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SF 703

as introduced - 87th Legislature (2011 - 2012) Posted on 06/06/2012 02:37pm

KEY: stricken = removed, old language. underscored = added, new language.

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Current Version - as introduced

1.1A bill for an act
1.2relating to human services; streamlining county duties;amending Minnesota
1.3Statutes 2010, sections 119B.09, by adding a subdivision; 256B.69, by adding
1.4a subdivision; 256D.09, subdivision 6; 256D.49, subdivision 3; 256J.38,
1.5subdivision 1; 393.07, subdivision 10; proposing coding for new law in
1.6Minnesota Statutes, chapter 256; repealing Minnesota Rules, part 9500.1243,
1.7subpart 3.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9    Section 1. Minnesota Statutes 2010, section 119B.09, is amended by adding a
1.10subdivision to read:
1.11    Subd. 4b. Electronic verification. County agencies are authorized to use all
1.12automated databases containing information regarding recipients' or applicants' income
1.13in order to determine eligibility for the child care assistance under this chapter. The
1.14information is sufficient to determine eligibility.

1.15    Sec. 2. [256.0145] COMPUTER SYSTEM SIMPLIFICATION.
1.16    Subdivision 1. Reprogram MAXIS. The commissioner of human services, as part
1.17of the enterprise architecture project, shall reprogram the MAXIS computer system to
1.18automatically apply child support payments entered into the PRISM computer system to
1.19a MAXIS case file.
1.20    Subd. 2. Program the social service information system. The commissioner of
1.21human services shall require all prepaid health plans to accept a billing format identical to
1.22the MMIS billing format for payment to county agencies for mental health targeted case
1.23management claims, elderly waiver claims, and other claim categories as added to the
2.1benefit set. The commissioner shall make any necessary changes to the SSIS system to
2.2bill prepaid health plans for those claims.

2.3    Sec. 3. [256.0147] COUNTY ELECTRONIC VERIFICATION TO DETERMINE
2.4ELIGIBILITY.
2.5County agencies are authorized to use all automated databases containing
2.6information regarding recipients' or applicants' income in order to determine eligibility
2.7for child support enforcement, general assistance, Minnesota supplemental aid, and
2.8programs, services, and supports under chapter 256J. The information is sufficient to
2.9determine eligibility. State and county caseworkers shall not be cited in error, as part of
2.10any audit and quality review, for an incorrect eligibility determination based on current but
2.11inaccurate information received through a state-approved electronic data source. If there
2.12is a potential error, the reviewer must forward a corrective action notice to the caseworker
2.13for proper and immediate correction. If the state or county caseworker has data available
2.14through client reporting, or other means, that are more accurate than state-approved
2.15electronic data, the caseworker should use the more accurate information in making the
2.16eligibility determination.

2.17    Sec. 4. Minnesota Statutes 2010, section 256B.69, is amended by adding a subdivision
2.18to read:
2.19    Subd. 30. Provision of required materials in alternative formats. (a) For the
2.20purposes of this subdivision, "alternative format" means a medium other than paper and
2.21"prepaid health plan" means managed care plans and county-based purchasing plans.
2.22(b) A prepaid health plan may provide in an alternative format a provider directory
2.23and certificate of coverage, or materials otherwise required to be available in writing
2.24under Code of Federal Regulations, title 42, section 438.10, or under the commissioner's
2.25contract with the prepaid health plan, if the following conditions are met:
2.26(1) the prepaid health plan, local agency, or commissioner, as applicable, informs the
2.27enrollee that:
2.28(i) provision in an alternative format is available and the enrollee affirmatively
2.29requests of the prepaid health plan that the provider directory, certificate of coverage,
2.30or materials otherwise required under Code of Federal Regulations, title 42, section
2.31438.10, or under the commissioner's contract with the prepaid health plan be provided in
2.32an alternative format; and
2.33(ii) a record of the enrollee request is retained by the prepaid health plan in the
2.34form of written direction from the enrollee or a documented telephone call followed by a
3.1confirmation letter to the enrollee from the prepaid health plan that explains that the
3.2enrollee may change the request at any time;
3.3(2) the materials are sent to a secured mailbox and are made available at a
3.4password-protected secured Web site or on a data storage device if the materials contain
3.5enrollee data that is individually identifiable;
3.6(3) the enrollee is provided a customer service number on the enrollee's membership
3.7card that may be called to request a paper version of the materials provided in an
3.8alternative format; and
3.9(4) the materials provided in an alternative format meets all other requirements of
3.10the commissioner regarding content, size of the typeface, and any required time frames
3.11for distribution. "Required time frames for distribution" must permit sufficient time for
3.12prepaid health plans to distribute materials in alternative formats upon receipt of enrollees'
3.13requests for such materials.
3.14(c) A prepaid health plan may provide in an alternative format its primary care
3.15network list to the commissioner and to local agencies within its service area. The
3.16commissioner or local agency, as applicable, shall inform a potential enrollee of the
3.17availability of a prepaid health plan's primary care network list in an alternative format. If
3.18the potential enrollee requests an alternative format of the prepaid health plan's primary
3.19care network list, a record of that request shall be retained by the commissioner or local
3.20agency. The potential enrollee is permitted to withdraw the request at any time.
3.21The prepaid health plan shall submit sufficient paper versions of the primary
3.22care network list to the commissioner and to local agencies within its service area to
3.23accommodate potential enrollee requests for paper versions of the primary care network
3.24list.
3.25(d) A prepaid health plan may provide in an alternative format materials otherwise
3.26required to be available in writing under Code of Federal Regulations, title 42, section
3.27438.10, or under the commissioner's contract with the prepaid health plan, if the conditions
3.28of paragraphs (b), (c), and (e), are met for persons who are:
3.29(1) enrolled in integrated Medicare and Medicaid programs under subdivisions
3.3023 and 28;
3.31(2) enrolled in managed care long-term care programs under subdivision 6b;
3.32(3) dually eligible for Medicare and medical assistance; or
3.33(4) in the waiting period for Medicare.
3.34(e) The commissioner shall seek any federal Medicaid waivers within 90 days after
3.35the effective date of this subdivision that are necessary to provide alternative formats of
3.36required material to enrollees of prepaid health plans as authorized under this subdivision.
4.1(f) The commissioner shall consult with managed care plans, county-based
4.2purchasing plans, counties, and other interested parties to determine how materials
4.3required to be made available to enrollees under Code of Federal Regulations, title 42,
4.4section 438.10, or under the commissioner's contract with a prepaid health plan may
4.5be provided in an alternative format on the basis that the enrollee has not opted in to
4.6receive the alternative format. The commissioner shall consult with managed care
4.7plans, county-based purchasing plans, counties, and other interested parties to develop
4.8recommendations relating to the conditions that must be met for an opt-out process
4.9to be granted.

4.10    Sec. 5. Minnesota Statutes 2010, section 256D.09, subdivision 6, is amended to read:
4.11    Subd. 6. Recovery of overpayments. (a) If an amount of general assistance or
4.12family general assistance is paid to a recipient in excess of the payment due, it shall be
4.13recoverable by the county agency. The agency shall give written notice to the recipient of
4.14its intention to recover the overpayment.
4.15(b) Except as provided for interim assistance in section 256D.06, subdivision
4.165, when an overpayment occurs, the county agency shall recover the overpayment
4.17from a current recipient by reducing the amount of aid payable to the assistance unit of
4.18which the recipient is a member, for one or more monthly assistance payments, until
4.19the overpayment is repaid. All county agencies in the state shall reduce the assistance
4.20payment by three percent of the assistance unit's standard of need in nonfraud cases and
4.21ten percent where fraud has occurred, or the amount of the monthly payment, whichever is
4.22less, for all overpayments.
4.23(c) In cases when there is both an overpayment and underpayment, the county
4.24agency shall offset one against the other in correcting the payment.
4.25(d) Overpayments may also be voluntarily repaid, in part or in full, by the individual,
4.26in addition to the aid reductions provided in this subdivision, to include further voluntary
4.27reductions in the grant level agreed to in writing by the individual, until the total amount
4.28of the overpayment is repaid.
4.29(e) The county agency shall make reasonable efforts to recover overpayments to
4.30persons no longer on assistance under standards adopted in rule by the commissioner
4.31of human services. The county agency need not attempt to recover overpayments of
4.32less than $35 paid to an individual no longer on assistance if the individual does not
4.33receive assistance again within three years, unless the individual has been convicted of
4.34violating section 256.98.
5.1(f) Establishment of an overpayment is limited to 12 months prior to the month of
5.2discovery due to agency error and six years prior to the month of discovery due to client
5.3error or an intentional program violation determined under section 256.046.

5.4    Sec. 6. Minnesota Statutes 2010, section 256D.49, subdivision 3, is amended to read:
5.5    Subd. 3. Overpayment of monthly grants and recovery of ATM errors. (a) When
5.6the county agency determines that an overpayment of the recipient's monthly payment
5.7of Minnesota supplemental aid has occurred, it shall issue a notice of overpayment
5.8to the recipient. If the person is no longer receiving Minnesota supplemental aid, the
5.9county agency may request voluntary repayment or pursue civil recovery. If the person is
5.10receiving Minnesota supplemental aid, the county agency shall recover the overpayment
5.11by withholding an amount equal to three percent of the standard of assistance for the
5.12recipient or the total amount of the monthly grant, whichever is less.
5.13(b) Establishment of an overpayment is limited to 12 months from the date of
5.14discovery due to agency error and six years due to client error. No limit applies to the
5.15establishment period if the overpayment is due to an intentional program violation or if
5.16the client wrongfully obtained assistance.
5.17(c) For recipients receiving benefits via electronic benefit transfer, if the overpayment
5.18is a result of an automated teller machine (ATM) dispensing funds in error to the recipient,
5.19the agency may recover the ATM error by immediately withdrawing funds from the
5.20recipient's electronic benefit transfer account, up to the amount of the error.
5.21(d) Residents of nursing homes, regional treatment centers, and licensed residential
5.22facilities with negotiated rates shall not have overpayments recovered from their personal
5.23needs allowance.

5.24    Sec. 7. Minnesota Statutes 2010, section 256J.38, subdivision 1, is amended to read:
5.25    Subdivision 1. Scope of overpayment. (a) When a participant or former participant
5.26receives an overpayment due to agency, client, or ATM error, or due to assistance received
5.27while an appeal is pending and the participant or former participant is determined
5.28ineligible for assistance or for less assistance than was received, the county agency must
5.29recoup or recover the overpayment using the following methods:
5.30(1) reconstruct each affected budget month and corresponding payment month;
5.31(2) use the policies and procedures that were in effect for the payment month; and
5.32(3) do not allow employment disregards in section 256J.21, subdivision 3 or 4, in the
5.33calculation of the overpayment when the unit has not reported within two calendar months
5.34following the end of the month in which the income was received.
6.1(b) Establishment of an overpayment is limited to 12 months prior to the month of
6.2discovery due to agency error and six years prior to the month of discovery due to client
6.3error or an intentional program violation determined under section 256.046.

6.4    Sec. 8. Minnesota Statutes 2010, section 393.07, subdivision 10, is amended to read:
6.5    Subd. 10. Food stamp program; Maternal and Child Nutrition Act. (a) The local
6.6social services agency shall establish and administer the food stamp program according
6.7to rules of the commissioner of human services, the supervision of the commissioner as
6.8specified in section 256.01, and all federal laws and regulations. The commissioner of
6.9human services shall monitor food stamp program delivery on an ongoing basis to ensure
6.10that each county complies with federal laws and regulations. Program requirements to be
6.11monitored include, but are not limited to, number of applications, number of approvals,
6.12number of cases pending, length of time required to process each application and deliver
6.13benefits, number of applicants eligible for expedited issuance, length of time required
6.14to process and deliver expedited issuance, number of terminations and reasons for
6.15terminations, client profiles by age, household composition and income level and sources,
6.16and the use of phone certification and home visits. The commissioner shall determine the
6.17county-by-county and statewide participation rate.
6.18(b) On July 1 of each year, the commissioner of human services shall determine a
6.19statewide and county-by-county food stamp program participation rate. The commissioner
6.20may designate a different agency to administer the food stamp program in a county if the
6.21agency administering the program fails to increase the food stamp program participation
6.22rate among families or eligible individuals, or comply with all federal laws and regulations
6.23governing the food stamp program. The commissioner shall review agency performance
6.24annually to determine compliance with this paragraph.
6.25(c) A person who commits any of the following acts has violated section 256.98 or
6.26609.821 , or both, and is subject to both the criminal and civil penalties provided under
6.27those sections:
6.28(1) obtains or attempts to obtain, or aids or abets any person to obtain by means of a
6.29willful statement or misrepresentation, or intentional concealment of a material fact, food
6.30stamps or vouchers issued according to sections 145.891 to 145.897 to which the person
6.31is not entitled or in an amount greater than that to which that person is entitled or which
6.32specify nutritional supplements to which that person is not entitled; or
6.33(2) presents or causes to be presented, coupons or vouchers issued according to
6.34sections 145.891 to 145.897 for payment or redemption knowing them to have been
6.35received, transferred or used in a manner contrary to existing state or federal law; or
7.1(3) willfully uses, possesses, or transfers food stamp coupons, authorization to
7.2purchase cards or vouchers issued according to sections 145.891 to 145.897 in any manner
7.3contrary to existing state or federal law, rules, or regulations; or
7.4(4) buys or sells food stamp coupons, authorization to purchase cards, other
7.5assistance transaction devices, vouchers issued according to sections 145.891 to 145.897,
7.6or any food obtained through the redemption of vouchers issued according to sections
7.7145.891 to 145.897 for cash or consideration other than eligible food.
7.8(d) A peace officer or welfare fraud investigator may confiscate food stamps,
7.9authorization to purchase cards, or other assistance transaction devices found in the
7.10possession of any person who is neither a recipient of the food stamp program nor
7.11otherwise authorized to possess and use such materials. Confiscated property shall be
7.12disposed of as the commissioner may direct and consistent with state and federal food
7.13stamp law. The confiscated property must be retained for a period of not less than 30 days
7.14to allow any affected person to appeal the confiscation under section 256.045.
7.15(e) Food stamp overpayment claims which are due in whole or in part to client error
7.16shall be established by the county agency for a period of six years from the date of any
7.17resultant overpayment Establishment of an overpayment is limited to 12 months prior to
7.18the month of discovery due to agency error and six years prior to the month of discovery
7.19due to client error or an intentional program violation determined under section 256.046.
7.20(f) With regard to the federal tax revenue offset program only, recovery incentives
7.21authorized by the federal food and consumer service shall be retained at the rate of 50
7.22percent by the state agency and 50 percent by the certifying county agency.
7.23(g) A peace officer, welfare fraud investigator, federal law enforcement official,
7.24or the commissioner of health may confiscate vouchers found in the possession of any
7.25person who is neither issued vouchers under sections 145.891 to 145.897, nor otherwise
7.26authorized to possess and use such vouchers. Confiscated property shall be disposed of
7.27as the commissioner of health may direct and consistent with state and federal law. The
7.28confiscated property must be retained for a period of not less than 30 days.
7.29(h) The commissioner of human services may seek a waiver from the United States
7.30Department of Agriculture to allow the state to specify foods that may and may not be
7.31purchased in Minnesota with benefits funded by the federal Food Stamp Program. The
7.32commissioner shall consult with the members of the house of representatives and senate
7.33policy committees having jurisdiction over food support issues in developing the waiver.
7.34The commissioner, in consultation with the commissioners of health and education, shall
7.35develop a broad public health policy related to improved nutrition and health status. The
7.36commissioner must seek legislative approval prior to implementing the waiver.

8.1    Sec. 9. ALIGNMENT OF VERIFICATION AND REDETERMINATION
8.2POLICIES.
8.3The commissioner of human services shall develop recommendations to align
8.4eligibility verification procedures for all health care, economic assistance, food support,
8.5child support enforcement, and child care programs. The commissioner shall report back
8.6to the chairs of the legislative committees with jurisdiction over these issues by January
8.715, 2012, with recommendations and draft legislation to implement the alignment of
8.8eligibility verifications.

8.9    Sec. 10. ALTERNATIVE STRATEGIES FOR CERTAIN
8.10REDETERMINATIONS.
8.11The commissioner of human services shall develop and implement by January 15,
8.122012, a simplified process to redetermine eligibility for recipient populations in the medical
8.13assistance, Minnesota supplemental aid, food support, and group residential housing
8.14programs who are eligible based upon disability, age, or chronic medical conditions, and
8.15who are expected to experience minimal change in income or assets from month to month.
8.16The commissioner shall apply for any federal waivers needed to implement this section.

8.17    Sec. 11. REPEALER.
8.18Minnesota Rules, part 9500.1243, subpart 3, is repealed.

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