4th Engrossment - 79th Legislature (1995 - 1996) 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 human services administration; life skills and 1.4 self-sufficiency; childrens' programs; economic 1.5 self-sufficiency; medical assistance and general 1.6 assistance medicare; long-term care; community mental 1.7 health and regional treatment centers; health 1.8 department; child support enforcement; department of 1.9 human services flexibility reforms; appropriating 1.10 money; amending Minnesota Statutes 1994, sections 1.11 14.03, subdivision 3; 16B.08, subdivision 5; 62A.045; 1.12 62A.046; 62A.048; 62A.27; 62N.381, subdivisions 2, 3, 1.13 and 4; 144.0721, by adding subdivisions; 144.0723, 1.14 subdivisions 1, 2, 3, 4, and 6; 144.122; 144.226, 1.15 subdivision 1; 144.56, by adding a subdivision; 1.16 144.562, subdivision 2; 144.702, subdivision 2; 1.17 144.801, subdivisions 3 and 5; 144.802; 144.803; 1.18 144.804; 144.806; 144.807; 144.808; 144.809; 144.8091; 1.19 144.8093; 144.8095; 144A.071, subdivisions 2, 3, 4a, 1.20 and by adding a subdivision; 144A.073, subdivisions 1, 1.21 2, 3, 4, 5, 8, and by adding a subdivision; 144A.31, 1.22 subdivision 2a; 144A.33, subdivision 3; 144A.43, 1.23 subdivision 3; 144A.47; 144B.01, subdivision 5; 1.24 144C.01, subdivision 2; 144C.05, subdivision 1; 1.25 144C.07; 144C.08; 144C.09, subdivision 2; 144C.10; 1.26 145A.15; 147.01, subdivision 6; 148.921, subdivision 1.27 2; 157.03; 171.07, by adding a subdivision; 198.003, 1.28 subdivisions 3 and 4; 245.041; 245.4871, subdivisions 1.29 12, 33a, and by adding a subdivision; 245.4873, 1.30 subdivisions 2 and 6; 245.4874; 245.4875, subdivision 1.31 2, and by adding a subdivision; 245.4878; 245.4882, 1.32 subdivision 5; 245.4885, subdivision 2; 245.4886, by 1.33 adding a subdivision; 245.492, subdivisions 2, 6, 9, 1.34 and 23; 245.493, subdivision 2; 245.4932, subdivisions 1.35 1, 2, 3, and 4; 245.494, subdivisions 1, 2, and 3; 1.36 245.495; 245.496, subdivision 3, and by adding a 1.37 subdivision; 245.825; 245A.02, by adding a 1.38 subdivision; 245A.03, subdivision 2a; 245A.04, 1.39 subdivisions 3, 3b, 7, and 9; 245A.06, subdivisions 2, 1.40 4, and by adding a subdivision; 245A.07, subdivision 1.41 3; 245A.09, by adding subdivisions; 245A.14, 1.42 subdivisions 6 and 7; 246.18, subdivision 4, and by 1.43 adding a subdivision; 246.23, subdivision 2; 246.56, 1.44 by adding a subdivision; 252.27, subdivisions 1, 1a, 1.45 2a, and by adding subdivisions; 252.275, subdivisions 1.46 3, 4, and 8; 252.292, subdivision 4; 252.46, 2.1 subdivisions 1, 3, 6, 17, and by adding subdivisions; 2.2 253B.091; 254A.17, subdivision 3; 254B.02, subdivision 2.3 1; 254B.05, subdivisions 1 and 4; 256.014, subdivision 2.4 1; 256.015, subdivisions 1, 2, and 7; 256.025, 2.5 subdivisions 1, 2, and 3; 256.026; 256.034, 2.6 subdivision 1; 256.045, subdivisions 3, 4, 4a, and 5; 2.7 256.12, subdivision 14; 256.73, subdivisions 2 and 3a; 2.8 256.736, subdivisions 3 and 13; 256.74, subdivision 1, 2.9 and by adding a subdivision; 256.76, subdivision 1; 2.10 256.8711; 256.9353, subdivision 8; 256.9365; 256.9657, 2.11 subdivisions 3 and 4; 256.9685, subdivision 1b, and by 2.12 adding subdivisions; 256.969, subdivisions 1, 2b, 9, 2.13 10, 16, and by adding subdivisions; 256.975, by adding 2.14 a subdivision; 256.98, subdivisions 1 and 8; 256.983, 2.15 subdivision 4; 256B.042, subdivision 2; 256B.055, 2.16 subdivision 12; 256B.056, subdivision 4, and by adding 2.17 a subdivision; 256B.0575; 256B.059, subdivisions 1, 3, 2.18 and 5; 256B.0595, subdivisions 1, 2, 3, and 4; 2.19 256B.06, subdivision 4; 256B.0625, subdivisions 5, 8, 2.20 8a, 13, 13a, 17, 18, 19a, 37, and by adding 2.21 subdivisions; 256B.0627, subdivisions 1, 2, 4, and 5; 2.22 256B.0628, subdivision 2, and by adding a subdivision; 2.23 256B.0641, subdivision 1; 256B.0911, subdivisions 2, 2.24 2a, 3, 4, and 7; 256B.0913, subdivisions 4, 5, 8, 12, 2.25 14, and by adding subdivisions; 256B.0915, 2.26 subdivisions 2, 3, 5, and by adding subdivisions; 2.27 256B.092, subdivision 4, and by adding a subdivision; 2.28 256B.093, subdivisions 1, 2, 3, and by adding a 2.29 subdivision; 256B.15, subdivisions 1a, 2, and by 2.30 adding a subdivision; 256B.19, subdivisions 1b, 1c, 2.31 and 1d; 256B.27, subdivision 2a; 256B.431, 2.32 subdivisions 2b, 2j, 15, 17, 23, and by adding a 2.33 subdivision; 256B.432, subdivisions 1, 2, 3, 5, and 6; 2.34 256B.49, subdivision 1, and by adding subdivisions; 2.35 256B.501, subdivisions 1, 3, 3c, 3g, 8, and by adding 2.36 subdivisions; 256B.69, subdivisions 4, 5, 6, 9, and by 2.37 adding subdivisions; 256D.02, subdivision 5; 256D.03, 2.38 subdivisions 3, 3b, and 4; 256D.05, subdivision 7; 2.39 256D.36, subdivision 1; 256D.385; 256D.405, 2.40 subdivision 3; 256D.425, subdivision 1, and by adding 2.41 a subdivision; 256D.435, subdivisions 1, 3, 4, 5, 6, 2.42 and by adding a subdivision; 256D.44, subdivisions 1, 2.43 2, 3, 4, 5, and 6; 256D.45, subdivision 1; 256D.46, 2.44 subdivisions 1 and 2; 256D.48, subdivision 1; 256E.08, 2.45 subdivision 6; 256E.115; 256F.01; 256F.02; 256F.03, 2.46 subdivision 5, and by adding a subdivision; 256F.04, 2.47 subdivisions 1 and 2; 256F.05, subdivisions 2, 3, 4, 2.48 5, 7, 8, and by adding a subdivision; 256F.06, 2.49 subdivisions 1, 2, and 4; 256F.09; 256H.01, 2.50 subdivisions 9 and 12; 256H.02; 256H.03, subdivisions 2.51 1, 2a, 4, 6, and by adding a subdivision; 256H.05, 2.52 subdivision 6; 256H.08; 256H.11, subdivision 1; 2.53 256H.12, subdivisions 1, 3, and by adding a 2.54 subdivision; 256H.15, subdivision 1; 256H.18; 256H.20, 2.55 subdivision 3a; 256I.03, subdivision 5, and by adding 2.56 a subdivision; 256I.04, subdivisions 2b and 3; 2.57 256I.05, subdivisions 1, 1a, and 5; 256I.06, 2.58 subdivisions 2 and 6; 257.3571, subdivision 1; 2.59 257.3572; 257.3577, subdivision 1; 257.55, subdivision 2.60 1; 257.57, subdivision 2; 257.62, subdivisions 1, 5, 2.61 and 6; 257.64, subdivision 3; 257.69, subdivisions 1 2.62 and 2; 393.07, subdivisions 5 and 10; 393.12; 447.32, 2.63 subdivision 5; 501B.89, subdivision 1, and by adding a 2.64 subdivision; 518.171, subdivisions 1, 3, 4, 5, 7, and 2.65 8; 518.611, subdivisions 2 and 4; 518.613, subdivision 2.66 7; 518.615, subdivision 3; 524.6-207; 550.37, 2.67 subdivision 14; and Laws 1993, First Special Session 2.68 chapter 1, article 7, section 51, subdivision 5; and 2.69 article 8, section 30, subdivision 2; proposing coding 2.70 for new law in Minnesota Statutes, chapters 144; 145; 2.71 157; 214; 245; 245A; 256; and 256B; proposing coding 3.1 for new law as Minnesota Statutes, chapters 144D; and 3.2 144E; repealing Minnesota Statutes 1994, sections 3.3 38.161; 38.162; 62C.141; 62C.143; 62D.106; 62E.04, 3.4 subdivisions 9 and 10; 144.8097; 144A.31, subdivisions 3.5 2b, 4, 5, 6, and 7; 157.01; 157.02; 157.031; 157.04; 3.6 157.045; 157.05; 157.08; 157.12; 157.13; 157.14; 3.7 245.492, subdivision 20; 245.825, subdivision 2; 3.8 245.98, subdivision 3; 252.275, subdivisions 4a and 3.9 10; 256.851; 256D.35, subdivisions 14 and 19; 256D.36, 3.10 subdivision 1a; 256D.37; 256D.425, subdivision 3; 3.11 256D.435, subdivisions 2, 7, 8, 9, and 10; 256D.44, 3.12 subdivision 7; 256E.06, subdivisions 12 and 13; 3.13 256F.05, subdivisions 2a and 4a; 256F.06, subdivision 3.14 3; 256F.09, subdivision 4; and 256H.03, subdivisions 2 3.15 and 5. 3.16 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 3.17 ARTICLE 1 3.18 APPROPRIATIONS 3.19 Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 3.20 The sums shown in the columns marked "APPROPRIATIONS" are 3.21 appropriated from the general fund, or any other fund named, to 3.22 the agencies and for the purposes specified in the following 3.23 sections of this article, to be available for the fiscal years 3.24 indicated for each purpose. The figures "1996" and "1997" where 3.25 used in this article, mean that the appropriation or 3.26 appropriations listed under them are available for the fiscal 3.27 year ending June 30, 1996, or June 30, 1997, respectively. 3.28 Where a dollar amount appears in parentheses, it means a 3.29 reduction of an appropriation. 3.30 SUMMARY BY FUND 3.31 APPROPRIATIONS BIENNIAL 3.32 1996 1997 TOTAL 3.33 General $2,402,943,000 $2,598,629,000 $5,001,572,000 3.34 Local Government 3.35 Trust Fund 50,499,000 -0- 50,499,000 3.36 State Government 3.37 Special Revenue 24,853,000 24,830,000 49,683,000 3.38 Metropolitan Landfill 3.39 Contingency Action Fund 193,000 193,000 386,000 3.40 Trunk Highway 1,513,000 1,513,000 3,026,000 3.41 Special Revenue 8,000 8,000 16,000 3.42 TOTAL 2,480,009,000 2,625,173,000 5,105,182,000 3.43 APPROPRIATIONS 3.44 Available for the Year 3.45 Ending June 30 3.46 1996 1997 4.1 Sec. 2. COMMISSIONER OF 4.2 HUMAN SERVICES 4.3 Subdivision 1. Total 4.4 Appropriation 2,395,537,000 2,540,250,000 4.5 Summary by Fund 4.6 General 2,345,038,000 2,540,250,000 4.7 Local Government 4.8 Trust Fund 50,499,000 -0- 4.9 Subd. 2. Finance and Management 4.10 General 4.11 20,126,000 21,396,000 4.12 [RECEIPTS FOR SYSTEMS PROJECTS.] 4.13 Appropriations and federal receipts for 4.14 information system projects for MAXIS, 4.15 electronic benefit system, social 4.16 services information system, child 4.17 support enforcement, and Minnesota 4.18 medicaid information system (MMIS II) 4.19 must be deposited in the state system 4.20 account authorized in Minnesota 4.21 Statutes, section 256.014. Money 4.22 appropriated for computer projects 4.23 approved by the information policy 4.24 office, funded by the legislature, and 4.25 approved by the commissioner of finance 4.26 may be transferred from one project to 4.27 another and from development to 4.28 operations as the commissioner of human 4.29 services considers necessary. Any 4.30 unexpended balance in the appropriation 4.31 for these projects does not cancel but 4.32 is available for ongoing development 4.33 and operations. 4.34 [COMMUNICATION COSTS.] The commissioner 4.35 shall continue to operate the 4.36 department of human services 4.37 communication systems account 4.38 established in Laws 1993, First Special 4.39 Session chapter 1, article 1, section 4.40 2, subdivision 2, to manage shared 4.41 communication costs necessary for the 4.42 operation of the programs the 4.43 commissioner supervises. The 4.44 commissioner may distribute the costs 4.45 of operating and maintaining 4.46 communication systems to participants 4.47 in a manner that reflects actual system 4.48 usage. Costs may include acquisition, 4.49 licensing, insurance, maintenance, 4.50 repair, staff time, and other direct 4.51 costs as determined by the 4.52 commissioner. The commissioner may 4.53 accept on behalf of the state any gift, 4.54 bequest, devise, or personal property 4.55 of any kind or money tendered to the 4.56 state for any lawful purpose pertaining 4.57 to the communication activities of the 4.58 department. Any money so received must 4.59 be deposited in the department of human 4.60 services communication systems 4.61 account. Money collected by the 4.62 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 (2) 5.11 reports generated by the payment and 5.12 eligibility systems must be deposited 5.13 in the state systems account authorized 5.14 in Minnesota Statutes, section 5.15 256.014. 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 [SOCIAL SERVICES INFORMATION PROJECT.] 5.21 If the commissioner proceeds with the 5.22 development and implementation of the 5.23 social services information system 5.24 (SSIS), the commissioner shall report 5.25 annually by February 1 on the status of 5.26 the project to the chairs of the house 5.27 health and human services committee and 5.28 of the senate health care and family 5.29 services committees. This report must 5.30 include an explanation of the linkages 5.31 between the SSIS and the MAXIS and MMIS 5.32 computer systems. The SSIS project 5.33 must not result in an increase in the 5.34 permanent staff of the department of 5.35 human services. 5.36 [PRINTING COSTS.] In order to reduce 5.37 printing costs, the commissioner shall 5.38 solicit bids for printing from inmate 5.39 work programs operated by the 5.40 department of corrections. 5.41 Subd. 3. Life Skills 5.42 Self-Sufficiency 5.43 114,755,000 120,918,000 5.44 Summary by Fund 5.45 General 64,256,000 120,918,000 5.46 Local Government 5.47 Trust 50,499,000 -0- 5.48 The amounts that may be spent from this 5.49 appropriation for each purpose are as 5.50 follows: 5.51 (a) Semi-Independent Living 5.52 Services (SILS) Grants 5.53 4,766,000 4,819,000 5.54 (b) Chemical Dependency 5.55 Consolidated Treatment 5.56 41,230,000 45,080,000 5.57 (c) Deaf and Hard of Hearing 6.1 Services Grants 6.2 501,000 501,000 6.3 (d) Community Social Services Grants 6.4 51,476,000 52,902,000 6.5 Summary by Fund 6.6 General 977,000 52,902,000 6.7 Local Government 6.8 Trust 50,499,000 -0- 6.9 [CSSA APPROPRIATION.] The increased 6.10 appropriation available in fiscal year 6.11 1996 and thereafter must be used to 6.12 increase each county's aid 6.13 proportionately over the aid received 6.14 in calendar year 1994. 6.15 (e) Consumer Support 6.16 125,000 1,832,000 6.17 (f) Developmental Disabilities 6.18 Family Support Grants 6.19 1,599,000 1,074,000 6.20 (g) Aging Ombudsman 6.21 166,000 166,000 6.22 (h) Aging Grants 6.23 4,103,000 4,103,000 6.24 (i) American Indian Chemical 6.25 Dependency Grants and Chemical 6.26 Dependency Special Grants 6.27 2,265,000 2,265,000 6.28 (j) Chemical Dependency 6.29 Consolidated Treatment - Nonentitled 6.30 2,100,000 2,100,000 6.31 (k) Administration and Other Grants 6.32 6,424,000 6,076,000 6.33 [CROSS-CULTURAL TRAINING.] Of this 6.34 appropriation, $50,000 each year is for 6.35 cross-cultural training for deaf and 6.36 hard of hearing children and their 6.37 families and is available only upon the 6.38 receipt of $25,000 each year in 6.39 nonstate matching funds. 6.40 [INDIAN ELDERS.] The Minnesota board on 6.41 aging shall provide staff out of the 6.42 available appropriation to support the 6.43 Indian elders coordinator position. 6.44 [USE OF MENTAL HEALTH COLLABORATIVE 6.45 FUNDS.] Once a children's mental health 6.46 collaborative has been formed, the 6.47 commissioner may provide and a 7.1 collaborative may receive funding for 7.2 two years for planning and 7.3 implementation purposes. This does not 7.4 preclude existing collaboratives from 7.5 getting additional start-up funds. 7.6 [CHEMICAL DEPENDENCY RATE FREEZE.] 7.7 Beginning January 1, 1996, rates for 7.8 chemical dependency treatment services 7.9 provided according to Minnesota 7.10 Statutes, chapter 254B, shall be the 7.11 same as those rates negotiated 7.12 according to Minnesota Statutes, 7.13 section 254B.03, subdivision 1, 7.14 paragraph (b), and effective January 1, 7.15 1995. Rates for vendors under 7.16 Minnesota Statutes, chapter 254B, who 7.17 are enrolled after January 1, 1995, 7.18 shall not be higher than the statewide 7.19 average rate for vendors licensed at 7.20 the same level of care. Counties and 7.21 providers shall not negotiate an 7.22 increase in rates between January 1, 7.23 1995, and December 31, 1997. 7.24 [SILS TRANSFER.] (a) For the purpose of 7.25 transferring certain persons from the 7.26 semi-independent living services (SILS) 7.27 program to the home and community-based 7.28 waivered services program for persons 7.29 with mental retardation or related 7.30 conditions, the amount of funds 7.31 transferred between the SILS account or 7.32 the state community social services 7.33 account and the state medical 7.34 assistance account shall be based on 7.35 each county's participation in 7.36 transferring persons to the waivered 7.37 services program. No person for whom 7.38 these funds are transferred shall be 7.39 required to obtain a new living 7.40 arrangement, notwithstanding Minnesota 7.41 Statutes, section 252.28, subdivision 7.42 3, paragraph (4), and Minnesota Rules, 7.43 parts 9525.1800, subpart 25a, and 7.44 9525.1869, subpart 6. When supported 7.45 living services are provided to persons 7.46 for whom these funds are transferred, 7.47 the commissioner may substitute the 7.48 licensing standards of Minnesota Rules, 7.49 parts 9525.0500 to 9525.0660, for parts 7.50 9525.2000 to 9525.2140, if the services 7.51 remain nonresidential as defined in 7.52 Minnesota Statutes, section 245A.02, 7.53 subdivision 10. For the purposes of 7.54 Minnesota Statutes, chapter 256G, when 7.55 a service is provided under these 7.56 substituted licensing standards, the 7.57 status of residence of the recipient of 7.58 that service shall continue to be 7.59 considered excluded time. 7.60 (b) Contingent upon continuing federal 7.61 approval of expanding eligibility for 7.62 home and community-based services for 7.63 persons with mental retardation or 7.64 related conditions, the commissioner 7.65 shall reduce the state SILS payments to 7.66 each county by the total medical 7.67 assistance expenditures for 7.68 nonresidential services attributable to 8.1 former SILS recipients transferred by 8.2 the county to the home and 8.3 community-based services program for 8.4 persons with mental retardation or 8.5 related conditions. Of the reduced 8.6 SILS payments determined above, the 8.7 commissioner shall transfer to the 8.8 state medical assistance account an 8.9 amount equal to the nonfederal share of 8.10 the nonresidential services under the 8.11 home and community-based services for 8.12 persons with mental retardation or 8.13 related conditions. Of the remaining 8.14 reduced SILS payments, 80 percent shall 8.15 be returned to the SILS grant program 8.16 to provide additional SILS services and 8.17 20 percent shall be transferred to the 8.18 general fund. 8.19 [NEW ICF/MR.] For the fiscal year 8.20 ending June 30, 1996, a newly 8.21 constructed or newly established 8.22 intermediate care facility for persons 8.23 with mental retardation that is 8.24 developed and financed during that 8.25 period shall not be subject to the 8.26 equity requirements in Minnesota 8.27 Statutes, section 256B.501, subdivision 8.28 11, paragraph (d), or to Minnesota 8.29 Rules, part 9553.0060, subpart 3, item 8.30 F, provided that the provider's 8.31 interest rate does not exceed the 8.32 interest rate available through state 8.33 agency tax exempt financing. 8.34 [ICF/MR RECEIVERSHIP.] For the fiscal 8.35 year ending June 30, 1996, if a 8.36 facility which is in receivership under 8.37 Minnesota Statutes, section 245A.12 or 8.38 245A.13, is sold to an unrelated 8.39 organization: (a) the facility shall 8.40 be considered a newly established 8.41 facility for rate setting purposes, 8.42 notwithstanding any provisions to the 8.43 contrary in Minnesota Statutes, section 8.44 256B.501, subdivision 11; and (b) the 8.45 facility's historical basis for the 8.46 physical plant, land, and land 8.47 improvements for each facility must not 8.48 exceed the prior owner's aggregate 8.49 historical basis for these same assets 8.50 for each facility. The allocation of 8.51 the purchase price between land, land 8.52 improvements, and physical plant shall 8.53 be based on the real estate appraisal 8.54 using the depreciated replacement cost 8.55 method. 8.56 [GRH TO CSSA TRANSFER.] For the fiscal 8.57 year ending June 30, 1995, the 8.58 commissioner may transfer funds from 8.59 the group residential housing (GRH) 8.60 account to county community social 8.61 services act (CSSA) grants to provide 8.62 continuous funding for persons no 8.63 longer eligible for GRH payments for 8.64 the following reasons: they reside in 8.65 a setting with only a semi-independent 8.66 living services license; or they reside 8.67 in family foster care settings and have 8.68 become ineligible for GRH difficulty of 9.1 care payments due to receipt of mental 9.2 retardation/related conditions waivered 9.3 services. The amount to be transferred 9.4 must not exceed the amount of GRH 9.5 payments for actual residents in the 9.6 affected GRH settings during the fiscal 9.7 year 1995. The amount transferred is 9.8 to be added to the affected county's 9.9 CSSA base. This paragraph is effective 9.10 the day following final enactment. 9.11 [COUNTY MAINTENANCE-MEALS-AGING.] The 9.12 supplemental funding for nutrition 9.13 programs serving counties where 9.14 congregate and home-delivered meals 9.15 were locally financed prior to 9.16 participation in the nutrition program 9.17 of the Older Americans Act shall be 9.18 awarded at no less than the same levels 9.19 as in fiscal year 1995. 9.20 Subd. 4. Children's Program 19,860,000 21,453,000 9.21 The amounts that may be spent from this 9.22 appropriation for each purpose are as 9.23 follows: 9.24 (a) Children's Trust Fund Grants 9.25 247,000 247,000 9.26 (b) Families With Children 9.27 Services Grants and Administration 9.28 1,718,000 1,710,000 9.29 (c) Family Service Collaborative Grants 9.30 1,000,000 1,500,000 9.31 (d) Family Preservation, Family Support, 9.32 and Child Protection Grants 9.33 8,573,000 8,573,000 9.34 (e) Subsidized Adoption Grants 9.35 5,587,000 6,688,000 9.36 (f) Other Families with Children 9.37 Services Grants 9.38 2,735,000 2,735,000 9.39 [FAMILY SERVICES COLLABORATIVE.] Plans 9.40 for the expenditure of funds for family 9.41 services collaboratives must be 9.42 approved by the children's cabinet 9.43 according to criteria in Minnesota 9.44 Statutes, section 121.8355. Money 9.45 appropriated for these purposes may be 9.46 expended in either year of the 9.47 biennium. Money appropriated for 9.48 family services collaboratives is also 9.49 available for start-up funds under 9.50 Minnesota Statutes, section 245.492, 9.51 subdivision 19, for children's mental 9.52 health collaboratives. 9.53 [HOME CHOICE PROGRAM.] Of this 9.54 appropriation, $75,000 each year must 10.1 be used as a grant to the metropolitan 10.2 council to support the housing and 10.3 related counseling component of the 10.4 home choice program. 10.5 [FOSTER CARE.] Foster care, as defined 10.6 in Minnesota Statutes, section 260.015, 10.7 subdivision 7, is not a community 10.8 social service as defined in Minnesota 10.9 Statutes, section 256E.03, subdivision 10.10 2, paragraph (a). This paragraph is 10.11 effective the day following final 10.12 enactment. 10.13 [NEW CHANCE.] Of this appropriation, 10.14 $100,000 each year is for a grant to 10.15 the New Chance demonstration project 10.16 that provides comprehensive services to 10.17 young AFDC recipients who became 10.18 pregnant as teenagers and dropped out 10.19 of high school. The commissioner shall 10.20 provide an annual report on the 10.21 progress of the demonstration project, 10.22 including specific data on participant 10.23 outcomes in comparison to a control 10.24 group that received no services. The 10.25 commissioner shall also include 10.26 recommendations on whether strategies 10.27 or methods that have proven successful 10.28 in the demonstration project should be 10.29 incorporated into the STRIDE employment 10.30 program for AFDC recipients. 10.31 [HIPPY CARRY FORWARD.] $50,000 in 10.32 unexpended money appropriated in fiscal 10.33 year 1995 for the Home Instruction 10.34 Program for Preschool Youngsters 10.35 (HIPPY) in Laws 1994, chapter 636, 10.36 article 1, section 11, does not cancel 10.37 but is available for the same purposes 10.38 for fiscal year 1996. 10.39 [COMMUNITY COLLABORATIVE MATCHING 10.40 GRANT.] Of the funds appropriated for 10.41 family services collaboratives, $75,000 10.42 in fiscal year 1996 shall be used for 10.43 the commissioner of human services to 10.44 provide a matching grant for community 10.45 collaborative projects for children and 10.46 youth developed by a regional 10.47 organization established under 10.48 Minnesota Statutes, section 116N.08, to 10.49 receive rural development challenge 10.50 grants. The regional organization must 10.51 include a broad cross-section of public 10.52 and private sector community 10.53 representatives to develop programs, 10.54 services or facilities to address 10.55 specific community needs of children 10.56 and youth. The regional organization 10.57 must also provide a two-to-one match of 10.58 nonstate dollars for this grant. 10.59 [INDIAN CHILD WELFARE GRANTS.] $100,000 10.60 is appropriated from the general fund 10.61 to the commissioner of human services 10.62 for the purposes of providing 10.63 compliance grants to an Indian child 10.64 welfare defense corporation, pursuant 10.65 to Minnesota Statutes, section 10.66 257.3571, subdivision 2a, to be 11.1 available until June 30, 1997. 11.2 Subd. 5. Economic Self-Sufficiency 11.3 General 11.4 317,950,000 321,696,000 11.5 The amounts that may be spent from this 11.6 appropriation for each purpose are as 11.7 follows: 11.8 (a) STRIDE Grants 11.9 8,939,000 8,211,000 11.10 (b) AFDC Grants 11.11 143,568,000 146,772,000 11.12 (c) General Assistance Grants 11.13 45,707,000 45,009,000 11.14 (d) Work Readiness Grants 11.15 1,573,000 -0- 11.16 (e) Minnesota Supplemental Aid 11.17 22,493,000 25,757,000 11.18 (f) Minnesota Family Investment 11.19 Plan (MFIP) Grants 11.20 21,307,000 15,150,000 11.21 (g) Child-Care Fund Entitlement Grants 11.22 17,208,000 19,780,000 11.23 (h) Child Support Enforcement Grants 11.24 9,785,000 9,785,000 11.25 (i) Child Care Fund - Nonentitled 11.26 15,526,000 19,751,000 11.27 (j) Administration and Other Grants 11.28 31,844,000 31,481,000 11.29 [FOOD STAMP EMPLOYMENT AND TRAINING.] 11.30 Federal food stamp employment and 11.31 training funds are appropriated to the 11.32 commissioner to reimburse counties for 11.33 food stamp employment and training 11.34 expenditures. 11.35 [STATE TAKEOVER ACCELERATION.] 11.36 Notwithstanding Minnesota Statutes, 11.37 section 256.025, $800,000 of the funds 11.38 appropriated for fiscal year 1996 under 11.39 Minnesota Statutes, section 256.026, 11.40 shall be used to reimburse the county 11.41 share of project STRIDE case management 11.42 and work readiness employment and 11.43 training services for the first six 11.44 months of calendar year 1995. 12.1 [CASH BENEFITS IN ADVANCE.] The 12.2 commissioner, with the advance approval 12.3 of the commissioner of finance, is 12.4 authorized to issue cash assistance 12.5 benefits up to two days before the 12.6 first day of each month, including two 12.7 days before the start of each state 12.8 fiscal year. Of the money appropriated 12.9 for the aid to families with dependent 12.10 children program for fiscal year 1996, 12.11 $12,000,000 is available in fiscal year 12.12 1995. If that amount is insufficient 12.13 for the costs incurred, an additional 12.14 amount of the fiscal year 1996 12.15 appropriation as needed may be 12.16 transferred with the advance approval 12.17 of the commissioner of finance. This 12.18 paragraph is effective the day 12.19 following final enactment. 12.20 [MFIP TRANSFER.] Unexpended money 12.21 appropriated for the Minnesota family 12.22 investment plan in fiscal year 1996 12.23 does not cancel but is available for 12.24 those purposes in fiscal year 1997. 12.25 [PATERNITY ESTABLISHMENT.] Federal 12.26 matching funds from the hospital 12.27 acknowledgment reimbursement program 12.28 may be retained by the commissioner to 12.29 establish paternity in child support 12.30 cases. These federal matching funds 12.31 are appropriated to the commissioner 12.32 and must be used for education and 12.33 public information concerning paternity 12.34 establishment and the prevention of 12.35 nonmarital births. 12.36 [CHILD SUPPORT INCENTIVES.] The 12.37 commissioner may transfer money 12.38 appropriated for child support 12.39 enforcement county performance 12.40 incentives for fiscal years 1996 and 12.41 1997 between county performance 12.42 incentive accounts. Unexpended money 12.43 in fiscal year 1996 does not cancel but 12.44 is available for county performance 12.45 incentives in fiscal year 1997. 12.46 [MINNESOTA PARENTS' FAIR SHARE.] 12.47 Unexpended money appropriated for 12.48 Minnesota parents' fair share in fiscal 12.49 year 1996 does not cancel but is 12.50 available to the commissioner for this 12.51 program in fiscal year 1997. 12.52 [GA/AFDC TO SSI CONVERSION.] The 12.53 commissioner may contract with a 12.54 private entity to convert general 12.55 assistance and AFDC recipients to the 12.56 federal Supplemental Security Income 12.57 program. The contract shall pay only 12.58 for cases successfully converted, at a 12.59 rate to be negotiated by the 12.60 commissioner. 12.61 [GA STANDARD.] The commissioner shall 12.62 set the monthly standard of assistance 12.63 for general assistance units consisting 12.64 of an adult recipient who is childless 12.65 and unmarried or living apart from his 13.1 or her parents or a legal guardian at 13.2 $203. 13.3 [AFDC SUPPLEMENTARY GRANTS.] Of the 13.4 appropriation for aid to families with 13.5 dependent children, the commissioner 13.6 shall provide supplementary grants not 13.7 to exceed $200,000 a year for aid to 13.8 families with dependent children. The 13.9 commissioner shall include the 13.10 following costs in determining the 13.11 amount of the supplementary grants: 13.12 major home repairs, repair of major 13.13 home appliances, utility recaps, 13.14 supplementary dietary needs not covered 13.15 by medical assistance, and replacements 13.16 of furnishings and essential major 13.17 appliances. 13.18 [WORK READINESS ELIMINATION.] 13.19 Notwithstanding Minnesota Statutes, 13.20 section 256.025, $1,573,000 of the 13.21 funds appropriated for fiscal year 1996 13.22 under Minnesota Statutes, section 13.23 256.026, must be used to reimburse the 13.24 county share of work readiness grants 13.25 for the first six months of calendar 13.26 year 1995. 13.27 [FEDERAL WELFARE REFORM.] 13.28 Notwithstanding the provisions of 13.29 Minnesota Statutes, section 256.011 or 13.30 any other law to the contrary, the 13.31 commissioner of human services may not 13.32 implement changes in human services 13.33 block grants and entitlement programs 13.34 mandated by the 104th Congress, without 13.35 authorization by the Minnesota 13.36 Legislature. 13.37 Subd. 6. Health Care 13.38 General 13.39 1,668,242,000 1,794,408,000 13.40 The amounts that may be spent from this 13.41 appropriation for each purpose are as 13.42 follows: 13.43 (a) Group Residential Housing Grants 13.44 48,284,000 54,776,000 13.45 (b) MA Long-Term Care Facilities 13.46 540,531,000 556,857,000 13.47 (c) MA Long-Term Care Waivers 13.48 and Home Care 13.49 202,821,000 217,781,000 13.50 (d) MA Managed Care and 13.51 Fee-for-Service 13.52 581,671,000 659,554,000 13.53 (e) General Assistance Medical Care 13.54 224,007,000 230,400,000 14.1 (f) Alternative Care 14.2 37,251,000 41,053,000 14.3 (g) Medicaid Management 14.4 Information System 14.5 10,657,000 10,657,000 14.6 (h) Administration and Other Grants 14.7 23,020,000 23,330,000 14.8 [PREADMISSION SCREENING TRANSFER.] 14.9 Effective the day following final 14.10 enactment, up to $40,000 of the 14.11 appropriation for preadmission 14.12 screening and alternative care for 14.13 fiscal year 1995 may be transferred to 14.14 the health care administration account 14.15 to pay the state's share of county 14.16 claims for conducting nursing home 14.17 assessments for persons with mental 14.18 illness or mental retardation as 14.19 required by Public Law Number 100-203. 14.20 [ICF/MR AND NURSING FACILITY 14.21 INFLATION.] The commissioner of human 14.22 services shall grant inflation 14.23 adjustments for nursing facilities with 14.24 rate years beginning during the 14.25 biennium according to Minnesota 14.26 Statutes, section 256B.431, and shall 14.27 grant inflation adjustments for 14.28 intermediate care facilities for 14.29 persons with mental retardation or 14.30 related conditions with rate years 14.31 beginning during the biennium according 14.32 to Minnesota Statutes, section 256B.501. 14.33 [ICF/MR RATE EXEMPTIONS.] For the rate 14.34 year beginning October 1, 1995, the 14.35 commissioner shall exempt ICF/MR 14.36 facilities from reductions to the 14.37 payment rates under Minnesota Statutes, 14.38 section 256B.501, subdivision 5b, if 14.39 the facility: (1) has had a settle-up 14.40 payment rate established in the 14.41 reporting year preceding the rate year 14.42 for a one-time rate adjustment; (2) is 14.43 a newly established facility; (3) is an 14.44 A to B licensure conversion project 14.45 under the reimbursement rule; (4) has a 14.46 payment rate subject to a community 14.47 conversion project under Minnesota 14.48 Statutes, section 252.292; or (5) has a 14.49 payment rate established under 14.50 Minnesota Statutes, section 245A.12 or 14.51 245A.13. The commissioner shall 14.52 consider these exceptions in the 14.53 promulgation of permanent rules for 14.54 payment rates to be effective on or 14.55 after October 1, 1996. 14.56 [MINNESOTACARE PHARMACY.] 14.57 Notwithstanding the amendments in this 14.58 act to Minnesota Statutes, section 14.59 256B.0625, subdivision 13, the pharmacy 14.60 dispensing fee in the MinnesotaCare 14.61 program shall be $4.10. 15.1 [ALTERNATIVE CARE TRANSFER.] Any money 15.2 allocated to the alternative care 15.3 program that is not spent for the 15.4 purposes indicated does not cancel but 15.5 shall be transferred to the medical 15.6 assistance account. 15.7 [RATABLE REDUCTION.] For services 15.8 rendered on or after July 1, 1995, the 15.9 commissioner shall ratably reduce 15.10 general assistance medical care 15.11 payments for all services except 15.12 pharmacy services by 4.0 percent. 15.13 [INFLATIONARY FORECAST ERRORS.] The 15.14 commissioner shall adjust the medical 15.15 assistance hospital cost index under 15.16 Minnesota Statutes, section 256.969, 15.17 subdivision 1, for admissions occurring 15.18 on or after July 1, 1995, to recover 15.19 payments under both medical assistance 15.20 and general assistance medical care 15.21 made to hospitals in prior years in 15.22 which projected inflation exceeded 15.23 actual inflation. The adjustment shall 15.24 be determined by the commissioner and 15.25 established at a level sufficient to 15.26 recover the difference between 15.27 projected inflation and actual 15.28 inflation for rate years 1990 to 1992 15.29 by June 30, 1997. 15.30 [PREADMISSION SCREENING RATE.] The 15.31 preadmission screening payment to all 15.32 counties shall continue at the payment 15.33 amount in effect for fiscal year 1995. 15.34 [PAS/AC APPROPRIATION.] The 15.35 commissioner may expend the money 15.36 appropriated for preadmission screening 15.37 and the alternative care program for 15.38 these purposes in either year of the 15.39 biennium. 15.40 [SAIL TRANSFER.] Appropriations for 15.41 administrative costs associated with 15.42 the senior's agenda for independent 15.43 living (SAIL) program may be 15.44 transferred to SAIL grants as the 15.45 commissioner determines necessary to 15.46 facilitate the delivery of the program. 15.47 [STUDY OF OUTPATIENT RATES.] The 15.48 commissioner shall conduct a review of 15.49 payment rates and methodologies for 15.50 medical services that are provided on 15.51 an outpatient basis. The commissioner 15.52 may convene a review panel that is 15.53 comprised of agency staff and staff 15.54 from hospitals and physician clinics to 15.55 assist in the review. The commissioner 15.56 shall submit a report on the results of 15.57 the review, along with any 15.58 recommendations for changes to the 15.59 payment system for outpatient services, 15.60 to the governor and the legislature by 15.61 January 15, 1996. 15.62 [ADDITIONAL WAIVERED SERVICES.] (a) The 15.63 commissioner shall seek the necessary 15.64 amendments to home and community-based 16.1 waiver programs to provide services to 16.2 persons who, due to the inability to 16.3 direct their own care, are no longer 16.4 eligible for personal care assistant 16.5 services but are eligible for the 16.6 community alternatives for disabled 16.7 individuals (CADI), community 16.8 alternative care (CAC), mental 16.9 retardation or related conditions 16.10 (MR/RC), traumatic brain injury (TBI), 16.11 or elderly waivers. These recipients 16.12 who transfer from personal care 16.13 services to home and community-based 16.14 waiver programs shall not be denied 16.15 personal care services until waivered 16.16 services are available. 16.17 (b) Notwithstanding Minnesota Rules, 16.18 parts 9525.1800 to 9525.1930 and 16.19 Minnesota Statutes, section 256B.092, 16.20 subdivision 4, resources for home and 16.21 community-based services for persons 16.22 with mental retardation or related 16.23 conditions, made available for the 16.24 purpose of providing alternative 16.25 services for persons affected by the 16.26 PCA restructuring, shall be allocated 16.27 based on criteria that considers the 16.28 assessed needs and home care 16.29 authorization levels of persons 16.30 affected by the restructuring and 16.31 provides preference to these persons 16.32 during the allocation process. 16.33 [CHILDREN INELIGIBLE FOR TEFRA.] When a 16.34 child is determined ineligible for 16.35 TEFRA or a child or adult for PCA 16.36 services, the commissioner shall 16.37 provide the adult or the child's parent 16.38 or guardian with information on how to 16.39 apply for alternative services from the 16.40 county, the local mental health 16.41 collaborative, the public health 16.42 agency, the departments of health and 16.43 human services, and the Minnesota 16.44 comprehensive health association. 16.45 [ALLOCATION OF WAIVERED SLOTS.] In 16.46 allocating waiver slots to counties 16.47 under Minnesota Statutes, sections 16.48 256B.092 and 256B.501, the commissioner 16.49 shall ensure that at least as many 16.50 individuals are served from county 16.51 waiting lists as the net census 16.52 reduction from regional treatment 16.53 centers. Any unexpended appropriations 16.54 from the regional treatment center 16.55 supplements for state enhanced waiver 16.56 slots shall be transferred into the 16.57 regional treatment center salary 16.58 account. 16.59 [CONSUMER SATISFACTION SURVEY.] Any 16.60 federal matching money received through 16.61 the medical assistance program for the 16.62 consumer satisfaction survey is 16.63 appropriated to the commissioner for 16.64 this purpose. The commissioner may 16.65 expend the federal money received for 16.66 the consumer satisfaction survey in 16.67 either year of the biennium. 17.1 [NURSING HOME GEOGRAPHIC GROUPS.] The 17.2 commissioner shall report to the chairs 17.3 of the senate health care and family 17.4 services finance division and the house 17.5 health and human services finance 17.6 division by January 15, 1996, with 17.7 recommendations for changes in the 17.8 current geographic grouping of nursing 17.9 homes. The recommendations shall take 17.10 into account changes in the federal 17.11 definition of standard metropolitan 17.12 statistical areas and inequities that 17.13 result from the current groupings. 17.14 [LONG-TERM CARE OPTIONS PROJECT.] 17.15 Federal funds received by the 17.16 commissioner of human services for the 17.17 long-term care options project may be 17.18 transferred among object of expenditure 17.19 classifications as the commissioner 17.20 determines necessary for the 17.21 implementation of the project. 17.22 [MORATORIUM EXCEPTIONS.] Of this 17.23 appropriation, $200,000 each year is 17.24 for the medical assistance costs of 17.25 moratorium exceptions approved by the 17.26 commissioner of health under Minnesota 17.27 Statutes, section 144A.073. 17.28 [SURCHARGE COMPLIANCE.] In the event 17.29 that federal financial participation in 17.30 the Minnesota medical assistance 17.31 program is reduced as a result of a 17.32 determination that Minnesota is out of 17.33 compliance with Public Law Number 17.34 102-234 or its implementing regulations 17.35 or with any other federal law designed 17.36 to restrict provider tax programs or 17.37 intergovernmental transfers, the 17.38 commissioner shall appeal the 17.39 determination to the fullest extent 17.40 permitted by law and may ratably reduce 17.41 all medical assistance and general 17.42 assistance medical care payments to 17.43 providers other than the state of 17.44 Minnesota in order to eliminate any 17.45 shortfall resulting from the reduced 17.46 federal funding. Any amount later 17.47 recovered through the appeals process 17.48 shall be used to reimburse providers 17.49 for any ratable reductions taken. 17.50 [MANAGED CARE.] The nonfederal share of 17.51 the Prepaid Medical Assistance Program 17.52 funds, which have been appropriated to 17.53 fund county managed care advocacy and 17.54 enrollment operating costs, shall be 17.55 disbursed as grants using either a 17.56 reimbursement or block grant mechanism. 17.57 [PMAP CARRYOVER.] Unexpended money 17.58 appropriated for fiscal year 1996 for 17.59 the nonfederal share of the prepaid 17.60 medical assistance program to fund 17.61 county managed care advocacy and 17.62 enrollment operating costs does not 17.63 cancel but is available in fiscal year 17.64 1997. 17.65 [PREPAID RATE DISCOUNTS.] 18.1 Notwithstanding section 12 of this 18.2 article, rates for rate years through 18.3 December 31, 1998, for the prepaid 18.4 medical assistance and prepaid general 18.5 assistance medical care programs shall, 18.6 in the aggregate for each program in 18.7 expansion counties after July 1, 1995, 18.8 include an effective ten percent 18.9 discount for individuals under 65, and 18.10 an effective five percent discount for 18.11 persons age 65 and older, compared with 18.12 expected fee-for-service costs for the 18.13 same population. 18.14 [COMPULSIVE GAMBLING.] (a) Of the 1995 18.15 appropriation for the compulsive 18.16 gambling program under Laws 1994, 18.17 chapter 633, article 8, section 8, 18.18 subdivision 1, up to $175,000 does not 18.19 cancel but shall remain available for 18.20 the development and implementation of 18.21 outcome evaluation, treatment 18.22 effectiveness research in the biennium 18.23 ending June 30, 1997. 18.24 (b) Only contributions to the 18.25 compulsive gambling program may be 18.26 carried forward between fiscal years or 18.27 from biennium to biennium. 18.28 (c) Paragraphs (a) and (b) are 18.29 effective the day following final 18.30 enactment. 18.31 Subd. 7. Community Mental Health 18.32 and State-Operated Services 18.33 General 18.34 254,604,000 260,379,000 18.35 The amounts that may be spent from this 18.36 appropriation for each purpose are as 18.37 follows: 18.38 (a) Mental Health Grants - Children 18.39 7,097,000 12,536,000 18.40 [MENTAL HEALTH COLLABORATIVE.] Mental 18.41 health grants available for children 18.42 formerly served under the TEFRA program 18.43 shall be distributed and administered 18.44 by a children's mental health 18.45 collaborative where a collaborative 18.46 exists. 18.47 (b) Mental Health Grants - Adults 18.48 38,222,000 40,918,000 18.49 (c) Residential Treatment 18.50 Center Facilities 18.51 194,921,000 192,265,000 18.52 (d) Developmental Disability 18.53 and Mentally Ill (DD and MI) 18.54 State-Operated Community Services (SOCS) 18.55 13,001,000 13,297,000 19.1 (e) Administration and Other Grants 19.2 1,363,000 1,363,000 19.3 [MENTAL HEALTH GRANTS.] (a) Mental 19.4 health grants appropriated for the 19.5 biennium as part of the TEFRA and PCA 19.6 restructuring proposal shall be 19.7 distributed to children's mental health 19.8 collaboratives, or where there is no 19.9 collaborative, to counties. Grants 19.10 shall be prorated by county based on 19.11 the estimated dollar value of services 19.12 for children and adults with a mental 19.13 health diagnosis that will be lost due 19.14 to the changes in Minnesota Statutes, 19.15 sections 256B.055, subdivision 12, and 19.16 256B.0627. 19.17 (b) The commissioner shall form a work 19.18 group to recommend a process for 19.19 awarding grants that will maximize 19.20 services purchased and minimize 19.21 administrative overhead. The task 19.22 force shall include representatives of 19.23 the state advisory council on mental 19.24 health and the children's subcommittee, 19.25 parents, consumers, advocacy groups, 19.26 providers, and local social service and 19.27 public health staff. The work group 19.28 shall consider whether the process for 19.29 awarding consumer support grants under 19.30 Minnesota Statutes, section 256.476, 19.31 can be utilized for awarding these 19.32 mental health grants. In addition, the 19.33 work group shall recommend ways to 19.34 minimize harm to children and families 19.35 and to reduce barriers to accessing 19.36 alternative services. 19.37 (c) For the first year of the biennium, 19.38 funds must be distributed by January 1, 19.39 1996, and for the second year, by July 19.40 1, 1996. None of this appropriation 19.41 shall be used for county 19.42 administration, but must be used to 19.43 fund direct services to persons found 19.44 ineligible for TEFRA or PCA services. 19.45 [MENTAL HEALTH CASE MANAGEMENT.] 19.46 Notwithstanding section 12 of this 19.47 article, this paragraph does not 19.48 expire. The reimbursement rate for 19.49 mental health case management services 19.50 provided by counties under Minnesota 19.51 Statutes, sections 245.4881 and 19.52 256B.0625, for children with severe 19.53 emotional disturbance is $45. 19.54 [CALCULATION OF FTE's.] When 19.55 calculating regional treatment center 19.56 full-time equivalent employees, the 19.57 commissioner of finance shall make a 19.58 separate calculation for physicians and 19.59 their salaries. 19.60 [RELOCATIONS FROM FARIBAULT.] Of this 19.61 appropriation, $162,000 in fiscal year 19.62 1996 and $37,000 in fiscal year 1997 19.63 are for grants to counties for 19.64 discharge planning related to persons 20.1 with mental retardation or related 20.2 conditions being relocated from the 20.3 Faribault regional center to community 20.4 services. 20.5 [TRANSFERS TO MOOSE LAKE.] 20.6 Notwithstanding Minnesota Statutes, 20.7 sections 253B.18, subdivisions 4 and 6, 20.8 and 253B.185, subdivision 2, with the 20.9 establishment of the Minnesota sexual 20.10 psychopathic personality treatment 20.11 center, the commissioner is authorized 20.12 to transfer any person committed as a 20.13 psychopathic personality, sexual 20.14 psychopathic personality, or sexually 20.15 dangerous person, between the Minnesota 20.16 security hospital and the facility at 20.17 Moose Lake. 20.18 [RTC CHEMICAL DEPENDENCY PROGRAMS.] 20.19 When the operations of the regional 20.20 treatment center chemical dependency 20.21 fund created in Minnesota Statutes, 20.22 section 246.18, subdivision 2, are 20.23 impeded by projected cash deficiencies 20.24 resulting from delays in the receipt of 20.25 grants, dedicated income, or other 20.26 similar receivables, and when the 20.27 deficiencies would be corrected within 20.28 the budget period involved, the 20.29 commissioner of finance may transfer 20.30 general fund cash reserves into this 20.31 account as necessary to meet cash 20.32 demands. The cash flow transfers must 20.33 be returned to the general fund in the 20.34 fiscal year that the transfer was 20.35 made. Any interest earned on general 20.36 fund cash flow transfers accrues to the 20.37 general fund and not the regional 20.38 treatment center chemical dependency 20.39 fund. 20.40 [RTC RESTRUCTURING.] For purposes of 20.41 restructuring the regional treatment 20.42 centers and state nursing homes, any 20.43 regional treatment center or state 20.44 nursing home employee whose position is 20.45 to be eliminated shall be afforded the 20.46 options provided in applicable 20.47 collective bargaining agreements. All 20.48 salary and mitigation allocations from 20.49 fiscal year 1996 shall be carried 20.50 forward into fiscal year 1997. 20.51 Provided there is no conflict with any 20.52 collective bargaining agreement, any 20.53 regional treatment center or state 20.54 nursing home position reduction must 20.55 only be accomplished through 20.56 mitigation, attrition, transfer, and 20.57 other measures as provided in state or 20.58 applicable collective bargaining 20.59 agreements and in Minnesota Statutes, 20.60 section 252.50, subdivision 11, and not 20.61 through layoff. 20.62 [RTC POPULATION.] If the resident 20.63 population at the regional treatment 20.64 centers is projected to be higher than 20.65 the estimates upon which the medical 20.66 assistance forecast and budget 20.67 recommendations for the 1996-97 21.1 biennium were based, the amount of the 21.2 medical assistance appropriation that 21.3 is attributable to the cost of services 21.4 that would have been provided as an 21.5 alternative to regional treatment 21.6 center services, including resources 21.7 for community placements and waivered 21.8 services for persons with mental 21.9 retardation and related conditions, is 21.10 transferred to the residential 21.11 facilities appropriation. 21.12 [INFRASTRUCTURE REINVESTMENT.] $750,000 21.13 is available from the public facilities 21.14 authority under Minnesota Statutes 21.15 446A.071 for grant funds to a local 21.16 unit of government for the development 21.17 of infrastructure and planning for 21.18 redevelopment in response to the 21.19 memorandum of understanding for the 21.20 regional treatment centers. Eligible 21.21 costs include sewer, water, and 21.22 easements and engineering costs 21.23 associated with the project proposal. 21.24 [CAMP.] Of this appropriation, $30,000 21.25 is from the mental health special 21.26 projects account for adults and 21.27 children with mental illness from 21.28 across the state, for a camping program 21.29 which utilizes the Boundary Waters 21.30 Canoe Area and is cooperatively 21.31 sponsored by client advocacy, mental 21.32 health treatment, and outdoor 21.33 recreation agencies. 21.34 [IMD DOWNSIZING FLEXIBILITY.] If a 21.35 county presents a budget-neutral plan 21.36 for a net reduction in the number of 21.37 institution for mental disease (IMD) 21.38 beds funded under group residential 21.39 housing, the commissioner may transfer 21.40 the net savings from group residential 21.41 housing and general assistance medical 21.42 care to medical assistance and mental 21.43 health grants to provide appropriate 21.44 services in non-IMD settings. 21.45 [REPAIRS AND BETTERMENTS.] The 21.46 commissioner may transfer unencumbered 21.47 appropriation balances between fiscal 21.48 years for the state residential 21.49 facilities repairs and betterments 21.50 account and special equipment. 21.51 [PROJECT LABOR.] Wages for project 21.52 labor may be paid by the commissioner 21.53 of human services out of repairs and 21.54 betterments money if the individual is 21.55 to be engaged in a construction project 21.56 or a repair project of short term and 21.57 nonrecurring nature. Compensation for 21.58 project labor shall be based on the 21.59 prevailing wage rates, as defined in 21.60 Minnesota Statutes, section 177.42, 21.61 subdivision 6. Project laborers are 21.62 excluded from the provisions of 21.63 Minnesota Statutes, sections 43A.22 to 21.64 43A.30, and shall not be eligible for 21.65 state-paid insurance and benefits. 22.1 [PLAN FOR ADOLESCENT TREATMENT 22.2 EXPANSION.] The commissioner shall 22.3 report to the legislature by January 22.4 15, 1996, with a cost-neutral plan to 22.5 add up to 20 beds to each of the two 22.6 existing adolescent treatment 22.7 facilities at the regional treatment 22.8 centers in order to reduce or eliminate 22.9 out-of-state placement of adolescents 22.10 who have serious emotional disturbance 22.11 and exhibit violent behavior, if they 22.12 cannot be treated in their own 22.13 communities. Cost neutrality shall be 22.14 determined by comparing the costs of 22.15 program expansion with the projected 22.16 costs of out-of-state placements. 22.17 Sec. 3. COMMISSIONER OF HEALTH 22.18 Subdivision 1. Total 22.19 Appropriation 55,639,000 55,886,000 22.20 Summary by Fund 22.21 General 37,978,000 37,950,000 22.22 Metropolitan Landfill 22.23 Contingency Action Fund 193,000 193,000 22.24 State Government 22.25 Special Revenue 15,947,000 16,222,000 22.26 Trunk Highway 1,513,000 1,513,000 22.27 Special Revenue 8,000 8,000 22.28 [LANDFILL CONTINGENCY.] The 22.29 appropriation from the metropolitan 22.30 landfill contingency action fund is for 22.31 monitoring well water supplies and 22.32 conducting health assessments in the 22.33 metropolitan area. 22.34 [TRUNK HIGHWAY FUND.] The appropriation 22.35 from the trunk highway fund is for 22.36 emergency medical services activities. 22.37 Subd. 2. Health 22.38 Systems Development 27,928,000 27,784,000 22.39 Summary by Fund 22.40 General 27,499,000 27,354,000 22.41 State Government 22.42 Special Revenue 429,000 430,000 22.43 [WIC TRANSFERS.] General fund 22.44 appropriations for the women, infants, 22.45 and children food supplement program 22.46 (WIC) are available for either year of 22.47 the biennium. Transfers of 22.48 appropriations between fiscal years 22.49 must be for the purpose of maximizing 22.50 federal funds or minimizing 22.51 fluctuations in the number of 22.52 participants. 22.53 [NURSING HOME RESIDENTS EDUCATION.] Any 22.54 efforts undertaken by the Minnesota 22.55 departments of health or human services 23.1 to conduct periodic education programs 23.2 for nursing home residents shall build 23.3 on and be coordinated with the resident 23.4 and family advisory council education 23.5 program established in Minnesota 23.6 Statutes, section 144A.33. 23.7 [HOSPITAL CONVERSION.] Of the 23.8 appropriation from the general fund, 23.9 the commissioner of health shall 23.10 provide $25,000 to a 28-bed hospital 23.11 located in Chisago county, to enable 23.12 that facility to plan for closure and 23.13 conversion, in partnership with other 23.14 entities, in order to offer outpatient 23.15 and emergency services at the site. 23.16 [CARRYOVER.] General fund 23.17 appropriations for treatment services 23.18 in the services for children with 23.19 special health care needs program are 23.20 available for either year of the 23.21 biennium. 23.22 Subd. 3. Health Quality 23.23 Assurance 6,934,000 7,065,000 23.24 Summary by Fund 23.25 General 1,135,000 1,135,000 23.26 Trunk Highway 1,431,000 1,431,000 23.27 State Government 23.28 Special Revenue 4,368,000 4,499,000 23.29 [NONCERTIFIED NURSING HOME.] Of the 23.30 appropriation from the state government 23.31 special revenue fund, up to $250,000 is 23.32 available if the commissioner 23.33 determines the need to place a 23.34 noncertified nursing home into 23.35 receivership under Minnesota Statutes, 23.36 section 144A.14 or 144A.15. Any money 23.37 expended from this account for this 23.38 purpose shall only be used to cover the 23.39 necessary costs for the receivership 23.40 and for the operation of the facility 23.41 during the time period necessary to 23.42 relocate residents from the facility. 23.43 The commissioner shall suspend 23.44 admissions to the nursing home 23.45 effective as of the date of the 23.46 commencement of the receivership. 23.47 Notwithstanding the provisions of 23.48 Minnesota Statutes, section 144A.16, 23.49 and Minnesota Rules, parts 4655.6810 to 23.50 4655.6830, the commissioner shall 23.51 relocate residents within 45 days from 23.52 the commencement of the receivership if 23.53 the receivership costs are covered by 23.54 this section. Once relocation of the 23.55 residents is completed, the nursing 23.56 home license shall expire. 23.57 Notwithstanding the provisions of 23.58 Minnesota Statutes, section 144A.071, 23.59 subdivision 3, paragraph (c), the 23.60 commissioner may issue a new license to 23.61 operate the facility as a nursing home 23.62 within 120 days from the commencement 23.63 of the receivership provided that the 24.1 licensed and certified capacity does 24.2 not exceed the capacity of the former 24.3 facility and all money expended from 24.4 the state government special revenue 24.5 account is repaid to the commissioner 24.6 prior to the issuance of the license. 24.7 Any unrecovered costs to the fund shall 24.8 be included as costs to the activity 24.9 under Minnesota Statutes, section 24.10 16A.1285. The commissioner shall 24.11 report any use of this authority to the 24.12 commissioner of finance and the chair 24.13 of the senate health care and family 24.14 services finance division and the chair 24.15 of the house human services finance 24.16 division. 24.17 Subd. 4. Health Protection 16,765,000 16,861,000 24.18 Summary by Fund 24.19 General 6,899,000 6,895,000 24.20 State Government 24.21 Special Revenue 9,687,000 9,787,000 24.22 Metropolitan Landfill 24.23 Contingency Action 24.24 Fund 171,000 171,000 24.25 Special Revenue 8,000 8,000 24.26 [LEAD ABATEMENT.] $200,000 is 24.27 appropriated from the general fund to 24.28 the commissioner of health for the 24.29 biennium ending June 30, 1997, for the 24.30 purpose of administering lead abatement 24.31 activities. Of this amount, $25,000 24.32 shall be used for the purposes of 24.33 lead-safe housing, and $25,000 shall be 24.34 used for the purposes of lead cleanup 24.35 equipment. 24.36 Subd. 5. Management and 24.37 Support Services 4,012,000 4,176,000 24.38 Summary by Fund 24.39 General 2,445,000 2,566,000 24.40 Metropolitan Landfill 24.41 Contingency Action Fund 22,000 22,000 24.42 Trunk Highway 82,000 82,000 24.43 State Government 24.44 Special Revenue 1,463,000 1,506,000 24.45 Sec. 4. VETERANS NURSING 24.46 HOMES BOARD 17,937,000 18,614,000 24.47 [SPECIAL REVENUE ACCOUNT.] The general 24.48 fund appropriations made to the 24.49 veterans homes board shall be 24.50 transferred to a veterans homes special 24.51 revenue account in the special revenue 24.52 fund in the same manner as other 24.53 receipts are deposited in accordance 24.54 with Minnesota Statutes, section 24.55 198.34, and are appropriated to the 24.56 veterans homes board of directors for 25.1 the operation of board facilities and 25.2 programs. 25.3 [SETTING THE COST OF CARE.] The 25.4 veterans homes board may set the cost 25.5 of care at the Silver Bay and Luverne 25.6 facilities based on the cost of average 25.7 skilled nursing care provided to 25.8 residents of the Minneapolis veterans 25.9 home for fiscal year 1996. 25.10 [ROOMS WITH MORE THAN FOUR BEDS.] (a) 25.11 Until June 30, 1996, the commissioner 25.12 of health shall not apply the 25.13 provisions of Minnesota Statutes, 25.14 section 144.55, subdivision 6, 25.15 paragraph (b), to the Minnesota 25.16 veterans home at Hastings. 25.17 (b) The veterans homes board may not 25.18 admit residents into the domiciliary 25.19 beds at the Minnesota veterans home at 25.20 Hastings before October 1, 1995. 25.21 [LICENSED CAPACITY.] The department of 25.22 health shall not reduce the licensed 25.23 bed capacity for the Minneapolis 25.24 veterans home pending completion of the 25.25 project authorized by Laws 1990, 25.26 chapter 610, article 1, section 9, 25.27 subdivision 3, unless the federal grant 25.28 for the project is not awarded. 25.29 [ALLOWANCE FOR FOOD.] The allowance for 25.30 food may be adjusted annually to 25.31 reflect changes in the producer price 25.32 index, as prepared by the United States 25.33 Bureau of Labor Statistics, with the 25.34 approval of the commissioner of 25.35 finance. Adjustments for fiscal year 25.36 1996 and fiscal year 1997 must be based 25.37 on the June 1994 and June 1995 producer 25.38 price index respectively, but the 25.39 adjustment must be prorated if it would 25.40 require money in excess of the 25.41 appropriation. 25.42 [FERGUS FALLS.] If a federal grant for 25.43 the construction of the Fergus Falls 25.44 veterans home is received before the 25.45 start of the 1996 legislative session, 25.46 the veterans homes board of directors 25.47 may use up to $150,000 of this 25.48 appropriation to fund positions and 25.49 support services to coordinate and 25.50 oversee the construction of the home 25.51 and to begin planning for the opening 25.52 of the facility. 25.53 Sec. 5. HEALTH-RELATED BOARDS 25.54 Subdivision 1. Total 25.55 Appropriation 8,906,000 8,608,000 25.56 [STATE GOVERNMENT SPECIAL REVENUE 25.57 FUND.] The appropriations in this 25.58 section are from the state government 25.59 special revenue fund. 25.60 [NO SPENDING IN EXCESS OF REVENUES.] 25.61 The commissioner of finance shall not 26.1 permit the allotment, encumbrance, or 26.2 expenditure of money appropriated in 26.3 this section in excess of the 26.4 anticipated biennial revenues or 26.5 accumulated surplus revenues from fees 26.6 collected by the boards. Neither this 26.7 provision nor Minnesota Statutes, 26.8 section 214.06, applies to transfers 26.9 from the general contingent account, if 26.10 the amount transferred does not exceed 26.11 the amount of surplus revenue 26.12 accumulated by the transferee during 26.13 the previous five years. 26.14 Subd. 2. Board of Chiropractic 26.15 Examiners 309,000 313,000 26.16 Subd. 3. Board of Dentistry 698,000 708,000 26.17 Subd. 4. Board of Dietetic 26.18 and Nutrition Practice 63,000 64,000 26.19 Subd. 5. Board of Marriage and 26.20 Family Therapy 95,000 96,000 26.21 Subd. 6. Board of Medical 26.22 Practice 3,204,000 3,188,000 26.23 Subd. 7. Board of Nursing 2,258,000 2,009,000 26.24 [DISCIPLINE AND LICENSING SYSTEMS 26.25 PROJECT.] Of this appropriation, 26.26 $548,000 the first year and $295,000 26.27 the second year is to implement the 26.28 discipline and licensing systems 26.29 project as recommended by the 26.30 information policy office. In 26.31 accordance with Minnesota Statutes, 26.32 section 214.06, subdivision 1, the 26.33 board may raise fees to fund this 26.34 activity. 26.35 Subd. 8. Board of Nursing 26.36 Home Administrators 182,000 186,000 26.37 Subd. 9. Board of Optometry 78,000 79,000 26.38 Subd. 10. Board of Pharmacy 900,000 894,000 26.39 Subd. 11. Board of Podiatry 31,000 32,000 26.40 Subd. 12. Board of Psychology 393,000 396,000 26.41 Subd. 13. Board of Social Work 553,000 492,000 26.42 Subd. 14. Board of Veterinary 26.43 Medicine 142,000 151,000 26.44 Sec. 6. COUNCIL ON DISABILITY 725,000 581,000 26.45 [COUNCIL ON DISABILITY.] Of this 26.46 appropriation $150,000 is from the 26.47 general fund to the council on 26.48 disability for fiscal year 1996, for 26.49 the purposes of a matching grant to the 26.50 Fergus Falls Center for the Arts, Inc. 26.51 to complete renovations of a local 26.52 theater necessary to bring it into 26.53 compliance with the federal Americans 26.54 with Disabilities Act. This 26.55 appropriation must be matched by 27.1 $50,000 of nonstate local funds. 27.2 Sec. 7. OMBUDSMAN FOR MENTAL 27.3 HEALTH AND MENTAL RETARDATION 1,132,000 1,097,000 27.4 Sec. 8. OMBUDSMAN 27.5 FOR FAMILIES 133,000 137,000 27.6 Sec. 9. TRANSFERS. 27.7 Subdivision 1. Entitlement programs 27.8 (a) Transfers in fiscal year 1995 27.9 Effective the day following final 27.10 enactment, the commissioner of human 27.11 services may transfer unencumbered 27.12 appropriation balances for fiscal year 27.13 1995 among the aid to families with 27.14 dependent children, aid to families 27.15 with dependent children child care, 27.16 Minnesota family investment plan, 27.17 general assistance, general assistance 27.18 medical care, medical assistance, 27.19 Minnesota supplemental aid, group 27.20 residential housing and work readiness 27.21 programs, and the entitlement portion 27.22 of the chemical dependency consolidated 27.23 treatment fund, with the approval of 27.24 the commissioner of finance after 27.25 notification of the chair of the senate 27.26 health care and family services finance 27.27 division and the chair of the house of 27.28 representatives health and human 27.29 services finance division. 27.30 (b) Transfers of unencumbered 27.31 entitled grant and aid appropriations 27.32 The commissioner of human services, 27.33 with the approval of the commissioner 27.34 of finance, and after notification of 27.35 the chair of the senate health care and 27.36 family services finance division and 27.37 the chair of the house of 27.38 representatives health and human 27.39 services finance division, may transfer 27.40 unencumbered appropriation balances for 27.41 the biennium ending June 30, 1997, 27.42 within fiscal years among the aid to 27.43 families with dependent children, aid 27.44 to families with dependent children 27.45 child care, Minnesota family investment 27.46 plan, general assistance, general 27.47 assistance medical care, medical 27.48 assistance, Minnesota supplemental aid, 27.49 group residential housing, and work 27.50 readiness programs, and the entitlement 27.51 portion of the chemical dependency 27.52 consolidated treatment fund, and 27.53 between fiscal years of the biennium. 27.54 Subd. 2. Approval required 27.55 Positions, salary money, and nonsalary 27.56 administrative money may be transferred 27.57 within the departments of human 27.58 services and health and within the 27.59 programs operated by the veterans 27.60 nursing homes board as the 27.61 commissioners and the board consider 28.1 necessary, with the advance approval of 28.2 the commissioner of finance. The 28.3 commissioners and the board shall 28.4 inform the chairs of the health and 28.5 human services finance division of the 28.6 house of representatives and the health 28.7 and family services finance division of 28.8 the senate quarterly about transfers 28.9 made under this provision. 28.10 Subd. 3. Transfer 28.11 Funding appropriated by the legislature 28.12 may not be transferred to a different 28.13 department than that specified by the 28.14 legislature without legislative 28.15 authority. 28.16 Sec. 10. PROVISIONS 28.17 (a) Money appropriated to the 28.18 commissioner of human services for the 28.19 purchase of provisions within the item 28.20 "current expense" must be used solely 28.21 for that purpose. Money provided and 28.22 not used for the purchase of provisions 28.23 must be canceled into the fund from 28.24 which appropriated, except that money 28.25 provided and not used for the purchase 28.26 of provisions because of population 28.27 decreases may be transferred and used 28.28 for the purchase of drugs and medical 28.29 and hospital supplies and equipment 28.30 with written approval of the governor 28.31 after consultation with the legislative 28.32 advisory commission. 28.33 (b) For fiscal year 1996 the allowance 28.34 for food may be adjusted to the 28.35 equivalent of the 75th percentile of 28.36 the comparable raw food costs for 28.37 community nursing homes as reported to 28.38 the commissioner of human services. 28.39 For fiscal year 1997 an adjustment may 28.40 be made to reflect the annual change in 28.41 the United States Bureau of Labor 28.42 Statistics producer price index as of 28.43 June 1996 with the approval of the 28.44 commissioner of finance. The 28.45 adjustments for either year must be 28.46 prorated if they would require money in 28.47 excess of this appropriation. 28.48 Sec. 11. CARRYOVER LIMITATION 28.49 None of the appropriations in this act 28.50 which are allowed to be carried forward 28.51 from fiscal year 1996 to fiscal year 28.52 1997 shall become part of the base 28.53 level funding for the 1997-1999 28.54 biennial budget, unless specifically 28.55 directed by the legislature. 28.56 Sec. 12. SUNSET OF UNCODIFIED LANGUAGE 28.57 All uncodified language contained in 28.58 this article expires on June 30, 1997, 28.59 unless a different expiration is 28.60 explicit. 28.61 ARTICLE 2 29.1 HUMAN SERVICES ADMINISTRATION 29.2 Section 1. Minnesota Statutes 1994, section 14.03, 29.3 subdivision 3, is amended to read: 29.4 Subd. 3. [RULEMAKING PROCEDURES.] The definition of a rule 29.5 in section 14.02, subdivision 4, does not include: 29.6 (1) rules concerning only the internal management of the 29.7 agency or other agencies that do not directly affect the rights 29.8 of or procedures available to the public; 29.9 (2) rules of the commissioner of corrections relating to 29.10 the placement and supervision of inmates serving a supervised 29.11 release term, the internal management of institutions under the 29.12 commissioner's control, and rules adopted under section 609.105 29.13 governing the inmates of those institutions; 29.14 (3) rules relating to weight limitations on the use of 29.15 highways when the substance of the rules is indicated to the 29.16 public by means of signs; 29.17 (4) opinions of the attorney general; 29.18 (5) the systems architecture plan and long-range plan of 29.19 the state education management information system provided by 29.20 section 121.931; 29.21 (6) the data element dictionary and the annual data 29.22 acquisition calendar of the department of education to the 29.23 extent provided by section 121.932; 29.24 (7) the occupational safety and health standards provided 29.25 in section 182.655; 29.26 (8) revenue notices and tax information bulletins of the 29.27 commissioner of revenue;or29.28 (9) uniform conveyancing forms adopted by the commissioner 29.29 of commerce under section 507.09; or 29.30 (10) the interpretive guidelines developed by the 29.31 commissioner of human services to the extent provided in chapter 29.32 245A. 29.33 Sec. 2. Minnesota Statutes 1994, section 16B.08, 29.34 subdivision 5, is amended to read: 29.35 Subd. 5. [FEDERALGENERAL SERVICES ADMINISTRATIONAGENCY 29.36 PRICE SCHEDULES.] Notwithstanding anything in this chapter to 30.1 the contrary, the commissioner may, instead of soliciting bids, 30.2 contract for purchases with suppliers who have published 30.3 schedules of prices effective for sales tothe General Services30.4Administrationany federal agency of the United States. These 30.5 contracts may be entered into, regardless of the amount of the 30.6 purchase price, if the commissioner considers them advantageous 30.7 and if the purchase price of all the commodities purchased under 30.8 the contract do not exceed the price specified by the schedule. 30.9 Sec. 3. Minnesota Statutes 1994, section 171.07, is 30.10 amended by adding a subdivision to read: 30.11 Subd. 10. [AGREEMENTS WITH OTHER AGENCIES.] The 30.12 commissioner of public safety is authorized to enter into 30.13 agreements with other agencies to issue cards to clients of 30.14 those agencies for use in their programs. The cards may be 30.15 issued to persons who do not qualify for a Minnesota driver's 30.16 license or do not provide evidence of name and identity as 30.17 required by rule for a Minnesota identification card. Persons 30.18 issued cards under this subdivision will meet the identification 30.19 verification requirements of the contracting agency. 30.20 The interagency agreement may include provisions for the 30.21 payment of the county fee provided in section 171.06, 30.22 subdivision 4, and the actual cost to manufacture the card. 30.23 Cards issued under this subdivision are not Minnesota 30.24 identification cards for the purposes defined in sections 30.25 48.512, 201.061, 201.161, 332.50, and 340A.503. 30.26 Sec. 4. Minnesota Statutes 1994, section 245A.02, is 30.27 amended by adding a subdivision to read: 30.28 Subd. 7b. [INTERPRETIVE GUIDELINES.] "Interpretive 30.29 guidelines" means a policy statement that has been published 30.30 pursuant to section 245A.09, subdivision 12, and which provides 30.31 interpretation, details, or supplementary information concerning 30.32 the application of laws or rules. Interpretive guidelines are 30.33 published for the information and guidance of consumers, 30.34 providers of service, county agencies, the department of human 30.35 services, and others concerned. 30.36 Sec. 5. Minnesota Statutes 1994, section 245A.03, 31.1 subdivision 2a, is amended to read: 31.2 Subd. 2a. [LICENSING OFFOSTER CARE BY AN INDIVIDUAL WHO 31.3 IS RELATED TO A CHILD; LICENSE REQUIRED.] Notwithstanding 31.4 subdivision 2, clause (1),the commissioner must license or31.5approve an individual who is related to a childin order to 31.6 provide foster care forthata child, an individual who is 31.7 related to the child, other than a parent, or legal guardian, 31.8 must be licensed by the commissioner except as provided by 31.9 section 245A.035.The commissioner may issue the license or31.10approval retroactive to the date the child was placed in the31.11applicant's home, so long as no more than 90 days have elapsed31.12since the placement. If more than 90 days have elapsed since31.13the placement, the commissioner may issue the license or31.14approval retroactive 90 days. The granting of a license or31.15approval to an individual who is related to a child shall be31.16according to standards set forth by foster care rule. The31.17commissioner shall consider the importance of maintaining the31.18child's relationship to family as an additional significant31.19factor in determining whether to set aside a licensing31.20disqualifier under section 245A.04, subdivision 3b, or to grant31.21a variance of licensing requirements under section 245A.04,31.22subdivision 9, in licensing or approving an individual related31.23to a child.31.24 Sec. 6. [245A.035] [RELATIVE FOSTER CARE; EMERGENCY 31.25 LICENSE.] 31.26 Subdivision 1. [GRANT OF EMERGENCY LICENSE.] 31.27 Notwithstanding section 245A.03, subdivision 2a, a county agency 31.28 may place a child for foster care with a relative who is not 31.29 licensed to provide foster care, provided the requirements of 31.30 subdivision 2 are met. As used in this section, the term 31.31 "relative" has the meaning given it under section 260.181, 31.32 subdivision 3. 31.33 Subd. 2. [COOPERATION WITH EMERGENCY LICENSING PROCESS.] 31.34 (a) A county agency that places a child with a relative who is 31.35 not licensed to provide foster care must begin the process of 31.36 securing an emergency license for the relative as soon as 32.1 possible and must conduct the initial inspection required by 32.2 subdivision 3, clause (1), whenever possible, prior to placing 32.3 the child in the relative's home, but no later than three 32.4 working days after placing the child in the home. A child 32.5 placed in the home of a relative who is not licensed to provide 32.6 foster care must be removed from that home if the relative fails 32.7 to cooperate with the county agency in securing an emergency 32.8 foster care license. The commissioner may only issue an 32.9 emergency foster care license to a relative with whom the county 32.10 agency wishes to place or has placed a child for foster care. 32.11 (b) If a child is to be placed in the home of a relative 32.12 not licensed to provide foster care, either the placing agency 32.13 or the county agency in the county in which the relative lives 32.14 shall conduct the emergency licensing process as required in 32.15 this section. 32.16 Subd. 3. [REQUIREMENTS FOR EMERGENCY LICENSE.] Before an 32.17 emergency license may be issued, the following requirements must 32.18 be met: 32.19 (1) the county agency must conduct an initial inspection of 32.20 the premises where the foster care is to be provided to ensure 32.21 the health and safety of any child placed in the home. The 32.22 county agency shall conduct the inspection using a form 32.23 developed by the commissioner; 32.24 (2) at the time of the inspection or placement, whichever 32.25 is earlier, the relative being considered for an emergency 32.26 license shall receive an application form for a child foster 32.27 care license; and 32.28 (3) whenever possible, prior to placing the child in the 32.29 relative's home, the relative being considered for an emergency 32.30 license shall provide the information required by section 32.31 245A.04, subdivision 3, paragraph (b). 32.32 Subd. 4. [APPLICANT STUDY.] When the county agency has 32.33 received the information required by section 245A.04, 32.34 subdivision 3, paragraph (b), the county agency shall begin an 32.35 applicant study according to the procedures in section 245A.04, 32.36 subdivision 3. The commissioner may issue an emergency license 33.1 upon recommendation of the county agency once the initial 33.2 inspection has been successfully completed and the information 33.3 necessary to begin the applicant background study has been 33.4 provided. If the county agency does not recommend that the 33.5 emergency license be granted, the agency shall notify the 33.6 relative in writing that the agency is recommending denial to 33.7 the commissioner; shall remove any child who has been placed in 33.8 the home prior to licensure; and shall inform the relative in 33.9 writing of the procedure to request review pursuant to 33.10 subdivision 6. An emergency license shall be effective until a 33.11 child foster care license is granted or denied, but shall in no 33.12 case remain in effect more than 90 days from the date of 33.13 placement. 33.14 Subd. 5. [CHILD FOSTER CARE LICENSE APPLICATION.] The 33.15 emergency license holder shall complete the child foster care 33.16 license application and necessary paperwork within ten days of 33.17 the placement. The county agency shall assist the emergency 33.18 license holder to complete the application. The granting of a 33.19 child foster care license to a relative shall be under the 33.20 procedures in this chapter and according to the standards set 33.21 forth by foster care rule. In licensing a relative, the 33.22 commissioner shall consider the importance of maintaining the 33.23 child's relationship with relatives as an additional significant 33.24 factor in determining whether to set aside a licensing 33.25 disqualifier under section 245A.04, subdivision 3b, or to grant 33.26 a variance of licensing requirements under section 245A.04, 33.27 subdivision 9. 33.28 Subd. 6. [DENIAL OF EMERGENCY LICENSE.] If the 33.29 commissioner denies an application for an emergency foster care 33.30 license under this section, that denial must be in writing and 33.31 must include reasons for the denial. Denial of an emergency 33.32 license is not subject to appeal under chapter 14. The relative 33.33 may request a review of the denial by submitting to the 33.34 commissioner a written statement of the reasons an emergency 33.35 license should be granted. The commissioner shall evaluate the 33.36 request for review and determine whether to grant the emergency 34.1 license. The commissioner's review shall be based on a review 34.2 of the records submitted by the county agency and the relative. 34.3 Within 15 working days of the receipt of the request for review, 34.4 the commissioner shall notify the relative requesting review in 34.5 written form whether the emergency license will be granted. The 34.6 commissioner's review shall be based on a review of the records 34.7 submitted by the county agency and the relative. A child shall 34.8 not be placed or remain placed in the relative's home while the 34.9 request for review is pending. Denial of an emergency license 34.10 shall not preclude an individual from reapplying for an 34.11 emergency license or from applying for a child foster care 34.12 license. The decision of the commissioner is the final 34.13 administrative agency action. 34.14 Sec. 7. Minnesota Statutes 1994, section 245A.04, 34.15 subdivision 3, is amended to read: 34.16 Subd. 3. [STUDY OF THE APPLICANT.] (a) Before the 34.17 commissioner issues a license, the commissioner shall conduct a 34.18 study of the individuals specified in clauses (1) to (4) 34.19 according to rules of the commissioner. The applicant, license 34.20 holder, the bureau of criminal apprehension, and county 34.21 agencies, after written notice to the individual who is the 34.22 subject of the study, shall help with the study by giving the 34.23 commissioner criminal conviction data and reports about abuse or 34.24 neglect of adults in licensed programs substantiated under 34.25 section 626.557 and the maltreatment of minors in licensed 34.26 programs substantiated under section 626.556. The individuals 34.27 to be studied shall include: 34.28 (1) the applicant; 34.29 (2) persons over the age of 13 living in the household 34.30 where the licensed program will be provided; 34.31 (3) current employees or contractors of the applicant who 34.32 will have direct contact with persons served by the program; and 34.33 (4) volunteers who have direct contact with persons served 34.34 by the program to provide program services, if the contact is 34.35 not directly supervised by the individuals listed in clause (1) 34.36 or (3). 35.1 The juvenile courts shall also help with the study by 35.2 giving the commissioner existing juvenile court records on 35.3 individuals described in clause (2) relating to delinquency 35.4 proceedings held within either the five years immediately 35.5 preceding the application or the five years immediately 35.6 preceding the individual's 18th birthday, whichever time period 35.7 is longer. The commissioner shall destroy juvenile records 35.8 obtained pursuant to this subdivision when the subject of the 35.9 records reaches age 23. 35.10 For purposes of this section and Minnesota Rules, part 35.11 9543.3070, a finding that a delinquency petition is proven in 35.12 juvenile court shall be considered a conviction in state 35.13 district court. 35.14 For purposes of this subdivision, "direct contact" means 35.15 providing face-to-face care, training, supervision, counseling, 35.16 consultation, or medication assistance to persons served by a 35.17 program. For purposes of this subdivision, "directly supervised" 35.18 means an individual listed in clause (1) or (3) is within sight 35.19 or hearing of a volunteer to the extent that the individual 35.20 listed in clause (1) or (3) is capable at all times of 35.21 intervening to protect the health and safety of the persons 35.22 served by the program who have direct contact with the volunteer. 35.23 A study of an individual in clauses (1) to (4) shall be 35.24 conducted at least upon application for initial license and 35.25 reapplication for a license. No applicant, license holder, or 35.26 individual who is the subject of the study shall pay any fees 35.27 required to conduct the study. 35.28 (b) The individual who is the subject of the study must 35.29 provide the applicant or license holder with sufficient 35.30 information to ensure an accurate study including the 35.31 individual's first, middle, and last name; home address, city, 35.32 county, and state of residence; zip code; sex; date of birth; 35.33 and driver's license number. The applicant or license holder 35.34 shall provide this information about an individual in paragraph 35.35 (a), clauses (1) to (4), on forms prescribed by the 35.36 commissioner. The commissioner may request additional 36.1 information of the individual, which shall be optional for the 36.2 individual to provide, such as the individual's social security 36.3 number or race. 36.4 (c) Except for child foster care, adult foster care, and 36.5 family day care homes, a study must include information from the 36.6 county agency's record of substantiated abuse or neglect of 36.7 adults in licensed programs, and the maltreatment of minors in 36.8 licensed programs, information from juvenile courts as required 36.9 in paragraph (a) for persons listed in paragraph (a), clause 36.10 (2), and information from the bureau of criminal apprehension. 36.11 For child foster care, adult foster care, and family day care 36.12 homes, the study must include information from the county 36.13 agency's record of substantiated abuse or neglect of adults, and 36.14 the maltreatment of minors, information from juvenile courts as 36.15 required in paragraph (a) for persons listed in paragraph (a), 36.16 clause (2), and information from the bureau of criminal 36.17 apprehension. The commissioner may also review arrest and 36.18 investigative information from the bureau of criminal 36.19 apprehension, a county attorney, county sheriff, county agency, 36.20 local chief of police, other states, the courts, or a national 36.21 criminal record repository if the commissioner has reasonable 36.22 cause to believe the information is pertinent to the 36.23 disqualification of an individual listed in paragraph (a), 36.24 clauses (1) to (4). The commissioner is not required to conduct 36.25 more than one review of a subject's records from the national 36.26 criminal record repository if a review of the subject's criminal 36.27 history with the national criminal record repository has already 36.28 been completed by the commissioner and there has been no break 36.29 in the subject's affiliation with the license holder who 36.30 initiated the background studies. 36.31 (d) An applicant's or license holder's failure or refusal 36.32 to cooperate with the commissioner is reasonable cause to deny 36.33 an application or immediately suspend, suspend, or revoke a 36.34 license. Failure or refusal of an individual to cooperate with 36.35 the study is just cause for denying or terminating employment of 36.36 the individual if the individual's failure or refusal to 37.1 cooperate could cause the applicant's application to be denied 37.2 or the license holder's license to be immediately suspended, 37.3 suspended, or revoked. 37.4 (e) The commissioner shall not consider an application to 37.5 be complete until all of the information required to be provided 37.6 under this subdivision has been received. 37.7 (f) No person in paragraph (a), clause (1), (2), (3), or 37.8 (4) who is disqualified as a result of this section may be 37.9 retained by the agency in a position involving direct contact 37.10 with persons served by the program. 37.11 (g) Termination of persons in paragraph (a), clause (1), 37.12 (2), (3), or (4) made in good faith reliance on a notice of 37.13 disqualification provided by the commissioner shall not subject 37.14 the applicant or license holder to civil liability. 37.15 (h) The commissioner may establish records to fulfill the 37.16 requirements of this section. 37.17 (i) The commissioner may not disqualify an individual 37.18 subject to a study under this section because that person has, 37.19 or has had, a mental illness as defined in section 245.462, 37.20 subdivision 20. 37.21 (j) An individual who is subject to an applicant background 37.22 study under this section and whose disqualification in 37.23 connection with a license would be subject to the limitations on 37.24 reconsideration set forth in subdivision 3b, paragraph (c), 37.25 shall be disqualified for conviction of the crimes specified in 37.26 the manner specified in subdivision 3b, paragraph (c). The 37.27 commissioner of human services shall amend Minnesota Rules, part 37.28 9543.3070, to conform to this section. 37.29 Sec. 8. Minnesota Statutes 1994, section 245A.04, 37.30 subdivision 3b, is amended to read: 37.31 Subd. 3b. [RECONSIDERATION OF DISQUALIFICATION.] (a) 37.32 Within 30 days after receiving notice of disqualification under 37.33 subdivision 3a, the individual who is the subject of the study 37.34 may request reconsideration of the notice of disqualification. 37.35 The individual must submit the request for reconsideration to 37.36 the commissioner in writing. The individual must present 38.1 information to show that: 38.2 (1) the information the commissioner relied upon is 38.3 incorrect; or 38.4 (2) the subject of the study does not pose a risk of harm 38.5 to any person served by the applicant or license holder. 38.6 (b) The commissioner may set aside the disqualification if 38.7 the commissioner finds that the information the commissioner 38.8 relied upon is incorrect or the individual does not pose a risk 38.9 of harm to any person served by the applicant or license 38.10 holder. The commissioner shall review the consequences of the 38.11 event or events that could lead to disqualification, whether 38.12 there is more than one disqualifying event, the vulnerability of 38.13 the victim at the time of the event, the time elapsed without a 38.14 repeat of the same or similar event, and documentation of 38.15 successful completion by the individual studied of training or 38.16 rehabilitation pertinent to the event. In reviewing a 38.17 disqualification, the commissioner shall give preeminent weight 38.18 to the safety of each person to be served by the license holder 38.19 or applicant over the interests of the license holder or 38.20 applicant. 38.21 (c) Unless the information the commissioner relied on in 38.22 disqualifying an individual is incorrect, the commissioner may 38.23 not set aside the disqualification of an individual in 38.24 connection with a license to provide family day care for 38.25 children, foster care for children in the provider's own home, 38.26 or foster care or day care services for adults in the provider's 38.27 own home if: 38.28 (1) less than ten years have passed since the discharge of 38.29 the sentence imposed for the offense; and the individual has 38.30 been convicted of a violation of any offense listed in section 38.31 609.20 (manslaughter in the first degree), 609.205 (manslaughter 38.32 in the second degree), 609.21 (criminal vehicular homicide), 38.33 609.215 (aiding suicide or aiding attempted suicide), 609.221 to 38.34 609.2231 (felony violations of assault in the first, second, 38.35 third, or fourth degree), 609.713 (terroristic threats), 609.235 38.36 (use of drugs to injure or to facilitate crime), 609.24 (simple 39.1 robbery), 609.245 (aggravated robbery), 609.25 (kidnapping), 39.2 609.255 (false imprisonment), 609.561 or 609.562 (arson in the 39.3 first or second degree), 609.71 (riot), 609.582 (burglary in the 39.4 first or second degree), 609.66 (reckless use of a gun or 39.5 dangerous weapon or intentionally pointing a gun at or towards a 39.6 human being), 609.665 (setting a spring gun), 609.67 (unlawfully 39.7 owning, possessing, or operating a machine gun), 609.749 39.8 (stalking), 152.021 or 152.022 (controlled substance crime in 39.9 the first or second degree), 152.023, subdivision 1, clause (3) 39.10 or (4), or subdivision 2, clause (4) (controlled substance crime 39.11 in the third degree), 152.024, subdivision 1, clause (2), (3), 39.12 or (4) (controlled substance crime in the fourth degree), 39.13 609.228 (great bodily harm caused by distribution of drugs), 39.14 609.23 (mistreatment of persons confined), 609.231 (mistreatment 39.15 of residents or patients), 609.265 (abduction), 609.2664 to 39.16 609.2665 (manslaughter of an unborn child in the first or second 39.17 degree), 609.267 to 609.2672 (assault of an unborn child in the 39.18 first, second, or third degree), 609.268 (injury or death of an 39.19 unborn child in the commission of a crime), 617.293 39.20 (disseminating or displaying harmful material to minors), 39.21 609.378 (neglect or endangerment of a child), 609.377 (a gross 39.22 misdemeanor offense of malicious punishment of a child); or an 39.23 attempt or conspiracy to commit any of these offenses, as each 39.24 of these offenses is defined in Minnesota Statutes; or an 39.25 offense in any other state, the elements of which are 39.26 substantially similar to the elements of any of the foregoing 39.27 offenses; 39.28 (2) regardless of how much time has passed since the 39.29 discharge of the sentence imposed for the offense, the 39.30 individual was convicted of a violation of any offense listed in 39.31 sections 609.185 to 609.195 (murder in the first, second, or 39.32 third degree), 609.2661 to 609.2663 (murder of an unborn child 39.33 in the first, second, or third degree), 609.377 (a felony 39.34 offense of malicious punishment of a child), 609.322 39.35 (soliciting, inducement, or promotion of prostitution), 609.323 39.36 (receiving profit derived from prostitution), 609.342 to 609.345 40.1 (criminal sexual conduct in the first, second, third, or fourth 40.2 degree), 609.352 (solicitation of children to engage in sexual 40.3 conduct), 617.246 (use of minors in a sexual performance), 40.4 617.247 (possession of pictorial representations of a minor), 40.5 609.365 (incest), or an attempt or conspiracy to commit any of 40.6 these offenses as defined in Minnesota Statutes, or an offense 40.7 in any other state, the elements of which are substantially 40.8 similar to any of the foregoing offenses; 40.9 (3) within the seven years preceding the study, the 40.10 individual committed an act that constitutes maltreatment of a 40.11 child under section 626.556, subdivision 10e, and that resulted 40.12 in substantial bodily harm as defined in section 609.02, 40.13 subdivision 7a, or substantial mental or emotional harm as 40.14 supported by competent psychological or psychiatric evidence; or 40.15 (4) within the seven years preceding the study, the 40.16 individual was determined under section 626.557 to be the 40.17 perpetrator of a substantiated incident of abuse of a vulnerable 40.18 adult that resulted in substantial bodily harm as defined in 40.19 section 609.02, subdivision 7a, or substantial mental or 40.20 emotional harm as supported by competent psychological or 40.21 psychiatric evidence. 40.22 In the case of any ground for disqualification under 40.23 clauses (1) to (4), if the act was committed by an individual 40.24 other than the applicant or license holder residing in the 40.25 applicant's or license holder's home, the applicant or license 40.26 holder may seek reconsideration when the individual who 40.27 committed the act no longer resides in the home. 40.28 The disqualification periods provided under clauses (1), 40.29 (3), and (4) are the minimum applicable disqualification 40.30 periods. The commissioner may determine that an individual 40.31 should continue to be disqualified from licensure because the 40.32 license holder or applicant poses a risk of harm to a person 40.33 served by that individual after the minimum disqualification 40.34 period has passed. 40.35 (d) The commissioner shall respond in writing to all 40.36 reconsideration requests within 15 working days after receiving 41.1 the request for reconsideration. If the disqualification is set 41.2 aside, the commissioner shall notify the applicant or license 41.3 holder in writing of the decision. 41.4 (e) Except as provided in subdivision 3c, the 41.5 commissioner's decision to disqualify an individual, including 41.6 the decision to grant or deny a reconsideration of 41.7 disqualification under this subdivision, or to set aside or 41.8 uphold the results of the study under subdivision 3, is the 41.9 final administrative agency action and shall not be subject to 41.10 further review in a contested case under chapter 14 involving a 41.11 negative licensing action taken in response to the 41.12 disqualification. 41.13 Sec. 9. Minnesota Statutes 1994, section 245A.04, 41.14 subdivision 7, is amended to read: 41.15 Subd. 7. [ISSUANCE OF A LICENSE; PROVISIONAL LICENSE.] (a) 41.16 If the commissioner determines that the program complies with 41.17 all applicable rules and laws, the commissioner shall issue a 41.18 license. At minimum, the license shall state: 41.19 (1) the name of the license holder; 41.20 (2) the address of the program; 41.21 (3) the effective date and expiration date of the license; 41.22 (4) the type of license; 41.23 (5) the maximum number and ages of persons that may receive 41.24 services from the program; and 41.25 (6) any special conditions of licensure. 41.26 (b) The commissioner may issue a provisional license for a 41.27 period not to exceed one year if: 41.28 (1) the commissioner is unable to conduct the evaluation or 41.29 observation required by subdivision 4, paragraph (a), clauses (3) 41.30 and (4), because the program is not yet operational; 41.31 (2) certain records and documents are not available because 41.32 persons are not yet receiving services from the program; and 41.33 (3) the applicant complies with applicable laws and rules 41.34 in all other respects. 41.35 A provisional license must not be issued except at the time that 41.36 a license is first issued to an applicant. 42.1 (c) A decision by the commissioner to issue a license does 42.2 not guarantee that any person or persons will be placed or cared 42.3 for in the licensed program. A license shall not be 42.4 transferable to another individual, corporation, partnership, 42.5 voluntary association, other organization, or controlling 42.6 individual, or to another location. Unless otherwise specified 42.7 by statute, all licenses expire at 12:01 a.m. on the day after 42.8 the expiration date stated on the license. A license holder 42.9 must apply for and be granted a new license to operate the 42.10 program or the program must not be operated after the expiration 42.11 date. 42.12 Sec. 10. Minnesota Statutes 1994, section 245A.04, 42.13 subdivision 9, is amended to read: 42.14 Subd. 9. [VARIANCES.] The commissioner may grant variances 42.15 to rules that do not affect the health or safety of persons in a 42.16 licensed program if the following conditions are met: 42.17 (1) the variance must be requested by an applicant or 42.18 license holder on a form and in a manner prescribed by the 42.19 commissioner; 42.20 (2) the request for a variance must include the reasons 42.21 that the applicant or license holder cannot comply with a 42.22 requirement as stated in the rule and the alternative equivalent 42.23 measures that the applicant or license holder will follow to 42.24 comply with the intent of the rule; and 42.25 (3) the request must state the period of time for which the 42.26 variance is requested. 42.27 The commissioner may grant a permanent variance when 42.28 conditions under which the variance is requested do not affect 42.29 the health or safety of persons being served by the licensed 42.30 program, nor compromise the qualifications of staff to provide 42.31 services. The permanent variance shall expire as soon as the 42.32 conditions that warranted the variance are modified in any way. 42.33 Any applicant or license holder must inform the commissioner of 42.34 any changes or modifications that have occurred in the 42.35 conditions that warranted the permanent variance. Failure to 42.36 advise the commissioner shall result in revocation of the 43.1 permanent variance and may be cause for other sanctions under 43.2 sections 245A.06 and 245A.07. 43.3 The commissioner's decision to grant or deny a variance 43.4 request is final and not subject to appeal under the provisions 43.5 of chapter 14. 43.6 Sec. 11. Minnesota Statutes 1994, section 245A.06, 43.7 subdivision 2, is amended to read: 43.8 Subd. 2. [RECONSIDERATION OF CORRECTION ORDERS.] If the 43.9 applicant or license holder believes that the contents of the 43.10 commissioner's correction order are in error, the applicant or 43.11 license holder may ask the department of human services to 43.12 reconsider the parts of the correction order that are alleged to 43.13 be in error. The request for reconsideration must be in 43.14 writing, delivered by certified mailand received by the 43.15 commissioner within 20 calendar days after receipt of the 43.16 correction order by the applicant or license holder, and: 43.17 (1) specify the parts of the correction order that are 43.18 alleged to be in error; 43.19 (2) explain why they are in error; and 43.20 (3) include documentation to support the allegation of 43.21 error. 43.22 A request for reconsideration does not stay any provisions 43.23 or requirements of the correction order. The commissioner's 43.24 disposition of a request for reconsideration is final and not 43.25 subject to appeal under chapter 14. 43.26 Sec. 12. Minnesota Statutes 1994, section 245A.06, 43.27 subdivision 4, is amended to read: 43.28 Subd. 4. [NOTICE OF FINE; APPEAL.] A license holder who is 43.29 ordered to pay a fine must be notified of the order by certified 43.30 mail. The notice must be mailed to the address shown on the 43.31 application or the last known address of the license holder. 43.32 The notice must state the reasons the fine was ordered and must 43.33 inform the license holder of the responsibility for payment of 43.34 fines in subdivision 7 and the right to a contested case hearing 43.35 under chapter 14. The license holder may appeal the order to 43.36 forfeit a fine by notifying the commissioner by certified mail 44.1 within 15 calendar days after receiving the order. A timely 44.2 appeal shall stay forfeiture of the fine until the commissioner 44.3 issues a final order under section 245A.08, subdivision 5. 44.4 Sec. 13. Minnesota Statutes 1994, section 245A.06, is 44.5 amended by adding a subdivision to read: 44.6 Subd. 7. [RESPONSIBILITY FOR PAYMENT OF FINES.] When a 44.7 fine has been assessed, the license holder may not avoid payment 44.8 by closing, selling, or otherwise transferring the licensed 44.9 program to a third party. In such an event, the license holder 44.10 will be personally liable for payment. In the case of a 44.11 corporation, each controlling individual is personally and 44.12 jointly liable for payment. 44.13 Sec. 14. Minnesota Statutes 1994, section 245A.07, 44.14 subdivision 3, is amended to read: 44.15 Subd. 3. [SUSPENSION, REVOCATION, PROBATION.] The 44.16 commissioner may suspend, revoke, or make probationary a license 44.17 if a license holder fails to comply fully with applicable laws 44.18 or rules or knowingly gives false or misleading information to 44.19 the commissioner in connection with an application for a license 44.20 or during an investigation. A license holder who has had a 44.21 license suspended, revoked, or made probationary must be given 44.22 notice of the action by certified mail. The notice must be 44.23 mailed to the address shown on the application or the last known 44.24 address of the license holder. The notice must state the 44.25 reasons the license was suspended, revoked, or made probationary. 44.26 (a) If the license was suspended or revoked, the notice 44.27 must inform the license holder of the right to a contested case 44.28 hearing under chapter 14. The license holder may appeal an 44.29 order suspending or revoking a license. The appeal of an order 44.30 suspending or revoking a license must be made in writing by 44.31 certified mail and must be received by the commissioner within 44.32 ten calendar days after the license holder receives notice that 44.33 the license has been suspended or revoked. 44.34 (b) If the license was made probationary, the notice must 44.35 inform the license holder of the right to request a 44.36 reconsideration by the commissioner. The request for 45.1 reconsideration must be made in writing by certified mail and 45.2 must be received by the commissioner within ten calendar days 45.3 after the license holder receives notice that the license has 45.4 been made probationary. The license holder may submit with the 45.5 request for reconsideration written argument or evidence in 45.6 support of the request for reconsideration. The commissioner's 45.7 disposition of a request for reconsideration is final and is not 45.8 subject to appeal under chapter 14. 45.9 Sec. 15. Minnesota Statutes 1994, section 245A.09, is 45.10 amended by adding a subdivision to read: 45.11 Subd. 8. [INTERPRETIVE GUIDELINES; AUTHORITY.] The 45.12 commissioner of human services may develop and publish 45.13 interpretive guidelines. 45.14 Sec. 16. Minnesota Statutes 1994, section 245A.09, is 45.15 amended by adding a subdivision to read: 45.16 Subd. 9. [EFFECT OF INTERPRETIVE GUIDELINES.] Interpretive 45.17 guidelines do not have the force and effect of law and have no 45.18 precedential effect, but may be relied on by consumers, 45.19 providers of service, county agencies, the department of human 45.20 services, and others concerned until revoked or modified. A 45.21 guideline may be expressly revoked or modified by the 45.22 commissioner, by the issuance of another interpretive guideline, 45.23 but may not be revoked or modified retroactively to the 45.24 detriment of consumers, providers of service, county agencies, 45.25 the department of human services, or others concerned. A change 45.26 in the law or an interpretation of the law occurring after the 45.27 interpretive guidelines are issued, whether in the form of a 45.28 statute, court decision, administrative ruling, or subsequent 45.29 interpretive guideline, results in the revocation or 45.30 modification of the previously adopted guidelines to the extent 45.31 that the change affects the guidelines. 45.32 Sec. 17. Minnesota Statutes 1994, section 245A.09, is 45.33 amended by adding a subdivision to read: 45.34 Subd. 10. [RULEMAKING PROCESS; COMMISSIONER EXEMPTED.] 45.35 When developing, making, adopting, and issuing interpretive 45.36 guidelines under the authority granted under subdivision 8, the 46.1 commissioner is exempt from the rulemaking provisions of chapter 46.2 14. 46.3 Sec. 18. Minnesota Statutes 1994, section 245A.09, is 46.4 amended by adding a subdivision to read: 46.5 Subd. 11. [ISSUANCE; DISCRETION OF THE COMMISSIONER.] The 46.6 issuance of interpretive guidelines is at the discretion of the 46.7 commissioner of human services. 46.8 Sec. 19. Minnesota Statutes 1994, section 245A.09, is 46.9 amended by adding a subdivision to read: 46.10 Subd. 12. [PUBLICATION OF GUIDELINES.] The commissioner 46.11 shall publish notice of interpretive guidelines availability in 46.12 the State Register. The commissioner may publish or make 46.13 available the interpretive guidelines in any manner determined 46.14 by the commissioner, provided they are accessible to the general 46.15 public. The commissioner may charge a reasonable fee for copies 46.16 of the guidelines requested by interested parties when they are 46.17 provided by the commissioner. 46.18 Sec. 20. Minnesota Statutes 1994, section 245A.14, 46.19 subdivision 6, is amended to read: 46.20 Subd. 6. [DROP-IN CHILD CARE PROGRAMS.] (a) Except as 46.21 expressly set forth in this subdivision, drop-in child care 46.22 programs must be licensed as a drop-in program under the rules 46.23 governing child care programs operated in a center. 46.24 (b) Drop-in child care programs are exempt from the 46.25 following Minnesota Rules: 46.26 (1) part 9503.0040; 46.27 (2) part 9503.0045, subpart 1, items F and G; 46.28 (3) part 9503.0050, subpart 6, except for children less 46.29 than 2-1/2 years old; 46.30 (4) one-half the requirements of part 9503.0060, subpart 4, 46.31 item A, subitems (2), (5), and (8), subpart 5, item A, subitems 46.32 (2), (3), and (7), and subpart 6, item A, subitems (3) and (6); 46.33 (5) part 9503.0070; and 46.34 (6) part 9503.0090, subpart 2. 46.35 (c) A drop-in child care program must be operated under the 46.36 supervision of a person qualified as a director and a teacher. 47.1 (d) A drop-in child care program must have at least two 47.2 persons on staff whenever the program is operating, except that 47.3 the commissioner may permit variances from this requirement 47.4 under specified circumstances for parent cooperative programs, 47.5 as long as all other staff-to-child ratios are met. 47.6 (e) Whenever the total number of children present to be 47.7 cared for at a center is more than 20, children that are younger 47.8 than age 2-1/2 must be in a separate group. This group may 47.9 contain children up to 60 months old. This group must be cared 47.10 for in an area that is physically separated from older children. 47.11 (f) A drop-in child care program must maintain a minimum 47.12 staff ratio for children age 2-1/2 or greater of one staff 47.13 person for each ten children. 47.14 (g) If the program has additional staff who are on call as 47.15 a mandatory condition of their employment, the minimum 47.16 child-to-staff ratio may be exceeded only for children age 2-1/2 47.17 or greater, by a maximum of four children, for no more than 20 47.18 minutes while additional staff are in transit. 47.19 (h) The minimum staff-to-child ratio for infants up to 16 47.20 months of age is one staff person for every four infants. The 47.21 minimum staff-to-child ratio for children age 17 months to 30 47.22 months is one staff for every seven children. 47.23 (i) In drop-in care programs that serve both infants and 47.24 older children, children up to age 2-1/2 may be supervised by 47.25 assistant teachers, as long as other staff are present in 47.26 appropriate ratios. 47.27 (j) The minimum staff distribution pattern for a drop-in 47.28 child care program serving children age 2-1/2 or greater is: 47.29 the first staff member must be a teacher; the second, third, and 47.30 fourth staff members must have at least the qualifications of a 47.31 child care aide; the fifth staff member must have at least the 47.32 qualifications of an assistant teacher; the sixth, seventh, and 47.33 eighth staff members must have at least the qualifications of a 47.34 child care aide; and the ninth staff person must have at least 47.35 the qualifications of an assistant teacher. 47.36 (k) A drop-in child care program may care for siblings 16 48.1 months or older together in any group. For purposes of this 48.2 subdivision, sibling is defined as sister or brother, 48.3 half-sister or half-brother, or stepsister or stepbrother. 48.4 (l) The commissioner may grant a variance to any of the 48.5 requirements in paragraphs (a) to (k), as long as the health and 48.6 safety of the persons served by the program are not affected. 48.7 The request for a variance shall comply with the provisions in 48.8 section 245A.04, subdivision 9. 48.9 Sec. 21. Minnesota Statutes 1994, section 256.014, 48.10 subdivision 1, is amended to read: 48.11 Subdivision 1. [ESTABLISHMENT OF SYSTEMS.] The 48.12 commissioner of human services shall establish and enhance 48.13 computer systems necessary for the efficient operation of the 48.14 programs the commissioner supervises, including: 48.15 (1) management and administration of the food stamp and 48.16 income maintenance programs, including the electronic 48.17 distribution of benefits; 48.18 (2) management and administration of the child support 48.19 enforcement program; and 48.20 (3) administration of medical assistance and general 48.21 assistance medical care. 48.22 The commissioner shall distribute the nonfederal share of 48.23 the costs of operating and maintaining the systems to the 48.24 commissioner and to the counties participating in the system in 48.25 a manner that reflects actual system usage, except that the 48.26 nonfederal share of the costs of the MAXIS computer system and 48.27 child support enforcement systems shall be borne entirely by the 48.28 commissioner. Development costs must not be assessed against 48.29 county agencies. 48.30 Sec. 22. Minnesota Statutes 1994, section 256.025, 48.31 subdivision 1, is amended to read: 48.32 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 48.33 section, the following terms have the meanings given them. 48.34 (b) "Base amount" means the calendar year 1990 county share 48.35 of county agency expenditures for all of the programs specified 48.36 in subdivision 2, except for the programs in subdivision 2, 49.1 clauses (4), (7), and (13). The 1990 base amount for 49.2 subdivision 2, clause (4), shall be reduced by one-seventh for 49.3 each county, and the 1990 base amount for subdivision 2, clause 49.4 (7), shall be reduced by seven-tenths for each county, and those 49.5 amounts in total shall be the 1990 base amount for group 49.6 residential housing in subdivision 2, clause (13). 49.7 (c) "County agency expenditure" means the total expenditure 49.8 or cost incurred by the county of financial responsibility for 49.9 the benefits and services for each of the programs specified in 49.10 subdivision 2, excluding county optional costs which are not 49.11 reimbursable with state funds. The term includes the federal, 49.12 state, and county share of costs for programs in which there is 49.13 federal financial participation. For programs in which there is 49.14 no federal financial participation, the term includes the state 49.15 and county share of costs. The term excludes county 49.16 administrative costs, unless otherwise specified. 49.17 (d) "Nonfederal share" means the sum of state and county 49.18 shares of costs of the programs specified in subdivision 2. 49.19 (e) The "county share of county agency expenditures growth 49.20 amount" is the amount by which the county share of county agency 49.21 expenditures in calendar years 1991 to20002002 has increased 49.22 over the base amount. 49.23 Sec. 23. Minnesota Statutes 1994, section 256.025, 49.24 subdivision 2, is amended to read: 49.25 Subd. 2. [COVERED PROGRAMS AND SERVICES.] The procedures 49.26 in this section govern payment of county agency expenditures for 49.27 benefits and services distributed under the following programs: 49.28 (1) aid to families with dependent children under sections 49.29 256.82, subdivision 1, and 256.935, subdivision 1; 49.30 (2) medical assistance under sections 256B.041, subdivision 49.31 5, and 256B.19, subdivision 1; 49.32 (3) general assistance medical care under section 256D.03, 49.33 subdivision 6; 49.34 (4) general assistance under section 256D.03, subdivision 49.35 2; 49.36 (5) work readiness under section 256D.03, subdivision 2, 50.1 for assistance costs incurred prior to July 1, 1995; 50.2 (6) emergency assistance under section 256.871, subdivision 50.3 6; 50.4 (7) Minnesota supplemental aid under section 256D.36, 50.5 subdivision 1; 50.6 (8) preadmission screening and alternative care grants; 50.7 (9) work readiness services under section 256D.051 for 50.8 employment and training services costs incurred prior to July 1, 50.9 1995; 50.10 (10) case management services under section 256.736, 50.11 subdivision 13, for case management service costs incurred prior 50.12 to July 1, 1995; 50.13 (11) general assistance claims processing, medical 50.14 transportation and related costs; 50.15 (12) medical assistance, medical transportation and related 50.16 costs; and 50.17 (13) group residential housing under section 256I.05, 50.18 subdivision 8, transferred from programs in clauses (4) and (7). 50.19 Sec. 24. Minnesota Statutes 1994, section 256.025, 50.20 subdivision 3, is amended to read: 50.21 Subd. 3. [PAYMENT METHODS.] (a) Beginning July 1, 1991, 50.22 the state will reimburse counties for the county share of county 50.23 agency expenditures for benefits and services distributed under 50.24 subdivision 2. Reimbursement may take the form of offsets to 50.25 billings of a county, if the county agrees to the offset process. 50.26 (b) Payments under subdivision 4 are only for client 50.27 benefits and services distributed under subdivision 2 and do not 50.28 include reimbursement for county administrative expenses. 50.29 (c) The state and the county agencies shall pay for 50.30 assistance programs as follows: 50.31 (1) Where the state issues payments for the programs, the 50.32 county shall monthly or quarterly pay to the state, as required 50.33 by the department of human services, the portion of program 50.34 costs not met by federal and state funds. The payment shall be 50.35 an estimate that is based on actual expenditures from the prior 50.36 period and that is sufficient to compensate for the county share 51.1 of disbursements as well as state and federal shares of 51.2 recoveries; 51.3 (2) Where the county agencies issue payments for the 51.4 programs, the state shall monthly or quarterly pay to counties 51.5 all federal funds available for those programs together with an 51.6 amount of state funds equal to the state share of expenditures; 51.7 and 51.8 (3) Payments made under this paragraph are subject to 51.9 section 256.017. Adjustment of any overestimate or 51.10 underestimate in payments shall be made by the state agency in 51.11 any succeeding month. 51.12 Sec. 25. Minnesota Statutes 1994, section 256.026, is 51.13 amended to read: 51.14 256.026 [ANNUAL APPROPRIATION.] 51.15 (a) There shall be appropriated from the general fund to 51.16 the commissioner of human services in fiscal year19941996 the 51.17 amount of $136,154,768 and in fiscal year 1997 and each fiscal 51.18 year thereafter the amount of$142,339,359, which is the sum of51.19the amount of human services aid determined for all counties in51.20Minnesota for calendar year 1992 under Minnesota Statutes 1992,51.21section 273.1398, subdivision 5a, before any adjustments for51.22calendar year 1991$133,781,768. 51.23 (b) In addition to the amount in paragraph (a), there shall 51.24 also be annually appropriated from the general fund to the 51.25 commissioner of human services in fiscal years 1996, 1997, 1998, 51.26 1999, 2000, and 2001 the amount of$5,930,807$5,574,241. 51.27 (c) The amounts appropriated under paragraphs (a) and (b) 51.28 shall be used with other appropriations to make payments 51.29 required under section 256.025 for fiscal year19941996 and 51.30 thereafter. 51.31 Sec. 26. Minnesota Statutes 1994, section 256.034, 51.32 subdivision 1, is amended to read: 51.33 Subdivision 1. [CONSOLIDATION OF TYPES OF ASSISTANCE.] 51.34 Under the Minnesota family investment plan, assistance 51.35 previously provided to families through the AFDC, food stamp, 51.36 and general assistance programs must be combined into a single 52.1 cash assistance program. As authorized by Congress, families 52.2 receiving assistance through the Minnesota family investment 52.3 plan are automatically eligible for and entitled to medical 52.4 assistance under chapter 256B. Federal, state, and local funds 52.5 that would otherwise be allocated for assistance to families 52.6 under the AFDC, food stamp, and general assistance programs must 52.7 be transferred to the Minnesota family investment plan. The 52.8 provisions of the Minnesota family investment plan prevail over 52.9 any provisions of sections 245.771, 256.72 to 256.87, 256D.01 to 52.10 256D.21, or 393.07, subdivisions 10 and 10a, and any rules 52.11 implementing those sections with which they are irreconcilable. 52.12 The food stamp, general assistance, and work readiness programs 52.13 for single persons and couples who are not responsible for the 52.14 care of children are not replaced by the Minnesota family 52.15 investment plan. Unless stated otherwise in statutes or rules 52.16 governing the Minnesota family investment plan, participants in 52.17 the Minnesota family investment plan shall be considered to be 52.18 recipients of aid under aid to families with dependent children, 52.19 family general assistance, and food stamps for the purposes of 52.20 statutes and rules affecting such recipients or allocations of 52.21 funding based on the assistance status of the recipients, and to 52.22 specifically be subject to the provisions of section 256.98. 52.23 Sec. 27. Minnesota Statutes 1994, section 256.045, 52.24 subdivision 3, is amended to read: 52.25 Subd. 3. [STATE AGENCY HEARINGS.] (a) Any person applying 52.26 for, receiving or having received public assistance or a program 52.27 of social services granted by the state agency or a county 52.28 agency under sections 252.32, 256.031 to 256.036, and 256.72 to 52.29 256.879, chapters 256B, 256D, 256E, 261, or the federal Food 52.30 Stamp Act whose application for assistance is denied, not acted 52.31 upon with reasonable promptness, or whose assistance is 52.32 suspended, reduced, terminated, or claimed to have been 52.33 incorrectly paid, or any patient or relative aggrieved by an 52.34 order of the commissioner under section 252.27, or a party 52.35 aggrieved by a ruling of a prepaid health plan, may contest that 52.36 action or decision before the state agency by submitting a 53.1 written request for a hearing to the state agency within 30 days 53.2 after receiving written notice of the action or decision, or 53.3 within 90 days of such written notice if the applicant, 53.4 recipient, patient, or relative shows good cause why the request 53.5 was not submitted within the 30-day time limit. 53.6 (b) Except for a prepaid health plan, a vendor of medical 53.7 care as defined in section 256B.02, subdivision 7, or a vendor 53.8 under contract with a county agency to provide social services 53.9 under section 256E.08, subdivision 4, is not a party and may not 53.10 request a hearing under this section, except if assisting a 53.11 recipient as provided in subdivision 4. 53.12 (c) An applicant or recipient is not entitled to receive 53.13 social services beyond the services included in the amended 53.14 community social services plan developed under section 256E.081, 53.15 subdivision 3, if the county agency has met the requirements in 53.16 section 256E.081. 53.17 Sec. 28. Minnesota Statutes 1994, section 256.045, 53.18 subdivision 4, is amended to read: 53.19 Subd. 4. [CONDUCT OF HEARINGS.] All hearings held pursuant 53.20 to subdivision 3, 3a, or 4a shall be conducted according to the 53.21 provisions of the federal Social Security Act and the 53.22 regulations implemented in accordance with that act to enable 53.23 this state to qualify for federal grants-in-aid, and according 53.24 to the rules and written policies of the commissioner of human 53.25 services. County agencies shall install equipment necessary to 53.26 conduct telephone hearings. A state human services referee may 53.27 schedule a telephone conference hearing when the distance or 53.28 time required to travel to the county agency offices will cause 53.29 a delay in the issuance of an order, or to promote efficiency, 53.30 or at the mutual request of the parties. Hearings may be 53.31 conducted by telephone conferences unless the applicant, 53.32 recipient, or former recipient objects. The hearing shall not 53.33 be held earlier than five days after filing of the required 53.34 notice with the county or state agency. The state human 53.35 services referee shall notify all interested persons of the 53.36 time, date, and location of the hearing at least five days 54.1 before the date of the hearing. Interested persons may be 54.2 represented by legal counsel or other representative of their 54.3 choice, including a provider of therapy services, at the hearing 54.4 and may appear personally, testify and offer evidence, and 54.5 examine and cross-examine witnesses. The applicant, recipient, 54.6 or former recipient shall have the opportunity to examine the 54.7 contents of the case file and all documents and records to be 54.8 used by the county or state agency at the hearing at a 54.9 reasonable time before the date of the hearing and during the 54.10 hearing. Upon request, the county agency shall provide 54.11 reimbursement for transportation, child care, photocopying, 54.12 medical assessment, witness fee, and other necessary and 54.13 reasonable costs incurred by the applicant, recipient, or former 54.14 recipient in connection with the appeal. All evidence, except 54.15 that privileged by law, commonly accepted by reasonable people 54.16 in the conduct of their affairs as having probative value with 54.17 respect to the issues shall be submitted at the hearing and such 54.18 hearing shall not be "a contested case" within the meaning of 54.19 section 14.02, subdivision 3. The agency must present its 54.20 evidence prior to or at the hearing, and may not submit evidence 54.21 after the hearing except by agreement of the parties at the 54.22 hearing, provided the recipient has the opportunity to respond. 54.23 Sec. 29. Minnesota Statutes 1994, section 256.045, 54.24 subdivision 5, is amended to read: 54.25 Subd. 5. [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] A 54.26 state human services referee shall conduct a hearing on the 54.27 appeal and shall recommend an order to the commissioner of human 54.28 services. The recommended order must be based on all relevant 54.29 evidence and must not be limited to a review of the propriety of 54.30 the state or county agency's action. A referee may take 54.31 official notice of adjudicative facts. The commissioner of 54.32 human services may accept the recommended order of a state human 54.33 services referee and issue the order to the county agency and 54.34 the applicant, recipient, former recipient, or prepaid health 54.35 plan. The commissioner on refusing to accept the recommended 54.36 order of the state human services referee, shall notify the 55.1 county agency and the applicant, recipient, former recipient, or 55.2 prepaid health plan of that fact and shall state reasons 55.3 therefor and shall allow each party ten days' time to submit 55.4 additional written argument on the matter. After the expiration 55.5 of the ten-day period, the commissioner shall issue an order on 55.6 the matter to the county agency and the applicant, recipient, 55.7 former recipient, or prepaid health plan. 55.8 A party aggrieved by an order of the commissioner may 55.9 appeal under subdivision 7, or request reconsideration by the 55.10 commissioner within 30 days after the date the commissioner 55.11 issues the order. The commissioner may reconsider an order upon 55.12 request of any party or on the commissioner's own motion. A 55.13 request for reconsideration does not stay implementation of the 55.14 commissioner's order. Upon reconsideration, the commissioner 55.15 may issue an amended order or an order affirming the original 55.16 order. 55.17 Any order of the commissioner issued under this subdivision 55.18 shall be conclusive upon the parties unless appeal is taken in 55.19 the manner provided by subdivision 7. Any order of the 55.20 commissioner is binding on the parties and must be implemented 55.21 by the state agency or a county agency until the order is 55.22 reversed by the district court, or unless the commissioner or a 55.23 district court orders monthly assistance or aid or services paid 55.24 or provided under subdivision 10. 55.25 Except for a prepaid health plan, a vendor of medical care 55.26 as defined in section 256B.02, subdivision 7, or a vendor under 55.27 contract with a county agency to provide social services under 55.28 section 256E.08, subdivision 4, is not a party and may not 55.29 request a hearing or seek judicial review of an order issued 55.30 under this section, unless assisting a recipient as provided in 55.31 subdivision 4. 55.32 Sec. 30. Minnesota Statutes 1994, section 256.98, 55.33 subdivision 1, is amended to read: 55.34 Subdivision 1. [WRONGFULLY OBTAINING ASSISTANCE.] A person 55.35 who obtains, or attempts to obtain, or aids or abets any person 55.36 to obtain by means of a willfully false statement or 56.1 representation, by intentional concealment of a material fact, 56.2 or by impersonation or other fraudulent device, assistance to 56.3 which the person is not entitled or assistance greater than that 56.4 to which the person is entitled, or who knowingly aids or abets 56.5 in buying or in any way disposing of the property of a recipient 56.6 or applicant of assistance without the consent of the county 56.7 agency with intent to defeat the purposes of sections 56.8 256.12, 256.031 to 256.0361, 256.72 to 256.871, and chapter 56.9 256B, or all of these sections is guilty of theft and shall be 56.10 sentenced pursuant to section 609.52, subdivision 3, clauses 56.11 (2), (3)(a) and (c), (4), and (5). 56.12 Sec. 31. Minnesota Statutes 1994, section 256.98, 56.13 subdivision 8, is amended to read: 56.14 Subd. 8. [DISQUALIFICATION FROM PROGRAM.] Any person found 56.15 to be guilty of wrongfully obtaining assistance by a federal or 56.16 state court or by an administrative hearing determination, or 56.17 waiver thereof, through a disqualification consent agreement, or 56.18 as part of any approved diversion plan under section 401.065 in 56.19eitherthe aid to families with dependent children programor, 56.20 the food stamp program, the Minnesota family investment plan, 56.21 the general assistance or family general assistance program, the 56.22 Minnesota supplemental aid program, or the work readiness 56.23 program shall be disqualified from that program. The needs of 56.24 that individual shall not be taken into consideration in 56.25 determining the grant level for that assistance unit: 56.26 (1) for six months after the first offense; 56.27 (2) for 12 months after the second offense; and 56.28 (3) permanently after the third or subsequent offense. 56.29AnyThe periodfor which sanctions are imposed is56.30effective,of program disqualification shall begin on the date 56.31 stipulated on the advance notice of disqualification without 56.32 possibility of postponement for administrative stay,or 56.33 administrative hearing and shall continue through completion 56.34 unless and until the findings upon which the sanctions were 56.35 imposed are reversed by a court of competent jurisdiction. The 56.36 period for which sanctions are imposed is not subject to 57.1 review. The sanctions provided under this subdivision are in 57.2 addition to, and not in substitution for, any other sanctions 57.3 that may be provided for by law for the offense involved. A 57.4 disqualification established through hearing or waiver shall 57.5 result in the disqualification period beginning immediately 57.6 unless the person has become otherwise ineligible for 57.7 assistance. If the person is ineligible for assistance, the 57.8 disqualification period begins when the person again meets the 57.9 eligibility criteria of the program from which they were 57.10 disqualified. 57.11 Sec. 32. Minnesota Statutes 1994, section 256.983, 57.12 subdivision 4, is amended to read: 57.13 Subd. 4. [FUNDING.] (a) Every involved county agency shall 57.14 either have in place or obtain an approved contract which meets 57.15 all federal requirements necessary to obtain enhanced federal 57.16 funding for its welfare fraud control and fraud prevention 57.17 investigation programs. County agency reimbursement shall be 57.18 made through the settlement provisions applicable to the aid to 57.19 families with dependent children and food stamp programs. 57.20 (b) After allowing an opportunity to establish compliance, 57.21 the commissioner will deny administrative reimbursement if for 57.22 any three-month period during any grant year, a county agency 57.23 fails to comply with fraud investigation guidelines, or fails to 57.24 meet the cost-effectiveness standards developed by the 57.25 commissioner. This result is contingent on the commissioner 57.26 providing written notice, including an offer of technical 57.27 assistance, within 30 days of the end of the third or subsequent 57.28 month of noncompliance. The county agency shall be required to 57.29 submit a corrective action plan to the commissioner within 30 57.30 days of receipt of a notice of noncompliance. Failure to submit 57.31 a corrective action plan or, continued deviation from standards 57.32 of more than ten percent after submission of a corrective action 57.33 plan, will result in denial of funding for each subsequent month 57.34 during the grant year or billing the county agency for fraud 57.35 prevention investigation (FPI) service provided by the 57.36 commissioner. The denial of funding shall apply to the general 58.1 settlement received by the county agency on a quarterly basis 58.2 and shall not reduce the grant amount applicable to the FPI 58.3 project. 58.4 Sec. 33. [256.986] [FRAUD CONTROL; PROGRAM INTEGRITY 58.5 REINVESTMENT PROJECT.] 58.6 Subdivision 1. [PROGRAM ESTABLISHED.] Within the limits of 58.7 available state and federal appropriations, and to the extent 58.8 required or authorized by applicable federal regulations, the 58.9 commissioner of human services shall make funding available to 58.10 county agencies for the establishment of program integrity 58.11 reinvestment initiatives. The project shall initially be 58.12 limited to those county agencies participating in federally 58.13 funded optional fraud control programs as of January 1, 1995. 58.14 Subd. 2. [COUNTY PROPOSALS.] Each included county shall 58.15 develop and submit annual funding, staffing, and operating grant 58.16 proposals to the commissioner no later than April 30 of each 58.17 year. For the first operating year only, the proposal shall be 58.18 submitted no later than October 30. Each proposal shall provide 58.19 information on: (a) the staffing and funding of the fraud 58.20 investigation and prosecution operations; (b) job descriptions 58.21 for agency fraud control staff; (c) contracts covering outside 58.22 investigative agencies; (d) operational methods to integrate the 58.23 use of fraud prevention investigation techniques; and (e) 58.24 administrative disqualification hearings and diversions into the 58.25 existing county fraud control and prosecution procedures. 58.26 Subd. 3. [DEPARTMENT RESPONSIBILITIES.] The commissioner 58.27 shall provide written instructions outlining the contents of the 58.28 proposals to be submitted under this section. Instructions 58.29 shall be made available 30 days prior to the date by which 58.30 proposals under subdivision 2 must be submitted. The 58.31 commissioner shall establish training programs which shall be 58.32 attended by fraud control staff of all involved counties. The 58.33 commissioner shall also develop the necessary operational 58.34 guidelines, forms, and reporting mechanisms which shall be used 58.35 by the involved counties. 58.36 Subd. 4. [STANDARDS.] The commissioner shall establish 59.1 standards governing the performance levels of involved county 59.2 investigative units based on grant agreements negotiated with 59.3 the involved county agencies. The standards shall take into 59.4 consideration and may include investigative caseloads, grant 59.5 savings levels, the comparison of fraud prevention and 59.6 prosecution directed investigations, utilization levels of 59.7 administrative disqualification hearings, the timely reporting 59.8 and implementation of disqualifications, and the timeliness of 59.9 reports received from prosecutors. 59.10 Subd. 5. [FUNDING.] (a) Grant funds are intended to help 59.11 offset the reduction in federal financial participation to 50 59.12 percent and may be apportioned to the participating counties 59.13 whenever feasible, and within the commissioner's discretion, to 59.14 achieve this goal. State funding shall be made available 59.15 contingent on counties submitting a plan that is approved by the 59.16 department of human services. Failure or delay in obtaining 59.17 that approval shall not, however, eliminate the obligation to 59.18 maintain fraud control efforts at the January 1, 1995, level. 59.19 Additional counties may be added to the project to the extent 59.20 that funds are subsequently made available. Every involved 59.21 county must meet all federal requirements necessary to obtain 59.22 federal funding for its welfare fraud control and prevention 59.23 programs. County agency reimbursement shall be made through the 59.24 settlement provisions applicable to the AFDC and food stamp 59.25 programs. 59.26 (b) Should a county agency fail to comply with the 59.27 standards set, or fail to meet cost-effectiveness standards 59.28 developed by the commissioner for three months during any grant 59.29 year, the commissioner shall deny reimbursement or 59.30 administrative costs, after allowing an opportunity to establish 59.31 compliance. 59.32 (c) Any denial of reimbursement under clause (b) is 59.33 contingent on the commissioner providing written notice, 59.34 including an offer of technical assistance, within 30 days of 59.35 the end of the third or subsequent months of noncompliance. The 59.36 county agency shall be required to submit a corrective action 60.1 plan to the commissioner within 30 days of receipt of a notice 60.2 of noncompliance. Failure to submit a corrective action plan or 60.3 continued deviation from standards of more than ten percent 60.4 after submission of corrective action plan, will result in 60.5 denial of funding for each such month during the grant year, or 60.6 billing the county agency for program integrity reinvestment 60.7 project services provided by the commissioner. The denial of 60.8 funding shall apply to the general settlement received by the 60.9 county agency on a quarterly basis and shall not reduce the 60.10 grant amount applicable to the program integrity reinvestment 60.11 project. 60.12 Sec. 34. [256.9861] [ASSISTANCE TRANSACTION CARD FEE.] 60.13 Subdivision 1. [REPLACEMENT CARD.] The commissioner of 60.14 human services may charge a cardholder, defined as a person in 60.15 whose name the transaction card was issued, a $2 fee to replace 60.16 an assistance transaction card. The fees shall be appropriated 60.17 to the commissioner and used for electronic benefit purposes. 60.18 Subd. 2. [TRANSACTION FEE.] The commissioner may charge 60.19 transaction fees in accordance with this subdivision up to a 60.20 maximum of $10 in transaction fees per cardholder per month. In 60.21 a given month, the first four cash withdrawals made by an 60.22 individual cardholder are free. For subsequent cash 60.23 withdrawals, $1 may be charged. No transaction fee can be 60.24 charged if the card is used to purchase goods or services on a 60.25 point of sale basis. A transaction fee subsequently set by the 60.26 federal government may supersede a fee established under this 60.27 subdivision. The fees shall be appropriated to the commissioner 60.28 and used for electronic benefit purposes. 60.29 Sec. 35. Minnesota Statutes 1994, section 524.6-207, is 60.30 amended to read: 60.31 524.6-207 [RIGHTS OF CREDITORS.] 60.32 No multiple-party account will be effective against an 60.33 estate of a deceased party to transfer to a survivor sums needed 60.34 to pay debts, taxes, and expenses of administration, including 60.35 statutory allowances to the surviving spouse, minor children and 60.36 dependent children or against a county agency with a claim 61.1 authorized by section 256B.15, if other assets of the estate are 61.2 insufficient, to the extent the deceased party is the source of 61.3 the funds or beneficial owner. A surviving party or P.O.D. 61.4 payee who receives payment from a multiple-party account after 61.5 the death of a deceased party shall be liable to account to the 61.6 deceased party's personal representative or a county agency with 61.7 a claim authorized by section 256B.15 for amounts the decedent 61.8 owned beneficially immediately before death to the extent 61.9 necessary to discharge any such claims and charges remaining 61.10 unpaid after the application of the assets of the decedent's 61.11 estate. No proceeding to assert this liability shall be 61.12 commencedunlessby the personal representative unless the 61.13 personal representative has received a written demand by a 61.14 surviving spouse, a creditor or one acting for a minor dependent 61.15 child of the decedent, and no proceeding shall be commenced 61.16 later than two years following the death of the decedent. Sums 61.17 recovered by the personal representative shall be administered 61.18 as part of the decedent's estate. This section shall not affect 61.19 the right of a financial institution to make payment on 61.20 multiple-party accounts according to the terms thereof, or make 61.21 it liable to the estate of a deceased party unless, before 61.22 payment, the institution has been served with process in a 61.23 proceeding by the personal representative or a county agency 61.24 with a claim authorized by section 256B.15. 61.25 Sec. 36. Minnesota Statutes 1994, section 550.37, 61.26 subdivision 14, is amended to read: 61.27 Subd. 14. [PUBLIC ASSISTANCE.] All relief based on need, 61.28 and the earnings or salary of a person who is a recipient of 61.29 relief based on need, shall be exempt from all claims of 61.30 creditors including any contractual setoff or security interest 61.31 asserted by a financial institution. For the purposes of this 61.32 chapter, relief based on need includes AFDC, general assistance 61.33 medical care, supplemental security income, medical assistance, 61.34 Minnesota supplemental assistance, and general assistance. The 61.35 salary or earnings of any debtor who is or has beenaan 61.36 eligible recipient of relief based on need, or an inmate of a 62.1 correctional institution shall, upon the debtor's return to 62.2 private employment or farming after having beenaan eligible 62.3 recipient of relief based on need, or an inmate of a 62.4 correctional institution, be exempt from attachment, 62.5 garnishment, or levy of execution for a period of six months 62.6 after the debtor's return to employment or farming and after all 62.7 public assistance for which eligibility existed has been 62.8 terminated. The exemption provisions contained in this 62.9 subdivision also apply for 60 days after deposit in any 62.10 financial institution, whether in a single or joint account. In 62.11 tracing the funds, the first-in first-out method of accounting 62.12 shall be used. The burden of establishing that funds are exempt 62.13 rests upon the debtor. Agencies distributing relief and the 62.14 correctional institutions shall, at the request of creditors, 62.15 inform them whether or not any debtor has beenaan eligible 62.16 recipient of relief based on need, or an inmate of a 62.17 correctional institution, within the preceding six months. 62.18 Sec. 37. [MCLEOD COUNTY; COUNTY OFFICES OUTSIDE COUNTY 62.19 SEAT.] 62.20 Notwithstanding Minnesota Statutes, section 382.04 to the 62.21 contrary, the McLeod county auditor, treasurer, social service 62.22 director, and recorder may temporarily office at a location in 62.23 Glencoe township. The authority provided in this section 62.24 expires six years after final enactment. 62.25 Sec. 38. [WAIVER REQUEST; GRANDPARENT EXCLUSION FROM 62.26 LICENSURE.] 62.27 The commissioner of human services shall seek a federal 62.28 waiver to allow the exclusion of grandparents from the foster 62.29 care licensing requirements. If the waiver is granted, 62.30 notwithstanding Minnesota Statutes, section 245A.03, the 62.31 commissioner may exclude grandparents from foster care 62.32 licensure. The commissioner shall recommend to the legislature 62.33 in the legislative session following the approval of the waiver, 62.34 related, necessary changes in the law. 62.35 Sec. 39. [REPEALER.] 62.36 Minnesota Statutes 1994, section 256E.06, subdivisions 12 63.1 and 13, are repealed. 63.2 Sec. 40. [EFFECTIVE DATES.] 63.3 Subdivision 1. Sections 5 (245A.03, subdivision 2a), 6 63.4 (245A.035, subdivisions 1 to 6), 7 to 10 (245A.04, subdivisions 63.5 3, 3b, 7, and 9), 11 to 13 (245A.06, subdivisions 2, 4, and 7), 63.6 14 (245A.07, subdivision 3), and 20 (245A.14, subdivision 6), 63.7 are effective the day following final enactment. 63.8 Subd. 2. Under Minnesota Statutes, section 645.023, 63.9 subdivision 1, clause (a), section 32, takes effect, without 63.10 local approval, the day following final enactment. 63.11 ARTICLE 3 63.12 LIFE SKILLS; SELF-SUFFICIENCY 63.13 Section 1. Minnesota Statutes 1994, section 246.23, 63.14 subdivision 2, is amended to read: 63.15 Subd. 2. [CHEMICAL DEPENDENCY TREATMENT.] The commissioner 63.16 shall maintain a regionally based, state-administered system of 63.17 chemical dependency programs. Counties may refer individuals 63.18 who are eligible for services under chapter 254B to the chemical 63.19 dependency units in the regional treatment centers. A 15 63.20 percent county share of the per diem cost of treatment is 63.21 required for individuals served within the treatment capacity 63.22 funded by direct legislative appropriation. By July 1, 1991, 63.23 the commissioner shall establish criteria for admission to the 63.24 chemical dependency units that will maximize federal and private 63.25 funding sources, fully utilize the regional treatment center 63.26 capacity, and make state-funded treatment capacity available to 63.27 counties on an equitable basis. The admission criteria may be 63.28 adopted without rulemaking. Existing rules governing placements 63.29 under chapters 254A and 254B do not apply to admissions to the 63.30 capacity funded by direct appropriation. Private and 63.31 third-party collections and payments are appropriated to the 63.32 commissioner for the operation of the chemical dependency 63.33 units. In addition to the chemical dependency treatment 63.34 capacity funded by direct legislative appropriation, the 63.35 regional treatment centers may provide treatment to additional 63.36 individuals whose treatment is paid for out of the chemical 64.1 dependency consolidated treatment fund under chapter 254B, in 64.2 which case placement rules adopted under chapter 254B apply,; to 64.3 those individuals who are ineligible but committed for treatment 64.4 under chapter 253B as provided in section 254B.05, subdivision 64.5 4; or to individuals covered through other nonstate payment 64.6 sources. 64.7 Sec. 2. Minnesota Statutes 1994, section 252.275, 64.8 subdivision 3, is amended to read: 64.9 Subd. 3. [REIMBURSEMENT.] Counties shall be reimbursed for 64.10 all expenditures made pursuant to subdivision 1 at a rate of 70 64.11 percent, up to the allocation determined pursuant to 64.12 subdivisions 4, 4a,and 4b. However, the commissioner shall not 64.13 reimburse costs of services for any person if the costs exceed 64.14 the state share of the average medical assistance costs for 64.15 services provided by intermediate care facilities for a person 64.16 with mental retardation or a related condition for the same 64.17 fiscal year, and shall not reimburse costs of a one-time living 64.18 allowance for any person if the costs exceed $1,500 in a state 64.19 fiscal year.For the biennium ending June 30, 1993, the64.20commissioner shall not reimburse costs in excess of the 85th64.21percentile of hourly service costs based upon the cost64.22information supplied to the legislature in the proposed budget64.23for the biennium.The commissioner may make payments to each 64.24 county in quarterly installments. The commissioner may certify 64.25 an advance of up to 25 percent of the allocation. Subsequent 64.26 payments shall be made on a reimbursement basis for reported 64.27 expenditures and may be adjusted for anticipated spending 64.28 patterns. 64.29 Sec. 3. Minnesota Statutes 1994, section 252.275, 64.30 subdivision 4, is amended to read: 64.31 Subd. 4. [FORMULA.]Effective January 1, 1992,The 64.32 commissioner shall allocate funds on a calendar year basis.For64.33calendar year 1992, funds shall be allocated based on each64.34county's portion of the statewide reimbursement received under64.35this section for state fiscal year 1991. For subsequent64.36calendar years, funds shall beBeginning with the calendar year 65.1 in the 1996 grant period, funds shall be allocated first in 65.2 amounts equal to each county's guaranteed floor according to 65.3 subdivision 4b, with any remaining available funds allocated 65.4 based on each county's portion of the statewide expenditures 65.5 eligible for reimbursement under this section during the 12 65.6 months ending on June 30 of the preceding calendar year. 65.7 If the legislature appropriates funds for special purposes, 65.8 the commissioner may allocate the funds based on proposals 65.9 submitted by the counties to the commissioner in a format 65.10 prescribed by the commissioner. Nothing in this section 65.11 prevents a county from using other funds to pay for additional 65.12 costs of semi-independent living services. 65.13 Sec. 4. Minnesota Statutes 1994, section 252.275, 65.14 subdivision 8, is amended to read: 65.15 Subd. 8. [USE OF FEDERAL FUNDS AND TRANSFER OF FUNDS TO 65.16 MEDICAL ASSISTANCE.] (a) The commissioner shall make every 65.17 reasonable effort to maximize the use of federal funds for 65.18 semi-independent living services. 65.19 (b) The commissioner shall reduce the payments to be made 65.20 under this section to each county from January 1, 1994 to June 65.21 30, 1996, by the amount of the state share of medical assistance 65.22 reimbursement for services other than residential services 65.23 provided under the home and community-based waiver program under 65.24 section 256B.092 from January 1, 1994 to June 30, 1996, for 65.25 clients for whom the county is financially responsible and who 65.26 have been transferred by the county from the semi-independent 65.27 living services program to the home and community-based waiver 65.28 program. Unless otherwise specified, all reduced amounts shall 65.29 be transferred to the medical assistance state account. 65.30 (c) For fiscal year 1997, the base appropriation available 65.31 under this section shall be reduced by the amount of the state 65.32 share of medical assistance reimbursement for services other 65.33 than residential services provided under the home and 65.34 community-based waiver program authorized in section 256B.092 65.35 from January 1, 1995 to December 31, 1995, for persons who have 65.36 been transferred from the semi-independent living services 66.1 program to the home and community-based waiver program. The 66.2 base appropriation for the medical assistance state account 66.3 shall be increased by the same amount. 66.4 (d) For purposes of calculating the guaranteed floor under 66.5 subdivision 4b and to establish the calendar year 1996 66.6 allocations, each county's original allocation for calendar year 66.7 1995 shall be reduced by the amount transferred to the state 66.8 medical assistance account under paragraph (b) during the six 66.9 months ending on June 30, 1995. For purposes of calculating the 66.10 guaranteed floor under subdivision 4b and to establish the 66.11 calendar year 1997 allocations, each county's original 66.12 allocation for calendar year 1996 shall be reduced by the amount 66.13 transferred to the state medical assistance account under 66.14 paragraph (b) during the six months ending onJune 30, 199666.15 December 31, 1995. 66.16 Sec. 5. Minnesota Statutes 1994, section 252.292, 66.17 subdivision 4, is amended to read: 66.18 Subd. 4. [FACILITY RATES.] For purposes of this section, 66.19 the commissioner shall establish payment rates under section 66.20 256B.501 and Minnesota Rules, parts 9553.0010 to 9553.0080, 66.21 except that, in order to facilitate an orderly transition of 66.22 residents from community intermediate care facilities for 66.23 persons with mental retardation or related conditions to 66.24 services provided under the home and community-based services 66.25 program, the commissioner may, in a contract with the provider, 66.26 modify the effect of provisions in Minnesota Rules, parts 66.27 9553.0010 to 9553.0080, as stated in clauses (a) to (i): 66.28 (a) extend the interim and settle-up rate provisions to 66.29 include facilities covered by this section; 66.30 (b) extend the length of the interim period but not to 66.31 exceed2412 months. The commissioner may grant a variance to 66.32 exceed the24-month12-month interim period, as necessary, for 66.33 facilities which are licensed and certified to serve more than 66.34 99 persons. In no case shall the commissioner approve an 66.35 interim period which exceeds3624 months; 66.36 (c) waive the investment per bed limitations for the 67.1 interim period and the settle-up rate; 67.2 (d) limit the amount of reimbursable expenses related to 67.3 the acquisition of new capital assets; 67.4 (e) prohibit the acquisition of additional capital debt or 67.5 refinancing of existing capital debt unless prior approval is 67.6 obtained from the commissioner; 67.7 (f) establish an administrative operating cost limitation 67.8 for the interim period and the settle-up rate; 67.9 (g) require the retention of financial and statistical 67.10 records until the commissioner has audited the interim period 67.11 and the settle-up rate; 67.12 (h) require that the interim period be audited by a 67.13 certified or licensed public accounting firm; or 67.14 (i) change any other provision to which all parties to the 67.15 contract agree. 67.16 Sec. 6. Minnesota Statutes 1994, section 252.46, 67.17 subdivision 1, is amended to read: 67.18 Subdivision 1. [RATES.] (a) Payment rates to vendors, 67.19 except regional centers, for county-funded day training and 67.20 habilitation services and transportation provided to persons 67.21 receiving day training and habilitation services established by 67.22 a county board are governed by subdivisions 2 to 19. The 67.23 commissioner shall approve the following three payment rates for 67.24 services provided by a vendor: 67.25 (1) a full-day service rate for persons who receive at 67.26 least six service hours a day, including the time it takes to 67.27 transport the person to and from the service site; 67.28 (2) a partial-day service rate that must not exceed 75 67.29 percent of the full-day service rate for persons who receive 67.30 less than a full day of service; and 67.31 (3) a transportation rate for providing, or arranging and 67.32 paying for, transportation of a person to and from the person's 67.33 residence to the service site. 67.34 (b) The commissioner may also approve an hourly job-coach, 67.35 follow-along rate for services provided by one employee at or en 67.36 route to or from community locations to supervise, support, and 68.1 assist one person receiving the vendor's services to learn 68.2 job-related skills necessary to obtain or retain employment when 68.3 and where no other persons receiving services are present and 68.4 when all the following criteria are met: 68.5 (1) the vendor requests and the county recommends the 68.6 optional rate; 68.7 (2) the service is prior authorized by the county on the 68.8 medicaid management information system for no more than 414 68.9 hours in a 12-month period and the daily per person charge to 68.10 medical assistance does not exceed the vendor's approved full 68.11 day plus transportation rates; 68.12 (3) separate full day, partial day, and transportation 68.13 rates are not billed for the same person on the same day; 68.14 (4) the approved hourly rate does not exceed the sum of the 68.15 vendor's current average hourly direct service wage, including 68.16 fringe benefits and taxes, plus a component equal to the 68.17 vendor's average hourly nondirect service wage expenses; and 68.18 (5) the actual revenue received for provision of hourly 68.19 job-coach, follow-along services is subtracted from the vendor's 68.20 total expenses for the same time period and those adjusted 68.21 expenses are used for determining recommended full day and 68.22 transportation payment rates under subdivision 5 in accordance 68.23 with the limitations in subdivision 3. 68.24 (c) Medical assistance rates for home and community-based 68.25 service provided under section 256B.501, subdivision 4, by 68.26 licensed vendors of day training and habilitation services must 68.27 not be greater than the rates for the same services established 68.28 by counties under sections 252.40 to 252.47. For very dependent 68.29 persons with special needs the commissioner may approve an 68.30 exception to the approved payment rate under section 256B.501, 68.31 subdivision 4 or 8. 68.32 Sec. 7. Minnesota Statutes 1994, section 252.46, 68.33 subdivision 3, is amended to read: 68.34 Subd. 3. [RATE MAXIMUM.] Unless a variance is granted 68.35 under subdivision 6, the maximum payment rates for each vendor 68.36 for a calendar year must be equal to the payment rates approved 69.1 by the commissioner for that vendor in effect December 1 of the 69.2 previous calendar year. The commissioner of finance shall 69.3 include as a budget change request in each biennial detailed 69.4 expenditure budget submitted to the legislature under section 69.5 16A.11 annual inflation adjustments in reimbursement rates for 69.6 each vendor, based upon the projected percentage change in the 69.7 urban consumer price index, all items, published by the United 69.8 States Department of Labor, for the upcoming calendar year over 69.9 the current calendar year.The commissioner shall not provide69.10an annual inflation adjustment for the biennium ending June 30,69.111993.69.12 Sec. 8. Minnesota Statutes 1994, section 252.46, 69.13 subdivision 6, is amended to read: 69.14 Subd. 6. [VARIANCES.] (a) A variance from the minimum or 69.15 maximum payment rates in subdivisions 2 and 3 may be granted by 69.16 the commissioner when the vendor requests and the county board 69.17 submits to the commissioner a written variance request on forms 69.18 supplied by the commissioner with the recommended payment rates. 69.19 A variance to the rate maximum may be utilized for costs 69.20 associated with compliance with state administrative rules, 69.21 compliance with court orders, capital costs required for 69.22 continued licensure, increased insurance costs, start-up and 69.23 conversion costs for supported employment, direct service staff 69.24 salaries and benefits, transportation, and other program related 69.25 costs when any of the criteria in clauses (1) to(3)(4) is also 69.26 met: 69.27 (1) change is necessary to comply with licensing citations; 69.28 (2) a licensed vendor currently serving fewer than 70 69.29 persons with payment rates of 80 percent or less of the 69.30 statewide average rates and with clients meeting the behavioral 69.31 or medical criteria under clause (3) approved by the 69.32 commissioner as a significant program change under section 69.33 252.28; 69.34 (3) a significant change is approved by the commissioner 69.35 under section 252.28 that is necessary to provide authorized 69.36 services to a new client or clients with very severe 70.1 self-injurious or assaultive behavior, or medical conditions 70.2 requiring delivery of physician-prescribed medical interventions 70.3 requiring one-to-one staffing for at least 15 minutes each time 70.4 they are performed, or to a new client or clients directly 70.5 discharged to the vendor's program from a regional treatment 70.6 center; or 70.7(3) a significant increase in the average level of(4) 70.8 there is a need to maintain required staffingis neededlevels 70.9 in order to provide authorized services approved by the 70.10 commissioner under section 252.28, that is necessitated by 70.11 a significant and permanent decrease in licensed capacity 70.12 orloss ofclientelewhen counties choose alternative services70.13under Laws 1992, chapter 513, article 9, section 41. 70.14 The county shall review the adequacy of services provided 70.15 by vendors whose payment rates are 80 percent or more of the 70.16 statewide average rates and 50 percent or more of the vendor's 70.17 clients meet the behavioral or medical criteria in clause (3). 70.18 A variance under this paragraph may be approved only if the 70.19 costs to the medical assistance program do not exceed the 70.20 medical assistance costs for all clients served by the 70.21 alternatives and all clients remaining in the existing services. 70.22 (b) A variance to the rate minimum may be granted when (1) 70.23 the county board contracts for increased services from a vendor 70.24 and for some or all individuals receiving services from the 70.25 vendor lower per unit fixed costs result or (2) when the actual 70.26 costs of delivering authorized service over a 12-month contract 70.27 period have decreased. 70.28 (c) The written variance request under this subdivision 70.29 must include documentation that all the following criteria have 70.30 been met: 70.31 (1) The commissioner and the county board have both 70.32 conducted a review and have identified a need for a change in 70.33 the payment rates and recommended an effective date for the 70.34 change in the rate. 70.35 (2) The vendor documents efforts to reallocate current 70.36 staff and any additional staffing needs cannot be met by using 71.1 temporary special needs rate exceptions under Minnesota Rules, 71.2 parts 9510.1020 to 9510.1140. 71.3 (3) The vendor documents that financial resources have been 71.4 reallocated before applying for a variance. No variance may be 71.5 granted for equipment, supplies, or other capital expenditures 71.6 when depreciation expense for repair and replacement of such 71.7 items is part of the current rate. 71.8 (4) For variances related to loss of clientele, the vendor 71.9 documents the other program and administrative expenses, if any, 71.10 that have been reduced. 71.11 (5) The county board submits verification of the conditions 71.12 for which the variance is requested, a description of the nature 71.13 and cost of the proposed changes, and how the county will 71.14 monitor the use of money by the vendor to make necessary changes 71.15 in services. 71.16 (6) The county board's recommended payment rates do not 71.17 exceed 95 percent of the greater of 125 percent of the current 71.18 statewide median or 125 percent of the regional average payment 71.19 rates, whichever is higher, for each of the regional commission 71.20 districts under sections 462.381 to 462.396 in which the vendor 71.21 is located except for the following: when a variance is 71.22 recommended to allow authorized service delivery to new clients 71.23 with severe self-injurious or assaultive behaviors or with 71.24 medical conditions requiring delivery of physician prescribed 71.25 medical interventions, or to persons being directly discharged 71.26 from a regional treatment center to the vendor's program, those 71.27 persons must be assigned a payment rate of 200 percent of the 71.28 current statewide average rates. All other clients receiving 71.29 services from the vendor must be assigned a payment rate equal 71.30 to the vendor's current rate unless the vendor's current rate 71.31 exceeds 95 percent of 125 percent of the statewide median or 125 71.32 percent of the regional average payment rates, whichever is 71.33 higher. When the vendor's rates exceed 95 percent of 125 71.34 percent of the statewide median or 125 percent of the regional 71.35 average rates, the maximum rates assigned to all other clients 71.36 must be equal to the greater of 95 percent of 125 percent of the 72.1 statewide median or 125 percent of the regional average rates. 72.2 The maximum payment rate that may be recommended for the vendor 72.3 under these conditions is determined by multiplying the number 72.4 of clients at each limit by the rate corresponding to that limit 72.5 and then dividing the sum by the total number of clients. 72.6(7) The vendor has not received a variance under this72.7subdivision in the past 12 months.72.8 (d) The commissioner shall have 60 calendar days from the 72.9 date of the receipt of the complete request to accept or reject 72.10 it, or the request shall be deemed to have been granted. If the 72.11 commissioner rejects the request, the commissioner shall state 72.12 in writing the specific objections to the request and the 72.13 reasons for its rejection. 72.14 Sec. 9. Minnesota Statutes 1994, section 252.46, 72.15 subdivision 17, is amended to read: 72.16 Subd. 17. [HOURLY RATE STRUCTURE.] Counties participating 72.17 as host counties under the pilot study of hourly rates 72.18 established under Laws 1988, chapter 689, article 2, section 72.19 117, may recommend continuation of the hourly rates for 72.20 participating vendors. The recommendation must be made annually 72.21 under subdivision 5 and according to the methods and standards 72.22 provided by the commissioner. The commissioner shall approve 72.23 the hourly rates when service authorization, billing, and 72.24 payment for services is possible through the Medicaid management 72.25 information system and the other criteria in this subdivision 72.26 are met. Counties and vendors operating under the pilot study 72.27 of hourly rates established under Laws 1988, chapter 689, 72.28 article 2, section 117, shall work with the commissioner to 72.29 translate the hourly rates and actual expenditures into rates 72.30 meeting the criteria in subdivisions 1 to 16 unless hourly rates 72.31 are approved under this subdivision. If the rates meeting the 72.32 criteria in subdivisions 1 to 16 are lower than the county's or 72.33 vendor's current rate, the county or vendor must continue to 72.34 receive the current rate. 72.35 Sec. 10. Minnesota Statutes 1994, section 252.46, is 72.36 amended by adding a subdivision to read: 73.1 Subd. 19. [VENDOR APPEALS.] With the concurrence of the 73.2 county board, a vendor may appeal the commissioner's rejection 73.3 of a variance request which has been submitted by the county 73.4 under subdivision 6 and may appeal the commissioner's denial 73.5 under subdivision 9 of a rate which has been recommended by the 73.6 county. To appeal, the vendor and county board must file a 73.7 written notice of appeal with the commissioner. The notice of 73.8 appeal must be filed or received by the commissioner within 45 73.9 days of the postmark date on the commissioner's notification to 73.10 the vendor and county agency that a variance request or county 73.11 recommended rate has been denied. The notice of appeal must 73.12 specify the reasons for the appeal, the dollar amount in 73.13 dispute, and the basis in statute or rule for challenging the 73.14 commissioner's decision. 73.15 Within 45 days of receipt of the notice of appeal, the 73.16 commissioner must convene a reconciliation conference to attempt 73.17 to resolve the rate dispute. If the dispute is not resolved to 73.18 the satisfaction of the parties, the parties may initiate a 73.19 contested case proceeding under sections 14.57 to 14.69. In a 73.20 contested case hearing held under this section, the appealing 73.21 party must demonstrate by a preponderance of the evidence that 73.22 the commissioner incorrectly applied the governing law or 73.23 regulations, or that the commissioner improperly exercised the 73.24 commissioner's discretion, in refusing to grant a variance or in 73.25 refusing to adopt a county recommended rate. 73.26 Until the appeal is fully resolved, payments must continue 73.27 at the existing rate pending the appeal. Retroactive payments 73.28 consistent with the final decision shall be made after the 73.29 appeal is fully resolved. 73.30 Sec. 11. Minnesota Statutes 1994, section 252.46, is 73.31 amended by adding a subdivision to read: 73.32 Subd. 20. [STUDY OF DAY TRAINING AND HABILITATION 73.33 VENDORS.] The commissioner shall study the feasibility of 73.34 grouping vendors of similar size, location, direct service 73.35 staffing needs or performance outcomes to establish payment rate 73.36 limits that define cost-effective service. Based on the 74.1 conclusions of the feasibility study the department shall 74.2 consider developing a method to redistribute dollars from less 74.3 cost effective to more cost-effective services based on vendor 74.4 achievement of performance outcomes. The department shall 74.5 report to the legislature by January 15, 1996, with results of 74.6 the study and recommendations for further action. The 74.7 department shall consult with an advisory committee representing 74.8 counties, service consumers, vendors, and the legislature. 74.9 Sec. 12. Minnesota Statutes 1994, section 254A.17, 74.10 subdivision 3, is amended to read: 74.11 Subd. 3. [STATEWIDE DETOXIFICATION TRANSPORTATION 74.12 PROGRAM.] The commissioner shall provide grants to counties, 74.13 Indian reservations, other nonprofit agencies, or local 74.14 detoxification programs for provision of transportation of 74.15 intoxicated individuals to detoxification programs, to open 74.16 shelters, and to secure shelters as defined in section 254A.085 74.17 and shelters serving intoxicated persons. In state fiscal years 74.18 1994and, 1995, and 1996, funds shall be allocated to counties 74.19 in proportion to each county's allocation in fiscal year 1993. 74.20 In subsequent fiscal years, funds shall be allocated among 74.21 counties annually in proportion to each county's average number 74.22 of detoxification admissions for the prior two years, except 74.23 that no county shall receive less than $400. Unless a county 74.24 has approved a grant of funds under this section, the 74.25 commissioner shall make quarterly payments of detoxification 74.26 funds to a county only after receiving an invoice describing the 74.27 number of persons transported and the cost of transportation 74.28 services for the previous quarter. A county must make a good 74.29 faith effort to provide the transportation service through the 74.30 most cost-effective community-based agencies or organizations 74.31 eligible to provide the service. The program administrator and 74.32 all staff of the program must report to the office of the 74.33 ombudsman for mental health and mental retardation within 24 74.34 hours of its occurrence, any serious injury, as defined in 74.35 section 245.91, subdivision 6, or the death of a person admitted 74.36 to the shelter. The ombudsman shall acknowledge in writing the 75.1 receipt of all reports made to the ombudsman's office under this 75.2 section. Acknowledgment must be mailed to the facility and to 75.3 the county social service agency within five working days of the 75.4 day the report was made. In addition, the program administrator 75.5 and staff of the program must comply with all of the 75.6 requirements of section 626.557, the vulnerable adults act. 75.7 Sec. 13. Minnesota Statutes 1994, section 254B.02, 75.8 subdivision 1, is amended to read: 75.9 Subdivision 1. [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 75.10 The chemical dependency funds appropriated for allocation shall 75.11 be placed in a special revenue account. For the fiscal year 75.12 beginning July 1, 1987, funds shall be transferred to operate 75.13 the vendor payment, invoice processing, and collections system 75.14 for one year. The commissioner shall annually transfer funds 75.15 from the chemical dependency fund to pay for operation of the 75.16 drug and alcohol abuse normative evaluation system and to pay 75.17 for all costs incurred by adding two positions for licensing of 75.18 chemical dependency treatment and rehabilitation programs 75.19 located in hospitals for which funds are not otherwise 75.20 appropriated. The commissioner shall annually divide the money 75.21 available in the chemical dependency fund that is not held in 75.22 reserve by counties from a previous allocation. Twelve percent 75.23 of the remaining money must be reserved for treatment of 75.24 American Indians by eligible vendors under section 254B.05. The 75.25 remainder of the money must be allocated among the counties 75.26 according to the following formula, using state demographer data 75.27 and other data sources determined by the commissioner: 75.28(a) The county non-Indian and over age 14 per capita-months75.29of eligibility for aid to families with dependent children,75.30general assistance, and medical assistance is divided by the75.31total state non-Indian and over age 14 per capita-months of75.32eligibility to determine the caseload factor for each county.75.33(b) The average median married couple income for the75.34previous three years for the state is divided by the average75.35median married couple income for the previous three years for75.36each county to determine the income factor.76.1(c) The non-Indian and over age 14 population of the county76.2is multiplied by the sum of the income factor and the caseload76.3factor to determine the adjusted population.76.4 (a) For purposes of this formula, American Indians and 76.5 children under age 14 are subtracted from the population of each 76.6 county to determine the restricted population. 76.7 (b) The amount of chemical dependency fund expenditures for 76.8 entitled persons for services not covered by prepaid plans 76.9 governed by section 256B.69 in the previous year is divided by 76.10 the amount of chemical dependency fund expenditures for entitled 76.11 persons for all services to determine the proportion of exempt 76.12 service expenditures for each county. 76.13 (c) The prepaid plan months of eligibility is multiplied by 76.14 the proportion of exempt service expenditures to determine the 76.15 adjusted prepaid plan months of eligibility for each county. 76.16 (d) The adjusted prepaid plan months of eligibility is 76.17 added to the number of restricted population fee for service 76.18 months of eligibility for aid to families with dependent 76.19 children, general assistance, and medical assistance and divided 76.20 by the county restricted population to determine county per 76.21 capita months of covered service eligibility. 76.22 (e) The number of adjusted prepaid plan months of 76.23 eligibility for the state is added to the number of fee for 76.24 service months of eligibility for aid to families with dependent 76.25 children, general assistance, and medical assistance for the 76.26 state restricted population and divided by the state restricted 76.27 population to determine state per capita months of covered 76.28 service eligibility. 76.29 (f) The county per capita months of covered service 76.30 eligibility is divided by the state per capita months of covered 76.31 service eligibility to determine the county welfare caseload 76.32 factor. 76.33 (g) The median married couple income for the most recent 76.34 three-year period available for the state is divided by the 76.35 median married couple income for the same period for each county 76.36 to determine the income factor for each county. 77.1 (h) The county restricted population is multiplied by the 77.2 sum of the county welfare caseload factor and the county income 77.3 factor to determine the adjusted population. 77.4(d)(i) $15,000 shall be allocated to each county. 77.5(e)(j) The remaining funds shall be allocated proportional 77.6 to the county adjusted population. 77.7 Sec. 14. Minnesota Statutes 1994, section 254B.05, 77.8 subdivision 1, is amended to read: 77.9 Subdivision 1. [LICENSURE REQUIRED.] Programs licensed by 77.10 the commissioner are eligible vendors. Hospitals may apply for 77.11 and receive licenses to be eligible vendors, notwithstanding the 77.12 provisions of section 245A.03. American Indian programs located 77.13 on federally recognized tribal lands that provide chemical 77.14 dependency primary treatment, extended care, transitional 77.15 residence, or outpatient treatment services, and are licensed by 77.16 tribal government are eligible vendors. Detoxification programs 77.17 are not eligible vendors. Programs that are not licensed as a 77.18 chemical dependency residential or nonresidential treatment 77.19 program by the commissioner or by tribal government are not 77.20 eligible vendors. To be eligible for payment under the 77.21 Consolidated Chemical Dependency Treatment Fund, a vendor must 77.22 participate in the Drug and Alcohol Abuse Normative Evaluation 77.23 System and the treatment accountability plan. 77.24 Sec. 15. [256.476] [CONSUMER SUPPORT PROGRAM.] 77.25 Subdivision 1. [PURPOSE AND GOALS.] The commissioner of 77.26 human services shall establish a consumer support grant program 77.27 to assist individuals with functional limitations and their 77.28 families in purchasing and securing supports which the 77.29 individuals need to live as independently and productively in 77.30 the community as possible. The commissioner and local agencies 77.31 shall jointly develop an implementation plan which must include 77.32 a way to resolve the issues related to county liability. The 77.33 program shall: 77.34 (1) make support grants available to individuals or 77.35 families as an effective alternative to existing programs and 77.36 services, such as the developmental disability family support 78.1 program, the alternative care program, personal care attendant 78.2 services, home health aide services, and nursing facility 78.3 services; 78.4 (2) provide consumers more control, flexibility, and 78.5 responsibility over the needed supports; 78.6 (3) promote local program management and decision-making; 78.7 and 78.8 (4) encourage the use of informal and typical community 78.9 supports. 78.10 Subd. 2. [DEFINITIONS.] For purposes of this section, the 78.11 following terms have the meanings given them: 78.12 (a) "County board" means the county board of commissioners 78.13 for the county of financial responsibility as defined in section 78.14 256G.02, subdivision 4, or its designated representative. When 78.15 a human services board has been established under sections 78.16 402.01 to 402.10, it shall be considered the county board for 78.17 the purposes of this section. 78.18 (b) "Family" means the person's birth parents, adoptive 78.19 parents or stepparents, siblings or stepsiblings, children or 78.20 stepchildren, grandparents, grandchildren, niece, nephew, aunt, 78.21 uncle, or spouse. For the purposes of this section, a family 78.22 member is at least 18 years of age. 78.23 (c) "Functional limitations" means the long-term inability 78.24 to perform an activity or task in one or more areas of major 78.25 life activity, including self-care, understanding and use of 78.26 language, learning, mobility, self-direction, and capacity for 78.27 independent living. For the purpose of this section, the 78.28 inability to perform an activity or task results from a mental, 78.29 emotional, psychological, sensory, or physical disability, 78.30 condition, or illness. 78.31 (d) "Informed choice" means a voluntary decision made by 78.32 the person or the person's legal representative, after becoming 78.33 familiarized with the alternatives to: 78.34 (1) select a preferred alternative from a number of 78.35 feasible alternatives; 78.36 (2) select an alternative which may be developed in the 79.1 future; and 79.2 (3) refuse any or all alternatives. 79.3 (e) "Local agency" means the local agency authorized by the 79.4 county board to carry out the provisions of this section. 79.5 (f) "Person" or "persons" means a person or persons meeting 79.6 the eligibility criteria in subdivision 3. 79.7 (g) "Responsible individual" means an individual designated 79.8 by the person or their legal representative to act on their 79.9 behalf. This individual may be a family member, guardian, 79.10 representative payee, or other individual designated by the 79.11 person or their legal representative, if any, to assist in 79.12 purchasing and arranging for supports. For the purposes of this 79.13 section, a responsible individual is at least 18 years of age. 79.14 (h) "Screening" means the screening of a person's service 79.15 needs under sections 256B.0911 and 256B.092. 79.16 (i) "Supports" means services, care, aids, home 79.17 modifications, or assistance purchased by the person or the 79.18 person's family. Examples of supports include respite care, 79.19 assistance with daily living, and adaptive aids. For the 79.20 purpose of this section, notwithstanding the provisions of 79.21 section 144A.43, supports purchased under the consumer support 79.22 program are not considered home care services. 79.23 Subd. 3. [ELIGIBILITY TO APPLY FOR GRANTS.] (a) A person 79.24 is eligible to apply for a consumer support grant if the person 79.25 meets all of the following criteria: 79.26 (1) the person is eligible for medical assistance as 79.27 determined under sections 256B.055 and 256B.056 or the person is 79.28 eligible for alternative care services as determined under 79.29 section 256B.0913; 79.30 (2) the person is able to direct and purchase their own 79.31 care and supports, or the person has a family member, legal 79.32 representative, or other responsible individual who can purchase 79.33 and arrange supports on the person's behalf; 79.34 (3) the person has functional limitations, requires ongoing 79.35 supports to live in the community, and is at risk of or would 79.36 continue institutionalization without such supports; and 80.1 (4) the person will live in a home. For the purpose of 80.2 this section, "home" means the person's own home or home of a 80.3 person's family member. These homes are natural home settings 80.4 and are not licensed by the department of health or human 80.5 services. 80.6 (b) Persons may not concurrently receive a consumer support 80.7 grant if they are: 80.8 (1) receiving home and community-based services under 80.9 United States Code, title 42, section 1396h(c); personal care 80.10 attendant and home health aide services under section 256B.0625; 80.11 a developmental disability family support grant; or alternative 80.12 care services under section 256B.0913; or 80.13 (2) residing in an institutional or congregate care setting. 80.14 (c) A person or person's family receiving a consumer 80.15 support grant shall not be charged a fee or premium by a local 80.16 agency for participating in the program. A person or person's 80.17 family is not eligible for a consumer support grant if their 80.18 income is at a level where they are required to pay a parental 80.19 fee under sections 252.27, 256B.055, subdivision 12, and 256B.14 80.20 and rules adopted under those sections for medical assistance 80.21 services to a disabled child living with at least one parent. 80.22 Subd. 4. [SUPPORT GRANTS; CRITERIA AND LIMITATIONS.] (a) A 80.23 county board may choose to participate in the consumer support 80.24 grant program. If a county board chooses to participate in the 80.25 program, the local agency shall establish written procedures and 80.26 criteria to determine the amount and use of support grants. 80.27 These procedures must include, at least, the availability of 80.28 respite care, assistance with daily living, and adaptive aids. 80.29 The local agency may establish monthly or annual maximum amounts 80.30 for grants and procedures where exceptional resources may be 80.31 required to meet the health and safety needs of the person on a 80.32 time-limited basis. 80.33 (b) Support grants to a person or a person's family may be 80.34 provided through a monthly subsidy or lump sum payment basis and 80.35 be in the form of cash, voucher, or direct county payment to 80.36 vendor. Support grant amounts must be determined by the local 81.1 agency. Each service and item purchased with a support grant 81.2 must meet all of the following criteria: 81.3 (1) it must be over and above the normal cost of caring for 81.4 the person if the person did not have functional limitations; 81.5 (2) it must be directly attributable to the person's 81.6 functional limitations; 81.7 (3) it must enable a person or the person's family to delay 81.8 or prevent out-of-home placement of the person; and 81.9 (4) it must be consistent with the needs identified in the 81.10 service plan, when applicable. 81.11 (c) Items and services purchased with support grants must 81.12 be those for which there are no other public or private funds 81.13 available to the person or the person's family. Fees assessed 81.14 to the person or the person's family for health and human 81.15 services are not reimbursable through the grant. 81.16 (d) In approving or denying applications, the local agency 81.17 shall consider the following factors: 81.18 (1) the extent and areas of the person's functional 81.19 limitations; 81.20 (2) the degree of need in the home environment for 81.21 additional support; and 81.22 (3) the potential effectiveness of the grant to maintain 81.23 and support the person in the family environment or the person's 81.24 own home. 81.25 (e) At the time of application to the program or screening 81.26 for other services, the person or the person's family shall be 81.27 provided sufficient information to ensure an informed choice of 81.28 alternatives by the person, the person's legal representative, 81.29 if any, or the person's family. The application shall be made 81.30 to the local agency and shall specify the needs of the person 81.31 and family, the form and amount of grant requested, the items 81.32 and services to be reimbursed, and evidence of eligibility for 81.33 medical assistance or alternative care program. 81.34 (f) Upon approval of an application by the local agency and 81.35 agreement on a support plan for the person or person's family, 81.36 the local agency shall make grants to the person or the person's 82.1 family. The grant shall be in an amount for the direct costs of 82.2 the services or supports outlined in the service agreement. 82.3 (g) Reimbursable costs shall not include costs for 82.4 resources already available, such as special education classes, 82.5 day training and habilitation, case management, other services 82.6 to which the person is entitled, medical costs covered by 82.7 insurance or other health programs, or other resources usually 82.8 available at no cost to the person or the person's family. 82.9 Subd. 5. [REIMBURSEMENT, ALLOCATIONS, AND REPORTING.] (a) 82.10 For the purpose of transferring persons to the consumer support 82.11 grant program from specific programs or services, such as the 82.12 developmental disability family support program and alternative 82.13 care program, personal care attendant, home health aide, or 82.14 nursing facility services, the amount of funds transferred by 82.15 the commissioner between the developmental disability family 82.16 support program account, the alternative care account, the 82.17 medical assistance account, or the consumer support grant 82.18 account shall be based on each county's participation in 82.19 transferring persons to the consumer support grant program from 82.20 those programs and services. 82.21 (b) At the beginning of each fiscal year, county 82.22 allocations for consumer support grants shall be based on: 82.23 (1) the number of persons to whom the county board expects 82.24 to provide consumer supports grants; 82.25 (2) their eligibility for current program and services; 82.26 (3) the amount of nonfederal dollars expended on those 82.27 individuals for those programs and services; and 82.28 (4) projected dates when persons will start receiving 82.29 grants. County allocations shall be adjusted periodically by 82.30 the commissioner based on the actual transfer of persons or 82.31 service openings, and the nonfederal dollars associated with 82.32 those persons or service openings, to the consumer support grant 82.33 program. 82.34 (c) The commissioner shall use up to five percent of each 82.35 county's allocation, as adjusted, for payments to that county 82.36 for administrative expenses, to be paid as a proportionate 83.1 addition to reported direct service expenditures. 83.2 (d) The commissioner may recover, suspend, or withhold 83.3 payments if the county board, local agency, or grantee does not 83.4 comply with the requirements of this section. 83.5 Subd. 6. [RIGHT TO APPEAL.] Notice, appeal, and hearing 83.6 procedures shall be conducted in accordance with section 83.7 256.045. The denial, suspension, or termination of services 83.8 under this program may be appealed by a recipient or applicant 83.9 under section 256.045, subdivision 3. It is an absolute defense 83.10 to an appeal under this section, if the county board proves that 83.11 it followed the established written procedures and criteria and 83.12 determined that the grant could not be provided within the 83.13 county board's allocation of money for consumer support grants. 83.14 Subd. 7. [FEDERAL FUNDS.] The commissioner and the 83.15 counties shall make reasonable efforts to maximize the use of 83.16 federal funds including funds available through grants and 83.17 federal waivers. If federal funds are made available to the 83.18 consumer support grant program, the money shall be allocated to 83.19 the responsible county agency's consumer support grant fund. 83.20 Subd. 8. [COMMISSIONER RESPONSIBILITIES.] The commissioner 83.21 shall: 83.22 (1) transfer and allocate funds pursuant to this section; 83.23 (2) determine allocations based on projected and actual 83.24 local agency use; 83.25 (3) monitor and oversee overall program spending; 83.26 (4) evaluate the effectiveness of the program; 83.27 (5) provide training and technical assistance for local 83.28 agencies and consumers to help identify potential applicants to 83.29 the program; and 83.30 (6) develop guidelines for local agency program 83.31 administration and consumer information. 83.32 Subd. 9. [COUNTY BOARD RESPONSIBILITIES.] County boards 83.33 receiving funds under this section shall: 83.34 (1) determine the needs of persons and families for 83.35 services and supports; 83.36 (2) determine the eligibility for persons proposed for 84.1 program participation; 84.2 (3) approve items and services to be reimbursed and inform 84.3 families of their determination; 84.4 (4) issue support grants directly to or on behalf of 84.5 persons; 84.6 (5) submit quarterly financial reports and an annual 84.7 program report to the commissioner; 84.8 (6) coordinate services and supports with other programs 84.9 offered or made available to persons or their families; and 84.10 (7) provide assistance to persons or their families in 84.11 securing or maintaining supports, as needed. 84.12 Subd. 10. [CONSUMER RESPONSIBILITIES.] Persons receiving 84.13 grants under this section shall: 84.14 (1) spend the grant money in a manner consistent with their 84.15 agreement with the local agency; 84.16 (2) notify the local agency of any necessary changes in the 84.17 grant or the items on which it is spent; 84.18 (3) notify the local agency of any decision made by the 84.19 person, the person's legal representative, or the person's 84.20 family that would change their eligibility for consumer support 84.21 grants; 84.22 (4) arrange and pay for supports; and 84.23 (5) inform the local agency of areas where they have 84.24 experienced difficulty securing or maintaining supports. 84.25 Sec. 16. [256.973] [HOUSING FOR PERSONS WHO ARE ELDERLY, 84.26 PERSONS WITH PHYSICAL OR DEVELOPMENTAL DISABILITIES, AND 84.27 SINGLE-PARENT FAMILIES.] 84.28 Subdivision 1. [HOME SHARING.] The home-sharing grant 84.29 program authorized by section 462A.05, subdivision 24, is 84.30 transferred from the Minnesota housing finance agency to the 84.31 department of human services. The housing finance agency shall 84.32 administer the current grants that terminate on August 30, 84.33 1995. The department of human services shall administer grants 84.34 funded after August 30, 1995. The department of human services 84.35 may engage in housing programs, as defined by the agency, to 84.36 provide grants to housing sponsors who will provide a 85.1 home-sharing program for low- and moderate-income elderly, 85.2 persons with physical or developmental disabilities, or 85.3 single-parent families in urban and rural areas. 85.4 Subd. 2. [MATCHING OWNERS AND TENANTS.] Housing sponsors 85.5 of home sharing programs, as defined by the agency, shall match 85.6 existing homeowners with prospective tenants who will contribute 85.7 either rent or services to the homeowner, where either the 85.8 homeowner or the prospective tenant is elderly, a person with 85.9 physical or developmental disabilities, or the head of a 85.10 single-parent family. Home-sharing projects will coordinate 85.11 efforts with appropriate public and private agencies and 85.12 organizations in their area. 85.13 Subd. 3. [INFORMATION FOR PARTICIPANTS.] Housing sponsors 85.14 who receive funding through these programs shall provide 85.15 homeowners and tenants participating in a home-sharing program 85.16 with information regarding their rights and obligations as they 85.17 relate to federal and state tax law including, but not limited 85.18 to, taxable rental income, homestead credit under chapter 273, 85.19 and the property tax refund act under chapter 290A. 85.20 Subd. 4. [TECHNICAL ASSISTANCE.] The department of human 85.21 services may provide technical assistance to sponsors of 85.22 home-sharing programs or may contract or delegate the provision 85.23 of technical assistance. 85.24 Subd. 5. [USING OUTSIDE AGENCIES.] The department of human 85.25 services may delegate, use, or employ any federal, state, 85.26 regional, or local public or private agency or organization, 85.27 including organizations of physically handicapped persons, upon 85.28 terms it deems necessary or desirable, to assist in the exercise 85.29 of any of the powers granted in this section. 85.30 Sec. 17. Minnesota Statutes 1994, section 256.975, is 85.31 amended by adding a subdivision to read: 85.32 Subd. 6. [INDIAN ELDERS POSITION.] The Minnesota board on 85.33 aging shall create an Indian elders coordinator position, and 85.34 shall hire staff as appropriations permit for the purposes of 85.35 coordinating efforts with the National Indian Council on Aging 85.36 and developing a comprehensive statewide service system for 86.1 Indian elders. An Indian elder is defined for purposes of this 86.2 subdivision as an Indian enrolled in a band or tribe who is 55 86.3 years or older. The statewide service system must include the 86.4 following components: 86.5 (1) an assessment of the program eligibility, examining the 86.6 need to change the age-based eligibility criteria to need-based 86.7 eligibility criteria; 86.8 (2) a planning system that would grant or make 86.9 recommendations for granting federal and state funding for 86.10 services; 86.11 (3) a plan for service focal points, senior centers, or 86.12 community centers for socialization and service accessibility 86.13 for Indian elders; 86.14 (4) a plan to develop and implement education and public 86.15 awareness campaigns including awareness programs, sensitivity 86.16 cultural training, and public education on Indian elder needs; 86.17 (5) a plan for information and referral services including 86.18 trained advocates and an Indian elder newsletter; 86.19 (6) a plan for a coordinated health care system including 86.20 health promotion/prevention, in-home service, long-term care 86.21 service, and health care services; 86.22 (7) a plan for ongoing research involving Indian elders 86.23 including needs assessment and needs analysis; 86.24 (8) information and referral services for legal advice or 86.25 legal counsel; and 86.26 (9) a plan to coordinate services with existing 86.27 organizations including the council of Indian affairs, the 86.28 Minnesota Indian council of elders, the Minnesota board on 86.29 aging, and tribal governments. 86.30 Sec. 18. Minnesota Statutes 1994, section 256B.0628, is 86.31 amended by adding a subdivision to read: 86.32 Subd. 3. [ASSESSMENT AND PRIOR AUTHORIZATION PROCESS FOR 86.33 RECIPIENTS OF BOTH HOME CARE AND HOME AND COMMUNITY-BASED 86.34 WAIVERED SERVICES FOR PERSONS WITH MENTAL RETARDATION OR RELATED 86.35 CONDITIONS.] Effective January 1, 1996, for purposes of 86.36 providing informed choice, coordinating of local planning 87.1 decisions, and streamlining administrative requirements, the 87.2 assessment and prior authorization process for persons receiving 87.3 both home care and home and community-based waivered services 87.4 for persons with mental retardation or related conditions shall 87.5 meet the requirements of this section and section 256B.0627 with 87.6 the following exceptions: 87.7 (a) Upon request for home care services and subsequent 87.8 assessment by the public health nurse under section 256B.0627, 87.9 the public health nurse shall participate in the screening 87.10 process, as appropriate, and, if home care services are 87.11 determined to be necessary, participate in the development of a 87.12 service plan coordinating the need for home care and home and 87.13 community-based waivered services with the assigned county case 87.14 manager, the recipient of services, and the recipient's legal 87.15 representative, if any. 87.16 (b) The public health nurse shall give prior authorization 87.17 for home care services to the extent that home care services are: 87.18 (1) medically necessary; 87.19 (2) chosen by the recipient and their legal representative, 87.20 if any, from the array of home care and home and community-based 87.21 waivered services available; 87.22 (3) coordinated with other services to be received by the 87.23 recipient as described in the service plan; and 87.24 (4) provided within the county's reimbursement limits for 87.25 home care and home and community-based waivered services for 87.26 persons with mental retardation or related conditions. 87.27 (c) If the public health agency is or may be the provider 87.28 of home care services to the recipient, the public health agency 87.29 shall provide the commissioner of human services with a written 87.30 plan that specifies how the assessment and prior authorization 87.31 process will be held separate and distinct from the provision of 87.32 services. 87.33 Sec. 19. Minnesota Statutes 1994, section 256B.092, is 87.34 amended by adding a subdivision to read: 87.35 Subd. 4c. [LIVING ARRANGEMENTS BASED ON A 24-HOUR PLAN OF 87.36 CARE.] (a) Notwithstanding the requirements for licensure under 88.1 Minnesota Rules, part 9525.1860, subpart 6, item D, and upon 88.2 federal approval of an amendment to the home and community-based 88.3 services waiver for persons with mental retardation or related 88.4 conditions, a person receiving home and community-based services 88.5 may choose to live in their own home without requiring that the 88.6 living arrangement be licensed under Minnesota Rules, parts 88.7 9555.5050 to 9555.6265, provided the following conditions are 88.8 met: 88.9 (1) the person receiving home and community-based services 88.10 has chosen to live in their own home; 88.11 (2) home and community-based services are provided by a 88.12 qualified vendor who meets the provider standards as approved in 88.13 the Minnesota home and community-based services waiver plan for 88.14 persons with mental retardation or related conditions; 88.15 (3) the person, or their legal representative, individually 88.16 or with others has purchased or rents the home and the person's 88.17 service provider has no financial interest in the home; and 88.18 (4) the service planning team, as defined in Minnesota 88.19 Rules, part 9525.0004, subpart 24, has determined that the 88.20 planned services, the 24-hour plan of care, and the housing 88.21 arrangement are appropriate to address the health, safety, and 88.22 welfare of the person. 88.23 (b) The county agency may require safety inspections of the 88.24 selected housing as part of their determination of the adequacy 88.25 of the living arrangement. 88.26 Sec. 20. [AUTHORIZATION FOR DOWNSIZING.] 88.27 Subdivision 1. [DUTIES OF THE COMMISSIONER.] (a) The 88.28 commissioner of human services in consultation with Brown county 88.29 and advocates of persons with mental retardation, shall carry 88.30 out a voluntary downsizing of MBW on Center, an intermediate 88.31 care facility for persons with mental retardation, to assure 88.32 that appropriate services are provided in the least restrictive 88.33 setting as provided under Minnesota Statutes, section 252.291, 88.34 subdivision 3. 88.35 (b) The commissioner shall present a proposal to address 88.36 issues relating to: 89.1 (1) redistribution of costs; 89.2 (2) specific plans for the development and provision of 89.3 alternative services for residents moved from the intermediate 89.4 care facility for persons with mental retardation or related 89.5 conditions; 89.6 (3) timelines and expected beginning dates for resident 89.7 relocation and facility downsizing; and 89.8 (4) projected expenditures for services provided to persons 89.9 with mental retardation or related conditions. 89.10 (c) The commissioner shall ensure that residents discharged 89.11 from the facility are appropriately placed according to need in 89.12 compliance with Minnesota Rules, parts 9525.0025 to 9525.0165. 89.13 (d) The commissioner shall ensure that the proposal 89.14 complies with need determination procedures in Minnesota 89.15 Statutes, sections 252.28 and 252.291; case management 89.16 responsibilities in Minnesota Statutes, section 256B.092; rate 89.17 requirements in Minnesota Statutes, section 256B.501; the 89.18 requirements under United States Code, title 42, section 1396, 89.19 and the rules and regulations adopted under these laws. 89.20 (e) The resulting downsizing must result in living units of 89.21 no larger than four persons, having single bedrooms and a common 89.22 living room, dining room/kitchen, and bathroom. 89.23 (f) The commissioner shall contract with Brown county where 89.24 the facility is located and the facility. The contract will 89.25 address and be consistent with the requirements of the proposal. 89.26 (g) Operating costs of the facility after downsizing may 89.27 not exceed the total allowable operating costs of the original 89.28 facility. For purposes of rate setting for the facility after 89.29 downsizing, fixed costs may be redistributed but must be based 89.30 on the actual costs reflected in existing rates. 89.31 Subd. 2. [IMPLEMENTATION OF THE PROPOSAL.] For the 89.32 purposes of the proposal, the commissioner shall: 89.33 (1) fund the downsizing of the ICF/MR; and 89.34 (2) notify Brown county and the facility of the selections 89.35 made and approved by the commissioner. The decision of the 89.36 commissioner is final and may not be appealed. 90.1 Sec. 21. [FACILITY CERTIFICATION.] 90.2 Notwithstanding Minnesota Statutes, section 252.291, 90.3 subdivisions 1 and 2, the commissioner of health shall inspect 90.4 to certify a large community-based facility currently licensed 90.5 under Minnesota Rules, parts 9525.0215 to 9525.0355, for more 90.6 than 16 beds and located in Northfield. The facility may be 90.7 certified for up to 44 beds. The commissioner of health must 90.8 inspect to certify the facility as soon as possible after the 90.9 effective date of this section. The commissioner of human 90.10 services shall work with the facility and affected counties to 90.11 relocate any current residents of the facility who do not meet 90.12 the admission criteria for an ICF/MR. To fund the ICF/MR 90.13 services and relocations of current residents authorized, the 90.14 commissioner of human services may transfer on a quarterly basis 90.15 to the medical assistance account from each affected county's 90.16 community social service allocation, an amount equal to the 90.17 state share of medical assistance reimbursement for the 90.18 residential and day habilitation services funded by medical 90.19 assistance and provided to clients for whom the county is 90.20 financially responsible. For nonresidents of Minnesota seeking 90.21 admission to the facility, Rice county shall be notified in 90.22 order to assure that appropriate funding is guaranteed from 90.23 their state or country of residence. 90.24 Sec. 22. [CRISIS INTERVENTION PROJECTS.] 90.25 (a) The commissioner of human services may authorize up to 90.26 five projects to provide crisis intervention through 90.27 community-based services in the private or public sector to 90.28 persons with developmental disabilities. The projects must be 90.29 geographically distributed in rural and urban areas. The 90.30 parameters of these projects may be consistent with the special 90.31 needs crisis services outlined under Minnesota Statutes, section 90.32 256B.501, subdivision 8a. 90.33 (b) The commissioner shall request proposals from 90.34 individual counties or groups of counties and establish criteria 90.35 for approval of proposals. Criteria shall include: 90.36 (1) avoidance of duplication of service by agreements with 91.1 hospitals and other public or private vendors as appropriate; 91.2 (2) reduction of inpatient psychiatric hospital expenses 91.3 using a cost-effective alternative service; 91.4 (3) maintenance of clients in their current homes; 91.5 (4) promotion of service to clients under a capitation 91.6 agreement with providers; 91.7 (5) coordination with other target populations and other 91.8 counties; 91.9 (6) provision of a full complement of on-site and off-site 91.10 behavioral support and crisis response services including: 91.11 training and technical assistance to prevent out of home 91.12 placements; crisis response, including in-home and short-term 91.13 placements; and assessment of service outcomes; 91.14 (7) evaluation of service program efficacy and cost 91.15 effectiveness. 91.16 (c) The commissioner shall review proposals in accordance 91.17 with Minnesota Statutes, section 252.28, and shall report to the 91.18 legislature on the cost effectiveness of the projects by January 91.19 15, 1997. 91.20 Sec. 23. [REPEALER.] 91.21 Minnesota Statutes 1994, section 252.275, subdivisions 4a 91.22 and 10, are repealed. 91.23 Sec. 24. [EFFECTIVE DATES.] 91.24 Section 15 (256.476) is effective July 1, 1996. 91.25 ARTICLE 4 91.26 CHILDREN'S PROGRAMS 91.27 Section 1. Minnesota Statutes 1994, section 245A.14, 91.28 subdivision 7, is amended to read: 91.29 Subd. 7. [CULTURAL DYNAMICS AND DISABILITIES TRAINING FOR 91.30 CHILD CARE PROVIDERS.] (a) Theongoingtraining required of 91.31 licensed child carecenterscenter staff andgroupfamily and 91.32 group family child care providers and staff shall include 91.33 training in the cultural dynamics of early childhood development 91.34 and child careas an option. 91.35 (b) The cultural dynamics and disabilities trainingmust91.36include, but not be limited to, the following: awareness of the92.1value and dignity of different cultures and how different92.2cultures complement each other; awareness of the emotional,92.3physical, and mental needs of children and families of different92.4cultures; knowledge of current and traditional roles of women92.5and men in different cultures, communities, and family92.6environments; and awareness of the diversity of child rearing92.7practices and parenting traditions.and skills development of 92.8 child care providers shall be designed to achieve outcomes for 92.9 providers of child care that include, but are not limited to: 92.10 (1) an understanding and support of the importance of 92.11 culture and differences in ability in children's identity 92.12 development; 92.13 (2) understanding the importance of awareness of cultural 92.14 differences and similarities in working with children and their 92.15 families; 92.16 (3) understanding and support of the needs of families and 92.17 children with differences in ability; 92.18 (4) developing skills to help children develop unbiased 92.19 attitudes about cultural differences and differences in ability; 92.20 (5) developing skills in culturally appropriate caregiving; 92.21 and 92.22 (6) developing skills in appropriate caregiving for 92.23 children of different abilities. 92.24 Curriculum for cultural dynamics and disability training 92.25 shall be approved by the commissioner. 92.26 (c) The commissioner shall amend current rules relating to 92.27 theinitialtraining of the licensed child care center staff and 92.28 licensed providersincluded in paragraph (a)of family and group 92.29 family child care and staff to require cultural dynamics 92.30 trainingupon determining that sufficient curriculum is92.31developed statewide. Timelines established in the rule 92.32 amendments for complying with the cultural dynamics training 92.33 requirements shall be based on the commissioner's determination 92.34 that curriculum materials and trainers are available statewide. 92.35 Sec. 2. Minnesota Statutes 1994, section 256.8711, is 92.36 amended to read: 93.1 256.8711 [EMERGENCY ASSISTANCE; INTENSIVE FAMILY 93.2PRESERVATIONSERVICES.] 93.3 Subdivision 1. [SCOPE OF SERVICES.] (a) For a family 93.4 experiencing an emergency as defined in subdivision 2, and for 93.5 whom the county authorizes services under subdivision 3, 93.6 intensive familypreservationservices authorized under this 93.7 section include both intensive family preservation services and 93.8 emergency assistance placement services. 93.9 (b) For purposes of this section, intensive family 93.10 preservation services are: 93.11 (1) crisis family-based services; 93.12 (2) counseling family-based services; and 93.13 (3) mental health family-based services. 93.14 Intensive family preservation services also include 93.15 family-based life management skills when it is provided in 93.16 conjunction with any of the three family-based services or five 93.17 emergency assistance placement services in this subdivision. 93.18 The intensive family preservation services in clauses (1), (2), 93.19 and (3) and life management skills have the meanings given in 93.20 section 256F.03, subdivision 5, paragraphs (a), (b), (c), and 93.21 (e). 93.22 (c) For purposes of this section, emergency assistance 93.23 placement services include: 93.24 (1) emergency shelter services; 93.25 (2) foster care services; 93.26 (3) group home services; 93.27 (4) child residential treatment services; and 93.28 (5) correctional facility services. 93.29 Subd. 2. [DEFINITION OF EMERGENCY.] For the purposes of 93.30 this section, an emergency is a situation in which the dependent 93.31 children are at risk for out-of-home placement due to abuse, 93.32 neglect, or delinquency;orwhen the children are returning home 93.33 from placements but need services to prevent another 93.34 placement;orwhen the parents are unable to provide care; or 93.35 when the dependent children have been removed from the home by a 93.36 peace officer, by order of the juvenile court, or pursuant to a 94.1 voluntary placement agreement, to a publicly funded out-of-home 94.2 placement. 94.3 Subd. 3. [COUNTY AUTHORIZATION.] The county agency shall 94.4 assess current and prospective client families with a dependent 94.5 under 21 years of age to determine if there is an emergency, as 94.6 defined in subdivision 2, and to determine if there is a need 94.7 for intensive familypreservationservices. Upon such 94.8 determinations,during the period October 1, 1993 to September94.930, 1995,counties shall authorize intensive familypreservation94.10 services for up to90 days12 months for eligible families under 94.11 this section and under section 256.871, subdivisions 1 and 94.12 3.Effective October 1, 1995,Once authorized, intensive family 94.13 services shall be used singly or in any combination or duration 94.14 up to 12 months appropriate to the needs of the child, as 94.15 determined by the county agency. 94.16 Subd. 3a. [LIMITATIONS ON FEDERAL FUNDING.] County 94.17 agencies shall determine eligibility under Title IV-E of the 94.18 Social Security Act for every child being considered for 94.19 emergency assistance placement services. The commissioner and 94.20 county agencies shall make every effort to use federal funding 94.21 under Title IV-E of the Social Security Act instead of federal 94.22 funding under this section, whenever possible. The counties' 94.23 obligations to continue the base level of expenditures and to 94.24 expand family preservation services as defined in section 94.25 256F.03, subdivision 5, are eliminated,with the termination of94.26 if the federal revenue earned under this section is terminated. 94.27 If the federal revenue earned under this section is terminated 94.28 or inadequate, the state has no obligation to pay for these 94.29 services. In the event that federal limitations or ceilings are 94.30 imposed on federal emergency assistance funding, the 94.31 commissioner shall use the funds according to these priorities: 94.32 (1) emergency assistance benefits under section 256.871; 94.33 (2) emergency assistance benefits under the reserve 94.34 established in subdivision 5; 94.35 (3) intensive family preservation services under this 94.36 section; and 95.1 (4) emergency assistance placement services under this 95.2 section. 95.3 Subd. 4. [COST TO FAMILIES.] Family preservation services 95.4 provided under this section or sections 256F.01 to 256F.07 shall 95.5 be provided at no cost to the client and without regard to the 95.6 client's available income or assets. Emergency assistance 95.7 placement services provided under this section shall not be 95.8 dependent on the client's available income or assets. However, 95.9 county agencies shall seek costs of care as required under 95.10 section 260.251 for emergency assistance placement services. 95.11 Subd. 5. [EMERGENCY ASSISTANCE RESERVE.] The commissioner 95.12 shall establish an emergency assistance reserve for families who 95.13 receive intensive familypreservationservices under this 95.14 section. A family is eligible to receive assistance once from 95.15 the emergency assistance reserve if it received intensive family 95.16preservationservices under this section within the past 12 95.17 months, but has not received emergency assistance under section 95.18 256.871 during that period. The emergency assistance reserve 95.19 shall cover the cost of the federal share of the assistance that 95.20 would have been available under section 256.871, except for the 95.21 provision of intensive familypreservationservices provided 95.22 under this section. The emergency assistance reserve shall be 95.23 authorized and paid in the same manner as emergency assistance 95.24 is provided under section 256.871. Funds set aside for the 95.25 emergency assistance reserve that are not needed as determined 95.26 by the commissioner shall be distributed by the terms of 95.27 subdivision 6, paragraph (a); or 6b, paragraph (a), depending on 95.28 how the funds were earned. 95.29 Subd. 6. [DISTRIBUTION OF NEW FEDERAL REVENUE EARNED FOR 95.30 INTENSIVE FAMILY PRESERVATION SERVICES.] (a) All federal funds 95.31 not set aside under paragraph (b), and at least 50 percent of 95.32 all federal funds earned for intensive family preservation 95.33 services under this section and earned through assessment 95.34 activity under subdivision 3, shall be paid to each county based 95.35 on its earnings and assessment activity, respectively, and shall 95.36 be used by each county to expand family preservation core 96.1 services as defined in section 256F.03, subdivision510, and 96.2 may be used to expand crisis nursery services. If a county 96.3 joins a local children's mental health collaborative as 96.4 authorized by the 1993 legislature, then the federal 96.5 reimbursement received under this paragraph by the county for 96.6 providing intensive family preservation services to children 96.7 served by the local collaborative shall be transferred by the 96.8 county to the integrated fund. The federal reimbursement 96.9 transferred to the integrated fund by the county must be used 96.10 for intensive family preservation services as defined in section 96.11 256F.03, subdivision 5, to the target population. 96.12 (b) The commissioner shall set aside a portion, not to 96.13 exceed 50 percent, of the federal funds earned for intensive 96.14 family preservation services under this section and earned 96.15 through assessment activity described under subdivision 3. The 96.16 set aside funds shall be used to develop and expand intensive 96.17 family preservation services statewide as provided in 96.18 subdivisions 6a and 7 and establish an emergency assistance 96.19 reserve as provided in subdivision 5. 96.20 Subd. 6a. [DEVELOPMENT GRANTS.] Except for the portion 96.21 needed for the emergency assistance reserve provided in 96.22 subdivision 5, the commissionermayshall distribute the funds 96.23 set aside under subdivision 6, paragraph (b), 96.24 through development grants toa county orcounties to establish 96.25 and maintainapproved intensivefamily preservation core 96.26 services as defined in section 256F.03, subdivision 10, 96.27 statewide.Funds available for crisis family-based services96.28through section 256F.05, subdivision 8, shall be considered in96.29establishing intensive family preservation services statewide.96.30The commissioner may phase in intensive family preservation96.31services in a county or group of counties as new federal funds96.32become available.The commissioner's priority is to establish a 96.33 minimum level ofintensivefamily preservation core services 96.34 statewide. Each county's development grant shall be paid and 96.35 used as provided in sections 256F.01 to 256F.06. 96.36 Subd. 6b. [DISTRIBUTION OF NEW FEDERAL REVENUE EARNED FOR 97.1 EMERGENCY ASSISTANCE PLACEMENT SERVICES.] (a) All federal funds 97.2 earned for emergency assistance placement services not set aside 97.3 under paragraph (b), shall be paid to each county based on its 97.4 earnings. These payments shall constitute the placement 97.5 earnings grant of the family preservation fund under sections 97.6 256F.01 to 256F.06. 97.7 (b) The commissioner may set aside a portion, not to exceed 97.8 15 percent, of the federal funds earned for emergency assistance 97.9 placement services under this section. The set aside funds 97.10 shall be used for the emergency assistance reserve as provided 97.11 in subdivision 5. 97.12 Subd. 7. [EXPANSION OF SERVICES AND BASE LEVEL OF 97.13 EXPENDITURES.] (a) Counties must continue the base level of 97.14 expenditures for family preservation core services as defined in 97.15 section 256F.03, subdivision510, from any state, county, or 97.16 federal funding source, which, in the absence of federal funds 97.17 earned for intensive family preservation services under this 97.18 section and earned through assessment activity described under 97.19 subdivision 3, would have been available for these services. 97.20 The commissioner shall review the county expenditures annually, 97.21 using reports required under sections 245.482, 256.01, 97.22 subdivision 2, paragraph (17), and 256E.08, subdivision 8, to 97.23 ensure that the base level of expenditures for family 97.24 preservation core services as defined in section 256F.03, 97.25 subdivision510, is continued from sources other than the 97.26 federal funds earned under this section and earned through 97.27 assessment activity described under subdivision 3. 97.28 (b) The commissionermayshall, at the request of a county, 97.29 reduce, suspend, or eliminate either or both of a county's 97.30 obligations to continue the base level of expenditures and to 97.31 expand family preservation core services as defined in section 97.32 256F.03, subdivision510, if the commissioner determines that 97.33 one or more of the following conditions apply to that county: 97.34 (1) imposition of levy limits or other levy restrictions 97.35 that significantly reduce available social service funds; 97.36 (2) reduction in the net tax capacity of the taxable 98.1 property within a county that significantly reduces available 98.2 social service funds; 98.3 (3) reduction in the number of children under age 19 in the 98.4 county by 25 percent when compared with the number in the base 98.5 year using the most recent data provided by the state 98.6 demographer's office;or98.7 (4) termination or reduction of the federal revenue earned 98.8 under this section; or 98.9 (5) other changes in state law that significantly impact 98.10 the receipt or distribution of state and federal funding. 98.11 (c) The commissioner may suspend for one year either or 98.12 both of a county's obligations to continue the base level of 98.13 expenditures and to expand family preservation core services as 98.14 defined in section 256F.03, subdivision510, if the 98.15 commissioner determines that in the previous year one or more of 98.16 the following conditions applied to that county: 98.17 (1) the unduplicated number of families who received family 98.18 preservation services under section 256F.03, subdivision 5, 98.19 paragraphs (a), (b), (c), and (e), equals or exceeds the 98.20 unduplicated number of children who entered placement under 98.21 sections 257.071 and 393.07, subdivisions 1 and 2, during the 98.22 year; 98.23 (2) the total number of children in placement under 98.24 sections 257.071 and 393.07, subdivisions 1 and 2, has been 98.25 reduced by 50 percent from the total number in the base year; or 98.26 (3) the average number of children in placement under 98.27 sections 257.071 and 393.07, subdivisions 1 and 2, on the last 98.28 day of each month is equal to or less than one child per 1,000 98.29 children in the county. 98.30 (d) For the purposes of this section, the base year is 98.31 calendar year 1992. For the purposes of this section, the base 98.32 level of expenditures is the level of county expenditures in the 98.33 base year for eligible family preservation services under 98.34 section 256F.03, subdivision 5, paragraphs (a), (b), (c), and 98.35 (e). 98.36 Subd. 8. [COUNTY RESPONSIBILITIES.] (a) Notwithstanding 99.1 section 256.871, subdivision 6, for intensive 99.2 familypreservationservices provided under this section, the 99.3 county agency shall submit quarterly fiscal reports as required 99.4 under section 256.01, subdivision 2, clause (17), and provide 99.5 the nonfederal share. 99.6 (b) County expenditures eligible for federal reimbursement 99.7 under this section must not be made from federal funds or funds 99.8 used to match other federal funds. 99.9 (c) The commissioner may suspend, reduce, or terminate the 99.10 federal reimbursement to a county that does not meet the 99.11 reporting or other requirements of this section. 99.12 Subd. 9. [PAYMENTS.] Notwithstanding section 256.025, 99.13 subdivision 2, payments to counties for social service 99.14 expenditures for intensive familypreservationservices under 99.15 this section shall be made only from the federal earnings under 99.16 this section and earned through assessment activity described 99.17 under subdivision 3. Counties may use up to ten percent of 99.18 federal earnings received under subdivision 6, paragraph (a), to 99.19 cover costs of income maintenance activities related to the 99.20 operation of this section and sections 256B.094 and 256F.10. 99.21 Subd. 10. [COMMISSIONER RESPONSIBILITIES.] The 99.22 commissioner in consultation with counties shall analyze state 99.23 funding options to cover costs of counties' base level 99.24 expenditures and any expansion of the nonfederal share of 99.25 intensive family preservation services resulting from 99.26 implementation of this section. The commissioner shall also 99.27 study problems of implementation, barriers to maximizing federal 99.28 revenue, and the impact on out-of-home placements of 99.29 implementation of this section. The commissioner shall report 99.30 to the legislature on the results of this analysis and study, 99.31 together with recommendations, by February 15, 1995. 99.32 Sec. 3. Minnesota Statutes 1994, section 256D.02, 99.33 subdivision 5, is amended to read: 99.34 Subd. 5. "Family" means the applicant or recipient and the 99.35 following persons who reside with the applicant or recipient: 99.36 (1) the applicant's spouse;