustment; (2) is 
 10.4   a newly established facility; (3) is an 
 10.5   A to B conversion project under the 
 10.6   payment rule; (4) has a payment rate 
 10.7   subject to a community conversion 
 10.8   project under Minnesota Statutes, 
 10.9   section 252.292; (5) has a payment rate 
 10.10  established under Minnesota Statutes, 
 10.11  section 245A.12 or 245A.13; or (6) is a 
 10.12  facility created by the relocation of 
 10.13  more than 25 percent of the capacity of 
 10.14  a related facility during the reporting 
 10.15  year. 
 10.16  [COUNTY WAIVERED SERVICES RESERVE.] 
 10.17  Notwithstanding the provisions of 
 10.18  Minnesota Statutes, section 256B.092, 
 10.19  subdivision 4, and Minnesota Rules, 
 10.20  part 9525.1830, subpart 2, the 
 10.21  commissioner may approve written 
 10.22  procedures and criteria for the 
 10.23  allocation of home- and community-based 
 10.24  waivered services funding for persons 
 10.25  with mental retardation or related 
 10.26  conditions which enables a county to 
 10.27  maintain a reserve resource account.  
 10.28  The reserve resource account may not 
 10.29  exceed five percent of the county 
 10.30  agency's total annual allocation of 
 10.31  home- and community-based waivered 
 10.32  services funds.  The reserve may be 
 10.33  utilized to ensure the county's ability 
 10.34  to meet the changing needs of current 
 10.35  recipients, to ensure the health and 
 10.36  safety needs of current recipients, or 
 10.37  to provide short-term emergency 
 10.38  intervention care to eligible waiver 
 10.39  recipients. 
 10.40  (i) Alternative Care Grants  
 10.41  General              47,787,000    52,608,000
 10.42  [PREADMISSION SCREENING TRANSFER.] 
 10.43  Effective the day following final 
 10.44  enactment, up to $40,000 of the 
 10.45  appropriation for preadmission 
 10.46  screening and alternative care for 
 10.47  fiscal year 1997 may be transferred to 
 10.48  the health care administration account 
 10.49  to pay the state's share of county 
 10.50  claims for conducting nursing home 
 10.51  assessments for persons with mental 
 10.52  illness or mental retardation as 
 10.53  required by Public Law Number 100-203. 
 10.54  [ALTERNATIVE CARE TRANSFER.] Any money 
 10.55  allocated to the alternative care 
 10.56  program that is not spent for the 
 10.57  purposes indicated does not cancel but 
 10.58  shall be transferred to the medical 
 10.59  assistance account. 
 10.60  [PREADMISSION SCREENING RATE.] The 
 10.61  preadmission screening payment to all 
 10.62  counties shall continue at the payment 
 10.63  amount in effect for fiscal year 1995. 
 10.64  [PAS/AC APPROPRIATION.] The 
 11.1   commissioner may expend the money 
 11.2   appropriated for preadmission screening 
 11.3   and the alternative care program for 
 11.4   these purposes in either year of the 
 11.5   biennium. 
 11.6   (j) Group Residential Housing
 11.7   General              65,276,000    68,840,000
 11.8   (k) Chemical Dependency
 11.9   Entitlement Grants
 11.10  General              37,218,000    38,790,000
 11.11  [CHEMICAL DEPENDENCY FUNDS TRANSFER.] 
 11.12  $11,340,000 from the consolidated 
 11.13  chemical dependency general reserve 
 11.14  fund available in fiscal year 1998 is 
 11.15  transferred to the general fund. 
 11.16  (l) Chemical Dependency 
 11.17  Nonentitlement Grants
 11.18  General               4,365,000     4,365,000
 11.19  Subd. 9.  Continuing Care and
 11.20  Community Support Management
 11.21  General              19,948,000    19,748,000
 11.22  State Government
 11.23  Special Revenue         111,000       112,000
 11.24  Subd. 10.  Economic Support Grants
 11.25  General             268,677,000   259,026,000
 11.26  The amounts that may be spent from this 
 11.27  appropriation for each purpose are as 
 11.28  follows: 
 11.29  (a) Assistance to Families Grants
 11.30  General             130,326,000   145,230,000
 11.31  [SSI LOSS MITIGATION.] Of this 
 11.32  appropriation, $2,700,000, in fiscal 
 11.33  year 1998 is for aid to counties to 
 11.34  mitigate the impact resulting from the 
 11.35  loss of federal benefits to lawful 
 11.36  noncitizens.  From the total number of 
 11.37  persons losing SSI and food stamps, a 
 11.38  county shall be allocated money 
 11.39  proportionate to its share of persons 
 11.40  losing SSI and food stamps.  In the 
 11.41  allocation of funds, the commissioner 
 11.42  shall give double weight to the number 
 11.43  of persons losing SSI.  Money from this 
 11.44  allocation cannot be granted to persons 
 11.45  unless they were living in Minnesota on 
 11.46  September 1, 1996.  The number of 
 11.47  migrant legal noncitizens who applied 
 11.48  for assistance in Minnesota during 1996 
 11.49  will be used to determine an allocation 
 11.50  for counties designated as "migrant 
 11.51  counties."  Money from this allocation 
 11.52  cannot be granted to migrants unless 
 11.53  they applied for assistance during the 
 11.54  1996 migrant season.  The funds in this 
 11.55  provision shall not be used to replace 
 12.1   local funds. 
 12.2   (b) Assistance to Families - 
 12.3   County Management
 12.4          -0-            -0- 
 12.5   (c) Work Grants              
 12.6   General              13,786,000    13,792,000
 12.7   [AFDC SUPPLEMENTARY GRANTS.] Of the 
 12.8   appropriation for aid to families with 
 12.9   dependent children, the commissioner 
 12.10  shall provide supplementary grants not 
 12.11  to exceed $200,000 a year for aid to 
 12.12  families with dependent children until 
 12.13  the AFDC program no longer exists.  The 
 12.14  commissioner shall include the 
 12.15  following costs in determining the 
 12.16  amount of the supplementary grants:  
 12.17  major home repairs, repair of major 
 12.18  home appliances, utility recaps, 
 12.19  supplementary dietary needs not covered 
 12.20  by medical assistance, and replacements 
 12.21  of furnishings and essential major 
 12.22  appliances. 
 12.23  (d) Minnesota Family 
 12.24  Investment Plan
 12.25  General              23,704,000    10,022,000
 12.26  [MFIP TRANSFER.] Unexpended money 
 12.27  appropriated for the Minnesota family 
 12.28  investment plan in fiscal year 1998 
 12.29  does not cancel but is available for 
 12.30  those purposes in fiscal year 1999. 
 12.31  (e) Aid to Families With     
 12.32  Dependent Children
 12.33  General               8,197,000       -0-
 12.34  [CASH BENEFITS IN ADVANCE.] The 
 12.35  commissioner, with the advance approval 
 12.36  of the commissioner of finance, is 
 12.37  authorized to issue cash assistance 
 12.38  benefits up to two days before the 
 12.39  first day of each month, including two 
 12.40  days before the start of each state 
 12.41  fiscal year.  Of the money appropriated 
 12.42  for assistance to families grants for 
 12.43  fiscal year 1998, $12,000,000 is 
 12.44  available in fiscal year 1997.  If that 
 12.45  amount is insufficient for the costs 
 12.46  incurred, an additional amount of the 
 12.47  fiscal year 1998 appropriation as 
 12.48  needed may be transferred with the 
 12.49  advance approval of the commissioner of 
 12.50  finance.  This paragraph is effective 
 12.51  the day following final enactment. 
 12.52  (f) Child Support Enforcement
 12.53  General               5,759,000     5,559,000
 12.54  [PATERNITY ESTABLISHMENT.] Federal 
 12.55  matching funds from the hospital 
 12.56  acknowledgment reimbursement program 
 12.57  may be retained by the commissioner to 
 13.1   establish paternity in child support 
 13.2   cases.  These federal matching funds 
 13.3   are appropriated to the commissioner 
 13.4   and must be used for education and 
 13.5   public information concerning paternity 
 13.6   establishment and the prevention of 
 13.7   nonmarital births. 
 13.8   [MINNESOTA PARENTS' FAIR SHARE.] 
 13.9   Unexpended money appropriated for 
 13.10  Minnesota parents' fair share in fiscal 
 13.11  year 1998 does not cancel but is 
 13.12  available to the commissioner for this 
 13.13  program in fiscal year 1999. 
 13.14  [CHILD SUPPORT PAYMENT CENTER.] 
 13.15  Payments to the commissioner from other 
 13.16  governmental units, private 
 13.17  enterprises, and individuals for (1) 
 13.18  services performed by the Child Support 
 13.19  Payment Center, or (2) reports 
 13.20  generated by the payment and 
 13.21  eligibility systems must be deposited 
 13.22  in the state systems account authorized 
 13.23  in Minnesota Statutes, section 
 13.24  256.014.  These payments are 
 13.25  appropriated to the commissioner for 
 13.26  the operation of the Child Support 
 13.27  Payment Center or system, in accordance 
 13.28  with Minnesota Statutes, section 
 13.29  256.014. 
 13.30  [CHILD SUPPORT CARRYOVER.] Of the 
 13.31  appropriation for child support 
 13.32  enforcement, unexpended funds, 
 13.33  including grants and county performance 
 13.34  incentives, for fiscal year 1998 do not 
 13.35  cancel but are available to the 
 13.36  commissioner for the purposes of the 
 13.37  child support program for fiscal year 
 13.38  1999. 
 13.39  (g) General Assistance
 13.40  General              59,428,000    55,159,000
 13.41  [GA STANDARD.] The commissioner shall 
 13.42  set the monthly standard of assistance 
 13.43  for general assistance units consisting 
 13.44  of an adult recipient who is childless 
 13.45  and unmarried or living apart from his 
 13.46  or her parents or a legal guardian at 
 13.47  $203. 
 13.48  (h) Minnesota Supplemental Aid
 13.49  General              25,572,000    27,659,000
 13.50  (i) Refugee Services         
 13.51  General               1,905,000     1,605,000
 13.52  Subd. 11.  Economic Support  
 13.53  Management
 13.54  General              38,211,000    37,267,000
 13.55  Health Care
 13.56  Access                  219,000       224,000
 13.57  The amounts that may be spent from this 
 14.1   appropriation for each purpose are as 
 14.2   follows: 
 14.3   (a) Economic Support Policy  
 14.4   Administration
 14.5   General               9,019,000     8,411,000
 14.6   (b) Economic Support Policy  
 14.7   Operations
 14.8   General              29,192,000    28,856,000
 14.9   Health Care
 14.10  Access                  219,000       224,000
 14.11  [COMBINED MANUAL PRODUCTION COSTS.] For 
 14.12  the biennium ending June 30, 1999, the 
 14.13  commissioner may increase the fee 
 14.14  charged to, and may retain money 
 14.15  received from, individuals and private 
 14.16  entities in order to recover the 
 14.17  difference between the costs of 
 14.18  producing the department of human 
 14.19  services combined manual and the 
 14.20  subsidized price charged to individuals 
 14.21  and private entities on January 1, 
 14.22  1996.  This provision does not apply to 
 14.23  government agencies and nonprofit 
 14.24  agencies serving the legal or social 
 14.25  service needs of clients. 
 14.26  [CITIZENSHIP TRAINING.] The funds 
 14.27  appropriated for citizenship training 
 14.28  shall be awarded to nonprofit 
 14.29  organizations through a competitive 
 14.30  bidding process based on criteria 
 14.31  established by the commissioner of the 
 14.32  department of human services.  Notice 
 14.33  of the availability of funds shall be 
 14.34  published in the State Register. 
 14.35  (c) Assistance to Families   
 14.36  State Management
 14.37         -0-            -0-     
 14.38  Subd. 12.  Federal TANF Funds       
 14.39  [FEDERAL TANF FUNDS.] Federal Temporary 
 14.40  Assistance For Needy Families block 
 14.41  grant funds authorized under title I of 
 14.42  Public Law Number 104-193, the Personal 
 14.43  Responsibility and Work Opportunity Act 
 14.44  of 1996, are appropriated to the 
 14.45  department of human services in amounts 
 14.46  up to $284,674,000 in 1998 and 
 14.47  $267,985,000 in 1999.  Of these 
 14.48  amounts, $38,844,000 in 1998 and 
 14.49  $2,998,000 in 1999 must be deposited in 
 14.50  an account created within the federal 
 14.51  fund in the state treasury.  The 
 14.52  deposits must remain in the account 
 14.53  until appropriated to fund the 
 14.54  Minnesota Family Investment Program in 
 14.55  the 2000-2001 biennium. 
 14.56  Sec. 3.  COMMISSIONER OF HEALTH 
 14.57  Subdivision 1.  Total 
 14.58  Appropriation                         93,880,000    104,065,000
 15.1                 Summary by Fund
 15.2   General              62,936,000    71,335,000
 15.3   Metropolitan Landfill
 15.4   Contingency Action Fund 193,000       193,000
 15.5   State Government
 15.6   Special Revenue      21,594,000    21,848,000
 15.7   Health Care 
 15.8   Access                9,157,000    10,689,000
 15.9   [LANDFILL CONTINGENCY.] The 
 15.10  appropriation from the metropolitan 
 15.11  landfill contingency action fund is for 
 15.12  monitoring well water supplies and 
 15.13  conducting health assessments in the 
 15.14  metropolitan area. 
 15.15  [FEES.] When setting fees for the drug 
 15.16  and alcohol counselor license and the 
 15.17  hearing instrument dispensers license, 
 15.18  the department is exempt from Minnesota 
 15.19  Statutes, section 16A.1285, subdivision 
 15.20  2. 
 15.21  Subd. 2.  Health Systems
 15.22  and Special Populations               70,109,000     79,834,000
 15.23                Summary by Fund
 15.24  General              52,222,000    60,380,000
 15.25  State Government
 15.26  Special Revenue       8,879,000     8,916,000
 15.27  Health Care
 15.28  Access                9,008,000    10,538,000
 15.29  [STATE VITAL STATISTICS REDESIGN 
 15.30  PROJECT ACCOUNT.] The amount 
 15.31  appropriated from the state government 
 15.32  special revenue fund for the vital 
 15.33  records redesign project shall be 
 15.34  available until expended for ongoing 
 15.35  development and operations. 
 15.36  [WIC TRANSFERS.] General fund 
 15.37  appropriations for the women, infants, 
 15.38  and children food supplement program 
 15.39  (WIC) are available for either year of 
 15.40  the biennium.  Transfers of 
 15.41  appropriations between fiscal years 
 15.42  must be for the purpose of maximizing 
 15.43  federal funds or minimizing 
 15.44  fluctuations in the number of 
 15.45  participants.  
 15.46  [CARRYOVER.] Health care access fund 
 15.47  appropriations for student loan 
 15.48  forgiveness programs for health care 
 15.49  providers are available for either year 
 15.50  of the biennium. 
 15.51  [LOCAL PUBLIC HEALTH FINANCING.] Of the 
 15.52  general fund appropriation, $6,000,000 
 15.53  each year is for local public health 
 15.54  financing.  $5,800,000 each year shall 
 15.55  be distributed according to the 
 16.1   community health service subsidy 
 16.2   formula in Minnesota Statutes, section 
 16.3   145A.13.  $200,000 each year is for 
 16.4   technical assistance provided by the 
 16.5   commissioner under Minnesota Statutes, 
 16.6   section 145A.12. 
 16.7   [CARRYOVER.] General fund 
 16.8   appropriations for treatment services 
 16.9   in the services for children with 
 16.10  special health care needs program are 
 16.11  available for either year of the 
 16.12  biennium. 
 16.13  Subd. 3.  Health Protection          20,322,000     20,655,000
 16.14                Summary by Fund
 16.15  General               7,572,000     7,688,000
 16.16  Metro Landfill
 16.17  Contingency             193,000       193,000
 16.18  State Government 
 16.19  Special Revenue      12,557,000    12,774,000
 16.20  [SITE UTILITY CREDENTIALING.] Of the 
 16.21  appropriation from the state government 
 16.22  special revenue fund, $18,000 for 
 16.23  fiscal year 1999 is to support the 
 16.24  department of health's site utility 
 16.25  credentialing activities. 
 16.26  Subd. 4.  Management and
 16.27  Support Services                       3,449,000      3,576,000
 16.28                Summary by Fund
 16.29  General               3,142,000     3,267,000
 16.30  Health Care
 16.31  Access                  149,000       151,000
 16.32  State Government
 16.33  Special Revenue         158,000       158,000
 16.34  Sec. 4.  VETERANS NURSING   
 16.35  HOMES BOARD                           23,731,000     22,395,000 
 16.36  [SPECIAL REVENUE ACCOUNT.] The general 
 16.37  fund appropriations made to the 
 16.38  veterans homes board shall be 
 16.39  transferred to a veterans homes special 
 16.40  revenue account in the special revenue 
 16.41  fund in the same manner as other 
 16.42  receipts are deposited in accordance 
 16.43  with Minnesota Statutes, section 
 16.44  198.34, and are appropriated to the 
 16.45  veterans homes board of directors for 
 16.46  the operation of board facilities and 
 16.47  programs. 
 16.48  [SETTING THE COST OF CARE.] The 
 16.49  veterans homes board may set the cost 
 16.50  of care at the Fergus Falls facility 
 16.51  based on the cost of average skilled 
 16.52  nursing care provided to residents of 
 16.53  the Minneapolis veterans home for 
 16.54  fiscal years 1998 and 1999. 
 16.55  [LICENSED CAPACITY.] The department of 
 17.1   health shall not reduce the licensed 
 17.2   bed capacity for the Minneapolis 
 17.3   veterans home pending completion of the 
 17.4   project authorized by Laws 1990, 
 17.5   chapter 610, article 1, section 9, 
 17.6   subdivision 3.  
 17.7   [ALLOWANCE FOR FOOD.] The allowance for 
 17.8   food may be adjusted annually to 
 17.9   reflect changes in the producer price 
 17.10  index, as prepared by the United States 
 17.11  Bureau of Labor Statistics, with the 
 17.12  approval of the commissioner of 
 17.13  finance.  Adjustments for fiscal year 
 17.14  1998 and fiscal year 1999 must be based 
 17.15  on the June 1996 and June 1997 producer 
 17.16  price index respectively, but the 
 17.17  adjustment must be prorated if it would 
 17.18  require money in excess of the 
 17.19  appropriation. 
 17.20  Sec. 5.  HEALTH-RELATED BOARDS 
 17.21  Subdivision 1.  Total       
 17.22  Appropriation                          9,598,000      9,618,000 
 17.23  [STATE GOVERNMENT SPECIAL REVENUE 
 17.24  FUND.] The appropriations in this 
 17.25  section are from the state government 
 17.26  special revenue fund. 
 17.27  [NO SPENDING IN EXCESS OF REVENUES.] 
 17.28  The commissioner of finance shall not 
 17.29  permit the allotment, encumbrance, or 
 17.30  expenditure of money appropriated in 
 17.31  this section in excess of the 
 17.32  anticipated biennial revenues or 
 17.33  accumulated surplus revenues from fees 
 17.34  collected by the boards.  Neither this 
 17.35  provision nor Minnesota Statutes, 
 17.36  section 214.06, applies to transfers 
 17.37  from the general contingent account. 
 17.38  Subd. 2.  Board of Chiropractic 
 17.39  Examiners                                332,000        340,000
 17.40  Subd. 3.  Board of Dentistry             742,000        760,000
 17.41  Subd. 4.  Board of Dietetic
 17.42  and Nutrition Practice                    90,000         90,000
 17.43  Subd. 5.  Board of Marriage and 
 17.44  Family Therapy                           103,000        104,000
 17.45  Subd. 6.  Board of Medical  
 17.46  Practice                               3,672,000      3,711,000
 17.47  Of these appropriations, $291,000 the 
 17.48  first year and $296,000 the second year 
 17.49  are for the Health Professional 
 17.50  Services Activity. 
 17.51  Subd. 7.  Board of Nursing             2,067,000      2,106,000
 17.52  [DISCIPLINE AND LICENSING SYSTEMS 
 17.53  PROJECT.] Of this appropriation, 
 17.54  $235,000 the first year and $235,000 
 17.55  the second year is to complete the 
 17.56  implementation of the discipline and 
 17.57  licensing systems project.  
 18.1   Subd. 8.  Board of Nursing 
 18.2   Home Administrators                      177,000        181,000
 18.3   Subd. 9.  Board of Optometry              82,000         85,000
 18.4   Subd. 10.  Board of Pharmacy           1,020,000      1,040,000
 18.5   Of these appropriations, $216,000 the 
 18.6   first year and $222,000 the second year 
 18.7   are for the health boards 
 18.8   administrative services unit.  The 
 18.9   administrative services unit may 
 18.10  receive and expend reimbursements for 
 18.11  services performed for other agencies. 
 18.12  Subd. 11.  Board of Podiatry              33,000         33,000
 18.13  Subd. 12.  Board of Psychology           424,000        436,000
 18.14  Subd. 13.  Board of Social Work          715,000        588,000
 18.15  Subd. 14.  Board of Veterinary 
 18.16  Medicine                                 141,000        144,000
 18.17  Sec. 6.  EMERGENCY MEDICAL
 18.18  SERVICES BOARD                         2,236,000      2,262,000 
 18.19                Summary by Fund
 18.20  General                 584,000       584,000
 18.21  Trunk Highway         1,652,000     1,678,000
 18.22  Sec. 7.  COUNCIL ON DISABILITY           616,000        631,000
 18.23  Sec. 8.  OMBUDSMAN FOR MENTAL 
 18.24  HEALTH AND MENTAL RETARDATION          1,374,000      1,323,000
 18.25  [CARRYOVER.] $25,000 of the 
 18.26  appropriation from Laws 1995, chapter 
 18.27  207, article 1, section 7, does not 
 18.28  cancel but is available until June 30, 
 18.29  1999. 
 18.30  Sec. 9.  OMBUDSMAN
 18.31  FOR FAMILIES                             157,000        161,000
 18.32  Sec. 10.  TRANSFERS 
 18.33  Subdivision 1.  Entitlement programs
 18.34  Transfers of unencumbered 
 18.35  entitled grant and aid appropriations 
 18.36  for the biennium ending June 30, 1999.
 18.37  The commissioner of human services, 
 18.38  with the approval of the commissioner 
 18.39  of finance, and after notification of 
 18.40  the chair of the senate health care and 
 18.41  family services finance division and 
 18.42  the chair of the house of 
 18.43  representatives health and human 
 18.44  services finance division, may transfer 
 18.45  unencumbered appropriation balances for 
 18.46  the biennium ending June 30, 1999, 
 18.47  within fiscal years among the aid to 
 18.48  families with dependent children, aid 
 18.49  to families with dependent children 
 18.50  child care, Minnesota family investment 
 18.51  plan, general assistance, general 
 18.52  assistance medical care, medical 
 19.1   assistance, Minnesota supplemental aid, 
 19.2   group residential housing, and work 
 19.3   readiness programs, and the entitlement 
 19.4   portion of the chemical dependency 
 19.5   consolidated treatment fund, and 
 19.6   between fiscal years of the biennium. 
 19.7   Subd. 2.  Approval required 
 19.8   Positions, salary money, and nonsalary 
 19.9   administrative money may be transferred 
 19.10  within the departments of human 
 19.11  services and health and within the 
 19.12  programs operated by the veterans 
 19.13  nursing homes board as the 
 19.14  commissioners and the board consider 
 19.15  necessary, with the advance approval of 
 19.16  the commissioner of finance.  The 
 19.17  commissioners and the board shall 
 19.18  inform the chairs of the health and 
 19.19  human services finance division of the 
 19.20  house of representatives and the health 
 19.21  and family services finance division of 
 19.22  the senate quarterly about transfers 
 19.23  made under this provision. 
 19.24  Subd. 3.  Transfer 
 19.25  Funding appropriated by the legislature 
 19.26  may not be transferred to a different 
 19.27  department than that specified by the 
 19.28  legislature without legislative 
 19.29  authority. 
 19.30  Sec. 11.  PROVISIONS  
 19.31  (a) Money appropriated to the 
 19.32  commissioner of human services for the 
 19.33  purchase of provisions within the item 
 19.34  "current expense" must be used solely 
 19.35  for that purpose.  Money provided and 
 19.36  not used for the purchase of provisions 
 19.37  must be canceled into the fund from 
 19.38  which appropriated, except that money 
 19.39  provided and not used for the purchase 
 19.40  of provisions because of population 
 19.41  decreases may be transferred and used 
 19.42  for the purchase of drugs and medical 
 19.43  and hospital supplies and equipment 
 19.44  with written approval of the governor 
 19.45  after consultation with the legislative 
 19.46  advisory commission. 
 19.47  (b) For fiscal year 1998, the allowance 
 19.48  for food may be adjusted to the 
 19.49  equivalent of the 75th percentile of 
 19.50  the comparable raw food costs for 
 19.51  community nursing homes as reported to 
 19.52  the commissioner of human services.  
 19.53  For fiscal year 1999 an adjustment may 
 19.54  be made to reflect the annual change in 
 19.55  the United States Bureau of Labor 
 19.56  Statistics producer price index as of 
 19.57  June 1998 with the approval of the 
 19.58  commissioner of finance.  The 
 19.59  adjustments for either year must be 
 19.60  prorated if they would require money in 
 19.61  excess of this appropriation. 
 19.62  Sec. 12.  CARRYOVER LIMITATION
 20.1   None of the appropriations in this act 
 20.2   which are allowed to be carried forward 
 20.3   from fiscal year 1998 to fiscal year 
 20.4   1999 shall become part of the base 
 20.5   level funding for the 2000-2001 
 20.6   biennial budget, unless specifically 
 20.7   directed by the legislature. 
 20.8   Sec. 13.  SUNSET OF UNCODIFIED LANGUAGE
 20.9   All uncodified language contained in 
 20.10  this article expires on June 30, 1999, 
 20.11  unless a different expiration is 
 20.12  explicit. 
 20.13                             ARTICLE 2
 20.14                     CHILD SUPPORT ENFORCEMENT
 20.15     Section 1.  Minnesota Statutes 1996, section 13.46, 
 20.16  subdivision 2, is amended to read: 
 20.17     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
 20.18  a statute specifically provides a different classification, data 
 20.19  on individuals collected, maintained, used, or disseminated by 
 20.20  the welfare system is private data on individuals, and shall not 
 20.21  be disclosed except:  
 20.22     (1) pursuant according to section 13.05; 
 20.23     (2) pursuant according to court order; 
 20.24     (3) pursuant according to a statute specifically 
 20.25  authorizing access to the private data; 
 20.26     (4) to an agent of the welfare system, including a law 
 20.27  enforcement person, attorney, or investigator acting for it in 
 20.28  the investigation or prosecution of a criminal or civil 
 20.29  proceeding relating to the administration of a program; 
 20.30     (5) to personnel of the welfare system who require the data 
 20.31  to determine eligibility, amount of assistance, and the need to 
 20.32  provide services of additional programs to the individual; 
 20.33     (6) to administer federal funds or programs; 
 20.34     (7) between personnel of the welfare system working in the 
 20.35  same program; 
 20.36     (8) the amounts of cash public assistance and relief paid 
 20.37  to welfare recipients in this state, including their names, 
 20.38  social security numbers, income, addresses, and other data as 
 20.39  required, upon request by the department of revenue to 
 20.40  administer the property tax refund law, supplemental housing 
 21.1   allowance, early refund of refundable tax credits, and the 
 21.2   income tax.  "Refundable tax credits" means the dependent care 
 21.3   credit under section 290.067, the Minnesota working family 
 21.4   credit under section 290.0671, the property tax refund under 
 21.5   section 290A.04, and, if the required federal waiver or waivers 
 21.6   are granted, the federal earned income tax credit under section 
 21.7   32 of the Internal Revenue Code; 
 21.8      (9) to the Minnesota department of economic security for 
 21.9   the purpose of monitoring the eligibility of the data subject 
 21.10  for reemployment insurance, for any employment or training 
 21.11  program administered, supervised, or certified by that agency, 
 21.12  or for the purpose of administering any rehabilitation program, 
 21.13  whether alone or in conjunction with the welfare system, and to 
 21.14  verify receipt of energy assistance for the telephone assistance 
 21.15  plan; 
 21.16     (10) to appropriate parties in connection with an emergency 
 21.17  if knowledge of the information is necessary to protect the 
 21.18  health or safety of the individual or other individuals or 
 21.19  persons; 
 21.20     (11) data maintained by residential programs as defined in 
 21.21  section 245A.02 may be disclosed to the protection and advocacy 
 21.22  system established in this state pursuant according to Part C of 
 21.23  Public Law Number 98-527 to protect the legal and human rights 
 21.24  of persons with mental retardation or other related conditions 
 21.25  who live in residential facilities for these persons if the 
 21.26  protection and advocacy system receives a complaint by or on 
 21.27  behalf of that person and the person does not have a legal 
 21.28  guardian or the state or a designee of the state is the legal 
 21.29  guardian of the person; 
 21.30     (12) to the county medical examiner or the county coroner 
 21.31  for identifying or locating relatives or friends of a deceased 
 21.32  person; 
 21.33     (13) data on a child support obligor who makes payments to 
 21.34  the public agency may be disclosed to the higher education 
 21.35  services office to the extent necessary to determine eligibility 
 21.36  under section 136A.121, subdivision 2, clause (5); 
 22.1      (14) participant social security numbers and names 
 22.2   collected by the telephone assistance program may be disclosed 
 22.3   to the department of revenue to conduct an electronic data match 
 22.4   with the property tax refund database to determine eligibility 
 22.5   under section 237.70, subdivision 4a; 
 22.6      (15) the current address of a recipient of aid to families 
 22.7   with dependent children may be disclosed to law enforcement 
 22.8   officers who provide the name and social security number of the 
 22.9   recipient and satisfactorily demonstrate that:  (i) the 
 22.10  recipient is a fugitive felon, including the grounds for this 
 22.11  determination; (ii) the location or apprehension of the felon is 
 22.12  within the law enforcement officer's official duties; and (iii) 
 22.13  the request is made in writing and in the proper exercise of 
 22.14  those duties; 
 22.15     (16) the current address of a recipient of general 
 22.16  assistance, work readiness, or general assistance medical care 
 22.17  may be disclosed to probation officers and corrections agents 
 22.18  who are supervising the recipient, and to law enforcement 
 22.19  officers who are investigating the recipient in connection with 
 22.20  a felony level offense; 
 22.21     (17) information obtained from food stamp applicant or 
 22.22  recipient households may be disclosed to local, state, or 
 22.23  federal law enforcement officials, upon their written request, 
 22.24  for the purpose of investigating an alleged violation of the 
 22.25  food stamp act, in accordance with Code of Federal Regulations, 
 22.26  title 7, section 272.1(c); 
 22.27     (18) data on a child support obligor who is in arrears may 
 22.28  be disclosed for purposes of publishing the data pursuant 
 22.29  according to section 518.575; 
 22.30     (19) data on child support payments made by a child support 
 22.31  obligor may be disclosed to the obligee; 
 22.32     (20) data in the work reporting system may be disclosed 
 22.33  under section 256.998, subdivision 7; 
 22.34     (21) to the department of children, families, and learning 
 22.35  for the purpose of matching department of children, families, 
 22.36  and learning student data with public assistance data to 
 23.1   determine students eligible for free and reduced price meals, 
 23.2   meal supplements, and free milk pursuant according to United 
 23.3   States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 
 23.4   and 1773; to produce accurate numbers of students receiving aid 
 23.5   to families with dependent children as required by section 
 23.6   124.175; and to allocate federal and state funds that are 
 23.7   distributed based on income of the student's family; or 
 23.8      (22) the current address and telephone number of program 
 23.9   recipients and emergency contacts may be released to the 
 23.10  commissioner of health or a local board of health as defined in 
 23.11  section 145A.02, subdivision 2, when the commissioner or local 
 23.12  board of health has reason to believe that a program recipient 
 23.13  is a disease case, carrier, suspect case, or at risk of illness, 
 23.14  and the data are necessary to locate the person.; 
 23.15     (23) to other agencies, statewide systems, political 
 23.16  subdivisions of this state, agencies of other states, interstate 
 23.17  information networks, federal agencies, and other entities as 
 23.18  required by federal regulation or law governing the child 
 23.19  support enforcement program as necessary for the administration 
 23.20  of the child support enforcement program or when otherwise 
 23.21  authorized by law; or 
 23.22     (24) data regarding an individual whose license, permit, 
 23.23  registration, or stamp has been suspended by direction of the 
 23.24  public authority responsible for child support enforcement, 
 23.25  shall be treated in the same manner as similar data maintained 
 23.26  by the suspending licensing board or agency when received by 
 23.27  that board or agency. 
 23.28     (b) Information on persons who have been treated for drug 
 23.29  or alcohol abuse may only be disclosed in accordance with the 
 23.30  requirements of Code of Federal Regulations, title 42, sections 
 23.31  2.1 to 2.67. 
 23.32     (c) Data provided to law enforcement agencies under 
 23.33  paragraph (a), clause (15), (16), or (17), or paragraph (b), are 
 23.34  investigative data and are confidential or protected nonpublic 
 23.35  while the investigation is active.  The data are private after 
 23.36  the investigation becomes inactive under section 13.82, 
 24.1   subdivision 5, paragraph (a) or (b). 
 24.2      (d) Mental health data shall be treated as provided in 
 24.3   subdivisions 7, 8, and 9, but is not subject to the access 
 24.4   provisions of subdivision 10, paragraph (b). 
 24.5      Sec. 2.  Minnesota Statutes 1996, section 13.99, is amended 
 24.6   by adding a subdivision to read: 
 24.7      Subd. 101d.  [CHILD SUPPORT PARTIES.] Certain data 
 24.8   regarding the location of parties in connection with child 
 24.9   support proceedings are governed by sections 256.87, subdivision 
 24.10  8; 257.70; and 518.005, subdivision 5. 
 24.11     Sec. 3.  Minnesota Statutes 1996, section 144.223, is 
 24.12  amended to read: 
 24.13     144.223 [REPORT OF MARRIAGE.] 
 24.14     Data relating to certificates of marriage registered shall 
 24.15  be reported to the state registrar by the local registrars 
 24.16  pursuant according to the rules of the commissioner.  The 
 24.17  information necessary to compile the report shall be furnished 
 24.18  by the applicant prior to the issuance of the marriage license.  
 24.19  The report shall contain the following information: 
 24.20     A. Personal information on bride and groom: 
 24.21     1. Name; 
 24.22     2. Residence; 
 24.23     3. Date and place of birth; 
 24.24     4. Race; 
 24.25     5. If previously married, how terminated; 
 24.26     6. Signature of applicant and date signed; and 
 24.27     7. Social security number. 
 24.28     B. Information concerning the marriage: 
 24.29     1. Date of marriage; 
 24.30     2. Place of marriage; and 
 24.31     3. Civil or religious ceremony. 
 24.32     Sec. 4.  [256.741] [CHILD SUPPORT AND MAINTENANCE.] 
 24.33     Subdivision 1.  [ASSIGNMENT OF SUPPORT AND MAINTENANCE 
 24.34  RIGHTS.] An applicant for assistance, or a recipient of 
 24.35  assistance, under chapter 256J or an applicant or recipient for 
 24.36  whom foster care maintenance is provided under Title IV-E of the 
 25.1   Social Security Act assigns to the public agency responsible for 
 25.2   child support enforcement at the time of application all rights 
 25.3   to child support and maintenance received from any person that 
 25.4   the applicant may have for the applicant's own behalf or on 
 25.5   behalf of any other family member for whom application is made 
 25.6   under chapter 256J or Title IV-E.  The assignment:  
 25.7      (1) applies to both current and accrued child support and 
 25.8   maintenance obligations; 
 25.9      (2) takes effect upon a determination that the applicant is 
 25.10  eligible for assistance under chapter 256J or that the applicant 
 25.11  or family member is eligible for foster care maintenance under 
 25.12  Title IV-E of the Social Security Act; 
 25.13     (3) terminates when an applicant ceases to receive 
 25.14  assistance under chapter 256J or when the applicant or family 
 25.15  member ceases to receive foster care maintenance under Title 
 25.16  IV-E of the Social Security Act, except with respect to the 
 25.17  amount of any unpaid support or maintenance obligation, or both, 
 25.18  under the assignment.  
 25.19     Subd. 2.  [COOPERATION WITH CHILD SUPPORT ENFORCEMENT.] 
 25.20  After notification from the public authority responsible for 
 25.21  financial assistance that an individual has applied for any form 
 25.22  of public assistance as defined in subdivision 8, the public 
 25.23  authority responsible for child support enforcement shall 
 25.24  determine whether the party is cooperating in establishing 
 25.25  paternity, child support, modification of an existing child 
 25.26  support order, or enforcement of an existing child support 
 25.27  order.  Cooperation by the potential recipient includes the 
 25.28  following: 
 25.29     (1) providing all known information regarding the alleged 
 25.30  father or obligor including name, address, social security 
 25.31  number, telephone number, place of employment or school, and the 
 25.32  names and addresses of any relatives, if known; 
 25.33     (2) appearing at interviews, hearings, and legal 
 25.34  proceedings; 
 25.35     (3) submitting to genetic tests, including genetic testing 
 25.36  of the child; and 
 26.1      (4) providing any additional information necessary for 
 26.2   cooperating in good faith with the child support enforcement 
 26.3   agency. 
 26.4      Subd. 3.  [DETERMINATION.] (a) The public authority 
 26.5   responsible for child support enforcement shall consider the 
 26.6   best interests of the child when determining cooperation.  If 
 26.7   the individual cannot provide the information required in this 
 26.8   section, before a determination is made on whether the 
 26.9   individual is cooperating in establishing paternity, the child 
 26.10  support agency shall make a finding that the individual could 
 26.11  not reasonably be expected to provide the information.  In 
 26.12  making this finding, the public authority responsible for child 
 26.13  support enforcement shall consider: 
 26.14     (1) the age of the child for whom support is being sought; 
 26.15     (2) the circumstances surrounding the conception of the 
 26.16  child; 
 26.17     (3) the age and mental capacity of the parent or caregiver 
 26.18  of the child for whom support is being sought; and 
 26.19     (4) the time that has elapsed since the parent or caregiver 
 26.20  of the child for whom support is being sought last had contact 
 26.21  with the alleged father or obligor or the person's relatives. 
 26.22     (b) Unless good cause is found to exist under subdivision 
 26.23  4, if a determination of noncooperation is made, the public 
 26.24  authority shall promptly notify the individual and the state 
 26.25  agency administering the public assistance program that the 
 26.26  individual is not cooperating with the public authority.  Upon 
 26.27  notice of noncooperation, the individual shall be sanctioned 
 26.28  under section 256.031 and chapter 256J. 
 26.29     Subd. 4.  [GOOD CAUSE EXEMPTION.] (a) Cooperation with 
 26.30  child support under subdivision 10 is waived if the individual 
 26.31  asserts, and the agency finds, good cause exists for failing to 
 26.32  cooperate.  An individual may claim a good cause exemption by 
 26.33  filing a written claim on a form provided by the commissioner of 
 26.34  human services.  Upon receipt of a claim for a good cause 
 26.35  exemption, the public authority shall cease all support 
 26.36  enforcement efforts until the claim for a good cause exemption 
 27.1   is reviewed and validity of the claim is determined.  Designated 
 27.2   representatives from the public authority and at least one 
 27.3   representative from an agency providing public assistance as 
 27.4   defined in subdivision 8 shall review each claim for a good 
 27.5   cause exemption and determine validity of the claim according to 
 27.6   this section. 
 27.7      (b) Good cause exists when an individual documents that 
 27.8   pursuit of child support enforcement services could reasonably 
 27.9   result in: 
 27.10     (1) physical or emotional harm to the child for whom 
 27.11  support is sought; 
 27.12     (2) physical harm to the parent or caregiver with whom the 
 27.13  child is living that would reduce that person's ability to 
 27.14  adequately care for the child; or 
 27.15     (3) emotional harm to the parent or caregiver with whom the 
 27.16  child is living to such a nature or degree that would reduce the 
 27.17  person's ability to adequately care for the child. 
 27.18     (c) Good cause also exists when the agency believes that 
 27.19  pursuing child support enforcement would be detrimental to the 
 27.20  child for whom support is sought and an individual documents any 
 27.21  of the following: 
 27.22     (1) the child for whom child support enforcement is sought 
 27.23  was conceived as a result of incest or rape; 
 27.24     (2) legal proceedings for the adoption of the child are 
 27.25  pending before a court of competent jurisdiction; or 
 27.26     (3) the parent or caregiver of the child is currently being 
 27.27  assisted by a public or licensed private social service agency 
 27.28  to resolve the issues of whether to keep the child or place the 
 27.29  child for adoption, and assistance has not occurred for longer 
 27.30  than three months. 
 27.31     (d) The physical and emotional harm under paragraph (b) 
 27.32  must be of a serious nature in order to justify a finding for 
 27.33  good cause exemption.  A finding for good cause exemption based 
 27.34  on emotional harm may only be based upon a demonstration of 
 27.35  emotional impairment that substantially affects the individual's 
 27.36  ability to function.  
 28.1      Subd. 5.  [PROOF OF GOOD CAUSE.] (a) An individual claiming 
 28.2   good cause exemption has 20 days from the date the claim for 
 28.3   good cause exemption was provided to the agency to supply 
 28.4   evidence supporting the claim.  Failure to provide the evidence 
 28.5   shall result in the public authority resuming child support 
 28.6   enforcement efforts. 
 28.7      (b) Evidence supporting a claim for good cause exemption 
 28.8   includes, but is not limited to, the following: 
 28.9      (1) birth certificates or medical or law enforcement 
 28.10  records which indicate that the child was conceived as the 
 28.11  result of incest or rape; 
 28.12     (2) court documents or other records which indicate that 
 28.13  legal proceedings for adoption are pending before a court of 
 28.14  competent jurisdiction; 
 28.15     (3) court, medical, criminal, child protective services, 
 28.16  social services, psychological, or law enforcement records which 
 28.17  indicate that the alleged father or obligor might inflict 
 28.18  physical or emotional harm on the child, parent, or caregiver; 
 28.19     (4) medical records or written statements from a licensed 
 28.20  medical professional which document the emotional health history 
 28.21  or status of the custodial parent, child, or caregiver, or that 
 28.22  document a diagnosis or prognosis concerning the emotional 
 28.23  health of the custodial parent, child, or caregiver; 
 28.24     (5) a written statement from an agency described in 
 28.25  subdivision 4, paragraph (c), clause (3), that indicates the 
 28.26  individual is deciding whether to keep the child or place the 
 28.27  child for adoption; or 
 28.28     (6) sworn statements from individuals other than the 
 28.29  applicant that provide evidence supporting the claim for a good 
 28.30  cause exemption. 
 28.31     Subd. 6.  [DECISION.] A good cause exemption shall be made 
 28.32  if the individual's claim and the investigation of the 
 28.33  supporting evidence satisfies the investigating agencies that 
 28.34  the individual has good cause for refusing to cooperate. 
 28.35     Subd. 7.  [AGENCY OPTION.] At the option of the public 
 28.36  authority after making a finding of good cause, the public 
 29.1   authority may make a determination that the child support 
 29.2   enforcement agency should resume child support enforcement 
 29.3   services without the cooperation of the parent or caregiver.  If 
 29.4   a determination is made, the public authority shall make the 
 29.5   determination in writing, which includes: 
 29.6      (1) the basis for the determination; 
 29.7      (2) provisions for entering the written determination in 
 29.8   the parent's or caregiver's financial assistance case record; 
 29.9   and 
 29.10     (3) notification to the parent or caregiver that the 
 29.11  application for financial assistance may be withdrawn or that 
 29.12  the parent or caregiver may request that the financial 
 29.13  assistance case be closed. 
 29.14     Subd. 8.  [PUBLIC ASSISTANCE.] "Public assistance," as used 
 29.15  in this chapter and chapters 257, 518, and 518C, includes any 
 29.16  form of assistance provided under Title IV-A of the Social 
 29.17  Security Act, any form of medical assistance under United States 
 29.18  Code, title 19, and foster care provided under Title IV-E of the 
 29.19  Social Security Act. 
 29.20     Sec. 5.  Minnesota Statutes 1996, section 256.87, 
 29.21  subdivision 1, is amended to read: 
 29.22     Subdivision 1.  [ACTIONS AGAINST PARENTS FOR ASSISTANCE 
 29.23  FURNISHED.] A parent of a child is liable for the amount of 
 29.24  assistance furnished under sections 256.031 to 256.0361, 256.72 
 29.25  to 256.87, or under Title IV-A or IV-E of the Social Security 
 29.26  Act or medical assistance under chapter 256, 256B, or 256D to 
 29.27  and for the benefit of the child, including any assistance 
 29.28  furnished for the benefit of the caretaker of the child, which 
 29.29  the parent has had the ability to pay.  Ability to pay must be 
 29.30  determined according to chapter 518.  The parent's liability is 
 29.31  limited to the two years immediately preceding the commencement 
 29.32  of the action, except that where child support has been 
 29.33  previously ordered, the state or county agency providing the 
 29.34  assistance, as assignee of the obligee, shall be entitled to 
 29.35  judgments for child support payments accruing within ten years 
 29.36  preceding the date of the commencement of the action up to the 
 30.1   full amount of assistance furnished.  The action may be ordered 
 30.2   by the state agency or county agency and shall be brought in the 
 30.3   name of the county by the county attorney of the county in which 
 30.4   the assistance was granted, or by in the name of the state 
 30.5   agency against the parent for the recovery of the amount of 
 30.6   assistance granted, together with the costs and disbursements of 
 30.7   the action. 
 30.8      Sec. 6.  Minnesota Statutes 1996, section 256.87, 
 30.9   subdivision 1a, is amended to read: 
 30.10     Subd. 1a.  [CONTINUING SUPPORT CONTRIBUTIONS.] In addition 
 30.11  to granting the county or state agency a money judgment, the 
 30.12  court may, upon a motion or order to show cause, order 
 30.13  continuing support contributions by a parent found able to 
 30.14  reimburse the county or state agency.  The order shall be 
 30.15  effective for the period of time during which the recipient 
 30.16  receives public assistance from any county or state agency and 
 30.17  thereafter.  The order shall require support according to 
 30.18  chapter 518.  An order for continuing contributions is 
 30.19  reinstated without further hearing upon notice to the parent by 
 30.20  any county or state agency that assistance is again being 
 30.21  provided for the child of the parent under sections 256.031 to 
 30.22  256.0361, 256.72 to 256.87, or under Title IV-A or IV-E of the 
 30.23  Social Security Act or medical assistance under chapter 256, 
 30.24  256B, or 256D.  The notice shall be in writing and shall 
 30.25  indicate that the parent may request a hearing for modification 
 30.26  of the amount of support or maintenance. 
 30.27     Sec. 7.  Minnesota Statutes 1996, section 256.87, 
 30.28  subdivision 3, is amended to read: 
 30.29     Subd. 3.  [CONTINUING CONTRIBUTIONS TO FORMER RECIPIENT.] 
 30.30  The order for continuing support contributions shall remain in 
 30.31  effect following the period after public assistance granted 
 30.32  under sections 256.72 to 256.87 Title IV-A or IV-E of the Social 
 30.33  Security Act is terminated unless the former recipient files an 
 30.34  affidavit with the court requesting termination of the order.  
 30.35     Sec. 8.  Minnesota Statutes 1996, section 256.87, 
 30.36  subdivision 5, is amended to read: 
 31.1      Subd. 5.  [CHILD NOT RECEIVING ASSISTANCE.] A person or 
 31.2   entity having physical custody of a dependent child not 
 31.3   receiving assistance under sections 256.031 to 256.0361, or 
 31.4   256.72 to 256.87 Title IV-A or IV-E of the Social Security Act 
 31.5   has a cause of action for child support against the child's 
 31.6   absent parents.  Upon a motion served on the absent parent, the 
 31.7   court shall order child support payments from the absent parent 
 31.8   under chapter 518.  The absent parent's liability may include up 
 31.9   to the two years immediately preceding the commencement of the 
 31.10  action.  This subdivision applies only if the person or entity 
 31.11  has physical custody with the consent of a custodial parent or 
 31.12  approval of the court.  
 31.13     Sec. 9.  Minnesota Statutes 1996, section 256.87, is 
 31.14  amended by adding a subdivision to read: 
 31.15     Subd. 8.  [DISCLOSURE PROHIBITED.] In all proceedings under 
 31.16  this chapter, information on the location of one party may not 
 31.17  be disclosed by the public authority to the other party if: 
 31.18     (1) a protective order with respect to the other party has 
 31.19  been entered; or 
 31.20     (2) the public authority responsible for child support 
 31.21  enforcement has reason to believe that the release of the 
 31.22  information may result in physical or emotional harm to the 
 31.23  other party. 
 31.24     Sec. 10.  Minnesota Statutes 1996, section 256.978, 
 31.25  subdivision 1, is amended to read: 
 31.26     Subdivision 1.  [REQUEST FOR INFORMATION.] The commissioner 
 31.27  of human services, in order to locate a person to establish 
 31.28  paternity, and child support or to modify or enforce child 
 31.29  support, or to enforce a child support obligation in arrears, 
 31.30  may request information reasonably necessary to the inquiry from 
 31.31  the records of all departments, boards, bureaus, or other 
 31.32  agencies of this state, which shall, notwithstanding the 
 31.33  provisions of section 268.12, subdivision 12, or any other law 
 31.34  to the contrary, provide the information necessary for this 
 31.35  purpose.  Employers, utility companies, insurance companies, 
 31.36  financial institutions, and labor associations doing business in 
 32.1   this state shall provide information as provided under 
 32.2   subdivision 2 upon written or electronic request by an agency 
 32.3   responsible for child support enforcement regarding individuals 
 32.4   owing or allegedly owing a duty to support within 30 days of the 
 32.5   receipt service of the written request made by the public 
 32.6   authority.  Information requested and used or transmitted by the 
 32.7   commissioner pursuant according to the authority conferred by 
 32.8   this section may be made available only to public officials and 
 32.9   agencies of this state and its political subdivisions and other 
 32.10  states of the union and their political subdivisions who are 
 32.11  seeking to enforce the support liability of parents or to locate 
 32.12  parents.  The commissioner may not release the information to an 
 32.13  agency or political subdivision of another state unless the 
 32.14  agency or political subdivision is directed to maintain the data 
 32.15  consistent with its classification in this state.  Information 
 32.16  obtained under this section may not be released except to the 
 32.17  extent necessary for the administration of the child support 
 32.18  enforcement program or when otherwise authorized by law. to 
 32.19  other agencies, statewide systems, political subdivisions of 
 32.20  this state, agencies of other states, interstate information 
 32.21  networks, federal agencies, and other entities as required by 
 32.22  federal regulation or law governing the child support 
 32.23  enforcement program as necessary for the administration of the 
 32.24  child support enforcement program or when otherwise authorized 
 32.25  by law.  
 32.26     Sec. 11.  Minnesota Statutes 1996, section 256.978, 
 32.27  subdivision 2, is amended to read: 
 32.28     Subd. 2.  [ACCESS TO INFORMATION.] (a) A written request 
 32.29  for information by the public authority responsible for child 
 32.30  support may be made to: 
 32.31     (1) employers when there is reasonable cause to believe 
 32.32  that the subject of the inquiry is or was an employee or 
 32.33  independent contractor of the employer.  Information to be 
 32.34  released by employers is limited to place of residence, 
 32.35  employment status, wage or payment information, benefit 
 32.36  information, and social security number; 
 33.1      (2) utility companies when there is reasonable cause to 
 33.2   believe that the subject of the inquiry is or was a retail 
 33.3   customer of the utility company.  Customer information to be 
 33.4   released by utility companies is limited to place of residence, 
 33.5   home telephone, work telephone, source of income, employer and 
 33.6   place of employment, and social security number; 
 33.7      (3) insurance companies when there is an arrearage of child 
 33.8   support and there is reasonable cause to believe that the 
 33.9   subject of the inquiry is or was receiving funds either in the 
 33.10  form of a lump sum or periodic payments.  Information to be 
 33.11  released by insurance companies is limited to place of 
 33.12  residence, home telephone, work telephone, employer, social 
 33.13  security number, and amounts and type of payments made to the 
 33.14  subject of the inquiry; 
 33.15     (4) labor organizations when there is reasonable cause to 
 33.16  believe that the subject of the inquiry is or was a member of 
 33.17  the labor association.  Information to be released by labor 
 33.18  associations is limited to place of residence, home telephone, 
 33.19  work telephone, social security number, and current and past 
 33.20  employment information; and 
 33.21     (5) financial institutions when there is an arrearage of 
 33.22  child support and there is reasonable cause to believe that the 
 33.23  subject of the inquiry has or has had accounts, stocks, loans, 
 33.24  certificates of deposits, treasury bills, life insurance 
 33.25  policies, or other forms of financial dealings with the 
 33.26  institution.  Information to be released by the financial 
 33.27  institution is limited to place of residence, home telephone, 
 33.28  work telephone, identifying information on the type of financial 
 33.29  relationships, social security number, current value of 
 33.30  financial relationships, and current indebtedness of the subject 
 33.31  with the financial institution. 
 33.32     (b) For purposes of this subdivision, utility companies 
 33.33  include companies that provide electrical, telephone, natural 
 33.34  gas, propane gas, oil, coal, or cable television services to 
 33.35  retail customers.  The term financial institution includes 
 33.36  banks, savings and loans, credit unions, brokerage firms, 
 34.1   mortgage companies, and insurance companies., benefit 
 34.2   associations, safe deposit companies, administrators of money 
 34.3   market mutual funds, or similar entities authorized to do 
 34.4   business in the state.  
 34.5      Sec. 12.  [256.9781] [DATA MATCH SYSTEM.] 
 34.6      Subdivision 1.  [FINANCIAL INSTITUTION DATA MATCHES.] For 
 34.7   purposes of this section, the following terms have the meanings 
 34.8   given them: 
 34.9      (a) "Account" means a demand deposit account, checking or 
 34.10  negotiable withdrawal order account, line of credit, savings 
 34.11  account, time deposit account, or money market mutual fund. 
 34.12     (b) "Account information" means the type of account; the 
 34.13  account number; whether the account is singly or jointly owned; 
 34.14  in the case of jointly owned accounts, the name and address of 
 34.15  the nonobligor account owner; the amount of the funds held in 
 34.16  the account; and in the case of a line of credit, the amount of 
 34.17  credit available. 
 34.18     (c) "Financial institution" means any of the following that 
 34.19  do business in the state: 
 34.20     (1) federal and state commercial savings banks, including 
 34.21  savings and loan associations and cooperative banks; 
 34.22     (2) federal and state chartered credit unions; 
 34.23     (3) benefit associations; 
 34.24     (4) insurance companies; 
 34.25     (5) safe deposit companies; 
 34.26     (6) money market mutual funds; and 
 34.27     (7) any similar entity authorized to do business in the 
 34.28  state. 
 34.29     (d) "Public authority" means the public authority 
 34.30  responsible for child support enforcement. 
 34.31     Subd. 2.  [DATA MATCH SYSTEM ESTABLISHED.] The commissioner 
 34.32  of human services shall establish a process for the comparison 
 34.33  of account information data held by financial institutions with 
 34.34  the public authority's database of child support obligors.  The 
 34.35  commissioner shall make reasonable efforts to inform the 
 34.36  financial industry of the requirements of this section and the 
 35.1   process that financial institutions must comply with.  The 
 35.2   commissioner may contract for services to carry out the 
 35.3   provisions of this section. 
 35.4      Subd. 3.  [DUTY TO PROVIDE DATA; MEANS.] (a) As required by 
 35.5   federal law, a financial institution shall provide to the public 
 35.6   authority on a quarterly basis the name, address, social 
 35.7   security number, tax identification number, and all account 
 35.8   information for each noncustodial parent who maintains an 
 35.9   account at the financial institution and who owes past due 
 35.10  support, as identified by the department by name and social 
 35.11  security number or other taxpayer identification number. 
 35.12     (b) A financial institution may provide the required data 
 35.13  by submitting electronic media in a compatible format or 
 35.14  delivering, mailing, or telefaxing a copy of the data by other 
 35.15  means authorized by the commissioner of human services that will 
 35.16  result in timely reporting. 
 35.17     Subd. 4.  [SEIZURE.] (a) Upon receipt of a notice of lien 
 35.18  from the public authority, financial institutions shall freeze 
 35.19  the funds or assets described in the notice and shall not permit 
 35.20  the funds or assets to be withdrawn or disposed of until further 
 35.21  notice by the public authority.  
 35.22     (b) The public authority and the financial institution 
 35.23  receiving the notice of lien shall not provide the obligor with 
 35.24  notice prior to freezing the funds or assets, but may notify the 
 35.25  obligor any time after the funds or assets are frozen. 
 35.26     Subd. 5.  [RIGHT OF SETOFF.] Upon receipt of a notice of 
 35.27  lien, a financial institution shall not have the right to set 
 35.28  off any debts owed by the obligor to the financial institution 
 35.29  unless the financial institution can show the obligor was 
 35.30  insolvent as defined in this subdivision prior to receiving the 
 35.31  notice of lien. 
 35.32     For purposes of this subdivision, "insolvent" means a 
 35.33  person who has ceased to pay debts in the ordinary course of 
 35.34  business or cannot pay the debts as they become due. 
 35.35     Subd. 6.  [FAILURE TO RESPOND TO REQUEST FOR 
 35.36  INFORMATION.] The public authority shall send by certified mail 
 36.1   a written notice to any financial institution that fails to 
 36.2   respond to a request for information under this section.  The 
 36.3   notice of noncompliance must explain the requirements under this 
 36.4   section and advise the entity of the penalty for noncompliance.  
 36.5   A financial institution that receives a notice of noncompliance 
 36.6   and later incurs a second violation is subject to a civil 
 36.7   penalty of $25 for each failure to respond.  An entity that 
 36.8   incurs more than two violations is subject to a civil penalty of 
 36.9   $500 for each failure to respond.  These penalties may be 
 36.10  imposed and collected by the public authority. 
 36.11     Subd. 7.  [IMMUNITY.] A financial institution that provides 
 36.12  information under this section shall not be liable to any person 
 36.13  for disclosing the information required by this section, for 
 36.14  encumbering or surrendering assets of any obligor, or in good 
 36.15  faith for taking any other action as authorized by this 
 36.16  section.  A financial institution that receives data from the 
 36.17  public authority under this section is not immune and shall be 
 36.18  held liable for any unauthorized disclosure of that data as 
 36.19  required by chapter 13. 
 36.20     Subd. 8.  [IMPLEMENTATION.] This section shall be 
 36.21  implemented according to a plan determined by the commissioner 
 36.22  of human services not later than July 1, 1998. 
 36.23     Sec. 13.  [256.9782] [ADMINISTRATIVE LIENS; CHILD SUPPORT.] 
 36.24     Subdivision 1.  [LIEN.] An unpaid child support obligation 
 36.25  becomes a lien by operation of law on all real, personal, and 
 36.26  intangible property of the obligor on and after the day on which 
 36.27  the obligation becomes due in the amount of the unpaid 
 36.28  obligation.  The unpaid obligation includes all unpaid 
 36.29  installments of child support accruing after the date of filing 
 36.30  of a notice of lien.  
 36.31     Subd. 2.  [ENFORCEMENT.] The child support administrative 
 36.32  lien is not enforceable against any purchaser, mortgagee, 
 36.33  pledgee, holder of a uniform commercial code security interest, 
 36.34  mechanic's lien, or judgment lien creditor whose interest has 
 36.35  been duly perfected or is entitled to protection under 
 36.36  applicable provisions of state law until the public authority 
 37.1   responsible for child support enforcement has filed a notice of 
 37.2   lien as required by this section. 
 37.3      Subd. 3.  [FILING.] The public authority responsible for 
 37.4   child support enforcement may file a notice of lien with the 
 37.5   office of the secretary of state.  Filing may occur by United 
 37.6   States mail, personal delivery, or electronic transmission.  The 
 37.7   secretary of state shall enter the date and time of filing and 
 37.8   the file number and shall index the names of the persons shown 
 37.9   on the notice into the computerized database system maintained 
 37.10  by the secretary of state.  The information in the computerized 
 37.11  filing and database systems does not create, release, discharge, 
 37.12  or recreate a notice of child support lien on real or personal 
 37.13  property in the state.  The public authority shall also file the 
 37.14  notice of lien with the department of transportation, motor 
 37.15  vehicle division. 
 37.16     Subd. 4.  [REAL PROPERTY.] The lien is enforceable against 
 37.17  the obligor's interest in real property when the public 
 37.18  authority files a notice of lien in the office of the county 
 37.19  recorder or the registrar of deeds of the county in which the 
 37.20  real property is situated.  The public authority responsible for 
 37.21  child support enforcement is exempt from paying the fees 
 37.22  normally charged for filing or recording the lien and the 
 37.23  release of the lien. 
 37.24     Subd. 5.  [PERSONAL OR INTANGIBLE PROPERTY.] The public 
 37.25  authority responsible for child support enforcement may serve by 
 37.26  first class mail a notice of lien on any financial institution 
 37.27  or entity holding personal or intangible property of the obligor.
 37.28  The notice shall operate as an immediate levy on all property of 
 37.29  the obligor.  The levy shall remain in effect for 60 days from 
 37.30  the date of notice or until the public authority notifies the 
 37.31  financial institution or other entity to levy the property and 
 37.32  turn it over to public authority responsible for child support 
 37.33  enforcement, whichever occurs first.  This time frame may be 
 37.34  extended by the public authority if the obligor requests a 
 37.35  review of the levy under this section or files a motion with the 
 37.36  court under this section. 
 38.1      Subd. 6.  [OBLIGOR NOTICE.] After service of the notice of 
 38.2   lien in subdivision 4 or 5, the public authority shall serve the 
 38.3   notice of lien upon the obligor by first class mail sent to the 
 38.4   obligor's last known address.  The notice shall provide the 
 38.5   obligor with the right to cure the arrearage or request an 
 38.6   administrative review of the action taken under this section on 
 38.7   the basis that the amount stated in the lien is not owed or that 
 38.8   the amount is incorrect.  The request for administrative review 
 38.9   must be made to the public authority responsible for child 
 38.10  support enforcement within 17 days of the date the notice was 
 38.11  served.  Upon expiration of the 17 days, if the obligor has 
 38.12  failed to cure the arrearage or request an administrative 
 38.13  review, the financial institution or other entity shall turn 
 38.14  over the funds, assets, or other personal property described in 
 38.15  the notice of lien to the public authority responsible for child 
 38.16  support enforcement within five business days. 
 38.17     Subd. 7.  [PENALTY.] Disposal, conversion, or any other 
 38.18  means of dispensing property after receipt of the notice of lien 
 38.19  shall result in a penalty of not less than the value of the 
 38.20  property subject to levy, together with reasonable costs and 
 38.21  attorney's fees plus interest, not to exceed the current child 
 38.22  support administrative lien interest rate. 
 38.23     Subd. 8.  [CHILD SUPPORT HEARING.] (a) If the obligor 
 38.24  requests an administrative review under subdivision 6, the 
 38.25  obligor may request a hearing under the rules of civil procedure 
 38.26  on the issue of whether the lien amount or amounts have been 
 38.27  paid and may move the court for an order directing the county 
 38.28  recorder to discharge the lien entered according to this 
 38.29  section.  Failure to request an administrative review under 
 38.30  subdivision 6 shall result in the obligor waiving the right to 
 38.31  file a motion contesting the levy on the property described in 
 38.32  the notice of lien or the amounts owed for past due support. 
 38.33     (b) The court may review the action taken by the public 
 38.34  authority under this section and may correct any mistakes of 
 38.35  fact but shall not reduce or retroactively modify child support 
 38.36  arrears. 
 39.1      Subd. 9.  [PRIORITY.] A notice of administrative lien 
 39.2   perfected under this section takes priority over a security 
 39.3   interest arising under Article 9 of the Uniform Commercial Code, 
 39.4   sections 336.9-101 to 336.9-508, that is perfected before the 
 39.5   filing date of the child support lien imposed under this 
 39.6   section, provided: 
 39.7      (1) the perfected security interest secures property 
 39.8   acquired by the obligor or advances made by the secured party to 
 39.9   the obligor after the notice of child support lien is filed; and 
 39.10     (2) the property in question is acquired or the advance is 
 39.11  made after the 45th day following the day on which the notice of 
 39.12  child support lien is filed, or after the secured party has 
 39.13  actual notice or knowledge of the child support lien filing, 
 39.14  whichever is earlier. 
 39.15     Subd. 10.  [EXPIRATION.] The lien shall expire when the 
 39.16  current child support obligation ends and child support 
 39.17  payments, including arrears, are paid in full or upon release of 
 39.18  the lien by the public authority responsible for child support 
 39.19  enforcement.  A perfected child support lien shall expire ten 
 39.20  years after the date on which the lien was first perfected 
 39.21  unless prior to the expiration, the public authority responsible 
 39.22  for child support enforcement extends the lien according to 
 39.23  subdivision 11.  The public authority may extend the lien for as 
 39.24  many ten-year periods as necessary, provided each extension 
 39.25  complies with subdivision 11.  An extension of the lien under 
 39.26  subdivision 11 does not affect its priority. 
 39.27     Subd. 11.  [LIEN EXTENSION.] A child support lien under 
 39.28  this section may be extended for additional ten-year periods by 
 39.29  the public authority provided the public authority files a 
 39.30  properly executed notice of lien renewal with each authority who 
 39.31  recorded the lien. 
 39.32     Subd. 12.  [EXEMPT PROPERTY.] A perfected child support 
 39.33  lien under this section is not enforceable against any property 
 39.34  of the obligor that is exempt under sections 550.37, 550.38, and 
 39.35  550.39 except that the lien is enforceable upon the sale or 
 39.36  transfer of an obligor's homestead according to section 510.07. 
 40.1      Subd. 13.  [FORMS.] The department of human services shall 
 40.2   provide the notice of lien, notice to obligor of the lien, and 
 40.3   notice of the lien renewal. 
 40.4      Sec. 14.  Minnesota Statutes 1996, section 256.979, 
 40.5   subdivision 8, is amended to read: 
 40.6      Subd. 8.  [MEDICAL PROVIDER REIMBURSEMENT.] (a) A fee to 
 40.7   the providers of medical services is created for the purpose of 
 40.8   increasing the numbers of signed and notarized recognition of 
 40.9   parentage forms completed in the medical setting. 
 40.10     (b) A fee of $25 shall be paid to each medical provider for 
 40.11  each properly completed recognition of parentage form sent to 
 40.12  the department of vital statistics. 
 40.13     (c) The office of vital statistics shall notify the 
 40.14  department of human services quarterly of the numbers of 
 40.15  completed forms received and the amounts paid. 
 40.16     (d) The department of human services shall remit quarterly 
 40.17  to each medical provider a payment for the number of signed 
 40.18  recognition of parentage forms completed by that medical 
 40.19  provider and sent to the office of vital statistics. 
 40.20     (e) The commissioners of the department of human services 
 40.21  and the department of health shall develop procedures for the 
 40.22  implementation of this provision. 
 40.23     (f) Payments will be made to the medical provider within 
 40.24  the limit of available appropriations. 
 40.25     (g) Federal matching funds received as reimbursement for 
 40.26  the costs of the medical provider reimbursement shall be 
 40.27  retained by the commissioner of human services for educational 
 40.28  programs dedicated to the prevention of nonmarital births and 
 40.29  the benefits of paternity establishment. 
 40.30     Sec. 15.  Minnesota Statutes 1996, section 256.979, is 
 40.31  amended by adding a subdivision to read: 
 40.32     Subd. 10.  [TRANSFERABILITY BETWEEN BONUS INCENTIVE 
 40.33  ACCOUNTS AND GRANTS TO COUNTY AGENCIES.] The commissioner of 
 40.34  human services may transfer money appropriated for child support 
 40.35  enforcement county performance incentives under this section and 
 40.36  section 256.9791 among county performance incentive accounts.  
 41.1   The commissioner may create additional performance incentives to 
 41.2   county agencies with the remaining funds.  Incentive funds to 
 41.3   counties transferred under this section must be reinvested in 
 41.4   the child support enforcement program and may not be used to 
 41.5   supplant money now spent by counties for child support 
 41.6   enforcement. 
 41.7      Sec. 16.  Minnesota Statutes 1996, section 256.9791, 
 41.8   subdivision 1, is amended to read: 
 41.9      Subdivision 1.  [BONUS INCENTIVE.] (a) A bonus incentive 
 41.10  program is created to increase the identification and 
 41.11  enforcement by county agencies of dependent health insurance 
 41.12  coverage for persons who are receiving medical assistance under 
 41.13  section 256B.055 and for whom the county agency is providing 
 41.14  child support enforcement services.  
 41.15     (b) The bonus shall be awarded to a county child support 
 41.16  agency for each person for whom coverage is identified and 
 41.17  enforced by the child support enforcement program when the 
 41.18  obligor is under a court order to provide dependent health 
 41.19  insurance coverage.  
 41.20     (c) Bonus incentive funds under this section must be 
 41.21  reinvested in the county child support enforcement program and a 
 41.22  county may not reduce funding of the child support enforcement 
 41.23  program by the amount of the bonus earned. 
 41.24     Sec. 17.  Minnesota Statutes 1996, section 256.9792, 
 41.25  subdivision 1, is amended to read: 
 41.26     Subdivision 1.  [ARREARAGE COLLECTIONS.] Arrearage 
 41.27  collection projects are created to increase the revenue to the 
 41.28  state and counties, reduce AFDC public assistance expenditures 
 41.29  for former public assistance cases, and increase payments of 
 41.30  arrearages to persons who are not receiving public assistance by 
 41.31  submitting cases for arrearage collection to collection 
 41.32  entities, including but not limited to, the department of 
 41.33  revenue and private collection agencies. 
 41.34     Sec. 18.  Minnesota Statutes 1996, section 256.9792, 
 41.35  subdivision 2, is amended to read: 
 41.36     Subd. 2.  [DEFINITIONS.] (a) The definitions in this 
 42.1   subdivision apply to this section: 
 42.2      (b) "Public assistance arrearage case" means a case where 
 42.3   current support may be due, no payment, with the exception of 
 42.4   tax offset, has been made within the last 90 days, and the 
 42.5   arrearages are assigned to the public agency pursuant according 
 42.6   to section 256.74, subdivision 5 256.741, subdivision 1. 
 42.7      (c) "Public authority" means the public authority 
 42.8   responsible for child support enforcement. 
 42.9      (d) "Nonpublic assistance arrearage case" means a support 
 42.10  case where arrearages have accrued that have not been assigned 
 42.11  pursuant according to section 256.74, subdivision 5 256.741, 
 42.12  subdivision 1. 
 42.13     Sec. 19.  Minnesota Statutes 1996, section 256.998, 
 42.14  subdivision 1, is amended to read: 
 42.15     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
 42.16  subdivision apply to this section. 
 42.17     (b) "Date of hiring" means the earlier of:  (1) the first 
 42.18  day for which an employee is owed compensation by an employer; 
 42.19  or (2) the first day that an employee reports to work or 
 42.20  performs labor or services for an employer. 
 42.21     (c) "Earnings" means payment owed by an employer for labor 
 42.22  or services rendered by an employee. 
 42.23     (d) "Employee" means a person who resides or works in 
 42.24  Minnesota and performs services for compensation, in whatever 
 42.25  form, for an employer. satisfies the criteria of an employee 
 42.26  under chapter 24 of the Federal Tax Code.  Employee does not 
 42.27  include:  
 42.28     (1) persons hired for domestic service in the private home 
 42.29  of the employer, as defined in the Federal Tax Code.; or 
 42.30     (2) an employee of the federal or state agency performing 
 42.31  intelligence or counterintelligence functions, if the head of 
 42.32  such agency has determined that reporting according to this law 
 42.33  would endanger the safety of the employee or compromise an 
 42.34  ongoing investigation or intelligence mission. 
 42.35     (e) "Employer" means a person or entity located or doing 
 42.36  business in this state that employs one or more employees for 
 43.1   payment, and includes the state, political or other governmental 
 43.2   subdivisions of the state, and the federal government. and 
 43.3   satisfies the criteria of an employer under section 3401(d) of 
 43.4   the Federal Tax Code. 
 43.5      (f) "Hiring" means engaging a person to perform services 
 43.6   for compensation and includes the reemploying or return to work 
 43.7   of any previous employee who was laid off, furloughed, 
 43.8   separated, granted a leave without pay, or terminated from 
 43.9   employment. when a period of 90 days elapses from the date of 
 43.10  layoff, furlough, separation, leave, or termination to the date 
 43.11  of the person's return to work. 
 43.12     (g) "Labor organization" means entities located or doing 
 43.13  business in this state that meet the criteria of labor 
 43.14  organization under section 2(5) of the National Labor Relations 
 43.15  Act.  This includes any entity, that may also be known as a 
 43.16  hiring hall, used to carry out requirements described in section 
 43.17  8(f)(3) of the National Labor Relations Act. 
 43.18     (h) "Payor" means a person or entity located or doing 
 43.19  business in Minnesota who pays money to an independent 
 43.20  contractor according to an agreement for the performance of 
 43.21  services. 
 43.22     Sec. 20.  Minnesota Statutes 1996, section 256.998, 
 43.23  subdivision 6, is amended to read: 
 43.24     Subd. 6.  [SANCTIONS.] If an employer fails to report under 
 43.25  this section, the commissioner of human services, by certified 
 43.26  mail, shall send the employer a written notice of noncompliance 
 43.27  requesting that the employer comply with the reporting 
 43.28  requirements of this section.  The notice of noncompliance must 
 43.29  explain the reporting procedure under this section and advise 
 43.30  the employer of the penalty for noncompliance.  An employer who 
 43.31  has received a notice of noncompliance and later incurs a second 
 43.32  violation is subject to a civil penalty of $50 $20 for each 
 43.33  intentionally unreported employee.  An employer who has received 
 43.34  a notice of noncompliance and later incurs a third or subsequent 
 43.35  violation is subject to a civil penalty of $500 $450 for each 
 43.36  intentionally unreported employee., if noncompliance is the 
 44.1   result of a conspiracy between an employer and an employee to 
 44.2   not supply the required report or to supply a false or 
 44.3   incomplete report.  These penalties may be imposed and collected 
 44.4   by the commissioner of human services. 
 44.5      Sec. 21.  Minnesota Statutes 1996, section 256.998, 
 44.6   subdivision 7, is amended to read: 
 44.7      Subd. 7.  [ACCESS TO DATA.] The commissioner of human 
 44.8   services shall retain the information reported to the work 
 44.9   reporting system for a period of six months.  Data in the work 
 44.10  reporting system may be disclosed to the public authority 
 44.11  responsible for child support enforcement, federal agencies, and 
 44.12  state and local agencies of other states for the purposes of 
 44.13  enforcing state and federal laws governing child support., and 
 44.14  agencies responsible for the administration of programs under 
 44.15  Title IV-A of the Social Security Act, the department of 
 44.16  economic security, and the department of labor and industry. 
 44.17     Sec. 22.  Minnesota Statutes 1996, section 256.998, 
 44.18  subdivision 9, is amended to read: 
 44.19     Subd. 9.  [INDEPENDENT CONTRACTORS.] The state and all 
 44.20  political subdivisions of the state, when acting in the capacity 
 44.21  of an employer, shall report the hiring of any person as an 
 44.22  independent contractor to the centralized work reporting system 
 44.23  in the same manner as the hiring of an employee is reported. 
 44.24     The attorney general and the commissioner of human services 
 44.25  shall work with representatives of the employment community and 
 44.26  industries that utilize independent contractors in the regular 
 44.27  course of business to develop a plan to include the reporting of 
 44.28  independent contractors by all employers to the centralized work 
 44.29  reporting system by July 1, 1996.  The attorney general and the 
 44.30  commissioner of human services shall present the resulting plan 
 44.31  in the form of proposed legislation to the legislature by 
 44.32  February 1, 1996. Other payors may report independent 
 44.33  contractors to whom they make payments that require the filing 
 44.34  of a 1099-MISC report.  Payors reporting independent contractors 
 44.35  shall report by use of the same means and provide the same 
 44.36  information required under subdivisions 4 and 5.  The 
 45.1   commissioner of human services shall establish procedures for 
 45.2   payors reporting under this section. 
 45.3      Sec. 23.  Minnesota Statutes 1996, section 257.57, 
 45.4   subdivision 2, is amended to read: 
 45.5      Subd. 2.  The child, the mother, or personal representative 
 45.6   of the child, the public authority chargeable by law with the 
 45.7   support of the child, the personal representative or a parent of 
 45.8   the mother if the mother has died or is a minor, a man alleged 
 45.9   or alleging himself to be the father, or the personal 
 45.10  representative or a parent of the alleged father if the alleged 
 45.11  father has died or is a minor may bring an action: 
 45.12     (1) at any time for the purpose of declaring the existence 
 45.13  of the father and child relationship presumed under section 
 45.14  257.55, subdivision 1, paragraph (d), (e), (f), (g), or (h), or 
 45.15  the nonexistence of the father and child relationship presumed 
 45.16  under clause (d) of that subdivision; 
 45.17     (2) for the purpose of declaring the nonexistence of the 
 45.18  father and child relationship presumed under section 257.55, 
 45.19  subdivision 1, paragraph (e) or (g), only if the action is 
 45.20  brought within six months after the person bringing the action 
 45.21  obtains the results of blood or genetic tests that indicate that 
 45.22  the presumed father is not the father of the child; 
 45.23     (3) for the purpose of declaring the nonexistence of the 
 45.24  father and child relationship presumed under section 257.55, 
 45.25  subdivision 1, paragraph (f), only if the action is brought 
 45.26  within three years after the party bringing the action, or the 
 45.27  party's attorney of record, has been provided the blood or 
 45.28  genetic test results; or 
 45.29     (4) for the purpose of declaring the nonexistence of the 
 45.30  father and child relationship presumed under section 257.75 
 45.31  257.55, subdivision 9 1, paragraph (i), only if the action is 
 45.32  brought by the minor signatory within six months after the minor 
 45.33  signatory reaches the age of 18.  In the case of a recognition 
 45.34  of parentage executed by two minor signatories, the action to 
 45.35  declare the nonexistence of the father and child relationship 
 45.36  must be brought within six months after the youngest signatory 
 46.1   reaches the age of 18. 
 46.2      Sec. 24.  Minnesota Statutes 1996, section 257.62, 
 46.3   subdivision 1, is amended to read: 
 46.4      Subdivision 1.  [BLOOD OR GENETIC TESTS REQUIRED.] (a) The 
 46.5   court or public authority may, and upon request of a party 
 46.6   shall, require the child, mother, or alleged father to submit to 
 46.7   blood or genetic tests.  The party requesting the tests shall 
 46.8   file with the court an affidavit either alleging or denying 
 46.9   paternity and setting forth facts that establish the reasonable 
 46.10  possibility that there was, or was not, the requisite sexual 
 46.11  contact between the parties. 
 46.12     (b) A copy of the test results must be served on the 
 46.13  parties as provided in section 543.20 each party by first class 
 46.14  mail to the party's last known address.  Any objection to the 
 46.15  results of blood or genetic tests must be made in writing no 
 46.16  later than 15 days prior to a hearing at which time those test 
 46.17  results may be introduced into evidence 17 days after service of 
 46.18  the results.  Test results served upon a party must include 
 46.19  notice of this right to object.  
 46.20     (c) If the alleged father is dead, the court may, and upon 
 46.21  request of a party shall, require the decedent's parents or 
 46.22  brothers and sisters or both to submit to blood or genetic 
 46.23  tests.  However, in a case involving these relatives of an 
 46.24  alleged father, who is deceased, the court may refuse to order 
 46.25  blood or genetic tests if the court makes an express finding 
 46.26  that submitting to the tests presents a danger to the health of 
 46.27  one or more of these relatives that outweighs the child's 
 46.28  interest in having the tests performed.  Unless the person gives 
 46.29  consent to the use, the results of any blood or genetic tests of 
 46.30  the decedent's parents, brothers, or sisters may be used only to 
 46.31  establish the right of the child to public assistance including 
 46.32  but not limited to social security and veterans' benefits.  The 
 46.33  tests shall be performed by a qualified expert appointed by the 
 46.34  court. 
 46.35     Sec. 25.  Minnesota Statutes 1996, section 257.62, 
 46.36  subdivision 2, is amended to read: 
 47.1      Subd. 2.  The court, upon reasonable request by a party, 
 47.2   shall order that independent tests be performed by other 
 47.3   qualified experts.  A party wanting additional testing must 
 47.4   first contest the original tests in subdivision 1, paragraph 
 47.5   (b), and must pay in advance for the additional testing.  The 
 47.6   additional testing shall be performed by another qualified 
 47.7   expert. 
 47.8      Sec. 26.  Minnesota Statutes 1996, section 257.66, 
 47.9   subdivision 3, is amended to read: 
 47.10     Subd. 3.  [JUDGMENT; ORDER.] The judgment or order shall 
 47.11  contain provisions concerning the duty of support, the custody 
 47.12  of the child, the name of the child, the social security number 
 47.13  of the mother, father, and child, if known at the time of 
 47.14  adjudication, visitation privileges with the child, the 
 47.15  furnishing of bond or other security for the payment of the 
 47.16  judgment, or any other matter in the best interest of the 
 47.17  child.  Custody and visitation and all subsequent motions 
 47.18  related to them shall proceed and be determined under section 
 47.19  257.541.  The remaining matters and all subsequent motions 
 47.20  related to them shall proceed and be determined in accordance 
 47.21  with chapter 518.  The judgment or order may direct the 
 47.22  appropriate party to pay all or a proportion of the reasonable 
 47.23  expenses of the mother's pregnancy and confinement, after 
 47.24  consideration of the relevant facts, including the relative 
 47.25  financial means of the parents; the earning ability of each 
 47.26  parent; and any health insurance policies held by either parent, 
 47.27  or by a spouse or parent of the parent, which would provide 
 47.28  benefits for the expenses incurred by the mother during her 
 47.29  pregnancy and confinement.  Pregnancy and confinement expenses 
 47.30  and genetic testing costs, submitted by the public authority, 
 47.31  are admissible as evidence without third-party foundation 
 47.32  testimony and shall constitute prima facie evidence of the 
 47.33  amounts incurred for such services or for the genetic testing.  
 47.34  Remedies available for the collection and enforcement of child 
 47.35  support apply to confinement costs and are considered additional 
 47.36  child support. 
 48.1      Sec. 27.  Minnesota Statutes 1996, section 257.66, is 
 48.2   amended by adding a subdivision to read: 
 48.3      Subd. 6.  [REQUIRED INFORMATION.] Upon entry of judgment or 
 48.4   order, each parent who is a party in a paternity proceeding 
 48.5   shall: 
 48.6      (1) file with the public authority responsible for child 
 48.7   support enforcement the party's social security number, 
 48.8   residential and mailing address, telephone number, driver's 
 48.9   license number, and name, address, and telephone number of any 
 48.10  employer if the party is receiving services from the public 
 48.11  authority or begins receiving services from the public 
 48.12  authority; 
 48.13     (2) file the information in clause (1) with the district 
 48.14  court; and 
 48.15     (3) notify the court and, if applicable, the public 
 48.16  authority responsible for child support enforcement of any 
 48.17  change in the information required under this section within ten 
 48.18  days of the change. 
 48.19     Sec. 28.  Minnesota Statutes 1996, section 257.70, is 
 48.20  amended to read: 
 48.21     257.70 [HEARINGS AND RECORDS; CONFIDENTIALITY.] 
 48.22     (a) Notwithstanding any other law concerning public 
 48.23  hearings and records, any hearing or trial held under sections 
 48.24  257.51 to 257.74 shall be held in closed court without 
 48.25  admittance of any person other than those necessary to the 
 48.26  action or proceeding.  All papers and records, other than the 
 48.27  final judgment, pertaining to the action or proceeding, whether 
 48.28  part of the permanent record of the court or of a file in the 
 48.29  state department of human services or elsewhere, are subject to 
 48.30  inspection only upon consent of the court and all interested 
 48.31  persons, or in exceptional cases only upon an order of the court 
 48.32  for good cause shown.  
 48.33     (b) In all proceedings under this chapter, in which public 
 48.34  assistance is assigned under section 256.741 or the public 
 48.35  authority provides services to a party or parties to the 
 48.36  proceedings, information on the location of one party may not be 
 49.1   disclosed by the public authority to the other party if:  
 49.2      (1) a protective order with respect to the other party has 
 49.3   been entered; or 
 49.4      (2) the public authority has reason to believe that the 
 49.5   release of the information may result in physical or emotional 
 49.6   harm to the other party. 
 49.7      Sec. 29.  Minnesota Statutes 1996, section 257.75, 
 49.8   subdivision 1a, is amended to read: 
 49.9      Subd. 1a.  [JOINDER IN RECOGNITION BY HUSBAND.] A man who 
 49.10  is a presumed father under section 257.55, subdivision 1, 
 49.11  paragraph (a), may join in a recognition of parentage that 
 49.12  recognizes that another man is the child's biological father.  
 49.13  The man who is the presumed father under section 257.55, 
 49.14  subdivision 1, paragraph (a), must sign an acknowledgment under 
 49.15  oath before a notary public that he is renouncing the 
 49.16  presumption under section 257.55, subdivision 1, paragraph (a), 
 49.17  and recognizing that the father who is executing the recognition 
 49.18  under subdivision 1 is the biological father of the child.  A 
 49.19  joinder in a recognition under this subdivision must be executed 
 49.20  within one year after the child's birth and at the same time as 
 49.21  the recognition under subdivision 1 or within ten days following 
 49.22  execution of the recognition. the joinder must be included in 
 49.23  the recognition form or incorporated by reference within the 
 49.24  recognition and attached to the form when it is filed with the 
 49.25  state registrar of vital statistics.  The joinder must be on a 
 49.26  form prepared by the commissioner of human services.  Failure to 
 49.27  properly execute a joinder in a recognition does not affect the 
 49.28  validity of the recognition under subdivision 1. 
 49.29     Sec. 30.  Minnesota Statutes 1996, section 257.75, 
 49.30  subdivision 2, is amended to read: 
 49.31     Subd. 2.  [REVOCATION OF RECOGNITION.] A recognition may be 
 49.32  revoked in a writing signed by the mother or father before a 
 49.33  notary public and filed with the state registrar of vital 
 49.34  statistics within the earlier of 30 days after the recognition 
 49.35  is executed. or the date of an administrative or judicial 
 49.36  hearing relating to the child in which the revoking party is a 
 50.1   party to the related action.  A joinder in a recognition may be 
 50.2   revoked in a writing signed by the man who executed the joinder 
 50.3   and filed with the state registrar of vital statistics within 30 
 50.4   days after the joinder is executed.  Upon receipt of a 
 50.5   revocation of the recognition of parentage or joinder in a 
 50.6   recognition, the state registrar of vital statistics shall 
 50.7   forward a copy of the revocation to the nonrevoking parent, or, 
 50.8   in the case of a joinder in a recognition, to the mother and 
 50.9   father who executed the recognition.  The commissioner of human 
 50.10  services shall prepare a revocation form. 
 50.11     Sec. 31.  Minnesota Statutes 1996, section 257.75, 
 50.12  subdivision 3, is amended to read: 
 50.13     Subd. 3.  [EFFECT OF RECOGNITION.] Subject to subdivision 2 
 50.14  and section 257.55, subdivision 1, paragraph (g) or (h), the 
 50.15  recognition has the force and effect of a judgment or order 
 50.16  determining the existence of the parent and child relationship 
 50.17  under section 257.66.  If the conditions in section 257.55, 
 50.18  subdivision 1, paragraph (g) or (h), exist, the recognition 
 50.19  creates only a presumption of paternity for purposes of sections 
 50.20  257.51 to 257.74.  Until an order is entered granting custody to 
 50.21  another, the mother has sole custody.  The recognition is: 
 50.22     (1) a basis for bringing an action to award custody or 
 50.23  visitation rights to either parent, establishing a child support 
 50.24  obligation which may include up to the two years immediately 
 50.25  preceding the commencement of the action, ordering a 
 50.26  contribution by a parent under section 256.87, or ordering a 
 50.27  contribution to the reasonable expenses of the mother's 
 50.28  pregnancy and confinement, as provided under section 257.66, 
 50.29  subdivision 3, or ordering reimbursement for the costs of blood 
 50.30  or genetic testing, as provided under section 257.69, 
 50.31  subdivision 2; 
 50.32     (2) determinative for all other purposes related to the 
 50.33  existence of the parent and child relationship; and 
 50.34     (3) entitled to full faith and credit in other 
 50.35  jurisdictions.  A recognition of parentage that is unchallenged 
 50.36  shall not be ratified in a judicial or administrative proceeding.
 51.1      Sec. 32.  Minnesota Statutes 1996, section 257.75, 
 51.2   subdivision 4, is amended to read: 
 51.3      Subd. 4.  [ACTION TO VACATE RECOGNITION.] (a) An action to 
 51.4   vacate a recognition of paternity may be brought by the mother, 
 51.5   father, husband or former husband who executed a joinder, or the 
 51.6   child.  A mother, father, or husband or former husband who 
 51.7   executed a joinder must bring the action within one year of the 
 51.8   execution of the recognition or within six months after the 
 51.9   person bringing the action obtains the results of blood or 
 51.10  genetic tests that indicate that the man who executed the 
 51.11  recognition is not the father of the child.  A child must bring 
 51.12  an action to vacate within six months after the child obtains 
 51.13  the result of blood or genetic tests that indicate that the man 
 51.14  who executed the recognition is not the father of the child, or 
 51.15  within one year of reaching the age of majority, whichever is 
 51.16  later.  If the court finds a prima facie basis for vacating the 
 51.17  recognition, the court shall order the child, mother, father, 
 51.18  and husband or former husband who executed a joinder to submit 
 51.19  to blood tests.  If the court issues an order for the taking of 
 51.20  blood tests, the court shall require the party seeking to vacate 
 51.21  the recognition to make advance payment for the costs of the 
 51.22  blood tests.  If the party fails to pay for the costs of the 
 51.23  blood tests, the court shall dismiss the action to vacate with 
 51.24  prejudice.  The court may also order the party seeking to vacate 
 51.25  the recognition to pay the other party's reasonable attorney 
 51.26  fees, costs, and disbursements.  If the results of the blood 
 51.27  tests establish that the man who executed the recognition is not 
 51.28  the father, the court shall vacate the recognition.  If a 
 51.29  recognition is vacated, any joinder in the recognition under 
 51.30  subdivision 1a is also vacated.  The court shall terminate the 
 51.31  obligation of a party to pay ongoing child support based on the 
 51.32  recognition.  A modification of child support based on a 
 51.33  recognition may be made retroactive with respect to any period 
 51.34  during which the moving party has pending a motion to vacate the 
 51.35  recognition but only from the date of service of notice of the 
 51.36  motion on the responding party. 
 52.1      (b) The burden of proof in an action to vacate the 
 52.2   recognition is on the moving party.  The moving party must 
 52.3   request the vacation on the basis of fraud, duress, or material 
 52.4   mistake of fact.  The legal responsibilities in existence at the 
 52.5   time of an action to vacate, including child support 
 52.6   obligations, may not be suspended during the proceeding, except 
 52.7   for good cause shown. 
 52.8      Sec. 33.  Minnesota Statutes 1996, section 257.75, 
 52.9   subdivision 5, is amended to read: 
 52.10     Subd. 5.  [RECOGNITION FORM.] The commissioner of human 
 52.11  services shall prepare a form for the recognition of parentage 
 52.12  under this section.  In preparing the form, the commissioner 
 52.13  shall consult with the individuals specified in subdivision 6.  
 52.14  The recognition form must be drafted so that the force and 
 52.15  effect of the recognition and the benefits and responsibilities 
 52.16  of establishing paternity are clear and understandable.  Before 
 52.17  the parents of a child sign a recognition of parentage, they 
 52.18  must be given oral and written notice of the legal consequences 
 52.19  of signing the recognition, the rights and responsibilities 
 52.20  assumed by signing the recognition, and the alternatives to 
 52.21  executing a recognition of parentage.  The form must include a 
 52.22  notice regarding the finality of a recognition and the 
 52.23  revocation procedure under subdivision 2.  The form must include 
 52.24  a provision for each parent to verify that the parent has read 
 52.25  or viewed the educational materials prepared by the commissioner 
 52.26  of human services describing the recognition of paternity. and 
 52.27  that the individual providing the form to the parents for 
 52.28  execution provided oral notice of the rights, responsibilities, 
 52.29  and alternatives to executing the recognition.  Oral notice may 
 52.30  be provided by audio tape, videotape, or similar means.  Each 
 52.31  parent must receive a copy of the recognition. 
 52.32     Sec. 34.  Minnesota Statutes 1996, section 257.75, 
 52.33  subdivision 7, is amended to read: 
 52.34     Subd. 7.  [HOSPITAL AND DEPARTMENT OF HEALTH DISTRIBUTION 
 52.35  OF EDUCATIONAL MATERIALS; RECOGNITION FORM.] Hospitals that 
 52.36  provide obstetric services and the state registrar of vital 
 53.1   statistics shall distribute the educational materials and 
 53.2   recognition of parentage forms prepared by the commissioner of 
 53.3   human services to new parents and shall assist parents in 
 53.4   understanding the recognition of parentage form., including 
 53.5   following the provisions for oral and written notice under 
 53.6   subdivision 5.  On and after January 1, 1994, hospitals may not 
 53.7   distribute the declaration of parentage forms. 
 53.8      Sec. 35.  Minnesota Statutes 1996, section 299C.46, 
 53.9   subdivision 3, is amended to read: 
 53.10     Subd. 3.  [AUTHORIZED USE, FEE.] (a) The data 
 53.11  communications network shall be used exclusively by:  
 53.12     (1) criminal justice agencies in connection with the 
 53.13  performance of duties required by law; 
 53.14     (2) agencies investigating federal security clearances of 
 53.15  individuals for assignment or retention in federal employment 
 53.16  with duties related to national security, as required by Public 
 53.17  Law Number 99-1691; and 
 53.18     (3) other agencies to the extent necessary to provide for 
 53.19  protection of the public or property in an emergency or disaster 
 53.20  situation.; and 
 53.21     (4) the public authority responsible for child support 
 53.22  enforcement in connection with the performance of its duties.  
 53.23     (b) The commissioner of public safety shall establish a 
 53.24  monthly network access charge to be paid by each participating 
 53.25  criminal justice agency.  The network access charge shall be a 
 53.26  standard fee established for each terminal, computer, or other 
 53.27  equipment directly addressable by the criminal justice data 
 53.28  communications network, as follows:  January 1, 1984 to December 
 53.29  31, 1984, $40 connect fee per month; January 1, 1985 and 
 53.30  thereafter, $50 connect fee per month.  
 53.31     (c) The commissioner of public safety is authorized to 
 53.32  arrange for the connection of the data communications network 
 53.33  with the criminal justice information system of the federal 
 53.34  government, any adjacent state, or Canada. 
 53.35     Sec. 36.  Minnesota Statutes 1996, section 518.005, is 
 53.36  amended by adding a subdivision to read: 
 54.1      Subd. 5.  [PROHIBITED DISCLOSURE.] In all proceedings under 
 54.2   this chapter in which public assistance is assigned under 
 54.3   section 256.741 or the public authority provides services to a 
 54.4   party or parties to the proceedings, information on the location 
 54.5   of one party may not be disclosed by the public authority to the 
 54.6   other party if: 
 54.7      (1) a protective order with respect to the other party has 
 54.8   been entered; or 
 54.9      (2) the public authority responsible for child support 
 54.10  enforcement has reason to believe that the release of the 
 54.11  information may result in physical or emotional harm to the 
 54.12  other party. 
 54.13     Sec. 37.  Minnesota Statutes 1996, section 518.10, is 
 54.14  amended to read: 
 54.15     518.10 [REQUISITES OF PETITION.] 
 54.16     The petition for dissolution of marriage or legal 
 54.17  separation shall state and allege: 
 54.18     (a) The name and, address, and social security number of 
 54.19  the petitioner and any prior or other name used by the 
 54.20  petitioner; 
 54.21     (b) The name and, if known, the address and social security 
 54.22  number of the respondent and any prior or other name used by the 
 54.23  respondent and known to the petitioner; 
 54.24     (c) The place and date of the marriage of the parties; 
 54.25     (d) In the case of a petition for dissolution, that either 
 54.26  the petitioner or the respondent or both:  
 54.27     (1) Has resided in this state for not less than 180 days 
 54.28  immediately preceding the commencement of the proceeding, or 
 54.29     (2) Has been a member of the armed services and has been 
 54.30  stationed in this state for not less than 180 days immediately 
 54.31  preceding the commencement of the proceeding, or 
 54.32     (3) Has been a domiciliary of this state for not less than 
 54.33  180 days immediately preceding the commencement of the 
 54.34  proceeding; 
 54.35     (e) The name at the time of the petition and any prior or 
 54.36  other name, age and date of birth of each living minor or 
 55.1   dependent child of the parties born before the marriage or born 
 55.2   or adopted during the marriage and a reference to, and the 
 55.3   expected date of birth of, a child of the parties conceived 
 55.4   during the marriage but not born; 
 55.5      (f) Whether or not a separate proceeding for dissolution, 
 55.6   legal separation, or custody is pending in a court in this state 
 55.7   or elsewhere; 
 55.8      (g) In the case of a petition for dissolution, that there 
 55.9   has been an irretrievable breakdown of the marriage 
 55.10  relationship; 
 55.11     (h) In the case of a petition for legal separation, that 
 55.12  there is a need for a decree of legal separation; and 
 55.13     (i) Any temporary or permanent maintenance, child support, 
 55.14  child custody, disposition of property, attorneys' fees, costs 
 55.15  and disbursements applied for without setting forth the amounts. 
 55.16     The petition shall be verified by the petitioner or 
 55.17  petitioners, and its allegations established by competent 
 55.18  evidence.  
 55.19     Sec. 38.  Minnesota Statutes 1996, section 518.148, 
 55.20  subdivision 2, is amended to read: 
 55.21     Subd. 2.  [REQUIRED INFORMATION.] The certificate shall 
 55.22  include the following information: 
 55.23     (1) the full caption and file number of the case and the 
 55.24  title "Certificate of Dissolution"; 
 55.25     (2) the names and any prior or other names of the parties 
 55.26  to the dissolution; 
 55.27     (3) the names of any living minor or dependent children as 
 55.28  identified in the judgment and decree; 
 55.29     (4) that the marriage of the parties is dissolved; and 
 55.30     (5) the date of the judgment and decree.; and 
 55.31     (6) the social security number of the parties to the 
 55.32  dissolution and the social security number of any living minor 
 55.33  or dependent children identified in the judgment and decree. 
 55.34     Sec. 39.  Minnesota Statutes 1996, section 518.171, 
 55.35  subdivision 1, is amended to read: 
 55.36     Subdivision 1.  [ORDER.] Compliance with this section 
 56.1   constitutes compliance with a qualified medical child support 
 56.2   order as described in the federal Employee Retirement Income 
 56.3   Security Act of 1974 (ERISA) as amended by the federal Omnibus 
 56.4   Budget Reconciliation Act of 1993 (OBRA).  
 56.5      (a) Every child support order must: 
 56.6      (1) expressly assign or reserve the responsibility for 
 56.7   maintaining medical insurance for the minor children and the 
 56.8   division of uninsured medical and dental costs; and 
 56.9      (2) contain the names and, last known addresses, if any and 
 56.10  social security number of the custodial parent and noncustodial 
 56.11  parent, of the dependents unless the court prohibits the 
 56.12  inclusion of an address or social security number and orders the 
 56.13  custodial parent to provide the address and social security 
 56.14  number to the administrator of the health plan.  The court shall 
 56.15  order the party with the better group dependent health and 
 56.16  dental insurance coverage or health insurance plan to name the 
 56.17  minor child as beneficiary on any health and dental insurance 
 56.18  plan that is available to the party on: 
 56.19     (i) a group basis; 
 56.20     (ii) through an employer or union; or 
 56.21     (iii) through a group health plan governed under the ERISA 
 56.22  and included within the definitions relating to health plans 
 56.23  found in section 62A.011, 62A.048, or 62E.06, subdivision 2.  
 56.24  "Health insurance" or "health insurance coverage" as used in 
 56.25  this section means coverage that is comparable to or better than 
 56.26  a number two qualified plan as defined in section 62E.06, 
 56.27  subdivision 2.  "Health insurance" or "health insurance 
 56.28  coverage" as used in this section does not include medical 
 56.29  assistance provided under chapter 256, 256B, or 256D. 
 56.30     (b) If the court finds that dependent health or dental 
 56.31  insurance is not available to the obligor or obligee on a group 
 56.32  basis or through an employer or union, or that group insurance 
 56.33  is not accessible to the obligee, the court may require the 
 56.34  obligor (1) to obtain other dependent health or dental 
 56.35  insurance, (2) to be liable for reasonable and necessary medical 
 56.36  or dental expenses of the child, or (3) to pay no less than $50 
 57.1   per month to be applied to the medical and dental expenses of 
 57.2   the children or to the cost of health insurance dependent 
 57.3   coverage. 
 57.4      (c) If the court finds that the available dependent health 
 57.5   or dental insurance does not pay all the reasonable and 
 57.6   necessary medical or dental expenses of the child, including any 
 57.7   existing or anticipated extraordinary medical expenses, and the 
 57.8   court finds that the obligor has the financial ability to 
 57.9   contribute to the payment of these medical or dental expenses, 
 57.10  the court shall require the obligor to be liable for all or a 
 57.11  portion of the medical or dental expenses of the child not 
 57.12  covered by the required health or dental plan.  Medical and 
 57.13  dental expenses include, but are not limited to, necessary 
 57.14  orthodontia and eye care, including prescription lenses. 
 57.15     (d) Unless otherwise agreed by the parties and approved by 
 57.16  the court, if the court finds that the obligee is not receiving 
 57.17  public assistance for the child and has the financial ability to 
 57.18  contribute to the cost of medical and dental expenses for the 
 57.19  child, including the cost of insurance, the court shall order 
 57.20  the obligee and obligor to each assume a portion of these 
 57.21  expenses based on their proportionate share of their total net 
 57.22  income as defined in section 518.54, subdivision 6. 
 57.23     (e) Payments ordered under this section are subject to 
 57.24  section 518.611.  An obligee who fails to apply payments 
 57.25  received to the medical expenses of the dependents may be found 
 57.26  in contempt of this order. 
 57.27     Sec. 40.  Minnesota Statutes 1996, section 518.171, 
 57.28  subdivision 4, is amended to read: 
 57.29     Subd. 4.  [EFFECT OF ORDER.] (a) The order is binding on 
 57.30  the employer or union and the health and dental insurance plan 
 57.31  when service under subdivision 3 has been made.  Receipt of an 
 57.32  order or notice for health insurance by an employer or union 
 57.33  shall operate to enroll the child in the obligor's health plan.  
 57.34  The obligor may contest the enrollment, but the enrollment must 
 57.35  remain in effect while it is in contest.  An employer or union 
 57.36  that is included under ERISA may not deny enrollment based on 
 58.1   exclusionary clauses described in section 62A.048.  Upon receipt 
 58.2   of the order, or upon application of the obligor pursuant 
 58.3   according to the order or notice, the employer or union and its 
 58.4   health and dental insurance plan shall enroll the minor child as 
 58.5   a beneficiary in the group insurance plan and withhold any 
 58.6   required premium from the obligor's income or wages.  If more 
 58.7   than one plan is offered by the employer or union, the child 
 58.8   shall be enrolled in the least costly health insurance plan 
 58.9   otherwise available to the obligor that is comparable to a 
 58.10  number two qualified plan.  If the obligor is not enrolled in a 
 58.11  health insurance plan, the employer or union shall also enroll 
 58.12  the obligor in the chosen plan if enrollment of the obligor is 
 58.13  necessary in order to obtain dependent coverage under the plan.  
 58.14  Enrollment of dependents and the obligor shall be immediate and 
 58.15  not dependent upon open enrollment periods.  Enrollment is not 
 58.16  subject to the underwriting policies described in section 
 58.17  62A.048.  
 58.18     (b) An employer or union that willfully fails to comply 
 58.19  with the order is liable for any health or dental expenses 
 58.20  incurred by the dependents during the period of time the 
 58.21  dependents were eligible to be enrolled in the insurance 
 58.22  program, and for any other premium costs incurred because the 
 58.23  employer or union willfully failed to comply with the order.  An 
 58.24  employer or union that fails to comply with the order is subject 
 58.25  to contempt under section 518.615 and is also subject to a fine 
 58.26  of $500 to be paid to the obligee or public authority.  Fines 
 58.27  paid to the public authority are designated for child support 
 58.28  enforcement services. 
 58.29     (c) Failure of the obligor to execute any documents 
 58.30  necessary to enroll the dependent in the group health and dental 
 58.31  insurance plan will not affect the obligation of the employer or 
 58.32  union and group health and dental insurance plan to enroll the 
 58.33  dependent in a plan.  Information and authorization provided by 
 58.34  the public authority responsible for child support enforcement, 
 58.35  or by the custodial parent or guardian, is valid for the 
 58.36  purposes of meeting enrollment requirements of the health plan.  
 59.1   The insurance coverage for a child eligible under subdivision 5 
 59.2   shall not be terminated except as authorized in subdivision 5. 
 59.3      Sec. 41.  Minnesota Statutes 1996, section 518.54, is 
 59.4   amended by adding a subdivision to read: 
 59.5      Subd. 4a.  [SUPPORT ORDER.] "Support order" means a 
 59.6   judgment, decree, or order, whether temporary, final, or subject 
 59.7   to modification, issued by a court or administrative agency of 
 59.8   competent jurisdiction, for the support and maintenance of a 
 59.9   child, including a child who has attained the age of majority 
 59.10  under the law of the issuing state, or a child and the parent 
 59.11  with whom the child is living, that provides for monetary 
 59.12  support, child care, medical support including expenses for 
 59.13  confinement and pregnancy, arrearages, or reimbursement, and 
 59.14  which may include related costs and fees, interest and 
 59.15  penalties, income withholding, attorney's fees, and other relief.
 59.16  This definition applies to orders issued under this chapter and 
 59.17  chapters 256, 257, and 518C. 
 59.18     Sec. 42.  Minnesota Statutes 1996, section 518.54, 
 59.19  subdivision 6, is amended to read: 
 59.20     Subd. 6.  [INCOME.] (a) "Income" means any form of periodic 
 59.21  payment to an individual including, but not limited to, wages, 
 59.22  salaries, payments to an independent contractor, workers' 
 59.23  compensation, reemployment insurance, annuity, military and 
 59.24  naval retirement, pension and disability payments.  Benefits 
 59.25  received under sections 256.72 to 256.87 and chapter 256D Title 
 59.26  IV-A of the Social Security Act are not income under this 
 59.27  section. 
 59.28     (b) Income also includes other resources of an individual 
 59.29  including, but not limited to, nonperiodic distributions of 
 59.30  workers' compensation claims, reemployment claims, personal 
 59.31  injury recoveries, severance pay, bonuses, and lottery or 
 59.32  gambling winnings. 
 59.33     Sec. 43.  Minnesota Statutes 1996, section 518.551, 
 59.34  subdivision 12, is amended to read: 
 59.35     Subd. 12.  [OCCUPATIONAL LICENSE SUSPENSION.] (a) Upon 
 59.36  motion of an obligee, if the court finds that the obligor is or 
 60.1   may be licensed by a licensing board listed in section 214.01 or 
 60.2   other state, county, or municipal agency or board that issues an 
 60.3   occupational license and the obligor is in arrears in 
 60.4   court-ordered child support or maintenance payments or both in 
 60.5   an amount equal to or greater than three times the obligor's 
 60.6   total monthly support and maintenance payments and is not in 
 60.7   compliance with a written payment agreement regarding both 
 60.8   current support and arrearages approved by the court, an 
 60.9   administrative law judge, or the public authority, the 
 60.10  administrative law judge, or the court shall direct the 
 60.11  licensing board or other licensing agency to suspend the license 
 60.12  under section 214.101.  The court's order must be stayed for 90 
 60.13  days in order to allow the obligor to execute a written payment 
 60.14  agreement regarding both current support and arrearages.  The 
 60.15  payment agreement must be approved by either the court or the 
 60.16  public authority responsible for child support enforcement.  If 
 60.17  the obligor has not executed or is not in compliance with a 
 60.18  written payment agreement regarding both current support and 
 60.19  arrearages after the 90 days expires, the court's order becomes 
 60.20  effective.  If the obligor is a licensed attorney, the court 
 60.21  shall report the matter to the lawyers professional 
 60.22  responsibility board for appropriate action in accordance with 
 60.23  the rules of professional conduct.  The remedy under this 
 60.24  subdivision is in addition to any other enforcement remedy 
 60.25  available to the court. 
 60.26     (b) If a public authority responsible for child support 
 60.27  enforcement finds that the obligor is or may be licensed by a 
 60.28  licensing board listed in section 214.01 or other state, county, 
 60.29  or municipal agency or board that issues an occupational license 
 60.30  and the obligor is in arrears in court-ordered child support or 
 60.31  maintenance payments or both in an amount equal to or greater 
 60.32  than three times the obligor's total monthly support and 
 60.33  maintenance payments and is not in compliance with a written 
 60.34  payment agreement regarding both current support and arrearages 
 60.35  approved by the court, an administrative law judge, or the 
 60.36  public authority, the court, an administrative law judge, or the 
 61.1   public authority shall direct the licensing board or other 
 61.2   licensing agency to suspend the license under section 214.101.  
 61.3   If the obligor is a licensed attorney, the public authority may 
 61.4   report the matter to the lawyers professional responsibility 
 61.5   board for appropriate action in accordance with the rules of 
 61.6   professional conduct.  The remedy under this subdivision is in 
 61.7   addition to any other enforcement remedy available to the public 
 61.8   authority. 
 61.9      (c) At least 90 days before notifying a licensing authority 
 61.10  or the lawyers professional responsibility board under paragraph 
 61.11  (b), the public authority shall mail a written notice to the 
 61.12  license holder addressed to the license holder's last known 
 61.13  address that the public authority intends to seek license 
 61.14  suspension under this subdivision and that the license holder 
 61.15  must request a hearing within 30 days in order to contest the 
 61.16  suspension.  If the license holder makes a written request for a 
 61.17  hearing within 30 days of the date of the notice, either a court 
 61.18  hearing or a contested administrative proceeding must be held 
 61.19  under section 518.5511, subdivision 4.  Notwithstanding any law 
 61.20  to the contrary, the license holder must be served with 14 days' 
 61.21  notice in writing specifying the time and place of the hearing 
 61.22  and the allegations against the license holder.  The notice may 
 61.23  be served personally or by mail.  If the public authority does 
 61.24  not receive a request for a hearing within 30 days of the date 
 61.25  of the notice, and the obligor does not execute a written 
 61.26  payment agreement regarding both current support and arrearages 
 61.27  approved by the court, an administrative law judge or the public 
 61.28  authority within 90 days of the date of the notice, the public 
 61.29  authority shall direct the licensing board or other licensing 
 61.30  agency to suspend the obligor's license under paragraph (b), or 
 61.31  shall report the matter to the lawyers professional 
 61.32  responsibility board. 
 61.33     (d) The administrative law judge, on behalf of the public 
 61.34  authority, or the court shall notify the lawyers professional 
 61.35  responsibility board for appropriate action in accordance with 
 61.36  the rules of professional responsibility conduct or order the 
 62.1   licensing board or licensing agency to suspend the license if 
 62.2   the judge finds that: 
 62.3      (1) the person is licensed by a licensing board or other 
 62.4   state agency that issues an occupational license; 
 62.5      (2) the person has not made full payment of arrearages 
 62.6   found to be due by the public authority; and 
 62.7      (3) the person has not executed or is not in compliance 
 62.8   with a payment plan approved by the court, an administrative law 
 62.9   judge, or the public authority. 
 62.10     (e) Within 15 days of the date on which the obligor either 
 62.11  makes full payment of arrearages found to be due by the court or 
 62.12  public authority or executes and initiates good faith compliance 
 62.13  with a written payment plan approved by the court, an 
 62.14  administrative law judge, or the public authority, the court, an 
 62.15  administrative law judge, or the public authority responsible 
 62.16  for child support enforcement shall notify the licensing board 
 62.17  or licensing agency or the lawyers professional responsibility 
 62.18  board that the obligor is no longer ineligible for license 
 62.19  issuance, reinstatement, or renewal under this subdivision. 
 62.20     (f) In addition to the criteria established under this 
 62.21  section for the suspension of an obligor's occupational license, 
 62.22  a court, an administrative law judge, or the public authority 
 62.23  may direct the licensing board or other licensing agency to 
 62.24  suspend the license of an obligor who has failed, after 
 62.25  receiving notice, to comply with a subpoena or warrant relating 
 62.26  to a paternity or child support proceeding. 
 62.27     (g) The court, an administrative law judge, or the public 
 62.28  authority may direct the occupational licensing board or agency 
 62.29  to suspend the license of an obligor who fails to remain in 
 62.30  compliance with an approved payment agreement.  Notice to the 
 62.31  obligor of an intent to suspend under this paragraph shall be 
 62.32  served by first class mail at the obligor's last known address 
 62.33  and shall include a notice of hearing.  The notice shall be 
 62.34  served upon the obligor not less than ten days before the date 
 62.35  of the hearing.  If the court, an administrative law judge, or 
 62.36  the public authority determines that the obligor has failed to 
 63.1   comply with the approved payment agreement, it shall notify the 
 63.2   occupational licensing board or agency to suspend the obligor's 
 63.3   license under paragraph (c). 
 63.4      Sec. 44.  Minnesota Statutes 1996, section 518.551, 
 63.5   subdivision 13, is amended to read: 
 63.6      Subd. 13.  [DRIVER'S LICENSE SUSPENSION.] (a) Upon motion 
 63.7   of an obligee, which has been properly served on the obligor and 
 63.8   upon which there has been an opportunity for hearing, if a court 
 63.9   finds that the obligor has been or may be issued a driver's 
 63.10  license by the commissioner of public safety and the obligor is 
 63.11  in arrears in court-ordered child support or maintenance 
 63.12  payments, or both, in an amount equal to or greater than three 
 63.13  times the obligor's total monthly support and maintenance 
 63.14  payments and is not in compliance with a written payment 
 63.15  agreement regarding both current support and arrearages approved 
 63.16  by the court, an administrative law judge, or the public 
 63.17  authority, the court shall order the commissioner of public 
 63.18  safety to suspend the obligor's driver's license.  The court's 
 63.19  order must be stayed for 90 days in order to allow the obligor 
 63.20  to execute a written payment agreement regarding both current 
 63.21  support and arrearages, which payment agreement must be approved 
 63.22  by either the court or the public authority responsible for 
 63.23  child support enforcement.  If the obligor has not executed or 
 63.24  is not in compliance with a written payment agreement regarding 
 63.25  both current support and arrearages after the 90 days expires, 
 63.26  the court's order becomes effective and the commissioner of 
 63.27  public safety shall suspend the obligor's driver's license.  The 
 63.28  remedy under this subdivision is in addition to any other 
 63.29  enforcement remedy available to the court.  An obligee may not 
 63.30  bring a motion under this paragraph within 12 months of a denial 
 63.31  of a previous motion under this paragraph. 
 63.32     (b) If a public authority responsible for child support 
 63.33  enforcement determines that the obligor has been or may be 
 63.34  issued a driver's license by the commissioner of public safety 
 63.35  and the obligor is in arrears in court-ordered child support or 
 63.36  maintenance payments or both in an amount equal to or greater 
 64.1   than three times the obligor's total monthly support and 
 64.2   maintenance payments and not in compliance with a written 
 64.3   payment agreement regarding both current support and arrearages 
 64.4   approved by the court, an administrative law judge, or the 
 64.5   public authority, the public authority shall direct the 
 64.6   commissioner of public safety to suspend the obligor's driver's 
 64.7   license.  The remedy under this subdivision is in addition to 
 64.8   any other enforcement remedy available to the public authority. 
 64.9      (c) At least 90 days prior to notifying the commissioner of 
 64.10  public safety pursuant according to paragraph (b), the public 
 64.11  authority must mail a written notice to the obligor at the 
 64.12  obligor's last known address, that it intends to seek suspension 
 64.13  of the obligor's driver's license and that the obligor must 
 64.14  request a hearing within 30 days in order to contest the 
 64.15  suspension.  If the obligor makes a written request for a 
 64.16  hearing within 30 days of the date of the notice, either a court 
 64.17  hearing or a contested administrative proceeding must be held 
 64.18  under section 518.5511, subdivision 4.  Notwithstanding any law 
 64.19  to the contrary, the obligor must be served with 14 days' notice 
 64.20  in writing specifying the time and place of the hearing and the 
 64.21  allegations against the obligor.  The notice may be served 
 64.22  personally or by mail.  If the public authority does not receive 
 64.23  a request for a hearing within 30 days of the date of the 
 64.24  notice, and the obligor does not execute a written payment 
 64.25  agreement regarding both current support and arrearages approved 
 64.26  by the court, an administrative law judge, or the public 
 64.27  authority within 90 days of the date of the notice, the public 
 64.28  authority shall direct the commissioner of public safety to 
 64.29  suspend the obligor's driver's license under paragraph (b). 
 64.30     (d) At a hearing requested by the obligor under paragraph 
 64.31  (c), and on finding that the obligor is in arrears in 
 64.32  court-ordered child support or maintenance payments or both in 
 64.33  an amount equal to or greater than three times the obligor's 
 64.34  total monthly support and maintenance payments, the district 
 64.35  court or the administrative law judge shall order the 
 64.36  commissioner of public safety to suspend the obligor's driver's 
 65.1   license or operating privileges unless the court or 
 65.2   administrative law judge determines that the obligor has 
 65.3   executed and is in compliance with a written payment agreement 
 65.4   regarding both current support and arrearages approved by the 
 65.5   court, an administrative law judge, or the public authority. 
 65.6      (e) An obligor whose driver's license or operating 
 65.7   privileges are suspended may provide proof to the court or the 
 65.8   public authority responsible for child support enforcement that 
 65.9   the obligor is in compliance with all written payment agreements 
 65.10  regarding both current support and arrearages.  Within 15 days 
 65.11  of the receipt of that proof, the court or public authority 
 65.12  shall inform the commissioner of public safety that the 
 65.13  obligor's driver's license or operating privileges should no 
 65.14  longer be suspended. 
 65.15     (f) On January 15, 1997, and every two years after that, 
 65.16  the commissioner of human services shall submit a report to the 
 65.17  legislature that identifies the following information relevant 
 65.18  to the implementation of this section: 
 65.19     (1) the number of child support obligors notified of an 
 65.20  intent to suspend a driver's license; 
 65.21     (2) the amount collected in payments from the child support 
 65.22  obligors notified of an intent to suspend a driver's license; 
 65.23     (3) the number of cases paid in full and payment agreements 
 65.24  executed in response to notification of an intent to suspend a 
 65.25  driver's license; 
 65.26     (4) the number of cases in which there has been 
 65.27  notification and no payments or payment agreements; 
 65.28     (5) the number of driver's licenses suspended; and 
 65.29     (6) the cost of implementation and operation of the 
 65.30  requirements of this section. 
 65.31     (g) In addition to the criteria established under this 
 65.32  section for the suspension of an obligor's driver's license, a 
 65.33  court, an administrative law judge, or the public authority may 
 65.34  direct the commissioner of public safety to suspend the license 
 65.35  of an obligor who has failed, after receiving notice, to comply 
 65.36  with a subpoena or warrant relating to a paternity or child 
 66.1   support proceeding. 
 66.2      (h) The court, an administrative law judge, or the public 
 66.3   authority may direct the department of public safety to suspend 
 66.4   the license of an obligor who fails to remain in compliance with 
 66.5   an approved payment agreement.  Notice to the obligor of an 
 66.6   intent to suspend under this paragraph shall be served by first 
 66.7   class mail at the obligor's last known address and shall include 
 66.8   a notice of hearing.  The notice shall be served upon the 
 66.9   obligor not less than ten days before the date of the hearing.  
 66.10  If the court, an administrative law judge, or the public 
 66.11  authority determines that the obligor has failed to comply with 
 66.12  the approved payment agreement, it shall notify the department 
 66.13  of public safety to suspend the obligor's license under 
 66.14  paragraph (c). 
 66.15     Sec. 45.  Minnesota Statutes 1996, section 518.551, is 
 66.16  amended by adding a subdivision to read: 
 66.17     Subd. 15.  [RECREATIONAL LICENSE SUSPENSION.] (a) For 
 66.18  purposes of this subdivision, a recreational license includes 
 66.19  all licenses, permits, registrations, and stamps issued by the 
 66.20  commissioner of natural resources under chapters 84 to 97C. 
 66.21     (b) Upon motion by an obligee, which has been properly 
 66.22  served on the obligor and where there has been an opportunity 
 66.23  for hearing, if a court finds that the obligor has been or may 
 66.24  be issued a recreational license and the obligor is in arrears 
 66.25  in court-ordered child support or maintenance payments, or both, 
 66.26  in an amount equal to or greater than three times the obligor's 
 66.27  total monthly support and maintenance payments and the obligor 
 66.28  is not in compliance with a written payment agreement regarding 
 66.29  both current support and arrearages approved by the court, an 
 66.30  administrative law judge, or the public authority, the court 
 66.31  shall order the commissioner of natural resources to suspend the 
 66.32  obligor's recreational license.  The court's order must be 
 66.33  stayed for 90 days in order to allow the obligor to execute a 
 66.34  written payment agreement regarding both current support and 
 66.35  arrearages.  The payment agreement must be approved by either 
 66.36  the court or the public authority responsible for child support 
 67.1   enforcement.  If the obligor has not executed or is not in 
 67.2   compliance with a written payment agreement regarding both 
 67.3   current support and arrearages or has not provided evidence of 
 67.4   compliance with a subpoena or warrant after the 90 days expires, 
 67.5   the court's order becomes effective and the commissioner of 
 67.6   natural resources or other agency issuing recreational licenses 
 67.7   shall suspend the obligor's recreational license.  The 
 67.8   enforcement remedy under this subdivision is in addition to any 
 67.9   other enforcement remedy available to the court.  An obligee may 
 67.10  not bring a motion under this paragraph within 12 months of a 
 67.11  denial of a previous motion under this paragraph. 
 67.12     (c) If a public authority responsible for child support 
 67.13  enforcement determines that the obligor has been or may be 
 67.14  issued a recreational license and the obligor is in arrears in 
 67.15  court-ordered child support or maintenance payments or both in 
 67.16  an amount equal to or greater than three times the obligor's 
 67.17  total monthly support and maintenance payments and is not in 
 67.18  compliance with a written payment agreement regarding both 
 67.19  current support and arrearages approved by the court, an 
 67.20  administrative law judge, or the public authority, the public 
 67.21  authority shall direct the commissioner of natural resources or 
 67.22  other agency issuing recreational licenses to suspend the 
 67.23  obligor's recreational license.  The enforcement remedy under 
 67.24  this subdivision is in addition to any other enforcement remedy 
 67.25  available to the public authority. 
 67.26     (d) At least 90 days prior to notifying the commissioner of 
 67.27  natural resources, the public authority must mail a written 
 67.28  notice to the obligor, at the obligor's last known address, of 
 67.29  intention to seek suspension of the obligor's recreational 
 67.30  license and provide notification that the obligor must request a 
 67.31  hearing within 30 days in order to contest the suspension.  If 
 67.32  the obligor makes a written request for a hearing within 30 days 
 67.33  of the date of the notice, either a court hearing or a contested 
 67.34  administrative proceeding must be held under section 518.5511, 
 67.35  subdivision 4.  Notwithstanding any law to the contrary, the 
 67.36  obligor must be served with 14 days' written notice specifying 
 68.1   the time and place of the hearing and the allegations against 
 68.2   the obligor.  The notice may be served personally or by mail.  
 68.3   If the public authority does not receive a request for a hearing 
 68.4   within 30 days of the date of the notice, and the obligor does 
 68.5   not execute a written payment agreement approved by the public 
 68.6   authority regarding both current support and arrearages within 
 68.7   90 days of the date of the notice, the public authority shall 
 68.8   direct the commissioner of natural resources to suspend the 
 68.9   obligor's recreational license under paragraph (c). 
 68.10     (e) At a hearing requested by the obligor and on a finding 
 68.11  that the obligor is in arrears in court-ordered child support, 
 68.12  maintenance payments, or both in an amount equal to or greater 
 68.13  than three times the obligor's total monthly support and 
 68.14  maintenance payments, the district court or the administrative 
 68.15  law judge shall order the commissioner of natural resources to 
 68.16  suspend the obligor's recreational license unless the court or 
 68.17  administrative law judge determines that the obligor has 
 68.18  executed and is in compliance with a written payment agreement 
 68.19  regarding both current support and arrearages approved by the 
 68.20  court, an administrative law judge, or the public authority. 
 68.21     (f) An obligor whose recreational license is suspended may 
 68.22  provide proof to the court or the public authority responsible 
 68.23  for child support enforcement that the obligor is in compliance 
 68.24  with all written payment agreements regarding both current 
 68.25  support and arrearages.  Within 15 days of the receipt of proof 
 68.26  of compliance, the court or public authority shall inform the 
 68.27  commissioner of natural resources that the obligor's 
 68.28  recreational license should no longer be suspended. 
 68.29     (g) In addition to the criteria established under this 
 68.30  section for the suspension of an obligor's recreational license, 
 68.31  a court, an administrative law judge, or the public authority 
 68.32  may direct the commissioner of natural resources to suspend the 
 68.33  license of an obligor who has failed, after receiving notice, to 
 68.34  comply with a subpoena or warrant relating to a paternity or 
 68.35  child support proceeding. 
 68.36     (h) The court, an administrative law judge, or the public 
 69.1   authority may direct the department of natural resources to 
 69.2   suspend the license of an obligor who fails to remain in 
 69.3   compliance with an approved payment agreement.  Notice to the 
 69.4   obligor of an intent to suspend under this paragraph shall be 
 69.5   served by first class mail at the obligor's last known address 
 69.6   and shall include a notice of hearing.  The notice shall be 
 69.7   served upon the obligor not less than ten days before the date 
 69.8   of the hearing.  If the court, an administrative law judge, or 
 69.9   the public authority determines that the obligor has failed to 
 69.10  comply with the approved payment agreement, it shall notify the 
 69.11  department of natural resources to suspend the obligor's license 
 69.12  under paragraph (c). 
 69.13     (i) The public authority and the commissioner of natural 
 69.14  resources shall implement the suspension of recreational 
 69.15  licenses following the date each license becomes issued by the 
 69.16  commissioner of natural resources by electronic means. 
 69.17     Sec. 46.  Minnesota Statutes 1996, section 518.5511, 
 69.18  subdivision 1, is amended to read: 
 69.19     Subdivision 1.  [GENERAL.] (a) An administrative process is 
 69.20  established to obtain, modify, and enforce child and medical 
 69.21  support orders and parentage orders and modify maintenance if 
 69.22  combined with a child support proceeding.  All laws governing 
 69.23  these actions apply insofar as they are not inconsistent with 
 69.24  the provisions of this section and section 518.5512.  Wherever 
 69.25  other laws or rules are inconsistent with this section and 
 69.26  section 518.5512, the provisions in this section and section 
 69.27  518.5512 shall apply. 
 69.28     (b) All proceedings for obtaining, modifying, or enforcing 
 69.29  child and medical support orders and modifying maintenance 
 69.30  orders if combined with a child support proceeding, are required 
 69.31  to be conducted in the administrative process when public 
 69.32  assistance as defined in section 256.741 is being provided or 
 69.33  when the public authority is a party or provides services to a 
 69.34  party or parties to the proceedings.  Cases in which there is no 
 69.35  assignment of assistance or in which the public authority is not 
 69.36  providing services may not be conducted in the administrative 
 70.1   process.  At county option, the administrative process may 
 70.2   include contempt motions or actions to establish parentage.  
 70.3   Nothing contained herein shall prevent a party, upon timely 
 70.4   notice to the public authority, from commencing an action or 
 70.5   bringing a motion for the establishment, modification, or 
 70.6   enforcement of child support or modification of maintenance 
 70.7   orders if combined with a child support proceeding in district 
 70.8   court, if additional issues involving domestic abuse, 
 70.9   establishment or modification of custody or visitation, property 
 70.10  issues, or other issues outside the jurisdiction of the 
 70.11  administrative process, are part of the motion or action, or 
 70.12  from proceeding with a motion or action brought by another party 
 70.13  containing one or more of these issues if it is pending in 
 70.14  district court. 
 70.15     (c) A party may make a written request to the public 
 70.16  authority to initiate an uncontested administrative proceeding.  
 70.17  If the public authority denies the request, the public authority 
 70.18  shall issue a summary notice which denies the request for 
 70.19  relief, states the reasons for the denial, and notifies the 
 70.20  party of the right to commence an action for relief.  If the 
 70.21  party commences an action or serves and files a motion within 30 
 70.22  days after the public authority's denial and the party's action 
 70.23  results in a modification of a child support order, the 
 70.24  modification may be retroactive to the date the written request 
 70.25  was received by the public authority. 
 70.26     As used in this section and section 518.5512, parties 
 70.27  includes obligees and obligors as defined under section 518.54, 
 70.28  subdivisions 7 and 8.  Obligees include recipients of public 
 70.29  assistance who have assigned their rights to support under 
 70.30  section 256.741, subdivision 1. 
 70.31     (d) After August 1, 1994, all counties shall participate in 
 70.32  the administrative process established in this section in 
 70.33  accordance with a statewide implementation plan to be set forth 
 70.34  by the commissioner of human services.  No county shall be 
 70.35  required to participate in the administrative process until 
 70.36  after the county has been trained.  The implementation plan 
 71.1   shall include provisions for training the counties by region no 
 71.2   later than July 1, 1995.  The public authority may initiate 
 71.3   actions in the administrative process.  
 71.4      (e) For the purpose of the administrative process, all 
 71.5   powers, duties, and responsibilities conferred on judges of 
 71.6   district court to obtain and enforce child and medical support 
 71.7   and parentage and maintenance obligations, subject to the 
 71.8   limitations of this section are conferred on administrative law 
 71.9   judges, including the power to issue subpoenas, orders to show 
 71.10  cause, and bench warrants for failure to appear. 
 71.11     The administrative law judge has the authority to enter 
 71.12  parentage orders in which the custody and visitation provisions 
 71.13  are uncontested. 
 71.14     (f) Nonattorney employees of the public authority 
 71.15  responsible for child support may prepare, sign, serve, and file 
 71.16  complaints, motions, notices, summary notices, proposed orders, 
 71.17  default orders, consent orders, orders for blood or genetic 
 71.18  tests, orders for nondisclosure, and other documents related to 
 71.19  the administrative process for obtaining, modifying, or 
 71.20  enforcing child and medical support orders, orders establishing 
 71.21  paternity, and related documents, and orders to modify 
 71.22  maintenance if combined with a child support order.  The 
 71.23  nonattorney employee may issue administrative subpoenas, conduct 
 71.24  prehearing conferences, and participate in proceedings before an 
 71.25  administrative law judge.  This activity shall not be considered 
 71.26  to be the unauthorized practice of law.  Nonattorney employees 
 71.27  may not represent the interests of any party other than the 
 71.28  public authority, and may not give legal advice.  The 
 71.29  nonattorney employees may act subject to the limitations of 
 71.30  section 518.5512. 
 71.31     (g) After the commencement of the administrative process, 
 71.32  any party may make a written request to the chief administrative 
 71.33  law judge for the attendance of a witness or the production of 
 71.34  books, papers, records, or other documents relevant to the 
 71.35  administrative process.  Subpoenas shall be enforceable through 
 71.36  the district court.  The public authority may also request a 
 72.1   subpoena from the chief administrative law judge for the 
 72.2   production of a witness.  The nonattorney employee of the public 
 72.3   authority may issue subpoenas subject to the limitations in 
 72.4   section 518.5512, subdivision 6, paragraph (a), clause (1).  
 72.5      (h) At all stages of the administrative process, the county 
 72.6   attorney, or other attorney under contract, shall act as the 
 72.7   legal adviser for the public authority, but shall not play an 
 72.8   active role in the review of information, the preparation of 
 72.9   default and consent orders, and the contested administrative 
 72.10  proceedings unless the nonattorney employee of the public 
 72.11  authority requests the appearance of the county attorney.  
 72.12     (i) The commissioner of human services shall:  
 72.13     (1) provide training to child support officers and other 
 72.14  persons involved in the administrative process; 
 72.15     (2) prepare simple and easy to understand forms for all 
 72.16  notices and orders prescribed in this section, including a 
 72.17  support order worksheet form, with the exception of orders 
 72.18  issued by the office of administrative hearings under 
 72.19  subdivision 4; and 
 72.20     (3) distribute money to cover the costs of the 
 72.21  administrative process, including the salaries of administrative 
 72.22  law judges.  If available appropriations are insufficient to 
 72.23  cover the costs, the commissioner shall prorate the amount among 
 72.24  the counties. 
 72.25     (j) The commissioner of human services, in consultation 
 72.26  with the office of administrative hearings, shall be responsible 
 72.27  for the supervision of the administrative process.  
 72.28     (k) The public authority, the office of administrative 
 72.29  hearings, court administrators, and other entities involved in 
 72.30  the administrative process shall use the forms prepared by the 
 72.31  commissioner.  
 72.32     (l) The office of administrative hearings may reject orders 
 72.33  which have not been prepared using the commissioner's forms or 
 72.34  on forms which have not been approved by the commissioner. 
 72.35     (m) The office of administrative hearings shall be 
 72.36  responsible for training and monitoring the performance of 
 73.1   administrative law judges, maintaining records of proceedings, 
 73.2   providing transcripts upon request, and maintaining the 
 73.3   integrity of the district court file.  
 73.4      Sec. 47.  Minnesota Statutes 1996, section 518.5511, 
 73.5   subdivision 2, is amended to read: 
 73.6      Subd. 2.  [UNCONTESTED ADMINISTRATIVE PROCEEDING.] (a) A 
 73.7   party may petition the chief administrative law judge, the chief 
 73.8   district court judge, or the chief family court referee to 
 73.9   proceed immediately to a contested hearing upon good cause shown.
 73.10     (b) The public authority shall give the parties written 
 73.11  notice requesting the submission of information necessary for 
 73.12  the public authority to prepare a proposed order.  The written 
 73.13  notice shall be sent by first class mail to the parties' last 
 73.14  known addresses.  The written notice shall describe the 
 73.15  information requested, state the purpose of the request, state 
 73.16  the date by which the information must be postmarked or received 
 73.17  (which shall be at least 30 days from the date of the mailing of 
 73.18  the written notice), state that if the information is not 
 73.19  postmarked or received by that date, the public authority will 
 73.20  prepare a proposed order on the basis of the information 
 73.21  available, and identify the type of information which will be 
 73.22  considered.  
 73.23     (c) Following the submission of information or following 
 73.24  the date when the information was due the initiation of the 
 73.25  administrative process under subdivision 1, paragraph (c) or 
 73.26  (d), the public authority shall, on the basis of all information 
 73.27  available, complete and sign a proposed order and notice.  The 
 73.28  public authority shall attach a support order worksheet.  In 
 73.29  preparing the proposed order, the public authority will 
 73.30  establish child support in the highest amount permitted under 
 73.31  section 518.551, subdivision 5.  The proposed order shall 
 73.32  include written findings in accordance with section 518.551, 
 73.33  subdivision 5, clauses (i) and (j).  If the public authority has 
 73.34  incomplete information upon which to prepare a proposed order, 
 73.35  the public authority shall use the default standard established 
 73.36  in section 518.5512, subdivision 5, to prepare the proposed 
 74.1   order.  The notice shall state that the proposed order will be 
 74.2   entered as a final and binding default order unless one of the 
 74.3   parties requests a conference under subdivision 3 contacts the 
 74.4   public authority regarding the proposed order within 21 30 days 
 74.5   following the date of service of the proposed order.  The method 
 74.6   for requesting the conference shall be stated in the notice.  
 74.7   The notice and proposed order shall be served under the rules of 
 74.8   civil procedure on the noninitiating party and by first class 
 74.9   mail on the initiating party.  If the action was initiated by 
 74.10  the public authority, the notice and proposed order shall be 
 74.11  served under the rules of civil procedure.  After receipt of the 
 74.12  notice and proposed order, the court administrator shall file 
 74.13  the documents. 
 74.14     For the purposes of the contested hearing administrative 
 74.15  process, and notwithstanding any law or rule to the contrary, 
 74.16  the service of the proposed order pursuant to under this 
 74.17  paragraph shall be deemed to have commenced a proceeding and the 
 74.18  judge, including an administrative law judge or a referee, shall 
 74.19  have jurisdiction over the a contested hearing administrative 
 74.20  proceeding.  
 74.21     (d) (b) If a conference under subdivision 3 is not 
 74.22  requested the public authority is not contacted by a party 
 74.23  within 21 30 days after the date of service of the proposed 
 74.24  order, the public authority may submit the proposed order as the 
 74.25  default order.  The default order becomes enforceable upon 
 74.26  signature by an administrative law judge, district court judge, 
 74.27  or referee.  The public authority may also prepare and serve a 
 74.28  new notice and proposed order if new information is subsequently 
 74.29  obtained.  The default order shall be a final order, and shall 
 74.30  be served under the rules of civil procedure. 
 74.31     (c) If the public authority obtains new information after 
 74.32  service of the proposed order, the public authority may prepare 
 74.33  one notice and revised proposed order.  The revised order shall 
 74.34  be served by first class mail on the parties.  If the public 
 74.35  authority is not contacted within seven days after the date of 
 74.36  service of the revised order, the public authority may submit 
 75.1   the revised order as a default order. 
 75.2      (e) (d) The public authority shall file in the district 
 75.3   court copies of all notices served on the parties, proof of 
 75.4   service, the support order worksheet, and all orders.  
 75.5      Sec. 48.  Minnesota Statutes 1996, section 518.5511, 
 75.6   subdivision 3, is amended to read: 
 75.7      Subd. 3.  [ADMINISTRATIVE CONFERENCE.] (a) If a party 
 75.8   requests a conference contacts the public authority within 21 30 
 75.9   days of the date of service of the proposed order, and the 
 75.10  public authority does not choose to proceed directly to a 
 75.11  contested administrative proceeding, the public authority shall 
 75.12  schedule a conference, and shall serve written notice of the 
 75.13  date, time, and place of the conference and the date, time, and 
 75.14  place of a contested administrative proceeding in the event the 
 75.15  administrative conference fails to resolve all of the issues on 
 75.16  the parties.  The public authority may request any additional 
 75.17  information necessary to establish child support.  The public 
 75.18  authority may choose to go directly to a contested 
 75.19  administrative proceeding and is not required to conduct an 
 75.20  administrative conference.  The date of the contested 
 75.21  administrative proceeding shall be set within 31 days of the 
 75.22  administrative conference or not more than 60 days from the date 
 75.23  of the notice of the administrative conference.  
 75.24     (b) The purpose of the conference is to review all 
 75.25  available information and seek an agreement to enter a consent 
 75.26  order.  All available and relevant information may be shared 
 75.27  with the parties at the conference.  The notice shall state the 
 75.28  purpose of the conference, and that the proposed order will be 
 75.29  entered as a final and binding default order if the requesting 
 75.30  party fails both parties fail to appear at the conference.  The 
 75.31  notice shall also state that if only one party appears at the 
 75.32  conference and there is no new information provided, the matter 
 75.33  shall proceed by default.  The notice shall be served on the 
 75.34  parties by first class mail at their last known addresses, and 
 75.35  the method of service shall be documented in the public 
 75.36  authority file. 
 76.1      (c) A party alleging domestic abuse by the other party 
 76.2   shall not be required to participate in a conference.  In such a 
 76.3   case, the public authority shall meet separately with the 
 76.4   parties in order to determine whether an agreement can be 
 76.5   reached. 
 76.6      (d) If both parties appear at the conference and agree to 
 76.7   all issues, and the public authority approves the agreement, the 
 76.8   public authority shall prepare a consent order which the parties 
 76.9   and the public authority sign.  The public authority shall 
 76.10  submit the consent order to the administrative law judge or 
 76.11  district court judge for signature.  Upon signature, the order 
 76.12  shall be a final order and shall be served on the parties by 
 76.13  first class mail.  
 76.14     (d) If the party requesting the conference does not appear 
 76.15  and fails to provide a written excuse (with supporting 
 76.16  documentation if relevant) to the public authority within seven 
 76.17  days after the date of the conference which constitutes good 
 76.18  cause (e) If a party does not appear at the conference, the 
 76.19  matter shall proceed directly to the contested administrative 
 76.20  proceeding which has been scheduled.  If both of the parties 
 76.21  fail to appear at the conference, the public authority may enter 
 76.22  submit a default order through the uncontested administrative 
 76.23  process.  The public authority shall not enter the default order 
 76.24  until at least seven days after the date of the conference.  
 76.25     For purposes of this section, misrepresentation, excusable 
 76.26  neglect, or circumstances beyond the control of the person who 
 76.27  requested the conference which prevented the person's appearance 
 76.28  at the conference constitutes good cause for failure to appear.  
 76.29  If the public authority finds good cause, the conference shall 
 76.30  be rescheduled by the public authority and the public authority 
 76.31  shall send notice as required under this subdivision.  The 
 76.32  public authority shall strike the contested administrative 
 76.33  proceeding from the court calendar and notify the parties in 
 76.34  writing. 
 76.35     (e) (f) If the parties appear at the conference, the public 
 76.36  authority shall seek and do not reach agreement of the parties 
 77.1   to the entry of a consent order which establishes child support 
 77.2   in accordance with applicable law., the public authority shall 
 77.3   advise the parties that if a consent order is not entered, the 
 77.4   matter will be remains scheduled for a hearing before an 
 77.5   administrative law judge, or a district court judge or 
 77.6   referee contested administrative proceeding, and that the public 
 77.7   authority will seek the establishment of child support at 
 77.8   the hearing proceeding in accordance with the highest amount 
 77.9   permitted under section sections 518.551, subdivision 5.  If an 
 77.10  agreement to enter the consent order is not reached at the 
 77.11  conference, the public authority shall schedule the matter for a 
 77.12  contested hearing, and 518.5512, subdivision 5. 
 77.13     (f) If an agreement is reached by the parties at the 
 77.14  conference, a consent order shall be prepared by the public 
 77.15  authority, and shall be signed by the parties.  All consent and 
 77.16  default orders shall be signed by the nonattorney employee of 
 77.17  the public authority and shall be submitted to an administrative 
 77.18  law judge or the district court for approval and signature.  The 
 77.19  order is enforceable upon the signature by the administrative 
 77.20  law judge or the district court.  The consent order shall be 
 77.21  served on the parties under the rules of civil procedure. 
 77.22     Sec. 49.  Minnesota Statutes 1996, section 518.5511, is 
 77.23  amended by adding a subdivision to read: 
 77.24     Subd. 3a.  [ALTERNATIVE ADMINISTRATIVE RESOLUTIONS.] (a)(1) 
 77.25  Any party may proceed immediately to a contested administrative 
 77.26  proceeding under subdivision 4 by making a written request to 
 77.27  the public authority.  The request must be on a form prepared by 
 77.28  the commissioner of human services. 
 77.29     (2) The public authority may also proceed directly to a 
 77.30  contested administrative proceeding.  
 77.31     (3) The public authority shall schedule the contested 
 77.32  administrative proceeding and give the parties a written notice 
 77.33  regarding the contested administrative proceeding.  The notice 
 77.34  shall be served according to the rules of civil procedure on the 
 77.35  parties and filed with the court.  After receipt of the notice 
 77.36  of the contested administrative proceeding, the court 
 78.1   administrator shall file the documents.  The notice shall 
 78.2   contain: 
 78.3      (i) the date, time, and place of the contested 
 78.4   administrative proceeding; 
 78.5      (ii) a description of the action proposed; 
 78.6      (iii) a statement of the issues to be determined; 
 78.7      (iv) notification of the right of the parties to be 
 78.8   represented by an attorney or by the parties; 
 78.9      (v) a citation to this section and section 518.5512; 
 78.10     (vi) a brief description of the procedure to be followed at 
 78.11  the contested administrative proceeding; 
 78.12     (vii) a statement advising the parties that certain 
 78.13  information, as determined by the public authority, must be 
 78.14  submitted and the date by which the information must be 
 78.15  postmarked or received by the court.  The requested information 
 78.16  must be filed with the court and served on the public authority 
 78.17  not less than 14 days prior to the contested administrative 
 78.18  proceeding; 
 78.19     (viii) a statement advising the parties that failure to 
 78.20  appear at the contested administrative proceeding may result in 
 78.21  the entry of a default order; and 
 78.22     (ix) a separate support order worksheet. 
 78.23     (b) At any time in the administrative process, including 
 78.24  prior to the issuance of the proposed order, if the parties and 
 78.25  the public authority are in agreement, the public authority 
 78.26  shall prepare a consent order to be signed by the public 
 78.27  authority and the parties.  The parties shall waive any of their 
 78.28  rights to the notices and time frames required by this section.  
 78.29  The public authority shall submit the order to the 
 78.30  administrative law judge or district court judge for signature.  
 78.31  Upon signature by the court, the order shall be a final order, 
 78.32  shall be filed with the court administrator, and shall be served 
 78.33  by first class mail on the parties. 
 78.34     Sec. 50.  Minnesota Statutes 1996, section 518.5511, 
 78.35  subdivision 4, is amended to read: 
 78.36     Subd. 4.  [CONTESTED ADMINISTRATIVE PROCEEDING.] (a) All 
 79.1   counties shall participate in the contested administrative 
 79.2   process established in this section as designated in a statewide 
 79.3   implementation plan to be set forth by the commissioner of human 
 79.4   services.  No county shall be required to participate in the 
 79.5   contested administrative process until after the county has been 
 79.6   trained.  The contested administrative process shall be in 
 79.7   operation in all counties no later than July 1, 1998, with the 
 79.8   exception of Hennepin county which shall have a pilot program in 
 79.9   operation no later than July 1, 1996.  
 79.10     The Hennepin county pilot program shall be jointly planned, 
 79.11  implemented, and evaluated by the department of human services, 
 79.12  the office of administrative hearings, the fourth judicial 
 79.13  district court, and Hennepin county.  The pilot program shall 
 79.14  provide that one-half of the case load use the contested 
 79.15  administrative process.  The pilot program shall include an 
 79.16  evaluation which shall be conducted after one year of program 
 79.17  operation.  A preliminary evaluation report shall be submitted 
 79.18  by the commissioner to the legislature by March 1, 1997.  A 
 79.19  final evaluation report shall be submitted by the commissioner 
 79.20  to the legislature by January 15, 1998.  The pilot program shall 
 79.21  continue pending final decision by the legislature, or until the 
 79.22  commissioner determines that the pilot program shall discontinue 
 79.23  and that Hennepin county shall not participate in the contested 
 79.24  administrative process. 
 79.25     In counties designated by the commissioner, contested 
 79.26  hearings administrative proceedings required under this section 
 79.27  shall be scheduled before administrative law judges, and shall 
 79.28  be conducted in accordance with the provisions under this 
 79.29  section.  In counties not designated by the commissioner, 
 79.30  contested hearings administrative proceedings shall be conducted 
 79.31  in district court in accordance with the rules of civil 
 79.32  procedure and the rules of family court.  The district court 
 79.33  shall not conduct administrative proceedings in counties 
 79.34  designated by the commissioner.  
 79.35     (b) An administrative law judge may conduct hearings 
 79.36  administrative proceedings and approve a stipulation reached on 
 80.1   a contempt motion brought by the public authority.  Any 
 80.2   stipulation that involves a finding of contempt and a jail 
 80.3   sentence, whether stayed or imposed, shall require the review 
 80.4   and signature of a district court judge. 
 80.5      (c) A party, witness, or attorney may appear or testify by 
 80.6   telephone, audiovisual means, or other electronic means, at the 
 80.7   discretion of the administrative law judge. 
 80.8      (d) Before implementing the process in a county, the chief 
 80.9   administrative law judge, the commissioner of human services, 
 80.10  the director of the county human services agency, the county 
 80.11  attorney, the county court administrator, and the county sheriff 
 80.12  shall jointly establish procedures, and the county shall provide 
 80.13  hearing facilities for implementing this process in the county.  
 80.14  A contested administrative hearing proceeding shall be conducted 
 80.15  in a courtroom, if one is available, or a conference or meeting 
 80.16  room with at least two exits and of sufficient size to permit 
 80.17  adequate physical separation of the parties.  The court 
 80.18  administrator shall, to the extent practical, provide 
 80.19  administrative support for the contested hearing administrative 
 80.20  proceeding.  Security personnel shall either be present during 
 80.21  the administrative hearings proceedings, or be available to 
 80.22  respond to a request for emergency assistance.  
 80.23     (e) The contested administrative hearings shall be 
 80.24  conducted under the rules of the office of administrative 
 80.25  hearings, Minnesota Rules, parts 1400.5275, 1400.5500, 1400.6000 
 80.26  to 1400.6400, 1400.6600 to 1400.7000, 1400.7100 to 1400.7500, 
 80.27  1400.7700, 1400.7800, and 1400.8100, as adopted by the chief 
 80.28  administrative law judge.  For matters not initiated under 
 80.29  subdivision 2, documents from the moving party shall be served 
 80.30  and filed at least 21 14 days prior to the hearing and the 
 80.31  opposing party shall serve and file documents raising new issues 
 80.32  at least ten days prior to the hearing.  In all contested 
 80.33  administrative proceedings, the administrative law judge may 
 80.34  limit the extent and timing of discovery.  Except as provided 
 80.35  under this section, other aspects of the case, including, but 
 80.36  not limited to, discovery, shall be conducted under the rules of 
 81.1   family court, the rules of civil procedure, and chapter 518.  
 81.2      (f) Pursuant According to a contested administrative 
 81.3   hearing, the administrative law judge shall make findings of 
 81.4   fact, conclusions, and a final decision and issue an order.  
 81.5   Orders issued by an administrative law judge may be enforceable 
 81.6   by the contempt powers of the district courts.  
 81.7      (g) At the time the matter is scheduled for a contested 
 81.8   hearing administrative proceeding, the public authority shall 
 81.9   file in the district court copies of all relevant documents sent 
 81.10  to or received from the parties, in addition to the any 
 81.11  documents filed under subdivision 2, paragraph (e) (d).  These 
 81.12  documents may be used as evidence by the judge in deciding the 
 81.13  case without need for further foundation testimony.  For matters 
 81.14  scheduled for a contested hearing administrative proceeding 
 81.15  which were not initiated under subdivision 2, the public 
 81.16  authority shall obtain any income information available to the 
 81.17  public authority through the department of economic security and 
 81.18  serve this information on all parties and file the information 
 81.19  with the court at least five days prior to the hearing. 
 81.20     (h) When only one party appears at the contested 
 81.21  administrative proceeding, a hearing shall be conducted.  The 
 81.22  administrative law judge or district court judge shall prepare 
 81.23  an order and file it with the district court.  The court shall 
 81.24  serve the order on the parties by first class mail at the last 
 81.25  known address and shall provide a copy of the order to the 
 81.26  public authority. 
 81.27     (i) If neither party appears at the contested 
 81.28  administrative proceeding and no new information has been 
 81.29  submitted or made available to the court or public authority, 
 81.30  the hearing shall be struck from the court calendar and a 
 81.31  default order shall be prepared by the public authority.  The 
 81.32  public authority shall submit the order to the administrative 
 81.33  law judge, district court judge, or referee for signature.  If 
 81.34  neither party appears and new information is available to the 
 81.35  court or public authority, the administrative law judge or 
 81.36  district court judge shall prepare an order based on the new 
 82.1   information.  The court shall serve the order on the parties by 
 82.2   first class mail at the last known address and shall provide a 
 82.3   copy of the order to the public authority. 
 82.4      (j) The decision and order of the administrative law judge 
 82.5   is appealable to the court of appeals in the same manner as a 
 82.6   decision of the district court.  
 82.7      Sec. 51.  Minnesota Statutes 1996, section 518.5512, 
 82.8   subdivision 2, is amended to read: 
 82.9      Subd. 2.  [PATERNITY.] (a) After service of the notice and 
 82.10  proposed order, a nonattorney employee of the public authority 
 82.11  may request an administrative law judge or the district court to 
 82.12  order the child, mother, or alleged father to submit to blood or 
 82.13  genetic tests.  The order is effective when signed by an 
 82.14  administrative law judge or the district court. Failure to 
 82.15  comply with the order for blood or genetic tests may result in a 
 82.16  default determination of parentage.  
 82.17     (b) If parentage is contested at the administrative hearing 
 82.18  proceeding, the administrative law judge may order temporary 
 82.19  child support under section 257.62, subdivision 5, and shall 
 82.20  refer the case to the district court.  The district court shall 
 82.21  have the authority to decide the case based on the 
 82.22  administrative process documents and shall not require the 
 82.23  issuance of any alternate pleadings. 
 82.24     (c) The district court may appoint counsel for an indigent 
 82.25  alleged father only after the return of the blood or genetic 
 82.26  test results from the testing laboratory. 
 82.27     Sec. 52.  Minnesota Statutes 1996, section 518.5512, 
 82.28  subdivision 3, is amended to read: 
 82.29     Subd. 3.  [COST-OF-LIVING ADJUSTMENT.] The notice of 
 82.30  application for adjustment shall be treated as a proposed order 
 82.31  under section 518.5511, subdivision 2, paragraph (c).  The 
 82.32  public authority shall stay the adjustment of support upon 
 82.33  receipt of a request for an administrative conference to proceed 
 82.34  immediately to a contested administrative proceeding under 
 82.35  section 518.5511, subdivision 3a.  An obligor requesting an 
 82.36  administrative conference to proceed immediately to a contested 
 83.1   administrative proceeding shall provide all relevant information 
 83.2   that establishes an insufficient increase in income to justify 
 83.3   the adjustment of the support obligation.  If the obligor fails 
 83.4   to submit any evidence at the contested administrative 
 83.5   conference proceeding, the cost-of-living adjustment will 
 83.6   immediately go into effect. 
 83.7      Sec. 53.  Minnesota Statutes 1996, section 518.5512, is 
 83.8   amended by adding a subdivision to read: 
 83.9      Subd. 5.  [DEFAULT STANDARD.] (a) If it is not possible to 
 83.10  determine or estimate the earning ability of an obligor and the 
 83.11  obligor has failed to provide information to the court and 
 83.12  public authority, then: 
 83.13     (1) child support shall be calculated based on 40 hours per 
 83.14  week at 200 percent of the federal minimum wage; and 
 83.15     (2) any child care contribution shall be calculated based 
 83.16  on the obligor's proportionate share of the child care expenses 
 83.17  using 40 hours per week at 200 percent of the federal minimum 
 83.18  wage as the income of the obligor. 
 83.19     (b) If it is known that the obligor has employer-related 
 83.20  insurance available, then health insurance shall be ordered to 
 83.21  be provided by the obligor and the obligor shall be ordered to 
 83.22  pay 50 percent of the uninsured expenses.  If it is unknown 
 83.23  whether there is employer-related insurance or if there is no 
 83.24  employer-related insurance, the obligor shall be ordered to 
 83.25  provide dependent care only insurance.  If the obligee has 
 83.26  better health insurance available, the obligor shall be ordered 
 83.27  to pay 50 percent of the obligee's health insurance premium and 
 83.28  50 percent of the uninsured expenses. 
 83.29     (c) The following expenses shall be reserved if it is not 
 83.30  possible to calculate the obligor's contribution toward 
 83.31  unreimbursed public assistance, support arrearages, and 
 83.32  pregnancy and confinement expenses. 
 83.33     Sec. 54.  Minnesota Statutes 1996, section 518.5512, is 
 83.34  amended by adding a subdivision to read: 
 83.35     Subd. 6.  [ADMINISTRATIVE AUTHORITY.] (a) In each case in 
 83.36  which support rights are assigned under section 256.741, 
 84.1   subdivision 1, or where the public authority is providing 
 84.2   services under an application for child support services, a 
 84.3   nonattorney employee of the public authority may, without 
 84.4   requirement of a court order: 
 84.5      (1) recognize and enforce orders of child support agencies 
 84.6   of other states; 
 84.7      (2) compel by subpoena the production of all papers, books, 
 84.8   records, documents, or other evidentiary material needed to 
 84.9   establish a parentage or child support order or to modify or 
 84.10  enforce a child support order; 
 84.11     (3) change the payee to the appropriate person, 
 84.12  organization, or agency authorized to receive or collect child 
 84.13  support or any other person or agency designated as the 
 84.14  caretaker of the child by agreement of the legal custodian; 
 84.15     (4) order income withholding of child support under section 
 84.16  518.611; 
 84.17     (5) secure assets to satisfy the debt or arrearage in cases 
 84.18  in which there is a support debt or arrearage by:  (i) 
 84.19  intercepting or seizing periodic or lump sum payments from state 
 84.20  or local agencies, including reemployment insurance, workers' 
 84.21  compensation payments, judgments, settlements, and lotteries; 
 84.22  (ii) attaching and seizing assets of the obligor held in 
 84.23  financial institutions or public or private retirement funds; 
 84.24  and (iii) imposing liens and, in appropriate cases, forcing the 
 84.25  sale of property and the distribution of proceeds; and 
 84.26     (6) increase the amount of the monthly support payments to 
 84.27  include amounts for debts or arrearages for the purpose of 
 84.28  securing overdue support.  
 84.29     (b) Subpoenas may be served anywhere within the state and 
 84.30  served outside the state in the same manner as prescribed by law 
 84.31  for service of process of subpoenas issued by the district court 
 84.32  of this state.  When a subpoena under this subdivision is served 
 84.33  on a third-party recordkeeper, written notice of the subpoena 
 84.34  shall be mailed to the person who is the subject of the 
 84.35  subpoenaed material at the person's last known address within 
 84.36  three days of the day the subpoena is served.  This notice 
 85.1   provision does not apply if there is reasonable cause to believe 
 85.2   the giving of the notice may lead to interference with the 
 85.3   production of the subpoenaed documents. 
 85.4      (c) A person served with a subpoena may make a written 
 85.5   objection to the public authority before the time specified in 
 85.6   the subpoena for compliance.  The public authority shall cancel 
 85.7   or modify the subpoena, if appropriate.  The public authority 
 85.8   shall pay the reasonable costs of producing the documents, if 
 85.9   requested. 
 85.10     (d) Subpoenas shall be enforceable in the same manner as 
 85.11  subpoenas of the district court, in proceedings initiated by 
 85.12  complaint of the public authority in the district court. 
 85.13     Sec. 55.  Minnesota Statutes 1996, section 518.611, is 
 85.14  amended by adding a subdivision to read: 
 85.15     Subd. 1a.  [APPLICATION.] (a) As required by federal law, 
 85.16  this section applies to all support and maintenance obligations 
 85.17  that are initially ordered or modified and are being enforced by 
 85.18  the public authority. 
 85.19     (b) Effective January 1, 1994, this section applies to all 
 85.20  other support and maintenance orders issued by the court. 
 85.21     Sec. 56.  Minnesota Statutes 1996, section 518.611, is 
 85.22  amended by adding a subdivision to read: 
 85.23     Subd. 1b.  [ORDER.] Whenever a support order as defined in 
 85.24  section 518.54, subdivision 42, is initially determined and 
 85.25  ordered or modified by a judicial or administrative court, the 
 85.26  public authority responsible for child support enforcement must 
 85.27  withhold the support from the income of the obligor and forward 
 85.28  it to the public authority.  This section applies regardless of 
 85.29  the source of income of the person obligated to pay the support 
 85.30  or maintenance. 
 85.31     Sec. 57.  Minnesota Statutes 1996, section 518.611, is 
 85.32  amended by adding a subdivision to read: 
 85.33     Subd. 1c.  [INCOME WITHHOLDING NOTICE.] (a) Every income 
 85.34  withholding notice for support and maintenance must be a 
 85.35  separate document and shall contain: 
 85.36     (1) the obligor's social security number and date of birth; 
 86.1      (2) the name and address of the obligor's employer or other 
 86.2   payor of funds; 
 86.3      (3) provisions requiring the obligor to keep the public 
 86.4   authority informed of the name and address of the obligor's 
 86.5   current employer; and 
 86.6      (4) provisions requiring the obligor to keep the public 
 86.7   authority informed as to whether the obligor has access to 
 86.8   employer-related health insurance coverage and the health 
 86.9   insurance policy information, if applicable. 
 86.10     (b) Upon entry of the order for support or maintenance, the 
 86.11  court shall provide a copy of the withholding order to the 
 86.12  public authority responsible for child support enforcement.  The 
 86.13  withholding order may not be released to the obligee without the 
 86.14  express written consent of the obligor. 
 86.15     Sec. 58.  Minnesota Statutes 1996, section 518.611, is 
 86.16  amended by adding a subdivision to read: 
 86.17     Subd. 1d.  [NOTICE OF SERVICES.] The commissioner of human 
 86.18  services shall prepare and make available to the courts a form 
 86.19  notice that explains child support and maintenance collection 
 86.20  services available through the public authority responsible for 
 86.21  child support enforcement, including income withholding.  Upon 
 86.22  receiving a petition for dissolution of marriage or legal 
 86.23  separation, the court administrator shall promptly send the form 
 86.24  notice to the petitioner and respondent at the addresses stated 
 86.25  in the petition 
 86.26     Sec. 59.  Minnesota Statutes 1996, section 518.611, is 
 86.27  amended by adding a subdivision to read: 
 86.28     Subd. 1e.  [COLLECTION SERVICES.] (a) Upon receipt of an 
 86.29  income withholding order, the petitioner or respondent, if they 
 86.30  are not a recipient of public assistance or receiving services 
 86.31  shall apply either for full child support collection services 
 86.32  through the public authority or for income withholding only 
 86.33  services.  
 86.34     (b) For those persons applying for income withholding only 
 86.35  services, a monthly service fee of $15 must be charged to the 
 86.36  obligor.  This fee is in addition to the amount of support or 
 87.1   maintenance ordered by the court and must be withheld through 
 87.2   income withholding.  The public authority shall explain the 
 87.3   service options in this subdivision to the affected parties and 
 87.4   encourage the applicant to apply for full child support 
 87.5   collection services.  The service fee under section 518.551, 
 87.6   subdivision 7, applies to all nonpublic assistance applicants 
 87.7   who apply for full collection child support services and to all 
 87.8   applicants who apply for income withholding only services. 
 87.9      Sec. 60.  Minnesota Statutes 1996, section 518.611, 
 87.10  subdivision 2, is amended to read: 
 87.11     Subd. 2.  [CONDITIONS OF INCOME WITHHOLDING.] (a) This 
 87.12  subdivision and subdivision 3 shall only apply to orders for 
 87.13  support or maintenance issued prior to January 1, 1994, and for 
 87.14  which the court did not order income withholding.  Withholding 
 87.15  shall result when:  
 87.16     (1) the obligor requests it in writing to the public 
 87.17  authority; 
 87.18     (2) the custodial parent obligee requests it by making a 
 87.19  motion to the court and the court finds that previous support 
 87.20  has not been paid on a timely or consistent basis or that the 
 87.21  obligor has threatened expressly or otherwise to stop or reduce 
 87.22  payments; or 
 87.23     (3) the obligor fails to make the maintenance or support 
 87.24  payments, and the following conditions are met:  
 87.25     (i) the obligor is at least 30 days in arrears;. 
 87.26     (ii) the obligee or the public authority serves written 
 87.27  notice of income withholding, showing arrearage, on the obligor 
 87.28  at least 15 days before service of the notice of income 
 87.29  withholding and a copy of the court's order on the payor of 
 87.30  funds; 
 87.31     (iii) within the 15-day period, the obligor fails to move 
 87.32  the court to deny withholding on the grounds that an arrearage 
 87.33  of at least 30 days does not exist as of the date of the notice 
 87.34  of income withholding, or on other grounds limited to mistakes 
 87.35  of fact, and, ex parte, to stay service on the payor of funds 
 87.36  until the motion to deny withholding is heard; 
 88.1      (iv) the obligee or the public authority sends the payor of 
 88.2   funds a notice of the withholding requirements and the 
 88.3   provisions of this section; and 
 88.4      (v) the obligee serves on the public authority a copy of 
 88.5   the notice of income withholding, a copy of the court's order, 
 88.6   an application, and the fee to use the public authority's 
 88.7   collection services.  
 88.8   For those persons not applying for the public authority's IV-D 
 88.9   services, a monthly service fee of $15 must be charged to the 
 88.10  obligor in addition to the amount of child support ordered by 
 88.11  the court and withheld through automatic income withholding, or 
 88.12  for persons applying for the public authority's IV-D services, 
 88.13  the service fee under section 518.551, subdivision 7, applies.  
 88.14  The county agency shall explain to affected persons the services 
 88.15  available and encourage the applicant to apply for IV-D services.
 88.16     (b) The employer or payor of funds shall withhold from the 
 88.17  obligor's income an additional amount equal to 20 percent of the 
 88.18  monthly child support or maintenance obligation until the 
 88.19  arrearage is paid.  
 88.20     (c) In cases where child support or maintenance is not 
 88.21  assigned under section 256.74, if an obligor has overpaid a 
 88.22  child support or maintenance obligation because of a 
 88.23  modification of or error in the amount owed, the public 
 88.24  authority shall: 
 88.25     (1) apply the amount of the overpayment to reduce the 
 88.26  amount of any child support or maintenance related arrearages or 
 88.27  debts owed to the obligee; and 
 88.28     (2) if an overpayment amount remains after the reduction of 
 88.29  any arrearage or debt, reduce the amount of the child support 
 88.30  remitted to the obligee by an amount equal to no more than 20 
 88.31  percent of the current monthly support or maintenance obligation 
 88.32  and remit this amount to the obligor until the overpayment is 
 88.33  reduced to zero. 
 88.34     (d) The obligor may move the court, under section 518.64, 
 88.35  to modify the order respecting the amount of maintenance or 
 88.36  support. 
 89.1      (e) Every order for support or maintenance shall provide 
 89.2   for a conspicuous notice of the provisions of this subdivision 
 89.3   that complies with section 518.68, subdivision 2.  An order 
 89.4   without this notice remains subject to this subdivision. 
 89.5      (f) Absent a court order to the contrary, if an arrearage 
 89.6   exists at the time an order for ongoing support or maintenance 
 89.7   would otherwise terminate, income withholding shall continue in 
 89.8   effect in an amount equal to the former support or maintenance 
 89.9   obligation plus an additional amount equal to 20 percent of the 
 89.10  monthly child support obligation, until all arrears have been 
 89.11  paid in full. 
 89.12     Sec. 61.  Minnesota Statutes 1996, section 518.611, is 
 89.13  amended by adding a subdivision to read: 
 89.14     Subd. 2b.  [INCOME WITHHOLDING.] The income withholding 
 89.15  shall take effect without prior judicial notice to the obligor 
 89.16  and without the need for judicial or administrative hearing.  
 89.17  For the purpose of subdivision 2, after the public authority 
 89.18  commences the withholding, the public authority shall notify the 
 89.19  obligor that the withholding has commenced.  The notice shall 
 89.20  include the information provided to the employer in the income 
 89.21  withholding order.  
 89.22     Sec. 62.  Minnesota Statutes 1996, section 518.611, is 
 89.23  amended by adding a subdivision to read: 
 89.24     Subd. 2c.  [CONTEST.] The obligor may contest the 
 89.25  withholding commenced under subdivisions 2 and 2b on the limited 
 89.26  grounds that the withholding or the amount withheld is improper 
 89.27  due to mistake of fact.  If the obligor chooses to contest the 
 89.28  withholding, the obligor must do so no later than 15 days after 
 89.29  receipt of the notice by doing all of the following: 
 89.30     (1) filing a motion with the court contesting the 
 89.31  withholding, including in the motion the mistakes of fact that 
 89.32  occurred; 
 89.33     (2) serving a copy of the motion on the public authority 
 89.34  and the obligee; and 
 89.35     (3) securing a date for hearing of the motion contesting 
 89.36  the withholding no later than 45 days after receiving notice 
 90.1   that withholding commenced. 
 90.2      Sec. 63.  Minnesota Statutes 1996, section 518.611, 
 90.3   subdivision 3, is amended to read: 
 90.4      Subd. 3.  [WITHHOLDING HEARING.] Within 45 days from the 
 90.5   date of the notice given under subdivision 2, the court shall 
 90.6   hold the hearing on the motion under subdivision 2 and notify 
 90.7   the parties of its decision.  At the hearing to deny 
 90.8   withholding, if the court finds that there was no mistake of 
 90.9   fact, the court shall order income withholding to begin no later 
 90.10  than the first pay period that occurs after 14 days following 
 90.11  the date of the hearing.  If the court finds that an arrearage 
 90.12  of at least 30 days existed as of the date of the notice of 
 90.13  income withholding, but finds a mistake in the amount of 
 90.14  arrearage, the court shall order continue the income 
 90.15  withholding, but it shall correct the amount of arrearage to be 
 90.16  withheld under subdivision 2, paragraph (b). 
 90.17     Sec. 64.  Minnesota Statutes 1996, section 518.611, 
 90.18  subdivision 4, is amended to read: 
 90.19     Subd. 4.  [EFFECT OF ORDER.] (a) Notwithstanding any law to 
 90.20  the contrary, the order or notice is binding on the employer, 
 90.21  trustee, payor of the funds, or financial institution when 
 90.22  service under subdivision 2 has been made. 
 90.23     Withholding must begin no later than the first pay period 
 90.24  that occurs after 14 days following the date of the notice.  In 
 90.25  the case of a financial institution, preauthorized transfers 
 90.26  must occur in accordance with a court-ordered payment schedule.  
 90.27  An employer, payor of funds, or financial institution in this 
 90.28  state is required to withhold income according to court orders 
 90.29  for withholding issued by other states or territories. 
 90.30     The payor shall withhold from the income payable to the 
 90.31  obligor the amount specified in the order and amounts required 
 90.32  under subdivision 2 and section 518.613 and shall remit, within 
 90.33  ten seven business days of the date the obligor is paid the 
 90.34  remainder of the income, the amounts withheld to the public 
 90.35  authority.  The payor shall identify on the remittance 
 90.36  information the obligor's social security number, the case 
 91.1   identifier, and the date the obligor is paid the remainder of 
 91.2   the income.  The obligor is considered to have paid the amount 
 91.3   withheld as of the date the obligor received the remainder of 
 91.4   the income.  The financial institution shall execute 
 91.5   preauthorized transfers from the deposit accounts of the obligor 
 91.6   in the amount specified in the order and amounts required under 
 91.7   subdivision 2 as directed by the public authority responsible 
 91.8   for child support enforcement.  
 91.9      (b) Employers may combine all amounts withheld from one pay 
 91.10  period into one payment to each public authority, but shall 
 91.11  separately identify each obligor making payment.  Amounts 
 91.12  received by the public authority which are in excess of public 
 91.13  assistance expended for the party or for a child shall be 
 91.14  remitted to the party.  
 91.15     (c) An employer shall not discharge, or refuse to hire, or 
 91.16  otherwise discipline an employee as a result of a wage or salary 
 91.17  withholding authorized by this section.  The employer or other 
 91.18  payor of funds shall be liable to the obligee for any amounts 
 91.19  required to be withheld.  A financial institution is liable to 
 91.20  the obligee if funds in any of the obligor's deposit accounts 
 91.21  identified in the court order equal the amount stated in the 
 91.22  preauthorization agreement but are not transferred by the 
 91.23  financial institution in accordance with the agreement.  An 
 91.24  employer or other payor of funds that fails to withhold or 
 91.25  transfer funds in accordance with this section is also liable to 
 91.26  the obligee for interest on the funds at the rate applicable to 
 91.27  judgments under section 549.09, computed from the date the funds 
 91.28  were required to be withheld or transferred.  An employer or 
 91.29  other payor of funds is liable for reasonable attorney fees of 
 91.30  the obligee or public authority incurred in enforcing the 
 91.31  liability under this paragraph.  An employer or other payor of 
 91.32  funds that has failed to comply with the requirements of this 
 91.33  section is subject to contempt sanctions under section 518.615.  
 91.34  If an employer violates this subdivision, a court may award the 
 91.35  employee twice the wages lost as a result of this violation.  If 
 91.36  a court finds the employer violates this subdivision, the court 
 92.1   shall impose a civil fine of not less than $500. 
 92.2      (d) An employer receiving an income withholding notice from 
 92.3   another state shall withhold and distribute the funds as 
 92.4   directed in the withholding notice and shall apply the law of 
 92.5   the obligor's principal place of employment when determining: 
 92.6      (i) the employer's fee for processing an income withholding 
 92.7   notice; 
 92.8      (ii) the maximum amount permitted to be withheld from the 
 92.9   obligor's income; and 
 92.10     (iii) the times within which the employer must implement 
 92.11  the withholding order and forward the child support payment.  
 92.12     (e) As used in this section, "business day" means a day on 
 92.13  which state offices are open for regular business. 
 92.14     Sec. 65.  Minnesota Statutes 1996, section 518.611, 
 92.15  subdivision 5, is amended to read: 
 92.16     Subd. 5.  [ARREARAGE ORDER.] Nothing in this section shall 
 92.17  prevent the court or public authority from ordering the payor of 
 92.18  funds to withhold amounts to satisfy the obligor's previous 
 92.19  arrearage in child support or maintenance payments, the 
 92.20  obligor's liability for reimbursement of child support or of 
 92.21  public assistance pursuant to under sections 256.87 256.741, 
 92.22  subdivision 8, and 257.66, for pregnancy and confinement 
 92.23  expenses and for blood test costs, and any service fees that may 
 92.24  be imposed under section 518.551.  This remedy shall not operate 
 92.25  to exclude availability of other remedies to enforce judgments. 
 92.26     Sec. 66.  Minnesota Statutes 1996, section 518.611, 
 92.27  subdivision 6, is amended to read: 
 92.28     Subd. 6.  [PRIORITY.] (a) An order for withholding under 
 92.29  this section or execution or garnishment upon a judgment for 
 92.30  child support arrearages or preadjudicated expenses shall have 
 92.31  priority over an attachment, execution, garnishment, or wage 
 92.32  assignment and shall not be subject to the statutory limitations 
 92.33  on amounts levied against the income of the obligor.  Amounts 
 92.34  withheld from an employee's income must not exceed the maximum 
 92.35  permitted under the Consumer Credit Protection Act, United 
 92.36  States Code, title 15, section 1673(b)(2). 
 93.1      (b) If a single employee is subject to multiple withholding 
 93.2   orders for the support of more than one child, the payor of 
 93.3   funds shall comply with all of the orders to the extent that the 
 93.4   total amount withheld from the payor's income does not exceed 
 93.5   the limits imposed under the Consumer Credit Protection Act, 
 93.6   giving priority to amounts designated in each order as current 
 93.7   support as follows: 
 93.8      (1) if the total of the amounts designated in the orders as 
 93.9   current support exceeds the amount available for income 
 93.10  withholding, the payor of funds shall allocate to each order an 
 93.11  amount for current support equal to the amount designated in 
 93.12  that order as current support, divided by the total of the 
 93.13  amounts designated in the orders as current support, multiplied 
 93.14  by the amount of the income available for income withholding; 
 93.15  and 
 93.16     (2) if the total of the amounts designated in the orders as 
 93.17  current support does not exceed the amount available for income 
 93.18  withholding, the payor of funds shall pay the amounts designated 
 93.19  as current support, and shall allocate to each order an amount 
 93.20  for past due support equal to the amount designated in that 
 93.21  order as past due support, divided by the total of the amounts 
 93.22  designated in the orders as past due support, multiplied by the 
 93.23  amount of income remaining available for income withholding 
 93.24  after the payment of current support. 
 93.25     (c) If more than one order exists involving the same 
 93.26  obligor and child, the public authority shall enforce the most 
 93.27  current order.  Income withholding that has been implemented 
 93.28  under a previous order pursuant according to this section or 
 93.29  section 518.613 shall be terminated as of the date of the most 
 93.30  current order.  The public authority shall notify the payor of 
 93.31  funds to withhold under the most current withholding order. 
 93.32     (d) Notwithstanding any law to the contrary, funds from 
 93.33  income sources included in section 518.54, subdivision 6, 
 93.34  whether periodic or lump sum, are not exempt from attachment or 
 93.35  execution upon a judgment for child support arrearages. 
 93.36     Sec. 67.  Minnesota Statutes 1996, section 518.611, 
 94.1   subdivision 10, is amended to read: 
 94.2      Subd. 10.  [ORDER TERMINATING INCOME WITHHOLDING.] (a) 
 94.3   Whenever an obligation for support of a child or maintenance of 
 94.4   a spouse, or both, terminates under the terms of the order or 
 94.5   decree establishing the obligation, and where the obligation is 
 94.6   enforced by an order for income withholding from the obligor, 
 94.7   the court shall enter an order, directed to the obligor's 
 94.8   employer or other payer of funds, which terminates the income 
 94.9   withholding.  The order terminating income withholding must 
 94.10  specify the effective date of the order, referencing the initial 
 94.11  order or decree establishing the support obligation. 
 94.12     The order must be entered once the following conditions 
 94.13  have been met: 
 94.14     (1) the obligor serves written notice of the application 
 94.15  for termination of income withholding by mail upon the obligee 
 94.16  at the obligee's last known mailing address; and a duplicate 
 94.17  copy of the application is served upon the public authority 
 94.18  responsible for the processing of support collection services; 
 94.19     (2) the application for termination of income withholding 
 94.20  specifies the event that terminates the support obligation, the 
 94.21  effective date of the termination of the support obligation, and 
 94.22  the applicable provisions of the order or decree that 
 94.23  established the support obligation; 
 94.24     (3) the application includes the complete name of the 
 94.25  obligor's employer or other payer of funds, the business mailing 
 94.26  address, the court action and court file number, and the support 
 94.27  and collections file number, if known; and 
 94.28     (4) after receipt of the application for termination of 
 94.29  income withholding, the obligee or the public authority fails 
 94.30  within 20 days to request a hearing on the issue of whether 
 94.31  income withholding of support should continue clearly specifying 
 94.32  the basis for the continued support obligation and, ex parte, to 
 94.33  stay the service of the order terminating income withholding 
 94.34  upon the obligor's employer or other payer of funds, pending the 
 94.35  outcome of the hearing. 
 94.36     (b) If, after conferring with the obligee and obligor, the 
 95.1   public authority determines that the support obligation has 
 95.2   terminated under the terms of the order or decree establishing 
 95.3   the obligation income withholding is no longer applicable, the 
 95.4   public authority shall notify the obligee and obligor of intent 
 95.5   to terminate income withholding.  Five days following this 
 95.6   notice, the public authority shall issue a notice to the payor 
 95.7   of funds terminating income withholding, without a requirement 
 95.8   for a court order terminating income withholding, unless a 
 95.9   hearing has been requested under paragraph (a). 
 95.10     Sec. 68.  Minnesota Statutes 1996, section 518.611, 
 95.11  subdivision 12, is amended to read: 
 95.12     Subd. 12.  [INTERSTATE INCOME WITHHOLDING.] Upon receipt of 
 95.13  an order for support entered in another state, with the 
 95.14  specified documentation from an authorized agency, the public 
 95.15  authority shall implement income withholding under subdivision 
 95.16  2.  If the obligor requests a hearing under subdivision 3 to 
 95.17  contest withholding, the court administrator shall enter the 
 95.18  order.  Entry of the order shall not confer jurisdiction on the 
 95.19  courts or administrative agencies of this state for any purpose 
 95.20  other than contesting implementation of income withholding The 
 95.21  obligor may contest the withholding under this section. 
 95.22     Sec. 69.  Minnesota Statutes 1996, section 518.611, is 
 95.23  amended by adding a subdivision to read: 
 95.24     Subd. 13.  [NOTIFICATION OF TERMINATION OF 
 95.25  EMPLOYMENT.] When a withholding order is in effect and the 
 95.26  obligor's employment is terminated, the obligor and the 
 95.27  obligor's employer or the payor of funds shall notify the public 
 95.28  agency responsible for child support enforcement of the 
 95.29  termination within ten days of the termination date.  The notice 
 95.30  shall include the obligor's home address and the name and 
 95.31  address of the obligor's new employer or payor of funds, if 
 95.32  known.  Information disclosed under this section shall not be 
 95.33  divulged except to the extent necessary for the administration 
 95.34  of the child support enforcement program or as authorized by law.
 95.35     Sec. 70.  Minnesota Statutes 1996, section 518.611, is 
 95.36  amended by adding a subdivision to read: 
 96.1      Subd. 14.  [NONLIABILITY OF EMPLOYER.] An employer who 
 96.2   complies with an income withholding order under this chapter or 
 96.3   chapter 518C, that appears valid, shall not be subject to civil 
 96.4   liability to any individual or agency for taking action in 
 96.5   compliance with the order. 
 96.6      Sec. 71.  Minnesota Statutes 1996, section 518.611, is 
 96.7   amended by adding a subdivision to read: 
 96.8      Subd. 15.  [ELECTRONIC TRANSMISSION.] Orders under this 
 96.9   section or notices of income withholding may be transmitted for 
 96.10  enforcement purposes by electronic means. 
 96.11     Sec. 72.  Minnesota Statutes 1996, section 518.611, is 
 96.12  amended by adding a subdivision to read: 
 96.13     Subd. 16.  [WAIVER.] (a) The court may waive the 
 96.14  requirements of this section only if the court finds there is no 
 96.15  arrearage in child support and maintenance as of the date of the 
 96.16  hearing and:  
 96.17     (1) one party demonstrates and the court finds there is 
 96.18  good cause to waive the requirements of this section or to 
 96.19  terminate income withholding on an order previously entered 
 96.20  under this section; or 
 96.21     (2) all parties reach an agreement and the agreement is 
 96.22  approved by the court after a finding that the agreement is 
 96.23  likely to result in regular and timely payments.  
 96.24     The court's findings waiving the requirements under clauses 
 96.25  (1) and (2) must include a written explanation of the reasons 
 96.26  why income withholding would not be in the best interests of the 
 96.27  child. 
 96.28     (b) In addition to the other requirements in this 
 96.29  subdivision, if the case involves a modification of support, the 
 96.30  court must make a finding that support has been timely made. 
 96.31     (c) If the court waives the requirements of this section, 
 96.32  the obligee may at any time and without cause request the court 
 96.33  or the public authority to issue an order for income withholding 
 96.34  under this section. 
 96.35     (d) If the public authority does not have an open file on 
 96.36  the parties, either party must apply for services.  Upon receipt 
 97.1   of the request, the public authority shall serve a copy of the 
 97.2   court's order according to this section on the obligor's 
 97.3   employer or other payor of funds.  The public authority shall 
 97.4   notify the court that withholding has begun at the request of 
 97.5   the obligor under this section. 
 97.6      Sec. 73.  Minnesota Statutes 1996, section 518.616, is 
 97.7   amended by adding a subdivision to read: 
 97.8      Subd. 1a.  [COURT ORDERS FOR CHILDREN RECEIVING PUBLIC 
 97.9   ASSISTANCE.] For any order enforced by the public authority for 
 97.10  children receiving assistance under any of the programs referred 
 97.11  to in section 256.741, subdivision 8, the public authority may 
 97.12  seek a court order requiring the obligor to participate in work 
 97.13  activities if the obligor is in arrears in child support.  Work 
 97.14  activities include the following: 
 97.15     (1) unsubsidized employment; 
 97.16     (2) subsidized private sector employment; 
 97.17     (3) subsidized public sector employment or work experience 
 97.18  only if sufficient private sector employment is unavailable; 
 97.19     (4) on-the-job training; 
 97.20     (5) job search and job readiness; 
 97.21     (6) education directly related to employment, in the case 
 97.22  of an obligor who: 
 97.23     (i) has not attained 20 years of age; and 
 97.24     (ii) has not received a high school diploma or certificate 
 97.25  of high school equivalency; 
 97.26     (7) job skills training directly related to employment; and 
 97.27     (8) satisfactory attendance at a secondary school in the 
 97.28  case of an obligor who: 
 97.29     (i) has not completed secondary school; and 
 97.30     (ii) is a dependent child, or a head of a household and who 
 97.31  has not attained 20 years of age; and 
 97.32     (9) vocational educational training, not to exceed 12 
 97.33  months with respect to any individual. 
 97.34     Sec. 74.  [518.618] [COLLECTION; ARREARS ONLY.] 
 97.35     (a) Remedies available for the collection and enforcement 
 97.36  of support in this chapter and chapters 256, 257, and 518C also 
 98.1   apply to cases in which the child or children for whom support 
 98.2   is owed are emancipated and the obligor owes past support or has 
 98.3   an accumulated arrearage as of the date of the youngest child's 
 98.4   emancipation.  Child support arrearages under this section 
 98.5   include arrearages for child support, medical support, child 
 98.6   care, pregnancy and birth expenses, and unreimbursed medical 
 98.7   expenses as defined in section 518.171. 
 98.8      (b) This section applies retroactively to any support 
 98.9   arrearage that accrued on or before the date of enactment and to 
 98.10  all arrearages accruing after the date of enactment. 
 98.11     Sec. 75.  Minnesota Statutes 1996, section 518.64, 
 98.12  subdivision 2, is amended to read: 
 98.13     Subd. 2.  [MODIFICATION.] (a) The terms of an order 
 98.14  respecting maintenance or support may be modified upon a showing 
 98.15  of one or more of the following:  (1) substantially increased or 
 98.16  decreased earnings of a party; (2) substantially increased or 
 98.17  decreased need of a party or the child or children that are the 
 98.18  subject of these proceedings; (3) receipt of assistance under 
 98.19  sections 256.72 to 256.87 or 256B.01 to 256B.40; (4) a change in 
 98.20  the cost of living for either party as measured by the federal 
 98.21  bureau of statistics, any of which makes the terms unreasonable 
 98.22  and unfair; (5) extraordinary medical expenses of the child not 
 98.23  provided for under section 518.171; or (6) the addition of 
 98.24  work-related or education-related child care expenses of the 
 98.25  obligee or a substantial increase or decrease in existing 
 98.26  work-related or education-related child care expenses.  
 98.27     (b) It is presumed that there has been a substantial change 
 98.28  in circumstances under clause (1), (2), or (4) paragraph (a) and 
 98.29  the terms of a current support order shall be rebuttably 
 98.30  presumed to be unreasonable and unfair if: 
 98.31     (1) the application of the child support guidelines in 
 98.32  section 518.551, subdivision 5, to the current circumstances of 
 98.33  the parties results in a calculated court order that is at least 
 98.34  20 percent and at least $50 per month higher or lower than the 
 98.35  current support order.; 
 98.36     (2) the medical support provisions of the order established 
 99.1   under section 518.171 are not enforceable by the public 
 99.2   authority or the custodial parent; 
 99.3      (3) health coverage ordered under section 518.171 is not 
 99.4   available to the child for whom the order is established by the 
 99.5   parent ordered to provide; or 
 99.6      (4) the existing support obligation is in the form of a 
 99.7   statement of percentage and not a specific dollar amount.  
 99.8      (b) (c) On a motion for modification of maintenance, 
 99.9   including a motion for the extension of the duration of a 
 99.10  maintenance award, the court shall apply, in addition to all 
 99.11  other relevant factors, the factors for an award of maintenance 
 99.12  under section 518.552 that exist at the time of the motion.  On 
 99.13  a motion for modification of support, the court:  
 99.14     (1) shall apply section 518.551, subdivision 5, and shall 
 99.15  not consider the financial circumstances of each party's spouse, 
 99.16  if any; and 
 99.17     (2) shall not consider compensation received by a party for 
 99.18  employment in excess of a 40-hour work week, provided that the 
 99.19  party demonstrates, and the court finds, that: 
 99.20     (i) the excess employment began after entry of the existing 
 99.21  support order; 
 99.22     (ii) the excess employment is voluntary and not a condition 
 99.23  of employment; 
 99.24     (iii) the excess employment is in the nature of additional, 
 99.25  part-time employment, or overtime employment compensable by the 
 99.26  hour or fractions of an hour; 
 99.27     (iv) the party's compensation structure has not been 
 99.28  changed for the purpose of affecting a support or maintenance 
 99.29  obligation; 
 99.30     (v) in the case of an obligor, current child support 
 99.31  payments are at least equal to the guidelines amount based on 
 99.32  income not excluded under this clause; and 
 99.33     (vi) in the case of an obligor who is in arrears in child 
 99.34  support payments to the obligee, any net income from excess 
 99.35  employment must be used to pay the arrearages until the 
 99.36  arrearages are paid in full. 
100.1      (c) (d) A modification of support or maintenance may be 
100.2   made retroactive only with respect to any period during which 
100.3   the petitioning party has pending a motion for modification but 
100.4   only from the date of service of notice of the motion on the 
100.5   responding party and on the public authority if public 
100.6   assistance is being furnished or the county attorney is the 
100.7   attorney of record.  However, modification may be applied to an 
100.8   earlier period if the court makes express findings that the 
100.9   party seeking modification was precluded from serving a motion 
100.10  by reason of a significant physical or mental disability, a 
100.11  material misrepresentation of another party, or fraud upon the 
100.12  court and that the party seeking modification, when no longer 
100.13  precluded, promptly served a motion.  The court may provide that 
100.14  a reduction in the amount allocated for child care expenses 
100.15  based on a substantial decrease in the expenses is effective as 
100.16  of the date the expenses decreased. 
100.17     (d) (e) Except for an award of the right of occupancy of 
100.18  the homestead, provided in section 518.63, all divisions of real 
100.19  and personal property provided by section 518.58 shall be final, 
100.20  and may be revoked or modified only where the court finds the 
100.21  existence of conditions that justify reopening a judgment under 
100.22  the laws of this state, including motions under section 518.145, 
100.23  subdivision 2.  The court may impose a lien or charge on the 
100.24  divided property at any time while the property, or subsequently 
100.25  acquired property, is owned by the parties or either of them, 
100.26  for the payment of maintenance or support money, or may 
100.27  sequester the property as is provided by section 518.24. 
100.28     (e) (f) The court need not hold an evidentiary hearing on a 
100.29  motion for modification of maintenance or support. 
100.30     (f) (g) Section 518.14 shall govern the award of attorney 
100.31  fees for motions brought under this subdivision. 
100.32     Sec. 76.  Minnesota Statutes 1996, section 518.68, 
100.33  subdivision 2, is amended to read: 
100.34     Subd. 2.  [CONTENTS.] The required notices must be 
100.35  substantially as follows: 
100.36                          IMPORTANT NOTICE 
101.1   1.  PAYMENTS TO PUBLIC AGENCY 
101.2      Pursuant According to Minnesota Statutes, section 518.551, 
101.3      subdivision 1, payments ordered for maintenance and support 
101.4      must be paid to the public agency responsible for child 
101.5      support enforcement as long as the person entitled to 
101.6      receive the payments is receiving or has applied for public 
101.7      assistance or has applied for support and maintenance 
101.8      collection services.  MAIL PAYMENTS TO: 
101.9   2.  DEPRIVING ANOTHER OF CUSTODIAL OR PARENTAL RIGHTS -- A 
101.10  FELONY 
101.11     A person may be charged with a felony who conceals a minor 
101.12     child or takes, obtains, retains, or fails to return a 
101.13     minor child from or to the child's parent (or person with 
101.14     custodial or visitation rights), pursuant according to 
101.15     Minnesota Statutes, section 609.26.  A copy of that section 
101.16     is available from any district court clerk. 
101.17  3.  RULES OF SUPPORT, MAINTENANCE, VISITATION 
101.18     (a) Payment of support or spousal maintenance is to be as 
101.19     ordered, and the giving of gifts or making purchases of 
101.20     food, clothing, and the like will not fulfill the 
101.21     obligation. 
101.22     (b) Payment of support must be made as it becomes due, and 
101.23     failure to secure or denial of rights of visitation is NOT 
101.24     an excuse for nonpayment, but the aggrieved party must seek 
101.25     relief through a proper motion filed with the court. 
101.26     (c) Nonpayment of support is not grounds to deny 
101.27     visitation.  The party entitled to receive support may 
101.28     apply for support and collection services, file a contempt 
101.29     motion, or obtain a judgment as provided in Minnesota 
101.30     Statutes, section 548.091.  
101.31     (d) The payment of support or spousal maintenance takes 
101.32     priority over payment of debts and other obligations. 
101.33     (e) A party who accepts additional obligations of support 
101.34     does so with the full knowledge of the party's prior 
101.35     obligation under this proceeding. 
101.36     (f) Child support or maintenance is based on annual income, 
102.1      and it is the responsibility of a person with seasonal 
102.2      employment to budget income so that payments are made 
102.3      throughout the year as ordered. 
102.4      (g) If there is a layoff or a pay reduction, support may be 
102.5      reduced as of the time of the layoff or pay reduction if a 
102.6      motion to reduce the support is served and filed with the 
102.7      court at that time, but any such reduction must be ordered 
102.8      by the court.  The court is not permitted to reduce support 
102.9      retroactively, except as provided in Minnesota Statutes, 
102.10     section 518.64, subdivision 2, paragraph (c).  
102.11  4.  PARENTAL RIGHTS FROM MINNESOTA STATUTES, SECTION 518.17, 
102.12  SUBDIVISION 3 
102.13     Unless otherwise provided by the Court: 
102.14     (a) Each party has the right of access to, and to receive 
102.15     copies of, school, medical, dental, religious training, and 
102.16     other important records and information about the minor 
102.17     children.  Each party has the right of access to 
102.18     information regarding health or dental insurance available 
102.19     to the minor children.  Presentation of a copy of this 
102.20     order to the custodian of a record or other information 
102.21     about the minor children constitutes sufficient 
102.22     authorization for the release of the record or information 
102.23     to the requesting party. 
102.24     (b) Each party shall keep the other informed as to the name 
102.25     and address of the school of attendance of the minor 
102.26     children.  Each party has the right to be informed by 
102.27     school officials about the children's welfare, educational 
102.28     progress and status, and to attend school and parent 
102.29     teacher conferences.  The school is not required to hold a 
102.30     separate conference for each party. 
102.31     (c) In case of an accident or serious illness of a minor 
102.32     child, each party shall notify the other party of the 
102.33     accident or illness, and the name of the health care 
102.34     provider and the place of treatment. 
102.35     (d) Each party has the right of reasonable access and 
102.36     telephone contact with the minor children. 
103.1   5.  WAGE AND INCOME DEDUCTION OF SUPPORT AND MAINTENANCE 
103.2      Child support and/or spousal maintenance may be withheld 
103.3      from income, with or without notice to the person obligated 
103.4      to pay, when the conditions of Minnesota Statutes, sections 
103.5      518.611 and 518.613, have been met.  A copy of those 
103.6      sections is available from any district court clerk. 
103.7   6.  CHANGE OF ADDRESS OR RESIDENCE 
103.8      Unless otherwise ordered, the person responsible to make 
103.9      support or maintenance payments each party shall notify the 
103.10     person entitled to receive the payment other party, the 
103.11     court, and the public authority responsible for collection, 
103.12     if applicable, of a change of address or residence the 
103.13     following information within 60 ten days of the address or 
103.14     residence change any change:  the residential and mailing 
103.15     address, telephone number, driver's license number, social 
103.16     security number, and name, address, and telephone number of 
103.17     the employer. 
103.18  7.  COST OF LIVING INCREASE OF SUPPORT AND MAINTENANCE 
103.19     Child support and/or spousal maintenance may be adjusted 
103.20     every two years based upon a change in the cost of living 
103.21     (using Department of Labor Consumer Price Index .........., 
103.22     unless otherwise specified in this order) when the 
103.23     conditions of Minnesota Statutes, section 518.641, are met. 
103.24     Cost of living increases are compounded.  A copy of 
103.25     Minnesota Statutes, section 518.641, and forms necessary to 
103.26     request or contest a cost of living increase are available 
103.27     from any district court clerk. 
103.28  8.  JUDGMENTS FOR UNPAID SUPPORT 
103.29     If a person fails to make a child support payment, the 
103.30     payment owed becomes a judgment against the person 
103.31     responsible to make the payment by operation of law on or 
103.32     after the date the payment is due, and the person entitled 
103.33     to receive the payment or the public agency may obtain 
103.34     entry and docketing of the judgment WITHOUT NOTICE to the 
103.35     person responsible to make the payment under Minnesota 
103.36     Statutes, section 548.091.  Interest begins to accrue on a 
104.1      payment or installment of child support whenever the unpaid 
104.2      amount due is greater than the current support due, 
104.3      pursuant according to Minnesota Statutes, section 548.091, 
104.4      subdivision 1a.  
104.5   9.  JUDGMENTS FOR UNPAID MAINTENANCE 
104.6      A judgment for unpaid spousal maintenance may be entered 
104.7      when the conditions of Minnesota Statutes, section 548.091, 
104.8      are met.  A copy of that section is available from any 
104.9      district court clerk. 
104.10  10.  ATTORNEY FEES AND COLLECTION COSTS FOR ENFORCEMENT OF CHILD 
104.11  SUPPORT 
104.12     A judgment for attorney fees and other collection costs 
104.13     incurred in enforcing a child support order will be entered 
104.14     against the person responsible to pay support when the 
104.15     conditions of section 518.14, subdivision 2, are met.  A 
104.16     copy of section 518.14 and forms necessary to request or 
104.17     contest these attorney fees and collection costs are 
104.18     available from any district court clerk. 
104.19  11.  VISITATION EXPEDITOR PROCESS 
104.20     On request of either party or on its own motion, the court 
104.21     may appoint a visitation expeditor to resolve visitation 
104.22     disputes under Minnesota Statutes, section 518.1751.  A 
104.23     copy of that section and a description of the expeditor 
104.24     process is available from any district court clerk. 
104.25  12.  VISITATION REMEDIES AND PENALTIES 
104.26     Remedies and penalties for the wrongful denial of 
104.27     visitation rights are available under Minnesota Statutes, 
104.28     section 518.175, subdivision 6.  These include compensatory 
104.29     visitation; civil penalties; bond requirements; contempt; 
104.30     and reversal of custody.  A copy of that subdivision and 
104.31     forms for requesting relief are available from any district 
104.32     court clerk. 
104.33     Sec. 77.  Minnesota Statutes 1996, section 518C.101, is 
104.34  amended to read: 
104.35     518C.101 [DEFINITIONS.] 
104.36     In this chapter: 
105.1      (a) "Child" means an individual, whether over or under the 
105.2   age of majority, who is or is alleged to be owed a duty of 
105.3   support by the individual's parent or who is or is alleged to be 
105.4   the beneficiary of a support order directed to the parent. 
105.5      (b) "Child support order" means a support order for a 
105.6   child, including a child who has attained the age of majority 
105.7   under the law of the issuing state. 
105.8      (c) "Duty of support" means an obligation imposed or 
105.9   imposable by law to provide support for a child, spouse, or 
105.10  former spouse, including an unsatisfied obligation to provide 
105.11  support. 
105.12     (d) "Home state" means the state in which a child lived 
105.13  with a parent or a person acting as parent for at least six 
105.14  consecutive months immediately preceding the time of filing of a 
105.15  petition or comparable pleading for support and, if a child is 
105.16  less than six months old, the state in which the child lived 
105.17  from birth with any of them.  A period of temporary absence of 
105.18  any of them is counted as part of the six-month or other period. 
105.19     (e) "Income" includes earnings or other periodic 
105.20  entitlements to money from any source and any other property 
105.21  subject to withholding for support under the law of this state. 
105.22     (f) "Income-withholding order" means an order or other 
105.23  legal process directed to an obligor's employer or other debtor 
105.24  under section 518.611 or 518.613, to withhold support from the 
105.25  income of the obligor. 
105.26     (g) "Initiating state" means a state in from which a 
105.27  proceeding is forwarded or in which a proceeding is filed for 
105.28  forwarding to a responding state under this chapter or a law or 
105.29  procedure substantially similar to this chapter, the uniform 
105.30  reciprocal enforcement of support act, or the revised uniform 
105.31  reciprocal enforcement of support act is filed for forwarding to 
105.32  a responding state. 
105.33     (h) "Initiating tribunal" means the authorized tribunal in 
105.34  an initiating state. 
105.35     (i) "Issuing state" means the state in which a tribunal 
105.36  issues a support order or renders a judgment determining 
106.1   parentage. 
106.2      (j) "Issuing tribunal" means the tribunal that issues a 
106.3   support order or renders a judgment determining parentage. 
106.4      (k) "Law" includes decisional and statutory law and rules 
106.5   and regulations having the force of law. 
106.6      (l) "Obligee" means: 
106.7      (1) an individual to whom a duty of support is or is 
106.8   alleged to be owed or in whose favor a support order has been 
106.9   issued or a judgment determining parentage has been rendered; 
106.10     (2) a state or political subdivision to which the rights 
106.11  under a duty of support or support order have been assigned or 
106.12  which has independent claims based on financial assistance 
106.13  provided to an individual obligee; or 
106.14     (3) an individual seeking a judgment determining parentage 
106.15  of the individual's child. 
106.16     (m) "Obligor" means an individual, or the estate of a 
106.17  decedent: 
106.18     (1) who owes or is alleged to owe a duty of support; 
106.19     (2) who is alleged but has not been adjudicated to be a 
106.20  parent of a child; or 
106.21     (3) who is liable under a support order. 
106.22     (n) "Petition" means a petition or comparable pleading used 
106.23  pursuant to section 518.5511. 
106.24     (o) "Register" means to file a support order or judgment 
106.25  determining parentage in the office of the court administrator. 
106.26     (p) (o) "Registering tribunal" means a tribunal in which a 
106.27  support order is registered. 
106.28     (q) (p) "Responding state" means a state to in which a 
106.29  proceeding is filed or to which a proceeding is forwarded for 
106.30  filing from an initiating state under this chapter or a law or 
106.31  procedure substantially similar to this chapter, the uniform 
106.32  reciprocal enforcement of support act, or the revised uniform 
106.33  reciprocal enforcement of support act. 
106.34     (r) (q) "Responding tribunal" means the authorized tribunal 
106.35  in a responding state. 
106.36     (s) (r) "Spousal support order" means a support order for a 
107.1   spouse or former spouse of the obligor. 
107.2      (t) (s) "State" means a state of the United States, the 
107.3   District of Columbia, the Commonwealth of Puerto Rico, the 
107.4   United States Virgin Islands, or any territory or insular 
107.5   possession subject to the jurisdiction of the United 
107.6   States.  "State" This term also includes: 
107.7      (1) an Indian tribe; and 
107.8      (2) a foreign jurisdiction that has enacted a law or 
107.9   established procedures for issuance and enforcement of support 
107.10  orders that which are substantially similar to the procedures 
107.11  under this chapter, the Uniform Reciprocal Enforcement of 
107.12  Support Act, or the Revised Uniform Reciprocal Enforcement of 
107.13  Support Act.  
107.14     (u) (t) "Support enforcement agency" means a public 
107.15  official or agency authorized to seek: 
107.16     (1) seek enforcement of support orders or laws relating to 
107.17  the duty of support; 
107.18     (2) seek establishment or modification of child support; 
107.19     (3) seek determination of parentage; or 
107.20     (4) to locate obligors or their assets. 
107.21     (v) (u) "Support order" means a judgment, decree, or order, 
107.22  whether temporary, final, or subject to modification, for the 
107.23  benefit of a child, a spouse, or a former spouse, which provides 
107.24  for monetary support, health care, arrearages, or reimbursement, 
107.25  and may include related costs and fees, interest, income 
107.26  withholding, attorney's fees, and other relief. 
107.27     (w) (v) "Tribunal" means a court, administrative agency, or 
107.28  quasi-judicial entity authorized to establish, enforce, or 
107.29  modify support orders or to determine parentage. 
107.30     Sec. 78.  Minnesota Statutes 1996, section 518C.204, is 
107.31  amended to read: 
107.32     518C.204 [SIMULTANEOUS PROCEEDINGS IN ANOTHER STATE.] 
107.33     (a) A tribunal of this state may exercise jurisdiction to 
107.34  establish a support order if the petition or comparable pleading 
107.35  is filed after a petition or comparable pleading is filed in 
107.36  another state only if: 
108.1      (1) the petition or comparable pleading in this state is 
108.2   filed before the expiration of the time allowed in the other 
108.3   state for filing a responsive pleading challenging the exercise 
108.4   of jurisdiction by the other state; 
108.5      (2) the contesting party timely challenges the exercise of 
108.6   jurisdiction in the other state; and 
108.7      (3) if relevant, this state is the home state of the child. 
108.8      (b) A tribunal of this state may not exercise jurisdiction 
108.9   to establish a support order if the petition or comparable 
108.10  pleading is filed before a petition or comparable pleading is 
108.11  filed in another state if: 
108.12     (1) the petition or comparable pleading in the other state 
108.13  is filed before the expiration of the time allowed in this state 
108.14  for filing a responsive pleading challenging the exercise of 
108.15  jurisdiction by this state; 
108.16     (2) the contesting party timely challenges the exercise of 
108.17  jurisdiction in this state; and 
108.18     (3) if relevant, the other state is the home state of the 
108.19  child. 
108.20     Sec. 79.  Minnesota Statutes 1996, section 518C.205, is 
108.21  amended to read: 
108.22     518C.205 [CONTINUING, EXCLUSIVE JURISDICTION.] 
108.23     (a) A tribunal of this state issuing a support order 
108.24  consistent with the law of this state has continuing, exclusive 
108.25  jurisdiction over a child support order: 
108.26     (1) as long as this state remains the residence of the 
108.27  obligor, the individual obligee, or the child for whose benefit 
108.28  the support order is issued; or 
108.29     (2) until each individual party has all of the parties who 
108.30  are individuals have filed written consent consents with the 
108.31  tribunal of this state for a tribunal of another state to modify 
108.32  the order and assume continuing, exclusive jurisdiction. 
108.33     (b) A tribunal of this state issuing a child support order 
108.34  consistent with the law of this state may not exercise its 
108.35  continuing jurisdiction to modify the order if the order has 
108.36  been modified by a tribunal of another state pursuant according 
109.1   to this section or a law substantially similar to this chapter. 
109.2      (c) If a child support order of this state is modified by a 
109.3   tribunal of another state pursuant according to this section or 
109.4   a law substantially similar to this chapter, a tribunal of this 
109.5   state loses its continuing, exclusive jurisdiction with regard 
109.6   to prospective enforcement of the order issued in this state, 
109.7   and may only: 
109.8      (1) enforce the order that was modified as to amounts 
109.9   accruing before the modification; 
109.10     (2) enforce nonmodifiable aspects of that order; and 
109.11     (3) provide other appropriate relief for violations of that 
109.12  order which occurred before the effective date of the 
109.13  modification. 
109.14     (d) A tribunal of this state shall recognize the 
109.15  continuing, exclusive jurisdiction of a tribunal of another 
109.16  state which has issued a child support order pursuant according 
109.17  to this section or a law substantially similar to this chapter. 
109.18     (e) A temporary support order issued ex parte or pending 
109.19  resolution of a jurisdictional conflict does not create 
109.20  continuing, exclusive jurisdiction in the issuing tribunal. 
109.21     (f) A tribunal of this state issuing a support order 
109.22  consistent with the law of this state has continuing, exclusive 
109.23  jurisdiction over a spousal support order throughout the 
109.24  existence of the support obligation.  A tribunal of this state 
109.25  may not modify a spousal support order issued by a tribunal of 
109.26  another state having continuing, exclusive jurisdiction over 
109.27  that order under the law of that state. 
109.28     Sec. 80.  Minnesota Statutes 1996, section 518C.207, is 
109.29  amended to read: 
109.30     518C.207 [RECOGNITION CONTROLLING OF CHILD SUPPORT 
109.31  ORDERS ORDER.] 
109.32     (a) If a proceeding is brought under this chapter, and one 
109.33  or more child support orders have been issued in this or another 
109.34  state with regard to an obligor and a child, a tribunal of this 
109.35  state shall apply the following rules in determining which order 
109.36  to recognize for purposes of continuing, exclusive jurisdiction: 
110.1      (1) If a proceeding is brought under this chapter and only 
110.2   one tribunal has issued a child support order, the order of that 
110.3   tribunal is controlling and must be recognized. 
110.4      (b) If a proceeding is brought under this chapter, and two 
110.5   or more child support orders have been issued by tribunals of 
110.6   this state or another state with regard to the same obligor and 
110.7   child, a tribunal of this state shall apply the rules in 
110.8   paragraphs (1) to (3) determining which order to recognize for 
110.9   purposes of continuing, exclusive jurisdiction. 
110.10     (1) If only one of the tribunals would have continuing, 
110.11  exclusive jurisdiction under this chapter, the order of that 
110.12  tribunal is controlling and must be recognized. 
110.13     (2) If two or more than one of the tribunals would have 
110.14  issued child support orders for the same obligor and child, and 
110.15  only one of the tribunals would have continuing, exclusive 
110.16  jurisdiction under this chapter, the order of that tribunal must 
110.17  be recognized continuing, exclusive jurisdiction under this 
110.18  chapter, an order issued by a tribunal in the current home state 
110.19  of the child is controlling and must be recognized, but if an 
110.20  order has not been issued in the current home state of the 
110.21  child, the most recently issued order controls and must be 
110.22  recognized. 
110.23     (3) If two or more none of the tribunals would have issued 
110.24  child support orders for the same obligor and child, and more 
110.25  than one of the tribunals would have continuing, exclusive 
110.26  jurisdiction under this chapter, an order issued by a tribunal 
110.27  in the current home state of the child must be recognized, but 
110.28  if an order has not been issued in the current home state of the 
110.29  child, the order most recently issued must be recognized the 
110.30  tribunal of this state having jurisdiction over the parties 
110.31  shall issue a child support order, which controls and must be 
110.32  recognized. 
110.33     (4) (c) If two or more tribunals have issued child support 
110.34  orders have been issued for the same obligor and child, and none 
110.35  of the tribunals would have continuing, exclusive jurisdiction 
110.36  under this chapter, the tribunal of this state may issue a child 
111.1   support order, which must be recognized and if the obligor or 
111.2   the individual obligee resides in this state, a party may 
111.3   request a tribunal of this state to determine which order is 
111.4   controlling and must be recognized under paragraph (b).  The 
111.5   request must be accompanied by a certified copy of every support 
111.6   order in effect.  The requesting party shall give notice of the 
111.7   request to each party whose rights may be affected by the 
111.8   determination. 
111.9      (b) (d) The tribunal that has issued an the controlling 
111.10  order recognized under paragraph (a), (b), or (c) is the 
111.11  tribunal having that has continuing, exclusive 
111.12  jurisdiction under section 518C.205. 
111.13     (e) A tribunal of this state which determines by order the 
111.14  identity of the controlling order under paragraph (b), clause 
111.15  (1) or (2), or which issues a new controlling order under 
111.16  paragraph (b), clause (3), shall state in that order the basis 
111.17  upon which the tribunal made its determination. 
111.18     (f) Within 30 days after issuance of an order determining 
111.19  the identity of the controlling order, the party obtaining the 
111.20  order shall file a certified copy of the order with each 
111.21  tribunal that issued or registered an earlier order of child 
111.22  support.  A party who obtains the order and fails to file a 
111.23  certified copy is subject to appropriate sanctions by a tribunal 
111.24  in which the issue of failure to file arises.  The failure to 
111.25  file does not affect the validity or enforceability of the 
111.26  controlling order. 
111.27     Sec. 81.  Minnesota Statutes 1996, section 518C.301, is 
111.28  amended to read: 
111.29     518C.301 [PROCEEDINGS UNDER THIS CHAPTER.] 
111.30     (a) Except as otherwise provided in this chapter, sections 
111.31  518C.301 to 518C.319 apply to all proceedings under this chapter.
111.32     (b) This chapter provides for the following proceedings: 
111.33     (1) establishment of an order for spousal support or child 
111.34  support pursuant according to section 518C.401; 
111.35     (2) enforcement of a support order and income-withholding 
111.36  order of another state without registration pursuant according 
112.1   to sections section 518C.501 and 518C.502; 
112.2      (3) registration of an order for spousal support or child 
112.3   support of another state for enforcement pursuant according to 
112.4   sections 518C.601 to 518C.612; 
112.5      (4) modification of an order for child support or spousal 
112.6   support issued by a tribunal of this state pursuant according to 
112.7   sections 518C.203 to 518C.206; 
112.8      (5) registration of an order for child support of another 
112.9   state for modification pursuant according to sections 518C.601 
112.10  to 518C.612; 
112.11     (6) determination of parentage pursuant according to 
112.12  section 518C.701; and 
112.13     (7) assertion of jurisdiction over nonresidents pursuant 
112.14  according to sections 518C.201 and 518C.202. 
112.15     (c) An individual petitioner or a support enforcement 
112.16  agency may commence a proceeding authorized under this chapter 
112.17  by filing a petition in an initiating tribunal for forwarding to 
112.18  a responding tribunal or by filing a petition or a comparable 
112.19  pleading directly in a tribunal of another state which has or 
112.20  can obtain personal jurisdiction over the respondent. 
112.21     Sec. 82.  Minnesota Statutes 1996, section 518C.304, is 
112.22  amended to read: 
112.23     518C.304 [DUTIES OF INITIATING TRIBUNAL.] 
112.24     (a) Upon the filing of a petition authorized by this 
112.25  chapter, an initiating tribunal of this state shall forward 
112.26  three copies of the petition and its accompanying documents: 
112.27     (1) to the responding tribunal or appropriate support 
112.28  enforcement agency in the responding state; or 
112.29     (2) if the identity of the responding tribunal is unknown, 
112.30  to the state information agency of the responding state with a 
112.31  request that they be forwarded to the appropriate tribunal and 
112.32  that receipt be acknowledged. 
112.33     (b) If a responding state has not enacted the language in 
112.34  this chapter or a law or procedure substantially similar to this 
112.35  chapter, a tribunal of this state may issue a certificate or 
112.36  other document and make a finding required by the law of the 
113.1   responding state.  If the responding state is a foreign 
113.2   jurisdiction, the tribunal may specify the amount of support 
113.3   sought and provide other documents necessary to satisfy the 
113.4   requirements of the responding state. 
113.5      Sec. 83.  Minnesota Statutes 1996, section 518C.305, is 
113.6   amended to read: 
113.7      518C.305 [DUTIES AND POWERS OF RESPONDING TRIBUNAL.] 
113.8      (a) When a responding tribunal of this state receives a 
113.9   petition or comparable pleading from an initiating tribunal or 
113.10  directly pursuant according to section 518C.301, paragraph (c), 
113.11  it shall cause the petition or pleading to be filed and notify 
113.12  the petitioner by first class mail where and when it was filed. 
113.13     (b) A responding tribunal of this state, to the extent 
113.14  otherwise authorized by law, may do one or more of the following:
113.15     (1) issue or enforce a support order, modify a child 
113.16  support order, or render a judgment to determine parentage; 
113.17     (2) order an obligor to comply with a support order, 
113.18  specifying the amount and the manner of compliance; 
113.19     (3) order income withholding; 
113.20     (4) determine the amount of any arrearages, and specify a 
113.21  method of payment; 
113.22     (5) enforce orders by civil or criminal contempt, or both; 
113.23     (6) set aside property for satisfaction of the support 
113.24  order; 
113.25     (7) place liens and order execution on the obligor's 
113.26  property; 
113.27     (8) order an obligor to keep the tribunal informed of the 
113.28  obligor's current residential address, telephone number, 
113.29  employer, address of employment, and telephone number at the 
113.30  place of employment; 
113.31     (9) issue a bench warrant for an obligor who has failed 
113.32  after proper notice to appear at a hearing ordered by the 
113.33  tribunal and enter the bench warrant in any local and state 
113.34  computer systems for criminal warrants; 
113.35     (10) order the obligor to seek appropriate employment by 
113.36  specified methods; 
114.1      (11) award reasonable attorney's fees and other fees and 
114.2   costs; and 
114.3      (12) grant any other available remedy. 
114.4      (c) A responding tribunal of this state shall include in a 
114.5   support order issued under this chapter, or in the documents 
114.6   accompanying the order, the calculations on which the support 
114.7   order is based. 
114.8      (d) A responding tribunal of this state may not condition 
114.9   the payment of a support order issued under this chapter upon 
114.10  compliance by a party with provisions for visitation. 
114.11     (e) If a responding tribunal of this state issues an order 
114.12  under this chapter, the tribunal shall send a copy of the order 
114.13  by first class mail to the petitioner and the respondent and to 
114.14  the initiating tribunal, if any. 
114.15     Sec. 84.  Minnesota Statutes 1996, section 518C.310, is 
114.16  amended to read: 
114.17     518C.310 [DUTIES OF STATE INFORMATION AGENCY.] 
114.18     (a) The unit within the department of human services that 
114.19  receives and disseminates incoming interstate actions under 
114.20  title IV-D of the Social Security Act from section 518C.02, 
114.21  subdivision 1a, is the state information agency under this 
114.22  chapter. 
114.23     (b) The state information agency shall: 
114.24     (1) compile and maintain a current list, including 
114.25  addresses, of the tribunals in this state which have 
114.26  jurisdiction under this chapter and any support enforcement 
114.27  agencies in this state and transmit a copy to the state 
114.28  information agency of every other state; 
114.29     (2) maintain a register of tribunals and support 
114.30  enforcement agencies received from other states; 
114.31     (3) forward to the appropriate tribunal in the place in 
114.32  this state in which the individual obligee or the obligor 
114.33  resides, or in which the obligor's property is believed to be 
114.34  located, all documents concerning a proceeding under this 
114.35  chapter received from an initiating tribunal or the state 
114.36  information agency of the initiating state; and 
115.1      (4) obtain information concerning the location of the 
115.2   obligor and the obligor's property within this state not exempt 
115.3   from execution, by such means as postal verification and federal 
115.4   or state locator services, examination of telephone directories, 
115.5   requests for the obligor's address from employers, and 
115.6   examination of governmental records, including, to the extent 
115.7   not prohibited by other law, those relating to real property, 
115.8   vital statistics, law enforcement, taxation, motor vehicles, 
115.9   driver's licenses, and social security; and 
115.10     (5) determine which foreign jurisdictions and Indian tribes 
115.11  have substantially similar procedures for issuance and 
115.12  enforcement of support orders.  The state information agency 
115.13  shall compile and maintain a list, including addresses, of all 
115.14  these foreign jurisdictions and Indian tribes.  The state 
115.15  information agency shall make this list available to all state 
115.16  tribunals and all support enforcement agencies. 
115.17     Sec. 85.  Minnesota Statutes 1996, section 518C.401, is 
115.18  amended to read: 
115.19     518C.401 [PETITION TO ESTABLISH SUPPORT ORDER.] 
115.20     (a) If a support order entitled to recognition under this 
115.21  chapter has not been issued, a responding tribunal of this state 
115.22  may issue a support order if: 
115.23     (1) the individual seeking the order resides in another 
115.24  state; or 
115.25     (2) the support enforcement agency seeking the order is 
115.26  located in another state. 
115.27     (b) The tribunal may issue a temporary child support order 
115.28  if: 
115.29     (1) the respondent has signed a verified statement 
115.30  acknowledging parentage; 
115.31     (2) the respondent has been determined by or pursuant to 
115.32  law to be the parent; or 
115.33     (3) there is other clear and convincing evidence that the 
115.34  respondent is the child's parent. 
115.35     (c) Upon a finding, after notice and opportunity to be 
115.36  heard, that an obligor owes a duty of support, the tribunal 
116.1   shall issue a support order directed to the obligor and may 
116.2   issue other orders pursuant according to section 518C.305. 
116.3      Sec. 86.  Minnesota Statutes 1996, section 518C.501, is 
116.4   amended to read: 
116.5      518C.501 [RECOGNITION EMPLOYER'S RECEIPT OF 
116.6   INCOME-WITHHOLDING ORDER OF ANOTHER STATE.] 
116.7      (a) An income-withholding order issued in another state may 
116.8   be sent by first class mail to the person or entity defined as 
116.9   the obligor's employer under section 518.611 or 518.613 without 
116.10  first filing a petition or comparable pleading or registering 
116.11  the order with a tribunal of this state.  Upon receipt of the 
116.12  order, the employer shall: 
116.13     (1) treat an income-withholding order issued in another 
116.14  state which appears regular on its face as if it had been issued 
116.15  by a tribunal of this state; 
116.16     (2) immediately provide a copy of the order to the obligor; 
116.17  and 
116.18     (3) distribute the funds as directed in the withholding 
116.19  order. 
116.20     (b) An obligor may contest the validity or enforcement of 
116.21  an income-withholding order issued in another state in the same 
116.22  manner as if the order had been issued by a tribunal of this 
116.23  state.  Section 518C.604 applies to the contest.  The obligor 
116.24  shall give notice of the contest to any support enforcement 
116.25  agency providing services to the obligee and to: 
116.26     (1) the person or agency designated to receive payments in 
116.27  the income-withholding order; or 
116.28     (2) if no person or agency is designated, the obligee. 
116.29     Sec. 87.  [518C.503] [EMPLOYER'S COMPLIANCE WITH 
116.30  INCOME-WITHHOLDING ORDER OF ANOTHER STATE.] 
116.31     (a) Upon receipt of an income-withholding order, the 
116.32  obligor's employer shall immediately provide a copy of the order 
116.33  to the obligor.  
116.34     (b) The employer shall treat an income-withholding order 
116.35  issued in another state which appears regular on its face as if 
116.36  it had been issued by a tribunal of this state. 
117.1      (c) Except as otherwise provided in paragraph (d) and 
117.2   section 518C.504, the employer shall withhold and distribute the 
117.3   funds specified in the withholding order by complying with the 
117.4   terms of the order which specify: 
117.5      (1) the duration and amount of periodic payments of current 
117.6   child support, stated as a sum certain; 
117.7      (2) the person or agency designated to receive payments and 
117.8   the address to which the payments are to be forwarded; 
117.9      (3) medical support, whether in the form of periodic cash 
117.10  payment, stated as a sum certain, or ordering the obligor to 
117.11  provide health insurance coverage for the child under a policy 
117.12  available through the obligor's employment; 
117.13     (4) the amount of periodic payments of fees and costs for a 
117.14  support enforcement agency, the issuing tribunal, and the 
117.15  obligee's attorney, stated as sums certain; and 
117.16     (5) the amount of periodic payments of arrearages and 
117.17  interest on arrearages, stated as sums certain. 
117.18     (d) An employer shall comply with the laws of the state of 
117.19  the obligor's principal place of employment for withholding from 
117.20  income with respect to: 
117.21     (1) the employer's fee for processing an income-withholding 
117.22  order; 
117.23     (2) the maximum amount permitted to be withheld from the 
117.24  obligor's income; and 
117.25     (3) the times within which the employer must implement the 
117.26  withholding order and forward the child support payment. 
117.27     Sec. 88.  [518C.504] [COMPLIANCE WITH MULTIPLE 
117.28  INCOME-WITHHOLDING ORDERS.] 
117.29     If an obligor's employer receives multiple 
117.30  income-withholding orders with respect to the earnings of the 
117.31  same obligor, the employer satisfies the terms of the multiple 
117.32  orders if the employer complies with the law of the state of the 
117.33  obligor's principal place of employment to establish the 
117.34  priorities for withholding and allocating income withheld for 
117.35  multiple child support obligees.  
117.36     Sec. 89.  [518C.505] [IMMUNITY FROM CIVIL LIABILITY.] 
118.1      An employer who complies with an income-withholding order 
118.2   issued in another state according to this chapter is not subject 
118.3   to civil liability to an individual or agency with regard to the 
118.4   employer's withholding of child support from the obligor's 
118.5   income. 
118.6      Sec. 90.  [518C.506] [PENALTIES FOR NONCOMPLIANCE.] 
118.7      An employer who willfully fails to comply with an 
118.8   income-withholding order issued by another state and received 
118.9   for enforcement is subject to the same penalties that may be 
118.10  imposed for noncompliance with an order issued by a tribunal of 
118.11  this state. 
118.12     Sec. 91.  [518C.507] [CONTEST BY OBLIGOR.] 
118.13     (a) An obligor may contest the validity or enforcement of 
118.14  an income-withholding order issued in another state and received 
118.15  directly by an employer in this state in the same manner as if 
118.16  the order had been issued by a tribunal of this state.  Section 
118.17  518C.604 applies to the contested order. 
118.18     (b) The obligor shall give notice of the contested order to:
118.19     (1) a support enforcement agency providing services to the 
118.20  obligee; 
118.21     (2) each employer that has directly received an 
118.22  income-withholding order; and 
118.23     (3) the person or agency designated to receive payments in 
118.24  the income-withholding order or if no person or agency is 
118.25  designated, to the obligee. 
118.26     Sec. 92.  [518C.508] [ADMINISTRATIVE ENFORCEMENT OF 
118.27  ORDERS.] 
118.28     (a) A party seeking to enforce a support order or an 
118.29  income-withholding order, or both, issued by a tribunal of 
118.30  another state may send the documents required for registering 
118.31  the order to a support enforcement agency of this state. 
118.32     (b) Upon receipt of the documents, the support enforcement 
118.33  agency, without initially seeking to register the order, shall 
118.34  consider and may use any administrative procedure authorized by 
118.35  the laws of this state to enforce a support order or an 
118.36  income-withholding order, or both.  If the obligor does not 
119.1   contest administrative enforcement, the order need not be 
119.2   registered.  If the obligor contests the validity or 
119.3   administrative enforcement of the order, the support enforcement 
119.4   agency shall register the order under this chapter. 
119.5      Sec. 93.  Minnesota Statutes 1996, section 518C.603, is 
119.6   amended to read: 
119.7      518C.603 [EFFECT OF REGISTRATION FOR ENFORCEMENT.] 
119.8      (a) A support order or income-withholding order issued in 
119.9   another state is registered when the order is filed in the 
119.10  registering tribunal of this state. 
119.11     (b) A registered order issued in another state is 
119.12  enforceable in the same manner and is subject to the same 
119.13  procedures as an order issued by a tribunal of this state. 
119.14     (c) Except as otherwise provided in sections 518C.601 to 
119.15  518C.612 this chapter, a tribunal of this state shall recognize 
119.16  and enforce, but may not modify, a registered order if the 
119.17  issuing tribunal had jurisdiction. 
119.18     Sec. 94.  Minnesota Statutes 1996, section 518C.605, is 
119.19  amended to read: 
119.20     518C.605 [NOTICE OF REGISTRATION OF ORDER.] 
119.21     (a) When a support order or income-withholding order issued 
119.22  in another state is registered, the registering tribunal shall 
119.23  notify the nonregistering party.  Notice must be given by 
119.24  certified or registered mail or by any means of personal service 
119.25  authorized by the law of this state.  The notice must be 
119.26  accompanied by a copy of the registered order and the documents 
119.27  and relevant information accompanying the order. 
119.28     (b) The notice must inform the nonregistering party: 
119.29     (1) that a registered order is enforceable as of the date 
119.30  of registration in the same manner as an order issued by a 
119.31  tribunal of this state; 
119.32     (2) that a hearing to contest the validity or enforcement 
119.33  of the registered order must be requested within 20 days after 
119.34  the date of mailing or personal service of the notice; 
119.35     (3) that failure to contest the validity or enforcement of 
119.36  the registered order in a timely manner will result in 
120.1   confirmation of the order and enforcement of the order and the 
120.2   alleged arrearages and precludes further contest of that order 
120.3   with respect to any matter that could have been asserted; and 
120.4      (4) of the amount of any alleged arrearages. 
120.5      (c) Upon registration of an income-withholding order for 
120.6   enforcement, the registering tribunal shall notify the obligor's 
120.7   employer pursuant according to section 518.611 or 518.613. 
120.8      Sec. 95.  Minnesota Statutes 1996, section 518C.608, is 
120.9   amended to read: 
120.10     518C.608 [CONFIRMED ORDER.] 
120.11     If a contesting party has received notice of registration 
120.12  under section 518C.605, Confirmation of a registered order, 
120.13  whether by operation of law or after notice and hearing, 
120.14  precludes further contest of the order based upon facts that 
120.15  were known by the contesting party at the time of registration 
120.16  with respect to any matter that could have been asserted at the 
120.17  time of registration with respect to any matter that could have 
120.18  been asserted at the time of registration. 
120.19     Sec. 96.  Minnesota Statutes 1996, section 518C.611, is 
120.20  amended to read: 
120.21     518C.611 [MODIFICATION OF CHILD SUPPORT ORDER OF ANOTHER 
120.22  STATE.] 
120.23     (a) After a child support order issued in another state has 
120.24  been registered in this state, the responding tribunal of this 
120.25  state may modify that order only if, section 518C.613 does not 
120.26  apply and after notice and hearing, it finds that: 
120.27     (1) the following requirements are met: 
120.28     (i) the child, the individual obligee, and the obligor do 
120.29  not reside in the issuing state; 
120.30     (ii) a petitioner who is a nonresident of this state seeks 
120.31  modification; and 
120.32     (iii) the respondent is subject to the personal 
120.33  jurisdiction of the tribunal of this state; or 
120.34     (2) an individual party or the child, or a party who is an 
120.35  individual, is subject to the personal jurisdiction of the 
120.36  tribunal of this state and all of the individual parties who are 
121.1   individuals have filed a written consent consents in the issuing 
121.2   tribunal providing that for a tribunal of this state may to 
121.3   modify the support order and assume continuing, exclusive 
121.4   jurisdiction over the order.  However, if the issuing state is a 
121.5   foreign jurisdiction that has not enacted a law or established 
121.6   procedures substantially similar to the procedures in this 
121.7   chapter, the consent otherwise required of an individual 
121.8   residing in this state is not required for the tribunal to 
121.9   assume jurisdiction to modify the child support order.  
121.10     (b) Modification of a registered child support order is 
121.11  subject to the same requirements, procedures, and defenses that 
121.12  apply to the modification of an order issued by a tribunal of 
121.13  this state and the order may be enforced and satisfied in the 
121.14  same manner. 
121.15     (c) A tribunal of this state may not modify any aspect of a 
121.16  child support order that may not be modified under the law of 
121.17  the issuing state.  If two or more tribunals have issued child 
121.18  support orders for the same obligor and child, the order that 
121.19  controls and must be recognized under section 518C.207 
121.20  establishes the aspects of the support order which are 
121.21  nonmodifiable. 
121.22     (d) On issuance of an order modifying a child support order 
121.23  issued in another state, a tribunal of this state becomes the 
121.24  tribunal of continuing, exclusive jurisdiction. 
121.25     (e) Within 30 days after issuance of a modified child 
121.26  support order, the party obtaining the modification shall file a 
121.27  certified copy of the order with the issuing tribunal which had 
121.28  continuing, exclusive jurisdiction over the earlier order, and 
121.29  in each tribunal in which the party knows that earlier order has 
121.30  been registered. 
121.31     Sec. 97.  Minnesota Statutes 1996, section 518C.612, is 
121.32  amended to read: 
121.33     518C.612 [RECOGNITION OF ORDER MODIFIED IN ANOTHER STATE.] 
121.34     A tribunal of this state shall recognize a modification of 
121.35  its earlier child support order by a tribunal of another state 
121.36  which assumed jurisdiction pursuant according to this chapter or 
122.1   a law substantially similar to this chapter and, upon request, 
122.2   except as otherwise provided in this chapter, shall: 
122.3      (1) enforce the order that was modified only as to amounts 
122.4   accruing before the modification; 
122.5      (2) enforce only nonmodifiable aspects of that order; 
122.6      (3) provide other appropriate relief only for violations of 
122.7   that order which occurred before the effective date of the 
122.8   modification; and 
122.9      (4) recognize the modifying order of the other state, upon 
122.10  registration, for the purpose of enforcement. 
122.11     Sec. 98.  [518C.613] [JURISDICTION TO MODIFY CHILD SUPPORT 
122.12  ORDER OF ANOTHER STATE WHEN INDIVIDUAL PARTIES RESIDE IN THIS 
122.13  STATE.] 
122.14     (a) If all of the parties who are individuals reside in 
122.15  this state and the child does not reside in the issuing state, a 
122.16  tribunal of this state has jurisdiction to enforce and to modify 
122.17  the issuing state's child support order in a proceeding to 
122.18  register that order. 
122.19     (b) A tribunal of this state exercising jurisdiction under 
122.20  this section shall apply the provisions of sections 518C.101 to 
122.21  518C.209, and the procedural and substantive laws of this state 
122.22  to the proceeding for enforcement or modification.  Sections 
122.23  518C.301 to 518C.507 and sections 518C.701 to 518C.802 do not 
122.24  apply. 
122.25     Sec. 99.  [518C.614] [NOTICE TO ISSUING TRIBUNAL OF 
122.26  MODIFICATION.] 
122.27     Within 30 days after issuance of a modified child support 
122.28  order, the party obtaining the modification shall file a 
122.29  certified copy of the order with the issuing tribunal that had 
122.30  continuing, exclusive jurisdiction over the earlier order, and 
122.31  in each tribunal in which the party knows the earlier order has 
122.32  been registered.  A party who obtains the order and fails to 
122.33  file a certified copy is subject to appropriate sanctions by a 
122.34  tribunal in which the issue of failure to file arises.  The 
122.35  failure to file does not affect the validity or enforceability 
122.36  of the modified order of the new tribunal having continuing, 
123.1   exclusive jurisdiction. 
123.2      Sec. 100.  [CHILD SUPPORT ENFORCEMENT PROGRAM; SERVICES 
123.3   DELIVERY STUDY.] 
123.4      The commissioner of human services shall conduct a study of 
123.5   the overall state child support enforcement delivery system in 
123.6   order to appropriately meet the performance requirements of new 
123.7   federal law. 
123.8      Sec. 101.  [REPEALER.] 
123.9      (a) Minnesota Statutes 1996, section 518C.9011, is repealed.
123.10     (b) Minnesota Statutes 1996, sections 8.35; 256.74; 
123.11  256.979, subdivision 9; 518.5511, subdivisions 5, 6, 7, 8, and 
123.12  9; 518.611, subdivision 1; 518.613; and 518C.502, are repealed 
123.13  effective July 1, 1997. 
123.14                             ARTICLE 3
123.15                  CHILDREN'S PROGRAM IMPROVEMENTS
123.16     Section 1.  Minnesota Statutes 1996, section 245.4882, 
123.17  subdivision 5, is amended to read: 
123.18     Subd. 5.  [SPECIALIZED RESIDENTIAL TREATMENT SERVICES.] The 
123.19  commissioner of human services shall continue efforts to further 
123.20  interagency collaboration to develop a comprehensive system of 
123.21  services, including family community support and specialized 
123.22  residential treatment services for children.  The services shall 
123.23  be designed for children with emotional disturbance who exhibit 
123.24  violent or destructive behavior and for whom local treatment 
123.25  services are not feasible due to the small number of children 
123.26  statewide who need the services and the specialized nature of 
123.27  the services required.  The services shall be located in 
123.28  community settings.  If no appropriate services are available in 
123.29  Minnesota or within the geographical area in which the residents 
123.30  of the county normally do business, the commissioner is 
123.31  responsible, effective July 1, 1997, for 50 percent of the 
123.32  nonfederal costs of out-of-state treatment of children for whom 
123.33  no appropriate resources are available in Minnesota.  Counties 
123.34  are eligible to receive enhanced state funding under this 
123.35  section only if they have established juvenile screening teams 
123.36  under section 260.151, subdivision 3, and if the out-of-state 
124.1   treatment has been approved by the commissioner.  By January 1, 
124.2   1995, the commissioners of human services and corrections shall 
124.3   jointly develop a plan, including a financing strategy, for 
124.4   increasing the in-state availability of treatment within a 
124.5   secure setting.  By July 1, 1994, the commissioner of human 
124.6   services shall also: 
124.7      (1) conduct a study and develop a plan to meet the needs of 
124.8   children with both a developmental disability and severe 
124.9   emotional disturbance; and 
124.10     (2) study the feasibility of expanding medical assistance 
124.11  coverage to include specialized residential treatment for the 
124.12  children described in this subdivision.  
124.13     Sec. 2.  Minnesota Statutes 1996, section 245.493, 
124.14  subdivision 1, is amended to read: 
124.15     Subdivision 1.  [REQUIREMENTS TO QUALIFY AS A LOCAL 
124.16  CHILDREN'S MENTAL HEALTH COLLABORATIVE.] In order to qualify as 
124.17  a local children's mental health collaborative and be eligible 
124.18  to receive start-up funds, the representatives of the local 
124.19  system of care, including entities provided under section 
124.20  245.4875, subdivision 6, and nongovernmental entities such as 
124.21  parents of children in the target population; parent and 
124.22  consumer organizations; community, civic, and religious 
124.23  organizations; private and nonprofit mental and physical health 
124.24  care providers; culturally specific organizations; local 
124.25  foundations; and businesses, or at a minimum one county, one 
124.26  school district or special education cooperative, and one mental 
124.27  health entity, and, by July 1, 1998, one juvenile justice or 
124.28  corrections entity, must agree to the following: 
124.29     (1) to establish a local children's mental health 
124.30  collaborative and develop an integrated service system; and 
124.31     (2) to commit resources to providing services through the 
124.32  local children's mental health collaborative. 
124.33     Sec. 3.  Minnesota Statutes 1996, section 245.493, is 
124.34  amended by adding a subdivision to read: 
124.35     Subd. 1a.  [DUTIES OF CERTAIN COORDINATING BODIES.] By 
124.36  mutual agreement of the collaborative and a coordinating body 
125.1   listed in this subdivision, a children's mental health 
125.2   collaborative or a collaborative established by the merger of a 
125.3   children's mental health collaborative and a family services 
125.4   collaborative under section 121.8355, may assume the duties of a 
125.5   community transition interagency committee established under 
125.6   section 120.17, subdivision 16; an interagency early 
125.7   intervention committee established under 120.1701, subdivision 
125.8   5; a local advisory council established under section 245.4875, 
125.9   subdivision 5; or a local coordinating council established under 
125.10  section 245.4875, subdivision 6. 
125.11     Sec. 4.  Minnesota Statutes 1996, section 256.01, 
125.12  subdivision 2, is amended to read: 
125.13     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
125.14  section 241.021, subdivision 2, the commissioner of human 
125.15  services shall: 
125.16     (1) Administer and supervise all forms of public assistance 
125.17  provided for by state law and other welfare activities or 
125.18  services as are vested in the commissioner.  Administration and 
125.19  supervision of human services activities or services includes, 
125.20  but is not limited to, assuring timely and accurate distribution 
125.21  of benefits, completeness of service, and quality program 
125.22  management.  In addition to administering and supervising human 
125.23  services activities vested by law in the department, the 
125.24  commissioner shall have the authority to: 
125.25     (a) require county agency participation in training and 
125.26  technical assistance programs to promote compliance with 
125.27  statutes, rules, federal laws, regulations, and policies 
125.28  governing human services; 
125.29     (b) monitor, on an ongoing basis, the performance of county 
125.30  agencies in the operation and administration of human services, 
125.31  enforce compliance with statutes, rules, federal laws, 
125.32  regulations, and policies governing welfare services and promote 
125.33  excellence of administration and program operation; 
125.34     (c) develop a quality control program or other monitoring 
125.35  program to review county performance and accuracy of benefit 
125.36  determinations; 
126.1      (d) require county agencies to make an adjustment to the 
126.2   public assistance benefits issued to any individual consistent 
126.3   with federal law and regulation and state law and rule and to 
126.4   issue or recover benefits as appropriate; 
126.5      (e) delay or deny payment of all or part of the state and 
126.6   federal share of benefits and administrative reimbursement 
126.7   according to the procedures set forth in section 256.017; and 
126.8      (f) make contracts with and grants to public and private 
126.9   agencies and organizations, both profit and nonprofit, and 
126.10  individuals, using appropriated funds. 
126.11     (2) Inform county agencies, on a timely basis, of changes 
126.12  in statute, rule, federal law, regulation, and policy necessary 
126.13  to county agency administration of the programs. 
126.14     (3) Administer and supervise all child welfare activities; 
126.15  promote the enforcement of laws protecting handicapped, 
126.16  dependent, neglected and delinquent children, and children born 
126.17  to mothers who were not married to the children's fathers at the 
126.18  times of the conception nor at the births of the children; 
126.19  license and supervise child-caring and child-placing agencies 
126.20  and institutions; supervise the care of children in boarding and 
126.21  foster homes or in private institutions; and generally perform 
126.22  all functions relating to the field of child welfare now vested 
126.23  in the state board of control. 
126.24     (4) Administer and supervise all noninstitutional service 
126.25  to handicapped persons, including those who are visually 
126.26  impaired, hearing impaired, or physically impaired or otherwise 
126.27  handicapped.  The commissioner may provide and contract for the 
126.28  care and treatment of qualified indigent children in facilities 
126.29  other than those located and available at state hospitals when 
126.30  it is not feasible to provide the service in state hospitals. 
126.31     (5) Assist and actively cooperate with other departments, 
126.32  agencies and institutions, local, state, and federal, by 
126.33  performing services in conformity with the purposes of Laws 
126.34  1939, chapter 431. 
126.35     (6) Act as the agent of and cooperate with the federal 
126.36  government in matters of mutual concern relative to and in 
127.1   conformity with the provisions of Laws 1939, chapter 431, 
127.2   including the administration of any federal funds granted to the 
127.3   state to aid in the performance of any functions of the 
127.4   commissioner as specified in Laws 1939, chapter 431, and 
127.5   including the promulgation of rules making uniformly available 
127.6   medical care benefits to all recipients of public assistance, at 
127.7   such times as the federal government increases its participation 
127.8   in assistance expenditures for medical care to recipients of 
127.9   public assistance, the cost thereof to be borne in the same 
127.10  proportion as are grants of aid to said recipients. 
127.11     (7) Establish and maintain any administrative units 
127.12  reasonably necessary for the performance of administrative 
127.13  functions common to all divisions of the department. 
127.14     (8) Act as designated guardian of both the estate and the 
127.15  person of all the wards of the state of Minnesota, whether by 
127.16  operation of law or by an order of court, without any further 
127.17  act or proceeding whatever, except as to persons committed as 
127.18  mentally retarded.  For children under the guardianship of the 
127.19  commissioner whose interests would be best served by adoptive 
127.20  placement, the commissioner may contract with a licensed 
127.21  child-placing agency to provide adoption services. 
127.22     (9) Act as coordinating referral and informational center 
127.23  on requests for service for newly arrived immigrants coming to 
127.24  Minnesota. 
127.25     (10) The specific enumeration of powers and duties as 
127.26  hereinabove set forth shall in no way be construed to be a 
127.27  limitation upon the general transfer of powers herein contained. 
127.28     (11) Establish county, regional, or statewide schedules of 
127.29  maximum fees and charges which may be paid by county agencies 
127.30  for medical, dental, surgical, hospital, nursing and nursing 
127.31  home care and medicine and medical supplies under all programs 
127.32  of medical care provided by the state and for congregate living 
127.33  care under the income maintenance programs. 
127.34     (12) Have the authority to conduct and administer 
127.35  experimental projects to test methods and procedures of 
127.36  administering assistance and services to recipients or potential 
128.1   recipients of public welfare.  To carry out such experimental 
128.2   projects, it is further provided that the commissioner of human 
128.3   services is authorized to waive the enforcement of existing 
128.4   specific statutory program requirements, rules, and standards in 
128.5   one or more counties.  The order establishing the waiver shall 
128.6   provide alternative methods and procedures of administration, 
128.7   shall not be in conflict with the basic purposes, coverage, or 
128.8   benefits provided by law, and in no event shall the duration of 
128.9   a project exceed four years.  It is further provided that no 
128.10  order establishing an experimental project as authorized by the 
128.11  provisions of this section shall become effective until the 
128.12  following conditions have been met: 
128.13     (a) The proposed comprehensive plan, including estimated 
128.14  project costs and the proposed order establishing the waiver, 
128.15  shall be filed with the secretary of the senate and chief clerk 
128.16  of the house of representatives at least 60 days prior to its 
128.17  effective date. 
128.18     (b) The secretary of health, education, and welfare of the 
128.19  United States has agreed, for the same project, to waive state 
128.20  plan requirements relative to statewide uniformity. 
128.21     (c) A comprehensive plan, including estimated project 
128.22  costs, shall be approved by the legislative advisory commission 
128.23  and filed with the commissioner of administration.  
128.24     (13) In accordance with federal requirements, establish 
128.25  procedures to be followed by local welfare boards in creating 
128.26  citizen advisory committees, including procedures for selection 
128.27  of committee members. 
128.28     (14) Allocate federal fiscal disallowances or sanctions 
128.29  which are based on quality control error rates for the aid to 
128.30  families with dependent children, medical assistance, or food 
128.31  stamp program in the following manner:  
128.32     (a) One-half of the total amount of the disallowance shall 
128.33  be borne by the county boards responsible for administering the 
128.34  programs.  For the medical assistance and AFDC programs, 
128.35  disallowances shall be shared by each county board in the same 
128.36  proportion as that county's expenditures for the sanctioned 
129.1   program are to the total of all counties' expenditures for the 
129.2   AFDC and medical assistance programs.  For the food stamp 
129.3   program, sanctions shall be shared by each county board, with 50 
129.4   percent of the sanction being distributed to each county in the 
129.5   same proportion as that county's administrative costs for food 
129.6   stamps are to the total of all food stamp administrative costs 
129.7   for all counties, and 50 percent of the sanctions being 
129.8   distributed to each county in the same proportion as that 
129.9   county's value of food stamp benefits issued are to the total of 
129.10  all benefits issued for all counties.  Each county shall pay its 
129.11  share of the disallowance to the state of Minnesota.  When a 
129.12  county fails to pay the amount due hereunder, the commissioner 
129.13  may deduct the amount from reimbursement otherwise due the 
129.14  county, or the attorney general, upon the request of the 
129.15  commissioner, may institute civil action to recover the amount 
129.16  due. 
129.17     (b) Notwithstanding the provisions of paragraph (a), if the 
129.18  disallowance results from knowing noncompliance by one or more 
129.19  counties with a specific program instruction, and that knowing 
129.20  noncompliance is a matter of official county board record, the 
129.21  commissioner may require payment or recover from the county or 
129.22  counties, in the manner prescribed in paragraph (a), an amount 
129.23  equal to the portion of the total disallowance which resulted 
129.24  from the noncompliance, and may distribute the balance of the 
129.25  disallowance according to paragraph (a).  
129.26     (15) Develop and implement special projects that maximize 
129.27  reimbursements and result in the recovery of money to the 
129.28  state.  For the purpose of recovering state money, the 
129.29  commissioner may enter into contracts with third parties.  Any 
129.30  recoveries that result from projects or contracts entered into 
129.31  under this paragraph shall be deposited in the state treasury 
129.32  and credited to a special account until the balance in the 
129.33  account reaches $1,000,000.  When the balance in the account 
129.34  exceeds $1,000,000, the excess shall be transferred and credited 
129.35  to the general fund.  All money in the account is appropriated 
129.36  to the commissioner for the purposes of this paragraph. 
130.1      (16) Have the authority to make direct payments to 
130.2   facilities providing shelter to women and their children 
130.3   pursuant to section 256D.05, subdivision 3.  Upon the written 
130.4   request of a shelter facility that has been denied payments 
130.5   under section 256D.05, subdivision 3, the commissioner shall 
130.6   review all relevant evidence and make a determination within 30 
130.7   days of the request for review regarding issuance of direct 
130.8   payments to the shelter facility.  Failure to act within 30 days 
130.9   shall be considered a determination not to issue direct payments.
130.10     (17) Have the authority to establish and enforce the 
130.11  following county reporting requirements:  
130.12     (a) The commissioner shall establish fiscal and statistical 
130.13  reporting requirements necessary to account for the expenditure 
130.14  of funds allocated to counties for human services programs.  
130.15  When establishing financial and statistical reporting 
130.16  requirements, the commissioner shall evaluate all reports, in 
130.17  consultation with the counties, to determine if the reports can 
130.18  be simplified or the number of reports can be reduced. 
130.19     (b) The county board shall submit monthly or quarterly 
130.20  reports to the department as required by the commissioner.  
130.21  Monthly reports are due no later than 15 working days after the 
130.22  end of the month.  Quarterly reports are due no later than 30 
130.23  calendar days after the end of the quarter, unless the 
130.24  commissioner determines that the deadline must be shortened to 
130.25  20 calendar days to avoid jeopardizing compliance with federal 
130.26  deadlines or risking a loss of federal funding.  Only reports 
130.27  that are complete, legible, and in the required format shall be 
130.28  accepted by the commissioner.  
130.29     (c) If the required reports are not received by the 
130.30  deadlines established in clause (b), the commissioner may delay 
130.31  payments and withhold funds from the county board until the next 
130.32  reporting period.  When the report is needed to account for the 
130.33  use of federal funds and the late report results in a reduction 
130.34  in federal funding, the commissioner shall withhold from the 
130.35  county boards with late reports an amount equal to the reduction 
130.36  in federal funding until full federal funding is received.  
131.1      (d) A county board that submits reports that are late, 
131.2   illegible, incomplete, or not in the required format for two out 
131.3   of three consecutive reporting periods is considered 
131.4   noncompliant.  When a county board is found to be noncompliant, 
131.5   the commissioner shall notify the county board of the reason the 
131.6   county board is considered noncompliant and request that the 
131.7   county board develop a corrective action plan stating how the 
131.8   county board plans to correct the problem.  The corrective 
131.9   action plan must be submitted to the commissioner within 45 days 
131.10  after the date the county board received notice of noncompliance.
131.11     (e) The final deadline for fiscal reports or amendments to 
131.12  fiscal reports is one year after the date the report was 
131.13  originally due.  If the commissioner does not receive a report 
131.14  by the final deadline, the county board forfeits the funding 
131.15  associated with the report for that reporting period and the 
131.16  county board must repay any funds associated with the report 
131.17  received for that reporting period. 
131.18     (f) The commissioner may not delay payments, withhold 
131.19  funds, or require repayment under paragraph (c) or (e) if the 
131.20  county demonstrates that the commissioner failed to provide 
131.21  appropriate forms, guidelines, and technical assistance to 
131.22  enable the county to comply with the requirements.  If the 
131.23  county board disagrees with an action taken by the commissioner 
131.24  under paragraph (c) or (e), the county board may appeal the 
131.25  action according to sections 14.57 to 14.69. 
131.26     (g) Counties subject to withholding of funds under 
131.27  paragraph (c) or forfeiture or repayment of funds under 
131.28  paragraph (e) shall not reduce or withhold benefits or services 
131.29  to clients to cover costs incurred due to actions taken by the 
131.30  commissioner under paragraph (c) or (e). 
131.31     (18) Allocate federal fiscal disallowances or sanctions for 
131.32  audit exceptions when federal fiscal disallowances or sanctions 
131.33  are based on a statewide random sample for the foster care 
131.34  program under title IV-E of the Social Security Act, United 
131.35  States Code, title 42, in direct proportion to each county's 
131.36  title IV-E foster care maintenance claim for that period. 
132.1      Sec. 5.  Minnesota Statutes 1996, section 256.01, is 
132.2   amended by adding a subdivision to read: 
132.3      Subd. 14.  [CHILD WELFARE REFORM PILOTS.] The commissioner 
132.4   of human services shall encourage local reforms in the delivery 
132.5   of child welfare services and is authorized to approve local 
132.6   pilot programs which focus on reforming the child protection and 
132.7   child welfare systems in Minnesota.  Authority to approve pilots 
132.8   includes authority to waive existing state rule and statutory 
132.9   requirements as needed to accomplish reform efforts.  Pilot 
132.10  programs must be required to address responsibility for safety 
132.11  and protection of children, be time limited, and include 
132.12  evaluation of the pilot program. 
132.13     Sec. 6.  Minnesota Statutes 1996, section 256.045, 
132.14  subdivision 3, is amended to read: 
132.15     Subd. 3.  [STATE AGENCY HEARINGS.] (a) State agency 
132.16  hearings are available for the following:  (1) any person 
132.17  applying for, receiving or having received public assistance or 
132.18  a program of social services granted by the state agency or a 
132.19  county agency under sections 252.32, 256.031 to 256.036, and 
132.20  256.72 to 256.879, chapters 256B, 256D, 256E, 261, or the 
132.21  federal Food Stamp Act whose application for assistance is 
132.22  denied, not acted upon with reasonable promptness, or whose 
132.23  assistance is suspended, reduced, terminated, or claimed to have 
132.24  been incorrectly paid; (2) any patient or relative aggrieved by 
132.25  an order of the commissioner under section 252.27; (3) a party 
132.26  aggrieved by a ruling of a prepaid health plan; (4) any 
132.27  individual or facility determined by a lead agency to have 
132.28  maltreated a vulnerable adult under section 626.557 after they 
132.29  have exercised their right to administrative reconsideration 
132.30  under section 626.557; (5) any person whose claim for foster 
132.31  care payment pursuant to a placement of the child resulting from 
132.32  a child protection assessment under section 626.556 is denied or 
132.33  not acted upon with reasonable promptness, regardless of funding 
132.34  source; (6) any person to whom a right of appeal pursuant to 
132.35  this section is given by other provision of law; or (7) an 
132.36  applicant aggrieved by an adverse decision to an application for 
133.1   a hardship waiver under section 256B.15; or (8) an individual or 
133.2   facility determined to have maltreated a minor under section 
133.3   626.556.  The failure to exercise the right to an administrative 
133.4   reconsideration shall not be a bar to a hearing under this 
133.5   section if federal law provides an individual the right to a 
133.6   hearing to dispute a finding of maltreatment.  Individuals and 
133.7   organizations specified in this section may contest the 
133.8   specified action, decision, or final disposition before the 
133.9   state agency by submitting a written request for a hearing to 
133.10  the state agency within 30 days after receiving written notice 
133.11  of the action, decision, or final disposition, or within 90 days 
133.12  of such written notice if the applicant, recipient, patient, or 
133.13  relative shows good cause why the request was not submitted 
133.14  within the 30-day time limit. 
133.15     The hearing for an individual or facility under clause (4) 
133.16  and (8) is the only administrative appeal to the final lead 
133.17  agency disposition determination specifically, including a 
133.18  challenge to the accuracy and completeness of data under section 
133.19  13.04.  Hearings requested under clause (4) apply only to 
133.20  incidents of maltreatment that occur on or after October 1, 
133.21  1995.  Hearings requested by nursing assistants in nursing homes 
133.22  alleged to have maltreated a resident prior to October 1, 1995, 
133.23  shall be held as a contested case proceeding under the 
133.24  provisions of chapter 14.  Hearings requested under clause (8) 
133.25  apply only to incidents of maltreatment that occur on or after 
133.26  July 1, 1997.  A hearing for an individual or facility under 
133.27  clause (8) is only available when there is no juvenile court or 
133.28  adult criminal action pending.  If such action is filed in 
133.29  either court while an administrative review is pending, the 
133.30  administrative review should be suspended until the judicial 
133.31  actions are completed.  If the juvenile court action or criminal 
133.32  charge is dismissed or the criminal action overturned, the 
133.33  matter may be considered in an administrative hearing. 
133.34     For purposes of this section, bargaining unit grievance 
133.35  procedures are not an administrative appeal. 
133.36     The scope of hearings involving claims to foster care 
134.1   payments under clause (5) shall be limited to the issue of 
134.2   whether the county is legally responsible for a child's 
134.3   placement under court order or voluntary placement agreement 
134.4   and, if so, the correct amount of foster care payment to be made 
134.5   on the child's behalf and shall not include review of the 
134.6   propriety of the county's child protection determination or 
134.7   child placement decision. 
134.8      (b) Except for a prepaid health plan, a vendor of medical 
134.9   care as defined in section 256B.02, subdivision 7, or a vendor 
134.10  under contract with a county agency to provide social services 
134.11  under section 256E.08, subdivision 4, is not a party and may not 
134.12  request a hearing under this section, except if assisting a 
134.13  recipient as provided in subdivision 4. 
134.14     (c) An applicant or recipient is not entitled to receive 
134.15  social services beyond the services included in the amended 
134.16  community social services plan developed under section 256E.081, 
134.17  subdivision 3, if the county agency has met the requirements in 
134.18  section 256E.081. 
134.19     Sec. 7.  Minnesota Statutes 1996, section 256.045, 
134.20  subdivision 3b, is amended to read: 
134.21     Subd. 3b.  [STANDARD OF EVIDENCE FOR MALTREATMENT 
134.22  HEARINGS.] The state human services referee shall determine that 
134.23  maltreatment has occurred if a preponderance of evidence exists 
134.24  to support the final disposition under section sections 626.556 
134.25  and 626.557. 
134.26     The state human services referee shall recommend an order 
134.27  to the commissioner of health or human services, as applicable, 
134.28  who shall issue a final order.  The commissioner shall affirm, 
134.29  reverse, or modify the final disposition.  Any order of the 
134.30  commissioner issued in accordance with this subdivision is 
134.31  conclusive upon the parties unless appeal is taken in the manner 
134.32  provided in subdivision 7.  In any licensing appeal under 
134.33  chapter 245A and sections 144.50 to 144.58 and 144A.02 to 
134.34  144A.46, the commissioner's findings determination as to whether 
134.35  maltreatment occurred is conclusive. 
134.36     Sec. 8.  Minnesota Statutes 1996, section 256.045, 
135.1   subdivision 4, is amended to read: 
135.2      Subd. 4.  [CONDUCT OF HEARINGS.] (a) All hearings held 
135.3   pursuant to subdivision 3, 3a, 3b, or 4a shall be conducted 
135.4   according to the provisions of the federal Social Security Act 
135.5   and the regulations implemented in accordance with that act to 
135.6   enable this state to qualify for federal grants-in-aid, and 
135.7   according to the rules and written policies of the commissioner 
135.8   of human services.  County agencies shall install equipment 
135.9   necessary to conduct telephone hearings.  A state human services 
135.10  referee may schedule a telephone conference hearing when the 
135.11  distance or time required to travel to the county agency offices 
135.12  will cause a delay in the issuance of an order, or to promote 
135.13  efficiency, or at the mutual request of the parties.  Hearings 
135.14  may be conducted by telephone conferences unless the applicant, 
135.15  recipient, former recipient, person, or facility contesting 
135.16  maltreatment objects.  The hearing shall not be held earlier 
135.17  than five days after filing of the required notice with the 
135.18  county or state agency.  The state human services referee shall 
135.19  notify all interested persons of the time, date, and location of 
135.20  the hearing at least five days before the date of the hearing.  
135.21  Interested persons may be represented by legal counsel or other 
135.22  representative of their choice, including a provider of therapy 
135.23  services, at the hearing and may appear personally, testify and 
135.24  offer evidence, and examine and cross-examine witnesses.  The 
135.25  applicant, recipient, former recipient, person, or facility 
135.26  contesting maltreatment shall have the opportunity to examine 
135.27  the contents of the case file and all documents and records to 
135.28  be used by the county or state agency at the hearing at a 
135.29  reasonable time before the date of the hearing and during the 
135.30  hearing.  In cases alleging discharge for maltreatment, Either 
135.31  party may subpoena the private data relating to the 
135.32  investigation memorandum prepared by the lead agency under 
135.33  section 626.556 or 626.557, provided the name identity of the 
135.34  reporter may not be disclosed. 
135.35     (b) The private data must be subject to a protective order 
135.36  which prohibits its disclosure for any other purpose outside the 
136.1   hearing provided for in this section without prior order of the 
136.2   district court.  Disclosure without court order is punishable by 
136.3   a sentence of not more than 90 days imprisonment or a fine of 
136.4   not more than $700, or both.  These restrictions on the use of 
136.5   private data do not prohibit access to the data under section 
136.6   13.03, subdivision 6.  Except for appeals under subdivision 3, 
136.7   paragraph (a), clauses (4), (5), and (8), upon request, the 
136.8   county agency shall provide reimbursement for transportation, 
136.9   child care, photocopying, medical assessment, witness fee, and 
136.10  other necessary and reasonable costs incurred by the applicant, 
136.11  recipient, or former recipient in connection with the appeal, 
136.12  except in appeals brought under subdivision 3b.  All evidence, 
136.13  except that privileged by law, commonly accepted by reasonable 
136.14  people in the conduct of their affairs as having probative value 
136.15  with respect to the issues shall be submitted at the hearing and 
136.16  such hearing shall not be "a contested case" within the meaning 
136.17  of section 14.02, subdivision 3.  The agency must present its 
136.18  evidence prior to or at the hearing, and may not submit evidence 
136.19  after the hearing except by agreement of the parties at the 
136.20  hearing, provided the recipient petitioner has the opportunity 
136.21  to respond. 
136.22     Sec. 9.  Minnesota Statutes 1996, section 256.045, 
136.23  subdivision 5, is amended to read: 
136.24     Subd. 5.  [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] 
136.25  This subdivision does not apply to appeals under subdivision 
136.26  3b.  A state human services referee shall conduct a hearing on 
136.27  the appeal and shall recommend an order to the commissioner of 
136.28  human services.  The recommended order must be based on all 
136.29  relevant evidence and must not be limited to a review of the 
136.30  propriety of the state or county agency's action.  A referee may 
136.31  take official notice of adjudicative facts.  The commissioner of 
136.32  human services may accept the recommended order of a state human 
136.33  services referee and issue the order to the county agency and 
136.34  the applicant, recipient, former recipient, or prepaid health 
136.35  plan.  The commissioner on refusing to accept the recommended 
136.36  order of the state human services referee, shall notify the 
137.1   county petitioner, the agency and the applicant, recipient, 
137.2   former recipient, or prepaid health plan of that fact and shall 
137.3   state reasons therefor and shall allow each party ten days' time 
137.4   to submit additional written argument on the matter.  After the 
137.5   expiration of the ten-day period, the commissioner shall issue 
137.6   an order on the matter to the county petitioner, the agency and 
137.7   the applicant, recipient, former recipient, or prepaid health 
137.8   plan. 
137.9      A party aggrieved by an order of the commissioner may 
137.10  appeal under subdivision 7, or request reconsideration by the 
137.11  commissioner within 30 days after the date the commissioner 
137.12  issues the order.  The commissioner may reconsider an order upon 
137.13  request of any party or on the commissioner's own motion.  A 
137.14  request for reconsideration does not stay implementation of the 
137.15  commissioner's order.  Upon reconsideration, the commissioner 
137.16  may issue an amended order or an order affirming the original 
137.17  order. 
137.18     Any order of the commissioner issued under this subdivision 
137.19  shall be conclusive upon the parties unless appeal is taken in 
137.20  the manner provided by subdivision 7.  Any order of the 
137.21  commissioner is binding on the parties and must be implemented 
137.22  by the state agency or a county agency until the order is 
137.23  reversed by the district court, or unless the commissioner or a 
137.24  district court orders monthly assistance or aid or services paid 
137.25  or provided under subdivision 10. 
137.26     Except for a prepaid health plan, a vendor of medical care 
137.27  as defined in section 256B.02, subdivision 7, or a vendor under 
137.28  contract with a county agency to provide social services under 
137.29  section 256E.08, subdivision 4, is not a party and may not 
137.30  request a hearing or seek judicial review of an order issued 
137.31  under this section, unless assisting a recipient as provided in 
137.32  subdivision 4. 
137.33     Sec. 10.  Minnesota Statutes 1996, section 256.045, 
137.34  subdivision 8, is amended to read: 
137.35     Subd. 8.  [HEARING.] Any party may obtain a hearing at a 
137.36  special term of the district court by serving a written notice 
138.1   of the time and place of the hearing at least ten days prior to 
138.2   the date of the hearing.  Except for appeals under subdivision 
138.3   3b, The court may consider the matter in or out of chambers, and 
138.4   shall take no new or additional evidence unless it determines 
138.5   that such evidence is necessary for a more equitable disposition 
138.6   of the appeal. 
138.7      Sec. 11.  Minnesota Statutes 1996, section 256.82, is 
138.8   amended by adding a subdivision to read: 
138.9      Subd. 5.  [DIFFICULTY OF CARE ASSESSMENT PILOT 
138.10  PROJECT.] Notwithstanding any law to the contrary, the 
138.11  commissioner of human services shall conduct a two-year 
138.12  statewide pilot project beginning July 1, 1997, to conduct a 
138.13  difficulty of care assessment process which both assesses an 
138.14  individual child's current functioning and identifies needs in a 
138.15  variety of life situations.  The pilot project must take into 
138.16  consideration existing difficulty of care payments so that, to 
138.17  the extent possible, no child for whom a difficulty of care rate 
138.18  is currently established will be adversely affected.  The pilot 
138.19  project must include an evaluation and an interim report to the 
138.20  legislature by January 15, 1999. 
138.21     Sec. 12.  Minnesota Statutes 1996, section 256E.115, is 
138.22  amended to read: 
138.23     256E.115 [SAFE HOUSES AND, TRANSITIONAL HOUSING, AND 
138.24  ALTERNATIVE TRANSITIONAL SERVICES FOR HOMELESS YOUTH.] 
138.25     Subdivision 1.  [DEFINITIONS; COMMISSIONER DUTIES.] (a) 
138.26  [DEFINITIONS.] The following definitions apply to this section: 
138.27     (1) "Targeted youth" means children who, unless otherwise 
138.28  specified, are ages 16 to 21 and who are in out-of-home 
138.29  placement, leaving out-of-home placement, at risk of becoming 
138.30  homeless, or homeless. 
138.31     (2) "Safe house" means a facility providing emergency 
138.32  housing for homeless targeted youth with the goal of reuniting 
138.33  the family, if appropriate, whenever possible. 
138.34     (3) "Transitional housing" means congregate or cooperative 
138.35  housing for targeted youth who are transitioning to independent 
138.36  living. 
139.1      (4) "Alternative transitional services" means services 
139.2   provided to assist targeted youth who are 17 years old and not 
139.3   living in a safe house or transitional housing to make the 
139.4   transition to independent living. 
139.5      (b) [COMMISSIONER DUTIES.] The commissioner shall issue a 
139.6   request for proposals from organizations that are knowledgeable 
139.7   about the needs of homeless targeted youth for the purpose 
139.8   of providing establishing a system of safe houses and, 
139.9   transitional housing, and alternative transitional services for 
139.10  homeless such youth.  The commissioner shall appoint a review 
139.11  committee of up to eight members to evaluate the proposals.  The 
139.12  review panel must include representation from communities of 
139.13  color, youth, and other community providers and agency 
139.14  representatives who understand the needs and problems 
139.15  of homeless targeted youth.  The commissioner shall also assist 
139.16  in coordinating funding from federal and state grant programs 
139.17  and funding available from a variety of sources for efforts to 
139.18  promote a continuum of services for targeted youth through a 
139.19  consolidated grant application.  The commissioner shall analyze 
139.20  the needs of homeless targeted youth and gaps in services 
139.21  throughout the state and determine how to best serve those needs 
139.22  within the available funding. 
139.23     Subd. 2.  [SAFE HOUSES AND TRANSITIONAL HOUSING PROGRAM 
139.24  SERVICE REQUIREMENTS; PARTICIPATION REQUIREMENTS FOR 
139.25  TRANSITIONAL HOUSING; LICENSURE OF ALTERNATIVE TRANSITIONAL 
139.26  SERVICES.] A safe house provides emergency housing for homeless 
139.27  youth ranging in age from 13 to 22 with the goal of reuniting 
139.28  the family, if appropriate, whenever possible.  Transitional 
139.29  housing provides housing for homeless youth ages 16 to 22 who 
139.30  are transitioning into independent living. (a) In developing 
139.31  both types of housing the services described in subdivision 1, 
139.32  the commissioner and the review committee shall try to create a 
139.33  family atmosphere in a neighborhood or community and, if 
139.34  possible, provide separate but cooperative homes for males and 
139.35  females.  It may be necessary, due to licensing restrictions, to 
139.36  provide separate housing for different age groups.  The 
140.1   following services, or adequate access to referrals for the 
140.2   following services, must be made available to the homeless 
140.3   targeted youth participating in the programs: 
140.4      (1) counseling services for the youth, and their families, 
140.5   if appropriate, on site, to help with problems that resulted in 
140.6   contributed to the homelessness or could impede making the 
140.7   transition to independent living; 
140.8      (2) job services to help youth find employment in addition 
140.9   to creating jobs on site, including food service, maintenance, 
140.10  child care, and tutoring; 
140.11     (3) health services that are confidential and provide 
140.12  preventive care services, crisis referrals, and other necessary 
140.13  health care services; 
140.14     (4) living skills training to help youth learn how to care 
140.15  for themselves; and 
140.16     (5) education services that help youth enroll in academic 
140.17  programs, if they are currently not in a program.  
140.18     (b) Enrollment in an academic program, employment, or 
140.19  participation in employment training is required for residency 
140.20  in transitional housing. 
140.21     (c) Notwithstanding section 252.275, alternative 
140.22  transitional services shall be licensed as semi-independent 
140.23  living services under Minnesota Rules, parts 9525.0050 to 
140.24  9525.0660, or the successors to these rule parts. 
140.25     Sec. 13.  Minnesota Statutes 1996, section 393.07, 
140.26  subdivision 2, is amended to read: 
140.27     Subd. 2.  [ADMINISTRATION OF PUBLIC WELFARE.] The local 
140.28  social services agency, subject to the supervision of the 
140.29  commissioner of human services, shall administer all forms of 
140.30  public welfare, both for children and adults, responsibility for 
140.31  which now or hereafter may be imposed on the commissioner of 
140.32  human services by law, including general assistance, aid to 
140.33  dependent children, county supplementation, if any, or state aid 
140.34  to recipients of supplemental security income for aged, blind 
140.35  and disabled, child welfare services, mental health services, 
140.36  and other public assistance or public welfare services, provided 
141.1   that the local social services agency shall not employ public 
141.2   health nursing or home health service personnel other than 
141.3   homemaker-home help aides, but shall contract for or purchase 
141.4   the necessary services from existing community agencies.  The 
141.5   duties of the local social services agency shall be performed in 
141.6   accordance with the standards and rules which may be promulgated 
141.7   by the commissioner of human services to achieve the purposes 
141.8   intended by law and in order to comply with the requirements of 
141.9   the federal Social Security Act in respect to public assistance 
141.10  and child welfare services, so that the state may qualify for 
141.11  grants-in-aid available under that act.  To avoid administrative 
141.12  penalties under section 256.017, the local social services 
141.13  agency must comply with (1) policies established by state law 
141.14  and (2) instructions from the commissioner relating (i) to 
141.15  public assistance program policies consistent with federal law 
141.16  and regulation and state law and rule and (ii) to local agency 
141.17  program operations.  The commissioner may enforce local social 
141.18  services agency compliance with the instructions, and may delay, 
141.19  withhold, or deny payment of all or part of the state and 
141.20  federal share of benefits and federal administrative 
141.21  reimbursement, according to the provisions under section 
141.22  256.017.  The local social services agency shall supervise wards 
141.23  of the commissioner and, when so designated, act as agent of the 
141.24  commissioner of human services in the placement of the 
141.25  commissioner's wards in adoptive homes or in other foster care 
141.26  facilities.  The local social services agency shall cooperate as 
141.27  needed when the commissioner contracts with a licensed child 
141.28  placement agency for adoption services for a child under the 
141.29  commissioner's guardianship.  The local social services agency 
141.30  may contract with a bank or other financial institution to 
141.31  provide services associated with the processing of public 
141.32  assistance checks and pay a service fee for these services, 
141.33  provided the fee charged does not exceed the fee charged to 
141.34  other customers of the institution for similar services. 
141.35     Sec. 14.  Minnesota Statutes 1996, section 466.01, 
141.36  subdivision 1, is amended to read: 
142.1      Subdivision 1.  [MUNICIPALITY.] For the purposes of 
142.2   sections 466.01 to 466.15, "municipality" means any city, 
142.3   whether organized under home rule charter or otherwise, any 
142.4   county, town, public authority, public corporation, nonprofit 
142.5   firefighting corporation that has associated with it a relief 
142.6   association as defined in section 424A.001, subdivision 4, 
142.7   special district, school district, however organized, county 
142.8   agricultural society organized pursuant to chapter 38, joint 
142.9   powers board or organization created under section 471.59 or 
142.10  other statute, public library, regional public library system, 
142.11  multicounty multitype library system, family services 
142.12  collaborative established under section 121.8355, children's 
142.13  mental health collaboratives established under sections 245.491 
142.14  to 245.496, or a collaborative established by the merger of a 
142.15  children's mental health collaborative and a family services 
142.16  collaborative, other political subdivision, or community action 
142.17  agency. 
142.18     Sec. 15.  Minnesota Statutes 1996, section 471.59, 
142.19  subdivision 11, is amended to read: 
142.20     Subd. 11.  [JOINT POWERS BOARD.] (a) Two or more 
142.21  governmental units, through action of their governing bodies, by 
142.22  adoption of a joint powers agreement that complies with the 
142.23  provisions of subdivisions 1 to 5, may establish a joint board 
142.24  to issue bonds or obligations under any law by which any of the 
142.25  governmental units establishing the joint board may 
142.26  independently issue bonds or obligations and may use the 
142.27  proceeds of the bonds or obligations to carry out the purposes 
142.28  of the law under which the bonds or obligations are issued.  A 
142.29  joint board established under this section may issue obligations 
142.30  and other forms of indebtedness only in accordance with express 
142.31  authority granted by the action of the governing bodies of the 
142.32  governmental units that established the joint board.  Except as 
142.33  provided in paragraph (b), the joint board established under 
142.34  this subdivision must be composed solely of members of the 
142.35  governing bodies of the governmental unit that established the 
142.36  joint board.  A joint board established under this subdivision 
143.1   may not pledge the full faith and credit or taxing power of any 
143.2   of the governmental units that established the joint board.  The 
143.3   obligations or other forms of indebtedness must be obligations 
143.4   of the joint board issued on behalf of the governmental units 
143.5   creating the joint board.  The obligations or other forms of 
143.6   indebtedness must be issued in the same manner and subject to 
143.7   the same conditions and limitations that would apply if the 
143.8   obligations were issued or indebtedness incurred by one of the 
143.9   governmental units that established the joint board, provided 
143.10  that any reference to a governmental unit in the statute, law, 
143.11  or charter provision authorizing the issuance of the bonds or 
143.12  the incurring of the indebtedness is considered a reference to 
143.13  the joint board. 
143.14     (b) Notwithstanding paragraph (a), one school district, one 
143.15  county, and one public health entity, through action of their 
143.16  governing bodies, may establish a joint board to establish and 
143.17  govern a family services collaborative under section 121.8355.  
143.18  The school district, county, and public health entity may 
143.19  include other governmental entities at their discretion.  The 
143.20  membership of a board established under this paragraph, in 
143.21  addition to members of the governing bodies of the participating 
143.22  governmental units, must include the representation required by 
143.23  section 121.8355, subdivision 1, paragraph (a), selected in 
143.24  accordance with section 121.8355, subdivision 1, paragraph (c). 
143.25     (c) Notwithstanding paragraph (a), one county, one school 
143.26  district, and one mental health entity, through action of their 
143.27  governing bodies, may establish a joint board to establish and 
143.28  govern a children's mental health collaborative under sections 
143.29  245.491 to 245.496, or a collaborative established by the merger 
143.30  of a children's mental health collaborative and a family 
143.31  services collaborative under section 121.8355.  The county, 
143.32  school district, and mental health entity may include other 
143.33  governmental entities at their discretion.  The membership of a 
143.34  board established under this paragraph, in addition to members 
143.35  of the governing bodies of the participating governmental units, 
143.36  must include the representation provided by section 245.493, 
144.1   subdivision 1. 
144.2      Sec. 16.  Minnesota Statutes 1996, section 517.08, 
144.3   subdivision 1c, is amended to read: 
144.4      Subd. 1c.  [DISPOSITION OF LICENSE FEE.] Of the marriage 
144.5   license fee collected pursuant to subdivision 1b, the court 
144.6   administrator shall pay $55 to the state treasurer to be 
144.7   deposited as follows: 
144.8      (1) $50 in the general fund; 
144.9      (2) $3 in the special revenue fund to be appropriated to 
144.10  the commissioner of human services children, families, and 
144.11  learning for supervised visitation facilities under section 
144.12  256F.09; and 
144.13     (3) $2 in the special revenue fund to be appropriated to 
144.14  the commissioner of health for developing and implementing the 
144.15  MN ENABL program under section 145.9255. 
144.16     Sec. 17.  Minnesota Statutes 1996, section 626.558, 
144.17  subdivision 1, is amended to read: 
144.18     Subdivision 1.  [ESTABLISHMENT OF THE TEAM.] A county shall 
144.19  establish a multidisciplinary child protection team that may 
144.20  include, but not be limited to, the director of the local 
144.21  welfare agency or designees, the county attorney or designees, 
144.22  the county sheriff or designees, representatives of health and 
144.23  education, representatives of mental health or other appropriate 
144.24  human service or community-based agencies, and parent groups.  
144.25  As used in this section, a "community-based agency" may include, 
144.26  but is not limited to, schools, social service agencies, family 
144.27  service and mental health collaboratives, early childhood and 
144.28  family education programs, Head Start, or other agencies serving 
144.29  children and families. 
144.30     Sec. 18.  Minnesota Statutes 1996, section 626.558, 
144.31  subdivision 2, is amended to read: 
144.32     Subd. 2.  [DUTIES OF TEAM.] A multidisciplinary child 
144.33  protection team may provide public and professional education, 
144.34  develop resources for prevention, intervention, and treatment, 
144.35  and provide case consultation to the local welfare agency to 
144.36  better enable the agency to carry out its child protection 
145.1   functions under section 626.556 and the community social 
145.2   services act. or other interested community-based agencies.  The 
145.3   community-based agencies may request case consultation from the 
145.4   multidisciplinary child protection team regarding a child or 
145.5   family for whom the community-based agency is providing 
145.6   services.  As used in this section, "case consultation" means a 
145.7   case review process in which recommendations are made concerning 
145.8   services to be provided to the identified children and family.  
145.9   Case consultation may be performed by a committee or 
145.10  subcommittee of members representing human services, including 
145.11  mental health and chemical dependency; law enforcement, 
145.12  including probation and parole; the county attorney; health 
145.13  care; education; community-based agencies and other necessary 
145.14  agencies; and persons directly involved in an individual case as 
145.15  designated by other members performing case consultation. 
145.16     Sec. 19.  Minnesota Statutes 1996, section 626.559, 
145.17  subdivision 5, is amended to read: 
145.18     Subd. 5.  [TRAINING REVENUE.] The commissioner of human 
145.19  services shall add the following funds to the funds appropriated 
145.20  under section 626.5591, subdivision 2, to develop and support 
145.21  training: 
145.22     (a) The commissioner of human services shall submit claims 
145.23  for federal reimbursement earned through the activities and 
145.24  services supported through department of human services child 
145.25  protection or child welfare training funds.  Federal revenue 
145.26  earned must be used to improve and expand training services by 
145.27  the department.  The department expenditures eligible for 
145.28  federal reimbursement under this section must not be made from 
145.29  federal funds or funds used to match other federal funds. 
145.30     (b) Each year, the commissioner of human services shall 
145.31  withhold from funds distributed to each county under Minnesota 
145.32  Rules, parts 9550.0300 to 9550.0370, an amount each year 
145.33  equivalent to 1.5 percent of each county's annual Title XX 
145.34  allocation under section 256E.07.  The commissioner must use 
145.35  these funds to ensure decentralization of training. 
145.36     (c) The federal revenue earned under this subdivision is 
146.1   available for these purposes until the funds are expended. 
146.2      Sec. 20.  [TRANSFER TO COMMISSIONER OF CHILDREN, FAMILIES, 
146.3   AND LEARNING.] 
146.4      Effective July 1, 1997, all duties and funding related to 
146.5   family visitation centers under Minnesota Statutes, section 
146.6   256F.09, are transferred to the commissioner of children, 
146.7   families, and learning.  In the next edition of Minnesota 
146.8   Statutes, the revisor of statutes shall renumber Minnesota 
146.9   Statutes, section 256F.09, in Minnesota Statutes, chapter 119A.  
146.10                             ARTICLE 4
146.11                 FAMILIES AND CHILDREN HEALTH CARE
146.12     Section 1.  Minnesota Statutes 1996, section 62D.04, 
146.13  subdivision 5, is amended to read: 
146.14     Subd. 5.  [PARTICIPATION; GOVERNMENT PROGRAMS.] Health 
146.15  maintenance organizations shall, as a condition of receiving and 
146.16  retaining a certificate of authority, participate in the medical 
146.17  assistance, general assistance medical care, and MinnesotaCare 
146.18  programs.  A health maintenance organization is required to 
146.19  submit proposals in good faith that meet the requirements of the 
146.20  request for proposal to serve individuals eligible for the above 
146.21  programs in a geographic region of the state if, at the time of 
146.22  publication of a request for proposal, the percentage of 
146.23  recipients in the public programs in the region who are enrolled 
146.24  in the health maintenance organization is less than the health 
146.25  maintenance organization's percentage of the total number of 
146.26  individuals enrolled in health maintenance organizations in the 
146.27  same region.  Geographic regions shall be defined by the 
146.28  commissioner of human services in the request for proposals. 
146.29     Sec. 2.  Minnesota Statutes 1996, section 254B.02, 
146.30  subdivision 1, is amended to read: 
146.31     Subdivision 1.  [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 
146.32  The chemical dependency funds appropriated for allocation shall 
146.33  be placed in a special revenue account.  For the fiscal year 
146.34  beginning July 1, 1987, funds shall be transferred to operate 
146.35  the vendor payment, invoice processing, and collections system 
146.36  for one year.  The commissioner shall annually transfer funds 
147.1   from the chemical dependency fund to pay for operation of the 
147.2   drug and alcohol abuse normative evaluation system and to pay 
147.3   for all costs incurred by adding two positions for licensing of 
147.4   chemical dependency treatment and rehabilitation programs 
147.5   located in hospitals for which funds are not otherwise 
147.6   appropriated.  For each year of the biennium ending June 30, 
147.7   1999, the commissioner shall allocate funds to the American 
147.8   Indian chemical dependency tribal account under section 254B.05, 
147.9   equal to the amount allocated in fiscal year 1997.  The 
147.10  commissioner shall annually divide the money available in the 
147.11  chemical dependency fund that is not held in reserve by counties 
147.12  from a previous allocation, or allocated to the American Indian 
147.13  chemical dependency tribal account.  Twelve Six percent of the 
147.14  remaining money must be reserved for the nonreservation American 
147.15  Indian chemical dependency allocation for treatment of American 
147.16  Indians by eligible vendors under section 254B.05, subdivision 
147.17  1.  The remainder of the money must be allocated among the 
147.18  counties according to the following formula, using state 
147.19  demographer data and other data sources determined by the 
147.20  commissioner: 
147.21     (a) For purposes of this formula, American Indians and 
147.22  children under age 14 are subtracted from the population of each 
147.23  county to determine the restricted population. 
147.24     (b) The amount of chemical dependency fund expenditures for 
147.25  entitled persons for services not covered by prepaid plans 
147.26  governed by section 256B.69 in the previous year is divided by 
147.27  the amount of chemical dependency fund expenditures for entitled 
147.28  persons for all services to determine the proportion of exempt 
147.29  service expenditures for each county. 
147.30     (c) The prepaid plan months of eligibility is multiplied by 
147.31  the proportion of exempt service expenditures to determine the 
147.32  adjusted prepaid plan months of eligibility for each county. 
147.33     (d) The adjusted prepaid plan months of eligibility is 
147.34  added to the number of restricted population fee for service 
147.35  months of eligibility for aid to families with dependent 
147.36  children, general assistance, and medical assistance and divided 
148.1   by the county restricted population to determine county per 
148.2   capita months of covered service eligibility. 
148.3      (e) The number of adjusted prepaid plan months of 
148.4   eligibility for the state is added to the number of fee for 
148.5   service months of eligibility for aid to families with dependent 
148.6   children, general assistance, and medical assistance for the 
148.7   state restricted population and divided by the state restricted 
148.8   population to determine state per capita months of covered 
148.9   service eligibility. 
148.10     (f) The county per capita months of covered service 
148.11  eligibility is divided by the state per capita months of covered 
148.12  service eligibility to determine the county welfare caseload 
148.13  factor. 
148.14     (g) The median married couple income for the most recent 
148.15  three-year period available for the state is divided by the 
148.16  median married couple income for the same period for each county 
148.17  to determine the income factor for each county. 
148.18     (h) The county restricted population is multiplied by the 
148.19  sum of the county welfare caseload factor and the county income 
148.20  factor to determine the adjusted population. 
148.21     (i) $15,000 shall be allocated to each county.  
148.22     (j) The remaining funds shall be allocated proportional to 
148.23  the county adjusted population. 
148.24     Sec. 3.  Minnesota Statutes 1996, section 254B.09, 
148.25  subdivision 4, is amended to read: 
148.26     Subd. 4.  [TRIBAL ALLOCATION.] Forty-two and one-half 
148.27  Eighty-five percent of the American Indian chemical dependency 
148.28  tribal account must be allocated to the federally recognized 
148.29  American Indian tribal governing bodies that have entered into 
148.30  an agreement under subdivision 2 as follows:  $10,000 must be 
148.31  allocated to each governing body and the remainder must be 
148.32  allocated in direct proportion to the population of the 
148.33  reservation according to the most recently available estimates 
148.34  from the federal Bureau of Indian Affairs.  When a tribal 
148.35  governing body has not entered into an agreement with the 
148.36  commissioner under subdivision 2, the county may use funds 
149.1   allocated to the reservation to pay for chemical dependency 
149.2   services for a current resident of the county and of the 
149.3   reservation. 
149.4      Sec. 4.  Minnesota Statutes 1996, section 254B.09, 
149.5   subdivision 5, is amended to read: 
149.6      Subd. 5.  [TRIBAL RESERVE ACCOUNT.] The commissioner shall 
149.7   reserve 7.5 15 percent of the American Indian chemical 
149.8   dependency tribal account.  The reserve must be allocated to 
149.9   those tribal units that have used all money allocated under 
149.10  subdivision 4 according to agreements made under subdivision 2 
149.11  and to counties submitting invoices for American Indians under 
149.12  subdivision 1 when all money allocated under subdivision 4 has 
149.13  been used.  An American Indian tribal governing body or a county 
149.14  submitting invoices under subdivision 1 may receive not more 
149.15  than 30 percent of the reserve account in a year.  The 
149.16  commissioner may refuse to make reserve payments for persons not 
149.17  eligible under section 254B.04, subdivision 1, if the tribal 
149.18  governing body responsible for treatment placement has exhausted 
149.19  its allocation.  Money must be allocated as invoices are 
149.20  received. 
149.21     Sec. 5.  Minnesota Statutes 1996, section 254B.09, 
149.22  subdivision 7, is amended to read: 
149.23     Subd. 7.  [NONRESERVATION INDIAN ACCOUNT.] Fifty percent of 
149.24  The nonreservation American Indian chemical dependency 
149.25  allocation must be held in reserve by the commissioner in an 
149.26  account for treatment of Indians not residing on lands of a 
149.27  reservation receiving money under subdivision 4.  This money 
149.28  must be used to pay for services certified by county invoice to 
149.29  have been provided to an American Indian eligible recipient.  
149.30  Money allocated under this subdivision may be used for payments 
149.31  on behalf of American Indian county residents only if, in 
149.32  addition to other placement standards, the county certifies that 
149.33  the placement was appropriate to the cultural orientation of the 
149.34  client.  Any funds for treatment of nonreservation Indians 
149.35  remaining at the end of a fiscal year shall be reallocated under 
149.36  section 254B.02. 
150.1      Sec. 6.  Minnesota Statutes 1996, section 256.045, 
150.2   subdivision 3, is amended to read: 
150.3      Subd. 3.  [STATE AGENCY HEARINGS.] (a) State agency 
150.4   hearings are available for the following:  (1) any person 
150.5   applying for, receiving or having received public assistance or 
150.6   a program of social services granted by the state agency or a 
150.7   county agency under sections 252.32, 256.031 to 256.036, and 
150.8   256.72 to 256.879, chapters 256B, 256D, 256E, 261, or the 
150.9   federal Food Stamp Act whose application for assistance is 
150.10  denied, not acted upon with reasonable promptness, or whose 
150.11  assistance is suspended, reduced, terminated, or claimed to have 
150.12  been incorrectly paid; (2) any patient or relative aggrieved by 
150.13  an order of the commissioner under section 252.27; (3) a party 
150.14  aggrieved by a ruling of a prepaid health plan; (4) any 
150.15  individual or facility determined by a lead agency to have 
150.16  maltreated a vulnerable adult under section 626.557 after they 
150.17  have exercised their right to administrative reconsideration 
150.18  under section 626.557; (5) any person whose claim for foster 
150.19  care payment pursuant to a placement of the child resulting from 
150.20  a child protection assessment under section 626.556 is denied or 
150.21  not acted upon with reasonable promptness, regardless of funding 
150.22  source; (6) any person to whom a right of appeal pursuant to 
150.23  this section is given by other provision of law; or (7) an 
150.24  applicant aggrieved by an adverse decision to an application for 
150.25  a hardship waiver under section 256B.15.  The failure to 
150.26  exercise the right to an administrative reconsideration shall 
150.27  not be a bar to a hearing under this section if federal law 
150.28  provides an individual the right to a hearing to dispute a 
150.29  finding of maltreatment.  Individuals and organizations 
150.30  specified in this section may contest the specified action, 
150.31  decision, or final disposition before the state agency by 
150.32  submitting a written request for a hearing to the state agency 
150.33  within 30 days after receiving written notice of the action, 
150.34  decision, or final disposition, or within 90 days of such 
150.35  written notice if the applicant, recipient, patient, or relative 
150.36  shows good cause why the request was not submitted within the 
151.1   30-day time limit. 
151.2      The hearing for an individual or facility under clause (4) 
151.3   is the only administrative appeal to the final lead agency 
151.4   disposition specifically, including a challenge to the accuracy 
151.5   and completeness of data under section 13.04.  Hearings 
151.6   requested under clause (4) apply only to incidents of 
151.7   maltreatment that occur on or after October 1, 1995.  Hearings 
151.8   requested by nursing assistants in nursing homes alleged to have 
151.9   maltreated a resident prior to October 1, 1995, shall be held as 
151.10  a contested case proceeding under the provisions of chapter 14. 
151.11     For purposes of this section, bargaining unit grievance 
151.12  procedures are not an administrative appeal. 
151.13     The scope of hearings involving claims to foster care 
151.14  payments under clause (5) shall be limited to the issue of 
151.15  whether the county is legally responsible for a child's 
151.16  placement under court order or voluntary placement agreement 
151.17  and, if so, the correct amount of foster care payment to be made 
151.18  on the child's behalf and shall not include review of the 
151.19  propriety of the county's child protection determination or 
151.20  child placement decision. 
151.21     (b) Except for a prepaid health plan, A vendor of medical 
151.22  care as defined in section 256B.02, subdivision 7, or a vendor 
151.23  under contract with a county agency to provide social services 
151.24  under section 256E.08, subdivision 4, is not a party and may not 
151.25  request a hearing under this section, except if assisting a 
151.26  recipient as provided in subdivision 4. 
151.27     (c) An applicant or recipient is not entitled to receive 
151.28  social services beyond the services included in the amended 
151.29  community social services plan developed under section 256E.081, 
151.30  subdivision 3, if the county agency has met the requirements in 
151.31  section 256E.081. 
151.32     Sec. 7.  Minnesota Statutes 1996, section 256.045, 
151.33  subdivision 5, is amended to read: 
151.34     Subd. 5.  [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] 
151.35  This subdivision does not apply to appeals under subdivision 
151.36  3b.  A state human services referee shall conduct a hearing on 
152.1   the appeal and shall recommend an order to the commissioner of 
152.2   human services.  The recommended order must be based on all 
152.3   relevant evidence and must not be limited to a review of the 
152.4   propriety of the state or county agency's action.  A referee may 
152.5   take official notice of adjudicative facts.  The commissioner of 
152.6   human services may accept the recommended order of a state human 
152.7   services referee and issue the order to the county agency and 
152.8   the applicant, recipient, former recipient, or prepaid health 
152.9   plan.  The commissioner on refusing to accept the recommended 
152.10  order of the state human services referee, shall notify the 
152.11  county agency and the applicant, recipient, former recipient, or 
152.12  prepaid health plan of that fact and shall state reasons 
152.13  therefor and shall allow each party ten days' time to submit 
152.14  additional written argument on the matter.  After the expiration 
152.15  of the ten-day period, the commissioner shall issue an order on 
152.16  the matter to the county agency and the applicant, recipient, 
152.17  former recipient, or prepaid health plan. 
152.18     A party aggrieved by an order of the commissioner may 
152.19  appeal under subdivision 7, or request reconsideration by the 
152.20  commissioner within 30 days after the date the commissioner 
152.21  issues the order.  The commissioner may reconsider an order upon 
152.22  request of any party or on the commissioner's own motion.  A 
152.23  request for reconsideration does not stay implementation of the 
152.24  commissioner's order.  Upon reconsideration, the commissioner 
152.25  may issue an amended order or an order affirming the original 
152.26  order. 
152.27     Any order of the commissioner issued under this subdivision 
152.28  shall be conclusive upon the parties unless appeal is taken in 
152.29  the manner provided by subdivision 7.  Any order of the 
152.30  commissioner is binding on the parties and must be implemented 
152.31  by the state agency or, a county agency, or a prepaid health 
152.32  plan according to subdivision 3a, until the order is reversed by 
152.33  the district court, or unless the commissioner or a district 
152.34  court orders monthly assistance or aid or services paid or 
152.35  provided under subdivision 10. 
152.36     Except for a prepaid health plan, A vendor of medical care 
153.1   as defined in section 256B.02, subdivision 7, or a vendor under 
153.2   contract with a county agency to provide social services under 
153.3   section 256E.08, subdivision 4, is not a party and may not 
153.4   request a hearing or seek judicial review of an order issued 
153.5   under this section, unless assisting a recipient as provided in 
153.6   subdivision 4.  A prepaid health plan is a party to an appeal 
153.7   under subdivision 3a, but cannot seek judicial review of an 
153.8   order issued under this section. 
153.9      Sec. 8.  Minnesota Statutes 1996, section 256.045, 
153.10  subdivision 7, is amended to read: 
153.11     Subd. 7.  [JUDICIAL REVIEW.] Except for a prepaid health 
153.12  plan, any party who is aggrieved by an order of the commissioner 
153.13  of human services, or the commissioner of health in appeals 
153.14  within the commissioner's jurisdiction under subdivision 3b, may 
153.15  appeal the order to the district court of the county responsible 
153.16  for furnishing assistance, or, in appeals under subdivision 3b, 
153.17  the county where the maltreatment occurred, by serving a written 
153.18  copy of a notice of appeal upon the commissioner and any adverse 
153.19  party of record within 30 days after the date the commissioner 
153.20  issued the order, the amended order, or order affirming the 
153.21  original order, and by filing the original notice and proof of 
153.22  service with the court administrator of the district court.  
153.23  Service may be made personally or by mail; service by mail is 
153.24  complete upon mailing; no filing fee shall be required by the 
153.25  court administrator in appeals taken pursuant to this 
153.26  subdivision, with the exception of appeals taken under 
153.27  subdivision 3b.  The commissioner may elect to become a party to 
153.28  the proceedings in the district court.  Except for appeals under 
153.29  subdivision 3b, any party may demand that the commissioner 
153.30  furnish all parties to the proceedings with a copy of the 
153.31  decision, and a transcript of any testimony, evidence, or other 
153.32  supporting papers from the hearing held before the human 
153.33  services referee, by serving a written demand upon the 
153.34  commissioner within 30 days after service of the notice of 
153.35  appeal.  Any party aggrieved by the failure of an adverse party 
153.36  to obey an order issued by the commissioner under subdivision 5 
154.1   may compel performance according to the order in the manner 
154.2   prescribed in sections 586.01 to 586.12. 
154.3      Sec. 9.  Minnesota Statutes 1996, section 256.9353, 
154.4   subdivision 3, is amended to read: 
154.5      Subd. 3.  [INPATIENT HOSPITAL SERVICES.] (a) Beginning July 
154.6   1, 1993, covered health services shall include inpatient 
154.7   hospital services, including inpatient hospital mental health 
154.8   services and inpatient hospital and residential chemical 
154.9   dependency treatment, subject to those limitations necessary to 
154.10  coordinate the provision of these services with eligibility 
154.11  under the medical assistance spenddown.  The inpatient hospital 
154.12  benefit for adult enrollees is subject to an annual benefit 
154.13  limit of $10,000 $15,000 of billed charges.  
154.14     (b) Enrollees determined by the commissioner to have a 
154.15  basis of eligibility for medical assistance shall apply for and 
154.16  cooperate with the requirements of medical assistance by the 
154.17  last day of the third month following admission to an inpatient 
154.18  hospital.  If an enrollee fails to apply for medical assistance 
154.19  within this time period, the enrollee and the enrollee's family 
154.20  shall be disenrolled from the plan and they may not reenroll 
154.21  until 12 calendar months have elapsed.  Enrollees and enrollees' 
154.22  families disenrolled for not applying for or not cooperating 
154.23  with medical assistance may not reenroll. 
154.24     (c) Admissions for inpatient hospital services paid for 
154.25  under section 256.9362, subdivision 3, must be certified as 
154.26  medically necessary in accordance with Minnesota Rules, parts 
154.27  9505.0500 to 9505.0540, except as provided in clauses (1) and 
154.28  (2): 
154.29     (1) all admissions must be certified, except those 
154.30  authorized under rules established under section 254A.03, 
154.31  subdivision 3, or approved under Medicare; and 
154.32     (2) payment under section 256.9362, subdivision 3, shall be 
154.33  reduced by five percent for admissions for which certification 
154.34  is requested more than 30 days after the day of admission.  The 
154.35  hospital may not seek payment from the enrollee for the amount 
154.36  of the payment reduction under this clause. 
155.1      (d) Any enrollee or family member of an enrollee who has 
155.2   previously been permanently disenrolled from MinnesotaCare for 
155.3   not applying for and cooperating with medical assistance shall 
155.4   be eligible to reenroll if 12 calendar months have elapsed since 
155.5   the date of disenrollment. 
155.6      Sec. 10.  Minnesota Statutes 1996, section 256.9353, 
155.7   subdivision 7, is amended to read: 
155.8      Subd. 7.  [COPAYMENTS AND COINSURANCE.] The MinnesotaCare 
155.9   benefit plan shall include the following copayments and 
155.10  coinsurance requirements:  
155.11     (1) ten percent of the charges submitted for inpatient 
155.12  hospital services for adult enrollees not eligible for medical 
155.13  assistance, subject to an annual inpatient out-of-pocket maximum 
155.14  of $1,000 per individual and $3,000 per family; 
155.15     (2) $3 per prescription for adult enrollees; and 
155.16     (3) $25 for eyeglasses for adult enrollees.  
155.17     Enrollees who are not eligible for medical assistance with 
155.18  or without a spenddown shall be financially responsible for the 
155.19  coinsurance amount and amounts which exceed the $10,000 $15,000 
155.20  benefit limit.  MinnesotaCare shall be financially responsible 
155.21  for the spenddown amount up to the $10,000 $15,000 benefit limit 
155.22  for enrollees who are eligible for medical assistance with a 
155.23  spenddown; enrollees who are eligible for medical assistance 
155.24  with a spenddown are financially responsible for amounts which 
155.25  exceed the $10,000 $15,000 benefit limit.  When a MinnesotaCare 
155.26  enrollee becomes a member of a prepaid health plan, or changes 
155.27  from one prepaid health plan to another during a calendar year, 
155.28  any charges submitted towards the $15,000 annual inpatient 
155.29  benefit limit, and any out-of-pocket expenses incurred by the 
155.30  enrollee for inpatient services, that were submitted or incurred 
155.31  prior to enrollment, or prior to the change in health plans, 
155.32  shall be disregarded. 
155.33     Sec. 11.  Minnesota Statutes 1996, section 256.9355, 
155.34  subdivision 1, is amended to read: 
155.35     Subdivision 1.  [APPLICATION AND INFORMATION AVAILABILITY.] 
155.36  Applications and other information must be made available to 
156.1   provider offices, local human services agencies, school 
156.2   districts, public and private elementary schools in which 25 
156.3   percent or more of the students receive free or reduced price 
156.4   lunches, community health offices, and Women, Infants and 
156.5   Children (WIC) program sites.  These sites may accept 
156.6   applications, collect the enrollment fee or initial premium fee, 
156.7   and forward the forms and fees to the commissioner.  Otherwise, 
156.8   applicants may apply directly to the commissioner.  Beginning 
156.9   January 1, 2000, MinnesotaCare enrollment sites will be expanded 
156.10  to include local human services agencies. 
156.11     Sec. 12.  Minnesota Statutes 1996, section 256.9355, 
156.12  subdivision 3, is amended to read: 
156.13     Subd. 3.  [EFFECTIVE DATE OF COVERAGE.] The effective date 
156.14  of coverage is the first day of the month following the month in 
156.15  which eligibility is approved and the first premium payment has 
156.16  been received.  The effective date of coverage for eligible 
156.17  newborns or eligible newly adoptive children added to a family 
156.18  receiving covered health services is the date of entry into the 
156.19  family.  The effective date of coverage for other new recipients 
156.20  added to the family receiving covered health services is the 
156.21  first day of the month following the month in which eligibility 
156.22  is approved and the first premium payment has been received.  
156.23  The premium must be received eight working days prior to the end 
156.24  of the month for coverage to begin the following month.  
156.25  Benefits are not available until the day following discharge if 
156.26  an enrollee is hospitalized on the first day of coverage.  
156.27  Notwithstanding any other law to the contrary, benefits under 
156.28  sections 256.9351 to 256.9361 are secondary to a plan of 
156.29  insurance or benefit program under which an eligible person may 
156.30  have coverage and the commissioner shall use cost avoidance 
156.31  techniques to ensure coordination of any other health coverage 
156.32  for eligible persons.  The commissioner shall identify eligible 
156.33  persons who may have coverage or benefits under other plans of 
156.34  insurance or who become eligible for medical assistance. 
156.35  Effective July 1, 2000, the effective date of coverage for any 
156.36  person who is receiving a cash payment through the general 
157.1   assistance program under chapter 256D or the group residential 
157.2   housing program under chapter 256I is the first day of the first 
157.3   month for which a general assistance or group residential 
157.4   housing payment is made. 
157.5      Sec. 13.  Minnesota Statutes 1996, section 256.9355, 
157.6   subdivision 4, is amended to read: 
157.7      Subd. 4.  [APPLICATION PROCESSING.] The commissioner of 
157.8   human services shall determine an applicant's eligibility for 
157.9   MinnesotaCare no more than 30 days from the date that the 
157.10  application is received by the department of human services.  
157.11  This requirement shall be suspended for four months following 
157.12  the dates in which single adults and families without children 
157.13  become eligible for the program.  Effective July 1, 2000, this 
157.14  requirement also applies to local human services agencies that 
157.15  determine eligibility for MinnesotaCare. 
157.16     Sec. 14.  Minnesota Statutes 1996, section 256.9356, 
157.17  subdivision 2, is amended to read: 
157.18     Subd. 2.  [PREMIUM PAYMENTS.] (a) The commissioner shall 
157.19  require MinnesotaCare enrollees eligible under section 256.9354, 
157.20  subdivisions 2 to 5, to pay a premium based on a sliding scale, 
157.21  as established under section 256.9358.  The following applicants 
157.22  are exempt from this requirement until July 1, 1993: 
157.23     (1) applicants who are eligible under section 256.9354, 
157.24  subdivision 1, if the application is received by MinnesotaCare 
157.25  staff on or before September 30, 1992; and 
157.26     (2) children who enroll in the MinnesotaCare program after 
157.27  September 30, 1992, pursuant to Laws 1992, chapter 549, article 
157.28  4, section 17.  
157.29     (b) The following applicants and enrollees are exempt from 
157.30  this requirement beginning July 1, 2000: 
157.31     (1) applicants or enrollees who receive payment from the 
157.32  general assistance program under chapter 256D or the group 
157.33  residential housing program under chapter 256I who are not 
157.34  eligible for medical assistance under chapter 256B without a 
157.35  spenddown.  These applicants or enrollees are exempt from 
157.36  premium requirements beginning with the first month for which 
158.1   payment is made under general assistance or group residential 
158.2   housing and continuing until the first scheduled renewal 
158.3   following the termination of benefits under general assistance 
158.4   or group residential housing. 
158.5      (2) applicants or enrollees who receive payment from the 
158.6   general assistance or group residential housing program who 
158.7   would be eligible for medical assistance without a spenddown 
158.8   shall be required to pay a premium based on a sliding scale as 
158.9   established under section 256.9368. 
158.10     Sec. 15.  Minnesota Statutes 1996, section 256.9357, 
158.11  subdivision 2, is amended to read: 
158.12     Subd. 2.  [MUST NOT HAVE ACCESS TO EMPLOYER-SUBSIDIZED 
158.13  COVERAGE.] (a) To be eligible for subsidized premium payments 
158.14  based on a sliding scale, or to be exempt from premium 
158.15  requirements under section 256.9356, subdivision 2, paragraph 
158.16  (b), a family or individual must not have access to subsidized 
158.17  health coverage through an employer, and must not have had 
158.18  access to subsidized health coverage through an employer for the 
158.19  18 months prior to application for subsidized coverage under the 
158.20  MinnesotaCare program.  The requirement that the family or 
158.21  individual must not have had access to employer-subsidized 
158.22  coverage during the previous 18 months does not apply if:  (1) 
158.23  employer-subsidized coverage was lost due to the death of an 
158.24  employee or divorce; (2) employer-subsidized coverage was lost 
158.25  because an individual became ineligible for coverage as a child 
158.26  or dependent; or (3) employer-subsidized coverage was lost for 
158.27  reasons that would not disqualify the individual for 
158.28  unemployment benefits under section 268.09 and the family or 
158.29  individual has not had access to employer-subsidized coverage 
158.30  since the loss of coverage.  If employer-subsidized coverage was 
158.31  lost for reasons that disqualify an individual for unemployment 
158.32  benefits under section 268.09, children of that individual are 
158.33  exempt from the requirement of no access to employer subsidized 
158.34  coverage for the 18 months prior to application, as long as the 
158.35  children have not had access to employer subsidized coverage 
158.36  since the disqualifying event.  The requirement that the family 
159.1   or individual must not have had access to employer-subsidized 
159.2   coverage during the previous 18 months does apply if 
159.3   employer-subsidized coverage is lost due to an employer 
159.4   terminating health care coverage as an employee benefit.  
159.5      (b) For purposes of this requirement, subsidized health 
159.6   coverage means health coverage for which the employer pays at 
159.7   least 50 percent of the cost of coverage for the employee, 
159.8   excluding dependent coverage, or a higher percentage as 
159.9   specified by the commissioner.  Children are eligible for 
159.10  employer-subsidized coverage through either parent, including 
159.11  the noncustodial parent.  The commissioner must treat employer 
159.12  contributions to Internal Revenue Code Section 125 plans as 
159.13  qualified employer subsidies toward the cost of health coverage 
159.14  for employees for purposes of this subdivision. 
159.15     Sec. 16.  Minnesota Statutes 1996, section 256.9357, 
159.16  subdivision 3, is amended to read: 
159.17     Subd. 3.  [PERIOD UNINSURED.] To be eligible for subsidized 
159.18  premium payments based on a sliding scale, or to be exempt from 
159.19  premium requirements under section 256.9356, subdivision 2, 
159.20  paragraph (b), families and individuals initially enrolled in 
159.21  the MinnesotaCare program under section 256.9354, subdivisions 4 
159.22  and 5, must have had no health coverage for at least four months 
159.23  prior to application.  The commissioner may change this 
159.24  eligibility criterion for sliding scale premiums without 
159.25  complying with rulemaking requirements in order to remain within 
159.26  the limits of available appropriations.  The requirement of at 
159.27  least four months of no health coverage prior to application for 
159.28  the MinnesotaCare program does not apply to: 
159.29     (1) families, children, and individuals who want to apply 
159.30  for the MinnesotaCare program upon termination from the medical 
159.31  assistance program, general assistance medical care program, or 
159.32  coverage under a regional demonstration project for the 
159.33  uninsured funded under section 256B.73, the Hennepin county 
159.34  assured care program, or the Group Health, Inc., community 
159.35  health plan; 
159.36     (2) families and individuals initially enrolled under 
160.1   section 256.9354, subdivisions 1, paragraph (a), and 2; 
160.2      (3) children enrolled pursuant to Laws 1992, chapter 549, 
160.3   article 4, section 17; or 
160.4      (4) individuals currently serving or who have served in the 
160.5   military reserves, and dependents of these individuals, if these 
160.6   individuals:  (i) reapply for MinnesotaCare coverage after a 
160.7   period of active military service during which they had been 
160.8   covered by the Civilian Health and Medical Program of the 
160.9   Uniformed Services (CHAMPUS); (ii) were covered under 
160.10  MinnesotaCare immediately prior to obtaining coverage under 
160.11  CHAMPUS; and (iii) have maintained continuous coverage. 
160.12     Sec. 17.  Minnesota Statutes 1996, section 256.9358, 
160.13  subdivision 1, is amended to read: 
160.14     Subdivision 1.  [PREMIUM DETERMINATION.] Each individual or 
160.15  family enrolled in the MinnesotaCare program shall pay a premium 
160.16  determined according to a sliding fee based on the cost of 
160.17  coverage as a percentage of the individual's or family's gross 
160.18  family income.  
160.19  Effective July 1, 2000, individuals who are receiving payment 
160.20  from general assistance under chapter 256D or group residential 
160.21  housing under chapter 256I and who are not eligible for medical 
160.22  assistance under chapter 256B without a spenddown shall not be 
160.23  required to pay a premium. 
160.24     Sec. 18.  Minnesota Statutes 1996, section 256.9358, 
160.25  subdivision 7, is amended to read: 
160.26     Subd. 7.  [MINIMUM PREMIUM PAYMENT.] Beginning with premium 
160.27  payments due on or after July 1, 1995, the commissioner shall 
160.28  require all MinnesotaCare enrollees to pay a minimum premium of 
160.29  $4 per month.  
160.30  Effective July 1, 2000, individuals who are receiving payment 
160.31  from general assistance under chapter 256D or group residential 
160.32  housing under chapter 256I and who are not eligible for medical 
160.33  assistance under chapter 256B without a spenddown shall not be 
160.34  required to pay a premium. 
160.35     Sec. 19.  Minnesota Statutes 1996, section 256.9363, 
160.36  subdivision 7, is amended to read: 
161.1      Subd. 7.  [MANAGED CARE PLAN VENDOR REQUIREMENTS.] The 
161.2   following requirements apply to all counties or vendors who 
161.3   contract with the department of human services to serve 
161.4   MinnesotaCare recipients.  Managed care plan contractors: 
161.5      (1) shall authorize and arrange for the provision of the 
161.6   full range of services listed in section 256.9353, except dental 
161.7   services provided under section 256B.037, in order to ensure 
161.8   appropriate health care is delivered to enrollees; 
161.9      (2) shall accept the prospective, per capita payment or 
161.10  other contractually defined payment from the commissioner in 
161.11  return for the provision and coordination of covered health care 
161.12  services for eligible individuals enrolled in the program; 
161.13     (3) may contract with other health care and social service 
161.14  practitioners to provide services to enrollees; 
161.15     (4) shall provide for an enrollee grievance process as 
161.16  required by the commissioner and set forth in the contract with 
161.17  the department; 
161.18     (5) shall retain all revenue from enrollee copayments; 
161.19     (6) shall accept all eligible MinnesotaCare enrollees, 
161.20  without regard to health status or previous utilization of 
161.21  health services; 
161.22     (7) shall demonstrate capacity to accept financial risk 
161.23  according to requirements specified in the contract with the 
161.24  department.  A health maintenance organization licensed under 
161.25  chapter 62D, or a nonprofit health plan licensed under chapter 
161.26  62C, is not required to demonstrate financial risk capacity, 
161.27  beyond that which is required to comply with chapters 62C and 
161.28  62D; and 
161.29     (8) shall submit information as required by the 
161.30  commissioner, including data required for assessing enrollee 
161.31  satisfaction, quality of care, cost, and utilization of services.
161.32     Sec. 20.  Minnesota Statutes 1996, section 256.969, 
161.33  subdivision 1, is amended to read: 
161.34     Subdivision 1.  [HOSPITAL COST INDEX.] (a) The hospital 
161.35  cost index shall be the change in the Consumer Price Index-All 
161.36  Items (United States city average) (CPI-U) forecasted by Data 
162.1   Resources, Inc.  The commissioner shall use the indices as 
162.2   forecasted in the third quarter of the calendar year prior to 
162.3   the rate year.  The hospital cost index may be used to adjust 
162.4   the base year operating payment rate through the rate year on an 
162.5   annually compounded basis.  
162.6      (b) For fiscal years beginning on or after July 1, 1993, 
162.7   the commissioner of human services shall not provide automatic 
162.8   annual inflation adjustments for hospital payment rates under 
162.9   medical assistance, nor under general assistance medical care, 
162.10  except that the inflation adjustments under paragraph (a) for 
162.11  medical assistance, excluding general assistance medical care, 
162.12  shall apply through calendar year 1997 1999.  The commissioner 
162.13  of finance shall include as a budget change request in each 
162.14  biennial detailed expenditure budget submitted to the 
162.15  legislature under section 16A.11 annual adjustments in hospital 
162.16  payment rates under medical assistance and general assistance 
162.17  medical care, based upon the hospital cost index. 
162.18     Sec. 21.  Minnesota Statutes 1996, section 256.9695, 
162.19  subdivision 1, is amended to read: 
162.20     Subdivision 1.  [APPEALS.] A hospital may appeal a decision 
162.21  arising from the application of standards or methods under 
162.22  section 256.9685, 256.9686, or 256.969, if an appeal would 
162.23  result in a change to the hospital's payment rate or payments.  
162.24  Both overpayments and underpayments that result from the 
162.25  submission of appeals shall be implemented.  Regardless of any 
162.26  appeal outcome, relative values shall not be recalculated.  The 
162.27  appeal shall be heard by an administrative law judge according 
162.28  to sections 14.57 to 14.62, or upon agreement by both parties, 
162.29  according to a modified appeals procedure established by the 
162.30  commissioner and the office of administrative hearings.  In any 
162.31  proceeding under this section, the appealing party must 
162.32  demonstrate by a preponderance of the evidence that the 
162.33  commissioner's determination is incorrect or not according to 
162.34  law. 
162.35     (a) To appeal a payment rate or payment determination or a 
162.36  determination made from base year information, the hospital 
163.1   shall file a written appeal request to the commissioner within 
163.2   60 days of the date the payment rate determination was mailed.  
163.3   The appeal request shall specify:  (i) the disputed items; (ii) 
163.4   the authority in federal or state statute or rule upon which the 
163.5   hospital relies for each disputed item; and (iii) the name and 
163.6   address of the person to contact regarding the appeal.  Facts to 
163.7   be considered in any appeal of base year information are limited 
163.8   to those in existence at the time the payment rates of the first 
163.9   rate year were established from the base year information.  In 
163.10  the case of Medicare settled appeals, the 60-day appeal period 
163.11  shall begin on the mailing date of the notice by the Medicare 
163.12  program or the date the medical assistance payment rate 
163.13  determination notice is mailed, whichever is later. 
163.14     (b) To appeal a payment rate or payment change that results 
163.15  from a difference in case mix between the base year and a rate 
163.16  year, the procedures and requirements of paragraph (a) apply.  
163.17  However, the appeal must be filed with the commissioner within 
163.18  120 days after the end of a rate year.  A case mix appeal must 
163.19  apply to the cost of services to all medical assistance patients 
163.20  that received inpatient services from the hospital during the 
163.21  rate year appealed.  For case mix appeals filed after January 1, 
163.22  1997, the difference in case mix and the corresponding payment 
163.23  adjustment must exceed a threshold of ten percent. 
163.24     Sec. 22.  Minnesota Statutes 1996, section 256B.02, is 
163.25  amended by adding a subdivision to read: 
163.26     Subd. 16.  [FAMILY.] "Family" means a parent and the 
163.27  parent's biological or adoptive children under age 21; a 
163.28  stepparent and stepchildren under age 21; and spouses living 
163.29  together in the same household.  It also includes children and 
163.30  stepchildren under age 18 who are living out of the home 
163.31  voluntarily.  This subdivision becomes effective January 1, 
163.32  1999, or upon federal approval of any required waiver if later. 
163.33     Sec. 23.  Minnesota Statutes 1996, section 256B.037, 
163.34  subdivision 2, is amended to read: 
163.35     Subd. 2.  [ESTABLISHMENT OF PREPAYMENT RATES.] The 
163.36  commissioner shall consult with an independent actuary to 
164.1   establish prepayment rates, but shall retain final authority 
164.2   over the methodology used to establish the rates.  Payment rates 
164.3   may be adjusted to reflect increased availability of providers 
164.4   under the demonstration project in subdivision 1.  The 
164.5   commissioner may negotiate contracts which make payment after 
164.6   the month of coverage.  The prepayment dental rates under this 
164.7   section, combined with other prepaid programs, shall not result 
164.8   in payments that exceed the per capita expenditures that would 
164.9   have been made for dental services by the programs under a 
164.10  fee-for-service reimbursement system.  The package of dental 
164.11  benefits provided to individuals under this subdivision shall 
164.12  not be less than the package of benefits provided under 
164.13  the medical assistance fee-for-service reimbursement system for 
164.14  dental services program for which they are eligible. 
164.15     Sec. 24.  Minnesota Statutes 1996, section 256B.055, is 
164.16  amended by adding a subdivision to read: 
164.17     Subd. 11a.  Effective July 1, 2000, medical assistance 
164.18  without federal financial participation may be paid for a person 
164.19  who would be eligible for medical assistance with federal 
164.20  financial participation except that the person resides in a 
164.21  facility that is determined by the commissioner or the federal 
164.22  health care financing administration to be an institution for 
164.23  mental diseases, but no payment shall be made for the cost of 
164.24  care in institutions for mental diseases. 
164.25     Sec. 25.  Minnesota Statutes 1996, section 256B.056, 
164.26  subdivision 4, is amended to read: 
164.27     Subd. 4.  [INCOME.] To be eligible for medical assistance, 
164.28  a person must not have, or anticipate receiving, semiannual 
164.29  income in excess of 120 percent of the income standards by 
164.30  family size used in the aid to families with dependent children 
164.31  program, except that families and children may have an income up 
164.32  to 133-1/3 percent of the AFDC income standard.  In computing 
164.33  income to determine eligibility of persons who are not residents 
164.34  of long-term care facilities, the commissioner shall disregard 
164.35  increases in income as required by Public Law Numbers 94-566, 
164.36  section 503; 99-272; and 99-509.  Veterans aid and attendance 
165.1   benefits and Veterans Administration unusual medical expense 
165.2   payments are considered income to the recipient. 
165.3      Sec. 26.  Minnesota Statutes 1996, section 256B.056, 
165.4   subdivision 5, is amended to read: 
165.5      Subd. 5.  [EXCESS INCOME.] A person who has excess income 
165.6   is eligible for medical assistance if the person has expenses 
165.7   for medical care that are more than the amount of the person's 
165.8   excess income, computed by deducting incurred medical expenses 
165.9   from the excess income to reduce the excess to the income 
165.10  standard specified in subdivision 4.  The person shall elect to 
165.11  have the medical expenses deducted at the beginning of a 
165.12  one-month budget period or at the beginning of a six-month 
165.13  budget period.  Until June 30, 1993, or the date the Medicaid 
165.14  Management Information System (MMIS) upgrade is implemented, 
165.15  whichever occurs last, The commissioner shall allow persons 
165.16  eligible for assistance on a one-month spenddown basis under 
165.17  this subdivision to elect to pay the monthly spenddown amount in 
165.18  advance of the month of eligibility to the local state agency in 
165.19  order to maintain eligibility on a continuous basis.  If the 
165.20  recipient does not pay the spenddown amount on or before 
165.21  the 10th 20th of the month, the recipient is ineligible for this 
165.22  option for the following month.  The local agency must deposit 
165.23  spenddown payments into its treasury and issue a monthly payment 
165.24  to the state agency with the necessary individual account 
165.25  information.  The local agency shall code the client eligibility 
165.26  Medicaid Management Information System (MMIS) to indicate that 
165.27  the spenddown obligation has been satisfied for the month 
165.28  paid recipient has elected this option.  The state agency shall 
165.29  convey this information recipient eligibility information 
165.30  relative to the collection of the spenddown to providers through 
165.31  eligibility cards which list no remaining spenddown obligation.  
165.32  After the implementation of the MMIS upgrade, the Electronic 
165.33  Verification System (EVS).  A recipient electing advance payment 
165.34  must pay the state agency the monthly spenddown amount on or 
165.35  before the 10th 20th of the month in order to be eligible for 
165.36  this option in the following month.  This subdivision expires 
166.1   the day before subdivision 5c becomes effective. 
166.2      Sec. 27.  Minnesota Statutes 1996, section 256B.056, is 
166.3   amended by adding a subdivision to read: 
166.4      Subd. 5c.  [EXCESS INCOME.] (a) Beginning January 1, 1999, 
166.5   or upon federal approval of a required waiver if later, a person 
166.6   who has excess income is eligible for medical assistance if the 
166.7   person has expenses for medical care that are more than the 
166.8   amount of the person's excess income, computed by deducting 
166.9   incurred medical expenses from the excess income to reduce the 
166.10  excess to the income standard specified in subdivision 4.  A 
166.11  person who is eligible for medical assistance as an elderly, 
166.12  blind, or disabled person may elect to have the medical expenses 
166.13  deducted at the beginning of a one-month budget period or at the 
166.14  beginning of the six-month budget period.  The commissioner 
166.15  shall allow persons eligible for assistance on a one-month 
166.16  spenddown basis under this subdivision to elect to pay the 
166.17  monthly spenddown amount in advance of the month of eligibility 
166.18  to the state agency in order to maintain eligibility on a 
166.19  continuous basis.  If the recipient does not pay the spenddown 
166.20  amount on or before the 20th of the month, the recipient is 
166.21  ineligible for this option for the following month.  The local 
166.22  agency shall code the Medicaid Management Information System 
166.23  (MMIS) to indicate that the recipient has elected this option.  
166.24  The state agency shall convey recipient eligibility information 
166.25  relative to the collection of the spenddown to providers through 
166.26  the Electronic Verification System (EVS).  A recipient electing 
166.27  advance payment must pay the state agency the monthly spenddown 
166.28  amount on or before the 20th of the month in order to be 
166.29  eligible for this option in the following month.  
166.30     (b) Beginning January 1, 1999, or upon federal approval of 
166.31  a required waiver if later, a person who is eligible for medical 
166.32  assistance under a families and children eligibility category 
166.33  must have the medical expenses deducted at the beginning of the 
166.34  six-month budget period. 
166.35     Sec. 28.  Minnesota Statutes 1996, section 256B.056, 
166.36  subdivision 7, is amended to read: 
167.1      Subd. 7.  [PERIOD OF ELIGIBILITY.] Eligibility is available 
167.2   for the month of application and for three months prior to 
167.3   application if the person was eligible in those prior months.  A 
167.4   redetermination of eligibility must occur every 12 months.  This 
167.5   subdivision expires the day before subdivision 7b is effective. 
167.6      Sec. 29.  Minnesota Statutes 1996, section 256B.056, is 
167.7   amended by adding a subdivision to read: 
167.8      Subd. 7a.  [PERIOD OF ELIGIBILITY.] For persons eligible 
167.9   for medical assistance as an elderly, blind, or disabled person, 
167.10  eligibility is available for the month of application and for 
167.11  three months prior to application if the person was eligible in 
167.12  those prior months.  A redetermination of eligibility must occur 
167.13  every 12 months.  This subdivision is effective the day 
167.14  subdivision 7b takes effect. 
167.15     Sec. 30.  Minnesota Statutes 1996, section 256B.056, is 
167.16  amended by adding a subdivision to read: 
167.17     Subd. 7b.  [PERIOD OF ELIGIBILITY.] (a) Beginning January 
167.18  1, 1998, or upon federal approval of a required waiver if later, 
167.19  eligibility for people eligible for medical assistance under a 
167.20  families and children category is available only for the month 
167.21  of application and for two months prior to application if the 
167.22  person was eligible in those prior months.  
167.23     (b) Beginning January 1, 1999, or upon federal approval of 
167.24  a required waiver if later, eligibility for these categories is 
167.25  available only for the month of application and one immediately 
167.26  prior month if the person was eligible in the prior month.  
167.27     (c) Beginning January 1, 2000, or upon federal approval of 
167.28  a required waiver if later, covered services for the prior month 
167.29  shall be limited to inpatient hospitalization, emergency room, 
167.30  and related physician's services provided during the inpatient 
167.31  stay.  The state agency shall inform recipients and providers 
167.32  annually beginning in 1997 through 2000 of the phase-down of 
167.33  retroactive eligibility. 
167.34     Sec. 31.  Minnesota Statutes 1996, section 256B.056, is 
167.35  amended by adding a subdivision to read: 
167.36     Subd. 9.  [ELIGIBILITY CRITERIA.] Beginning January 1, 
168.1   1999, or upon federal approval of a waiver if later, the total 
168.2   countable family income will be applied in determining the 
168.3   eligibility for each person who applies and is eligible for 
168.4   medical assistance under a families and children category.  
168.5   "Family" has the meaning given in section 256B.02, subdivision 
168.6   16. 
168.7      Sec. 32.  Minnesota Statutes 1996, section 256B.061, is 
168.8   amended to read: 
168.9      256B.061 [ELIGIBILITY; RETROACTIVE EFFECT; RESTRICTIONS.] 
168.10     Subdivision 1.  If any individual has been determined to be 
168.11  eligible for medical assistance, it will be made available for 
168.12  care and services included under the plan and furnished in or 
168.13  after the third month before the month in which the individual 
168.14  made application for such assistance, if such individual was, or 
168.15  upon application would have been, eligible for medical 
168.16  assistance at the time the care and services were furnished.  
168.17  The commissioner may limit, restrict, or suspend the eligibility 
168.18  of an individual for up to one year upon that individual's 
168.19  conviction of a criminal offense related to application for or 
168.20  receipt of medical assistance benefits.  This subdivision 
168.21  expires the day before subdivision 1b becomes effective. 
168.22     Subd. 1a.  If any person has been determined to be eligible 
168.23  for medical assistance as an elderly, blind, or disabled person, 
168.24  medical assistance will be made available for care and services 
168.25  included under the plan and furnished in or after the third 
168.26  month before the month in which the person made application for 
168.27  such assistance, if the person was, or upon application would 
168.28  have been, eligible for medical assistance at the time the care 
168.29  and services were furnished.  This subdivision is effective the 
168.30  day subdivision 1b takes effect. 
168.31     Subd. 1b.  Beginning January 1, 1998, or upon federal 
168.32  approval of a required waiver if later, if an individual has 
168.33  been determined to be eligible for medical assistance under a 
168.34  families and children category, it will be made available only 
168.35  for care and services included under the plan and furnished in 
168.36  or after the second month before the month in which the 
169.1   individual made application for such assistance, if such 
169.2   individual was, or upon application would have been, eligible 
169.3   for medical assistance at the time the care and services were 
169.4   furnished. 
169.5      Subd. 1c.  Beginning January 1, 1999, or upon federal 
169.6   approval of a required waiver if later, if an individual has 
169.7   been determined to be eligible for medical assistance under a 
169.8   families and children category, it will be made available only 
169.9   for care and services included under the plan and furnished in 
169.10  or after the first month before the month in which the 
169.11  individual made application for such assistance, if the 
169.12  individual was, or upon application would have been, eligible 
169.13  for medical assistance at the time the care and services were 
169.14  furnished. 
169.15     Subd. 1d.  Beginning January 1, 2000, or upon federal 
169.16  approval of a required waiver if later, if an individual has 
169.17  been determined to be eligible for medical assistance under a 
169.18  families and children category, it will be made available only 
169.19  for inpatient hospital, emergency room, and related physician's 
169.20  services provided during the inpatient stay included under the 
169.21  plan and furnished in the first month before the month in which 
169.22  the individual made application for such assistance, if the 
169.23  individual was, or upon application would have been, eligible 
169.24  for medical assistance at the time the specified care and 
169.25  services were furnished.  From the month of application and 
169.26  continuing as long as eligibility exists, the individual will be 
169.27  eligible for all care and services included under the plan. 
169.28     Subd. 1e.  The commissioner may limit, restrict, or suspend 
169.29  the eligibility of an individual for up to one year upon that 
169.30  individual's conviction of a criminal offense related to 
169.31  application for or receipt of medical assistance benefits.  This 
169.32  subdivision is effective the day subdivision 1b takes effect.  
169.33     Sec. 33.  Minnesota Statutes 1996, section 256B.0625, 
169.34  subdivision 13, is amended to read: 
169.35     Subd. 13.  [DRUGS.] (a) Medical assistance covers drugs, 
169.36  except for fertility drugs when specifically used to enhance 
170.1   fertility, if prescribed by a licensed practitioner and 
170.2   dispensed by a licensed pharmacist, by a physician enrolled in 
170.3   the medical assistance program as a dispensing physician, or by 
170.4   a physician or a nurse practitioner employed by or under 
170.5   contract with a community health board as defined in section 
170.6   145A.02, subdivision 5, for the purposes of communicable disease 
170.7   control.  The commissioner, after receiving recommendations from 
170.8   professional medical associations and professional pharmacist 
170.9   associations, shall designate a formulary committee to advise 
170.10  the commissioner on the names of drugs for which payment is 
170.11  made, recommend a system for reimbursing providers on a set fee 
170.12  or charge basis rather than the present system, and develop 
170.13  methods encouraging use of generic drugs when they are less 
170.14  expensive and equally effective as trademark drugs.  The 
170.15  formulary committee shall consist of nine members, four of whom 
170.16  shall be physicians who are not employed by the department of 
170.17  human services, and a majority of whose practice is for persons 
170.18  paying privately or through health insurance, three of whom 
170.19  shall be pharmacists who are not employed by the department of 
170.20  human services, and a majority of whose practice is for persons 
170.21  paying privately or through health insurance, a consumer 
170.22  representative, and a nursing home representative.  Committee 
170.23  members shall serve three-year terms and shall serve without 
170.24  compensation.  Members may be reappointed once.  
170.25     (b) The commissioner shall establish a drug formulary.  Its 
170.26  establishment and publication shall not be subject to the 
170.27  requirements of the administrative procedure act, but the 
170.28  formulary committee shall review and comment on the formulary 
170.29  contents.  The formulary committee shall review and recommend 
170.30  drugs which require prior authorization.  The formulary 
170.31  committee may recommend drugs for prior authorization directly 
170.32  to the commissioner, as long as opportunity for public input is 
170.33  provided.  Prior authorization may be requested by the 
170.34  commissioner based on medical and clinical criteria before 
170.35  certain drugs are eligible for payment.  Before a drug may be 
170.36  considered for prior authorization at the request of the 
171.1   commissioner:  
171.2      (1) the drug formulary committee must develop criteria to 
171.3   be used for identifying drugs; the development of these criteria 
171.4   is not subject to the requirements of chapter 14, but the 
171.5   formulary committee shall provide opportunity for public input 
171.6   in developing criteria; 
171.7      (2) the drug formulary committee must hold a public forum 
171.8   and receive public comment for an additional 15 days; and 
171.9      (3) the commissioner must provide information to the 
171.10  formulary committee on the impact that placing the drug on prior 
171.11  authorization will have on the quality of patient care and 
171.12  information regarding whether the drug is subject to clinical 
171.13  abuse or misuse.  Prior authorization may be required by the 
171.14  commissioner before certain formulary drugs are eligible for 
171.15  payment.  The formulary shall not include:  
171.16     (i) drugs or products for which there is no federal 
171.17  funding; 
171.18     (ii) over-the-counter drugs, except for antacids, 
171.19  acetaminophen, family planning products, aspirin, insulin, 
171.20  products for the treatment of lice, vitamins for adults with 
171.21  documented vitamin deficiencies, and vitamins for children under 
171.22  the age of seven and pregnant or nursing women;, and 
171.23     (iii) any other over-the-counter drug identified by the 
171.24  commissioner, in consultation with the drug formulary committee, 
171.25  as necessary, appropriate, and cost-effective for the treatment 
171.26  of certain specified chronic diseases, conditions or disorders, 
171.27  and this determination shall not be subject to the requirements 
171.28  of chapter 14; 
171.29     (iv) (iii) anorectics; and 
171.30     (v) (iv) drugs for which medical value has not been 
171.31  established. 
171.32     The commissioner shall publish conditions for prohibiting 
171.33  payment for specific drugs after considering the formulary 
171.34  committee's recommendations.  
171.35     (c) The basis for determining the amount of payment shall 
171.36  be the lower of the actual acquisition costs of the drugs plus a 
172.1   fixed dispensing fee; the maximum allowable cost set by the 
172.2   federal government or by the commissioner plus the fixed 
172.3   dispensing fee; or the usual and customary price charged to the 
172.4   public.  The pharmacy dispensing fee shall be $3.85 $3.45.  
172.5   Actual acquisition cost includes quantity and other special 
172.6   discounts except time and cash discounts.  The actual 
172.7   acquisition cost of a drug shall be estimated by the 
172.8   commissioner, at average wholesale price minus nine percent.  
172.9   The maximum allowable cost of a multisource drug may be set by 
172.10  the commissioner and it shall be comparable to, but no higher 
172.11  than, the maximum amount paid by other third-party payors in 
172.12  this state who have maximum allowable cost programs.  
172.13  Establishment of the amount of payment for drugs shall not be 
172.14  subject to the requirements of the administrative procedure 
172.15  act.  An additional dispensing fee of $.30 may be added to the 
172.16  dispensing fee paid to pharmacists for legend drug prescriptions 
172.17  dispensed to residents of long-term care facilities when a unit 
172.18  dose blister card system, approved by the department, is used.  
172.19  Under this type of dispensing system, the pharmacist must 
172.20  dispense a 30-day supply of drug.  The National Drug Code (NDC) 
172.21  from the drug container used to fill the blister card must be 
172.22  identified on the claim to the department.  The unit dose 
172.23  blister card containing the drug must meet the packaging 
172.24  standards set forth in Minnesota Rules, part 6800.2700, that 
172.25  govern the return of unused drugs to the pharmacy for reuse.  
172.26  The pharmacy provider will be required to credit the department 
172.27  for the actual acquisition cost of all unused drugs that are 
172.28  eligible for reuse.  Over-the-counter medications must be 
172.29  dispensed in the manufacturer's unopened package.  The 
172.30  commissioner may permit the drug clozapine to be dispensed in a 
172.31  quantity that is less than a 30-day supply.  Whenever a 
172.32  generically equivalent product is available, payment shall be on 
172.33  the basis of the actual acquisition cost of the generic drug, 
172.34  unless the prescriber specifically indicates "dispense as 
172.35  written - brand necessary" on the prescription as required by 
172.36  section 151.21, subdivision 2.  
173.1      Sec. 34.  Minnesota Statutes 1996, section 256B.0626, is 
173.2   amended to read: 
173.3      256B.0626 [ESTIMATION OF 50TH PERCENTILE OF PREVAILING 
173.4   CHARGES.] 
173.5      (a) The 50th percentile of the prevailing charge for the 
173.6   base year identified in statute must be estimated by the 
173.7   commissioner in the following situations: 
173.8      (1) there were less than ten five billings in the calendar 
173.9   year specified in legislation governing maximum payment rates; 
173.10     (2) the service was not available in the calendar year 
173.11  specified in legislation governing maximum payment rates; 
173.12     (3) the payment amount is the result of a provider appeal; 
173.13     (4) the procedure code description has changed since the 
173.14  calendar year specified in legislation governing maximum payment 
173.15  rates, and, therefore, the prevailing charge information 
173.16  reflects the same code but a different procedure description; or 
173.17     (5) the 50th percentile reflects a payment which is grossly 
173.18  inequitable when compared with payment rates for procedures or 
173.19  services which are substantially similar. 
173.20     (b) When one of the situations identified in paragraph (a) 
173.21  occurs, the commissioner shall use the following methodology to 
173.22  reconstruct a rate comparable to the 50th percentile of the 
173.23  prevailing rate: 
173.24     (1) refer to information which exists for the first nine 
173.25  four billings in the calendar year specified in legislation 
173.26  governing maximum payment rates; or 
173.27     (2) refer to surrounding or comparable procedure codes; or 
173.28     (3) refer to the 50th percentile of years subsequent to the 
173.29  calendar year specified in legislation governing maximum payment 
173.30  rates, and reduce that amount by applying an appropriate 
173.31  Consumer Price Index formula; or 
173.32     (4) refer to relative value indexes; or 
173.33     (5) refer to reimbursement information from other third 
173.34  parties, such as Medicare. 
173.35     Sec. 35.  Minnesota Statutes 1996, section 256B.69, is 
173.36  amended by adding a subdivision to read: 
174.1      Subd. 5c.  [MEDICAL EDUCATION AND RESEARCH TRUST FUND.] (a) 
174.2   Beginning January 1998 and each month after, the commissioner of 
174.3   human services shall transfer 4.2 percent of the prepaid medical 
174.4   assistance and prepaid general assistance medical care payment, 
174.5   excluding nursing facility and elderly waiver payments, and 2.2 
174.6   percent of the MinnesotaCare payment made in the same month to 
174.7   the medical education and research trust fund established under 
174.8   section 62J.69.  
174.9      (b) The base rate prior to plan specific adjustments for MA 
174.10  and GAMC capitation rates shall be reduced 6.3 percent for 
174.11  Hennepin county, two percent for the remaining metropolitan 
174.12  counties, and 1.6 percent for the nonmetropolitan Minnesota 
174.13  counties, and 2.2 percent for MinnesotaCare in all counties.  
174.14     (c) The payment to the fund shall not be adjusted for 
174.15  subsequent changes to the capitation payments.  This subdivision 
174.16  shall be effective for the month a federal waiver allows federal 
174.17  financial participation in the transfer.  If the waiver delays 
174.18  implementation beyond January 1998, the transfer shall include 
174.19  all payments that would have been made under this subdivision if 
174.20  approved in the waiver. 
174.21     Sec. 36.  Minnesota Statutes 1996, section 256B.69, 
174.22  subdivision 6, is amended to read: 
174.23     Subd. 6.  [SERVICE DELIVERY.] (a) Each demonstration 
174.24  provider shall be responsible for the health care coordination 
174.25  for eligible individuals.  Demonstration providers:  
174.26     (1) shall authorize and arrange for the provision of all 
174.27  needed health services including but not limited to the full 
174.28  range of services listed in sections 256B.02, subdivision 8, and 
174.29  256B.0625, except dental services provided under section 
174.30  256B.037, in order to ensure appropriate health care is 
174.31  delivered to enrollees; 
174.32     (2) shall accept the prospective, per capita payment from 
174.33  the commissioner in return for the provision of comprehensive 
174.34  and coordinated health care services for eligible individuals 
174.35  enrolled in the program; 
174.36     (3) may contract with other health care and social service 
175.1   practitioners to provide services to enrollees; and 
175.2      (4) shall institute recipient grievance procedures 
175.3   according to the method established by the project, utilizing 
175.4   applicable requirements of chapter 62D.  Disputes not resolved 
175.5   through this process shall be appealable to the commissioner as 
175.6   provided in subdivision 11.  
175.7      (b) Demonstration providers must comply with the standards 
175.8   for claims settlement under section 72A.201, subdivisions 4, 5, 
175.9   7, and 8, when contracting with other health care and social 
175.10  service practitioners to provide services to enrollees.  A 
175.11  demonstration provider must pay a clean claim, as defined in 
175.12  Code of Federal Regulations, title 42, section 447.45(b), within 
175.13  30 business days of the date of acceptance of the claim.  
175.14     Sec. 37.  Minnesota Statutes 1996, section 256D.03, 
175.15  subdivision 3, is amended to read: 
175.16     Subd. 3.  [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 
175.17  (a) General assistance medical care may be paid for any person 
175.18  who is not eligible for medical assistance under chapter 256B, 
175.19  including eligibility for medical assistance based on a 
175.20  spenddown of excess income according to section 256B.056, 
175.21  subdivision 5, and: 
175.22     (1) who is receiving assistance under section 256D.05, or 
175.23  who is having a payment made on the person's behalf under 
175.24  sections 256I.01 to 256I.06; or 
175.25     (2)(i) who is a resident of Minnesota; and whose equity in 
175.26  assets is not in excess of $1,000 per assistance unit.  No asset 
175.27  test shall be applied to children and their parents living in 
175.28  the same household.  Exempt assets, the reduction of excess 
175.29  assets, and the waiver of excess assets must conform to the 
175.30  medical assistance program in chapter 256B, with the following 
175.31  exception:  the maximum amount of undistributed funds in a trust 
175.32  that could be distributed to or on behalf of the beneficiary by 
175.33  the trustee, assuming the full exercise of the trustee's 
175.34  discretion under the terms of the trust, must be applied toward 
175.35  the asset maximum; and 
175.36     (ii) who has countable income not in excess of the 
176.1   assistance standards established in section 256B.056, 
176.2   subdivision 4, or whose excess income is spent down pursuant to 
176.3   section 256B.056, subdivision 5, using a six-month budget 
176.4   period, except that a one-month budget period must be used for 
176.5   recipients residing in a long-term care facility.  The method 
176.6   for calculating earned income disregards and deductions for a 
176.7   person who resides with a dependent child under age 21 shall be 
176.8   as specified in section 256.74, subdivision 1 follow section 
176.9   256B.056.  However, if a disregard of $30 and one-third of the 
176.10  remainder described in section 256.74, subdivision 1, clause 
176.11  (4), has been applied to the wage earner's income, the disregard 
176.12  shall not be applied again until the wage earner's income has 
176.13  not been considered in an eligibility determination for general 
176.14  assistance, general assistance medical care, medical assistance, 
176.15  or aid to families with dependent children MFIP-S for 12 
176.16  consecutive months.  The Beginning January 1, 1999, total 
176.17  countable family income will be applied in determining the 
176.18  eligibility for each person who applies or is eligible for 
176.19  general assistance medical care.  For purposes of this 
176.20  subdivision, "family" means a parent and the parent's biological 
176.21  or adoptive children under age 21; stepparent and stepchildren 
176.22  under age 21; and spouses living together in the same 
176.23  household.  It also includes children and stepchildren under age 
176.24  18 who are living out of the home voluntarily.  No earned income 
176.25  and work expense deductions are permitted for a person who does 
176.26  not reside with a dependent child under age 21 shall be the same 
176.27  as the method used to determine eligibility for a person under 
176.28  section 256D.06, subdivision 1, except the disregard of the 
176.29  first $50 of earned income is not allowed; or 
176.30     (3) who would be eligible for medical assistance except 
176.31  that the person resides in a facility that is determined by the 
176.32  commissioner or the federal health care financing administration 
176.33  to be an institution for mental diseases. 
176.34     (b)(i) Eligibility is available for the month of 
176.35  application, and for three months prior to application if the 
176.36  person was eligible in those prior months.  A redetermination of 
177.1   eligibility must occur every 12 months.  This clause expires 
177.2   December 31, 1997. 
177.3      (ii) Beginning January 1, 1998, eligibility is available 
177.4   only for the month of application and for two months prior to 
177.5   application if the person was eligible in those prior months.  A 
177.6   redetermination of eligibility must occur every 12 months.  
177.7      (iii) Beginning January 1, 1999, eligibility is available 
177.8   only for the month of application and one month immediately 
177.9   prior to the month of application if the person was eligible in 
177.10  the prior month.  A redetermination of eligibility must occur 
177.11  every 12 months.  
177.12     (iv) Beginning January 1, 2000, covered services for the 
177.13  month prior to the month of application shall be limited to 
177.14  inpatient hospitalization, emergency room, and related 
177.15  physician's services provided during the inpatient stay.  The 
177.16  state agency shall inform recipients and providers annually 
177.17  beginning in 1997 through 2000 of the phase-down of retroactive 
177.18  eligibility.  A redetermination of eligibility must occur every 
177.19  12 months. 
177.20     (c) General assistance medical care is not available for a 
177.21  person in a correctional facility unless the person is detained 
177.22  by law for less than one year in a county correctional or 
177.23  detention facility as a person accused or convicted of a crime, 
177.24  or admitted as an inpatient to a hospital on a criminal hold 
177.25  order, and the person is a recipient of general assistance 
177.26  medical care at the time the person is detained by law or 
177.27  admitted on a criminal hold order and as long as the person 
177.28  continues to meet other eligibility requirements of this 
177.29  subdivision.  
177.30     (d) General assistance medical care is not available for 
177.31  applicants or recipients who do not cooperate with the county 
177.32  agency to meet the requirements of medical assistance. 
177.33     (e) In determining the amount of assets of an individual, 
177.34  there shall be included any asset or interest in an asset, 
177.35  including an asset excluded under paragraph (a), that was given 
177.36  away, sold, or disposed of for less than fair market value 
178.1   within the 60 months preceding application for general 
178.2   assistance medical care or during the period of eligibility.  
178.3   Any transfer described in this paragraph shall be presumed to 
178.4   have been for the purpose of establishing eligibility for 
178.5   general assistance medical care, unless the individual furnishes 
178.6   convincing evidence to establish that the transaction was 
178.7   exclusively for another purpose.  For purposes of this 
178.8   paragraph, the value of the asset or interest shall be the fair 
178.9   market value at the time it was given away, sold, or disposed 
178.10  of, less the amount of compensation received.  For any 
178.11  uncompensated transfer, the number of months of ineligibility, 
178.12  including partial months, shall be calculated by dividing the 
178.13  uncompensated transfer amount by the average monthly per person 
178.14  payment made by the medical assistance program to skilled 
178.15  nursing facilities for the previous calendar year.  The 
178.16  individual shall remain ineligible until this fixed period has 
178.17  expired.  The period of ineligibility may exceed 30 months, and 
178.18  a reapplication for benefits after 30 months from the date of 
178.19  the transfer shall not result in eligibility unless and until 
178.20  the period of ineligibility has expired.  The period of 
178.21  ineligibility begins in the month the transfer was reported to 
178.22  the county agency, or if the transfer was not reported, the 
178.23  month in which the county agency discovered the transfer, 
178.24  whichever comes first.  For applicants, the period of 
178.25  ineligibility begins on the date of the first approved 
178.26  application. 
178.27     (f)(1) Beginning October 1, 1993, an undocumented alien or 
178.28  a nonimmigrant is ineligible for general assistance medical care 
178.29  other than emergency services.  For purposes of this 
178.30  subdivision, a nonimmigrant is an individual in one or more of 
178.31  the classes listed in United States Code, title 8, section 
178.32  1101(a)(15), and an undocumented alien is an individual who 
178.33  resides in the United States without the approval or 
178.34  acquiescence of the Immigration and Naturalization Service. 
178.35     (2) This subdivision does not apply to a child under age 
178.36  18, to a Cuban or Haitian entrant as defined in Public Law 
179.1   Number 96-422, section 501(e)(1) or (2)(a), or to an alien who 
179.2   is aged, blind, or disabled as defined in United States Code, 
179.3   title 42, section 1382c(a)(1). 
179.4      (3) For purposes of paragraph (f), "emergency services" has 
179.5   the meaning given in Code of Federal Regulations, title 42, 
179.6   section 440.255(b)(1), except that it also means services 
179.7   rendered because of suspected or actual pesticide poisoning. 
179.8      Sec. 38.  Minnesota Statutes 1996, section 256G.05, 
179.9   subdivision 2, is amended to read: 
179.10     Subd. 2.  [NON-MINNESOTA RESIDENTS.] State residence is not 
179.11  required for receiving emergency assistance in the general 
179.12  assistance, general assistance medical care, and Minnesota 
179.13  supplemental aid programs only.  The receipt of emergency 
179.14  assistance must not be used as a factor in determining county or 
179.15  state residence. 
179.16     Sec. 39.  [REPEALER.] 
179.17     Minnesota Statutes 1996, section 256B.0625, subdivision 
179.18  13b, is repealed the day following final enactment. 
179.19                             ARTICLE 5
179.20                  ELDERLY AND DISABLED HEALTH CARE
179.21                               PART A 
179.22                CONTINUING CARE FOR ELDERLY PERSONS 
179.23     Section 1.  Minnesota Statutes 1996, section 144.0721, 
179.24  subdivision 3, is amended to read: 
179.25     Subd. 3.  [LEVEL OF CARE CRITERIA; MODIFICATIONS.] The 
179.26  commissioner shall seek appropriate federal waivers to implement 
179.27  this subdivision.  Notwithstanding any laws or rules to the 
179.28  contrary, effective July 1, 1996 1997, Minnesota's level of care 
179.29  criteria for admission of any person to a nursing facility 
179.30  licensed under chapter 144A, or a boarding care home licensed 
179.31  under sections 144.50 to 144.56, are modified as follows: 
179.32     (1) the resident reimbursement classifications and 
179.33  terminology established by rule under sections 256B.41 to 
179.34  256B.48 are the basis for applying the level of care criteria 
179.35  changes; 
179.36     (2) an applicant to a certified nursing facility or 
180.1   certified boarding care home who is dependent in zero, one, or 
180.2   two case mix activities of daily living, is classified as a case 
180.3   mix A, and is independent in orientation and self-preservation, 
180.4   is reclassified as a high function class A person and is not 
180.5   eligible for admission to Minnesota certified nursing facilities 
180.6   or certified boarding care homes; 
180.7      (3) applicants in clause (2) who are dependent in one or 
180.8   two case mix activities of daily living, who are eligible for 
180.9   assistance as determined under sections 256B.055 and 256B.056 or 
180.10  meet eligibility criteria for section 256B.0913 are eligible for 
180.11  a service allowance under section 256B.0913, subdivision 15, and 
180.12  are not eligible for services under sections 256B.0913, 
180.13  subdivisions 1 to 14, and 256B.0915.  Applicants in clause (2) 
180.14  shall have the option of receiving personal care assistant and 
180.15  home health aide services under section 256B.0625, if otherwise 
180.16  eligible, or of receiving the service allowance option, but not 
180.17  both.  Applicants in clause (2) shall have the option of 
180.18  residing in community settings under sections 256I.01 to 
180.19  256I.06, if otherwise eligible, or receiving the services 
180.20  allowance option under section 256B.0913, subdivision 15, but 
180.21  not both; 
180.22     (4) residents of a certified nursing facility or certified 
180.23  boarding care home who were admitted before July 1, 1996 1997, 
180.24  or individuals receiving services under section 256B.0913, 
180.25  subdivisions 1 to 14, or 256B.0915, before July 1, 1996 1997, 
180.26  are not subject to the new level of care criteria unless the 
180.27  resident is discharged home or to another service setting other 
180.28  than a certified nursing facility or certified boarding care 
180.29  home and applies for admission to a certified nursing facility 
180.30  or certified boarding care home after June 30, 1996 1997; 
180.31     (5) the local screening teams under section 256B.0911 shall 
180.32  make preliminary determinations concerning may determine the 
180.33  existence of extraordinary circumstances which render 
180.34  nonadmission to a certified nursing or certified boarding care 
180.35  home a serious threat to the health and safety of applicants in 
180.36  clause (2) and may authorize an admission for a short-term stay 
181.1   at to a certified nursing facility or certified boarding care 
181.2   home in accordance with a treatment and discharge plan for up to 
181.3   30 days per year; and 
181.4      (6) an individual deemed ineligible for admission to 
181.5   Minnesota certified nursing facilities is entitled to an appeal 
181.6   under section 256.045, subdivision 3. 
181.7      If the commissioner determines upon appeal that an 
181.8   applicant in clause (2) presents extraordinary circumstances 
181.9   including but not limited to the absence or inaccessibility of 
181.10  suitable alternatives, contravening family circumstances, and or 
181.11  protective service issues, the applicant may be eligible for 
181.12  admission to Minnesota certified nursing facilities or certified 
181.13  boarding care homes. 
181.14     Sec. 2.  Minnesota Statutes 1996, section 256.476, 
181.15  subdivision 2, is amended to read: 
181.16     Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
181.17  following terms have the meanings given them: 
181.18     (a) "County board" means the county board of commissioners 
181.19  for the county of financial responsibility as defined in section 
181.20  256G.02, subdivision 4, or its designated representative.  When 
181.21  a human services board has been established under sections 
181.22  402.01 to 402.10, it shall be considered the county board for 
181.23  the purposes of this section. 
181.24     (b) "Family" means the person's birth parents, adoptive 
181.25  parents or stepparents, siblings or stepsiblings, children or 
181.26  stepchildren, grandparents, grandchildren, niece, nephew, aunt, 
181.27  uncle, or spouse.  For the purposes of this section, a family 
181.28  member is at least 18 years of age. 
181.29     (c) "Functional limitations" means the long-term inability 
181.30  to perform an activity or task in one or more areas of major 
181.31  life activity, including self-care, understanding and use of 
181.32  language, learning, mobility, self-direction, and capacity for 
181.33  independent living.  For the purpose of this section, the 
181.34  inability to perform an activity or task results from a mental, 
181.35  emotional, psychological, sensory, or physical disability, 
181.36  condition, or illness. 
182.1      (d) "Informed choice" means a voluntary decision made by 
182.2   the person or the person's legal representative, after becoming 
182.3   familiarized with the alternatives to: 
182.4      (1) select a preferred alternative from a number of 
182.5   feasible alternatives; 
182.6      (2) select an alternative which may be developed in the 
182.7   future; and 
182.8      (3) refuse any or all alternatives. 
182.9      (e) "Local agency" means the local agency authorized by the 
182.10  county board to carry out the provisions of this section. 
182.11     (f) "Person" or "persons" means a person or persons meeting 
182.12  the eligibility criteria in subdivision 3. 
182.13     (g) "Responsible individual" "Authorized representative" 
182.14  means an individual designated by the person or their legal 
182.15  representative to act on their behalf.  This individual may be a 
182.16  family member, guardian, representative payee, or other 
182.17  individual designated by the person or their legal 
182.18  representative, if any, to assist in purchasing and arranging 
182.19  for supports.  For the purposes of this section, a responsible 
182.20  individual an authorized representative is at least 18 years of 
182.21  age. 
182.22     (h) "Screening" means the screening of a person's service 
182.23  needs under sections 256B.0911 and 256B.092. 
182.24     (i) "Supports" means services, care, aids, home 
182.25  modifications, or assistance purchased by the person or the 
182.26  person's family.  Examples of supports include respite care, 
182.27  assistance with daily living, and adaptive aids.  For the 
182.28  purpose of this section, notwithstanding the provisions of 
182.29  section 144A.43, supports purchased under the consumer support 
182.30  program are not considered home care services. 
182.31     (j) "Program of origination" means the program the 
182.32  individual transferred from when approved for the consumer 
182.33  support grant program. 
182.34     Sec. 3.  Minnesota Statutes 1996, section 256.476, 
182.35  subdivision 3, is amended to read: 
182.36     Subd. 3.  [ELIGIBILITY TO APPLY FOR GRANTS.] (a) A person 
183.1   is eligible to apply for a consumer support grant if the person 
183.2   meets all of the following criteria: 
183.3      (1) the person is eligible for and has been approved to 
183.4   receive services under medical assistance as determined under 
183.5   sections 256B.055 and 256B.056 or the person is eligible for and 
183.6   has been approved to receive services under alternative care 
183.7   services as determined under section 256B.0913 or the person has 
183.8   been approved to receive a grant under the developmental 
183.9   disability family support program under section 252.32; 
183.10     (2) the person is able to direct and purchase the person's 
183.11  own care and supports, or the person has a family member, legal 
183.12  representative, or other responsible individual authorized 
183.13  representative who can purchase and arrange supports on the 
183.14  person's behalf; 
183.15     (3) the person has functional limitations, requires ongoing 
183.16  supports to live in the community, and is at risk of or would 
183.17  continue institutionalization without such supports; and 
183.18     (4) the person will live in a home.  For the purpose of 
183.19  this section, "home" means the person's own home or home of a 
183.20  person's family member.  These homes are natural home settings 
183.21  and are not licensed by the department of health or human 
183.22  services. 
183.23     (b) Persons may not concurrently receive a consumer support 
183.24  grant if they are: 
183.25     (1) receiving home and community-based services under 
183.26  United States Code, title 42, section 1396h(c); personal care 
183.27  attendant and home health aide services under section 256B.0625; 
183.28  a developmental disability family support grant; or alternative 
183.29  care services under section 256B.0913; or 
183.30     (2) residing in an institutional or congregate care setting.
183.31     (c) A person or person's family receiving a consumer 
183.32  support grant shall not be charged a fee or premium by a local 
183.33  agency for participating in the program.  A person or person's 
183.34  family is not eligible for a consumer support grant if their 
183.35  income is at a level where they are required to pay a parental 
183.36  fee under sections 252.27, 256B.055, subdivision 12, and 256B.14 
184.1   and rules adopted under those sections for medical assistance 
184.2   services to a disabled child living with at least one parent.  
184.3      (d) The commissioner may limit the participation of nursing 
184.4   facility residents, residents of intermediate care facilities 
184.5   for persons with mental retardation (ICFs/MR), and the 
184.6   recipients of services from federal waiver programs in the 
184.7   consumer support grant program if the participation of these 
184.8   individuals will result in an increase in the cost to the state. 
184.9      (e) The commissioner will establish a budgeted 
184.10  appropriation each fiscal year for the consumer support grant 
184.11  program.  The number of individuals participating in the program 
184.12  will be adjusted so the total amount allocated to counties does 
184.13  not exceed the amount of the budgeted appropriation.  The 
184.14  budgeted appropriation will be adjusted annually to accommodate 
184.15  changes in demand for the consumer support grants. 
184.16     Sec. 4.  Minnesota Statutes 1996, section 256.476, 
184.17  subdivision 4, is amended to read: 
184.18     Subd. 4.  [SUPPORT GRANTS; CRITERIA AND LIMITATIONS.] (a) A 
184.19  county board may choose to participate in the consumer support 
184.20  grant program.  If a county board chooses to participate in the 
184.21  program, the local agency shall establish written procedures and 
184.22  criteria to determine the amount and use of support grants.  
184.23  These procedures must include, at least, the availability of 
184.24  respite care, assistance with daily living, and adaptive aids.  
184.25  The local agency may establish monthly or annual maximum amounts 
184.26  for grants and procedures where exceptional resources may be 
184.27  required to meet the health and safety needs of the person on a 
184.28  time-limited basis, however, the total amount awarded to each 
184.29  individual may not exceed the limits established in subdivision 
184.30  5, paragraph (f). 
184.31     (b) Support grants to a person or a person's family may 
184.32  will be provided through a monthly subsidy or lump sum payment 
184.33  basis and be in the form of cash, voucher, or direct county 
184.34  payment to vendor.  Support grant amounts must be determined by 
184.35  the local agency.  Each service and item purchased with a 
184.36  support grant must meet all of the following criteria:  
185.1      (1) it must be over and above the normal cost of caring for 
185.2   the person if the person did not have functional limitations; 
185.3      (2) it must be directly attributable to the person's 
185.4   functional limitations; 
185.5      (3) it must enable the person or the person's family to 
185.6   delay or prevent out-of-home placement of the person; and 
185.7      (4) it must be consistent with the needs identified in the 
185.8   service plan, when applicable. 
185.9      (c) Items and services purchased with support grants must 
185.10  be those for which there are no other public or private funds 
185.11  available to the person or the person's family.  Fees assessed 
185.12  to the person or the person's family for health and human 
185.13  services are not reimbursable through the grant. 
185.14     (d) In approving or denying applications, the local agency 
185.15  shall consider the following factors:  
185.16     (1) the extent and areas of the person's functional 
185.17  limitations; 
185.18     (2) the degree of need in the home environment for 
185.19  additional support; and 
185.20     (3) the potential effectiveness of the grant to maintain 
185.21  and support the person in the family environment or the person's 
185.22  own home. 
185.23     (e) At the time of application to the program or screening 
185.24  for other services, the person or the person's family shall be 
185.25  provided sufficient information to ensure an informed choice of 
185.26  alternatives by the person, the person's legal representative, 
185.27  if any, or the person's family.  The application shall be made 
185.28  to the local agency and shall specify the needs of the person 
185.29  and family, the form and amount of grant requested, the items 
185.30  and services to be reimbursed, and evidence of eligibility for 
185.31  medical assistance or alternative care program. 
185.32     (f) Upon approval of an application by the local agency and 
185.33  agreement on a support plan for the person or person's family, 
185.34  the local agency shall make grants to the person or the person's 
185.35  family.  The grant shall be in an amount for the direct costs of 
185.36  the services or supports outlined in the service agreement.  
186.1      (g) Reimbursable costs shall not include costs for 
186.2   resources already available, such as special education classes, 
186.3   day training and habilitation, case management, other services 
186.4   to which the person is entitled, medical costs covered by 
186.5   insurance or other health programs, or other resources usually 
186.6   available at no cost to the person or the person's family. 
186.7      (h) The state of Minnesota, the county boards participating 
186.8   in the consumer support grant program, or the agencies acting on 
186.9   behalf of the county boards in the implementation and 
186.10  administration of the consumer support grant program shall not 
186.11  be liable for damages, injuries, or liabilities sustained 
186.12  through the purchase of support by the individual, the 
186.13  individual's family, or the authorized representative under this 
186.14  section with funds received through the consumer support grant 
186.15  program.  Liabilities include but are not limited to:  workers' 
186.16  compensation liability, the Federal Insurance Contributions Act 
186.17  (FICA), or the Federal Unemployment Tax Act (FUTA). 
186.18     Sec. 5.  Minnesota Statutes 1996, section 256.476, 
186.19  subdivision 5, is amended to read: 
186.20     Subd. 5.  [REIMBURSEMENT, ALLOCATIONS, AND REPORTING.] (a) 
186.21  For the purpose of transferring persons to the consumer support 
186.22  grant program from specific programs or services, such as the 
186.23  developmental disability family support program and alternative 
186.24  care program, personal care attendant, home health aide, or 
186.25  nursing facility services, the amount of funds transferred by 
186.26  the commissioner between the developmental disability family 
186.27  support program account, the alternative care account, the 
186.28  medical assistance account, or the consumer support grant 
186.29  account shall be based on each county's participation in 
186.30  transferring persons to the consumer support grant program from 
186.31  those programs and services. 
186.32     (b) At the beginning of each fiscal year, county 
186.33  allocations for consumer support grants shall be based on: 
186.34     (1) the number of persons to whom the county board expects 
186.35  to provide consumer supports grants; 
186.36     (2) their eligibility for current program and services; 
187.1      (3) the amount of nonfederal dollars expended on those 
187.2   individuals for those programs and services; or 
187.3      (4) in situations where an individual is unable to obtain 
187.4   the support needed from the program of origination due to the 
187.5   unavailability of service providers at the time or the location 
187.6   where the supports are needed, the allocation will be based on 
187.7   the county's best estimate of the nonfederal dollars that would 
187.8   have been expended if the services had been available; and 
187.9      (4) (5) projected dates when persons will start receiving 
187.10  grants.  County allocations shall be adjusted periodically by 
187.11  the commissioner based on the actual transfer of persons or 
187.12  service openings, and the nonfederal dollars associated with 
187.13  those persons or service openings, to the consumer support grant 
187.14  program. 
187.15     (c) The amount of funds transferred by the commissioner 
187.16  from the alternative care account and the medical assistance 
187.17  account for an individual may be changed if it is determined by 
187.18  the county or its agent that the individual's need for support 
187.19  has changed. 
187.20     (d) The authority to utilize funds transferred to the 
187.21  consumer support grant account for the purposes of implementing 
187.22  and administering the consumer support grant program will not be 
187.23  limited or constrained by the spending authority provided to the 
187.24  program of origination. 
187.25     (e) The commissioner shall use up to five percent of each 
187.26  county's allocation, as adjusted, for payments to that county 
187.27  for administrative expenses, to be paid as a proportionate 
187.28  addition to reported direct service expenditures. 
187.29     (d) (f) Except as provided below, the county allocation for 
187.30  each individual or individual's family cannot exceed 80 percent 
187.31  of the total nonfederal dollars expended on the individual by 
187.32  the program of origination except for the developmental 
187.33  disabilities family support grant program which can be approved 
187.34  up to 100 percent of the nonfederal dollars and in situations as 
187.35  described in paragraph (b), clause (4).  In situations where 
187.36  exceptional need exists or the individual's need for support 
188.1   increases, up to 100 percent of the nonfederal dollars expended 
188.2   may be allocated to the county.  Allocations that exceed 80 
188.3   percent of the nonfederal dollars expended on the individual by 
188.4   the program of origination must be approved by the 
188.5   commissioner.  The remainder of the amount expended on the 
188.6   individual by the program of origination will be used in the 
188.7   following proportions:  50 percent will be made available to the 
188.8   consumer support grant program and participating counties for 
188.9   consumer training, resource development, and other costs, and 
188.10  ten percent will be returned to the state general fund. 
188.11     (g) The commissioner may recover, suspend, or withhold 
188.12  payments if the county board, local agency, or grantee does not 
188.13  comply with the requirements of this section. 
188.14     Sec. 6.  Minnesota Statutes 1996, section 256B.0911, 
188.15  subdivision 7, is amended to read: 
188.16     Subd. 7.  [REIMBURSEMENT FOR CERTIFIED NURSING FACILITIES.] 
188.17  (a) Medical assistance reimbursement for nursing facilities 
188.18  shall be authorized for a medical assistance recipient only if a 
188.19  preadmission screening has been conducted prior to admission or 
188.20  the local county agency has authorized an exemption.  Medical 
188.21  assistance reimbursement for nursing facilities shall not be 
188.22  provided for any recipient who the local screener has determined 
188.23  does not meet the level of care criteria for nursing facility 
188.24  placement or, if indicated, has not had a level II PASARR 
188.25  evaluation completed unless an admission for a recipient with 
188.26  mental illness is approved by the local mental health authority 
188.27  or an admission for a recipient with mental retardation or 
188.28  related condition is approved by the state mental retardation 
188.29  authority.  The county preadmission screening team may deny 
188.30  certified nursing facility admission using the level of care 
188.31  criteria established under section 144.0721 and deny medical 
188.32  assistance reimbursement for certified nursing facility care.  
188.33  Persons receiving care in a certified nursing facility or 
188.34  certified boarding care home who are reassessed by the 
188.35  commissioner of health pursuant to section 144.0722 and 
188.36  determined to no longer meet the level of care criteria for a 
189.1   certified nursing facility or certified boarding care home may 
189.2   no longer remain a resident in the certified nursing facility or 
189.3   certified boarding care home and must be relocated to the 
189.4   community if the persons were admitted on or after July 1, 1996 
189.5   1997.  
189.6      (b) Residents who are reassessed and determined to no 
189.7   longer meet the level of care criteria for a certified nursing 
189.8   facility or certified boarding care home may ask for a 
189.9   reconsideration of their case mix assessment under section 
189.10  144.0722.  If the case mix reconsideration is not timely 
189.11  requested, or if the case mix classification is upheld by the 
189.12  commissioner of health, the commissioner of human services shall 
189.13  issue a notice of discharge to the resident.  A resident subject 
189.14  to discharge under this subdivision is entitled to an appeal of 
189.15  the discharge under section 256.045, subdivision 3.  The sole 
189.16  issue in such an appeal is whether the resident can demonstrate 
189.17  extraordinary circumstances which would render discharge a 
189.18  serious threat to the health and safety of the resident.  
189.19  Extraordinary circumstances shall include but are not limited to:
189.20     (1) the absence or inaccessibility of suitable community 
189.21  alternatives; 
189.22     (2) contravening family circumstances; or 
189.23     (3) protective service issues.  
189.24     (c) Persons receiving services under section 256B.0913, 
189.25  subdivisions 1 to 14, or 256B.0915 who are reassessed and found 
189.26  to not meet the level of care criteria for admission to a 
189.27  certified nursing facility or certified boarding care home may 
189.28  no longer receive these services if persons were admitted to the 
189.29  program on or after July 1, 1996 1997.  Reassessed individuals 
189.30  ineligible for services under section 256B.0913, subdivisions 1 
189.31  to 14, or 256B.0915, are entitled to an appeal under section 
189.32  256.045, subdivision 3.  The commissioner shall make a request 
189.33  to the health care financing administration for a waiver 
189.34  allowing screening team approval of Medicaid payments for 
189.35  certified nursing facility care.  An individual has a choice and 
189.36  makes the final decision between nursing facility placement and 
190.1   community placement after the screening team's recommendation, 
190.2   except as provided in paragraphs (b) and (c).  
190.3      (b) (d) The local county mental health authority or the 
190.4   state mental retardation authority under Public Law Numbers 
190.5   100-203 and 101-508 may prohibit admission to a nursing 
190.6   facility, if the individual does not meet the nursing facility 
190.7   level of care criteria or needs specialized services as defined 
190.8   in Public Law Numbers 100-203 and 101-508.  For purposes of this 
190.9   section, "specialized services" for a person with mental 
190.10  retardation or a related condition means "active treatment" as 
190.11  that term is defined in Code of Federal Regulations, title 42, 
190.12  section 483.440(a)(1). 
190.13     (c) (e) Upon the receipt by the commissioner of approval by 
190.14  the Secretary of Health and Human Services of the waiver 
190.15  requested under paragraph (a), the local screener shall deny 
190.16  medical assistance reimbursement for nursing facility care for 
190.17  an individual whose long-term care needs can be met in a 
190.18  community-based setting and whose cost of community-based home 
190.19  care services is less than 75 percent of the average payment for 
190.20  nursing facility care for that individual's case mix 
190.21  classification, and who is either: 
190.22     (i) a current medical assistance recipient being screened 
190.23  for admission to a nursing facility; or 
190.24     (ii) an individual who would be eligible for medical 
190.25  assistance within 180 days of entering a nursing facility and 
190.26  who meets a nursing facility level of care. 
190.27     (d) (f) Appeals from the screening team's recommendation or 
190.28  the county agency's final decision shall be made according to 
190.29  section 256.045, subdivision 3. 
190.30     Sec. 7.  Minnesota Statutes 1996, section 256B.0913, 
190.31  subdivision 5, is amended to read: 
190.32     Subd. 5.  [SERVICES COVERED UNDER ALTERNATIVE CARE.] (a) 
190.33  Alternative care funding may be used for payment of costs of: 
190.34     (1) adult foster care; 
190.35     (2) adult day care; 
190.36     (3) home health aide; 
191.1      (4) homemaker services; 
191.2      (5) personal care; 
191.3      (6) case management; 
191.4      (7) respite care; 
191.5      (8) assisted living; 
191.6      (9) residential care services; 
191.7      (10) care-related supplies and equipment; 
191.8      (11) meals delivered to the home; 
191.9      (12) transportation; 
191.10     (13) skilled nursing; 
191.11     (14) chore services; 
191.12     (15) companion services; 
191.13     (16) nutrition services; 
191.14     (17) training for direct informal caregivers; and 
191.15     (18) telemedicine devices to monitor recipients in their 
191.16  own homes as an alternative to hospital care, nursing home care, 
191.17  or home visits. 
191.18     (b) The county agency must ensure that the funds are used 
191.19  only to supplement and not supplant services available through 
191.20  other public assistance or services programs. 
191.21     (c) Unless specified in statute, the service standards for 
191.22  alternative care services shall be the same as the service 
191.23  standards defined in the elderly waiver.  Persons or agencies 
191.24  must be employed by or under a contract with the county agency 
191.25  or the public health nursing agency of the local board of health 
191.26  in order to receive funding under the alternative care program. 
191.27     (d) The adult foster care rate shall be considered a 
191.28  difficulty of care payment and shall not include room and 
191.29  board.  The adult foster care daily rate shall be negotiated 
191.30  between the county agency and the foster care provider.  The 
191.31  rate established under this section shall not exceed 75 percent 
191.32  of the state average monthly nursing home payment for the case 
191.33  mix classification to which the individual receiving foster care 
191.34  is assigned, and it must allow for other alternative care 
191.35  services to be authorized by the case manager. 
191.36     (e) Personal care services may be provided by a personal 
192.1   care provider organization.  A county agency may contract with a 
192.2   relative of the client to provide personal care services, but 
192.3   must ensure nursing supervision.  Covered personal care services 
192.4   defined in section 256B.0627, subdivision 4, must meet 
192.5   applicable standards in Minnesota Rules, part 9505.0335. 
192.6      (f) A county may use alternative care funds to purchase 
192.7   medical supplies and equipment without prior approval from the 
192.8   commissioner when:  (1) there is no other funding source; (2) 
192.9   the supplies and equipment are specified in the individual's 
192.10  care plan as medically necessary to enable the individual to 
192.11  remain in the community according to the criteria in Minnesota 
192.12  Rules, part 9505.0210, item A; and (3) the supplies and 
192.13  equipment represent an effective and appropriate use of 
192.14  alternative care funds.  A county may use alternative care funds 
192.15  to purchase supplies and equipment from a non-Medicaid certified 
192.16  vendor if the cost for the items is less than that of a Medicaid 
192.17  vendor.  A county is not required to contract with a provider of 
192.18  supplies and equipment if the monthly cost of the supplies and 
192.19  equipment is less than $250.  
192.20     (g) For purposes of this section, residential care services 
192.21  are services which are provided to individuals living in 
192.22  residential care homes.  Residential care homes are currently 
192.23  licensed as board and lodging establishments and are registered 
192.24  with the department of health as providing special services or 
192.25  registered under section 144D.  Residential care services are 
192.26  defined as "supportive services" and "health-related services."  
192.27  "Supportive services" means the provision of up to 24-hour 
192.28  supervision and oversight.  Supportive services includes:  
192.29     (1) transportation, when provided by the residential care 
192.30  center only; 
192.31     (2) socialization, when socialization is part of the plan 
192.32  of care, has specific goals and outcomes established, and is not 
192.33  diversional or recreational in nature; 
192.34     (3) assisting clients in setting up meetings and 
192.35  appointments; 
192.36     (4) assisting clients in setting up medical and social 
193.1   services; 
193.2      (5) providing assistance with personal laundry, such as 
193.3   carrying the client's laundry to the laundry room.  Assistance 
193.4   with personal laundry does not include any laundry, such as bed 
193.5   linen, that is included in the room and board rate.  
193.6   Health-related services are limited to minimal assistance with 
193.7   dressing, grooming, and bathing and providing reminders to 
193.8   residents to take medications that are self-administered or 
193.9   providing storage for medications, if requested.  Individuals 
193.10  receiving residential care services cannot receive both personal 
193.11  care services and residential care services.  
193.12     (h) For the purposes of this section, "assisted living" 
193.13  refers to supportive services provided by a single vendor to 
193.14  clients who reside in the same apartment building of three or 
193.15  more units.  Assisted living services are defined as up to 
193.16  24-hour supervision, and oversight, supportive services as 
193.17  defined in clause (1), individualized home care aide tasks as 
193.18  defined in clause (2), and individualized home management tasks 
193.19  as defined in clause (3) provided to residents of a residential 
193.20  center living in their units or apartments with a full kitchen 
193.21  and bathroom.  A full kitchen includes a stove, oven, 
193.22  refrigerator, food preparation counter space, and a kitchen 
193.23  utensil storage compartment.  Assisted living services must be 
193.24  provided by the management of the residential center or by 
193.25  providers under contract with the management or with the county. 
193.26     (1) Supportive services include:  
193.27     (i) socialization, when socialization is part of the plan 
193.28  of care, has specific goals and outcomes established, and is not 
193.29  diversional or recreational in nature; 
193.30     (ii) assisting clients in setting up meetings and 
193.31  appointments; and 
193.32     (iii) providing transportation, when provided by the 
193.33  residential center only.  
193.34     Individuals receiving assisted living services will not 
193.35  receive both assisted living services and homemaking or personal 
193.36  care services.  Individualized means services are chosen and 
194.1   designed specifically for each resident's needs, rather than 
194.2   provided or offered to all residents regardless of their 
194.3   illnesses, disabilities, or physical conditions.  
194.4      (2) Home care aide tasks means:  
194.5      (i) preparing modified diets, such as diabetic or low 
194.6   sodium diets; 
194.7      (ii) reminding residents to take regularly scheduled 
194.8   medications or to perform exercises; 
194.9      (iii) household chores in the presence of technically 
194.10  sophisticated medical equipment or episodes of acute illness or 
194.11  infectious disease; 
194.12     (iv) household chores when the resident's care requires the 
194.13  prevention of exposure to infectious disease or containment of 
194.14  infectious disease; and 
194.15     (v) assisting with dressing, oral hygiene, hair care, 
194.16  grooming, and bathing, if the resident is ambulatory, and if the 
194.17  resident has no serious acute illness or infectious disease.  
194.18  Oral hygiene means care of teeth, gums, and oral prosthetic 
194.19  devices.  
194.20     (3) Home management tasks means:  
194.21     (i) housekeeping; 
194.22     (ii) laundry; 
194.23     (iii) preparation of regular snacks and meals; and 
194.24     (iv) shopping.  
194.25     Assisted living services as defined in this section shall 
194.26  not be authorized in boarding and lodging establishments 
194.27  licensed according to sections 157.011 and 157.15 to 157.22. 
194.28     (i) For the purposes of this section, reimbursement for 
194.29  assisted living services and residential care services shall be 
194.30  a monthly rate negotiated and authorized by the county agency.  
194.31  The rate shall not exceed the nonfederal share of the greater of 
194.32  either the statewide or any of the geographic groups' weighted 
194.33  average monthly medical assistance nursing facility payment rate 
194.34  of the case mix resident class to which the 180-day eligible 
194.35  client would be assigned under Minnesota Rules, parts 9549.0050 
194.36  to 9549.0059 unless the residential care home is registered 
195.1   under chapter 144D and services are delivered as specified in 
195.2   Minnesota Rules, parts 4668.0002 to 4668.0399 and include 
195.3   24-hour on-site supervision.  For alternative care assisted 
195.4   living projects established under Laws 1988, chapter 689, 
195.5   article 2, section 256, monthly rates may not exceed 65 percent 
195.6   of the greater of either statewide or any of the geographic 
195.7   groups' weighted average monthly medical assistance nursing 
195.8   facility payment rate of the case mix resident class to which 
195.9   the 180-day eligible client would be assigned under Minnesota 
195.10  Rules, parts 9549.0050 to 9549.0059.  The rate may not cover 
195.11  rent and direct food costs. 
195.12     (j) For purposes of this section, companion services are 
195.13  defined as nonmedical care, supervision and oversight, provided 
195.14  to a functionally impaired adult.  Companions may assist the 
195.15  individual with such tasks as meal preparation, laundry and 
195.16  shopping, but do not perform these activities as discrete 
195.17  services.  The provision of companion services does not entail 
195.18  hands-on medical care.  Providers may also perform light 
195.19  housekeeping tasks which are incidental to the care and 
195.20  supervision of the recipient.  This service must be approved by 
195.21  the case manager as part of the care plan.  Companion services 
195.22  must be provided by individuals or nonprofit organizations who 
195.23  are under contract with the local agency to provide the 
195.24  service.  Any person related to the waiver recipient by blood, 
195.25  marriage or adoption cannot be reimbursed under this service.  
195.26  Persons providing companion services will be monitored by the 
195.27  case manager. 
195.28     (k) For purposes of this section, training for direct 
195.29  informal caregivers is defined as a classroom or home course of 
195.30  instruction which may include:  transfer and lifting skills, 
195.31  nutrition, personal and physical cares, home safety in a home 
195.32  environment, stress reduction and management, behavioral 
195.33  management, long-term care decision making, care coordination 
195.34  and family dynamics.  The training is provided to an informal 
195.35  unpaid caregiver of a 180-day eligible client which enables the 
195.36  caregiver to deliver care in a home setting with high levels of 
196.1   quality.  The training must be approved by the case manager as 
196.2   part of the individual care plan.  Individuals, agencies, and 
196.3   educational facilities which provide caregiver training and 
196.4   education will be monitored by the case manager. 
196.5      Sec. 8.  Minnesota Statutes 1996, section 256B.0913, 
196.6   subdivision 15, is amended to read: 
196.7      Subd. 15.  [SERVICE ALLOWANCE FUND AVAILABILITY.] (a) 
196.8   Effective July 1, 1996 1997, the commissioner may use 
196.9   alternative care funds for services to high function class A 
196.10  persons as defined in section 144.0721, subdivision 3, clause 
196.11  (2).  The county alternative care grant allocation will be 
196.12  supplemented with a special allocation amount based on the 
196.13  projected number of eligible high function class A's and 
196.14  computed on the basis of $240 per month per projected eligible 
196.15  person.  Individual monthly expenditures under the service 
196.16  allowance option are permitted to be either greater or less than 
196.17  the amount of $240 per month based on individual need.  County 
196.18  allocations shall be adjusted periodically based on the actual 
196.19  provision of services to high function class A persons.  The 
196.20  allocation will be distributed by a population based formula and 
196.21  shall not exceed the proportion of projected savings made 
196.22  available under section 144.0721, subdivision 3. 
196.23     (b) Counties shall have the option of providing services, 
196.24  cash service allowances, vouchers, or a combination of these 
196.25  options to high function class A persons defined in section 
196.26  144.0721, subdivision 3, clause (2).  High function class A 
196.27  persons may choose services from among the categories of 
196.28  services listed under subdivision 5, except for case management 
196.29  services. 
196.30     (c) If the special allocation under this section to a 
196.31  county is not sufficient to serve all persons who qualify 
196.32  for alternative care services the service allowance, the county 
196.33  is not required to provide any alternative care services to a 
196.34  high function class A person but shall establish a waiting list 
196.35  to provide services as special allocation funding becomes 
196.36  available. 
197.1      Sec. 9.  Minnesota Statutes 1996, section 256B.0915, 
197.2   subdivision 3, is amended to read: 
197.3      Subd. 3.  [LIMITS OF CASES, RATES, REIMBURSEMENT, AND 
197.4   FORECASTING.] (a) The number of medical assistance waiver 
197.5   recipients that a county may serve must be allocated according 
197.6   to the number of medical assistance waiver cases open on July 1 
197.7   of each fiscal year.  Additional recipients may be served with 
197.8   the approval of the commissioner. 
197.9      (b) The monthly limit for the cost of waivered services to 
197.10  an individual waiver client shall be the statewide average 
197.11  payment rate of the case mix resident class to which the waiver 
197.12  client would be assigned under the medical assistance case mix 
197.13  reimbursement system.  If medical supplies and equipment or 
197.14  adaptations are or will be purchased for an elderly waiver 
197.15  services recipient, the costs may be prorated on a monthly basis 
197.16  throughout the year in which they are purchased.  If the monthly 
197.17  cost of a recipient's other waivered services exceeds the 
197.18  monthly limit established in this paragraph, the annual cost of 
197.19  the waivered services shall be determined.  In this event, the 
197.20  annual cost of waivered services shall not exceed 12 times the 
197.21  monthly limit calculated in this paragraph.  The statewide 
197.22  average payment rate is calculated by determining the statewide 
197.23  average monthly nursing home rate, effective July 1 of the 
197.24  fiscal year in which the cost is incurred, less the statewide 
197.25  average monthly income of nursing home residents who are age 65 
197.26  or older, and who are medical assistance recipients in the month 
197.27  of March of the previous state fiscal year.  The annual cost 
197.28  divided by 12 of elderly or disabled waivered services for a 
197.29  person who is a nursing facility resident at the time of 
197.30  requesting a determination of eligibility for elderly or 
197.31  disabled waivered services shall not exceed the monthly payment 
197.32  for the resident class assigned under Minnesota Rules, parts 
197.33  9549.0050 to 9549.0059, for that resident in the nursing 
197.34  facility where the resident currently resides.  The following 
197.35  costs must be included in determining the total monthly costs 
197.36  for the waiver client: 
198.1      (1) cost of all waivered services, including extended 
198.2   medical supplies and equipment; and 
198.3      (2) cost of skilled nursing, home health aide, and personal 
198.4   care services reimbursable by medical assistance.  
198.5      (c) Medical assistance funding for skilled nursing 
198.6   services, private duty nursing, home health aide, and personal 
198.7   care services for waiver recipients must be approved by the case 
198.8   manager and included in the individual care plan. 
198.9      (d) For both the elderly waiver and the nursing facility 
198.10  disabled waiver, a county may purchase extended supplies and 
198.11  equipment without prior approval from the commissioner when 
198.12  there is no other funding source and the supplies and equipment 
198.13  are specified in the individual's care plan as medically 
198.14  necessary to enable the individual to remain in the community 
198.15  according to the criteria in Minnesota Rules, part 9505.0210, 
198.16  items A and B.  A county is not required to contract with a 
198.17  provider of supplies and equipment if the monthly cost of the 
198.18  supplies and equipment is less than $250.  
198.19     (e) For the fiscal year beginning on July 1, 1993, and for 
198.20  subsequent fiscal years, the commissioner of human services 
198.21  shall not provide automatic annual inflation adjustments for 
198.22  home and community-based waivered services.  The commissioner of 
198.23  finance shall include as a budget change request in each 
198.24  biennial detailed expenditure budget submitted to the 
198.25  legislature under section 16A.11, annual adjustments in 
198.26  reimbursement rates for home and community-based waivered 
198.27  services, based on the forecasted percentage change in the Home 
198.28  Health Agency Market Basket of Operating Costs, for the fiscal 
198.29  year beginning July 1, compared to the previous fiscal year, 
198.30  unless otherwise adjusted by statute.  The Home Health Agency 
198.31  Market Basket of Operating Costs is published by Data Resources, 
198.32  Inc.  The forecast to be used is the one published for the 
198.33  calendar quarter beginning January 1, six months prior to the 
198.34  beginning of the fiscal year for which rates are set.  The adult 
198.35  foster care rate shall be considered a difficulty of care 
198.36  payment and shall not include room and board. 
199.1      (f) The adult foster care daily rate for the elderly and 
199.2   disabled waivers shall be negotiated between the county agency 
199.3   and the foster care provider.  The rate established under this 
199.4   section shall not exceed the state average monthly nursing home 
199.5   payment for the case mix classification to which the individual 
199.6   receiving foster care is assigned; the rate must allow for other 
199.7   waiver and medical assistance home care services to be 
199.8   authorized by the case manager. 
199.9      (g) The assisted living and residential care service rates 
199.10  for elderly and community alternatives for disabled individuals 
199.11  (CADI) waivers shall be made to the vendor as a monthly rate 
199.12  negotiated with the county agency.  The rate shall not exceed 
199.13  the nonfederal share of the greater of either the statewide or 
199.14  any of the geographic groups' weighted average monthly medical 
199.15  assistance nursing facility payment rate of the case mix 
199.16  resident class to which the elderly or disabled client would be 
199.17  assigned under Minnesota Rules, parts 9549.0050 to 
199.18  9549.0059 unless the residential care home is registered under 
199.19  chapter 144D and services are delivered as specified in 
199.20  Minnesota Rules, parts 4668.0002 to 4668.0399, and include 
199.21  24-hour on-site supervision.  For alternative care assisted 
199.22  living projects established under Laws 1988, chapter 689, 
199.23  article 2, section 256, monthly rates may not exceed 65 percent 
199.24  of the greater of either the statewide or any of the geographic 
199.25  groups' weighted average monthly medical assistance nursing 
199.26  facility payment rate for the case mix resident class to which 
199.27  the elderly or disabled client would be assigned under Minnesota 
199.28  Rules, parts 9549.0050 to 9549.0059.  The rate may not cover 
199.29  direct rent or food costs. 
199.30     (h) The county shall negotiate individual rates with 
199.31  vendors and may be reimbursed for actual costs up to the greater 
199.32  of the county's current approved rate or 60 percent of the 
199.33  maximum rate in fiscal year 1994 and 65 percent of the maximum 
199.34  rate in fiscal year 1995 for each service within each program. 
199.35     (i) On July 1, 1993, the commissioner shall increase the 
199.36  maximum rate for home-delivered meals to $4.50 per meal. 
200.1      (j) Reimbursement for the medical assistance recipients 
200.2   under the approved waiver shall be made from the medical 
200.3   assistance account through the invoice processing procedures of 
200.4   the department's Medicaid Management Information System (MMIS), 
200.5   only with the approval of the client's case manager.  The budget 
200.6   for the state share of the Medicaid expenditures shall be 
200.7   forecasted with the medical assistance budget, and shall be 
200.8   consistent with the approved waiver.  
200.9      (k) Beginning July 1, 1991, the state shall reimburse 
200.10  counties according to the payment schedule in section 256.025 
200.11  for the county share of costs incurred under this subdivision on 
200.12  or after January 1, 1991, for individuals who are receiving 
200.13  medical assistance. 
200.14     Sec. 10.  Minnesota Statutes 1996, section 256B.0915, is 
200.15  amended by adding a subdivision to read: 
200.16     Subd. 7.  [PREPAID ELDERLY WAIVER SERVICES.] An individual 
200.17  for whom a prepaid health plan is liable for nursing home 
200.18  services or elderly waiver services according to section 
200.19  256B.69, subdivision 6a, is not eligible to receive 
200.20  county-administered elderly waiver services under this section. 
200.21     Sec. 11.  Minnesota Statutes 1996, section 256B.421, 
200.22  subdivision 1, is amended to read: 
200.23     Subdivision 1.  [SCOPE.] For the purposes of this section 
200.24  and sections 256B.41, 256B.411, 256B.431, 256B.432, 
200.25  256B.433, 256B.434, 256B.435, 256B.47, 256B.48, 256B.50, and 
200.26  256B.502, the following terms and phrases shall have the meaning 
200.27  given to them. 
200.28     Sec. 12.  Minnesota Statutes 1996, section 256B.431, is 
200.29  amended by adding a subdivision to read: 
200.30     Subd. 2s.  [PAYMENTS IN EXCESS OF MEDICAL ASSISTANCE RATE.] 
200.31  (a) For rate years beginning on or after July 1, 1997, a nursing 
200.32  facility that receives a per diem payment in excess of the 
200.33  medical assistance payment rate which is related to routine 
200.34  nursing facility care, and is from a third party through a 
200.35  contractual managed care arrangement, must offset to the nursing 
200.36  category on the provider's cost report either:  
201.1      (i) 90 percent of the per diem payment in excess of the 
201.2   medical assistance payment rate; or 
201.3      (ii) the directly identified costs associated with the per 
201.4   diem payment in excess of the medical assistance rate.  
201.5      (b) The cost of nonroutine nursing facility care shall be 
201.6   determined using the medical assistance allowed charge for each 
201.7   unit of nonroutine service provided to the nursing facility 
201.8   resident while the resident is covered under the managed care 
201.9   contract. 
201.10     Sec. 13.  Minnesota Statutes 1996, section 256B.431, 
201.11  subdivision 25, is amended to read: 
201.12     Subd. 25.  [CHANGES TO NURSING FACILITY REIMBURSEMENT 
201.13  BEGINNING JULY 1, 1995.] The nursing facility reimbursement 
201.14  changes in paragraphs (a) to (h) shall apply in the sequence 
201.15  specified to Minnesota Rules, parts 9549.0010 to 9549.0080, and 
201.16  this section, beginning July 1, 1995. 
201.17     (a) The eight-cent adjustment to care-related rates in 
201.18  subdivision 22, paragraph (e), shall no longer apply. 
201.19     (b) For rate years beginning on or after July 1, 1995, the 
201.20  commissioner shall limit a nursing facility's allowable 
201.21  operating per diem for each case mix category for each rate year 
201.22  as in clauses (1) to (3). 
201.23     (1) For the rate year beginning July 1, 1995, the 
201.24  commissioner shall group nursing facilities into two groups, 
201.25  freestanding and nonfreestanding, within each geographic group, 
201.26  using their operating cost per diem for the case mix A 
201.27  classification.  A nonfreestanding nursing facility is a nursing 
201.28  facility whose other operating cost per diem is subject to the 
201.29  hospital attached, short length of stay, or the rule 80 limits.  
201.30  All other nursing facilities shall be considered freestanding 
201.31  nursing facilities.  The commissioner shall then array all 
201.32  nursing facilities in each grouping by their allowable case mix 
201.33  A operating cost per diem.  In calculating a nursing facility's 
201.34  operating cost per diem for this purpose, the commissioner shall 
201.35  exclude the raw food cost per diem related to providing special 
201.36  diets that are based on religious beliefs, as determined in 
202.1   subdivision 2b, paragraph (h).  For those nursing facilities in 
202.2   each grouping whose case mix A operating cost per diem: 
202.3      (i) is at or below the median minus 1.0 standard deviation 
202.4   of the array, the commissioner shall limit the nursing 
202.5   facility's allowable operating cost per diem for each case mix 
202.6   category to the lesser of the prior reporting year's allowable 
202.7   operating cost per diems plus the inflation factor as 
202.8   established in paragraph (f), clause (2), increased by six 
202.9   percentage points, or the current reporting year's corresponding 
202.10  allowable operating cost per diem; 
202.11     (ii) is between minus .5 standard deviation and minus 1.0 
202.12  standard deviation below the median of the array, the 
202.13  commissioner shall limit the nursing facility's allowable 
202.14  operating cost per diem for each case mix category to the lesser 
202.15  of the prior reporting year's allowable operating cost per diems 
202.16  plus the inflation factor as established in paragraph (f), 
202.17  clause (2), increased by four percentage points, or the current 
202.18  reporting year's corresponding allowable operating cost per 
202.19  diem; or 
202.20     (iii) is equal to or above minus .5 standard deviation 
202.21  below the median of the array, the commissioner shall limit the 
202.22  nursing facility's allowable operating cost per diem for each 
202.23  case mix category to the lesser of the prior reporting year's 
202.24  allowable operating cost per diems plus the inflation factor as 
202.25  established in paragraph (f), clause (2), increased by three 
202.26  percentage points, or the current reporting year's corresponding 
202.27  allowable operating cost per diem. 
202.28     (2) For the rate year beginning on July 1, 1996, the 
202.29  commissioner shall limit the nursing facility's allowable 
202.30  operating cost per diem for each case mix category to the lesser 
202.31  of the prior reporting year's allowable operating cost per diems 
202.32  plus the inflation factor as established in paragraph (f), 
202.33  clause (2), increased by one percentage point or the current 
202.34  reporting year's corresponding allowable operating cost per 
202.35  diems; and 
202.36     (3) For rate years beginning on or after July 1, 1997, the 
203.1   commissioner shall limit the nursing facility's allowable 
203.2   operating cost per diem for each case mix category to the lesser 
203.3   of the reporting year prior to the current reporting year's 
203.4   allowable operating cost per diems plus the inflation factor as 
203.5   established in paragraph (f), clause (2), or the current 
203.6   reporting year's corresponding allowable operating cost per 
203.7   diems. 
203.8      (c) For rate years beginning on July 1, 1995, the 
203.9   commissioner shall limit the allowable operating cost per diems 
203.10  for high cost nursing facilities.  After application of the 
203.11  limits in paragraph (b) to each nursing facility's operating 
203.12  cost per diems, the commissioner shall group nursing facilities 
203.13  into two groups, freestanding or nonfreestanding, within each 
203.14  geographic group.  A nonfreestanding nursing facility is a 
203.15  nursing facility whose other operating cost per diems are 
203.16  subject to hospital attached, short length of stay, or rule 80 
203.17  limits.  All other nursing facilities shall be considered 
203.18  freestanding nursing facilities.  The commissioner shall then 
203.19  array all nursing facilities within each grouping by their 
203.20  allowable case mix A operating cost per diems.  In calculating a 
203.21  nursing facility's operating cost per diem for this purpose, the 
203.22  commissioner shall exclude the raw food cost per diem related to 
203.23  providing special diets that are based on religious beliefs, as 
203.24  determined in subdivision 2b, paragraph (h).  For those nursing 
203.25  facilities in each grouping whose case mix A operating cost per 
203.26  diem exceeds 1.0 standard deviation above the median, the 
203.27  commissioner shall reduce their allowable operating cost per 
203.28  diems by two percent.  For those nursing facilities in each 
203.29  grouping whose case mix A operating cost per diem exceeds 0.5 
203.30  standard deviation above the median but is less than or equal to 
203.31  1.0 standard deviation above the median, the commissioner shall 
203.32  reduce their allowable operating cost per diems by one percent. 
203.33     (d) For rate years beginning on or after July 1, 1996, the 
203.34  commissioner shall limit the allowable operating cost per diems 
203.35  for high cost nursing facilities.  After application of the 
203.36  limits in paragraph (b) to each nursing facility's operating 
204.1   cost per diems, the commissioner shall group nursing facilities 
204.2   into two groups, freestanding or nonfreestanding, within each 
204.3   geographic group.  A nonfreestanding nursing facility is a 
204.4   nursing facility whose other operating cost per diems are 
204.5   subject to hospital attached, short length of stay, or rule 80 
204.6   limits.  All other nursing facilities shall be considered 
204.7   freestanding nursing facilities.  The commissioner shall then 
204.8   array all nursing facilities within each grouping by their 
204.9   allowable case mix A operating cost per diems.  In calculating a 
204.10  nursing facility's operating cost per diem for this purpose, the 
204.11  commissioner shall exclude the raw food cost per diem related to 
204.12  providing special diets that are based on religious beliefs, as 
204.13  determined in subdivision 2b, paragraph (h).  In those nursing 
204.14  facilities in each grouping whose case mix A operating cost per 
204.15  diem exceeds 1.0 standard deviation above the median, the 
204.16  commissioner shall reduce their allowable operating cost per 
204.17  diems by three percent.  For those nursing facilities in each 
204.18  grouping whose case mix A operating cost per diem exceeds 0.5 
204.19  standard deviation above the median but is less than or equal to 
204.20  1.0 standard deviation above the median, the commissioner shall 
204.21  reduce their allowable operating cost per diems by two percent.  
204.22  For the rate year beginning on or after July 1, 1997, the 
204.23  commissioner shall modify the high cost facility limits 
204.24  methodology described in this paragraph as follows:  For those 
204.25  nursing facilities in each grouping whose case mix A operating 
204.26  cost per diem exceeds 1.0 standard deviation above the median, 
204.27  the commissioner shall reduce their allowable operating cost per 
204.28  diems by four percent.  For those nursing facilities in each 
204.29  grouping whose case mix A operating cost per diem exceeds 0.3 
204.30  standard deviation above the median, but is less than or equal 
204.31  to the 1.0 standard deviation above the median, the commissioner 
204.32  shall reduce their allowable operating cost per diems by three 
204.33  percent.  However, in no case shall a nursing facility's 
204.34  operating cost per diems be reduced below its grouping's limit 
204.35  established at 0.3 standard deviations above the median. 
204.36     (e) For rate years beginning on or after July 1, 1995, the 
205.1   commissioner shall determine a nursing facility's efficiency 
205.2   incentive by first computing the allowable difference, which is 
205.3   the lesser of $4.50 or the amount by which the facility's other 
205.4   operating cost limit exceeds its nonadjusted other operating 
205.5   cost per diem for that rate year.  For rate years beginning on 
205.6   or after July 1, 1997, in determining the amount of the 
205.7   efficiency incentive for hospital attached nursing facilities, 
205.8   the commissioner must use the other operating cost limit 
205.9   applicable to the freestanding nursing facilities in their same 
205.10  geographic group.  The commissioner shall compute the efficiency 
205.11  incentive by: 
205.12     (1) subtracting the allowable difference from $4.50 and 
205.13  dividing the result by $4.50; 
205.14     (2) multiplying 0.20 by the ratio resulting from clause 
205.15  (1), and then; 
205.16     (3) adding 0.50 to the result from clause (2); and 
205.17     (4) multiplying the result from clause (3) times the 
205.18  allowable difference. 
205.19     The nursing facility's efficiency incentive payment shall 
205.20  be the lesser of $2.25 or the product obtained in clause (4). 
205.21     (f) For rate years beginning on or after July 1, 1995, the 
205.22  forecasted price index for a nursing facility's allowable 
205.23  operating cost per diems shall be determined under clauses (1) 
205.24  to (3) using the change in the Consumer Price Index-All Items 
205.25  (United States city average) (CPI-U) or the change in the 
205.26  Nursing Home Market Basket, both as forecasted by Data Resources 
205.27  Inc., whichever is applicable.  The commissioner shall use the 
205.28  indices as forecasted in the fourth quarter of the calendar year 
205.29  preceding the rate year, subject to subdivision 2l, paragraph 
205.30  (c).  If, as a result of federal legislative or administrative 
205.31  action, the methodology used to calculate the Consumer Price 
205.32  Index-All Items (United States city average) (CPI-U) changes, 
205.33  the commissioner shall develop a conversion factor or other 
205.34  methodology to convert the CPI-U index factor that results from 
205.35  the new methodology to an index factor that approximates, as 
205.36  closely as possible, the index factor that would have resulted 
206.1   from application of the original CPI-U methodology prior to any 
206.2   changes in methodology.  The commissioner shall use the 
206.3   conversion factor or other methodology to calculate an adjusted 
206.4   inflation index.  The adjusted inflation index must be used to 
206.5   calculate payment rates under this section instead of the CPI-U 
206.6   index specified in paragraph (d).  If the commissioner is 
206.7   required to develop an adjusted inflation index, the 
206.8   commissioner shall report to the legislature as part of the next 
206.9   budget submission the fiscal impact of applying this index. 
206.10     (1) The CPI-U forecasted index for allowable operating cost 
206.11  per diems shall be based on the 21-month period from the 
206.12  midpoint of the nursing facility's reporting year to the 
206.13  midpoint of the rate year following the reporting year. 
206.14     (2) The Nursing Home Market Basket forecasted index for 
206.15  allowable operating costs and per diem limits shall be based on 
206.16  the 12-month period between the midpoints of the two reporting 
206.17  years preceding the rate year. 
206.18     (3) For rate years beginning on or after July 1, 1996, the 
206.19  forecasted index for operating cost limits referred to in 
206.20  subdivision 21, paragraph (b), shall be based on the CPI-U for 
206.21  the 12-month period between the midpoints of the two reporting 
206.22  years preceding the rate year. 
206.23     (g) After applying these provisions for the respective rate 
206.24  years, the commissioner shall index these allowable operating 
206.25  costs per diems by the inflation factor provided for in 
206.26  paragraph (f), clause (1), and add the nursing facility's 
206.27  efficiency incentive as computed in paragraph (e). 
206.28     (h) A nursing facility licensed for 302 beds on September 
206.29  30, 1993, that was approved under the moratorium exception 
206.30  process in section 144A.073 for a partial replacement, and 
206.31  completed the replacement project in December 1994, is exempt 
206.32  from paragraphs (b) to (d) for rate years beginning on or after 
206.33  July 1, 1995. 
206.34     (i) Notwithstanding Laws 1996, chapter 451, article 3, 
206.35  section 11, paragraph (h), for the rate years beginning on July 
206.36  1, 1996, July 1, 1997, and July 1, 1998, a nursing facility 
207.1   licensed for 40 beds effective May 1, 1992, with a subsequent 
207.2   increase of 20 Medicare/Medicaid certified beds, effective 
207.3   January 26, 1993, in accordance with an increase in licensure is 
207.4   exempt from paragraphs (b) to (d). 
207.5      Sec. 14.  Minnesota Statutes 1996, section 256B.434, 
207.6   subdivision 3, is amended to read: 
207.7      Subd. 3.  [DURATION AND TERMINATION OF CONTRACTS.] (a) 
207.8   Subject to available resources, the commissioner may begin to 
207.9   execute contracts with nursing facilities November 1, 1995. 
207.10     (b) All contracts entered into under this section are for a 
207.11  term of four years one year.  Either party may terminate a 
207.12  contract effective July 1 of any year by providing written 
207.13  notice to the other party no later than April 1 of that year at 
207.14  any time without cause by providing 30 calendar days advance 
207.15  written notice to the other party.  The decision to terminate a 
207.16  contract is not appealable.  If neither party provides written 
207.17  notice of termination by April 1, the contract is automatically 
207.18  renewed for the next rate year the contract shall be 
207.19  renegotiated for additional one-year terms, for up to a total of 
207.20  four consecutive one-year terms.  The provisions of the contract 
207.21  shall be renegotiated annually by the parties prior to the 
207.22  expiration date of the contract.  The parties may voluntarily 
207.23  renegotiate the terms of the contract at any time by mutual 
207.24  agreement. 
207.25     (c) If a nursing facility fails to comply with the terms of 
207.26  a contract, the commissioner shall provide reasonable notice 
207.27  regarding the breach of contract and a reasonable opportunity 
207.28  for the facility to come into compliance.  If the facility fails 
207.29  to come into compliance or to remain in compliance, the 
207.30  commissioner may terminate the contract.  If a contract is 
207.31  terminated, the contract payment remains in effect for the 
207.32  remainder of the rate year in which the contract was terminated, 
207.33  but in all other respects the provisions of this section do not 
207.34  apply to that facility effective the date the contract is 
207.35  terminated.  The contract shall contain a provision governing 
207.36  the transition back to the cost-based reimbursement system 
208.1   established under section 256B.431, subdivision 25, and 
208.2   Minnesota Rules, parts 9549.0010 to 9549.0080.  A contract 
208.3   entered into under this section may be amended by mutual 
208.4   agreement of the parties. 
208.5      Sec. 15.  Minnesota Statutes 1996, section 256B.434, 
208.6   subdivision 4, is amended to read: 
208.7      Subd. 4.  [ALTERNATE RATES FOR NURSING FACILITIES.] (a) For 
208.8   nursing facilities which have their payment rates determined 
208.9   under this section rather than section 256B.431, subdivision 25, 
208.10  the commissioner shall establish a rate under this subdivision.  
208.11  The nursing facility must enter into a written contract with the 
208.12  commissioner. 
208.13     (b) A nursing facility's case mix payment rate for the 
208.14  first rate year of a facility's contract under this section is 
208.15  the payment rate the facility would have received under section 
208.16  256B.431, subdivision 25. 
208.17     (c) A nursing facility's case mix payment rates for the 
208.18  second and subsequent years of a facility's contract under this 
208.19  section are the previous rate year's contract payment rates plus 
208.20  an inflation adjustment.  The index for the inflation adjustment 
208.21  must be based on the change in the Consumer Price Index-All 
208.22  Items (United States City average) (CPI-U) forecasted by Data 
208.23  Resources, Inc., as forecasted in the fourth quarter of the 
208.24  calendar year preceding the rate year.  The inflation adjustment 
208.25  must be based on the 12-month period from the midpoint of the 
208.26  previous rate year to the midpoint of the rate year for which 
208.27  the rate is being determined.  For the rate year beginning July 
208.28  1, 1998, the nursing facility's prior rate year's payment rate 
208.29  determined under this paragraph shall be reduced by two 
208.30  percentage points before applying the foregoing inflation 
208.31  adjustment. 
208.32     (d) The commissioner may develop additional incentive-based 
208.33  payments of up to five percent above the standard contract rate 
208.34  for achieving outcomes specified in each contract.  The 
208.35  incentive system may be implemented for contract rate years 
208.36  beginning on or after July 1, 1996.  The specified outcomes must 
209.1   be measurable and must be based on criteria to be developed by 
209.2   the commissioner.  The commissioner may establish, for each 
209.3   contract, various levels of achievement within an outcome.  
209.4   After the outcomes have been specified the commissioner shall 
209.5   assign various levels of payment associated with achieving the 
209.6   outcome.  Any incentive-based payment cancels if there is a 
209.7   termination of the contract.  In establishing the specified 
209.8   outcomes and related criteria the commissioner shall consider 
209.9   the following state policy objectives: 
209.10     (1) improved cost effectiveness and quality of life as 
209.11  measured by improved clinical outcomes; 
209.12     (2) successful diversion or discharge to community 
209.13  alternatives; 
209.14     (3) decreased acute care costs; 
209.15     (4) improved consumer satisfaction; 
209.16     (5) the achievement of quality; or 
209.17     (6) any additional outcomes the commissioner finds 
209.18  desirable. 
209.19     Sec. 16.  [256B.435] [NURSING FACILITY CONVERSION 
209.20  DEMONSTRATION PROJECT.] 
209.21     Subdivision 1.  [DEMONSTRATION PROJECT.] The commissioner 
209.22  shall design and implement a process to start July 1, 1998, 
209.23  which will decrease the number of Minnesota nursing facilities 
209.24  participating in the medical assistance program by June 30, 
209.25  2002.  That process must include voluntary nursing facility 
209.26  closures and, as necessary, selective medical assistance 
209.27  decertification of nursing facilities to achieve the goal of 
209.28  approximately 20 fewer nursing facilities.  The total number of 
209.29  licensed nursing home and boarding care home beds participating 
209.30  in the medical assistance program upon completion of the project 
209.31  must decrease by at least 2000 beds.  Nursing facilities subject 
209.32  to this project include those with payment rates determined 
209.33  under sections 256B.431, 256B.434, and 256B.48, subdivision 1a. 
209.34     Subd. 2.  [VOLUNTARY NURSING FACILITY CLOSURES.] (a) For 
209.35  the rate years beginning on or after July 1, 1998, a nursing 
209.36  facility may elect to cease operations as a nursing home or 
210.1   boarding care facility, and apply for technical assistance and 
210.2   incentive payments under this subdivision.  The commissioner 
210.3   shall issue a request for proposal (RFP) by October 1, 1997, 
210.4   outlining the process and criteria for nursing facilities 
210.5   interested in applying to voluntarily close.  A nursing facility 
210.6   seeking to transfer some of its nursing facility beds to another 
210.7   location may be eligible for the incentives under this 
210.8   subdivision provided that:  
210.9      (1) the number of beds closed is at least 70 percent of its 
210.10  capacity; 
210.11     (2) the estimated cost to medical assistance of the 
210.12  transferred beds, as determined by the commissioner, is at least 
210.13  budget neutral; and 
210.14     (3) other total closure proposals are given higher priority.
210.15     (b) The commissioner shall make available technical support 
210.16  to facilitate a nursing facility seeking voluntary closure under 
210.17  this section.  Department technical support shall include 
210.18  assistance in:  general transition planning; coordination of 
210.19  discharge planning and resident relocation efforts in 
210.20  coordination with the affected county and nursing facility; 
210.21  identification of alternative community resources and placements 
210.22  for displaced facility residents; assessing potential alternate 
210.23  uses of the facility's capital assets; and identifying possible 
210.24  financing for facility renovations consistent with identified 
210.25  alternative uses. 
210.26     (c) The commissioner and the nursing facility may negotiate 
210.27  a closure incentive payment of up to $1,000 per bed for a 
210.28  nursing facility which agrees to delicense all or substantially 
210.29  all of its licensed nursing home and boarding care home beds.  
210.30  The nursing facility's proposal must include a plan for 
210.31  cost-effective alternative placement of its residents.  The 
210.32  provider's proposal must also indicate the intended purpose of 
210.33  the incentive payment.  If the intended use of the incentive 
210.34  payment is for facility renovations that will result in another 
210.35  public use or for the promotion of another community 
210.36  alternative, the commissioner must give higher priority to those 
211.1   proposals.  Once established, the commissioner's determination 
211.2   and incentive payment are not appealable.  The commissioner must 
211.3   not exceed the biennial appropriation for this purpose.  Nothing 
211.4   shall preclude a nursing facility from electing to voluntarily 
211.5   close without benefit of the incentive payments and technical 
211.6   support and assistance set forth in this subdivision. 
211.7      Subd. 3.  [SELECTIVE DECERTIFICATION OF NURSING 
211.8   FACILITIES.] (a) Beginning July 1, 1999, the commissioner shall 
211.9   implement a process to reduce the number of nursing facility 
211.10  beds through selective decertification in order to achieve the 
211.11  goal of approximately 20 fewer nursing facilities participating 
211.12  in the medical assistance program by June 30, 2002.  The 
211.13  mechanism to be utilized to implement the selective 
211.14  decertification process will be by nonrenewal of provider 
211.15  agreements.  Notwithstanding section 256B.04, subdivisions 4 and 
211.16  12, and Minnesota Rules, part 9505.0195, the commissioner may 
211.17  terminate provider agreements.  The commissioner, with 
211.18  cooperation from the commissioner of health, shall develop any 
211.19  necessary federal waiver requests to permit a selective medical 
211.20  assistance decertification process.  The commissioners should 
211.21  submit any needed federal waiver requests by February 1, 1998. 
211.22     (b) In developing the waiver and decertification process, 
211.23  the commissioner shall develop criteria that will be used to 
211.24  define which nursing facilities to decertify.  The commissioner 
211.25  shall consider using the following factors in developing 
211.26  criteria:  
211.27     (1) availability and capacity of cost-effective community 
211.28  alternatives; 
211.29     (2) future demographics and bed supply for county; 
211.30     (3) high proportion of case mix A residents; 
211.31     (4) low case mix score; 
211.32     (5) high case mix A operating cost per diem; 
211.33     (6) type of licensure; 
211.34     (7) percent of total and medical assistance occupancy; 
211.35     (8) a measure of care quality; and 
211.36     (9) any other factor deemed relevant by the commissioner.  
212.1      (c) In determining the nursing facility decertification 
212.2   criteria to be used, the commissioner shall establish an 
212.3   advisory committee.  The advisory committee's composition shall 
212.4   include consumers or their representatives, counties, 
212.5   legislators, and providers or their representatives, as well as 
212.6   representatives of the departments of health and human services. 
212.7      (d) The commissioner shall recommend to the 1999 
212.8   legislature adoption of a process and criteria for determining 
212.9   the schedule by which nursing facilities will be decertified 
212.10  beginning in fiscal year 2000 under this subdivision. 
212.11     Subd. 4.  [RULEMAKING EXEMPTION.] The commissioner is 
212.12  exempt from all rulemaking requirements in chapter 14 for the 
212.13  demonstration project under this section. 
212.14     Subd. 5.  [LEGISLATIVE REPORTS.] The commissioner shall 
212.15  report annually to the legislature every February, from 1999 to 
212.16  2003, on the status and progress of the demonstration project 
212.17  and shall make recommendations as needed to improve the 
212.18  project's effectiveness. 
212.19     Sec. 17.  Minnesota Statutes 1996, section 256B.69, 
212.20  subdivision 4, is amended to read: 
212.21     Subd. 4.  [LIMITATION OF CHOICE.] The commissioner shall 
212.22  develop criteria to determine when limitation of choice may be 
212.23  implemented in the experimental counties.  The criteria shall 
212.24  ensure that all eligible individuals in the county have 
212.25  continuing access to the full range of medical assistance 
212.26  services as specified in subdivision 6.  The commissioner shall 
212.27  exempt the following persons from participation in the project, 
212.28  in addition to those who do not meet the criteria for limitation 
212.29  of choice:  (1) persons eligible for medical assistance 
212.30  according to section 256B.055, subdivision 1; (2) persons 
212.31  eligible for medical assistance due to blindness or disability 
212.32  as determined by the social security administration or the state 
212.33  medical review team, unless:  (i) they are 65 years of age or 
212.34  older, or (ii) they reside in Itasca county or they reside in a 
212.35  county in which the commissioner conducts a pilot project under 
212.36  a waiver granted pursuant to section 1115 of the Social Security 
213.1   Act; (3) recipients who currently have private coverage through 
213.2   a health maintenance organization; (4) recipients who are 
213.3   eligible for medical assistance by spending down excess income 
213.4   for medical expenses other than the nursing facility per diem 
213.5   expense; (5) recipients who receive benefits under the Refugee 
213.6   Assistance Program, established under United States Code, title 
213.7   8, section 1522(e); (6) children who are both determined to be 
213.8   severely emotionally disturbed and receiving case management 
213.9   services according to section 256B.0625, subdivision 20; and (7) 
213.10  adults under age 65 who are both determined to be seriously and 
213.11  persistently mentally ill and received case management services 
213.12  according to section 256B.0625, subdivision 20.  Children under 
213.13  age 21 who are in foster placement may enroll in the project on 
213.14  an elective basis.  Individuals excluded under clauses (6) and 
213.15  (7) may choose to enroll on an elective basis.  The commissioner 
213.16  may allow persons with a one-month spenddown who are otherwise 
213.17  eligible to enroll to voluntarily enroll or remain enrolled, if 
213.18  they elect to prepay their monthly spenddown to the state.  
213.19  Effective July 1, 1999, the commissioner may require individuals 
213.20  who are eligible for medical assistance on a spenddown basis to 
213.21  enroll in the prepaid medical assistance program and may require 
213.22  that the spenddown amount be paid to the state, county, or 
213.23  health plan as a condition of eligibility for medical 
213.24  assistance.  The commissioner shall request any necessary 
213.25  federal authority to require the enrollment of individuals with 
213.26  spenddowns into the prepaid medical assistance demonstration 
213.27  project.  Beginning on or after July 1, 1997, the commissioner 
213.28  may require those individuals to enroll in the prepaid medical 
213.29  assistance program who otherwise would have been excluded under 
213.30  clauses (1) and (3) and under Minnesota Rules, part 9500.1452, 
213.31  subpart 2, items H, K, and L.  Before limitation of choice is 
213.32  implemented, eligible individuals shall be notified and after 
213.33  notification, shall be allowed to choose only among 
213.34  demonstration providers.  The commissioner may assign an 
213.35  individual with private coverage through a health maintenance 
213.36  organization, to the same health maintenance organization for 
214.1   medical assistance coverage, if the health maintenance 
214.2   organization is under contract for medical assistance in the 
214.3   individual's county of residence.  After initially choosing a 
214.4   provider, the recipient is allowed to change that choice only at 
214.5   specified times as allowed by the commissioner.  If a 
214.6   demonstration provider ends participation in the project for any 
214.7   reason, a recipient enrolled with that provider must select a 
214.8   new provider but may change providers without cause once more 
214.9   within the first 60 days after enrollment with the second 
214.10  provider. 
214.11     Sec. 18.  Minnesota Statutes 1996, section 256B.69, is 
214.12  amended by adding a subdivision to read: 
214.13     Subd. 6a.  [NURSING HOME SERVICES.] (a) Notwithstanding 
214.14  Minnesota Rules, part 9500.1457, subpart 1, item B, nursing 
214.15  facility services as defined in section 256B.0625, subdivision 
214.16  2, which are provided in a nursing facility certified by the 
214.17  Minnesota department of health for services provided and 
214.18  eligible for payment under Medicaid, shall be covered under the 
214.19  prepaid medical assistance program for individuals who are not 
214.20  residing in a nursing facility at the time of enrollment in the 
214.21  prepaid medical assistance program.  Liability for coverage of 
214.22  nursing facility services by a participating health plan is 
214.23  limited to 365 days for any person enrolled under the prepaid 
214.24  medical assistance program. 
214.25     (b) For individuals enrolled in the Minnesota senior health 
214.26  options project authorized under subdivision 23, nursing 
214.27  facility services shall be covered according to the terms and 
214.28  conditions of the federal waiver governing that demonstration 
214.29  project. 
214.30     Sec. 19.  Minnesota Statutes 1996, section 256B.69, is 
214.31  amended by adding a subdivision to read: 
214.32     Subd. 6b.  [ELDERLY WAIVER SERVICES.] Notwithstanding 
214.33  Minnesota Rules, part 9500.1457, subpart 1, item C, elderly 
214.34  waiver services shall be covered under the prepaid medical 
214.35  assistance program for all individuals who are eligible 
214.36  according to section 256B.0915.  For individuals enrolled in the 
215.1   Minnesota senior health options project authorized under 
215.2   subdivision 23, elderly waiver services shall be covered 
215.3   according to the terms and conditions of the federal waiver 
215.4   governing that demonstration project. 
215.5      Sec. 20.  Minnesota Statutes 1996, section 256I.04, 
215.6   subdivision 2a, is amended to read: 
215.7      Subd. 2a.  [LICENSE REQUIRED.] A county agency may not 
215.8   enter into an agreement with an establishment to provide group 
215.9   residential housing unless:  
215.10     (1) the establishment is licensed by the department of 
215.11  health as a hotel and restaurant; a board and lodging 
215.12  establishment; a residential care home; a boarding care home 
215.13  before March 1, 1985; or a supervised living facility, and the 
215.14  service provider for residents of the facility is licensed under 
215.15  chapter 245A.  However, an establishment licensed by the 
215.16  department of health to provide lodging need not also be 
215.17  licensed to provide board if meals are being supplied to 
215.18  residents under a contract with a food vendor who is licensed by 
215.19  the department of health; or 
215.20     (2) the residence is licensed by the commissioner of human 
215.21  services under Minnesota Rules, parts 9555.5050 to 9555.6265, or 
215.22  certified by a county human services agency prior to July 1, 
215.23  1992, using the standards under Minnesota Rules, parts 9555.5050 
215.24  to 9555.6265; or 
215.25     (3) services are delivered as specified in Minnesota Rules, 
215.26  parts 4668.0002 to 4668.0799, and the residence is registered 
215.27  under chapter 144D, and provides three meals per day. 
215.28     The requirements under clauses (1) and, (2), and (3) do not 
215.29  apply to establishments exempt from state licensure because they 
215.30  are located on Indian reservations and subject to tribal health 
215.31  and safety requirements. 
215.32     Sec. 21.  Minnesota Statutes 1996, section 256I.05, 
215.33  subdivision 1a, is amended to read: 
215.34     Subd. 1a.  [SUPPLEMENTARY RATES.] In addition to the room 
215.35  and board rate specified in subdivision 1, the county agency may 
215.36  negotiate a payment not to exceed $426.37 for other services 
216.1   necessary to provide room and board provided by the group 
216.2   residence if the residence is licensed by or registered by the 
216.3   department of health, or licensed by the department of human 
216.4   services to provide services in addition to room and board, and 
216.5   if the provider of services is not also concurrently receiving 
216.6   funding for services for a recipient under a home and 
216.7   community-based waiver under title XIX of the Social Security 
216.8   Act; or funding from the medical assistance program under 
216.9   section 256B.0627, subdivision 4, for personal care services for 
216.10  residents in the setting; or residing in a setting which 
216.11  receives funding under Minnesota Rules, parts 9535.2000 to 
216.12  9535.3000.  If funding is available for other necessary services 
216.13  through a home and community-based waiver, or personal care 
216.14  services under section 256B.0627, subdivision 4, then the GRH 
216.15  rate is limited to the rate set in subdivision 1.  The 
216.16  registration and licensure requirement does not apply to 
216.17  establishments which are exempt from state licensure because 
216.18  they are located on Indian reservations and for which the tribe 
216.19  has prescribed health and safety requirements.  Service payments 
216.20  under this section may be prohibited under rules to prevent the 
216.21  supplanting of federal funds with state funds.  The commissioner 
216.22  shall pursue the feasibility of obtaining the approval of the 
216.23  Secretary of Health and Human Services to provide home and 
216.24  community-based waiver services under title XIX of the Social 
216.25  Security Act for residents who are not eligible for an existing 
216.26  home and community-based waiver due to a primary diagnosis of 
216.27  mental illness or chemical dependency and shall apply for a 
216.28  waiver if it is determined to be cost-effective.  The 
216.29  commissioner is authorized to make cost-neutral transfers from 
216.30  the GRH fund for beds under this section to other funding 
216.31  programs administered by the department, county human service 
216.32  agencies, or managed care provider organizations if those beds 
216.33  are permanently removed from the GRH census and the transfer is 
216.34  under a plan approved by the commissioner.  The commissioner 
216.35  shall report the amount of any transfers under this provision 
216.36  annually to the legislature. 
217.1      Sec. 22.  Minnesota Statutes 1996, section 469.155, 
217.2   subdivision 4, is amended to read: 
217.3      Subd. 4.  [REFINANCING HEALTH FACILITIES.] It may issue 
217.4   revenue bonds to pay, purchase, or discharge all or any part of 
217.5   the outstanding indebtedness of a contracting party engaged 
217.6   primarily in the operation of one or more nonprofit hospitals or 
217.7   nursing homes previously incurred in the acquisition or 
217.8   betterment of its existing hospital or nursing home facilities 
217.9   to the extent deemed necessary by the governing body of the 
217.10  municipality or redevelopment agency; this may include any 
217.11  unpaid interest on the indebtedness accrued or to accrue to the 
217.12  date on which the indebtedness is finally paid, and any premium 
217.13  the governing body of the municipality or redevelopment agency 
217.14  determines to be necessary to be paid to pay, purchase, or 
217.15  defease the outstanding indebtedness.  If revenue bonds are 
217.16  issued for this purpose, the refinancing and the existing 
217.17  properties of the contracting party shall be deemed to 
217.18  constitute a project under section 469.153, subdivision 2, 
217.19  clause (d).  Revenue bonds may not be issued pursuant to this 
217.20  subdivision unless the application for approval of the project 
217.21  pursuant to section 469.154 shows that a reduction in debt 
217.22  service charges is estimated to result and will be reflected in 
217.23  charges to patients and third-party payors.  Proceeds of revenue 
217.24  bonds issued pursuant to this subdivision may not be used for 
217.25  any purpose inconsistent with the provisions of chapter 256B.  
217.26  Nothing in this subdivision prohibits the use of revenue bond 
217.27  proceeds to pay outstanding indebtedness of a contracting party 
217.28  to the extent permitted by law on March 28, 1978.  
217.29     Sec. 23.  [REPEALER.] 
217.30     Minnesota Statutes 1996, section 469.154, subdivision 6, is 
217.31  repealed. 
217.32     Sec. 24.  [EFFECTIVE DATE.] 
217.33     Sections 2 to 5 are effective the day following final 
217.34  enactment.  
217.35     Section 19 is effective for persons enrolled in the prepaid 
217.36  medical assistance program who are admitted to a nursing 
218.1   facility on or after July 1, 1999, or upon federal approval, 
218.2   whichever is later.  Section 20 is effective for all individuals 
218.3   enrolled in the prepaid medical assistance program on or after 
218.4   July 1, 1999, or upon federal approval, whichever is later. 
218.5                              ARTICLE 5
218.6                                PART B 
218.7                 CONTINUING CARE FOR DISABLED PERSONS 
218.8      Section 1.  Minnesota Statutes 1996, section 62E.14, is 
218.9   amended by adding a subdivision to read: 
218.10     Subd. 4e.  [WAIVER OF PREEXISTING CONDITIONS; PERSONS 
218.11  COVERED BY PUBLICLY FUNDED HEALTH PROGRAMS.] A person may enroll 
218.12  in the comprehensive plan with a waiver of the preexisting 
218.13  condition limitation in subdivision 3, provided that:  
218.14     (1) the person was formerly enrolled in the medical 
218.15  assistance, general assistance medical care, or MinnesotaCare 
218.16  program; 
218.17     (2) the person is a Minnesota resident; and 
218.18     (3) the person applies within 90 days of termination from 
218.19  medical assistance, general assistance medical care, or 
218.20  MinnesotaCare program. 
218.21     Sec. 2.  Minnesota Statutes 1996, section 245.652, 
218.22  subdivision 1, is amended to read: 
218.23     Subdivision 1.  [PURPOSE.] The regional treatment centers 
218.24  shall provide services designed to end a person's reliance on 
218.25  chemical use or a person's chemical abuse and increase effective 
218.26  and chemical-free functioning.  Clinically effective programs 
218.27  must be provided in accordance with section 246.64.  Services 
218.28  may be offered on the regional center campus or at sites 
218.29  elsewhere in the catchment area served by the regional treatment 
218.30  center. 
218.31     Sec. 3.  Minnesota Statutes 1996, section 245.652, 
218.32  subdivision 2, is amended to read: 
218.33     Subd. 2.  [SERVICES OFFERED.] Services provided must may 
218.34  include, but are not limited to, the following: 
218.35     (1) primary and extended residential care, including 
218.36  residential treatment programs of varied duration intended to 
219.1   deal with a person's chemical dependency or chemical abuse 
219.2   problems; 
219.3      (2) follow-up care to persons discharged from regional 
219.4   treatment center programs or other chemical dependency programs; 
219.5      (3) outpatient treatment programs; and 
219.6      (4) other treatment services, as appropriate and as 
219.7   provided under contract or shared service agreements. 
219.8      Sec. 4.  Minnesota Statutes 1996, section 245.652, 
219.9   subdivision 4, is amended to read: 
219.10     Subd. 4.  [SYSTEM LOCATIONS.] Programs shall be located in 
219.11  Anoka, Brainerd, Fergus Falls, St. Peter, and Willmar and may be 
219.12  offered at other selected sites. Programs are currently located 
219.13  in Walker, Anoka, Brainerd, Fergus Falls, St. Peter, Willmar, 
219.14  and in the Moose Lake area, Cloquet, and Cambridge.  Locations 
219.15  of state-operated chemical dependency programs shall be 
219.16  determined by needs of Minnesota counties and consumers.  The 
219.17  commissioner of human services shall have the authority to 
219.18  consolidate or close any state-operated chemical dependency 
219.19  programs that are not able to generate sufficient revenues to 
219.20  cover their expenses, after reasonable attempts to generate 
219.21  additional revenues have failed.  Before the closure or 
219.22  consolidation of any state-operated chemical dependency program, 
219.23  the commissioner shall notify the chairs of the senate health 
219.24  and family security finance division and the house of 
219.25  representatives health and human services finance division. 
219.26     Sec. 5.  Minnesota Statutes 1996, section 246.0135, is 
219.27  amended to read: 
219.28     246.0135 [OPERATION OF REGIONAL TREATMENT CENTERS.] 
219.29     (a) The commissioner of human services is prohibited from 
219.30  closing any regional treatment center or state-operated nursing 
219.31  home or and, except for chemical dependency programs as provided 
219.32  in section 245.652, any program at any of the regional treatment 
219.33  centers or state-operated nursing homes, without specific 
219.34  legislative authorization.  For persons with mental retardation 
219.35  or related conditions who move from one regional treatment 
219.36  center to another regional treatment center, the provisions of 
220.1   section 256B.092, subdivision 10, must be followed for both the 
220.2   discharge from one regional treatment center and admission to 
220.3   another regional treatment center, except that the move is not 
220.4   subject to the consensus requirement of section 256B.092, 
220.5   subdivision 10, paragraph (b). 
220.6      (b) Prior to closing or downsizing a regional treatment 
220.7   center, the commissioner of human services shall be responsible 
220.8   for assuring that community-based alternatives developed in 
220.9   response are adequate to meet the program needs identified by 
220.10  each county within the catchment area and do not require 
220.11  additional local county property tax expenditures. 
220.12     (c) The nonfederal share of the cost of alternative 
220.13  treatment or care developed as the result of the closure of a 
220.14  regional treatment center, including costs associated with 
220.15  fulfillment of responsibilities under chapter 253B shall be paid 
220.16  from state funds appropriated for purposes specified in section 
220.17  246.013. 
220.18     (d) Counties in the catchment area of a regional treatment 
220.19  center which has been closed or downsized may not at any time be 
220.20  required to pay a greater cost of care for alternative care and 
220.21  treatment than the county share set by the commissioner for the 
220.22  cost of care provided by regional treatment centers. 
220.23     (e) The commissioner may not divert state funds used for 
220.24  providing for care or treatment of persons residing in a 
220.25  regional treatment center for purposes unrelated to the care and 
220.26  treatment of such persons. 
220.27     Sec. 6.  Minnesota Statutes 1996, section 246.02, 
220.28  subdivision 2, is amended to read: 
220.29     Subd. 2.  The commissioner of human services shall act with 
220.30  the advice of the medical policy directional committee on mental 
220.31  health in the appointment and removal of the chief executive 
220.32  officers of the following institutions:  Anoka-Metro Regional 
220.33  Treatment Center, Ah-Gwah-Ching Center, Fergus Falls Regional 
220.34  Treatment Center, St. Peter Regional Treatment Center and 
220.35  Minnesota Security Hospital, Willmar Regional Treatment Center, 
220.36  Faribault Regional Center, Cambridge Regional Human Services 
221.1   Center, Brainerd Regional Human Services Center, and until June 
221.2   30, 1995, Moose Lake Regional Treatment Center, and after June 
221.3   30, 1995, Minnesota Sexual Psychopathic Personality Treatment 
221.4   Center and until June 30, 1998, Faribault Regional Center. 
221.5      Sec. 7.  Minnesota Statutes 1996, section 252.025, 
221.6   subdivision 1, is amended to read: 
221.7      Subdivision 1.  [REGIONAL TREATMENT CENTERS.] State 
221.8   hospitals for persons with mental retardation shall be 
221.9   established and maintained at Faribault until June 30, 1998, 
221.10  Cambridge and Brainerd, and notwithstanding any provision to the 
221.11  contrary they shall be respectively known as the Faribault 
221.12  regional center, the Cambridge regional human services center, 
221.13  and the Brainerd regional human services center.  Each of the 
221.14  foregoing state hospitals shall also be known by the name of 
221.15  regional center at the discretion of the commissioner of human 
221.16  services.  The terms "human services" or "treatment" may be 
221.17  included in the designation. 
221.18     Sec. 8.  Minnesota Statutes 1996, section 252.025, 
221.19  subdivision 4, is amended to read: 
221.20     Subd. 4.  [STATE-PROVIDED SERVICES.] (a) It is the policy 
221.21  of the state to capitalize and recapitalize the regional 
221.22  treatment centers as necessary to prevent depreciation and 
221.23  obsolescence of physical facilities and to ensure they retain 
221.24  the physical capability to provide residential programs.  
221.25  Consistent with that policy and with section 252.50, and within 
221.26  the limits of appropriations made available for this purpose, 
221.27  the commissioner may establish, by June 30, 1991, the following 
221.28  state-operated, community-based programs for the least 
221.29  vulnerable regional treatment center residents:  at Brainerd 
221.30  regional services center, two residential programs and two day 
221.31  programs; at Cambridge regional treatment center, four 
221.32  residential programs and two day programs; at Faribault regional 
221.33  treatment center, ten residential programs and six day programs; 
221.34  at Fergus Falls regional treatment center, two residential 
221.35  programs and one day program; at Moose Lake regional treatment 
221.36  center, four residential programs and two day programs; and at 
222.1   Willmar regional treatment center, two residential programs and 
222.2   one day program. 
222.3      (b) By January 15, 1991, the commissioner shall report to 
222.4   the legislature a plan to provide continued regional treatment 
222.5   center capacity and state-operated, community-based residential 
222.6   and day programs for persons with developmental disabilities at 
222.7   Brainerd, Cambridge, Faribault, Fergus Falls, St. Peter, and 
222.8   Willmar, as follows: 
222.9      (1) by July 1, 1998, continued regional treatment center 
222.10  capacity to serve 350 persons with developmental disabilities as 
222.11  follows:  at Brainerd, 80 persons; at Cambridge, 12 persons; at 
222.12  Faribault, 110 persons; at Fergus Falls, 60 persons; at St. 
222.13  Peter, 35 persons; at Willmar, 25 persons; and up to 16 crisis 
222.14  beds in the Twin Cities metropolitan area; and 
222.15     (2) by July 1, 1999, continued regional treatment center 
222.16  capacity to serve 254 persons with developmental disabilities as 
222.17  follows:  at Brainerd, 57 persons; at Cambridge, 12 persons; at 
222.18  Faribault, 80 persons; at Fergus Falls, 35 persons; at St. 
222.19  Peter, 30 persons; at Willmar, 12 persons, and up to 16 crisis 
222.20  beds in the Twin Cities metropolitan area.  In addition, the 
222.21  plan shall provide for the capacity to provide residential 
222.22  services to 570 persons with developmental disabilities in 95 
222.23  state-operated, community-based residential programs. 
222.24     The commissioner is subject to a mandamus action under 
222.25  chapter 586 for any failure to comply with the provisions of 
222.26  this subdivision. 
222.27     Sec. 9.  Minnesota Statutes 1996, section 252.025, is 
222.28  amended by adding a subdivision to read: 
222.29     Subd. 7.  [MINNESOTA EXTENDED TREATMENT OPTIONS.] The 
222.30  commissioner shall develop by July 1, 1997, the Minnesota 
222.31  extended treatment options at the Cambridge campus to serve 
222.32  citizens of Minnesota who have developmental disabilities and 
222.33  exhibit severe behaviors which present a risk to public safety.  
222.34  This program will provide secure residential services on the 
222.35  campus and an array of community support services statewide. 
222.36     Sec. 10.  Minnesota Statutes 1996, section 252.32, 
223.1   subdivision 1a, is amended to read: 
223.2      Subd. 1a.  [SUPPORT GRANTS.] (a) Provision of support 
223.3   grants must be limited to families who require support and whose 
223.4   dependents are under the age of 22 and who have mental 
223.5   retardation or who have a related condition and who have been 
223.6   determined by a screening team established under section 
223.7   256B.092 to be at risk of institutionalization.  Families who 
223.8   are receiving home and community-based waivered services for 
223.9   persons with mental retardation or related conditions are not 
223.10  eligible for support grants.  Effective October 1, 1997, 
223.11  families who are receiving other home and community-based 
223.12  waivered services are not eligible for support grants.  Families 
223.13  whose annual adjusted gross income is $60,000 or more are not 
223.14  eligible for support grants except in cases where extreme 
223.15  hardship is demonstrated.  Beginning in state fiscal year 1994, 
223.16  the commissioner shall adjust the income ceiling annually to 
223.17  reflect the projected change in the average value in the United 
223.18  States Department of Labor Bureau of Labor Statistics consumer 
223.19  price index (all urban) for that year. 
223.20     (b) Support grants may be made available as monthly subsidy 
223.21  grants and lump sum grants. 
223.22     (c) Support grants may be issued in the form of cash, 
223.23  voucher, and direct county payment to a vendor.  
223.24     (d) Applications for the support grant shall be made by the 
223.25  legal guardian to the county social service agency to the 
223.26  department of human services.  The application shall specify the 
223.27  needs of the families, the form of the grant requested by the 
223.28  families, and that the families have agreed to use the support 
223.29  grant for items and services within the designated reimbursable 
223.30  expense categories and recommendations of the county.  
223.31     (e) Families who were receiving subsidies on the date of 
223.32  implementation of the $60,000 income limit in paragraph (a) 
223.33  continue to be eligible for a family support grant until 
223.34  December 31, 1991, if all other eligibility criteria are met.  
223.35  After December 31, 1991, these families are eligible for a grant 
223.36  in the amount of one-half the grant they would otherwise 
224.1   receive, for as long as they remain eligible under other 
224.2   eligibility criteria. 
224.3      Sec. 11.  Minnesota Statutes 1996, section 252.32, 
224.4   subdivision 3, is amended to read: 
224.5      Subd. 3.  [AMOUNT OF SUPPORT GRANT; USE.] Support grant 
224.6   amounts shall be determined by the commissioner of human 
224.7   services county social service agency.  Each service and item 
224.8   purchased with a support grant must: 
224.9      (1) be over and above the normal costs of caring for the 
224.10  dependent if the dependent did not have a disability; 
224.11     (2) be directly attributable to the dependent's disabling 
224.12  condition; and 
224.13     (3) enable the family to delay or prevent the out-of-home 
224.14  placement of the dependent. 
224.15     The design and delivery of services and items purchased 
224.16  under this section must suit the dependent's chronological age 
224.17  and be provided in the least restrictive environment possible, 
224.18  consistent with the needs identified in the individual service 
224.19  plan. 
224.20     Items and services purchased with support grants must be 
224.21  those for which there are no other public or private funds 
224.22  available to the family.  Fees assessed to parents for health or 
224.23  human services that are funded by federal, state, or county 
224.24  dollars are not reimbursable through this program. 
224.25     The maximum monthly amount shall be $250 per eligible 
224.26  dependent, or $3,000 per eligible dependent per state fiscal 
224.27  year, within the limits of available funds.  During fiscal year 
224.28  1992 and 1993, the maximum monthly grant awarded to families who 
224.29  are eligible for medical assistance shall be $200, except in 
224.30  cases where extreme hardship is demonstrated.  The commissioner 
224.31  county social service agency may consider the dependent's 
224.32  supplemental security income in determining the amount of the 
224.33  support grant.  A variance The county social service agency may 
224.34  be granted by the commissioner to exceed $3,000 per state fiscal 
224.35  year per eligible dependent for emergency circumstances in cases 
224.36  where exceptional resources of the family are required to meet 
225.1   the health, welfare-safety needs of the child.  The commissioner 
225.2   county social service agency may set aside up to five percent of 
225.3   the appropriation their allocation to fund emergency situations. 
225.4      Effective July 1, 1997, county social service agencies 
225.5   shall continue to provide funds to families receiving state 
225.6   grants on June 30, 1997, if eligibility criteria continue to be 
225.7   met.  Any adjustments to their monthly grant amount must be 
225.8   based on the needs of the family and funding availability. 
225.9      Sec. 12.  Minnesota Statutes 1996, section 252.32, 
225.10  subdivision 3a, is amended to read: 
225.11     Subd. 3a.  [REPORTS AND REIMBURSEMENT ALLOCATIONS.] (a) The 
225.12  commissioner shall specify requirements for quarterly fiscal and 
225.13  annual program reports according to section 256.01, subdivision 
225.14  2, paragraph (17).  Program reports shall include data which 
225.15  will enable the commissioner to evaluate program effectiveness 
225.16  and to audit compliance.  The commissioner shall reimburse 
225.17  county costs on a quarterly basis. 
225.18     (b) Beginning January 1, 1998, the commissioner shall 
225.19  allocate state funds made available under this section to county 
225.20  social service agencies on a calendar year basis.  The 
225.21  commissioner shall allocate to each county first in amounts 
225.22  equal to each county's guaranteed floor as described in clause 
225.23  (1), and second, and remaining funds, after the allocation of 
225.24  funds to the newly participating counties as provided for in 
225.25  clause (3), shall be allocated in proportion to each county's 
225.26  total number of families receiving a grant on July 1 of the most 
225.27  recent calendar year.  
225.28     (1) Each county's guaranteed floor shall be calculated as 
225.29  follows:  
225.30     (i) 95 percent of the county's allocation received in the 
225.31  preceding calendar year.  For the calendar year 1998 allocation, 
225.32  the preceding calendar year shall be considered to be double the 
225.33  six-month allocation as provided in for in clause (2); 
225.34     (ii) when the amount of funds available for allocation is 
225.35  less than the amount available in the preceding year, each 
225.36  county's previous year allocation shall be reduced in proportion 
226.1   to the reduction in statewide funding, for the purpose of 
226.2   establishing the guaranteed floor.  
226.3      (2) For the period from July 1, 1997, to December 31, 1997, 
226.4   the commissioner shall allocate to each county an amount equal 
226.5   to the actual, state approved, grants issued by the county for 
226.6   the month of January 1997, multiplied by six.  This six-month 
226.7   allocation shall be combined with the calendar year 1998 
226.8   allocation and be administered as an 18-month allocation.  
226.9      (3) At the commissioner's discretion, funds may be 
226.10  allocated to any nonparticipating county that requests an 
226.11  allocation under this section.  Allocations to newly 
226.12  participating counties are dependent upon the availability of 
226.13  funds, as determined by the actual expenditure amount of the 
226.14  participating counties for the most recently completed calendar 
226.15  year.  
226.16     (4) The commissioner shall regularly review the use of 
226.17  family support fund allocations by county.  The commissioner may 
226.18  reallocate unexpended or unencumbered money at any time to those 
226.19  counties that have a demonstrated need for additional funding.  
226.20     (c) County allocations under this section will be adjusted 
226.21  for transfers that occur pursuant to section 256.476. 
226.22     Sec. 13.  Minnesota Statutes 1996, section 252.32, 
226.23  subdivision 3c, is amended to read: 
226.24     Subd. 3c.  [COUNTY BOARD RESPONSIBILITIES.] County boards 
226.25  receiving funds under this section shall:  
226.26     (1) determine the needs of families for services in 
226.27  accordance with section 256B.092 or 256E.08 and any rules 
226.28  adopted under those sections; 
226.29     (2) determine the eligibility of all persons proposed for 
226.30  program participation; 
226.31     (3) recommend for approval approve all items and services 
226.32  to be reimbursed and inform families of the commissioner's 
226.33  county's approval decision; 
226.34     (4) issue support grants directly to, or on behalf of, 
226.35  eligible families; 
226.36     (5) inform recipients of their right to appeal under 
227.1   subdivision 3e; 
227.2      (6) submit quarterly financial reports under subdivision 
227.3   3b; and 
227.4      (7) coordinate services with other programs offered by the 
227.5   county. 
227.6      Sec. 14.  Minnesota Statutes 1996, section 252.32, 
227.7   subdivision 5, is amended to read: 
227.8      Subd. 5.  [COMPLIANCE.] If a county board or grantee does 
227.9   not comply with this section and the rules adopted by the 
227.10  commissioner of human services, the commissioner may recover, 
227.11  suspend, or withhold payments. 
227.12     Sec. 15.  Minnesota Statutes 1996, section 254.04, is 
227.13  amended to read: 
227.14     254.04 [TREATMENT OF CHEMICALLY DEPENDENT PERSONS.] 
227.15     The commissioner of human services is hereby authorized to 
227.16  continue the treatment of chemically dependent persons at 
227.17  Ah-Gwah-Ching and Moose Lake area programs as well as at the 
227.18  regional treatment centers located at Anoka, Brainerd, Fergus 
227.19  Falls, Moose Lake, St. Peter, and Willmar as specified in 
227.20  section 245.652.  During the year ending June 30, 1994, the 
227.21  commissioner shall relocate, in the catchment area served by the 
227.22  Moose Lake regional treatment center, two state-operated 
227.23  off-campus programs designed to serve patients who are relocated 
227.24  from the Moose Lake regional treatment center.  One program 
227.25  shall be a 35-bed program for women who are chemically 
227.26  dependent; the other shall be a 25-bed program for men who are 
227.27  chemically dependent.  The facility space housing the Liberalis 
227.28  chemical dependency program (building C-35) and the men's 
227.29  chemical dependency program (4th floor main) may not be vacated 
227.30  until suitable off-campus space for the women's chemical 
227.31  dependency program of 35 beds and the men's chemical dependency 
227.32  program of 25 beds is located and clients and staff are 
227.33  relocated. 
227.34     Sec. 16.  Minnesota Statutes 1996, section 254B.02, 
227.35  subdivision 3, is amended to read: 
227.36     Subd. 3.  [RESERVE ACCOUNT.] The commissioner shall 
228.1   allocate money from the reserve account to counties that, during 
228.2   the current fiscal year, have met or exceeded the base level of 
228.3   expenditures for eligible chemical dependency services from 
228.4   local money.  The commissioner shall establish the base level 
228.5   for fiscal year 1988 as the amount of local money used for 
228.6   eligible services in calendar year 1986.  In later years, the 
228.7   base level must be increased in the same proportion as state 
228.8   appropriations to implement Laws 1986, chapter 394, sections 8 
228.9   to 20, are increased.  The base level must be decreased if the 
228.10  fund balance from which allocations are made under section 
228.11  254B.02, subdivision 1, is decreased in later years.  The local 
228.12  match rate for the reserve account is the same rate as applied 
228.13  to the initial allocation.  Reserve account payments must not be 
228.14  included when calculating the county adjustments made according 
228.15  to subdivision 2.  For counties providing medical assistance or 
228.16  general assistance medical care through managed care plans on 
228.17  January 1, 1996, the base year is fiscal year 1995.  For 
228.18  counties beginning provision of managed care after January 1, 
228.19  1996, the base year is the most recent fiscal year before 
228.20  enrollment in managed care begins.  For counties providing 
228.21  managed care, the base level will be increased or decreased in 
228.22  proportion to changes in the fund balance from which allocations 
228.23  are made under subdivision 2, but will be additionally increased 
228.24  or decreased in proportion to the change in county adjusted 
228.25  population made in subdivision 1, paragraphs (b) and (c). 
228.26     Sec. 17.  Minnesota Statutes 1996, section 254B.03, 
228.27  subdivision 1, is amended to read: 
228.28     Subdivision 1.  [LOCAL AGENCY DUTIES.] (a) Every local 
228.29  agency shall provide chemical dependency services to persons 
228.30  residing within its jurisdiction who meet criteria established 
228.31  by the commissioner for placement in a chemical dependency 
228.32  residential or nonresidential treatment service.  Chemical 
228.33  dependency money must be administered by the local agencies 
228.34  according to law and rules adopted by the commissioner under 
228.35  sections 14.001 to 14.69. 
228.36     (b) In order to contain costs, the county board shall, with 
229.1   the approval of the commissioner of human services, select 
229.2   eligible vendors of chemical dependency services who can provide 
229.3   economical and appropriate treatment.  Unless the local agency 
229.4   is a social services department directly administered by a 
229.5   county or human services board, the local agency shall not be an 
229.6   eligible vendor under section 254B.05.  The commissioner may 
229.7   approve proposals from county boards to provide services in an 
229.8   economical manner or to control utilization, with safeguards to 
229.9   ensure that necessary services are provided.  If a county 
229.10  implements a demonstration or experimental medical services 
229.11  funding plan, the commissioner shall transfer the money as 
229.12  appropriate.  If a county selects a vendor located in another 
229.13  state, the county shall ensure that the vendor is in compliance 
229.14  with the rules governing licensure of programs located in the 
229.15  state. 
229.16     (c) For the biennium ending June 30, 1999, the rate for 
229.17  vendors may not increase more than three percent above the rate 
229.18  approved on January 1, 1997.  Residential vendors may not 
229.19  receive a rate increase in the biennium ending June 30, 1999, if 
229.20  the rate charged on January 1, 1997, exceeds the statewide 
229.21  median rate for that level of care.  Rates for residential 
229.22  levels of care for vendors who are enrolled after January 1, 
229.23  1997, may not exceed the median rate for each level of care 
229.24  provided. 
229.25     (c) (d) A culturally specific vendor that provides 
229.26  assessments under a variance under Minnesota Rules, part 
229.27  9530.6610, shall be allowed to provide assessment services to 
229.28  persons not covered by the variance. 
229.29     Sec. 18.  Minnesota Statutes 1996, section 256B.0625, 
229.30  subdivision 15, is amended to read: 
229.31     Subd. 15.  [HEALTH PLAN PREMIUMS AND COPAYMENTS.] Medical 
229.32  assistance covers health care prepayment plan premiums, 
229.33  insurance premiums, and copayments if determined to be 
229.34  cost-effective by the commissioner.  Effective for all premium 
229.35  payments due on or after August 1, 1997, medical assistance does 
229.36  not cover premiums for health insurance policies offered by the 
230.1   Minnesota comprehensive health association under chapter 62E.  
230.2   For purposes of obtaining Medicare part A and part B, and 
230.3   copayments, expenditures may be made even if federal funding is 
230.4   not available. 
230.5      Sec. 19.  Minnesota Statutes 1996, section 256B.49, 
230.6   subdivision 1, is amended to read: 
230.7      Subdivision 1.  [STUDY; WAIVER APPLICATION.] The 
230.8   commissioner shall authorize a study to assess the need for home 
230.9   and community-based waivers for chronically ill children who 
230.10  have been and will continue to be hospitalized without a waiver, 
230.11  and for disabled individuals under the age of 65 who are likely 
230.12  to reside in an acute care or nursing home facility in the 
230.13  absence of a waiver.  If a need for these waivers can be 
230.14  demonstrated, the commissioner shall apply for federal waivers 
230.15  necessary to secure, to the extent allowed by law, federal 
230.16  participation under United States Code, title 42, sections 
230.17  1396-1396p, as amended through December 31, 1982, for the 
230.18  provision of home and community-based services to chronically 
230.19  ill children who, in the absence of such a waiver, would remain 
230.20  in an acute care setting, and to disabled individuals under the 
230.21  age of 65 who, in the absence of a waiver, would reside in an 
230.22  acute care or nursing home setting.  If the need is 
230.23  demonstrated, the commissioner shall request a waiver under 
230.24  United States Code, title 42, sections 1396-1396p, to allow 
230.25  medicaid eligibility for blind or disabled children with 
230.26  ineligible parents where income deemed from the parents would 
230.27  cause the applicant to be ineligible for supplemental security 
230.28  income if the family shared a household and to furnish necessary 
230.29  services in the home or community to disabled individuals under 
230.30  the age of 65 who would be eligible for medicaid if 
230.31  institutionalized in an acute care or nursing home setting. 
230.32  These waivers are requested to furnish necessary services in the 
230.33  home and community setting to children or disabled adults under 
230.34  age 65 who are medicaid eligible when institutionalized in an 
230.35  acute care or nursing home setting.  The commissioner shall 
230.36  assure that the cost of home and community-based care will not 
231.1   be more than the cost of care if the eligible child or disabled 
231.2   adult under age 65 were to remain institutionalized.  The 
231.3   average monthly limit for the cost of home and community-based 
231.4   services to a community alternative care waiver client shall not 
231.5   exceed the statewide average medical assistance adjusted base 
231.6   year operating cost for nursing and accommodation services under 
231.7   sections 256.9685 to 256.969 for the diagnostic category to 
231.8   which the waiver client would be assigned except the admission 
231.9   and outlier rates shall be converted to an overall per diem.  
231.10  The average monthly limit for the cost of services to a 
231.11  traumatic brain injury neurobehavioral hospital waiver client 
231.12  shall not exceed the statewide average medical assistance 
231.13  adjusted base year operating cost for nursing and accommodation 
231.14  services of Medicare designated long-term hospitals under 
231.15  sections 256.9685 to 256.969 with neurobehavioral rehabilitation 
231.16  programs converted to an overall per diem.  The following costs 
231.17  must be included in determining the total average monthly costs 
231.18  for a waiver client:  
231.19     (1) cost of all waivered services; and 
231.20     (2) cost of skilled nursing, private duty nursing, home 
231.21  health aide, and personal care services reimbursable by medical 
231.22  assistance.  
231.23     The commissioner of human services shall seek federal 
231.24  waivers as necessary to implement the average monthly limit.  
231.25  The commissioner shall seek to amend the federal waivers 
231.26  obtained under this section to apply criteria to protect against 
231.27  spousal impoverishment as authorized under United States Code, 
231.28  title 42, section 1396r-5, and as implemented in sections 
231.29  256B.0575, 256B.058, and 256B.059, except that the amendment 
231.30  shall seek to add to the personal needs allowance permitted in 
231.31  section 256B.0575, an amount equivalent to the group residential 
231.32  housing rate as set by section 256I.03, subdivision 5. 
231.33     Sec. 20.  Minnesota Statutes 1996, section 256D.03, 
231.34  subdivision 3b, is amended to read: 
231.35     Subd. 3b.  [COOPERATION.] General assistance or general 
231.36  assistance medical care applicants and recipients must cooperate 
232.1   with the state and local agency to identify potentially liable 
232.2   third-party payors and assist the state in obtaining third-party 
232.3   payments.  Cooperation includes identifying any third party who 
232.4   may be liable for care and services provided under this chapter 
232.5   to the applicant, recipient, or any other family member for whom 
232.6   application is made and providing relevant information to assist 
232.7   the state in pursuing a potentially liable third party.  General 
232.8   assistance medical care applicants and recipients must cooperate 
232.9   by providing information about any group health plan in which 
232.10  they may be eligible to enroll.  They must cooperate with the 
232.11  state and local agency in determining if the plan is 
232.12  cost-effective.  If the plan is determined cost-effective and 
232.13  the premium will be paid by the state or local agency or is 
232.14  available at no cost to the person, they must enroll or remain 
232.15  enrolled in the group health plan.  Effective for all premium 
232.16  payments due on or after August 1, 1997, general assistance 
232.17  medical care does not pay for premiums for health insurance 
232.18  offered by the Minnesota comprehensive health association under 
232.19  chapter 62E.  Cost-effective insurance premiums approved for 
232.20  payment by the state agency and paid by the local agency are 
232.21  eligible for reimbursement according to subdivision 6.  
232.22     Sec. 21.  Laws 1995, chapter 207, article 8, section 41, 
232.23  subdivision 2, is amended to read: 
232.24     Subd. 2.  [PROGRAM DESIGN AND IMPLEMENTATION.] (a) The 
232.25  pilot projects shall be established to design, plan, and improve 
232.26  the mental health service delivery system for adults with 
232.27  serious and persistent mental illness that would: 
232.28     (1) provide an expanded array of services from which 
232.29  clients can choose services appropriate to their needs; 
232.30     (2) be based on purchasing strategies that improve access 
232.31  and coordinate services without cost shifting; 
232.32     (3) incorporate existing state facilities and resources 
232.33  into the community mental health infrastructure through creative 
232.34  partnerships with local vendors; and 
232.35     (4) utilize existing categorical funding streams and 
232.36  reimbursement sources in combined and creative ways, except 
233.1   appropriations to regional treatment centers and all funds that 
233.2   are attributable to the operation of state-operated services are 
233.3   excluded unless appropriated specifically by the legislature for 
233.4   a purpose consistent with this section. 
233.5      (b) All projects funded by January 1, 1997, must complete 
233.6   their the planning phase and be operational by June 30, 1997; 
233.7   all projects funded by January 1, 1998, must complete the 
233.8   planning phase and be operational by June 30, 1998. 
233.9      Sec. 22.  [BRAINERD REGIONAL HUMAN SERVICES CENTER 
233.10  GOVERNANCE DEMONSTRATION PROJECT.] 
233.11     (a) The commissioner of human services is authorized to 
233.12  establish a planning group comprised of representatives of the 
233.13  Brainerd Regional Human Services Center and the 12 counties 
233.14  within the catchment area of the Brainerd Regional Human 
233.15  Services Center, to evaluate the feasibility of, and propose a 
233.16  model for regional governance of the regional treatment center.  
233.17  Establishment of a governance model that will enable further 
233.18  integration of funding and service systems to ensure that 
233.19  persons with mental illness or developmental disabilities in the 
233.20  region are served according to law in a cost-efficient and 
233.21  cost-effective manner will be the focal point of this planning 
233.22  effort. 
233.23     (b) The counties of Aitkin, Beltrami, Benton, Cass, 
233.24  Clearwater, Crow Wing, Hubbard, Lake of the Woods, Morrison, 
233.25  Stearns, Todd, and Wadena and the Brainerd Regional Human 
233.26  Services Center will be represented on the planning group.  The 
233.27  chief executive officer of the Brainerd Regional Human Services 
233.28  Center will convene the initial meeting of the planning group no 
233.29  later than July 1, 1997.  The planning group will select from 
233.30  among its members a chairperson, identify other stakeholder 
233.31  involvement in the planning process, and establish a project 
233.32  work plan and meeting schedule.  If the planning group 
233.33  determines that it is feasible to proceed with regional 
233.34  governance of the Brainerd Regional Human Services Center, it 
233.35  shall formulate and make recommendations on the governance 
233.36  structure and its operating principles to the commissioner of 
234.1   human services no later than May 15, 1998, for review and 
234.2   approval by the commissioner prior to implementation of the 
234.3   governance structure on July 1, 1998. 
234.4      (c) The design of the governance model must lead to a 
234.5   mental health and developmental disabilities service system that 
234.6   is regionally based and community-focused and includes the 
234.7   long-term psychiatric hospital services of the regional 
234.8   treatment center as a component part of this locally defined 
234.9   system.  The governing body will have decision-making authority 
234.10  over the budget of the Brainerd Regional Human Services Center 
234.11  and any related funds which county members agree to bring under 
234.12  the auspices of the governance structure for purposes of this 
234.13  demonstration project.  The Brainerd Regional Human Services 
234.14  Center portion of the regional treatment center biennial 
234.15  appropriation for mental health and developmental disabilities 
234.16  programs would be placed under the management of the regional 
234.17  governance body in accordance with the demonstration project's 
234.18  agreed upon implementation schedule.  Project planning should 
234.19  reflect the commitment to partnership between the state and 
234.20  counties in considering those aspects of the service delivery in 
234.21  the region that might be brought to a broader governance 
234.22  structure in order to maximize benefits to clients for dollars 
234.23  expended in the system.  Design of the project to enhance 
234.24  regional flexibility and support the community-based system 
234.25  infrastructure will improve the regional capacity to meet the 
234.26  needs of persons with mental illness and developmental 
234.27  disabilities and assure the availability of safety net services 
234.28  within the regional service system. 
234.29     (d) Implementation of the regional governance project will 
234.30  not proceed without the affirmative recommendation of the 
234.31  project planning group.  The planning group may discontinue the 
234.32  project at any point that it collectively determines development 
234.33  of a regional governance model to be unworkable by providing the 
234.34  commissioner of human services 30 days' written notice and an 
234.35  explanation of the reasons that prevented the project from going 
234.36  forward. 
235.1      Sec. 23.  [REPEALER.] 
235.2      Minnesota Statutes 1996, sections 252.32, subdivision 4; 
235.3   and 256B.501, subdivision 5c, are repealed. 
235.4                              ARTICLE 5
235.5                                PART C 
235.6                        DEMONSTRATION PROJECT 
235.7                    FOR PERSONS WITH DISABILITIES 
235.8      Section 1.  [256B.77] [ALTERNATIVE MANAGED CARE FOR PERSONS 
235.9   WITH DISABILITIES.] 
235.10     Subdivision 1.  [DEMONSTRATION PROJECT FOR PERSONS WITH 
235.11  DISABILITIES.] The commissioner of human services shall, in 
235.12  cooperation with local agencies, develop and implement a 
235.13  demonstration project to create alternative managed care 
235.14  organizations in which medical assistance benefit set services 
235.15  for persons with disabilities are provided in an integrated 
235.16  manner and funded on a capitated basis.  This demonstration 
235.17  project must be proposed and designed by local planning groups 
235.18  that include county and provider agencies, consumers, family 
235.19  members, advocates, and advocacy agencies and may include health 
235.20  plans.  Consumers, families, and consumer representatives must 
235.21  be involved in the planning, implementation, and evaluation 
235.22  processes for the demonstration project.  
235.23     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
235.24  the following terms have the meanings given. 
235.25     (a) "Acute care" means the medical assistance benefit set, 
235.26  not including continuing care services, as specified in the 
235.27  contract. 
235.28     (b) "Advocate" means an individual who has been authorized 
235.29  by the enrollee or the enrollee's legal representative to help 
235.30  the enrollee understand information presented and to speak on 
235.31  the enrollee's behalf.  The advocate does not have the legal 
235.32  authority to make decisions that the guardian or conservator may 
235.33  have.  The advocate represents only the enrollee. 
235.34     (c) "Alternative services" means services developed and 
235.35  provided by the managed care organization which are not part of 
235.36  the medical assistance benefit set. 
236.1      (d) "Commissioner" means the commissioner of the department 
236.2   of human services. 
236.3      (e) "Continuing care" means the medical assistance benefit 
236.4   set, not including acute care services, as specified in the 
236.5   contract. 
236.6      (f) "Contract" means the legal agreement between the 
236.7   commissioner and the managed care organization. 
236.8      (g) "Demonstration site" means the geographic area in which 
236.9   eligible individuals may be included in the demonstration 
236.10  project. 
236.11     (h) "Department" means the department of human services. 
236.12     (i) "Dual eligible individuals" means eligible individuals 
236.13  who are eligible for Medicare. 
236.14     (j) "Eligible individuals" means those persons residing in 
236.15  demonstration sites who are eligible for medical assistance and 
236.16  are disabled based on a disability determination under section 
236.17  256B.055, subdivisions 7 and 12; or who are eligible for medical 
236.18  assistance and have been diagnosed as:  having a serious and 
236.19  persistent mental illness as defined in section 245.462, 
236.20  subdivision 20, including those persons meeting the eligibility 
236.21  criteria in subdivision 20, clauses (5), (i), and (ii); or 
236.22  having severe emotional disturbance, as defined in section 
236.23  245.4871, subdivision 6.  Other individuals may be included at 
236.24  the option of the managed care organization based on agreement 
236.25  with the commissioner. 
236.26     (k) "Enrollee" means an eligible individual who is enrolled 
236.27  in a managed care organization in the demonstration project. 
236.28     (l) "Informed choice" means a voluntary decision made by 
236.29  the enrollee or the enrollee's legal representative, after 
236.30  becoming familiarized with the alternatives, and having been 
236.31  provided sufficient relevant written and oral information at an 
236.32  appropriate comprehension level and in a manner consistent with 
236.33  the enrollee's or the enrollee's legal representative's primary 
236.34  mode of communication. 
236.35     (m) "Informed consent" means the written agreement, or an 
236.36  agreement as documented in the record, by a competent person, or 
237.1   a person's legal representative who: 
237.2      (1) has the capacity to make reasoned decisions based on 
237.3   relevant information; 
237.4      (2) is making decisions voluntarily and without coercion; 
237.5   and 
237.6      (3) has knowledge to make an informed choice. 
237.7      (n) "Legal representative" means an individual who is 
237.8   legally authorized to provide informed consent or make informed 
237.9   choices on the person's behalf.  A legal representative may be 
237.10  one of the following individuals: 
237.11     (1) the parent of a minor under the age of 18 who has not 
237.12  been emancipated; 
237.13     (2) a court-appointed guardian or conservator of a person 
237.14  who is 18 years of age or older in areas where legally 
237.15  authorized to make decisions; 
237.16     (3) a guardian ad litem or special guardian or conservator, 
237.17  in areas where legally authorized to make decisions; 
237.18     (4) legal counsel if so specified by the person; or 
237.19     (5) any other legally authorized individual. 
237.20  The managed care organization is prohibited from acting as legal 
237.21  representative for any enrollee. 
237.22     (o) "Life domain areas" include, but are not limited to:  
237.23  home, family, education, employment, social environment, 
237.24  psychological and emotional health, self-care, independence, 
237.25  physical health, need for legal representation, financial needs, 
237.26  safety, and cultural identification and spiritual needs. 
237.27     (p) "Local agency" means the county human services agency 
237.28  responsible for administering eligibility for medical assistance.
237.29     (q) "Managed care organization" means an agency, 
237.30  organization, county government, prepaid health plan, provider 
237.31  network, or a group of these entities under contract with the 
237.32  state to participate in the demonstration project.  A managed 
237.33  care organization must meet the standards of a health 
237.34  maintenance organization under chapter 62D, a community 
237.35  integrated service network under section 62N.02, subdivision 4a, 
237.36  or other legal entity under chapter 62Q. 
238.1      (r) "Medical assistance benefit set" means the set of 
238.2   benefits covered under sections 256B.0625, 256B.0912, 256B.0915, 
238.3   256B.092, and 256B.49.  Authorization and provision of covered 
238.4   benefits will be done in accordance with the definition of 
238.5   medical necessity in Minnesota Rules, part 9505.0175, subpart 
238.6   25.  The medical assistance benefit set will include the 
238.7   postcommitment, community-based psychiatric hospitalization 
238.8   covered by Medicaid contracts in those areas of the state 
238.9   covered by these existing contracts. 
238.10     (s) "Outcome" means the behavior, action, or status of the 
238.11  enrollee that can be observed and/or measured and reliably and 
238.12  validly determined. 
238.13     (t) "Person" means an individual who is enrolled in a 
238.14  managed care organization. 
238.15     (u) "Personal support plan" means a document agreed to and 
238.16  signed by the enrollee or the enrollee's legal representative, 
238.17  if any, which describes:  
238.18     (1) the amount, type, setting, and frequency of formal and 
238.19  informal supports and services; 
238.20     (2) the use of regulated treatment; 
238.21     (3) the transition of a child to the adult service system; 
238.22  and 
238.23     (4) the outcomes expected from the provision of these 
238.24  supports and services.  
238.25     The personal support plan must be based on choices, 
238.26  preferences, and assessed needs and strengths of the enrollee.  
238.27  This document is developed by the person, or the person's legal 
238.28  representative, the service coordinator, and other individuals 
238.29  requested by the person.  Service coordinators must address any 
238.30  conflict of interest in the personal support plan when they are 
238.31  a provider of other services to the enrollee in order to ensure 
238.32  that responsibilities outlined in subdivision 12, paragraph (a), 
238.33  are fulfilled. 
238.34     (v) "Regulated treatment" means any behavior altering 
238.35  medication of any classification or any aversive or deprivation 
238.36  procedure as defined in rules and statutes applicable to 
239.1   eligible individuals. 
239.2      (w) "Service coordinator" refers to the individual 
239.3   authorized by the managed care organization to coordinate or 
239.4   provide supports and services identified in the personal support 
239.5   plan.  Eligible service coordinators are individuals age 18 and 
239.6   older who are determined by the managed care organization to 
239.7   meet the qualifications and fulfill the responsibilities 
239.8   described in subdivision 12, paragraph (a).  Providers of 
239.9   residential services licensed under chapter 245A to provide 
239.10  residential services, other than short-term detoxification or 
239.11  mental health crisis service or adult or child foster care, or 
239.12  who are providing residential services compensated under group 
239.13  residential housing, may not act as service coordinator for 
239.14  enrollees for whom they provide residential services.  Each 
239.15  managed care organization may develop further criteria for 
239.16  eligible vendors of service coordination during the 
239.17  demonstration period. 
239.18     Subd. 3.  [FEDERAL WAIVERS.] The commissioner shall request 
239.19  any authority from the United States Department of Health and 
239.20  Human Services that is necessary to implement the demonstration 
239.21  project under the medical assistance program, and to combine 
239.22  Medicare and Medicaid funding for service delivery to dual 
239.23  eligibles.  Implementation of these programs may begin without 
239.24  authority to include Medicare funding.  The commissioner may 
239.25  begin enrollment of eligible individuals in managed care 
239.26  organizations upon federal approval, but no earlier than January 
239.27  1, 1998. 
239.28     Subd. 4.  [DEMONSTRATION SITES.] (a) The commissioner shall 
239.29  designate up to five demonstration sites, with the approval of 
239.30  the local agency.  Demonstration sites may include one county or 
239.31  a multicounty group. 
239.32     (b) In each demonstration site, upon federal approval, the 
239.33  commissioner shall give the local agency the option to become 
239.34  the managed care organization for that county before issuing a 
239.35  request for proposals.  If, within the time frame specified by 
239.36  the commissioner, the local agency chooses not to become the 
240.1   managed care organization or a joint purchaser with the state, 
240.2   or federal approval is not granted, the commissioner may issue a 
240.3   request for proposals to solicit contractors. 
240.4      (c) In demonstration sites in which the managed care 
240.5   organization is not the local agency, the commissioner shall 
240.6   require a contract between the local agency and the managed care 
240.7   organization that delineates each entity's role in providing and 
240.8   coordinating services for individuals. 
240.9      Subd. 5.  [CONTRACTS.] The commissioner may contract with 
240.10  any managed care organization that demonstrates the ability to 
240.11  manage services for enrollees covered under this section 
240.12  according to the terms and conditions of the contract with the 
240.13  commissioner.  The commissioner must ensure that the managed 
240.14  care organization has in place an adequate system for the 
240.15  resolution of complaints; involvement of enrollees and their 
240.16  families; the collection and reporting of data; quality of 
240.17  services monitoring and improvement; enrollee education and 
240.18  assistance; and the management of services in coordination with 
240.19  local agencies, health plans, and providers of related services 
240.20  that are not covered under this chapter. 
240.21     Subd. 6.  [ELIGIBILITY AND ENROLLMENT.] The local agency, 
240.22  in conjunction with the commissioner, shall develop a process 
240.23  for individual enrollment into the demonstration project.  
240.24  Enrollment into managed care organizations shall be conducted 
240.25  according to the terms of the federal waiver.  Enrollment of 
240.26  eligible persons under the demonstration project may be phased 
240.27  in, with approval of the commissioner.  The state shall ensure 
240.28  that eligibility for the enrollee is completed by individuals 
240.29  with no service coordination responsibilities for that enrollee 
240.30  as defined in subdivision 12.  When an enrollee leaves a managed 
240.31  care organization, the managed care organization must coordinate 
240.32  with the entity that is assuming responsibility for 
240.33  administering the medical assistance benefit set to ensure 
240.34  continuity of supports and services for the enrollee. 
240.35     Subd. 7.  [EMERGENCY SITUATIONS.] The managed care 
240.36  organization must provide access to emergency care and crisis 
241.1   services.  The managed care organization shall cover necessary 
241.2   services as a result of a medical emergency, even if the 
241.3   services were rendered outside of the managed care organization 
241.4   network.  The managed care organization shall provide for a 
241.5   needs assessment when requested by the enrollee or the 
241.6   enrollee's legal representative in response to a crisis 
241.7   situation, other than a medical emergency, and authorize covered 
241.8   services determined to be needed as a result of the crisis 
241.9   situation.  If the managed care organization has developed a 
241.10  personal support plan for the enrollee, services shall be 
241.11  provided consistent with the plan. 
241.12     Subd. 8.  [CONSUMER CHOICE AND SAFEGUARDS.] (a) The 
241.13  commissioner may require all eligible persons to obtain services 
241.14  covered under this chapter through managed care organizations. 
241.15  The commissioner will encourage demonstration sites to provide 
241.16  enrollees a choice of managed care organizations.  Enrollees 
241.17  shall be given choices among a range of available providers with 
241.18  expertise in serving persons with their category of disability.  
241.19  The commissioner shall ensure that all enrollees have continued 
241.20  access to medically necessary covered services. 
241.21     (b) The commissioner must ensure that a set of enrollee 
241.22  safeguards in the categories of access, choice, comprehensive 
241.23  benefits, legal representation, quardianship, representative 
241.24  payee, quality, rights and appeals, and data collection and 
241.25  confidentiality are in place prior to enrollment of eligible 
241.26  individuals. 
241.27     (c) Within 12 months following initial enrollment into the 
241.28  project, enrollees will be given options to:  change managed 
241.29  care organizations, if multiple managed care organizations are 
241.30  offered for acute or continuing care within a demonstration 
241.31  site; or change primary care provider, if a single managed care 
241.32  organization is offered within a demonstration site.  Enrollees 
241.33  shall also be offered an annual open enrollment period, during 
241.34  which they are permitted to change their managed care 
241.35  organization or primary care provider.  Enrollees shall also be 
241.36  offered an annual open enrollment period during which they are 
242.1   permitted to change their managed care organization or primary 
242.2   care provider. 
242.3      Subd. 9.  [SERVICE DELIVERY.] (a) Managed care 
242.4   organizations shall: 
242.5      (1) provide the medical assistance benefit set.  
242.6   Alternative services are available to enrollees at the option of 
242.7   the managed care organization, and may be provided as specified 
242.8   in the personal support plan; 
242.9      (2) accept the capitation payment from the commissioner in 
242.10  return for the provision of contracted services for enrollees; 
242.11     (3) maintain internal grievance and complaint procedures, 
242.12  including an informal complaint process in which the managed 
242.13  care organization must respond to verbal complaints within ten 
242.14  days and a formal grievance process in which the managed care 
242.15  organization must respond to written complaints within 30 days; 
242.16     (4) at the time of enrollment, inform eligible individuals 
242.17  about the service delivery network, advocacy programs, ombudsman 
242.18  programs, and their right to due process if they experience a 
242.19  problem with the managed care organization or its providers; 
242.20     (5) determine immediate needs, including services, 
242.21  supports, and assessments, within 30 days of enrollment, or 
242.22  within the time frame specified in the contract; 
242.23     (6) assess the need for services of new enrollees within 60 
242.24  days of enrollment, or within a shorter time frame if specified 
242.25  in the contract, and periodically reassess the need for services 
242.26  for all enrollees; 
242.27     (7) ensure the development of a personal support plan for 
242.28  each person within 60 days of enrollment, or within a shorter 
242.29  time frame if specified in the contract, unless otherwise agreed 
242.30  to by the enrollee and their legal representative, if any.  
242.31  Until a personal support plan is developed, enrollees must have 
242.32  access to the same amount, type, setting, duration, and 
242.33  frequency of covered services that they had at the time of 
242.34  enrollment; 
242.35     (8) develop policies to address conflicts of interest, 
242.36  including guardianship and representative payee issues; 
243.1      (9) ensure authorization, arrangement, and continuity of 
243.2   the provision of supports and services identified in the 
243.3   personal support plan; 
243.4      (10) offer service coordination that fulfills the 
243.5   responsibilities under subdivision 12, paragraph (a), and is 
243.6   appropriate to the enrollee's needs, choices, and preferences, 
243.7   including a choice of service coordinator vendors; 
243.8      (11) develop and implement strategies to acknowledge and 
243.9   respect diversity for all enrollees in a manner that affirms 
243.10  their worth and preserves the dignity of individuals, families, 
243.11  and their communities.  Enrollees shall have the right to 
243.12  privacy and to consideration of their health, individuality, and 
243.13  cultural identity as related to their social, psychological, and 
243.14  spiritual and religious well-being; 
243.15     (12) establish a definition and standards to ensure 
243.16  culturally competent service delivery, based on consultation 
243.17  with affected groups; and 
243.18     (13) comply with other requirements as specified in the 
243.19  contract. 
243.20     (b) To the extent that alternatives are approved under 
243.21  subdivision 18, managed care organizations must provide for the 
243.22  health and safety of enrollees and protect the rights to privacy 
243.23  and to provide informed consent. 
243.24     (c) With approval of the commissioner, the managed care 
243.25  organization may contract to provide the full medical assistance 
243.26  benefit set or may contract for acute care services or 
243.27  continuing care services only. 
243.28     Subd. 10.  [CAPITATION PAYMENT.] The commissioner shall 
243.29  develop capitation payment rates for the initial contract period 
243.30  for managed care organizations in consultation with an 
243.31  independent actuary, to ensure that the cost of services under 
243.32  this demonstration project does not exceed the estimated cost 
243.33  for medical assistance services for the covered population under 
243.34  the fee-for-service system for the demonstration period.  Rates 
243.35  will be adjusted within the limits of the available risk 
243.36  adjustment technology, as mandated by section 62Q.03.  In 
244.1   addition, the commissioner shall implement appropriate risk and 
244.2   profit sharing provisions with managed care organizations within 
244.3   the projected budget limits.  The community hospitals operating 
244.4   subsidies contract funds, in the former Moose Lake regional 
244.5   treatment center catchment area, cannot be part of the 
244.6   capitation for any managed care organization in that catchment 
244.7   area.  Payments to providers participating in the project are 
244.8   exempt from the requirements of sections 256.966 and 256B.03, 
244.9   subdivision 2. 
244.10     Subd. 11.  [INTEGRATION OF FUNDING SOURCES.] If the local 
244.11  agency contracts as a managed care organization with the 
244.12  commissioner or enters into a joint purchasing agreement with 
244.13  the commissioner, the local agency may integrate other local, 
244.14  state, and federal funding sources with medical assistance 
244.15  funding.  If the local agency chooses to integrate funding, the 
244.16  managed care organization must comply with the reporting 
244.17  requirements of the commissioner, as specified in the contract 
244.18  to account for federal Medicaid expenditures.  The commissioner, 
244.19  upon the request and concurrence of a local agency, may transfer 
244.20  state grant funds that would otherwise be made available to the 
244.21  local agency to provide continuing care for enrollees to the 
244.22  medical assistance account.  Within the limits of federal 
244.23  authority and available federal funding, the commissioner shall 
244.24  adjust the capitation based on the amount of transfer made under 
244.25  this subdivision. 
244.26     Subd. 12.  [SERVICE COORDINATION.] (a) The service 
244.27  coordinator shall have the knowledge, skills, and abilities to, 
244.28  and is responsible to: 
244.29     (1) arrange for the assessment of supports and services 
244.30  based on the person's strengths, needs, choices, and preferences 
244.31  in life domain areas; 
244.32     (2) develop the personal support plan based on relevant 
244.33  ongoing assessment; 
244.34     (3) arrange for the provision of supports and services, 
244.35  including knowledgeable and skilled specialty services, within 
244.36  the limitations negotiated with the managed care organization; 
245.1      (4) assist the person to maximize informed choice of and 
245.2   control over services and supports; 
245.3      (5) monitor the progress toward achieving the person's 
245.4   outcomes in order to evaluate and adjust the timeliness and 
245.5   adequacy of the implementation of the personal support plan; 
245.6      (6) inform, educate, and assist the person in the exercise 
245.7   of the person's rights and advocate on the person's behalf; 
245.8      (7) facilitate meetings and effectively collaborate with a 
245.9   variety of agencies and persons; 
245.10     (8) solicit and analyze relevant information; 
245.11     (9) communicate effectively with the person and with other 
245.12  individuals participating in the person's plan; 
245.13     (10) educate and communicate to the person about good 
245.14  health care practices and risk to the person's health with 
245.15  certain behaviors; 
245.16     (11) have knowledge of basic enrollee protection 
245.17  requirements, including data privacy; and 
245.18     (12) provide other services as identified in the personal 
245.19  support plan.  
245.20     (b) Each managed care organization must annually evaluate 
245.21  the knowledge, skills, and abilities of the service coordinators 
245.22  in the areas described in paragraph (a).  The managed care 
245.23  organization must take remedial or corrective action if the 
245.24  service coordinator does not fulfill their responsibilities or 
245.25  have adequate knowledge, skills, or abilities in one or more 
245.26  areas. 
245.27     Subd. 13.  [ENROLLEE CERTIFICATE OF COVERAGE.] The managed 
245.28  care organization shall provide a certificate of coverage to 
245.29  each enrollee which describes the benefits covered by the 
245.30  managed care organization and any limitations on those 
245.31  benefits.  This certificate is subject to approval by the 
245.32  commissioner.  The managed care organization must also present 
245.33  evidence of an internal process to approve benefits exceptions 
245.34  under appropriate circumstances. 
245.35     Subd. 14.  [OMBUDSPERSON.] Enrollees shall have access to 
245.36  services established in section 256.031, subdivision 6.  
246.1   Enrollees shall have access to advocacy services provided by the 
246.2   ombudsman for mental health and mental retardation established 
246.3   in sections 245.91 to 245.97.  The managed care ombudsman and 
246.4   the ombudsman for mental health and mental retardation shall 
246.5   coordinate services provided to avoid duplication of services.  
246.6      Subd. 15.  [EXTERNAL ADVOCACY.] In addition to ombudsperson 
246.7   services, enrollees will have access to advocacy services on a 
246.8   local or regional basis, which are independent of the managed 
246.9   care organization, to the extent that funding is available. 
246.10     Subd. 16.  [DUE PROCESS.] Enrollees have the appeal rights 
246.11  specified in section 256.045, subdivision 3a, paragraphs (a), 
246.12  (b), and (c).  Enrollees may choose the conciliation process as 
246.13  outlined under section 256.045, subdivision 4a.  
246.14     Subd. 17.  [SERVICES PENDING APPEAL.] If a person appeals 
246.15  in writing to the state agency on or before the tenth day after 
246.16  the person has received the decision of the managed care 
246.17  organization to reduce, suspend, or terminate ongoing services 
246.18  which the recipient had been receiving, and if the person 
246.19  requests, the managed care organization must continue to provide 
246.20  services at a level equal to the level previously authorized by 
246.21  the managed care organization until the state agency renders its 
246.22  decision.  Prior to January 1, 1998, the commissioner shall 
246.23  establish guidelines for department action to facilitate timely 
246.24  resolution of appeals.  
246.25     Subd. 18.  [APPROVAL OF ALTERNATIVES.] The commissioner may 
246.26  approve alternatives to administrative rules that the 
246.27  commissioner determines are incompatible with the efficient 
246.28  implementation of this demonstration project if the commissioner 
246.29  determines that adequate alternative measures are in place to 
246.30  protect the health, safety, and rights of enrollees, and to 
246.31  provide quality services.  Prior approved waivers, if needed by 
246.32  the demonstration project, shall be extended.  Upon request by 
246.33  the demonstration project, the commissioner will act on a 
246.34  request for alternatives to state rules within 30 days.  The 
246.35  commissioner shall not waive the rights or procedural 
246.36  protections under sections 245.825; 245.91 to 245.97; 252.41, 
247.1   subdivision 9; 256B.092, subdivision 10; 626.556; and 626.557; 
247.2   or procedures for the monitoring of psychotropic medications.  
247.3   Prohibited practices as defined in statutes and rules governing 
247.4   service delivery to persons with disabilities are applicable to 
247.5   services delivered under this demonstration project.  
247.6      The commissioner may exempt counties which are included in 
247.7   the demonstration site from their social services obligations 
247.8   and fiscal sanctions for noncompliance with requirements in laws 
247.9   and rules to the extent that the commissioner determines those 
247.10  obligations are met under this chapter and are incompatible with 
247.11  the implementation of this demonstration project. 
247.12     Subd. 19.  [REPORTING.] Each managed care organization 
247.13  shall submit information as required by the commissioner in the 
247.14  contract.  A managed care organization under contract to provide 
247.15  services must provide the most current listing of the providers 
247.16  who are participating in the plan.  This reporting will be 
247.17  shared with enrollees and the public. 
247.18     Subd. 20.  [QUALITY MANAGEMENT AND EVALUATION.] Local 
247.19  agencies, contracted managed care organizations, consumers, 
247.20  advocates, advocacy organizations, providers, and the department 
247.21  must work together to design, develop, and implement a quality 
247.22  management and evaluation system for each demonstration site 
247.23  which fits into the overall project evaluation framework.  
247.24     The department shall design an evaluation framework that 
247.25  encompasses the array of desired outcomes defined by the managed 
247.26  care organization, including indicators for each outcome, 
247.27  methods of data collection, and performance targets; seek 
247.28  funding for the overall project evaluation; and provide 
247.29  technical assistance to managed care organizations. 
247.30     Subd. 21.  [LIMITATION ON REIMBURSEMENT.] A managed care 
247.31  organization may limit any reimbursement it may be required to 
247.32  pay to providers not employed by or under contract with the 
247.33  managed care organization to the medical assistance rates paid 
247.34  by the commissioner of human services to providers for services 
247.35  to recipients not participating in a managed care organization. 
247.36     Subd. 22.  [COUNTY SOCIAL SERVICES OBLIGATIONS.] Eligible 
248.1   individuals in excluded time, as defined in chapter 256G, at the 
248.2   onset of the demonstration period will remain in excluded time 
248.3   status for the duration of the demonstration project.  For 
248.4   services for enrollees that are outside of the medical 
248.5   assistance benefit set, local agencies must negotiate the 
248.6   provision and payment of services with the county of financial 
248.7   responsibility. 
248.8      Subd. 23.  [MINNESOTA COMMITMENT ACT SERVICES.] Services 
248.9   for enrollees receiving treatment under the Minnesota Commitment 
248.10  Act, chapter 253B, and covered by medical assistance will be 
248.11  considered medically necessary and will be the financial 
248.12  responsibility of the managed care organization.  The local 
248.13  agency shall seek input from the managed care organization in 
248.14  giving the court information about services the enrollee needs 
248.15  and least restrictive alternatives.  Voluntary hospitalization 
248.16  for enrollees at regional treatment centers must be covered by 
248.17  the managed care organization.  The regional treatment center 
248.18  shall not accept a voluntary admission of an enrollee without 
248.19  the authorization of the managed care organization.  An eligible 
248.20  individual will maintain enrollee status while receiving 
248.21  treatment under the Minnesota Commitment Act, or voluntary 
248.22  services in a regional treatment center.  The commissioner may 
248.23  adjust capitation payments, as specified in the contract, for 
248.24  individuals admitted to regional treatment centers. 
248.25     Subd. 24.  [STAKEHOLDER COMMITTEE.] The commissioner shall 
248.26  appoint a stakeholder committee to review and provide 
248.27  recommendations on requests for proposals for managed care 
248.28  organization contracts, alternatives granted under subdivision 
248.29  18, and other demonstration project policies and procedures as 
248.30  requested by the commissioner.  The stakeholder committee shall 
248.31  include representatives from the following stakeholders:  
248.32  enrollees and their family members, advocacy agencies, 
248.33  advocates, service providers, local agencies, state government, 
248.34  and managed care organizations.  The stakeholder committee shall 
248.35  be in operation for the demonstration period. 
248.36                             ARTICLE 6
249.1                        SURCHARGE PROVIDER TAX
249.2      Section 1.  Minnesota Statutes 1996, section 295.50, 
249.3   subdivision 3, is amended to read: 
249.4      Subd. 3.  [GROSS REVENUES.] "Gross revenues" are total 
249.5   amounts received in money or otherwise by: 
249.6      (1) a hospital for patient services; 
249.7      (2) a surgical center for patient services; 
249.8      (3) a health care provider, other than a staff model health 
249.9   carrier, for patient services; 
249.10     (4) a wholesale drug distributor for sale or distribution 
249.11  of legend drugs that are delivered:  (i) to a Minnesota resident 
249.12  by a wholesale drug distributor who is a nonresident pharmacy 
249.13  directly, by common carrier, or by mail; or (ii) in Minnesota by 
249.14  the wholesale drug distributor, by common carrier, or by mail, 
249.15  unless the legend drugs are delivered to another wholesale drug 
249.16  distributor who sells legend drugs exclusively at wholesale.  
249.17  Legend drugs do not include nutritional products as defined in 
249.18  Minnesota Rules, part 9505.0325; 
249.19     (5) a staff model health plan company as gross premiums for 
249.20  enrollees, copayments, deductibles, coinsurance, and fees for 
249.21  patient services covered under its contracts with groups and 
249.22  enrollees; and 
249.23     (6) a pharmacy for medical supplies, appliances, and 
249.24  equipment medical supplies distributor for the sale, rental, 
249.25  lease, or repair of hearing aids and equipment, or prescription 
249.26  eyewear. 
249.27     Sec. 2.  Minnesota Statutes 1996, section 295.50, 
249.28  subdivision 4, is amended to read: 
249.29     Subd. 4.  [HEALTH CARE PROVIDER.] (a) "Health care 
249.30  provider" means: 
249.31     (1) a person furnishing any or all of the following goods 
249.32  or services directly to a patient or consumer:  medical, 
249.33  surgical, optical, visual, dental, hearing, nursing services, 
249.34  drugs, medical supplies, medical appliances, and equipment when 
249.35  provided by a hospital, surgical center, or health care 
249.36  provider, laboratory, diagnostic or therapeutic services, or any 
250.1   goods and services not listed above that qualify for 
250.2   reimbursement under the medical assistance program provided 
250.3   under chapter 256B.  For purposes of this clause, "directly to a 
250.4   patient or consumer" includes goods and services provided in 
250.5   connection with independent medical examinations under section 
250.6   65B.56 or other examinations for purposes of litigation or 
250.7   insurance claims; 
250.8      (2) a staff model health plan company; or 
250.9      (3) an ambulance service required to be licensed. 
250.10     (b) Health care provider does not include 
250.11  hospitals, medical supplies distributors, nursing homes licensed 
250.12  under chapter 144A or licensed in any other jurisdiction, 
250.13  pharmacies, surgical centers, bus and taxicab transportation, or 
250.14  any other providers of transportation services other than 
250.15  ambulance services required to be licensed, supervised living 
250.16  facilities for persons with mental retardation or related 
250.17  conditions, licensed under Minnesota Rules, parts 4665.0100 to 
250.18  4665.9900, residential care homes licensed under chapter 144B, 
250.19  board and lodging establishments providing only custodial 
250.20  services that are licensed under chapter 157 and registered 
250.21  under section 157.17 to provide supportive services or health 
250.22  supervision services, adult foster homes as defined in Minnesota 
250.23  Rules, part 9555.5105, day training and habilitation services 
250.24  for adults with mental retardation and related conditions as 
250.25  defined in section 252.41, subdivision 3, and boarding care 
250.26  homes, as defined in Minnesota Rules, part 4655.0100. 
250.27     Sec. 3.  Minnesota Statutes 1996, section 295.50, is 
250.28  amended by adding a subdivision to read: 
250.29     Subd. 7a.  [MEDICAL SUPPLIES DISTRIBUTOR.] A medical 
250.30  supplies distributor is a person who sells, rents, leases, or 
250.31  repairs hearing aids and equipment, or prescription eyewear. 
250.32     Sec. 4.  Minnesota Statutes 1996, section 295.51, 
250.33  subdivision 1, is amended to read: 
250.34     Subdivision 1.  [BUSINESS TRANSACTIONS IN MINNESOTA.] A 
250.35  hospital, surgical center, pharmacy medical supplies 
250.36  distributor, or health care provider is subject to tax under 
251.1   sections 295.50 to 295.59 if it is "transacting business in 
251.2   Minnesota."  A hospital, surgical center, pharmacy medical 
251.3   supplies distributor, or health care provider is transacting 
251.4   business in Minnesota if it maintains contacts with or presence 
251.5   in the state of Minnesota sufficient to permit taxation of gross 
251.6   revenues received for patient services under the United States 
251.7   Constitution. 
251.8      Sec. 5.  Minnesota Statutes 1996, section 295.52, 
251.9   subdivision 1, is amended to read: 
251.10     Subdivision 1.  [HOSPITAL TAX.] A tax is imposed on each 
251.11  hospital equal to two 3.88 percent of its gross revenues. 
251.12     Sec. 6.  Minnesota Statutes 1996, section 295.52, 
251.13  subdivision 1b, is amended to read: 
251.14     Subd. 1b.  [PHARMACY MEDICAL SUPPLIES DISTRIBUTOR TAX.] A 
251.15  tax is imposed on each pharmacy medical supplies distributor 
251.16  equal to two percent of its gross revenues. 
251.17     Sec. 7.  Minnesota Statutes 1996, section 295.53, 
251.18  subdivision 3, is amended to read: 
251.19     Subd. 3.  [SEPARATE STATEMENT OF TAX.] A hospital, surgical 
251.20  center, pharmacy medical supplies distributor, or health care 
251.21  provider must not state the tax obligation under section 295.52 
251.22  in a deceptive or misleading manner.  It must not separately 
251.23  state tax obligations on bills provided to patients, consumers, 
251.24  or other payers when the amount received for the services or 
251.25  goods is not subject to tax.  
251.26     Pharmacies that separately state the tax obligations on 
251.27  bills provided to consumers or to other payers who purchase 
251.28  legend drugs may state the tax obligation as two percent of the 
251.29  wholesale price of the legend drugs.  Pharmacies must not state 
251.30  the tax obligation as two percent of the retail price.  
251.31     Whenever the commissioner determines that a person has 
251.32  engaged in any act or practice constituting a violation of this 
251.33  subdivision, the commissioner may bring an action in the name of 
251.34  the state in the district court of the appropriate county to 
251.35  enjoin the act or practice and to enforce compliance with this 
251.36  subdivision, or the commissioner may refer the matter to the 
252.1   attorney general or the county attorney of the appropriate 
252.2   county.  Upon a proper showing, a permanent or temporary 
252.3   injunction, restraining order, or other appropriate relief must 
252.4   be granted.  
252.5      Sec. 8.  Minnesota Statutes 1996, section 295.53, 
252.6   subdivision 5, is amended to read: 
252.7      Subd. 5.  [EXEMPTIONS FOR PHARMACIES MEDICAL SUPPLIES 
252.8   DISTRIBUTORS.] (a) Pharmacies Medical supplies distributors may 
252.9   exclude from their gross revenues subject to tax payments 
252.10  for medical supplies, appliances, and devices hearing aids and 
252.11  equipment, and prescription eyewear that are exempt under 
252.12  subdivision 1, clauses (1), (2), (4), (5), (7), (8), and (13). 
252.13     (b) Pharmacies Medical supplies distributors may exclude 
252.14  from their gross revenues subject to tax payments received 
252.15  for medical supplies, appliances, and equipment hearing aids and 
252.16  equipment, and prescription eyewear delivered outside of 
252.17  Minnesota. 
252.18     Sec. 9.  Minnesota Statutes 1996, section 295.54, 
252.19  subdivision 1, is amended to read: 
252.20     Subdivision 1.  [TAXES PAID TO ANOTHER STATE.] A hospital, 
252.21  surgical center, pharmacy medical supplies distributor, or 
252.22  health care provider that has paid taxes to another state or 
252.23  province or territory of Canada measured by gross revenues and 
252.24  is subject to tax under sections 295.52 to 295.59 on the same 
252.25  gross revenues is entitled to a credit for the tax legally due 
252.26  and paid to another state or province or territory of Canada to 
252.27  the extent of the lesser of (1) the tax actually paid to the 
252.28  other state or province or territory of Canada, or (2) the 
252.29  amount of tax imposed by Minnesota on the gross revenues subject 
252.30  to tax in the other taxing jurisdictions. 
252.31     Sec. 10.  Minnesota Statutes 1996, section 295.58, is 
252.32  amended to read: 
252.33     295.58 [DEPOSIT OF REVENUES AND PAYMENT OF REFUNDS.] 
252.34     The commissioner shall deposit all 48.4536 percent of the 
252.35  hospital tax revenues, including penalties and interest, derived 
252.36  from the in the general fund.  The commissioner shall deposit 
253.1   remaining revenues, including penalties and interest, of the 
253.2   hospital tax and all other taxes imposed by sections 295.50 
253.3   to 295.57 295.59 and from the insurance premiums tax on health 
253.4   maintenance organizations, community integrated service 
253.5   networks, integrated service networks, and nonprofit health 
253.6   service plan corporations in the health care access fund in the 
253.7   state treasury.  Refunds of 48.4536 percent of overpayments of 
253.8   the hospital tax must be paid from the health care access fund 
253.9   in the state treasury general fund.  Refunds of overpayments of 
253.10  remaining revenues of the hospital tax and the other taxes 
253.11  imposed by sections 295.50 to 295.59 must be paid from the 
253.12  health care access fund in the state treasury.  There is 
253.13  annually appropriated from the health care access fund and the 
253.14  general fund to the commissioner of revenue the amount necessary 
253.15  to make any refunds required under section 295.54 this chapter. 
253.16     Sec. 11.  Minnesota Statutes 1996, section 295.582, is 
253.17  amended to read: 
253.18     295.582 [AUTHORITY.] 
253.19     (a) A hospital, surgical center, pharmacy medical supplies 
253.20  distributor, or health care provider that is subject to a tax 
253.21  under section 295.52, or a pharmacy that has paid additional 
253.22  expense transferred under this section by a wholesale drug 
253.23  distributor, may transfer additional expense generated by 
253.24  section 295.52 obligations on to all third-party contracts for 
253.25  the purchase of health care services on behalf of a patient or 
253.26  consumer.  The additional expense transferred to the third-party 
253.27  purchaser must not exceed two percent of the gross revenues 
253.28  received under the third-party contract, and two percent of 
253.29  copayments and deductibles paid by the individual patient or 
253.30  consumer.  The expense must not be generated on revenues derived 
253.31  from payments that are excluded from the tax under section 
253.32  295.53.  All third-party purchasers of health care services 
253.33  including, but not limited to, third-party purchasers regulated 
253.34  under chapter 60A, 62A, 62C, 62D, 62H, 62N, 64B, 65A, 65B, 79, 
253.35  or 79A, or under section 471.61 or 471.617, must pay the 
253.36  transferred expense in addition to any payments due under 
254.1   existing contracts with the hospital, surgical center, pharmacy 
254.2   medical supplies distributor, or health care provider, to the 
254.3   extent allowed under federal law.  A third-party purchaser of 
254.4   health care services includes, but is not limited to, a health 
254.5   carrier, integrated service network, or community integrated 
254.6   service network that pays for health care services on behalf of 
254.7   patients or that reimburses, indemnifies, compensates, or 
254.8   otherwise insures patients for health care services.  A 
254.9   third-party purchaser shall comply with this section regardless 
254.10  of whether the third-party purchaser is a for-profit, 
254.11  not-for-profit, or nonprofit entity.  A wholesale drug 
254.12  distributor may transfer additional expense generated by section 
254.13  295.52 obligations to entities that purchase from the 
254.14  wholesaler, and the entities must pay the additional expense.  
254.15  Nothing in this section limits the ability of a hospital, 
254.16  surgical center, pharmacy medical supplies distributor, 
254.17  wholesale drug distributor, or health care provider to recover 
254.18  all or part of the section 295.52 obligation by other methods, 
254.19  including increasing fees or charges. 
254.20     (b) Each third-party purchaser regulated under any chapter 
254.21  cited in paragraph (a) shall include with its annual renewal for 
254.22  certification of authority or licensure documentation indicating 
254.23  compliance with paragraph (a).  If the commissioner responsible 
254.24  for regulating the third-party purchaser finds at any time that 
254.25  the third-party purchaser has not complied with paragraph (a), 
254.26  the commissioner may by order fine or censure the third-party 
254.27  purchaser or revoke or suspend the certificate of authority or 
254.28  license of the third-party purchaser to do business in this 
254.29  state.  The third-party purchaser may appeal the commissioner's 
254.30  order through a contested case hearing in accordance with 
254.31  chapter 14. 
254.32     Sec. 12.  [REPEALER.] 
254.33     (a) Minnesota Statutes 1996, section 256.9657, subdivision 
254.34  2, is repealed.  
254.35     (b) Minnesota Statutes 1996, section 295.54, subdivision 2, 
254.36  is repealed. 
255.1      Sec. 13.  [EFFECTIVE DATE.] 
255.2      Sections 1 to 4, 6 to 9, 11, and 12, paragraph (b), are 
255.3   effective for gross revenues received after December 31, 1997. 
255.4      Sections 5 and 10 are effective for gross revenues received 
255.5   on or after June 1, 1997. 
255.6      Section 12, paragraph (a), is effective July 1, 1997.  All 
255.7   surcharge amounts billed and due prior to July 1, 1997, but 
255.8   remaining unpaid, are liabilities to be collected by the 
255.9   commissioner of human services.  Interest and penalties continue 
255.10  to accrue on unpaid amounts. 
255.11                             ARTICLE 7
255.12                         HEALTH DEPARTMENT
255.13     Section 1.  Minnesota Statutes 1996, section 103I.101, 
255.14  subdivision 6, is amended to read: 
255.15     Subd. 6.  [FEES FOR VARIANCES.] The commissioner shall 
255.16  charge a nonrefundable application fee of $100 $120 to cover the 
255.17  administrative cost of processing a request for a variance or 
255.18  modification of rules adopted by the commissioner under this 
255.19  chapter. 
255.20     Sec. 2.  Minnesota Statutes 1996, section 103I.208, is 
255.21  amended to read: 
255.22     103I.208 [WELL NOTIFICATION FILING FEES AND PERMIT FEES.] 
255.23     Subdivision 1.  [WELL NOTIFICATION FEE.] The well 
255.24  notification fee to be paid by a property owner is:  
255.25     (1) for a new well, $100 $120, which includes the state 
255.26  core function fee; and 
255.27     (2) for a well sealing, $20, which includes the state core 
255.28  function fee; and 
255.29     (3) for construction of a dewatering well, $100 $120, which 
255.30  includes the state core function fee, for each well except a 
255.31  dewatering project comprising five or more wells shall be 
255.32  assessed a single fee of $500 $600 for the wells recorded on the 
255.33  notification. 
255.34     Subd. 1a.  [STATE CORE FUNCTION FEE.] The state core 
255.35  function fee to be collected by the state and delegated boards 
255.36  of health and used to support state core functions is: 
256.1      (1) for a new well, $20; and 
256.2      (2) for a well sealing, $5.  
256.3      Subd. 2.  [PERMIT FEE.] The permit fee to be paid by a 
256.4   property owner is:  
256.5      (1) for a well that is not in use under a maintenance 
256.6   permit, $100 annually; 
256.7      (2) for construction of a monitoring well, $100 $120, which 
256.8   includes the state core function fee; 
256.9      (3) for a monitoring well that is unsealed under a 
256.10  maintenance permit, $100 annually; 
256.11     (4) for monitoring wells used as a leak detection device at 
256.12  a single motor fuel retail outlet or petroleum bulk storage site 
256.13  excluding tank farms, the construction permit fee is $100 $120 
256.14  per site regardless of the number of wells constructed on the 
256.15  site, and the annual fee for a maintenance permit for unsealed 
256.16  monitoring wells is $100 per site regardless of the number of 
256.17  monitoring wells located on site; 
256.18     (5) for a groundwater thermal exchange device, in addition 
256.19  to the notification fee for wells, $100 $120; 
256.20     (6) for a vertical heat exchanger, $100 $120; and 
256.21     (7) for a dewatering well that is unsealed under a 
256.22  maintenance permit, $100 annually for each well, except a 
256.23  dewatering project comprising more than five wells shall be 
256.24  issued a single permit for $500 annually for wells recorded on 
256.25  the permit; and 
256.26     (8) for excavating holes for the purpose of installing 
256.27  elevator shafts, $120 for each hole. 
256.28     Sec. 3.  Minnesota Statutes 1996, section 103I.401, 
256.29  subdivision 1, is amended to read: 
256.30     Subdivision 1.  [PERMIT REQUIRED.] (a) A person may not 
256.31  construct an elevator shaft until a permit for the hole or 
256.32  excavation is issued by the commissioner.  
256.33     (b) The fee for excavating holes for the purpose of 
256.34  installing elevator shafts is $100 for each hole. 
256.35     (c) The elevator shaft permit preempts local permits except 
256.36  local building permits, and counties and home rule charter or 
257.1   statutory cities may not require a permit for elevator shaft 
257.2   holes or excavations. 
257.3      Sec. 4.  Minnesota Statutes 1996, section 144.121, 
257.4   subdivision 1, is amended to read: 
257.5      Subdivision 1.  [REGISTRATION; FEES.] The fee for the 
257.6   registration for X-ray machines and radium other sources of 
257.7   ionizing radiation required to be registered under rules adopted 
257.8   by the state commissioner of health pursuant to section 144.12, 
257.9   shall be in an amount prescribed by the commissioner as 
257.10  described in subdivision 1a pursuant to section 144.122.  The 
257.11  first fee for registration shall be due on January 1, 1975.  The 
257.12  registration shall expire and be renewed as prescribed by the 
257.13  commissioner pursuant to section 144.122. 
257.14     Sec. 5.  Minnesota Statutes 1996, section 144.121, is 
257.15  amended by adding a subdivision to read: 
257.16     Subd. 1a.  [FEES FOR X-RAY MACHINES AND OTHER SOURCES OF 
257.17  IONIZING RADIATION.] After July 1, 1997, a facility with x-ray 
257.18  machines or other sources of ionizing radiation must biennially 
257.19  pay an initial or biennial renewal registration fee consisting 
257.20  of a base facility fee of $132 and an additional fee for each 
257.21  x-ray machine or other source of ionizing radiation as follows:  
257.22    (1) medical or veterinary equipment                   $106
257.23    (2) dental x-ray equipment                            $ 66
257.24    (3) accelerator                                       $132
257.25    (4) radiation therapy equipment                       $132
257.26    (5) x-ray equipment not used on humans or animals     $106
257.27    (6) devices with sources of ionizing radiation
257.28        not used on humans or animals                     $106
257.29    (7) sources of radium                                 $198
257.30     Sec. 6.  Minnesota Statutes 1996, section 144.121, is 
257.31  amended by adding a subdivision to read: 
257.32     Subd. 1b.  [PENALTY FEE FOR LATE REGISTRATION.] 
257.33  Applications for initial or renewal registrations submitted to 
257.34  the commissioner after the time specified by the commissioner 
257.35  shall be accompanied by a penalty fee of $20 in addition to the 
257.36  fees prescribed in subdivision 1a. 
258.1      Sec. 7.  Minnesota Statutes 1996, section 144.121, is 
258.2   amended by adding a subdivision to read: 
258.3      Subd. 1c.  [FEE FOR X-RAY MACHINES AND OTHER SOURCES OF 
258.4   IONIZING RADIATION REGISTERED DURING LAST 12 MONTHS OF A 
258.5   BIENNIAL REGISTRATION PERIOD.] The initial registration fee of 
258.6   x-ray machines or other sources of radiation required to be 
258.7   registered during the last 12 months of a biennial registration 
258.8   period will be 50 percent of the applicable registration fee 
258.9   prescribed in subdivision 1a. 
258.10     Sec. 8.  [144.1223] [ENCLOSED ARENAS.] 
258.11     Subdivision 1.  [DEFINITIONS.] For purposes of this 
258.12  section, the following terms have the meanings given them. 
258.13     (a) "Enclosed arena" means any building with a roof and a 
258.14  majority of the sides closed which is used for sports events, 
258.15  entertainment, and demonstrations.  
258.16     (b) "Ice arena" means any building with a roof and a 
258.17  majority of the sides closed which contains an ice rink.  
258.18     (c) "Motorized event" means sporting events or 
258.19  entertainment at which internal combustion engine vehicles or 
258.20  equipment are used for racing competition or for demonstration 
258.21  including, but not limited to, trucks, midget cars, motorcycles, 
258.22  and snowmobiles.  
258.23     (d) "Resurfacing machine" means an ice resurfacing machine. 
258.24     Subd. 2.  [CERTIFICATION; INSPECTION AND MONITORING.] The 
258.25  commissioner of health shall be responsible for the promulgation 
258.26  of rules and enforcement of applicable laws and rules relating 
258.27  to the operation and maintenance of enclosed arenas that operate 
258.28  internal combustion engines.  Periodic inspection and monitoring 
258.29  of the enclosed arenas shall be made by the commissioner of 
258.30  health.  The frequency of the inspection shall be prescribed by 
258.31  the commissioner on the basis of the frequency of use of 
258.32  internal combustion engines and as required in subdivision 3.  
258.33     Subd. 3.  [FEES.] After October 1, 1997, enclosed arenas 
258.34  must annually pay an initial or annual renewal certification fee 
258.35  as follows:  
258.36     (a) $450 per sheet of ice for ice arenas that use internal 
259.1   combustion engine ice resurfacing machines provided that each 
259.2   ice arena is inspected no less than once every year.  
259.3      (b) $200 per sheet of ice for ice arenas that use electric 
259.4   ice resurfacing machines while other ice cleaning and 
259.5   preparation equipment use internal combustion engines provided 
259.6   that each ice arena is inspected no less than once every two 
259.7   years.  
259.8      (c) $50 per sheet of ice for ice arenas that use both 
259.9   electric ice resurfacing machines and electric equipment to 
259.10  clean and prepare ice provided that each ice arena is inspected 
259.11  no less than once every four years.  
259.12     (d) $250 per motorized event held in an enclosed arena; fee 
259.13  is payable 30 days prior to the date of the event provided that 
259.14  the enclosed arena is inspected no less than once per event.  
259.15     Subd. 4.  [FEES FOR VARIANCES.] The commissioner shall 
259.16  charge a nonrefundable application fee of $100 to cover the 
259.17  administrative cost of processing a request for a variance from 
259.18  rules adopted by the commissioner under this chapter.  
259.19     Subd. 5.  [PRORATING AND LATE FEE.] The fee for the initial 
259.20  certification fee for an enclosed arena shall be prorated for 
259.21  less than 50 percent of the certification period to the amount 
259.22  of 50 percent of the fee as described in subdivision 3.  A late 
259.23  fee of $15 shall be assessed to renewal certifications submitted 
259.24  to the commissioner after the time specified by the commissioner 
259.25  in addition to the fees prescribed in subdivision 3. 
259.26     Sec. 9.  Minnesota Statutes 1996, section 144.226, 
259.27  subdivision 1, is amended to read: 
259.28     Subdivision 1.  [WHICH SERVICES ARE FOR FEE.] The fees 
259.29  for any of the following services shall be the following or in 
259.30  an amount prescribed by rule of the commissioner: 
259.31     (a) The fee for the issuance of a certified copy or 
259.32  certification of a vital record, or a certification that the 
259.33  record cannot be found; shall be $8.  No fee shall be charged 
259.34  for a certified birth or death record which is reissued within 
259.35  one year of the original issue, if the previously issued record 
259.36  is surrendered. 
260.1      (b) The fee for the replacement of a birth certificate; 
260.2   record for all events except adoption shall be $20. 
260.3      (c) The fee for the filing of a delayed registration of 
260.4   birth or death; shall be $20. 
260.5      (d) The alteration, correction, or completion fee for the 
260.6   amendment of any vital record, provided that when requested more 
260.7   than one year after the filing of the record shall be $20.  No 
260.8   fee shall be charged for an alteration, correction, or 
260.9   completion amendment requested within one year after the filing 
260.10  of the certificate; and. 
260.11     (e) The fee for the verification of information from or 
260.12  noncertified copies of vital records shall be $8 when the 
260.13  applicant furnishes the specific information to locate the 
260.14  record.  When the applicant does not furnish specific 
260.15  information, the fee shall be $20 per hour for staff time 
260.16  expended.  Specific information shall include the correct date 
260.17  of the event and the correct name of the registrant.  Fees 
260.18  charged shall approximate the costs incurred in searching and 
260.19  copying the records.  The fee shall be payable at time of 
260.20  application. 
260.21     (f) The fee for issuance of a certified or noncertified 
260.22  copy of any document on file pertaining to a vital record or a 
260.23  certification that the record cannot be found shall be $8. 
260.24     Sec. 10.  Minnesota Statutes 1996, section 144.226, is 
260.25  amended by adding a subdivision to read: 
260.26     Subd. 4.  [VITAL RECORDS SURCHARGE.] In addition to any fee 
260.27  prescribed under subdivision 1, there shall be a nonrefundable 
260.28  surcharge of $3 for each certified and noncertified birth or 
260.29  death record.  The local or state registrar shall forward this 
260.30  amount to the state treasurer to be deposited into the state 
260.31  government special revenue fund.  This surcharge shall not be 
260.32  charged under those circumstances in which no fee for a birth or 
260.33  death record is permitted under subdivision 1, paragraph (a).  
260.34  This surcharge requirement will expire June 30, 2001. 
260.35     Sec. 11.  Minnesota Statutes 1996, section 153A.17, is 
260.36  amended to read: 
261.1      153A.17 [EXPENSES; FEES.] 
261.2      The expenses for administering the certification 
261.3   requirements including the complaint handling system for hearing 
261.4   aid dispensers in sections 153A.14 and 153A.15 and the consumer 
261.5   information center under section 153A.18 must be paid from 
261.6   initial application and examination fees, renewal fees, 
261.7   penalties, and fines.  All fees are nonrefundable.  The 
261.8   certificate application fee is $280 $425, the examination fee is 
261.9   $200 for the written portion and $200 for the practical portion 
261.10  each time one or the other is taken, and the trainee application 
261.11  fee is $100, except that the certification application or 
261.12  renewal fee for a registered audiologist is $280 minus reduced 
261.13  by the amount of the audiologist registration fee of $101 set in 
261.14  section 148.5194, subdivision 2.  In addition, both 
261.15  certification and examination fees are subject to 
261.16  Notwithstanding the policy set forth in section 16A.1285, 
261.17  subdivision 2, a surcharge of $60 $250 shall be paid at the time 
261.18  of application or renewal in each of the next five years to 
261.19  recover, over a five-year period, the commissioner's accumulated 
261.20  direct expenditures for administering the requirements of this 
261.21  chapter, but not registration of hearing instrument dispensers 
261.22  under section 214.13, before November 1, 1994.  The penalty fee 
261.23  for late submission of a renewal application is $70 $108.  All 
261.24  fees, penalties, and fines received must be deposited in the 
261.25  state government special revenue fund.  The commissioner may 
261.26  prorate the certification fee for new applicants based on the 
261.27  number of quarters remaining in the annual certification period. 
261.28     Sec. 12.  Minnesota Statutes 1996, section 157.16, 
261.29  subdivision 3, is amended to read: 
261.30     Subd. 3.  [ESTABLISHMENT FEES; DEFINITIONS.] (a) The 
261.31  following fees are required for food and beverage service 
261.32  establishments, hotels, motels, lodging establishments, and 
261.33  resorts licensed under this chapter.  Food and beverage service 
261.34  establishments must pay the highest applicable fee under 
261.35  paragraph (e), clause (1), (2), (3), or (4), and establishments 
261.36  serving alcohol must pay the highest applicable fee under 
262.1   paragraph (e), clause (6) or (7). 
262.2      (b) All food and beverage service establishments, except 
262.3   special event food stands, and all hotels, motels, lodging 
262.4   establishments, and resorts shall pay an annual base fee of $100.
262.5      (c) A special event food stand shall pay a flat fee of $60 
262.6   annually.  "Special event food stand" means a fee category where 
262.7   food is prepared or served in conjunction with celebrations, 
262.8   county fairs, or special events from a special event food stand 
262.9   as defined in section 157.15. 
262.10     (d) A special event food stand-limited shall pay a flat fee 
262.11  of $30. 
262.12     (e) In addition to the base fee in paragraph (b), each food 
262.13  and beverage service establishment, other than a special event 
262.14  food stand, and each hotel, motel, lodging establishment, and 
262.15  resort shall pay an additional annual fee for each fee category 
262.16  as specified in this paragraph: 
262.17     (1) Limited food menu selection, $30.  "Limited food menu 
262.18  selection" means a fee category that provides one or more of the 
262.19  following: 
262.20     (i) prepackaged food that receives heat treatment and is 
262.21  served in the package; 
262.22     (ii) frozen pizza that is heated and served; 
262.23     (iii) a continental breakfast such as rolls, coffee, juice, 
262.24  milk, and cold cereal; 
262.25     (iv) soft drinks, coffee, or nonalcoholic beverages; or 
262.26     (v) cleaning for eating, drinking, or cooking utensils, 
262.27  when the only food served is prepared off site. 
262.28     (2) Small menu selection with limited equipment 
262.29  establishment, including boarding establishments, $55.  
262.30  "Small menu selection with limited equipment establishment" 
262.31  means a fee category that has no salad bar and meets one or more 
262.32  of the following: 
262.33     (i) possesses food service equipment that consists of no 
262.34  more than a deep fat fryer, a grill, two hot holding containers, 
262.35  and one or more microwave ovens; 
262.36     (ii) serves dipped ice cream or soft serve frozen desserts; 
263.1      (iii) serves breakfast in an owner-occupied bed and 
263.2   breakfast establishment; or 
263.3      (iv) is a boarding establishment; or 
263.4      (v) meets the equipment criteria in clause (3), item (i) or 
263.5   (ii), and has a maximum patron seating capacity of not more than 
263.6   50.  
263.7      (3) Small Medium establishment with full menu selection, 
263.8   $150.  "Small Medium establishment with full menu selection" 
263.9   means a fee category that meets one or more of the following: 
263.10     (i) possesses food service equipment that includes a range, 
263.11  oven, steam table, salad bar, or salad preparation area; 
263.12     (ii) possesses food service equipment that includes more 
263.13  than one deep fat fryer, one grill, or two hot holding 
263.14  containers; or 
263.15     (iii) is an establishment where food is prepared at one 
263.16  location and served at one or more separate locations; or 
263.17     (iv) establishments meeting criteria in clause (2), item 
263.18  (v), are not included in this category.  
263.19     (4) Large establishment with full menu selection, $250.  
263.20  "Large establishment with full menu selection" means either: 
263.21     (i) a fee category that (A) meets the criteria in clause 
263.22  (3), items (i) or (ii), for a small medium establishment with 
263.23  full menu selection, (B) seats more than 175 people, and (C) 
263.24  offers the full menu selection an average of five or more days a 
263.25  week during the weeks of operation; or 
263.26     (ii) a fee category that (A) meets the criteria in clause 
263.27  (3), item (iii), for a small medium establishment with full menu 
263.28  selection, and (B) prepares and serves 500 or more meals per day.
263.29     (5) Other food and beverage service, including food carts, 
263.30  mobile food units, seasonal temporary food stands, and seasonal 
263.31  permanent food stands, $30. 
263.32     (6) Beer or wine table service, $30.  "Beer or wine table 
263.33  service" means a fee category where the only alcoholic beverage 
263.34  service is beer or wine, served to customers seated at tables. 
263.35     (7) Alcoholic beverage service, other than beer or wine 
263.36  table service, $75. 
264.1      "Alcohol beverage service, other than beer or wine table 
264.2   service" means a fee category where alcoholic mixed drinks are 
264.3   served or where beer or wine are served from a bar. 
264.4      (8) Lodging per sleeping accommodation unit, $4, including 
264.5   hotels, motels, lodging establishments, and resorts, up to a 
264.6   maximum of $400.  "Lodging per sleeping accommodation unit" 
264.7   means a fee category including the number of guest rooms, 
264.8   cottages, or other rental units of a hotel, motel, lodging 
264.9   establishment, or resort; or the number of beds in a dormitory. 
264.10     (9) First public swimming pool, $100; each additional 
264.11  public swimming pool, $50.  "Public swimming pool" means a fee 
264.12  category that has the meaning given in Minnesota Rules, part 
264.13  4717.0250, subpart 8. 
264.14     (10) First spa, $50; each additional spa, $25.  "Spa pool" 
264.15  means a fee category that has the meaning given in Minnesota 
264.16  Rules, part 4717.0250, subpart 9. 
264.17     (11) Private sewer or water, $30.  "Individual private 
264.18  water" means a fee category with a water supply other than a 
264.19  community public water supply as defined in Minnesota Rules, 
264.20  chapter 4720.  "Individual private sewer" means a fee category 
264.21  with an individual sewage treatment system which uses subsurface 
264.22  treatment and disposal. 
264.23     (f) A fee is not required for a food and beverage service 
264.24  establishment operated by a school as defined in sections 120.05 
264.25  and 120.101. 
264.26     (g) A fee of $150 for review of the construction plans must 
264.27  accompany the initial license application for food and beverage 
264.28  service establishments, hotels, motels, lodging establishments, 
264.29  or resorts. 
264.30     (h) When existing food and beverage service establishments, 
264.31  hotels, motels, lodging establishments, or resorts are 
264.32  extensively remodeled, a fee of $150 must be submitted with the 
264.33  remodeling plans. 
264.34     (i) Seasonal temporary food stands, special event food 
264.35  stands, and special event food stands-limited are not required 
264.36  to submit construction or remodeling plans for review. 
265.1      Sec. 13.  Minnesota Statutes 1996, section 256B.69, is 
265.2   amended by adding a subdivision to read: 
265.3      Subd. 5c.  [MEDICAL EDUCATION AND RESEARCH TRUST FUND.] (a) 
265.4   Beginning January 1998 and each month after, the commissioner of 
265.5   human services shall transfer 4.2 percent of the prepaid medical 
265.6   assistance and prepaid general assistance medical care payment, 
265.7   excluding nursing facility and elderly waiver payments, and 2.2 
265.8   percent of the MinnesotaCare payment made in the same month to 
265.9   the medical education and research trust fund established under 
265.10  section 62J.69.  
265.11     (b) The base rate prior to plan specific adjustments for MA 
265.12  and GAMC capitation rates shall be reduced 6.3 percent for 
265.13  Hennepin county, two percent for the remaining metropolitan 
265.14  counties, and 1.6 percent for the nonmetropolitan Minnesota 
265.15  counties, and 2.2 percent for MinnesotaCare in all counties.  
265.16     (c) The payment to the fund shall not be adjusted for 
265.17  subsequent changes to the capitation payments.  This subdivision 
265.18  shall be effective for the month a federal waiver allows federal 
265.19  financial participation in the transfer.  If the waiver delays 
265.20  implementation beyond January 1998, the transfer shall include 
265.21  all payments that would have been made under this subdivision if 
265.22  approved in the waiver.