SF 1458

1st Engrossment - 89th Legislature (2015 - 2016) Posted on 04/24/2015 06:22pm

A bill for an act
relating to state government; establishing the health and human services budget;
modifying provisions governing children and family services, chemical and
mental health services, withdrawal management programs, direct care and
treatment, health care, continuing care, Department of Health programs,
health care delivery, health licensing boards, and MNsure; making changes
to medical assistance, general assistance, MFIP, Northstar Care for Children,
MinnesotaCare, child care assistance, and group residential housing programs;
establishing uniform requirements for public assistance programs related
to income calculation, reporting income, and correcting overpayments and
underpayments; creating the Department of MNsure; modifying requirements
for reporting maltreatment of minors; establishing the Minnesota ABLE plan
and accounts; modifying child support provisions; establishing standards for
withdrawal management programs; modifying requirements for background
studies; making changes to provisions governing the health information
exchange; authorizing rulemaking; requiring reports; making technical changes;
modifying certain fees for Department of Health programs; modifying fees
of certain health-related licensing boards; making human services forecast
adjustments; appropriating money; amending Minnesota Statutes 2014, sections
13.3806, subdivision 4; 13.46, subdivisions 2, 7; 13.461, by adding a subdivision;
15.01; 15A.0815, subdivision 2; 16A.724, subdivision 2; 43A.241; 62A.02,
subdivision 2; 62A.045; 62J.497, subdivisions 1, 3, 4, 5; 62J.498; 62J.4981;
62J.4982, subdivisions 4, 5; 62J.692, subdivision 4; 62M.01, subdivision
2; 62M.02, subdivisions 12, 14, 15, 17, by adding subdivisions; 62M.05,
subdivisions 3a, 3b, 4; 62M.06, subdivisions 2, 3; 62M.07; 62M.09, subdivision
3; 62M.10, subdivision 7; 62M.11; 62Q.02; 62U.02, subdivisions 1, 2, 3, 4;
62U.04, subdivision 11; 62V.02, subdivisions 2, 11, by adding a subdivision;
62V.03; 62V.05; 62V.06; 62V.07; 62V.08; 119B.011, subdivision 15; 119B.025,
subdivision 1; 119B.035, subdivision 4; 119B.07; 119B.09, subdivision 4;
119B.10, subdivision 1; 119B.11, subdivision 2a; 119B.125, by adding a
subdivision; 144.057, subdivision 1; 144.1501, subdivisions 1, 2, 3, 4; 144.215,
by adding a subdivision; 144.225, subdivision 4; 144.291, subdivision 2; 144.293,
subdivisions 6, 8; 144.298, subdivisions 2, 3; 144.3831, subdivision 1; 144.9501,
subdivisions 6d, 22b, 26b, by adding subdivisions; 144.9505; 144.9508;
144A.70, subdivision 6, by adding a subdivision; 144A.71; 144A.72; 144A.73;
144D.01, by adding a subdivision; 144E.001, by adding a subdivision; 144E.275,
subdivision 1, by adding a subdivision; 144E.50; 144F.01, subdivision 5;
145.928, by adding a subdivision; 145A.131, subdivision 1; 148.57, subdivisions
1, 2; 148.59; 148E.075; 148E.080, subdivisions 1, 2; 148E.180, subdivisions 2,
5; 149A.20, subdivisions 5, 6; 149A.40, subdivision 11; 149A.65; 149A.92,
subdivision 1; 149A.97, subdivision 7; 150A.091, subdivisions 4, 5, 11, by adding
subdivisions; 150A.31; 151.065, subdivisions 1, 2, 3, 4; 151.58, subdivisions 2,
5; 157.16; 169.686, subdivision 3; 174.29, subdivision 1; 174.30, subdivisions 3,
4, by adding subdivisions; 245.4661, subdivisions 5, 6, by adding subdivisions;
245.467, subdivision 6; 245.469, by adding a subdivision; 245.4876, subdivision
7; 245.4889, subdivision 1, by adding a subdivision; 245C.03, by adding a
subdivision; 245C.08, subdivision 1; 245C.10, by adding subdivisions; 245C.12;
246.18, subdivision 8; 246.54, subdivision 1; 246B.01, subdivision 2b; 246B.10;
253B.18, subdivisions 4c, 5; 254B.05, subdivision 5; 254B.12, subdivision 2;
256.01, by adding subdivisions; 256.015, subdivision 7; 256.017, subdivision
1; 256.478; 256.741, subdivisions 1, 2; 256.962, subdivision 5, by adding a
subdivision; 256.969, subdivisions 1, 2b, 3a, 3c, 9; 256.975, subdivision 8;
256B.056, subdivision 5c; 256B.057, subdivision 9; 256B.059, subdivision
5; 256B.06, by adding a subdivision; 256B.0615, subdivision 3; 256B.0622,
subdivisions 1, 2, 3, 4, 5, 7, 8, 9, 10, by adding a subdivision; 256B.0624,
subdivision 7; 256B.0625, subdivisions 3b, 9, 13, 13e, 13h, 14, 17, 17a, 18a,
18e, 31, 48, 57, 58, by adding subdivisions; 256B.0631; 256B.072; 256B.0757;
256B.0916, subdivisions 2, 11, by adding a subdivision; 256B.441, by adding
a subdivision; 256B.49, subdivision 26, by adding a subdivision; 256B.4913,
subdivisions 4a, 5; 256B.4914, subdivisions 2, 8, 10, 14, 15; 256B.69,
subdivisions 5a, 5i, 6, 9c, 9d, by adding a subdivision; 256B.75; 256B.76,
subdivisions 2, 4, 7; 256B.767; 256D.01, subdivision 1a; 256D.02, subdivision
8, by adding subdivisions; 256D.06, subdivision 1; 256D.405, subdivision 3;
256E.35, subdivision 2, by adding a subdivision; 256I.03, subdivisions 3,
7, by adding subdivisions; 256I.04; 256I.05, subdivisions 1c, 1g; 256I.06,
subdivisions 2, 6, 7, 8; 256J.08, subdivisions 26, 86; 256J.24, subdivisions 5, 5a;
256J.30, subdivisions 1, 9; 256J.35; 256J.40; 256J.95, subdivision 19; 256K.45,
subdivisions 1a, 6; 256L.01, subdivisions 3a, 5; 256L.03, subdivision 5; 256L.04,
subdivisions 1a, 1c, 7b; 256L.05, subdivisions 3, 3a, 4, by adding a subdivision;
256L.06, subdivision 3; 256L.11, by adding a subdivision; 256L.121, subdivision
1; 256L.15, subdivision 2; 256N.22, subdivisions 9, 10; 256N.24, subdivision 4;
256N.25, subdivision 1; 256N.27, subdivision 2; 256P.001; 256P.01, subdivision
3, by adding subdivisions; 256P.02, by adding a subdivision; 256P.03,
subdivision 1; 256P.04, subdivisions 1, 4; 256P.05, subdivision 1; 257.0755,
subdivisions 1, 2; 257.0761, subdivision 1; 257.0766, subdivision 1; 257.0769,
subdivision 1; 257.75, subdivisions 3, 5; 259A.75; 260C.007, subdivisions 27,
32; 260C.203; 260C.212, subdivision 1, by adding subdivisions; 260C.221;
260C.331, subdivision 1; 260C.451, subdivisions 2, 6; 260C.515, subdivision 5;
260C.521, subdivisions 1, 2; 260C.607, subdivision 4; 282.241, subdivision 1;
290.0671, subdivision 6; 297A.70, subdivision 7; 514.73; 514.981, subdivision
2; 518A.26, subdivision 14; 518A.32, subdivision 2; 518A.39, subdivision 1, by
adding a subdivision; 518A.41, subdivisions 1, 3, 4, 14, 15; 518A.43, by adding a
subdivision; 518A.46, subdivision 3, by adding a subdivision; 518A.51; 518A.53,
subdivisions 1, 4, 10; 518A.60; 518C.802; 580.032, subdivision 1; 626.556,
subdivisions 1, as amended, 2, 3, 6a, 7, as amended, 10, 10e, 10j, 10m, 11c, by
adding subdivisions; Laws 2008, chapter 363, article 18, section 3, subdivision 5;
Laws 2013, chapter 108, article 14, section 12, as amended; Laws 2014, chapter
189, sections 5; 10; 11; 16; 17; 18; 19; 23; 24; 27; 28; 29; 31; 43; 50; 51; 73;
Laws 2014, chapter 312, article 24, section 45, subdivision 2; proposing coding
for new law in Minnesota Statutes, chapters 15; 62A; 62M; 62Q; 62V; 144; 144D;
245; 246B; 256B; 256E; 256M; 256P; 518A; proposing coding for new law as
Minnesota Statutes, chapters 245F; 256Q; repealing Minnesota Statutes 2014,
sections 62V.04; 62V.09; 62V.11; 144E.52; 148E.060, subdivision 12; 148E.075,
subdivisions 4, 5, 6, 7; 256.969, subdivisions 23, 30; 256B.69, subdivision 32;
256D.0513; 256D.06, subdivision 8; 256D.09, subdivision 6; 256D.49; 256J.38;
256L.02, subdivision 3; 256L.05, subdivisions 1b, 1c, 3c, 5; 256L.11, subdivision
7; 257.0755, subdivision 1; 257.0768; 290.0671, subdivision 6a; Minnesota
Rules, parts 3400.0170, subparts 5, 6, 12, 13; 8840.5900, subparts 12, 14.

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

ARTICLE 1

CHILDREN AND FAMILY SERVICES

Section 1.

Minnesota Statutes 2014, section 119B.07, is amended to read:

119B.07 USE OF MONEY.

Subdivision 1.

Uses of money.

(a) Money for persons listed in sections 119B.03,
subdivision 3, and 119B.05, subdivision 1, shall be used to reduce the costs of child care
for students, including the costs of child care for students while employed if enrolled in an
eligible education program at the same time and making satisfactory progress towards
completion of the program. Counties may not limit the duration of child care subsidies for
a person in an employment or educational program, except when the person is found to be
ineligible under the child care fund eligibility standards. Any limitation must be based
on a person's employment plan in the case of an MFIP participant, and county policies
included in the child care fund plan. The maximum length of time a student is eligible for
child care assistance under the child care fund for education and training is no more than
the time necessary to complete the credit requirements for an associate or baccalaureate
degree as determined by the educational institution, excluding basic or remedial education
programs needed to prepare for postsecondary education or employment.

Subd. 2.

Eligibility.

(b) To be eligible, the student must be in good standing
and be making satisfactory progress toward the degree. Time limitations for child care
assistance do not apply to basic or remedial educational programs needed to prepare
for postsecondary education or employment. These programs include: high school,
general equivalency diploma, and English as a second language. Programs exempt from
this time limit must not run concurrently with a postsecondary program. If an MFIP
participant who is receiving MFIP child care assistance under this chapter moves to
another county, continues to participate in educational or training programs authorized in
their employment plans, and continues to be eligible for MFIP child care assistance under
this chapter, the MFIP participant must receive continued child care assistance from the
county responsible for their current employment plan, under section 256G.07.

Subd. 3.

Amount of child care assistance authorized.

(a) If the student meets the
conditions of subdivisions 1 and 2, child care assistance must be authorized for all hours
of actual class time and credit hours, including independent study and internships; up to
two hours of travel time per day; and, for postsecondary students, two hours per week
per credit hour for study time and academic appointments. For an MFIP or DWP student
whose employment plan specifies a different time frame, child care assistance must be
authorized according to the time frame specified in the employment plan.

(b) The amount of child care assistance authorized must take into consideration the
amount of time the parent reports on the application or redetermination form that the child
attends preschool, a Head Start program, or school while the parent is participating in
the parent's authorized activity.

(c) When the conditions in paragraph (d) do not apply, the applicant's or participant's
activity schedule does not need to be verified. The amount of child care assistance
authorized may be used during the applicant's or participant's activity or at other times, as
determined by the family, to meet the developmental needs of the child.

(d) Care must be authorized based on the applicant's or participant's verified activity
schedule when:

(1) the family requests to regularly receive care from more than one provider per child;

(2) the family requests a legal nonlicensed provider;

(3) the family includes more than one applicant or participant; or

(4) an applicant or participant is employed by a provider that is licensed by the
Department of Human Services or enrolled as a medical assistance provider in the
Minnesota health care program's provider directory.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 2.

Minnesota Statutes 2014, section 119B.10, subdivision 1, is amended to read:

Subdivision 1.

Assistance for persons seeking and retaining employment.

(a)
Persons who are seeking employment and who are eligible for assistance under this
section are eligible to receive up to 240 hours of child care assistance per calendar year.

(b) Employed persons who work at least an average of 20 hours and full-time
students who work at least an average of ten hours a week and receive at least a minimum
wage for all hours worked are eligible for continued child care assistance for employment.
For purposes of this section, work-study programs must be counted as employment. Child
care assistance during employment for employed participants must be authorized as
provided in paragraphs (c) and, (d), (e), (f), and (g).

(c) When the person works for an hourly wage and the hourly wage is equal to or
greater than the applicable minimum wage, child care assistance shall be provided for the
actual hours of employment, break, and mealtime during the employment and travel time
up to two hours per day.

(d) When the person does not work for an hourly wage, child care assistance must be
provided for the lesser of:

(1) the amount of child care determined by dividing gross earned income by the
applicable minimum wage, up to one hour every eight hours for meals and break time,
plus up to two hours per day for travel time; or

(2) the amount of child care equal to the actual amount of child care used during
employment, including break and mealtime during employment, and travel time up to
two hours per day.

(e) The amount of child care assistance authorized must take into consideration the
amount of time the parent reports on the application or redetermination form that the child
attends preschool, a Head Start program, or school while the parent is participating in
the parent's authorized activity.

(f) When the conditions in paragraph (g) do not apply, the applicant's or participant's
activity schedule does not need to be verified. The amount of child care assistance
authorized may be used during the applicant's or participant's activity or at other times, as
determined by the family, to meet the developmental needs of the child.

(g) Care must be authorized based on the applicant's or participant's verified activity
schedule when:

(1) the family requests to regularly receive care from more than one provider per child;

(2) the family requests a legal nonlicensed provider;

(3) the family includes more than one applicant or participant; or

(4) an applicant or participant is employed by a provider that is licensed by the
Department of Human Services or enrolled as a medical assistance provider in the
Minnesota health care program's provider directory.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 3.

Minnesota Statutes 2014, section 119B.11, subdivision 2a, is amended to read:

Subd. 2a.

Recovery of overpayments.

(a) An amount of child care assistance
paid to a recipient in excess of the payment due is recoverable by the county agency
under paragraphs (b) and (c), even when the overpayment was caused by agency error or
circumstances outside the responsibility and control of the family or provider.

(b) An overpayment must be recouped or recovered from the family if the
overpayment benefited the family by causing the family to pay less for child care expenses
than the family otherwise would have been required to pay under child care assistance
program requirements. Family overpayments must be established and recovered in
accordance with clauses (1) to (5).

(1) If the overpayment is estimated to be less than $500, the overpayment must not be
established or collected. Any portion of the overpayment that occurred more than one year
prior to the date of the overpayment determination must not be established or collected.

(2) If the family remains eligible for child care assistance and an overpayment is
established, the overpayment must be recovered through recoupment as identified in
Minnesota Rules, part 3400.0187, except that the overpayments must be calculated and
collected on a service period basis. If the family no longer remains eligible for child
care assistance, the county may choose to initiate efforts to recover overpayments from
the family for overpayment less than $50.

(3) If the family is no longer eligible for child care assistance and an overpayment
is greater than or equal to $50 established, the county shall seek voluntary repayment of
the overpayment from the family.

(4) If the county is unable to recoup the overpayment through voluntary repayment,
the county shall initiate civil court proceedings to recover the overpayment unless the
county's costs to recover the overpayment will exceed the amount of the overpayment.

(5) A family with an outstanding debt under this subdivision is not eligible for
child care assistance until:

(1) (i) the debt is paid in full; or

(2) (ii) satisfactory arrangements are made with the county to retire the debt
consistent with the requirements of this chapter and Minnesota Rules, chapter 3400, and
the family is in compliance with the arrangements.

(c) The county must recover an overpayment from a provider if the overpayment did
not benefit the family by causing it to receive more child care assistance or to pay less
for child care expenses than the family otherwise would have been eligible to receive
or required to pay under child care assistance program requirements, and benefited the
provider by causing the provider to receive more child care assistance than otherwise
would have been paid on the family's behalf under child care assistance program
requirements. If the provider continues to care for children receiving child care assistance,
the overpayment must be recovered through reductions in child care assistance payments
for services as described in an agreement with the county. The provider may not charge
families using that provider more to cover the cost of recouping the overpayment. If the
provider no longer cares for children receiving child care assistance, the county may
choose to initiate efforts to recover overpayments of less than $50 from the provider. If the
overpayment is greater than or equal to $50, the county shall seek voluntary repayment of
the overpayment from the provider. If the county is unable to recoup the overpayment
through voluntary repayment, the county shall initiate civil court proceedings to recover
the overpayment unless the county's costs to recover the overpayment will exceed the
amount of the overpayment. A provider with an outstanding debt under this subdivision is
not eligible to care for children receiving child care assistance until:

(1) the debt is paid in full; or

(2) satisfactory arrangements are made with the county to retire the debt consistent
with the requirements of this chapter and Minnesota Rules, chapter 3400, and the provider
is in compliance with the arrangements.

(d) When both the family and the provider acted together to intentionally cause the
overpayment, both the family and the provider are jointly liable for the overpayment
regardless of who benefited from the overpayment. The county must recover the
overpayment as provided in paragraphs (b) and (c). When the family or the provider is in
compliance with a repayment agreement, the party in compliance is eligible to receive
child care assistance or to care for children receiving child care assistance despite the
other party's noncompliance with repayment arrangements.

(e) A family overpayment designated solely as an agency error must not be
established or collected. This paragraph does not apply: (1) to recipient families if the
overpayment was caused in any part by wrongfully obtaining assistance under section
256.98; or (2) to benefits paid pending appeal under section 119B.16, to the extent that
the commissioner finds on appeal that the appellant was not eligible for the amount of
child care assistance paid.

(f) A provider overpayment designated as an agency error that results from an
incorrect maximum rate being applied must not be established or collected. All other
provider overpayments designated as agency error must be established and collected.

(g) Notwithstanding any provision to the contrary in this subdivision, an
overpayment must be collected, regardless of amount of time period, if the overpayment
was caused by wrongfully obtaining assistance under section 256.98, or benefits paid while
an action is pending appeal under section 119B.16, to the extent the commissioner finds
on appeal that the appellant was not eligible for the amount of child care assistance paid.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 4.

Minnesota Statutes 2014, section 119B.125, is amended by adding a subdivision
to read:

Subd. 7.

Failure to comply with attendance record requirements.

(a) In
establishing an overpayment claim for failure to provide attendance records in compliance
with section 119B.125, subdivision 6, the county or commissioner is limited to the six
years prior to the date the county or the commissioner requested the attendance records.

(b) The commissioner may periodically audit child care providers to determine
compliance with section 119B.125, subdivision 6.

(c) When the commissioner or county establishes an overpayment claim against a
current or former provider, the commissioner or county must provide notice of the claim to
the provider. A notice of overpayment claim must specify the reason for the overpayment,
the authority for making the overpayment claim, the time period in which the overpayment
occurred, the amount of the overpayment, and the provider's right to appeal.

(d) The commissioner or county shall seek to recoup or recover overpayments paid
to a current or former provider.

(e) When a provider has been disqualified or convicted of fraud under section
256.98, theft under section 609.52, or a federal crime relating to theft of state funds
or fraudulent billing for a program administered by the commissioner or a county,
recoupment or recovery must be sought regardless of the amount of overpayment.

Sec. 5.

Minnesota Statutes 2014, section 245C.03, is amended by adding a subdivision
to read:

Subd. 10.

Providers of group residential housing or supplementary services.

The commissioner shall conduct background studies on any individual required under
section 256I.04 to have a background study completed under this chapter.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 6.

Minnesota Statutes 2014, section 245C.10, is amended by adding a subdivision
to read:

Subd. 11.

Providers of group residential housing or supplementary services.

The commissioner shall recover the cost of background studies initiated by providers of
group residential housing or supplementary services under section 256I.04 through a fee
of no more than $20 per study. The fees collected under this subdivision are appropriated
to the commissioner for the purpose of conducting background studies.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 7.

Minnesota Statutes 2014, section 256.01, is amended by adding a subdivision
to read:

Subd. 12a.

Department of Human Services child fatality and near fatality
review team.

The commissioner shall establish a Department of Human Services child
fatality and near fatality review team to review child fatalities and near fatalities due to
child maltreatment and child fatalities and near fatalities that occur in licensed facilities
and are not due to natural causes. The review team shall assess the entire child protection
services process from the point of a mandated reporter reporting the alleged maltreatment
through the ongoing case management process. Department staff shall lead and conduct
on-site local reviews and utilize supervisors from local county and tribal child welfare
agencies as peer reviewers. The review process must focus on critical elements of the case
and on the involvement of the child and family with the county or tribal child welfare
agency. The review team shall identify necessary program improvement planning to
address any practice issues identified and training and technical assistance needs of
the local agency. Summary reports of each review shall be provided to the state child
mortality review panel when completed.

Sec. 8.

Minnesota Statutes 2014, section 256.01, is amended by adding a subdivision
to read:

Subd. 14c.

Early intervention support and services for at-risk American Indian
families.

(a) The commissioner shall authorize grants to tribal child welfare agencies and
urban Indian organizations for the purpose of providing early intervention support and
services to prevent child maltreatment for at-risk American Indian families.

(b) The commissioner is authorized to develop program eligibility criteria, early
intervention service delivery procedures, and reporting requirements for agencies and
organizations receiving grants.

Sec. 9.

Minnesota Statutes 2014, section 256.017, subdivision 1, is amended to read:

Subdivision 1.

Authority and purpose.

The commissioner shall administer a
compliance system for the Minnesota family investment program, the food stamp or food
support program, emergency assistance, general assistance, medical assistance, emergency
general assistance, Minnesota supplemental assistance, group residential housing,
preadmission screening, alternative care grants, the child care assistance program, and
all other programs administered by the commissioner or on behalf of the commissioner
under the powers and authorities named in section 256.01, subdivision 2. The purpose of
the compliance system is to permit the commissioner to supervise the administration of
public assistance programs and to enforce timely and accurate distribution of benefits,
completeness of service and efficient and effective program management and operations,
to increase uniformity and consistency in the administration and delivery of public
assistance programs throughout the state, and to reduce the possibility of sanctions and
fiscal disallowances for noncompliance with federal regulations and state statutes. The
commissioner, or the commissioner's representative, may issue administrative subpoenas
as needed in administering the compliance system.

The commissioner shall utilize training, technical assistance, and monitoring
activities, as specified in section 256.01, subdivision 2, to encourage county agency
compliance with written policies and procedures.

Sec. 10.

Minnesota Statutes 2014, section 256.741, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) The term "direct support" as used in this chapter and
chapters 257, 518, 518A, and 518C refers to an assigned support payment from an obligor
which is paid directly to a recipient of public assistance.

(b) The term "public assistance" as used in this chapter and chapters 257, 518, 518A,
and 518C, includes any form of assistance provided under the AFDC program formerly
codified in sections 256.72 to 256.87, MFIP and MFIP-R formerly codified under chapter
256, MFIP under chapter 256J, work first program formerly codified under chapter 256K;
child care assistance provided through the child care fund under chapter 119B; any form
of medical assistance under chapter 256B; MinnesotaCare under chapter 256L; and foster
care as provided under title IV-E of the Social Security Act. MinnesotaCare and health
plans subsidized by federal premium tax credits or federal cost-sharing reductions are not
considered public assistance for purposes of a child support referral.

(c) The term "child support agency" as used in this section refers to the public
authority responsible for child support enforcement.

(d) The term "public assistance agency" as used in this section refers to a public
authority providing public assistance to an individual.

(e) The terms "child support" and "arrears" as used in this section have the meanings
provided in section 518A.26.

(f) The term "maintenance" as used in this section has the meaning provided in
section 518.003.

Sec. 11.

Minnesota Statutes 2014, section 256.741, subdivision 2, is amended to read:

Subd. 2.

Assignment of support and maintenance rights.

(a) An individual
receiving public assistance in the form of assistance under any of the following programs:
the AFDC program formerly codified in sections 256.72 to 256.87, MFIP under chapter
256J, MFIP-R and MFIP formerly codified under chapter 256, or work first program
formerly codified under chapter 256K is considered to have assigned to the state at the
time of application all rights to child support and maintenance from any other person the
applicant or recipient may have in the individual's own behalf or in the behalf of any other
family member for whom application for public assistance is made. An assistance unit is
ineligible for the Minnesota family investment program unless the caregiver assigns all
rights to child support and maintenance benefits according to this section.

(1) The assignment is effective as to any current child support and current
maintenance.

(2) Any child support or maintenance arrears that accrue while an individual is
receiving public assistance in the form of assistance under any of the programs listed in
this paragraph are permanently assigned to the state.

(3) The assignment of current child support and current maintenance ends on the
date the individual ceases to receive or is no longer eligible to receive public assistance
under any of the programs listed in this paragraph.

(b) An individual receiving public assistance in the form of medical assistance,
including MinnesotaCare, is considered to have assigned to the state at the time of
application all rights to medical support from any other person the individual may have
in the individual's own behalf or in the behalf of any other family member for whom
medical assistance is provided.

(1) An assignment made after September 30, 1997, is effective as to any medical
support accruing after the date of medical assistance or MinnesotaCare eligibility.

(2) Any medical support arrears that accrue while an individual is receiving public
assistance in the form of medical assistance, including MinnesotaCare, are permanently
assigned to the state.

(3) The assignment of current medical support ends on the date the individual ceases
to receive or is no longer eligible to receive public assistance in the form of medical
assistance or MinnesotaCare.

(c) An individual receiving public assistance in the form of child care assistance
under the child care fund pursuant to chapter 119B is considered to have assigned to the
state at the time of application all rights to child care support from any other person the
individual may have in the individual's own behalf or in the behalf of any other family
member for whom child care assistance is provided.

(1) The assignment is effective as to any current child care support.

(2) Any child care support arrears that accrue while an individual is receiving public
assistance in the form of child care assistance under the child care fund in chapter 119B
are permanently assigned to the state.

(3) The assignment of current child care support ends on the date the individual
ceases to receive or is no longer eligible to receive public assistance in the form of child
care assistance under the child care fund under chapter 119B.

Sec. 12.

[256E.345] HEALTHY EATING, HERE AT HOME.

Subdivision 1.

Establishment.

The healthy eating, here at home program is
established to provide incentives for low-income Minnesotans to use Supplemental
Nutrition Assistance Program (SNAP) benefits for healthy purchases at Minnesota-based
farmers' markets.

Subd. 2.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Healthy eating, here at home" means a program administered by the
commissioner to provide incentives for low-income Minnesotans to use SNAP benefits for
healthy purchases at Minnesota-based farmers' markets.

(c) "Healthy purchases" means SNAP-eligible foods.

(d) "Minnesota-based farmers' market" means a physical market as defined in section
28A.151, subdivision 1, paragraph (b), and also includes mobile markets.

(e) "Voucher" means a physical or electronic credit.

(f) "Eligible household" means an individual or family that is determined to be a
recipient of SNAP.

Subd. 3.

Grants.

The commissioner shall award grant funds to nonprofit
organizations that work with Minnesota-based farmers' markets to provide up to $10
vouchers to SNAP participants who use electronic benefits transfer (EBT) cards for
healthy purchases. Funds may also be provided for vouchers distributed through nonprofit
organizations engaged in healthy cooking and food education outreach to eligible
households for use at farmers' markets. Funds appropriated under this section may not
be used for healthy cooking classes or food education outreach. When awarding grants,
the commissioner must consider how the nonprofit organizations will achieve geographic
balance, including specific efforts to reach eligible households across the state, and the
organizations' capacity to manage the programming and outreach.

Subd. 4.

Household eligibility; participation.

To be eligible for a healthy eating,
here at home voucher, an eligible household must meet the SNAP eligibility requirements
in state or federal law.

Subd. 5.

Permissible uses; information provided.

An eligible household may use
the voucher toward healthy purchases at Minnesota-based farmers' markets. Every eligible
household that receives a voucher must be informed of the allowable uses of the voucher.

Subd. 6.

Program reporting.

The nonprofit organizations that receive grant funds
must report annually to the commissioner with information regarding the operation of the
program, including the number of vouchers issued and the number of people served. To
the extent practicable, the nonprofit organizations must report on the usage of the vouchers
and evaluate the program's effectiveness.

Subd. 7.

Grocery inclusion.

The commissioner must submit a waiver request to
the federal United States Department of Agriculture seeking approval for the inclusion of
Minnesota grocery stores in this program so that SNAP participants may use the vouchers
for healthy produce at grocery stores. Grocery store participation is voluntary and a
grocery store's associated administrative costs will not be reimbursed.

Sec. 13.

Minnesota Statutes 2014, section 256E.35, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Eligible educational institution" means the following:

(1) an institution of higher education described in section 101 or 102 of the Higher
Education Act of 1965; or

(2) an area vocational education school, as defined in subparagraph (C) or (D) of
United States Code, title 20, chapter 44, section 2302 (3) (the Carl D. Perkins Vocational
and Applied Technology Education Act), which is located within any state, as defined in
United States Code, title 20, chapter 44, section 2302 (30). This clause is applicable only
to the extent section 2302 is in effect on August 1, 2008.

(b) (c) "Family asset account" means a savings account opened by a household
participating in the Minnesota family assets for independence initiative.

(c) (d) "Fiduciary organization" means:

(1) a community action agency that has obtained recognition under section 256E.31;

(2) a federal community development credit union serving the seven-county
metropolitan area; or

(3) a women-oriented economic development agency serving the seven-county
metropolitan area.

(e) "Financial coach" means a person who:

(1) has completed an intensive financial literacy training workshop that includes
curriculum on budgeting to increase savings, debt reduction and asset building, building a
good credit rating, and consumer protection;

(2) participates in ongoing statewide family assets for independence in Minnesota
(FAIM) network training meetings under FAIM program supervision; and

(3) provides financial coaching to program participants under subdivision 4a.

(d) (f) "Financial institution" means a bank, bank and trust, savings bank, savings
association, or credit union, the deposits of which are insured by the Federal Deposit
Insurance Corporation or the National Credit Union Administration.

(g) "Household" means all individuals who share use of a dwelling unit as primary
quarters for living and eating separate from other individuals.

(e) (h) "Permissible use" means:

(1) postsecondary educational expenses at an eligible educational institution as
defined in paragraph (g) (b), including books, supplies, and equipment required for
courses of instruction;

(2) acquisition costs of acquiring, constructing, or reconstructing a residence,
including any usual or reasonable settlement, financing, or other closing costs;

(3) business capitalization expenses for expenditures on capital, plant, equipment,
working capital, and inventory expenses of a legitimate business pursuant to a business
plan approved by the fiduciary organization; and

(4) acquisition costs of a principal residence within the meaning of section 1034 of
the Internal Revenue Code of 1986 which do not exceed 100 percent of the average area
purchase price applicable to the residence determined according to section 143(e)(2) and
(3) of the Internal Revenue Code of 1986.

(f) "Household" means all individuals who share use of a dwelling unit as primary
quarters for living and eating separate from other individuals.

(g) "Eligible educational institution" means the following:

(1) an institution of higher education described in section 101 or 102 of the Higher
Education Act of 1965; or

(2) an area vocational education school, as defined in subparagraph (C) or (D) of
United States Code, title 20, chapter 44, section 2302 (3) (the Carl D. Perkins Vocational
and Applied Technology Education Act), which is located within any state, as defined in
United States Code, title 20, chapter 44, section 2302 (30). This clause is applicable only
to the extent section 2302 is in effect on August 1, 2008.

Sec. 14.

Minnesota Statutes 2014, section 256E.35, is amended by adding a subdivision
to read:

Subd. 4a.

Financial coaching.

A financial coach shall provide the following
to program participants:

(1) financial education relating to budgeting, debt reduction, asset-specific training,
and financial stability activities;

(2) asset-specific training related to buying a home, acquiring postsecondary
education, or starting or expanding a small business; and

(3) financial stability education and training to improve and sustain financial security.

Sec. 15.

Minnesota Statutes 2014, section 256I.03, subdivision 3, is amended to read:

Subd. 3.

Group residential housing.

"Group residential housing" means a group
living situation that provides at a minimum room and board to unrelated persons who
meet the eligibility requirements of section 256I.04. This definition includes foster care
settings or community residential settings for a single adult. To receive payment for a
group residence rate, the residence must meet the requirements under section 256I.04,
subdivision subdivisions 2a to 2f.

Sec. 16.

Minnesota Statutes 2014, section 256I.03, subdivision 7, is amended to read:

Subd. 7.

Countable income.

"Countable income" means all income received by
an applicant or recipient less any applicable exclusions or disregards. For a recipient of
any cash benefit from the SSI program, countable income means the SSI benefit limit in
effect at the time the person is in a GRH a recipient of group residential housing, less the
medical assistance personal needs allowance under section 256B.35. If the SSI limit
has been or benefit is reduced for a person due to events occurring prior to the persons
entering the GRH setting other than receipt of additional income, countable income means
actual income less any applicable exclusions and disregards.

Sec. 17.

Minnesota Statutes 2014, section 256I.03, is amended by adding a subdivision
to read:

Subd. 9.

Direct contact.

"Direct contact" means providing face-to-face care,
support, training, supervision, counseling, consultation, or medication assistance to
recipients of group residential housing.

Sec. 18.

Minnesota Statutes 2014, section 256I.03, is amended by adding a subdivision
to read:

Subd. 10.

Habitability inspection.

"Habitability inspection" means an inspection to
determine whether the housing occupied by an individual meets the habitability standards
specified by the commissioner. The standards must be provided to the applicant in writing
and posted on the Department of Human Services Web site.

Sec. 19.

Minnesota Statutes 2014, section 256I.03, is amended by adding a subdivision
to read:

Subd. 11.

Long-term homelessness.

"Long-term homelessness" means lacking a
permanent place to live:

(1) continuously for one year or more; or

(2) at least four times in the past three years.

Sec. 20.

Minnesota Statutes 2014, section 256I.03, is amended by adding a subdivision
to read:

Subd. 12.

Professional statement of need.

"Professional statement of need" means
a statement about an individual's illness, injury, or incapacity that is signed by a qualified
professional. The statement must specify that the individual has an illness or incapacity
which limits the individual's ability to work and provide self-support. The statement
must also specify that the individual needs assistance to access or maintain housing, as
evidenced by the need for two or more of the following services:

(1) tenancy supports to assist an individual with finding the individual's own
home, landlord negotiation, securing furniture and household supplies, understanding
and maintaining tenant responsibilities, conflict negotiation, and budgeting and financial
education;

(2) supportive services to assist with basic living and social skills, household
management, monitoring of overall well-being, and problem solving;

(3) employment supports to assist with maintaining or increasing employment,
increasing earnings, understanding and utilizing appropriate benefits and services,
improving physical or mental health, moving toward self-sufficiency, and achieving
personal goals; or

(4) health supervision services to assist in the preparation and administration of
medications other than injectables, the provision of therapeutic diets, taking vital signs, or
providing assistance in dressing, grooming, bathing, or with walking devices.

Sec. 21.

Minnesota Statutes 2014, section 256I.03, is amended by adding a subdivision
to read:

Subd. 13.

Prospective budgeting.

"Prospective budgeting" means estimating the
amount of monthly income a person will have in the payment month.

Sec. 22.

Minnesota Statutes 2014, section 256I.03, is amended by adding a subdivision
to read:

Subd. 14.

Qualified professional.

"Qualified professional" means an individual as
defined in section 256J.08, subdivision 73a, or Minnesota Rules, part 9530.6450, subpart
3, 4, or 5; or an individual approved by the director of human services or a designee
of the director.

Sec. 23.

Minnesota Statutes 2014, section 256I.03, is amended by adding a subdivision
to read:

Subd. 15.

Supportive housing.

"Supportive housing" means housing with support
services according to the continuum of care coordinated assessment system established
under Code of Federal Regulations, title 24, section 578.3.

Sec. 24.

Minnesota Statutes 2014, section 256I.04, is amended to read:

256I.04 ELIGIBILITY FOR GROUP RESIDENTIAL HOUSING PAYMENT.

Subdivision 1.

Individual eligibility requirements.

An individual is eligible for
and entitled to a group residential housing payment to be made on the individual's behalf
if the agency has approved the individual's residence in a group residential housing setting
and the individual meets the requirements in paragraph (a) or (b).

(a) The individual is aged, blind, or is over 18 years of age and disabled as
determined under the criteria used by the title II program of the Social Security Act, and
meets the resource restrictions and standards of section 256P.02, and the individual's
countable income after deducting the (1) exclusions and disregards of the SSI program,
(2) the medical assistance personal needs allowance under section 256B.35, and (3) an
amount equal to the income actually made available to a community spouse by an elderly
waiver participant under the provisions of sections 256B.0575, paragraph (a), clause
(4), and 256B.058, subdivision 2, is less than the monthly rate specified in the agency's
agreement with the provider of group residential housing in which the individual resides.

(b) The individual meets a category of eligibility under section 256D.05, subdivision
1, paragraph (a), clauses (1), (3), (5) to (9), and (14), and paragraph (b), if applicable, and
the individual's resources are less than the standards specified by section 256P.02, and
the individual's countable income as determined under sections 256D.01 to 256D.21, less
the medical assistance personal needs allowance under section 256B.35 is less than the
monthly rate specified in the agency's agreement with the provider of group residential
housing in which the individual resides.

Subd. 1a.

County approval.

(a) A county agency may not approve a group
residential housing payment for an individual in any setting with a rate in excess of the
MSA equivalent rate for more than 30 days in a calendar year unless the county agency
has developed or approved individual has a plan for the individual which specifies that:

(1) the individual has an illness or incapacity which prevents the person from living
independently in the community; and

(2) the individual's illness or incapacity requires the services which are available in
the group residence.

The plan must be signed or countersigned by any of the following employees of the
county of financial responsibility: the director of human services or a designee of the
director; a social worker; or a case aide professional statement of need under section
256I.03, subdivision 12.

(b) If a county agency determines that an applicant is ineligible due to not meeting
eligibility requirements under this section, a county agency may accept a signed personal
statement from the applicant in lieu of documentation verifying ineligibility.

(c) Effective July 1, 2016, to be eligible for supplementary service payments,
providers must enroll in the provider enrollment system identified by the commissioner.

Subd. 1b.

Optional state supplements to SSI.

Group residential housing payments
made on behalf of persons eligible under subdivision 1, paragraph (a), are optional state
supplements to the SSI program.

Subd. 1c.

Interim assistance.

Group residential housing payments made on behalf
of persons eligible under subdivision 1, paragraph (b), are considered interim assistance
payments to applicants for the federal SSI program.

Subd. 2.

Date of eligibility.

An individual who has met the eligibility requirements
of subdivision 1, shall have a group residential housing payment made on the individual's
behalf from the first day of the month in which a signed application form is received by
a county agency, or the first day of the month in which all eligibility factors have been
met, whichever is later.

Subd. 2a.

License required; staffing qualifications.

A county (a) Except
as provided in paragraph (b), an agency may not enter into an agreement with an
establishment to provide group residential housing unless:

(1) the establishment is licensed by the Department of Health as a hotel and
restaurant; a board and lodging establishment; a residential care home; a boarding care
home before March 1, 1985; or a supervised living facility, and the service provider
for residents of the facility is licensed under chapter 245A. However, an establishment
licensed by the Department of Health to provide lodging need not also be licensed to
provide board if meals are being supplied to residents under a contract with a food vendor
who is licensed by the Department of Health;

(2) the residence is: (i) licensed by the commissioner of human services under
Minnesota Rules, parts 9555.5050 to 9555.6265; (ii) certified by a county human services
agency prior to July 1, 1992, using the standards under Minnesota Rules, parts 9555.5050
to 9555.6265; (iii) a residence licensed by the commissioner under Minnesota Rules, parts
2960.0010 to 2960.0120, with a variance under section 245A.04, subdivision 9; or (iv)
licensed under section 245D.02, subdivision 4a, as a community residential setting by
the commissioner of human services; or

(3) the establishment is registered under chapter 144D and provides three meals a
day, or is an establishment voluntarily registered under section 144D.025 as a supportive
housing establishment; or

(4) an establishment voluntarily registered under section 144D.025, other than
a supportive housing establishment under clause (3), is not eligible to provide group
residential housing.

(b) The requirements under clauses (1) to (4) paragraph (a) do not apply to
establishments exempt from state licensure because they are:

(1) located on Indian reservations and subject to tribal health and safety
requirements; or

(2) a supportive housing establishment that has an approved habitability inspection
and an individual lease agreement and that serves people who have experienced long-term
homelessness and were referred through a coordinated assessment in section 256I.03,
subdivision 15.

(c) Supportive housing establishments and emergency shelters must participate in
the homeless management information system.

(d) Effective July 1, 2016, an agency shall not have an agreement with a provider
of group residential housing or supplementary services unless all staff members who
have direct contact with recipients:

(1) have skills and knowledge acquired through:

(i) a course of study in a health or human services related field leading to a bachelor
of arts, bachelor of science, or associate's degree;

(ii) one year of experience with the target population served;

(iii) experience as a certified peer specialist according to section 256B.0615; or

(iv) meeting the requirements for unlicensed personnel under sections 144A.43
to 144A.483;

(2) hold a current Minnesota driver's license appropriate to the vehicle driven if
transporting participants;

(3) complete training on vulnerable adults mandated reporting and child
maltreatment mandated reporting, where applicable; and

(4) complete group residential housing orientation training offered by the
commissioner.

Subd. 2b.

Group residential housing agreements.

(a) Agreements between county
agencies and providers of group residential housing or supplementary services must be in
writing on a form developed and approved by the commissioner and must specify the name
and address under which the establishment subject to the agreement does business and
under which the establishment, or service provider, if different from the group residential
housing establishment, is licensed by the Department of Health or the Department of
Human Services; the specific license or registration from the Department of Health or the
Department of Human Services held by the provider and the number of beds subject to
that license; the address of the location or locations at which group residential housing is
provided under this agreement; the per diem and monthly rates that are to be paid from
group residential housing or supplementary service funds for each eligible resident at each
location; the number of beds at each location which are subject to the group residential
housing agreement; whether the license holder is a not-for-profit corporation under section
501(c)(3) of the Internal Revenue Code; and a statement that the agreement is subject to
the provisions of sections 256I.01 to 256I.06 and subject to any changes to those sections.

(b) Providers are required to verify the following minimum requirements in the
agreement:

(1) current license or registration, including authorization if managing or monitoring
medications;

(2) all staff who have direct contact with recipients meet the staff qualifications;

(3) the provision of group residential housing;

(4) the provision of supplementary services, if applicable;

(5) reports of adverse events, including recipient death or serious injury; and

(6) submission of residency requirements that could result in recipient eviction.

Group residential housing (c) Agreements may be terminated with or without cause by
either the county commissioner, the agency, or the provider with two calendar months prior
notice. The commissioner may immediately terminate an agreement under subdivision 2d.

Subd. 2c.

Crisis shelters Background study requirements.

Secure crisis shelters
for battered women and their children designated by the Minnesota Department of
Corrections are not group residences under this chapter (a) Effective July 1, 2016, a
provider of group residential housing or supplementary services must initiate background
studies in accordance with chapter 245C of the following individuals:

(1) controlling individuals as defined in section 245A.02;

(2) managerial officials as defined in section 245A.02; and

(3) all employees and volunteers of the establishment who have direct contact
with recipients, or who have unsupervised access to recipients, their personal property,
or their private data.

(b) The provider of group residential housing or supplementary services must
maintain compliance with all requirements established for entities initiating background
studies under chapter 245C.

(c) Effective July 1, 2017, a provider of group residential housing or supplementary
services must demonstrate that all individuals required to have a background study
according to paragraph (a) have a notice stating either that:

(1) the individual is not disqualified under section 245C.14; or

(2) the individual is disqualified, but the individual has been issued a set-aside of
the disqualification for that setting under section 245C.22.

Subd. 2d.

Conditions of payment; commissioner's right to suspend or terminate
agreement.

(a) Group residential housing or supplementary services must be provided
to the satisfaction of the commissioner, as determined at the sole discretion of the
commissioner's authorized representative, and in accordance with all applicable federal,
state, and local laws, ordinances, rules, and regulations, including business registration
requirements of the Office of the Secretary of State. A provider shall not receive payment
for services or housing found by the commissioner to be performed or provided in
violation of federal, state, or local law, ordinance, rule, or regulation.

(b) The commissioner has the right to suspend or terminate the agreement
immediately when the commissioner determines the health or welfare of the housing or
service recipients is endangered, or when the commissioner has reasonable cause to believe
that the provider has breached a material term of the agreement under subdivision 2b.

(c) Notwithstanding paragraph (b), if the commissioner learns of a curable material
breach of the agreement by the provider, the commissioner shall provide the provider
with a written notice of the breach and allow ten days to cure the breach. If the provider
does not cure the breach within the time allowed, the provider shall be in default of the
agreement and the commissioner may terminate the agreement immediately thereafter. If
the provider has breached a material term of the agreement and cure is not possible, the
commissioner may immediately terminate the agreement.

Subd. 2e.

Providers holding health or human services licenses.

(a) Except
for facilities with only a board and lodging license, when group residential housing or
supplementary service staff are also operating under a license issued by the Department of
Health or the Department of Human Services, the minimum staff qualification requirements
for the setting shall be the qualifications listed under the related licensing standards.

(b) A background study completed for the licensed service must also satisfy the
background study requirements under this section, if the provider has established the
background study contact person according to chapter 245C and as directed by the
Department of Human Services.

Subd. 2f.

Required services.

In licensed and registered settings under subdivision
2a, providers shall ensure that participants have at a minimum:

(1) food preparation and service for three nutritional meals a day on site;

(2) a bed, clothing storage, linen, bedding, laundering, and laundry supplies or
service;

(3) housekeeping, including cleaning and lavatory supplies or service; and

(4) maintenance and operation of the building and grounds, including heat, water,
garbage removal, electricity, telephone for the site, cooling, supplies, and parts and tools
to repair and maintain equipment and facilities.

Subd. 2g.

Crisis shelters.

Secure crisis shelters for battered women and their
children designated by the Minnesota Department of Corrections are not group residences
under this chapter.

Subd. 3.

Moratorium on development of group residential housing beds.

(a)
County Agencies shall not enter into agreements for new group residential housing beds
with total rates in excess of the MSA equivalent rate except:

(1) for group residential housing establishments licensed under Minnesota Rules,
parts 9525.0215 to 9525.0355, provided the facility is needed to meet the census reduction
targets for persons with developmental disabilities at regional treatment centers;

(2) up to 80 beds in a single, specialized facility located in Hennepin County that will
provide housing for chronic inebriates who are repetitive users of detoxification centers
and are refused placement in emergency shelters because of their state of intoxication,
and planning for the specialized facility must have been initiated before July 1, 1991,
in anticipation of receiving a grant from the Housing Finance Agency under section
462A.05, subdivision 20a, paragraph (b);

(3) notwithstanding the provisions of subdivision 2a, for up to 190 supportive
housing units in Anoka, Dakota, Hennepin, or Ramsey County for homeless adults with a
mental illness, a history of substance abuse, or human immunodeficiency virus or acquired
immunodeficiency syndrome. For purposes of this section, "homeless adult" means a
person who is living on the street or in a shelter or discharged from a regional treatment
center, community hospital, or residential treatment program and has no appropriate
housing available and lacks the resources and support necessary to access appropriate
housing. At least 70 percent of the supportive housing units must serve homeless adults
with mental illness, substance abuse problems, or human immunodeficiency virus or
acquired immunodeficiency syndrome who are about to be or, within the previous six
months, has been discharged from a regional treatment center, or a state-contracted
psychiatric bed in a community hospital, or a residential mental health or chemical
dependency treatment program. If a person meets the requirements of subdivision 1,
paragraph (a), and receives a federal or state housing subsidy, the group residential housing
rate for that person is limited to the supplementary rate under section 256I.05, subdivision
1a, and is determined by subtracting the amount of the person's countable income that
exceeds the MSA equivalent rate from the group residential housing supplementary rate.
A resident in a demonstration project site who no longer participates in the demonstration
program shall retain eligibility for a group residential housing payment in an amount
determined under section 256I.06, subdivision 8, using the MSA equivalent rate. Service
funding under section 256I.05, subdivision 1a, will end June 30, 1997, if federal matching
funds are available and the services can be provided through a managed care entity. If
federal matching funds are not available, then service funding will continue under section
256I.05, subdivision 1a;

(4) for an additional two beds, resulting in a total of 32 beds, for a facility located in
Hennepin County providing services for recovering and chemically dependent men that
has had a group residential housing contract with the county and has been licensed as a
board and lodge facility with special services since 1980;

(5) for a group residential housing provider located in the city of St. Cloud, or a county
contiguous to the city of St. Cloud, that operates a 40-bed facility, that received financing
through the Minnesota Housing Finance Agency Ending Long-Term Homelessness
Initiative and serves chemically dependent clientele, providing 24-hour-a-day supervision;

(6) for a new 65-bed facility in Crow Wing County that will serve chemically
dependent persons, operated by a group residential housing provider that currently
operates a 304-bed facility in Minneapolis, and a 44-bed facility in Duluth;

(7) for a group residential housing provider that operates two ten-bed facilities, one
located in Hennepin County and one located in Ramsey County, that provide community
support and 24-hour-a-day supervision to serve the mental health needs of individuals
who have chronically lived unsheltered; and

(8) for a group residential facility in Hennepin County with a capacity of up to 48
beds that has been licensed since 1978 as a board and lodging facility and that until August
1, 2007, operated as a licensed chemical dependency treatment program.

(b) A county An agency may enter into a group residential housing agreement for
beds with rates in excess of the MSA equivalent rate in addition to those currently covered
under a group residential housing agreement if the additional beds are only a replacement
of beds with rates in excess of the MSA equivalent rate which have been made available
due to closure of a setting, a change of licensure or certification which removes the beds
from group residential housing payment, or as a result of the downsizing of a group
residential housing setting. The transfer of available beds from one county agency to
another can only occur by the agreement of both counties agencies.

Subd. 4.

Rental assistance.

For participants in the Minnesota supportive housing
demonstration program under subdivision 3, paragraph (a), clause (5), notwithstanding
the provisions of section 256I.06, subdivision 8, the amount of the group residential
housing payment for room and board must be calculated by subtracting 30 percent of the
recipient's adjusted income as defined by the United States Department of Housing and
Urban Development for the Section 8 program from the fair market rent established for the
recipient's living unit by the federal Department of Housing and Urban Development. This
payment shall be regarded as a state housing subsidy for the purposes of subdivision 3.
Notwithstanding the provisions of section 256I.06, subdivision 6, the recipient's countable
income will only be adjusted when a change of greater than $100 in a month occurs or
upon annual redetermination of eligibility, whichever is sooner. The commissioner is
directed to study the feasibility of developing a rental assistance program to serve persons
traditionally served in group residential housing settings and report to the legislature by
February 15, 1999.

EFFECTIVE DATE.

Subdivision 1, paragraph (b), is effective September 1, 2015.

Sec. 25.

Minnesota Statutes 2014, section 256I.05, subdivision 1c, is amended to read:

Subd. 1c.

Rate increases.

A county An agency may not increase the rates
negotiated for group residential housing above those in effect on June 30, 1993, except as
provided in paragraphs (a) to (f).

(a) A county An agency may increase the rates for group residential housing settings
to the MSA equivalent rate for those settings whose current rate is below the MSA
equivalent rate.

(b) A county An agency may increase the rates for residents in adult foster care
whose difficulty of care has increased. The total group residential housing rate for these
residents must not exceed the maximum rate specified in subdivisions 1 and 1a. County
Agencies must not include nor increase group residential housing difficulty of care rates
for adults in foster care whose difficulty of care is eligible for funding by home and
community-based waiver programs under title XIX of the Social Security Act.

(c) The room and board rates will be increased each year when the MSA equivalent
rate is adjusted for SSI cost-of-living increases by the amount of the annual SSI increase,
less the amount of the increase in the medical assistance personal needs allowance under
section 256B.35.

(d) When a group residential housing rate is used to pay for an individual's room
and board, or other costs necessary to provide room and board, the rate payable to
the residence must continue for up to 18 calendar days per incident that the person is
temporarily absent from the residence, not to exceed 60 days in a calendar year, if the
absence or absences have received the prior approval of the county agency's social service
staff. Prior approval is not required for emergency absences due to crisis, illness, or injury.

(e) For facilities meeting substantial change criteria within the prior year. Substantial
change criteria exists if the group residential housing establishment experiences a 25
percent increase or decrease in the total number of its beds, if the net cost of capital
additions or improvements is in excess of 15 percent of the current market value of the
residence, or if the residence physically moves, or changes its licensure, and incurs a
resulting increase in operation and property costs.

(f) Until June 30, 1994, a county an agency may increase by up to five percent the
total rate paid for recipients of assistance under sections 256D.01 to 256D.21 or 256D.33
to 256D.54 who reside in residences that are licensed by the commissioner of health as
a boarding care home, but are not certified for the purposes of the medical assistance
program. However, an increase under this clause must not exceed an amount equivalent to
65 percent of the 1991 medical assistance reimbursement rate for nursing home resident
class A, in the geographic grouping in which the facility is located, as established under
Minnesota Rules, parts 9549.0050 to 9549.0058.

Sec. 26.

Minnesota Statutes 2014, section 256I.05, subdivision 1g, is amended to read:

Subd. 1g.

Supplementary service rate for certain facilities.

On or after July 1,
2005, a county An agency may negotiate a supplementary service rate for recipients of
assistance under section 256I.04, subdivision 1, paragraph (a) or (b), who relocate from a
homeless shelter licensed and registered prior to December 31, 1996, by the Minnesota
Department of Health under section 157.17, to have experienced long-term homelessness
and who live in a supportive housing establishment developed and funded in whole or in
part with funds provided specifically as part of the plan to end long-term homelessness
required under Laws 2003, chapter 128, article 15, section 9, not to exceed $456.75 under
section 256I.04, subdivision 2a, paragraph (b), clause (2).

Sec. 27.

Minnesota Statutes 2014, section 256I.06, subdivision 2, is amended to read:

Subd. 2.

Time of payment.

A county agency may make payments to a group
residence in advance for an individual whose stay in the group residence is expected
to last beyond the calendar month for which the payment is made and who does not
expect to receive countable earned income during the month for which the payment is
made. Group residential housing payments made by a county agency on behalf of an
individual who is not expected to remain in the group residence beyond the month for
which payment is made must be made subsequent to the individual's departure from the
group residence. Group residential housing payments made by a county agency on behalf
of an individual with countable earned income must be made subsequent to receipt of a
monthly household report form.

EFFECTIVE DATE.

This section is effective April 1, 2016.

Sec. 28.

Minnesota Statutes 2014, section 256I.06, subdivision 6, is amended to read:

Subd. 6.

Reports.

Recipients must report changes in circumstances that affect
eligibility or group residential housing payment amounts, other than changes in earned
income, within ten days of the change. Recipients with countable earned income must
complete a monthly household report form at least once every six months. If the report
form is not received before the end of the month in which it is due, the county agency
must terminate eligibility for group residential housing payments. The termination shall
be effective on the first day of the month following the month in which the report was due.
If a complete report is received within the month eligibility was terminated, the individual
is considered to have continued an application for group residential housing payment
effective the first day of the month the eligibility was terminated.

EFFECTIVE DATE.

This section is effective April 1, 2016.

Sec. 29.

Minnesota Statutes 2014, section 256I.06, subdivision 7, is amended to read:

Subd. 7.

Determination of rates.

The agency in the county in which a group
residence is located will shall determine the amount of group residential housing rate to
be paid on behalf of an individual in the group residence regardless of the individual's
county agency of financial responsibility.

Sec. 30.

Minnesota Statutes 2014, section 256I.06, subdivision 8, is amended to read:

Subd. 8.

Amount of group residential housing payment.

(a) The amount of
a group residential housing payment to be made on behalf of an eligible individual is
determined by subtracting the individual's countable income under section 256I.04,
subdivision 1, for a whole calendar month from the group residential housing charge for
that same month. The group residential housing charge is determined by multiplying the
group residential housing rate times the period of time the individual was a resident or
temporarily absent under section 256I.05, subdivision 1c, paragraph (d).

(b) For an individual with earned income under paragraph (a), prospective budgeting
must be used to determine the amount of the individual's payment for the following
six-month period. An increase in income shall not affect an individual's eligibility or
payment amount until the month following the reporting month. A decrease in income shall
be effective the first day of the month after the month in which the decrease is reported.

EFFECTIVE DATE.

Paragraph (b) is effective April 1, 2016.

Sec. 31.

Minnesota Statutes 2014, section 256J.24, subdivision 5, is amended to read:

Subd. 5.

MFIP transitional standard.

(a) The MFIP transitional standard is based
on the number of persons in the assistance unit eligible for both food and cash assistance.
The amount of the transitional standard is published annually by the Department of
Human Services.

(b) The commissioner shall increase the cash assistance portion of the transitional
standard under paragraph (a) by $100.

EFFECTIVE DATE.

This section is effective October 1, 2015.

Sec. 32.

Minnesota Statutes 2014, section 256J.24, subdivision 5a, is amended to read:

Subd. 5a.

Food portion of MFIP transitional standard.

The commissioner shall
adjust the food portion of the MFIP transitional standard as needed to reflect adjustments
to the Supplemental Nutrition Assistance Program and maintain compliance with federal
waivers related to the Supplemental Nutrition Assistance Program under the United States
Department of Agriculture. The commissioner shall publish the transitional standard
including a breakdown of the cash and food portions for an assistance unit of sizes one to
ten in the State Register whenever an adjustment is made.

Sec. 33.

Minnesota Statutes 2014, section 256K.45, subdivision 1a, is amended to read:

Subd. 1a.

Definitions.

(a) The definitions in this subdivision apply to this section.

(b) "Commissioner" means the commissioner of human services.

(c) "Homeless youth" means a person 21 24 years of age or younger who is
unaccompanied by a parent or guardian and is without shelter where appropriate care and
supervision are available, whose parent or legal guardian is unable or unwilling to provide
shelter and care, or who lacks a fixed, regular, and adequate nighttime residence. The
following are not fixed, regular, or adequate nighttime residences:

(1) a supervised publicly or privately operated shelter designed to provide temporary
living accommodations;

(2) an institution or a publicly or privately operated shelter designed to provide
temporary living accommodations;

(3) transitional housing;

(4) a temporary placement with a peer, friend, or family member that has not offered
permanent residence, a residential lease, or temporary lodging for more than 30 days; or

(5) a public or private place not designed for, nor ordinarily used as, a regular
sleeping accommodation for human beings.

Homeless youth does not include persons incarcerated or otherwise detained under
federal or state law.

(d) "Youth at risk of homelessness" means a person 21 24 years of age or younger
whose status or circumstances indicate a significant danger of experiencing homelessness
in the near future. Status or circumstances that indicate a significant danger may include:
(1) youth exiting out-of-home placements; (2) youth who previously were homeless; (3)
youth whose parents or primary caregivers are or were previously homeless; (4) youth
who are exposed to abuse and neglect in their homes; (5) youth who experience conflict
with parents due to chemical or alcohol dependency, mental health disabilities, or other
disabilities; and (6) runaways.

(e) "Runaway" means an unmarried child under the age of 18 years who is absent
from the home of a parent or guardian or other lawful placement without the consent of
the parent, guardian, or lawful custodian.

Sec. 34.

Minnesota Statutes 2014, section 256K.45, subdivision 6, is amended to read:

Subd. 6.

Funding.

Funds appropriated for this section may be expended on
programs described under subdivisions 3 to 5, technical assistance, and capacity building
to meet the greatest need on a statewide basis. The commissioner will provide outreach,
technical assistance, and program development support to increase capacity to new and
existing service providers to better meet needs statewide, particularly in areas where
services for homeless youth have not been established, especially in greater Minnesota.

Sec. 35.

[256M.41] CHILD PROTECTION GRANT ALLOCATION TO
ADDRESS STAFFING.

Subdivision 1.

Formula for county staffing funds.

(a) The commissioner shall
allocate state funds appropriated under this section to each county board on a calendar
year basis in an amount determined according to the following formula:

(1) 50 percent must be distributed on the basis of the child population residing in the
county as determined by the most recent data of the state demographer;

(2) 25 percent must be distributed on the basis of the number of screened-in
reports of child maltreatment under sections 626.556 and 626.5561, and in the county as
determined by the most recent data of the commissioner; and

(3) 25 percent must be distributed on the basis of the number of open child
protection case management cases in the county as determined by the most recent data of
the commissioner.

(b) Notwithstanding this subdivision, no county shall be awarded an allocation of
less than $75,000.

Subd. 2.

Prohibition on supplanting existing funds.

Funds received under this
section must be used to address staffing for child protection or expand child protection
services. Funds must not be used to supplant current county expenditures for these
purposes.

Subd. 3.

Payments based on performance.

(a) The commissioner shall make
payments under this section to each county board on a calendar year basis in an amount
determined under paragraph (b).

(b) Calendar year allocations under subdivision 1 shall be paid to counties in the
following manner:

(1) 80 percent of the allocation as determined in subdivision 1 must be paid to
counties on or before July 10 of each year;

(2) ten percent of the allocation shall be withheld until the commissioner determines
if the county has met the performance outcome threshold of 90 percent based on
face-to-face contact with alleged child victims. In order to receive the performance
allocation, the county child protection workers must have a timely face-to-face contact
with at least 90 percent of all alleged child victims of screened-in maltreatment reports.
The standard requires that each initial face-to-face contact occur consistent with timelines
defined in section 626.556, subdivision 10, paragraph (i). The commissioner shall make
threshold determinations in January of each year and payments to counties meeting the
performance outcome threshold shall occur in February of each year. Any withheld funds
from this appropriation for counties that do not meet this requirement shall be reallocated
by the commissioner to those counties meeting the requirement; and

(3) ten percent of the allocation shall be withheld until the commissioner determines
that the county has met the performance outcome threshold of 90 percent based on
face-to-face visits by the case manager. In order to receive the performance allocation, the
total number of visits made by caseworkers on a monthly basis to children in foster care
and children receiving child protection services while residing in their home must be at
least 90 percent of the total number of such visits that would occur if every child were
visited once per month. The commissioner shall make such determinations in January
of each year and payments to counties meeting the performance outcome threshold
shall occur in February of each year. Any withheld funds from this appropriation for
counties that do not meet this requirement shall be reallocated by the commissioner to
those counties meeting the requirement.

(c) The commissioner shall work with stakeholders and the Human Services
Performance Council under section 402A.16 to develop recommendations for specific
outcome measures that counties should meet in order to receive funds withheld under
paragraph (b), and include in those recommendations a determination as to whether
the performance measures under paragraph (b) should be modified or phased out. The
commissioner shall report the recommendations to the legislative committees having
jurisdiction over child protection issues by January 1, 2018.

Sec. 36.

[256M.42] CHILD PROTECTION GRANT ALLOCATION FOR
COUNTY SERVICES.

Subdivision 1.

Formula.

(a) The commissioner shall allocate state funds
appropriated under this section to each county board on a calendar year basis in an amount
determined according to the following formula:

(1) 50 percent must be distributed on the basis of the child population residing in the
county as determined by the most recent data of the state demographer;

(2) 25 percent must be distributed on the basis of the number of screened-in
reports of child maltreatment under sections 626.556 and 626.5561, and in the county as
determined by the most recent data of the commissioner; and

(3) 25 percent must be distributed on the basis of the number of open child
protection case management cases in the county as determined by the most recent data of
the commissioner.

(b) Notwithstanding paragraph (a), no county shall be awarded an allocation of
less than $10,000.

Subd. 2.

Supplantation of existing funds.

Funds received by counties under this
section must be used for additional child protection services and must not be used to
supplant current county expenditures for these purposes.

Subd. 3.

Eligible services.

(a) Funds received under this section must be used
for additional child protection services to support children and their families who have
been identified to the child welfare system through the intake process. Examples of
eligible services include, but are not limited to: family-based counseling; family-based
life management; individual counseling; group counseling; family group decision-making;
parent support outreach; family-based crisis; family assessment response; concurrent
permanency planning; social and recreational; home-based support; homemaking; respite
care; legal; court-related; transportation; health-related; mental health screening; and
interpreter services.

(b) Funds may also be used for prioritized services in child care, Head Start, Early
Head Start, or home visiting for children in the child protection system to remove these
children from waiting lists in these programs.

(c) Services provided under this section shall be culturally affirming in access and
delivery for the recipient.

(d) The commissioner shall instruct counties on the eligible services and procedures
for claiming reimbursement.

Subd. 4.

American Indian child welfare projects.

Of the amount appropriated
under this section, $75,000 shall be awarded to each tribe authorized under section 256.01,
subdivision 14b, to address child protection staffing and services.

Sec. 37.

Minnesota Statutes 2014, section 256N.22, subdivision 9, is amended to read:

Subd. 9.

Death or incapacity of relative custodian or dissolution modification
of custody.

The Northstar kinship assistance agreement ends upon death or dissolution
incapacity of the relative custodian or modification of the order for permanent legal and
physical custody of both relative custodians in the case of assignment of custody to two
individuals, or the sole relative custodian in the case of assignment of custody to one
individual in which legal or physical custody is removed from the relative custodian.
In the case of a relative custodian's death or incapacity, Northstar kinship assistance
eligibility may be continued according to subdivision 10.

Sec. 38.

Minnesota Statutes 2014, section 256N.22, subdivision 10, is amended to read:

Subd. 10.

Assigning a successor relative custodian for a child's Northstar
kinship assistance to a court-appointed guardian or custodian.

(a) Northstar kinship
assistance may be continued with the written consent of the commissioner to In the event
of the death or incapacity of the relative custodian, eligibility for Northstar kinship
assistance and title IV-E assistance, if applicable, is not affected if the relative custodian
is replaced by a successor named in the Northstar kinship assistance benefit agreement.
Northstar kinship assistance shall be paid to a named successor who is not the child's legal
parent, biological parent or stepparent, or other adult living in the home of the legal parent,
biological parent, or stepparent.

(b) In order to receive Northstar kinship assistance, a named successor must:

(1) meet the background study requirements in subdivision 4;

(2) renegotiate the agreement consistent with section 256N.25, subdivision 2,
including cooperating with an assessment under section 256N.24;

(3) be ordered by the court to be the child's legal relative custodian in a modification
proceeding under section 260C.521, subdivision 2; and

(4) satisfy the requirements in this paragraph within one year of the relative
custodian's death or incapacity unless the commissioner certifies that the named successor
made reasonable attempts to satisfy the requirements within one year and failure to satisfy
the requirements was not the responsibility of the named successor.

(c) Payment of Northstar kinship assistance to the successor guardian may be
temporarily approved through the policies, procedures, requirements, and deadlines under
section 256N.28, subdivision 2. Ongoing payment shall begin in the month when all the
requirements in paragraph (b) are satisfied.

(d) Continued payment of Northstar kinship assistance may occur in the event of the
death or incapacity of the relative custodian when no successor has been named in the
benefit agreement when the commissioner gives written consent to an individual who is a
guardian or custodian appointed by a court for the child upon the death of both relative
custodians in the case of assignment of custody to two individuals, or the sole relative
custodian in the case of assignment of custody to one individual, unless the child is under
the custody of a county, tribal, or child-placing agency.

(b) (e) Temporary assignment of Northstar kinship assistance may be approved
for a maximum of six consecutive months from the death or incapacity of the relative
custodian or custodians as provided in paragraph (a) and must adhere to the policies and,
procedures, requirements, and deadlines under section 256N.28, subdivision 2, that are
prescribed by the commissioner. If a court has not appointed a permanent legal guardian
or custodian within six months, the Northstar kinship assistance must terminate and must
not be resumed.

(c) (f) Upon assignment of assistance payments under this subdivision paragraphs
(d) and (e), assistance must be provided from funds other than title IV-E.

Sec. 39.

Minnesota Statutes 2014, section 256N.24, subdivision 4, is amended to read:

Subd. 4.

Extraordinary levels.

(a) The assessment tool established under
subdivision 2 must provide a mechanism through which up to five levels can be added
to the supplemental difficulty of care for a particular child under section 256N.26,
subdivision 4. In establishing the assessment tool, the commissioner must design the tool
so that the levels applicable to the portions of the assessment other than the extraordinary
levels can accommodate the requirements of this subdivision.

(b) These extraordinary levels are available when all of the following circumstances
apply:

(1) the child has extraordinary needs as determined by the assessment tool provided
for under subdivision 2, and the child meets other requirements established by the
commissioner, such as a minimum score on the assessment tool;

(2) the child's extraordinary needs require extraordinary care and intense supervision
that is provided by the child's caregiver as part of the parental duties as described in the
supplemental difficulty of care rate, section 256N.02, subdivision 21. This extraordinary
care provided by the caregiver is required so that the child can be safely cared for in the
home and community, and prevents residential placement;

(3) the child is physically living in a foster family setting, as defined in Minnesota
Rules, part 2960.3010, subpart 23, in a foster residence setting, or physically living in the
home with the adoptive parent or relative custodian; and

(4) the child is receiving the services for which the child is eligible through medical
assistance programs or other programs that provide necessary services for children with
disabilities or other medical and behavioral conditions to live with the child's family, but
the agency with caregiver's input has identified a specific support gap that cannot be met
through home and community support waivers or other programs that are designed to
provide support for children with special needs.

(c) The agency completing an assessment, under subdivision 2, that suggests an
extraordinary level must document as part of the assessment, the following:

(1) the assessment tool that determined that the child's needs or disabilities require
extraordinary care and intense supervision;

(2) a summary of the extraordinary care and intense supervision that is provided by
the caregiver as part of the parental duties as described in the supplemental difficulty of
care rate, section 256N.02, subdivision 21;

(3) confirmation that the child is currently physically residing in the foster family
setting or in the home with the adoptive parent or relative custodian;

(4) the efforts of the agency, caregiver, parents, and others to request support services
in the home and community that would ease the degree of parental duties provided by the
caregiver for the care and supervision of the child. This would include documentation of
the services provided for the child's needs or disabilities, and the services that were denied
or not available from the local social service agency, community agency, the local school
district, local public health department, the parent, or child's medical insurance provider;

(5) the specific support gap identified that places the child's safety and well-being at
risk in the home or community and is necessary to prevent residential placement; and

(6) the extraordinary care and intense supervision provided by the foster, adoptive,
or guardianship caregivers to maintain the child safely in the child's home and prevent
residential placement that cannot be supported by medical assistance or other programs
that provide services, necessary care for children with disabilities, or other medical or
behavioral conditions in the home or community.

(d) An agency completing an assessment under subdivision 2 that suggests
an extraordinary level is appropriate must forward the assessment and required
documentation to the commissioner. If the commissioner approves, the extraordinary
levels must be retroactive to the date the assessment was forwarded.

Sec. 40.

Minnesota Statutes 2014, section 256N.25, subdivision 1, is amended to read:

Subdivision 1.

Agreement; Northstar kinship assistance; adoption assistance.

(a)
In order to receive Northstar kinship assistance or adoption assistance benefits on behalf
of an eligible child, a written, binding agreement between the caregiver or caregivers,
the financially responsible agency, or, if there is no financially responsible agency, the
agency designated by the commissioner, and the commissioner must be established prior
to finalization of the adoption or a transfer of permanent legal and physical custody. The
agreement must be negotiated with the caregiver or caregivers under subdivision 2 and
renegotiated under subdivision 3, if applicable.

(b) The agreement must be on a form approved by the commissioner and must
specify the following:

(1) duration of the agreement;

(2) the nature and amount of any payment, services, and assistance to be provided
under such agreement;

(3) the child's eligibility for Medicaid services;

(4) the terms of the payment, including any child care portion as specified in section
256N.24, subdivision 3;

(5) eligibility for reimbursement of nonrecurring expenses associated with adopting
or obtaining permanent legal and physical custody of the child, to the extent that the
total cost does not exceed $2,000 per child;

(6) that the agreement must remain in effect regardless of the state of which the
adoptive parents or relative custodians are residents at any given time;

(7) provisions for modification of the terms of the agreement, including renegotiation
of the agreement; and

(8) the effective date of the agreement; and

(9) the successor relative custodian or custodians for Northstar kinship assistance,
when applicable. The successor relative custodian or custodians may be added or changed
by mutual agreement under subdivision 3.

(c) The caregivers, the commissioner, and the financially responsible agency, or, if
there is no financially responsible agency, the agency designated by the commissioner, must
sign the agreement. A copy of the signed agreement must be given to each party. Once
signed by all parties, the commissioner shall maintain the official record of the agreement.

(d) The effective date of the Northstar kinship assistance agreement must be the date
of the court order that transfers permanent legal and physical custody to the relative. The
effective date of the adoption assistance agreement is the date of the finalized adoption
decree.

(e) Termination or disruption of the preadoptive placement or the foster care
placement prior to assignment of custody makes the agreement with that caregiver void.

Sec. 41.

Minnesota Statutes 2014, section 256N.27, subdivision 2, is amended to read:

Subd. 2.

State share.

The commissioner shall pay the state share of the maintenance
payments as determined under subdivision 4, and an identical share of the pre-Northstar
Care foster care program under section 260C.4411, subdivision 1, the relative custody
assistance program under section 257.85, and the pre-Northstar Care for Children adoption
assistance program under chapter 259A. The commissioner may transfer funds into the
account if a deficit occurs.

Sec. 42.

Minnesota Statutes 2014, section 257.0755, subdivision 1, is amended to read:

Subdivision 1.

Creation.

Each ombudsperson shall operate independently from but
in collaboration with the community-specific board that appointed the ombudsperson under
section 257.0768: the Indian Affairs Council, the Council on Affairs of Chicano/Latino
people, the Council on Black Minnesotans, and the Council on Asian-Pacific Minnesotans
The Office of Ombudspersons is organized under the Department of Human Services.

Sec. 43.

Minnesota Statutes 2014, section 257.0755, subdivision 2, is amended to read:

Subd. 2.

Selection; qualifications.

The ombudsperson for each community
shall be selected by the applicable community-specific board established in section
257.0768 appointed by the governor. Each ombudsperson serves in the unclassified
service at the pleasure of the community-specific board governor and may be removed
only for just cause. Each ombudsperson must be selected without regard to political
affiliation, and shall be a person highly competent and qualified to analyze questions of
law, administration, and public policy regarding the protection and placement of children
from families of color. In addition, the ombudsperson must be experienced in dealing with
communities of color and knowledgeable about the needs of those communities. No
individual may serve as ombudsperson while holding any other public office.

Sec. 44.

Minnesota Statutes 2014, section 257.0761, subdivision 1, is amended to read:

Subdivision 1.

Staff; unclassified status; retirement.

The ombudsperson for each
group community of color specified in section 257.0755 257.076 may select, appoint, and
compensate out of available funds the assistants and employees as deemed necessary to
discharge responsibilities. All employees, except the secretarial and clerical staff, shall
serve at the pleasure of the ombudsperson in the unclassified service. The ombudsperson
and full-time staff shall be members of the Minnesota State Retirement Association.

Sec. 45.

Minnesota Statutes 2014, section 257.0766, subdivision 1, is amended to read:

Subdivision 1.

Specific reports.

An ombudsperson may send conclusions and
suggestions concerning any matter reviewed to the governor and shall provide copies of all
reports to the advisory board and to the groups specified in section 257.0768, subdivision
1. Before making public a conclusion or recommendation that expressly or implicitly
criticizes an agency, facility, program, or any person, the ombudsperson shall inform the
governor and the affected agency, facility, program, or person concerning the conclusion
or recommendation. When sending a conclusion or recommendation to the governor that
is adverse to an agency, facility, program, or any person, the ombudsperson shall include
any statement of reasonable length made by that agency, facility, program, or person in
defense or mitigation of the ombudsperson's conclusion or recommendation.

Sec. 46.

Minnesota Statutes 2014, section 257.0769, subdivision 1, is amended to read:

Subdivision 1.

Appropriations.

(a) Money is appropriated from in the special fund
authorized by section 256.01, subdivision 2, paragraph (o), to the Indian Affairs Council
may be used for the purposes of sections 257.0755 to 257.0768.

(b) Money is appropriated from the special fund authorized by section 256.01,
subdivision 2, paragraph (o), to the council on affairs of Chicano/Latino people for the
purposes of sections 257.0755 to 257.0768.

(c) Money is appropriated from the special fund authorized by section 256.01,
subdivision 2, paragraph (o), to the Council of Black Minnesotans for the purposes of
sections 257.0755 to 257.0768.

(d) Money is appropriated from the special fund authorized by section 256.01,
subdivision 2, paragraph (o), to the Council on Asian-Pacific Minnesotans for the purposes
of sections 257.0755 to 257.0768.

Sec. 47.

Minnesota Statutes 2014, section 257.75, subdivision 3, is amended to read:

Subd. 3.

Effect of recognition.

(a) Subject to subdivision 2 and section 257.55,
subdivision 1, paragraph (g) or (h), the recognition has the force and effect of a judgment or
order determining the existence of the parent and child relationship under section 257.66. If
the conditions in section 257.55, subdivision 1, paragraph (g) or (h), exist, the recognition
creates only a presumption of paternity for purposes of sections 257.51 to 257.74. Once a
recognition has been properly executed and filed with the state registrar of vital statistics,
if there are no competing presumptions of paternity, a judicial or administrative court may
not allow further action to determine parentage regarding the signator of the recognition.
An action to determine custody and parenting time may be commenced pursuant to
chapter 518 without an adjudication of parentage. Until an a temporary or permanent
order is entered granting custody to another, the mother has sole custody.

(b) Following commencement of an action to determine custody or parenting time
under chapter 518, the court may, pursuant to section 518.131, grant temporary parenting
time rights and temporary custody to either parent.

(c) The recognition is:

(1) a basis for bringing an action for the following:

(i) to award temporary custody or parenting time pursuant to section 518.131;

(ii) to award permanent custody or parenting time to either parent,;

(iii) establishing a child support obligation which may include up to the two years
immediately preceding the commencement of the action,;

(iv) ordering a contribution by a parent under section 256.87, or;

(v) ordering a contribution to the reasonable expenses of the mother's pregnancy and
confinement, as provided under section 257.66, subdivision 3,; or

(vi) ordering reimbursement for the costs of blood or genetic testing, as provided
under section 257.69, subdivision 2;

(2) determinative for all other purposes related to the existence of the parent and
child relationship; and

(3) entitled to full faith and credit in other jurisdictions.

EFFECTIVE DATE.

This section is effective March 1, 2016.

Sec. 48.

Minnesota Statutes 2014, section 257.75, subdivision 5, is amended to read:

Subd. 5.

Recognition form.

(a) The commissioner of human services shall prepare
a form for the recognition of parentage under this section. In preparing the form, the
commissioner shall consult with the individuals specified in subdivision 6. The recognition
form must be drafted so that the force and effect of the recognition, the alternatives to
executing a recognition, and the benefits and responsibilities of establishing paternity, and
the limitations of the recognition of parentage for purposes of exercising and enforcing
custody or parenting time are clear and understandable. The form must include a notice
regarding the finality of a recognition and the revocation procedure under subdivision
2. The form must include a provision for each parent to verify that the parent has read
or viewed the educational materials prepared by the commissioner of human services
describing the recognition of paternity. The individual providing the form to the parents
for execution shall provide oral notice of the rights, responsibilities, and alternatives to
executing the recognition. Notice may be provided by audiotape, videotape, or similar
means. Each parent must receive a copy of the recognition.

(b) The form must include the following:

(1) a notice regarding the finality of a recognition and the revocation procedure
under subdivision 2;

(2) a notice, in large print, that the recognition does not establish an enforceable right
to legal custody, physical custody, or parenting time until such rights are awarded pursuant
to a court action to establish custody and parenting time;

(3) a notice stating that when a court awards custody and parenting time under
chapter 518, there is no presumption for or against joint physical custody, except when
domestic abuse, as defined in section 518B.01, subdivision 2, paragraph (a), has occurred
between the parties;

(4) a notice that the recognition of parentage is a basis for:

(i) bringing a court action to award temporary or permanent custody or parenting time;

(ii) establishing a child support obligation that may include the two years
immediately preceding the commencement of the action;

(iii) ordering a contribution by a parent under section 256.87;

(iv) ordering a contribution to the reasonable expenses of the mother's pregnancy
and confinement, as provided under section 257.66, subdivision 3; and

(v) ordering reimbursement for the costs of blood or genetic testing, as provided
under section 257.69, subdivision 2; and

(5) a provision for each parent to verify that the parent has read or viewed the
educational materials prepared by the commissioner of human services describing the
recognition of paternity.

(c) The individual providing the form to the parents for execution shall provide oral
notice of the rights, responsibilities, and alternatives to executing the recognition. Notice
may be provided in audio or video format, or by other similar means. Each parent must
receive a copy of the recognition.

EFFECTIVE DATE.

This section is effective March 1, 2016.

Sec. 49.

Minnesota Statutes 2014, section 259A.75, is amended to read:

259A.75 REIMBURSEMENT OF CERTAIN AGENCY COSTS; PURCHASE
OF SERVICE CONTRACTS AND TRIBAL CUSTOMARY ADOPTIONS.

Subdivision 1.

General information.

(a) Subject to the procedures required by
the commissioner and the provisions of this section, a Minnesota county or tribal social
services agency shall receive a reimbursement from the commissioner equal to 100 percent
of the reasonable and appropriate cost for contracted adoption placement services identified
for a specific child that are not reimbursed under other federal or state funding sources.

(b) The commissioner may spend up to $16,000 for each purchase of service
contract. Only one contract per child per adoptive placement is permitted. Funds
encumbered and obligated under the contract for the child remain available until the terms
of the contract are fulfilled or the contract is terminated.

(c) The commissioner shall set aside an amount not to exceed five percent of the
total amount of the fiscal year appropriation from the state for the adoption assistance
program to reimburse a Minnesota county or tribal social services placing agencies agency
for child-specific adoption placement services. When adoption assistance payments for
children's needs exceed 95 percent of the total amount of the fiscal year appropriation from
the state for the adoption assistance program, the amount of reimbursement available to
placing agencies for adoption services is reduced correspondingly.

Subd. 2.

Purchase of service contract child eligibility criteria.

(a) A child who is
the subject of a purchase of service contract must:

(1) have the goal of adoption, which may include an adoption in accordance with
tribal law;

(2) be under the guardianship of the commissioner of human services or be a ward of
tribal court pursuant to section 260.755, subdivision 20; and

(3) meet all of the special needs criteria according to section 259A.10, subdivision 2.

(b) A child under the guardianship of the commissioner must have an identified
adoptive parent and a fully executed adoption placement agreement according to section
260C.613, subdivision 1, paragraph (a).

Subd. 3.

Agency eligibility criteria.

(a) A Minnesota county or tribal social
services agency shall receive reimbursement for child-specific adoption placement
services for an eligible child that it purchases from a private adoption agency licensed in
Minnesota or any other state or tribal social services agency.

(b) Reimbursement for adoption services is available only for services provided
prior to the date of the adoption decree.

Subd. 4.

Application and eligibility determination.

(a) A county or tribal social
services agency may request reimbursement of costs for adoption placement services by
submitting a complete purchase of service application, according to the requirements and
procedures and on forms prescribed by the commissioner.

(b) The commissioner shall determine eligibility for reimbursement of adoption
placement services. If determined eligible, the commissioner of human services shall
sign the purchase of service agreement, making this a fully executed contract. No
reimbursement under this section shall be made to an agency for services provided prior to
the fully executed contract.

(c) Separate purchase of service agreements shall be made, and separate records
maintained, on each child. Only one agreement per child per adoptive placement is
permitted. For siblings who are placed together, services shall be planned and provided to
best maximize efficiency of the contracted hours.

Subd. 5.

Reimbursement process.

(a) The agency providing adoption services is
responsible to track and record all service activity, including billable hours, on a form
prescribed by the commissioner. The agency shall submit this form to the state for
reimbursement after services have been completed.

(b) The commissioner shall make the final determination whether or not the
requested reimbursement costs are reasonable and appropriate and if the services have
been completed according to the terms of the purchase of service agreement.

Subd. 6.

Retention of purchase of service records.

Agencies entering into
purchase of service contracts shall keep a copy of the agreements, service records, and all
applicable billing and invoicing according to the department's record retention schedule.
Agency records shall be provided upon request by the commissioner.

Subd. 7.

Tribal customary adoptions.

(a) The commissioner shall enter into
grant contracts with Minnesota tribal social services agencies to provide child-specific
recruitment and adoption placement services for Indian children under the jurisdiction
of tribal court.

(b) Children served under these grant contracts must meet the child eligibility
criteria in subdivision 2.

Sec. 50.

Minnesota Statutes 2014, section 260C.007, subdivision 27, is amended to read:

Subd. 27.

Relative.

"Relative" means a person related to the child by blood,
marriage, or adoption,; the legal parent, guardian, or custodian of the child's siblings; or an
individual who is an important friend with whom the child has resided or had significant
contact. For an Indian child, relative includes members of the extended family as defined
by the law or custom of the Indian child's tribe or, in the absence of law or custom, nieces,
nephews, or first or second cousins, as provided in the Indian Child Welfare Act of 1978,
United States Code, title 25, section 1903.

Sec. 51.

Minnesota Statutes 2014, section 260C.007, subdivision 32, is amended to read:

Subd. 32.

Sibling.

"Sibling" means one of two or more individuals who have one or
both parents in common through blood, marriage, or adoption, including. This includes
siblings as defined by the child's tribal code or custom. Sibling also includes an individual
who would have been considered a sibling but for a termination of parental rights of one
or both parents, suspension of parental rights under tribal code, or other disruption of
parental rights such as the death of a parent.

Sec. 52.

Minnesota Statutes 2014, section 260C.203, is amended to read:

260C.203 ADMINISTRATIVE OR COURT REVIEW OF PLACEMENTS.

(a) Unless the court is conducting the reviews required under section 260C.202,
there shall be an administrative review of the out-of-home placement plan of each child
placed in foster care no later than 180 days after the initial placement of the child in foster
care and at least every six months thereafter if the child is not returned to the home of the
parent or parents within that time. The out-of-home placement plan must be monitored and
updated at each administrative review. The administrative review shall be conducted by
the responsible social services agency using a panel of appropriate persons at least one of
whom is not responsible for the case management of, or the delivery of services to, either
the child or the parents who are the subject of the review. The administrative review shall
be open to participation by the parent or guardian of the child and the child, as appropriate.

(b) As an alternative to the administrative review required in paragraph (a), the court
may, as part of any hearing required under the Minnesota Rules of Juvenile Protection
Procedure, conduct a hearing to monitor and update the out-of-home placement plan
pursuant to the procedure and standard in section 260C.201, subdivision 6, paragraph
(d). The party requesting review of the out-of-home placement plan shall give parties to
the proceeding notice of the request to review and update the out-of-home placement
plan. A court review conducted pursuant to section 260C.141, subdivision 2; 260C.193;
260C.201, subdivision 1; 260C.202; 260C.204; 260C.317; or 260D.06 shall satisfy the
requirement for the review so long as the other requirements of this section are met.

(c) As appropriate to the stage of the proceedings and relevant court orders, the
responsible social services agency or the court shall review:

(1) the safety, permanency needs, and well-being of the child;

(2) the continuing necessity for and appropriateness of the placement;

(3) the extent of compliance with the out-of-home placement plan;

(4) the extent of progress that has been made toward alleviating or mitigating the
causes necessitating placement in foster care;

(5) the projected date by which the child may be returned to and safely maintained in
the home or placed permanently away from the care of the parent or parents or guardian; and

(6) the appropriateness of the services provided to the child.

(d) When a child is age 16 14 or older, in addition to any administrative review
conducted by the agency, at the in-court review required under section 260C.317,
subdivision 3, clause (3), or 260C.515, subdivision 5 or 6, the court shall review the
independent living plan required under section 260C.212, subdivision 1, paragraph (c),
clause (11) (12), and the provision of services to the child related to the well-being of
the child as the child prepares to leave foster care. The review shall include the actual
plans related to each item in the plan necessary to the child's future safety and well-being
when the child is no longer in foster care.

(e) At the court review required under paragraph (d) for a child age 16 14 or older,
the following procedures apply:

(1) six months before the child is expected to be discharged from foster care, the
responsible social services agency shall give the written notice required under section
260C.451, subdivision 1, regarding the right to continued access to services for certain
children in foster care past age 18 and of the right to appeal a denial of social services
under section 256.045. The agency shall file a copy of the notice, including the right to
appeal a denial of social services, with the court. If the agency does not file the notice by
the time the child is age 17-1/2, the court shall require the agency to give it;

(2) consistent with the requirements of the independent living plan, the court shall
review progress toward or accomplishment of the following goals:

(i) the child has obtained a high school diploma or its equivalent;

(ii) the child has completed a driver's education course or has demonstrated the
ability to use public transportation in the child's community;

(iii) the child is employed or enrolled in postsecondary education;

(iv) the child has applied for and obtained postsecondary education financial aid for
which the child is eligible;

(v) the child has health care coverage and health care providers to meet the child's
physical and mental health needs;

(vi) the child has applied for and obtained disability income assistance for which
the child is eligible;

(vii) the child has obtained affordable housing with necessary supports, which does
not include a homeless shelter;

(viii) the child has saved sufficient funds to pay for the first month's rent and a
damage deposit;

(ix) the child has an alternative affordable housing plan, which does not include a
homeless shelter, if the original housing plan is unworkable;

(x) the child, if male, has registered for the Selective Service; and

(xi) the child has a permanent connection to a caring adult; and

(3) the court shall ensure that the responsible agency in conjunction with the
placement provider assists the child in obtaining the following documents prior to the
child's leaving foster care: a Social Security card; the child's birth certificate; a state
identification card or driver's license, tribal enrollment identification card, green card, or
school visa; the child's school, medical, and dental records; a contact list of the child's
medical, dental, and mental health providers; and contact information for the child's
siblings, if the siblings are in foster care.

(f) For a child who will be discharged from foster care at age 18 or older, the
responsible social services agency is required to develop a personalized transition plan as
directed by the youth. The transition plan must be developed during the 90-day period
immediately prior to the expected date of discharge. The transition plan must be as
detailed as the child may elect and include specific options on housing, health insurance,
education, local opportunities for mentors and continuing support services, and work force
supports and employment services. The agency shall ensure that the youth receives, at
no cost to the youth, a copy of the youth's consumer credit report as defined in section
13C.001 and assistance in interpreting and resolving any inaccuracies in the report. The
plan must include information on the importance of designating another individual to
make health care treatment decisions on behalf of the child if the child becomes unable
to participate in these decisions and the child does not have, or does not want, a relative
who would otherwise be authorized to make these decisions. The plan must provide the
child with the option to execute a health care directive as provided under chapter 145C.
The agency shall also provide the youth with appropriate contact information if the youth
needs more information or needs help dealing with a crisis situation through age 21.

Sec. 53.

Minnesota Statutes 2014, section 260C.212, subdivision 1, is amended to read:

Subdivision 1.

Out-of-home placement; plan.

(a) An out-of-home placement plan
shall be prepared within 30 days after any child is placed in foster care by court order or a
voluntary placement agreement between the responsible social services agency and the
child's parent pursuant to section 260C.227 or chapter 260D.

(b) An out-of-home placement plan means a written document which is prepared
by the responsible social services agency jointly with the parent or parents or guardian
of the child and in consultation with the child's guardian ad litem, the child's tribe, if the
child is an Indian child, the child's foster parent or representative of the foster care facility,
and, where appropriate, the child. When a child is age 14 or older, the child may include
two other individuals on the team preparing the child's out-of-home placement plan. For
a child in voluntary foster care for treatment under chapter 260D, preparation of the
out-of-home placement plan shall additionally include the child's mental health treatment
provider. As appropriate, the plan shall be:

(1) submitted to the court for approval under section 260C.178, subdivision 7;

(2) ordered by the court, either as presented or modified after hearing, under section
260C.178, subdivision 7, or 260C.201, subdivision 6; and

(3) signed by the parent or parents or guardian of the child, the child's guardian ad
litem, a representative of the child's tribe, the responsible social services agency, and, if
possible, the child.

(c) The out-of-home placement plan shall be explained to all persons involved in its
implementation, including the child who has signed the plan, and shall set forth:

(1) a description of the foster care home or facility selected, including how the
out-of-home placement plan is designed to achieve a safe placement for the child in the
least restrictive, most family-like, setting available which is in close proximity to the home
of the parent or parents or guardian of the child when the case plan goal is reunification,
and how the placement is consistent with the best interests and special needs of the child
according to the factors under subdivision 2, paragraph (b);

(2) the specific reasons for the placement of the child in foster care, and when
reunification is the plan, a description of the problems or conditions in the home of the
parent or parents which necessitated removal of the child from home and the changes the
parent or parents must make in order for the child to safely return home;

(3) a description of the services offered and provided to prevent removal of the child
from the home and to reunify the family including:

(i) the specific actions to be taken by the parent or parents of the child to eliminate
or correct the problems or conditions identified in clause (2), and the time period during
which the actions are to be taken; and

(ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made
to achieve a safe and stable home for the child including social and other supportive
services to be provided or offered to the parent or parents or guardian of the child, the
child, and the residential facility during the period the child is in the residential facility;

(4) a description of any services or resources that were requested by the child or the
child's parent, guardian, foster parent, or custodian since the date of the child's placement
in the residential facility, and whether those services or resources were provided and if
not, the basis for the denial of the services or resources;

(5) the visitation plan for the parent or parents or guardian, other relatives as defined
in section 260C.007, subdivision 27, and siblings of the child if the siblings are not placed
together in foster care, and whether visitation is consistent with the best interest of the
child, during the period the child is in foster care;

(6) when a child cannot return to or be in the care of either parent, documentation
of steps to finalize adoption as the permanency plan for the child, including: (i) through
reasonable efforts to place the child for adoption. At a minimum, the documentation must
include consideration of whether adoption is in the best interests of the child, child-specific
recruitment efforts such as relative search and the use of state, regional, and national
adoption exchanges to facilitate orderly and timely placements in and outside of the state.
A copy of this documentation shall be provided to the court in the review required under
section 260C.317, subdivision 3, paragraph (b); and

(ii) documentation necessary to support the requirements of the kinship placement
agreement under section 256N.22 when adoption is determined not to be in the child's
best interests; (7) when a child cannot return to or be in the care of either parent,
documentation of steps to finalize the transfer of permanent legal and physical custody
to a relative as the permanency plan for the child. This documentation must support the
requirements of the kinship placement agreement under section 256N.22 and must include
the reasonable efforts used to determine that it is not appropriate for the child to return
home or be adopted, and reasons why permanent placement with a relative through a
Northstar kinship assistance arrangement is in the child's best interest; how the child meets
the eligibility requirements for Northstar kinship assistance payments; agency efforts to
discuss adoption with the child's relative foster parent and reasons why the relative foster
parent chose not to pursue adoption, if applicable; and agency efforts to discuss with the
child's parent or parents the permanent transfer of permanent legal and physical custody or
the reasons why these efforts were not made;

(7) (8) efforts to ensure the child's educational stability while in foster care, including:

(i) efforts to ensure that the child remains in the same school in which the child was
enrolled prior to placement or upon the child's move from one placement to another,
including efforts to work with the local education authorities to ensure the child's
educational stability; or

(ii) if it is not in the child's best interest to remain in the same school that the child
was enrolled in prior to placement or move from one placement to another, efforts to
ensure immediate and appropriate enrollment for the child in a new school;

(8) (9) the educational records of the child including the most recent information
available regarding:

(i) the names and addresses of the child's educational providers;

(ii) the child's grade level performance;

(iii) the child's school record;

(iv) a statement about how the child's placement in foster care takes into account
proximity to the school in which the child is enrolled at the time of placement; and

(v) any other relevant educational information;

(9) (10) the efforts by the local agency to ensure the oversight and continuity of
health care services for the foster child, including:

(i) the plan to schedule the child's initial health screens;

(ii) how the child's known medical problems and identified needs from the screens,
including any known communicable diseases, as defined in section 144.4172, subdivision
2, will be monitored and treated while the child is in foster care;

(iii) how the child's medical information will be updated and shared, including
the child's immunizations;

(iv) who is responsible to coordinate and respond to the child's health care needs,
including the role of the parent, the agency, and the foster parent;

(v) who is responsible for oversight of the child's prescription medications;

(vi) how physicians or other appropriate medical and nonmedical professionals
will be consulted and involved in assessing the health and well-being of the child and
determine the appropriate medical treatment for the child; and

(vii) the responsibility to ensure that the child has access to medical care through
either medical insurance or medical assistance;

(10) (11) the health records of the child including information available regarding:

(i) the names and addresses of the child's health care and dental care providers;

(ii) a record of the child's immunizations;

(iii) the child's known medical problems, including any known communicable
diseases as defined in section 144.4172, subdivision 2;

(iv) the child's medications; and

(v) any other relevant health care information such as the child's eligibility for
medical insurance or medical assistance;

(11) (12) an independent living plan for a child age 16 14 or older. The plan should
include, but not be limited to, the following objectives:

(i) educational, vocational, or employment planning;

(ii) health care planning and medical coverage;

(iii) transportation including, where appropriate, assisting the child in obtaining a
driver's license;

(iv) money management, including the responsibility of the agency to ensure that
the youth annually receives, at no cost to the youth, a consumer report as defined under
section 13C.001 and assistance in interpreting and resolving any inaccuracies in the report;

(v) planning for housing;

(vi) social and recreational skills; and

(vii) establishing and maintaining connections with the child's family and
community; and

(viii) regular opportunities to engage in age-appropriate or developmentally
appropriate activities typical for the child's age group, taking into consideration the
capacities of the individual child; and

(12) (13) for a child in voluntary foster care for treatment under chapter 260D,
diagnostic and assessment information, specific services relating to meeting the mental
health care needs of the child, and treatment outcomes.

(d) The parent or parents or guardian and the child each shall have the right to legal
counsel in the preparation of the case plan and shall be informed of the right at the time
of placement of the child. The child shall also have the right to a guardian ad litem.
If unable to employ counsel from their own resources, the court shall appoint counsel
upon the request of the parent or parents or the child or the child's legal guardian. The
parent or parents may also receive assistance from any person or social services agency
in preparation of the case plan.

After the plan has been agreed upon by the parties involved or approved or ordered
by the court, the foster parents shall be fully informed of the provisions of the case plan
and shall be provided a copy of the plan.

Upon discharge from foster care, the parent, adoptive parent, or permanent legal and
physical custodian, as appropriate, and the child, if appropriate, must be provided with
a current copy of the child's health and education record.

Sec. 54.

Minnesota Statutes 2014, section 260C.212, is amended by adding a
subdivision to read:

Subd. 13.

Protecting missing and runaway children and youth at risk of sex
trafficking.

(a) The local social services agency shall expeditiously locate any child
missing from foster care.

(b) The local social services agency shall report immediately, but no later than
24 hours, after receiving information on a missing or abducted child to the local law
enforcement agency for entry into the National Crime Information Center (NCIC)
database of the Federal Bureau of Investigation, and to the National Center for Missing
and Exploited Children.

(c) The local social services agency shall not discharge a child from foster care or
close the social services case until diligent efforts have been exhausted to locate the child
and the court terminates the agency's jurisdiction.

(d) The local social services agency shall determine the primary factors that
contributed to the child's running away or otherwise being absent from care and, to
the extent possible and appropriate, respond to those factors in current and subsequent
placements.

(e) The local social services agency shall determine what the child experienced
while absent from care, including screening the child to determine if the child is a possible
sex trafficking victim as defined in section 609.321, subdivision 7b.

(f) The local social services agency shall report immediately, but no later than 24
hours, to the local law enforcement agency any reasonable cause to believe a child is, or is
at risk of being, a sex trafficking victim.

(g) The local social services agency shall determine appropriate services as described
in section 145.4717 with respect to any child for whom the local social services agency has
responsibility for placement, care, or supervision when the local social services agency
has reasonable cause to believe the child is, or is at risk of being, a sex trafficking victim.

Sec. 55.

Minnesota Statutes 2014, section 260C.212, is amended by adding a
subdivision to read:

Subd. 14.

Support age-appropriate and developmentally appropriate activities
for foster children.

Responsible social services agencies and child-placing agencies shall
support a foster child's emotional and developmental growth by permitting the child
to participate in activities or events that are generally accepted as suitable for children
of the same chronological age or are developmentally appropriate for the child. Foster
parents and residential facility staff are permitted to allow foster children to participate in
extracurricular, social, or cultural activities that are typical for the child's age by applying
reasonable and prudent parenting standards. Reasonable and prudent parenting standards
are characterized by careful and sensible parenting decisions that maintain the child's
health and safety, and are made in the child's best interest.

Sec. 56.

Minnesota Statutes 2014, section 260C.221, is amended to read:

260C.221 RELATIVE SEARCH.

(a) The responsible social services agency shall exercise due diligence to identify
and notify adult relatives prior to placement or within 30 days after the child's removal
from the parent. The county agency shall consider placement with a relative under this
section without delay and whenever the child must move from or be returned to foster
care. The relative search required by this section shall be comprehensive in scope. After a
finding that the agency has made reasonable efforts to conduct the relative search under
this paragraph, the agency has the continuing responsibility to appropriately involve
relatives, who have responded to the notice required under this paragraph, in planning
for the child and to continue to consider relatives according to the requirements of
section 260C.212, subdivision 2. At any time during the course of juvenile protection
proceedings, the court may order the agency to reopen its search for relatives when it is in
the child's best interest to do so.

(b) The relative search required by this section shall include both maternal relatives
and paternal adult relatives of the child; all adult grandparents; all legal parents, guardians
or custodians; the child's siblings; and any other adult relatives suggested by the child's
parents, subject to the exceptions due to family violence in paragraph (c). The search shall
also include getting information from the child in an age-appropriate manner about who
the child considers to be family members and important friends with whom the child has
resided or had significant contact. The relative search required under this section must
fulfill the agency's duties under the Indian Child Welfare Act regarding active efforts
to prevent the breakup of the Indian family under United States Code, title 25, section
1912(d), and to meet placement preferences under United States Code, title 25, section
1915. The relatives must be notified:

(1) of the need for a foster home for the child, the option to become a placement
resource for the child, and the possibility of the need for a permanent placement for the
child;

(2) of their responsibility to keep the responsible social services agency and the court
informed of their current address in order to receive notice in the event that a permanent
placement is sought for the child and to receive notice of the permanency progress review
hearing under section 260C.204. A relative who fails to provide a current address to the
responsible social services agency and the court forfeits the right to receive notice of the
possibility of permanent placement and of the permanency progress review hearing under
section 260C.204. A decision by a relative not to be identified as a potential permanent
placement resource or participate in planning for the child at the beginning of the case
shall not affect whether the relative is considered for placement of the child with that
relative later;

(3) that the relative may participate in the care and planning for the child, including
that the opportunity for such participation may be lost by failing to respond to the notice
sent under this subdivision. "Participate in the care and planning" includes, but is not
limited to, participation in case planning for the parent and child, identifying the strengths
and needs of the parent and child, supervising visits, providing respite and vacation visits
for the child, providing transportation to appointments, suggesting other relatives who
might be able to help support the case plan, and to the extent possible, helping to maintain
the child's familiar and regular activities and contact with friends and relatives;

(4) of the family foster care licensing requirements, including how to complete an
application and how to request a variance from licensing standards that do not present a
safety or health risk to the child in the home under section 245A.04 and supports that are
available for relatives and children who reside in a family foster home; and

(5) of the relatives' right to ask to be notified of any court proceedings regarding
the child, to attend the hearings, and of a relative's right or opportunity to be heard by the
court as required under section 260C.152, subdivision 5.

(b) (c) A responsible social services agency may disclose private data, as defined
in sections 13.02 and 626.556, to relatives of the child for the purpose of locating and
assessing a suitable placement and may use any reasonable means of identifying and
locating relatives including the Internet or other electronic means of conducting a search.
The agency shall disclose data that is necessary to facilitate possible placement with
relatives and to ensure that the relative is informed of the needs of the child so the
relative can participate in planning for the child and be supportive of services to the child
and family. If the child's parent refuses to give the responsible social services agency
information sufficient to identify the maternal and paternal relatives of the child, the
agency shall ask the juvenile court to order the parent to provide the necessary information.
If a parent makes an explicit request that a specific relative not be contacted or considered
for placement due to safety reasons including past family or domestic violence, the agency
shall bring the parent's request to the attention of the court to determine whether the
parent's request is consistent with the best interests of the child and the agency shall not
contact the specific relative when the juvenile court finds that contacting the specific
relative would endanger the parent, guardian, child, sibling, or any family member.

(c) (d) At a regularly scheduled hearing not later than three months after the child's
placement in foster care and as required in section 260C.202, the agency shall report to
the court:

(1) its efforts to identify maternal and paternal relatives of the child and to engage
the relatives in providing support for the child and family, and document that the relatives
have been provided the notice required under paragraph (a); and

(2) its decision regarding placing the child with a relative as required under section
260C.212, subdivision 2, and to ask relatives to visit or maintain contact with the child in
order to support family connections for the child, when placement with a relative is not
possible or appropriate.

(d) (e) Notwithstanding chapter 13, the agency shall disclose data about particular
relatives identified, searched for, and contacted for the purposes of the court's review of
the agency's due diligence.

(e) (f) When the court is satisfied that the agency has exercised due diligence to
identify relatives and provide the notice required in paragraph (a), the court may find that
reasonable efforts have been made to conduct a relative search to identify and provide
notice to adult relatives as required under section 260.012, paragraph (e), clause (3). If the
court is not satisfied that the agency has exercised due diligence to identify relatives and
provide the notice required in paragraph (a), the court may order the agency to continue its
search and notice efforts and to report back to the court.

(f) (g) When the placing agency determines that permanent placement proceedings
are necessary because there is a likelihood that the child will not return to a parent's
care, the agency must send the notice provided in paragraph (g) (h), may ask the court to
modify the duty of the agency to send the notice required in paragraph (g) (h), or may
ask the court to completely relieve the agency of the requirements of paragraph (g) (h).
The relative notification requirements of paragraph (g) (h) do not apply when the child is
placed with an appropriate relative or a foster home that has committed to adopting the
child or taking permanent legal and physical custody of the child and the agency approves
of that foster home for permanent placement of the child. The actions ordered by the
court under this section must be consistent with the best interests, safety, permanency,
and welfare of the child.

(g) (h) Unless required under the Indian Child Welfare Act or relieved of this duty
by the court under paragraph (e) (f), when the agency determines that it is necessary to
prepare for permanent placement determination proceedings, or in anticipation of filing a
termination of parental rights petition, the agency shall send notice to the relatives, any
adult with whom the child is currently residing, any adult with whom the child has resided
for one year or longer in the past, and any adults who have maintained a relationship or
exercised visitation with the child as identified in the agency case plan. The notice must
state that a permanent home is sought for the child and that the individuals receiving the
notice may indicate to the agency their interest in providing a permanent home. The notice
must state that within 30 days of receipt of the notice an individual receiving the notice must
indicate to the agency the individual's interest in providing a permanent home for the child
or that the individual may lose the opportunity to be considered for a permanent placement.

Sec. 57.

Minnesota Statutes 2014, section 260C.331, subdivision 1, is amended to read:

Subdivision 1.

Care, examination, or treatment.

(a) Except where parental rights
are terminated,

(1) whenever legal custody of a child is transferred by the court to a responsible
social services agency,

(2) whenever legal custody is transferred to a person other than the responsible social
services agency, but under the supervision of the responsible social services agency, or

(3) whenever a child is given physical or mental examinations or treatment under
order of the court, and no provision is otherwise made by law for payment for the care,
examination, or treatment of the child, these costs are a charge upon the welfare funds of
the county in which proceedings are held upon certification of the judge of juvenile court.

(b) The court shall order, and the responsible social services agency shall require,
the parents or custodian of a child, while the child is under the age of 18, to use the
total income and resources attributable to the child for the period of care, examination,
or treatment, except for clothing and personal needs allowance as provided in section
256B.35, to reimburse the county for the cost of care, examination, or treatment. Income
and resources attributable to the child include, but are not limited to, Social Security
benefits, Supplemental Security Income (SSI), veterans benefits, railroad retirement
benefits and child support. When the child is over the age of 18, and continues to receive
care, examination, or treatment, the court shall order, and the responsible social services
agency shall require, reimbursement from the child for the cost of care, examination, or
treatment from the income and resources attributable to the child less the clothing and
personal needs allowance. Income does not include earnings from a child over the age of
18 who is working as part of a plan under section 260C.212, subdivision 1, paragraph (c),
clause (11) (12), to transition from foster care, or the income and resources from sources
other than Supplemental Security Income and child support that are needed to complete
the requirements listed in section 260C.203.

(c) If the income and resources attributable to the child are not enough to reimburse
the county for the full cost of the care, examination, or treatment, the court shall inquire
into the ability of the parents to support the child and, after giving the parents a reasonable
opportunity to be heard, the court shall order, and the responsible social services agency
shall require, the parents to contribute to the cost of care, examination, or treatment of
the child. When determining the amount to be contributed by the parents, the court shall
use a fee schedule based upon ability to pay that is established by the responsible social
services agency and approved by the commissioner of human services. The income of
a stepparent who has not adopted a child shall be excluded in calculating the parental
contribution under this section.

(d) The court shall order the amount of reimbursement attributable to the parents
or custodian, or attributable to the child, or attributable to both sources, withheld under
chapter 518A from the income of the parents or the custodian of the child. A parent or
custodian who fails to pay without good reason may be proceeded against for contempt, or
the court may inform the county attorney, who shall proceed to collect the unpaid sums,
or both procedures may be used.

(e) If the court orders a physical or mental examination for a child, the examination
is a medically necessary service for purposes of determining whether the service is
covered by a health insurance policy, health maintenance contract, or other health
coverage plan. Court-ordered treatment shall be subject to policy, contract, or plan
requirements for medical necessity. Nothing in this paragraph changes or eliminates
benefit limits, conditions of coverage, co-payments or deductibles, provider restrictions,
or other requirements in the policy, contract, or plan that relate to coverage of other
medically necessary services.

(f) Notwithstanding paragraph (b), (c), or (d), a parent, custodian, or guardian of the
child is not required to use income and resources attributable to the child to reimburse
the county for costs of care and is not required to contribute to the cost of care of the
child during any period of time when the child is returned to the home of that parent,
custodian, or guardian pursuant to a trial home visit under section 260C.201, subdivision
1, paragraph (a).

Sec. 58.

Minnesota Statutes 2014, section 260C.451, subdivision 2, is amended to read:

Subd. 2.

Independent living plan.

Upon the request of any child in foster care
immediately prior to the child's 18th birthday and who is in foster care at the time
of the request, the responsible social services agency shall, in conjunction with the
child and other appropriate parties, update the independent living plan required under
section 260C.212, subdivision 1, paragraph (c), clause (11) (12), related to the child's
employment, vocational, educational, social, or maturational needs. The agency shall
provide continued services and foster care for the child including those services that are
necessary to implement the independent living plan.

Sec. 59.

Minnesota Statutes 2014, section 260C.451, subdivision 6, is amended to read:

Subd. 6.

Reentering foster care and accessing services after age 18.

(a)
Upon request of an individual between the ages of 18 and 21 who had been under the
guardianship of the commissioner and who has left foster care without being adopted, the
responsible social services agency which had been the commissioner's agent for purposes
of the guardianship shall develop with the individual a plan to increase the individual's
ability to live safely and independently using the plan requirements of section 260C.212,
subdivision 1, paragraph (b) (c), clause (11) (12), and to assist the individual to meet
one or more of the eligibility criteria in subdivision 4 if the individual wants to reenter
foster care. The agency shall provide foster care as required to implement the plan. The
agency shall enter into a voluntary placement agreement under section 260C.229 with the
individual if the plan includes foster care.

(b) Individuals who had not been under the guardianship of the commissioner of
human services prior to age 18 and are between the ages of 18 and 21 may ask to reenter
foster care after age 18 and, to the extent funds are available, the responsible social
services agency that had responsibility for planning for the individual before discharge
from foster care may provide foster care or other services to the individual for the purpose
of increasing the individual's ability to live safely and independently and to meet the
eligibility criteria in subdivision 3a, if the individual:

(1) was in foster care for the six consecutive months prior to the person's 18th
birthday and was not discharged home, adopted, or received into a relative's home under a
transfer of permanent legal and physical custody under section 260C.515, subdivision 4; or

(2) was discharged from foster care while on runaway status after age 15.

(c) In conjunction with a qualifying and eligible individual under paragraph (b) and
other appropriate persons, the responsible social services agency shall develop a specific
plan related to that individual's vocational, educational, social, or maturational needs
and, to the extent funds are available, provide foster care as required to implement the
plan. The agency shall enter into a voluntary placement agreement with the individual
if the plan includes foster care.

(d) Youth who left foster care while under guardianship of the commissioner of
human services retain eligibility for foster care for placement at any time between the
ages of 18 and 21.

Sec. 60.

Minnesota Statutes 2014, section 260C.515, subdivision 5, is amended to read:

Subd. 5.

Permanent custody to agency.

The court may order permanent custody to
the responsible social services agency for continued placement of the child in foster care
but only if it approves the responsible social services agency's compelling reasons that no
other permanency disposition order is in the child's best interests and:

(1) the child has reached age 12 16 and has been asked about the child's desired
permanency outcome;

(2) the child is a sibling of a child described in clause (1) and the siblings have a
significant positive relationship and are ordered into the same foster home;

(3) (2) the responsible social services agency has made reasonable efforts to locate
and place the child with an adoptive family or a fit and willing relative who would either
agree to adopt the child or to a transfer of permanent legal and physical custody of the
child, but these efforts have not proven successful; and

(4) (3) the parent will continue to have visitation or contact with the child and will
remain involved in planning for the child.

Sec. 61.

Minnesota Statutes 2014, section 260C.521, subdivision 1, is amended to read:

Subdivision 1.

Child in permanent custody of responsible social services agency.

(a) Court reviews of an order for permanent custody to the responsible social services
agency for placement of the child in foster care must be conducted at least yearly at an
in-court appearance hearing.

(b) The purpose of the review hearing is to ensure:

(1) the order for permanent custody to the responsible social services agency for
placement of the child in foster care continues to be in the best interests of the child and
that no other permanency disposition order is in the best interests of the child;

(2) that the agency is assisting the child to build connections to the child's family
and community; and

(3) that the agency is appropriately planning with the child for development of
independent living skills for the child and, as appropriate, for the orderly and successful
transition to independent living that may occur if the child continues in foster care without
another permanency disposition order.

(c) The court must review the child's out-of-home placement plan and the reasonable
efforts of the agency to finalize an alternative permanent plan for the child including the
agency's efforts to:

(1) ensure that permanent custody to the agency with placement of the child in
foster care continues to be the most appropriate legal arrangement for meeting the child's
need for permanency and stability or, if not, to identify and attempt to finalize another
permanency disposition order under this chapter that would better serve the child's needs
and best interests;

(2) identify a specific foster home for the child, if one has not already been identified;

(3) support continued placement of the child in the identified home, if one has been
identified;

(4) ensure appropriate services are provided to address the physical health, mental
health, and educational needs of the child during the period of foster care and also ensure
appropriate services or assistance to maintain relationships with appropriate family
members and the child's community; and

(5) plan for the child's independence upon the child's leaving foster care living as
required under section 260C.212, subdivision 1.

(d) The court may find that the agency has made reasonable efforts to finalize the
permanent plan for the child when:

(1) the agency has made reasonable efforts to identify a more legally permanent
home for the child than is provided by an order for permanent custody to the agency
for placement in foster care; and

(2) the child has been asked about the child's desired permanency outcome; and

(2) (3) the agency's engagement of the child in planning for independent living is
reasonable and appropriate.

Sec. 62.

Minnesota Statutes 2014, section 260C.521, subdivision 2, is amended to read:

Subd. 2.

Modifying order for permanent legal and physical custody to a
relative.

(a) An order for a relative to have permanent legal and physical custody of a
child may be modified using standards under sections 518.18 and 518.185.

(b) When a child is receiving Northstar kinship assistance under chapter 256N, if
a relative named as permanent legal and physical custodian in an order made under this
chapter becomes incapacitated or dies, a successor custodian named in the Northstar
Care for Children kinship assistance benefit agreement under section 256N.25 may file
a request to modify the order for permanent legal and physical custody to name the
successor custodian as the permanent legal and physical custodian of the child. The court
may modify the order to name the successor custodian as the permanent legal and physical
custodian upon reviewing the background study required under section 245C.33 if the
court finds the modification is in the child's best interests.

(c) The social services agency is a party to the proceeding and must receive notice.

Sec. 63.

Minnesota Statutes 2014, section 260C.607, subdivision 4, is amended to read:

Subd. 4.

Content of review.

(a) The court shall review:

(1) the agency's reasonable efforts under section 260C.605 to finalize an adoption
for the child as appropriate to the stage of the case; and

(2) the child's current out-of-home placement plan required under section 260C.212,
subdivision 1, to ensure the child is receiving all services and supports required to meet
the child's needs as they relate to the child's:

(i) placement;

(ii) visitation and contact with siblings;

(iii) visitation and contact with relatives;

(iv) medical, mental, and dental health; and

(v) education.

(b) When the child is age 16 14 and older, and as long as the child continues in foster
care, the court shall also review the agency's planning for the child's independent living
after leaving foster care including how the agency is meeting the requirements of section
260C.212, subdivision 1, paragraph (c), clause (11) (12). The court shall use the review
requirements of section 260C.203 in any review conducted under this paragraph.

Sec. 64.

Minnesota Statutes 2014, section 290.0671, subdivision 6, is amended to read:

Subd. 6.

Appropriation.

An amount sufficient to pay the refunds required by
this section is appropriated to the commissioner from the general fund. This amount
includes any amounts appropriated to the commissioner of human services from the
federal Temporary Assistance for Needy Families (TANF) block grant funds for transfer
to the commissioner of revenue.

EFFECTIVE DATE.

This section is effective for fiscal year 2016 and thereafter.

Sec. 65.

Minnesota Statutes 2014, section 518A.26, subdivision 14, is amended to read:

Subd. 14.

Obligor.

"Obligor" means a person obligated to pay maintenance or
support. A person who has primary physical custody of a child is presumed not to be
an obligor for purposes of a child support order under section 518A.34, unless section
518A.36, subdivision 3, applies or the court makes specific written findings to overcome
this presumption. For purposes of ordering medical support under section 518A.41, a
parent who has primary physical custody of a child may be an obligor subject to a payment
agreement under section 518A.69.

EFFECTIVE DATE.

This section is effective March 1, 2016.

Sec. 66.

Minnesota Statutes 2014, section 518A.32, subdivision 2, is amended to read:

Subd. 2.

Methods.

Determination of potential income must be made according
to one of three methods, as appropriate:

(1) the parent's probable earnings level based on employment potential, recent
work history, and occupational qualifications in light of prevailing job opportunities and
earnings levels in the community;

(2) if a parent is receiving unemployment compensation or workers' compensation,
that parent's income may be calculated using the actual amount of the unemployment
compensation or workers' compensation benefit received; or

(3) the amount of income a parent could earn working full time at 150 30 hours per
week at 100 percent of the current federal or state minimum wage, whichever is higher.

EFFECTIVE DATE.

This section is effective March 1, 2016.

Sec. 67.

Minnesota Statutes 2014, section 518A.39, subdivision 1, is amended to read:

Subdivision 1.

Authority.

After an order under this chapter or chapter 518 for
maintenance or support money, temporary or permanent, or for the appointment of trustees
to receive property awarded as maintenance or support money, the court may from time to
time, on motion of either of the parties, a copy of which is served on the public authority
responsible for child support enforcement if payments are made through it, or on motion
of the public authority responsible for support enforcement, modify the order respecting
the amount of maintenance or support money or medical support, and the payment of it,
and also respecting the appropriation and payment of the principal and income of property
held in trust, and may make an order respecting these matters which it might have made
in the original proceeding, except as herein otherwise provided. A party or the public
authority also may bring a motion for contempt of court if the obligor is in arrears in
support or maintenance payments.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 68.

Minnesota Statutes 2014, section 518A.39, is amended by adding a
subdivision to read:

Subd. 8.

Medical support-only modification.

(a) The medical support terms of
a support order and determination of the child dependency tax credit may be modified
without modification of the full order for support or maintenance, if the order has been
established or modified in its entirety within three years from the date of the motion, and
upon a showing of one or more of the following:

(1) a change in the availability of appropriate health care coverage or a substantial
increase or decrease in health care coverage costs;

(2) a change in the eligibility for medical assistance under chapter 256B;

(3) a party's failure to carry court-ordered coverage, or to provide other medical
support as ordered;

(4) the federal child dependency tax credit is not ordered for the same parent who is
ordered to carry health care coverage; or

(5) the federal child dependency tax credit is not addressed in the order and the
noncustodial parent is ordered to carry health care coverage.

(b) For a motion brought under this subdivision, a modification of the medical
support terms of an order may be made retroactive only with respect to any period during
which the petitioning party has pending a motion for modification, but only from the date
of service of notice of the motion on the responding party and on the public authority if
public assistance is being furnished or the county attorney is the attorney of record.

(c) The court need not hold an evidentiary hearing on a motion brought under this
subdivision for modification of medical support only.

(d) Sections 518.14 and 518A.735 shall govern the award of attorney fees for
motions brought under this subdivision.

(e) The PICS originally stated in the order being modified shall be used to determine
the modified medical support order under section 518A.41 for motions brought under
this subdivision.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 69.

Minnesota Statutes 2014, section 518A.41, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

The definitions in this subdivision apply to this chapter
and chapter 518.

(a) "Health care coverage" means medical, dental, or other health care benefits that
are provided by one or more health plans. Health care coverage does not include any
form of public coverage.

(b) "Health carrier" means a carrier as defined in sections 62A.011, subdivision
2, and 62L.02, subdivision 16.

(c) "Health plan" means a plan, other than any form of public coverage, that provides
medical, dental, or other health care benefits and is:

(1) provided on an individual or group basis;

(2) provided by an employer or union;

(3) purchased in the private market; or

(4) available to a person eligible to carry insurance for the joint child, including a
party's spouse or parent.

Health plan includes, but is not limited to, a plan meeting the definition under section
62A.011, subdivision 3, except that the exclusion of coverage designed solely to provide
dental or vision care under section 62A.011, subdivision 3, clause (6), does not apply to
the definition of health plan under this section; a group health plan governed under the
federal Employee Retirement Income Security Act of 1974 (ERISA); a self-insured plan
under sections 43A.23 to 43A.317 and 471.617; and a policy, contract, or certificate issued
by a community-integrated service network licensed under chapter 62N.

(d) "Medical support" means providing health care coverage for a joint child by
carrying health care coverage for the joint child or by contributing to the cost of health
care coverage, public coverage, unreimbursed medical expenses, and uninsured medical
expenses of the joint child.

(e) "National medical support notice" means an administrative notice issued by the
public authority to enforce health insurance provisions of a support order in accordance
with Code of Federal Regulations, title 45, section 303.32, in cases where the public
authority provides support enforcement services.

(f) "Public coverage" means health care benefits provided by any form of medical
assistance under chapter 256B or MinnesotaCare under chapter 256L. Public coverage
does not include MinnesotaCare or health plans subsidized by federal premium tax credits
or federal cost-sharing reductions.

(g) "Uninsured medical expenses" means a joint child's reasonable and necessary
health-related expenses if the joint child is not covered by a health plan or public coverage
when the expenses are incurred.

(h) "Unreimbursed medical expenses" means a joint child's reasonable and necessary
health-related expenses if a joint child is covered by a health plan or public coverage and
the plan or coverage does not pay for the total cost of the expenses when the expenses
are incurred. Unreimbursed medical expenses do not include the cost of premiums.
Unreimbursed medical expenses include, but are not limited to, deductibles, co-payments,
and expenses for orthodontia, and prescription eyeglasses and contact lenses, but not
over-the-counter medications if coverage is under a health plan.

Sec. 70.

Minnesota Statutes 2014, section 518A.41, subdivision 3, is amended to read:

Subd. 3.

Determining appropriate health care coverage.

In determining whether
a parent has appropriate health care coverage for the joint child, the court must consider
the following factors:

(1) comprehensiveness of health care coverage providing medical benefits.
Dependent health care coverage providing medical benefits is presumed comprehensive if
it includes medical and hospital coverage and provides for preventive, emergency, acute,
and chronic care; or if it meets the minimum essential coverage definition in United States
Code, title 26, section 5000A(f). If both parents have health care coverage providing
medical benefits that is presumed comprehensive under this paragraph, the court must
determine which parent's coverage is more comprehensive by considering what other
benefits are included in the coverage;

(2) accessibility. Dependent health care coverage is accessible if the covered joint
child can obtain services from a health plan provider with reasonable effort by the parent
with whom the joint child resides. Health care coverage is presumed accessible if:

(i) primary care is available within 30 minutes or 30 miles of the joint child's residence
and specialty care is available within 60 minutes or 60 miles of the joint child's residence;

(ii) the health care coverage is available through an employer and the employee can
be expected to remain employed for a reasonable amount of time; and

(iii) no preexisting conditions exist to unduly delay enrollment in health care
coverage;

(3) the joint child's special medical needs, if any; and

(4) affordability. Dependent health care coverage is affordable if it is reasonable
in cost. If both parents have health care coverage available for a joint child that is
comparable with regard to comprehensiveness of medical benefits, accessibility, and the
joint child's special needs, the least costly health care coverage is presumed to be the most
appropriate health care coverage for the joint child.

Sec. 71.

Minnesota Statutes 2014, section 518A.41, subdivision 4, is amended to read:

Subd. 4.

Ordering health care coverage.

(a) If a joint child is presently enrolled
in health care coverage, the court must order that the parent who currently has the joint
child enrolled continue that enrollment unless the parties agree otherwise or a party
requests a change in coverage and the court determines that other health care coverage is
more appropriate.

(b) If a joint child is not presently enrolled in health care coverage providing medical
benefits, upon motion of a parent or the public authority, the court must determine whether
one or both parents have appropriate health care coverage providing medical benefits
for the joint child.

(c) If only one parent has appropriate health care coverage providing medical
benefits available, the court must order that parent to carry the coverage for the joint child.

(d) If both parents have appropriate health care coverage providing medical benefits
available, the court must order the parent with whom the joint child resides to carry the
coverage for the joint child, unless:

(1) a party expresses a preference for health care coverage providing medical
benefits available through the parent with whom the joint child does not reside;

(2) the parent with whom the joint child does not reside is already carrying
dependent health care coverage providing medical benefits for other children and the cost
of contributing to the premiums of the other parent's coverage would cause the parent with
whom the joint child does not reside extreme hardship; or

(3) the parties agree as to which parent will carry health care coverage providing
medical benefits and agree on the allocation of costs.

(e) If the exception in paragraph (d), clause (1) or (2), applies, the court must
determine which parent has the most appropriate coverage providing medical benefits
available and order that parent to carry coverage for the joint child.

(f) If neither parent has appropriate health care coverage available, the court must
order the parents to:

(1) contribute toward the actual health care costs of the joint children based on
a pro rata share; or

(2) if the joint child is receiving any form of public coverage, the parent with whom
the joint child does not reside shall contribute a monthly amount toward the actual cost of
public coverage. The amount of the noncustodial parent's contribution is determined by
applying the noncustodial parent's PICS to the premium schedule for public coverage scale
for MinnesotaCare under section 256L.15, subdivision 2, paragraph (d). If the noncustodial
parent's PICS meets the eligibility requirements for public coverage MinnesotaCare, the
contribution is the amount the noncustodial parent would pay for the child's premium. If
the noncustodial parent's PICS exceeds the eligibility requirements for public coverage, the
contribution is the amount of the premium for the highest eligible income on the appropriate
premium schedule for public coverage scale for MinnesotaCare under section 256L.15,
subdivision 2, paragraph (d). For purposes of determining the premium amount, the
noncustodial parent's household size is equal to one parent plus the child or children who
are the subject of the child support order. The custodial parent's obligation is determined
under the requirements for public coverage as set forth in chapter 256B or 256L.; or

(3) if the noncustodial parent's PICS meet the eligibility requirement for public
coverage under chapter 256B or the noncustodial parent receives public assistance, the
noncustodial parent must not be ordered to contribute toward the cost of public coverage.

(g) If neither parent has appropriate health care coverage available, the court may
order the parent with whom the child resides to apply for public coverage for the child.

(h) The commissioner of human services must publish a table with the premium
schedule for public coverage and update the chart for changes to the schedule by July
1 of each year.

(i) If a joint child is not presently enrolled in health care coverage providing dental
benefits, upon motion of a parent or the public authority, the court must determine whether
one or both parents have appropriate dental health care coverage for the joint child, and the
court may order a parent with appropriate dental health care coverage available to carry
the coverage for the joint child.

(j) If a joint child is not presently enrolled in available health care coverage
providing benefits other than medical benefits or dental benefits, upon motion of a parent
or the public authority, the court may determine whether that other health care coverage
for the joint child is appropriate, and the court may order a parent with that appropriate
health care coverage available to carry the coverage for the joint child.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 72.

Minnesota Statutes 2014, section 518A.41, subdivision 14, is amended to read:

Subd. 14.

Child support enforcement services.

The public authority must take
necessary steps to establish and enforce, enforce, and modify an order for medical support
if the joint child receives public assistance or a party completes an application for services
from the public authority under section 518A.51.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 73.

Minnesota Statutes 2014, section 518A.41, subdivision 15, is amended to read:

Subd. 15.

Enforcement.

(a) Remedies available for collecting and enforcing child
support apply to medical support.

(b) For the purpose of enforcement, the following are additional support:

(1) the costs of individual or group health or hospitalization coverage;

(2) dental coverage;

(3) medical costs ordered by the court to be paid by either party, including health
care coverage premiums paid by the obligee because of the obligor's failure to obtain
coverage as ordered; and

(4) liabilities established under this subdivision.

(c) A party who fails to carry court-ordered dependent health care coverage is liable
for the joint child's uninsured medical expenses unless a court order provides otherwise.
A party's failure to carry court-ordered coverage, or to provide other medical support as
ordered, is a basis for modification of a medical support order under section 518A.39,
subdivision 2 8, unless it meets the presumption in section 518A.39, subdivision 2.

(d) Payments by the health carrier or employer for services rendered to the dependents
that are directed to a party not owed reimbursement must be endorsed over to and forwarded
to the vendor or appropriate party or the public authority. A party retaining insurance
reimbursement not owed to the party is liable for the amount of the reimbursement.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 74.

Minnesota Statutes 2014, section 518A.43, is amended by adding a
subdivision to read:

Subd. 1a.

Income disparity between parties.

The court may deviate from the
presumptive child support obligation under section 518A.34 and elect not to order a party
who has between ten and 45 percent parenting time to pay basic support where such a
significant disparity of income exists between the parties that an order directing payment
of basic support would be detrimental to the parties' joint child.

EFFECTIVE DATE.

This section is effective March 1, 2016.

Sec. 75.

Minnesota Statutes 2014, section 518A.46, subdivision 3, is amended to read:

Subd. 3.

Contents of pleadings.

(a) In cases involving establishment or
modification of a child support order, the initiating party shall include the following
information, if known, in the pleadings:

(1) names, addresses, and dates of birth of the parties;

(2) Social Security numbers of the parties and the minor children of the parties,
which information shall be considered private information and shall be available only to
the parties, the court, and the public authority;

(3) other support obligations of the obligor;

(4) names and addresses of the parties' employers;

(5) gross income of the parties as calculated in section 518A.29;

(6) amounts and sources of any other earnings and income of the parties;

(7) health insurance coverage of parties;

(8) types and amounts of public assistance received by the parties, including
Minnesota family investment plan, child care assistance, medical assistance,
MinnesotaCare, title IV-E foster care, or other form of assistance as defined in section
256.741, subdivision 1; and

(9) any other information relevant to the computation of the child support obligation
under section 518A.34.

(b) For all matters scheduled in the expedited process, whether or not initiated by
the public authority, the nonattorney employee of the public authority shall file with the
court and serve on the parties the following information:

(1) information pertaining to the income of the parties available to the public
authority from the Department of Employment and Economic Development;

(2) a statement of the monthly amount of child support, medical support, child care,
and arrears currently being charged the obligor on Minnesota IV-D cases;

(3) a statement of the types and amount of any public assistance, as defined in
section 256.741, subdivision 1, received by the parties; and

(4) any other information relevant to the determination of support that is known to
the public authority and that has not been otherwise provided by the parties.

The information must be filed with the court or child support magistrate at least
five days before any hearing involving child support, medical support, or child care
reimbursement issues.

Sec. 76.

Minnesota Statutes 2014, section 518A.46, is amended by adding a
subdivision to read:

Subd. 3a.

Contents of pleadings for medical support modifications.

(a) In cases
involving modification of only the medical support portion of a child support order
under section 518A.39, subdivision 8, the initiating party shall include the following
information, if known, in the pleadings:

(1) names, addresses, and dates of birth of the parties;

(2) Social Security numbers of the parties and the minor children of the parties,
which shall be considered private information and shall be available only to the parties,
the court, and the public authority;

(3) names and addresses of the parties' employers;

(4) gross income of the parties as stated in the order being modified;

(5) health insurance coverage of the parties; and

(6) any other information relevant to the determination of the medical support
obligation under section 518A.41.

(b) For all matters scheduled in the expedited process, whether or not initiated by
the public authority, the nonattorney employee of the public authority shall file with the
court and serve on the parties the following information:

(1) a statement of the monthly amount of child support, medical support, child care,
and arrears currently being charged the obligor on Minnesota IV-D cases;

(2) a statement of the amount of medical assistance received by the parties; and

(3) any other information relevant to the determination of medical support that is
known to the public authority and that has not been otherwise provided by the parties.

The information must be filed with the court or child support magistrate at least five
days before the hearing on the motion to modify medical support.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 77.

Minnesota Statutes 2014, section 518A.51, is amended to read:

518A.51 FEES FOR IV-D SERVICES.

(a) When a recipient of IV-D services is no longer receiving assistance under the
state's title IV-A, IV-E foster care, or medical assistance, or MinnesotaCare programs, the
public authority responsible for child support enforcement must notify the recipient,
within five working days of the notification of ineligibility, that IV-D services will be
continued unless the public authority is notified to the contrary by the recipient. The
notice must include the implications of continuing to receive IV-D services, including the
available services and fees, cost recovery fees, and distribution policies relating to fees.

(b) An application fee of $25 shall be paid by the person who applies for child
support and maintenance collection services, except persons who are receiving public
assistance as defined in section 256.741 and the diversionary work program under section
256J.95, persons who transfer from public assistance to nonpublic assistance status, and
minor parents and parents enrolled in a public secondary school, area learning center, or
alternative learning program approved by the commissioner of education.

(c) (b) In the case of an individual who has never received assistance under a state
program funded under title IV-A of the Social Security Act and for whom the public
authority has collected at least $500 of support, the public authority must impose an
annual federal collections fee of $25 for each case in which services are furnished. This
fee must be retained by the public authority from support collected on behalf of the
individual, but not from the first $500 collected.

(d) (c) When the public authority provides full IV-D services to an obligee who
has applied for those services, upon written notice to the obligee, the public authority
must charge a cost recovery fee of two percent of the amount collected. This fee must
be deducted from the amount of the child support and maintenance collected and not
assigned under section 256.741 before disbursement to the obligee. This fee does not
apply to an obligee who:

(1) is currently receiving assistance under the state's title IV-A, IV-E foster care, or
medical assistance, or MinnesotaCare programs; or

(2) has received assistance under the state's title IV-A or IV-E foster care programs,
until the person has not received this assistance for 24 consecutive months.

(e) (d) When the public authority provides full IV-D services to an obligor who has
applied for such services, upon written notice to the obligor, the public authority must
charge a cost recovery fee of two percent of the monthly court-ordered child support and
maintenance obligation. The fee may be collected through income withholding, as well
as by any other enforcement remedy available to the public authority responsible for
child support enforcement.

(f) (e) Fees assessed by state and federal tax agencies for collection of overdue
support owed to or on behalf of a person not receiving public assistance must be imposed
on the person for whom these services are provided. The public authority upon written
notice to the obligee shall assess a fee of $25 to the person not receiving public assistance
for each successful federal tax interception. The fee must be withheld prior to the release
of the funds received from each interception and deposited in the general fund.

(g) (f) Federal collections fees collected under paragraph (c) (b) and cost recovery
fees collected under paragraphs (c) and (d) and (e) retained by the commissioner of human
services shall be considered child support program income according to Code of Federal
Regulations, title 45, section 304.50, and shall be deposited in the special revenue fund
account established under paragraph (i) (h). The commissioner of human services must
elect to recover costs based on either actual or standardized costs.

(h) (g) The limitations of this section on the assessment of fees shall not apply to
the extent inconsistent with the requirements of federal law for receiving funds for the
programs under title IV-A and title IV-D of the Social Security Act, United States Code,
title 42, sections 601 to 613 and United States Code, title 42, sections 651 to 662.

(i) (h) The commissioner of human services is authorized to establish a special
revenue fund account to receive the federal collections fees collected under paragraph (c)
(b) and cost recovery fees collected under paragraphs (c) and (d) and (e).

(j) (i) The nonfederal share of the cost recovery fee revenue must be retained by the
commissioner and distributed as follows:

(1) one-half of the revenue must be transferred to the child support system special
revenue account to support the state's administration of the child support enforcement
program and its federally mandated automated system;

(2) an additional portion of the revenue must be transferred to the child support
system special revenue account for expenditures necessary to administer the fees; and

(3) the remaining portion of the revenue must be distributed to the counties to aid the
counties in funding their child support enforcement programs.

(k) (j) The nonfederal share of the federal collections fees must be distributed to the
counties to aid them in funding their child support enforcement programs.

(l) (k) The commissioner of human services shall distribute quarterly any of the
funds dedicated to the counties under paragraphs (i) and (j) and (k) using the methodology
specified in section 256.979, subdivision 11. The funds received by the counties must be
reinvested in the child support enforcement program and the counties must not reduce the
funding of their child support programs by the amount of the funding distributed.

EFFECTIVE DATE.

This section is effective July 1, 2016, except that the
amendments striking MinnesotaCare are effective July 1, 2015.

Sec. 78.

Minnesota Statutes 2014, section 518A.53, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For the purpose of this section, the following terms
have the meanings provided in this subdivision unless otherwise stated.

(b) "Payor of funds" means any person or entity that provides funds to an obligor,
including an employer as defined under chapter 24 of the Internal Revenue Code,
section 3401(d), an independent contractor, payor of worker's compensation benefits or
unemployment benefits, or a financial institution as defined in section 13B.06.

(c) "Business day" means a day on which state offices are open for regular business.

(d) "Arrears" means amounts owed under a support order that are past due has the
meaning given in section 518A.26, subdivision 3.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 79.

Minnesota Statutes 2014, section 518A.53, subdivision 4, is amended to read:

Subd. 4.

Collection services.

(a) The commissioner of human services shall prepare
and make available to the courts a notice of services that explains child support and
maintenance collection services available through the public authority, including income
withholding, and the fees for such services. Upon receiving a petition for dissolution of
marriage or legal separation, the court administrator shall promptly send the notice of
services to the petitioner and respondent at the addresses stated in the petition.

(b) Either the obligee or obligor may at any time apply to the public authority for
either full IV-D services or for income withholding only services.

(c) For those persons applying for income withholding only services, a monthly
service fee of $15 must be charged to the obligor. This fee is in addition to the amount of
the support order and shall be withheld through income withholding. The public authority
shall explain the service options in this section to the affected parties and encourage the
application for full child support collection services.

(d) If the obligee is not a current recipient of public assistance as defined in section
256.741, the person who applied for services may at any time choose to terminate either
full IV-D services or income withholding only services regardless of whether income
withholding is currently in place. The obligee or obligor may reapply for either full IV-D
services or income withholding only services at any time. Unless the applicant is a
recipient of public assistance as defined in section 256.741, a $25 application fee shall be
charged at the time of each application.

(e) When a person terminates IV-D services, if an arrearage for public assistance as
defined in section 256.741 exists, the public authority may continue income withholding,
as well as use any other enforcement remedy for the collection of child support, until all
public assistance arrears are paid in full. Income withholding shall be in an amount equal
to 20 percent of the support order in effect at the time the services terminated, unless the
court has ordered a specific monthly payback amount to be applied toward the arrears. If a
support order includes a specific monthly payback amount, income withholding shall be
for the specific monthly payback amount ordered.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 80.

Minnesota Statutes 2014, section 518A.53, subdivision 10, is amended to read:

Subd. 10.

Arrearage order.

(a) This section does not prevent the court from
ordering the payor of funds to withhold amounts to satisfy the obligor's previous arrearage
in support order payments. This remedy shall not operate to exclude availability of other
remedies to enforce judgments. The employer or payor of funds shall withhold from
the obligor's income an additional amount equal to 20 percent of the monthly child
support or maintenance obligation until the arrearage is paid, unless the court has ordered
a specific monthly payback amount toward the arrears. If a support order includes a
specific monthly payback amount, the employer or payor of funds shall withhold from
the obligor's income an additional amount equal to the specific monthly payback amount
ordered until all arrearages are paid.

(b) Notwithstanding any law to the contrary, funds from income sources included
in section 518A.26, subdivision 8, whether periodic or lump sum, are not exempt from
attachment or execution upon a judgment for child support arrearage.

(c) Absent an order to the contrary, if an arrearage exists at the time a support
order would otherwise terminate, income withholding shall continue in effect or may be
implemented in an amount equal to the support order plus an additional 20 percent of the
monthly child support obligation, until all arrears have been paid in full.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 81.

Minnesota Statutes 2014, section 518A.60, is amended to read:

518A.60 COLLECTION; ARREARS ONLY.

(a) Remedies available for the collection and enforcement of support in this chapter
and chapters 256, 257, 518, and 518C also apply to cases in which the child or children
for whom support is owed are emancipated and the obligor owes past support or has an
accumulated arrearage as of the date of the youngest child's emancipation. Child support
arrearages under this section include arrearages for child support, medical support, child
care, pregnancy and birth expenses, and unreimbursed medical expenses as defined in
section 518A.41, subdivision 1, paragraph (h).

(b) This section applies retroactively to any support arrearage that accrued on or
before June 3, 1997, and to all arrearages accruing after June 3, 1997.

(c) Past support or pregnancy and confinement expenses ordered for which the
obligor has specific court ordered terms for repayment may not be enforced using drivers'
and occupational or professional license suspension, and credit bureau reporting, and
additional income withholding under section 518A.53, subdivision 10, paragraph (a),
unless the obligor fails to comply with the terms of the court order for repayment.

(d) If an arrearage exists at the time a support order would otherwise terminate
and section 518A.53, subdivision 10, paragraph (c), does not apply to this section, the
arrearage shall be repaid in an amount equal to the current support order until all arrears
have been paid in full, absent a court order to the contrary.

(e) If an arrearage exists according to a support order which fails to establish a
monthly support obligation in a specific dollar amount, the public authority, if it provides
child support services, or the obligee, may establish a payment agreement which shall
equal what the obligor would pay for current support after application of section 518A.34,
plus an additional 20 percent of the current support obligation, until all arrears have been
paid in full. If the obligor fails to enter into or comply with a payment agreement, the
public authority, if it provides child support services, or the obligee, may move the district
court or child support magistrate, if section 484.702 applies, for an order establishing
repayment terms.

(f) If there is no longer a current support order because all of the children of the
order are emancipated, the public authority may discontinue child support services and
close its case under title IV-D of the Social Security Act if:

(1) the arrearage is under $500; or

(2) the arrearage is considered unenforceable by the public authority because there
have been no collections for three years, and all administrative and legal remedies have
been attempted or are determined by the public authority to be ineffective because the
obligor is unable to pay, the obligor has no known income or assets, and there is no
reasonable prospect that the obligor will be able to pay in the foreseeable future.

(g) At least 60 calendar days before the discontinuation of services under paragraph
(f), the public authority must mail a written notice to the obligee and obligor at the
obligee's and obligor's last known addresses that the public authority intends to close the
child support enforcement case and explaining each party's rights. Seven calendar days
after the first notice is mailed, the public authority must mail a second notice under this
paragraph to the obligee.

(h) The case must be kept open if the obligee responds before case closure and
provides information that could reasonably lead to collection of arrears. If the case is
closed, the obligee may later request that the case be reopened by completing a new
application for services, if there is a change in circumstances that could reasonably lead to
the collection of arrears.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 82.

[518A.685] CONSUMER REPORTING AGENCY; REPORTING
ARREARS.

(a) If a public authority determines that an obligor has not paid the current monthly
support obligation plus any required arrearage payment for three consecutive months, the
public authority must report this information to a consumer reporting agency.

(b) Before reporting that an obligor is in arrears for court-ordered child support,
the public authority must:

(1) provide written notice to the obligor that the public authority intends to report the
arrears to a consumer agency; and

(2) mail the written notice to the obligor's last known mailing address 30 days before
the public authority reports the arrears to a consumer reporting agency.

(c) The obligor may, within 21 days of receipt of the notice, do the following to
prevent the public authority from reporting the arrears to a consumer reporting agency:

(1) pay the arrears in full; or

(2) request an administrative review. An administrative review is limited to issues
of mistaken identity, a pending legal action involving the arrears, or an incorrect arrears
balance.

(d) If a public authority has reported that an obligor is in arrears for court-ordered
child support and subsequently determines that the obligor has paid the court-ordered
child support arrears in full, or is paying the current monthly support obligation plus any
required arrearage payment, the public authority must report to the consumer reporting
agency that the obligor is currently paying child support as ordered by the court.

(e) A public authority that reports arrearage information under this section must
make monthly reports to a consumer reporting agency. The monthly report must be
consistent with credit reporting industry standards for child support.

(f) For purposes of this section, "consumer reporting agency" has the meaning given
in section 13C.001, subdivision 4, and United States Code, title 15, section 1681a(f).

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 83.

Minnesota Statutes 2014, section 518C.802, is amended to read:

518C.802 CONDITIONS OF RENDITION.

(a) Before making demand that the governor of another state surrender an individual
charged criminally in this state with having failed to provide for the support of an obligee,
the governor of this state may require a prosecutor of this state to demonstrate that at least
60 days previously the obligee had initiated proceedings for support pursuant to this
chapter or that the proceeding would be of no avail.

(b) If, under this chapter or a law substantially similar to this chapter, the Uniform
Reciprocal Enforcement of Support Act, or the Revised Uniform Reciprocal Enforcement
of Support Act, the governor of another state makes a demand that the governor of
this state surrender an individual charged criminally in that state with having failed to
provide for the support of a child or other individual to whom a duty of support is owed,
the governor may require a prosecutor to investigate the demand and report whether
a proceeding for support has been initiated or would be effective. If it appears that a
proceeding would be effective but has not been initiated, the governor may delay honoring
the demand for a reasonable time to permit the initiation of a proceeding.

(c) If a proceeding for support has been initiated and the individual whose rendition is
demanded prevails, the governor may decline to honor the demand. If the petitioner prevails
and the individual whose rendition is demanded is subject to a support order, the governor
may decline to honor the demand if the individual is complying with the support order.

Sec. 84.

Minnesota Statutes 2014, section 626.556, subdivision 1, as amended by Laws
2015, chapter 4, section 1, is amended to read:

Subdivision 1.

Public policy.

(a) The legislature hereby declares that the public
policy of this state is to protect children whose health or welfare may be jeopardized
through physical abuse, neglect, or sexual abuse. While it is recognized that most parents
want to keep their children safe, sometimes circumstances or conditions interfere with
their ability to do so. When this occurs, the health and safety of the children shall must be
of paramount concern. Intervention and prevention efforts shall must address immediate
concerns for child safety and the ongoing risk of abuse or neglect and should engage the
protective capacities of families. In furtherance of this public policy, it is the intent of the
legislature under this section to:

(1) protect children and promote child safety;

(2) strengthen the family;

(3) make the home, school, and community safe for children by promoting
responsible child care in all settings; and

(4) provide, when necessary, a safe temporary or permanent home environment for
physically or sexually abused or neglected children.

(b) In addition, it is the policy of this state to:

(1) require the reporting of neglect or physical or sexual abuse of children in the
home, school, and community settings;

(2) provide for the voluntary reporting of abuse or neglect of children; to require
a family assessment, when appropriate, as the preferred response to reports not alleging
substantial child endangerment;

(3) require an investigation when the report alleges sexual abuse or substantial
child endangerment;

(4) provide a family assessment, if appropriate, when the report does not allege
sexual abuse or substantial child endangerment; and

(4) (5) provide protective, family support, and family preservation services when
needed in appropriate cases.

Sec. 85.

Minnesota Statutes 2014, section 626.556, subdivision 2, is amended to read:

Subd. 2.

Definitions.

As used in this section, the following terms have the meanings
given them unless the specific content indicates otherwise:

(a) "Family assessment" means a comprehensive assessment of child safety, risk of
subsequent child maltreatment, and family strengths and needs that is applied to a child
maltreatment report that does not allege sexual abuse or substantial child endangerment.
Family assessment does not include a determination as to whether child maltreatment
occurred but does determine the need for services to address the safety of family members
and the risk of subsequent maltreatment.

(b) "Investigation" means fact gathering related to the current safety of a child
and the risk of subsequent maltreatment that determines whether child maltreatment
occurred and whether child protective services are needed. An investigation must be used
when reports involve sexual abuse or substantial child endangerment, and for reports of
maltreatment in facilities required to be licensed under chapter 245A or 245D; under
sections 144.50 to 144.58 and 241.021; in a school as defined in sections 120A.05,
subdivisions 9, 11, and 13, and 124D.10; or in a nonlicensed personal care provider
association as defined in section 256B.0625, subdivision 19a.

(c) "Substantial child endangerment" means a person responsible for a child's care,
and in the case of sexual abuse includes a person who has a significant relationship to the
child as defined in section 609.341, or a person in a position of authority as defined in
section 609.341, who by act or omission, commits or attempts to commit an act against a
child under their care that constitutes any of the following:

(1) egregious harm as defined in section 260C.007, subdivision 14;

(2) sexual abuse as defined in paragraph (d);

(3) abandonment under section 260C.301, subdivision 2;

(4) (3) neglect as defined in paragraph (f), clause (2), that substantially endangers
the child's physical or mental health, including a growth delay, which may be referred to
as failure to thrive, that has been diagnosed by a physician and is due to parental neglect;

(5) (4) murder in the first, second, or third degree under section 609.185, 609.19, or
609.195;

(6) (5) manslaughter in the first or second degree under section 609.20 or 609.205;

(7) (6) assault in the first, second, or third degree under section 609.221, 609.222, or
609.223;

(8) (7) solicitation, inducement, and promotion of prostitution under section 609.322;

(9) (8) criminal sexual conduct under sections 609.342 to 609.3451;

(10) (9) solicitation of children to engage in sexual conduct under section 609.352;

(11) (10) malicious punishment or neglect or endangerment of a child under section
609.377 or 609.378;

(12) (11) use of a minor in sexual performance under section 617.246; or

(13) (12) parental behavior, status, or condition which mandates that the county
attorney file a termination of parental rights petition under section 260C.503, subdivision 2.

(d) "Sexual abuse" means the subjection of a child by a person responsible for the
child's care, by a person who has a significant relationship to the child, as defined in
section 609.341, or by a person in a position of authority, as defined in section 609.341,
subdivision 10, to any act which constitutes a violation of section 609.342 (criminal sexual
conduct in the first degree), 609.343 (criminal sexual conduct in the second degree),
609.344 (criminal sexual conduct in the third degree), 609.345 (criminal sexual conduct
in the fourth degree), or 609.3451 (criminal sexual conduct in the fifth degree). Sexual
abuse also includes any act which involves a minor which constitutes a violation of
prostitution offenses under sections 609.321 to 609.324 or 617.246. Sexual abuse includes
threatened sexual abuse which includes the status of a parent or household member
who has committed a violation which requires registration as an offender under section
243.166, subdivision 1b, paragraph (a) or (b), or required registration under section
243.166, subdivision 1b, paragraph (a) or (b).

(e) "Person responsible for the child's care" means (1) an individual functioning
within the family unit and having responsibilities for the care of the child such as a
parent, guardian, or other person having similar care responsibilities, or (2) an individual
functioning outside the family unit and having responsibilities for the care of the child
such as a teacher, school administrator, other school employees or agents, or other lawful
custodian of a child having either full-time or short-term care responsibilities including,
but not limited to, day care, babysitting whether paid or unpaid, counseling, teaching,
and coaching.

(f) "Neglect" means the commission or omission of any of the acts specified under
clauses (1) to (9), other than by accidental means:

(1) failure by a person responsible for a child's care to supply a child with necessary
food, clothing, shelter, health, medical, or other care required for the child's physical or
mental health when reasonably able to do so;

(2) failure to protect a child from conditions or actions that seriously endanger the
child's physical or mental health when reasonably able to do so, including a growth delay,
which may be referred to as a failure to thrive, that has been diagnosed by a physician and
is due to parental neglect;

(3) failure to provide for necessary supervision or child care arrangements
appropriate for a child after considering factors as the child's age, mental ability, physical
condition, length of absence, or environment, when the child is unable to care for the
child's own basic needs or safety, or the basic needs or safety of another child in their care;

(4) failure to ensure that the child is educated as defined in sections 120A.22 and
260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's
child with sympathomimetic medications, consistent with section 125A.091, subdivision 5;

(5) nothing in this section shall be construed to mean that a child is neglected solely
because the child's parent, guardian, or other person responsible for the child's care in
good faith selects and depends upon spiritual means or prayer for treatment or care of
disease or remedial care of the child in lieu of medical care; except that a parent, guardian,
or caretaker, or a person mandated to report pursuant to subdivision 3, has a duty to report
if a lack of medical care may cause serious danger to the child's health. This section does
not impose upon persons, not otherwise legally responsible for providing a child with
necessary food, clothing, shelter, education, or medical care, a duty to provide that care;

(6) prenatal exposure to a controlled substance, as defined in section 253B.02,
subdivision 2, used by the mother for a nonmedical purpose, as evidenced by withdrawal
symptoms in the child at birth, results of a toxicology test performed on the mother at
delivery or the child at birth, medical effects or developmental delays during the child's
first year of life that medically indicate prenatal exposure to a controlled substance, or the
presence of a fetal alcohol spectrum disorder;

(7) "medical neglect" as defined in section 260C.007, subdivision 6, clause (5);

(8) chronic and severe use of alcohol or a controlled substance by a parent or
person responsible for the care of the child that adversely affects the child's basic needs
and safety; or

(9) emotional harm from a pattern of behavior which contributes to impaired
emotional functioning of the child which may be demonstrated by a substantial and
observable effect in the child's behavior, emotional response, or cognition that is not
within the normal range for the child's age and stage of development, with due regard to
the child's culture.

(g) "Physical abuse" means any physical injury, mental injury, or threatened injury,
inflicted by a person responsible for the child's care on a child other than by accidental
means, or any physical or mental injury that cannot reasonably be explained by the child's
history of injuries, or any aversive or deprivation procedures, or regulated interventions,
that have not been authorized under section 125A.0942 or 245.825.

Abuse does not include reasonable and moderate physical discipline of a child
administered by a parent or legal guardian which does not result in an injury. Abuse does
not include the use of reasonable force by a teacher, principal, or school employee as
allowed by section 121A.582. Actions which are not reasonable and moderate include,
but are not limited to, any of the following that are done in anger or without regard to the
safety of the child:

(1) throwing, kicking, burning, biting, or cutting a child;

(2) striking a child with a closed fist;

(3) shaking a child under age three;

(4) striking or other actions which result in any nonaccidental injury to a child
under 18 months of age;

(5) unreasonable interference with a child's breathing;

(6) threatening a child with a weapon, as defined in section 609.02, subdivision 6;

(7) striking a child under age one four on the face or head;

(8) purposely giving a child poison, alcohol, or dangerous, harmful, or controlled
substances which were not prescribed for the child by a practitioner, in order to control or
punish the child; or other substances that substantially affect the child's behavior, motor
coordination, or judgment or that results in sickness or internal injury, or subjects the
child to medical procedures that would be unnecessary if the child were not exposed
to the substances;

(9) unreasonable physical confinement or restraint not permitted under section
609.379, including but not limited to tying, caging, or chaining; or

(10) in a school facility or school zone, an act by a person responsible for the child's
care that is a violation under section 121A.58.

(h) "Report" means any report communication received by the local welfare agency,
police department, county sheriff, or agency responsible for assessing or investigating
maltreatment child protection pursuant to this section that describes neglect or physical or
sexual abuse of a child and contains sufficient content to identify the child and any person
believed to be responsible for the neglect or abuse, if known.

(i) "Facility" means:

(1) a licensed or unlicensed day care facility, residential facility, agency, hospital,
sanitarium, or other facility or institution required to be licensed under sections 144.50 to
144.58, 241.021, or 245A.01 to 245A.16, or chapter 245D;

(2) a school as defined in sections 120A.05, subdivisions 9, 11, and 13; and
124D.10; or

(3) a nonlicensed personal care provider organization as defined in section
256B.0625, subdivision 19a.

(j) "Operator" means an operator or agency as defined in section 245A.02.

(k) "Commissioner" means the commissioner of human services.

(l) "Practice of social services," for the purposes of subdivision 3, includes but is
not limited to employee assistance counseling and the provision of guardian ad litem and
parenting time expeditor services.

(m) "Mental injury" means an injury to the psychological capacity or emotional
stability of a child as evidenced by an observable or substantial impairment in the child's
ability to function within a normal range of performance and behavior with due regard to
the child's culture.

(n) "Threatened injury" means a statement, overt act, condition, or status that
represents a substantial risk of physical or sexual abuse or mental injury. Threatened
injury includes, but is not limited to, exposing a child to a person responsible for the
child's care, as defined in paragraph (e), clause (1), who has:

(1) subjected a child to, or failed to protect a child from, an overt act or condition
that constitutes egregious harm, as defined in section 260C.007, subdivision 14, or a
similar law of another jurisdiction;

(2) been found to be palpably unfit under section 260C.301, subdivision 1, paragraph
(b), clause (4), or a similar law of another jurisdiction;

(3) committed an act that has resulted in an involuntary termination of parental rights
under section 260C.301, or a similar law of another jurisdiction; or

(4) committed an act that has resulted in the involuntary transfer of permanent
legal and physical custody of a child to a relative under Minnesota Statutes 2010, section
260C.201, subdivision 11, paragraph (d), clause (1), section 260C.515, subdivision 4, or a
similar law of another jurisdiction.

A child is the subject of a report of threatened injury when the responsible social
services agency receives birth match data under paragraph (o) from the Department of
Human Services.

(o) Upon receiving data under section 144.225, subdivision 2b, contained in a
birth record or recognition of parentage identifying a child who is subject to threatened
injury under paragraph (n), the Department of Human Services shall send the data to the
responsible social services agency. The data is known as "birth match" data. Unless the
responsible social services agency has already begun an investigation or assessment of the
report due to the birth of the child or execution of the recognition of parentage and the
parent's previous history with child protection, the agency shall accept the birth match
data as a report under this section. The agency may use either a family assessment or
investigation to determine whether the child is safe. All of the provisions of this section
apply. If the child is determined to be safe, the agency shall consult with the county
attorney to determine the appropriateness of filing a petition alleging the child is in need
of protection or services under section 260C.007, subdivision 6, clause (16), in order to
deliver needed services. If the child is determined not to be safe, the agency and the county
attorney shall take appropriate action as required under section 260C.503, subdivision 2.

(p) Persons who conduct assessments or investigations under this section shall take
into account accepted child-rearing practices of the culture in which a child participates
and accepted teacher discipline practices, which are not injurious to the child's health,
welfare, and safety.

(q) "Accidental" means a sudden, not reasonably foreseeable, and unexpected
occurrence or event which:

(1) is not likely to occur and could not have been prevented by exercise of due
care; and

(2) if occurring while a child is receiving services from a facility, happens when the
facility and the employee or person providing services in the facility are in compliance
with the laws and rules relevant to the occurrence or event.

(r) "Nonmaltreatment mistake" means:

(1) at the time of the incident, the individual was performing duties identified in the
center's child care program plan required under Minnesota Rules, part 9503.0045;

(2) the individual has not been determined responsible for a similar incident that
resulted in a finding of maltreatment for at least seven years;

(3) the individual has not been determined to have committed a similar
nonmaltreatment mistake under this paragraph for at least four years;

(4) any injury to a child resulting from the incident, if treated, is treated only with
remedies that are available over the counter, whether ordered by a medical professional or
not; and

(5) except for the period when the incident occurred, the facility and the individual
providing services were both in compliance with all licensing requirements relevant to the
incident.

This definition only applies to child care centers licensed under Minnesota
Rules, chapter 9503. If clauses (1) to (5) apply, rather than making a determination of
substantiated maltreatment by the individual, the commissioner of human services shall
determine that a nonmaltreatment mistake was made by the individual.

Sec. 86.

Minnesota Statutes 2014, section 626.556, subdivision 3, is amended to read:

Subd. 3.

Persons mandated to report; persons voluntarily reporting.

(a) A
person who knows or has reason to believe a child is being neglected or physically or
sexually abused, as defined in subdivision 2, or has been neglected or physically or
sexually abused within the preceding three years, shall immediately report the information
to the local welfare agency, agency responsible for assessing or investigating the report,
police department, or the county sheriff if the person is:

(1) a professional or professional's delegate who is engaged in the practice of
the healing arts, social services, hospital administration, psychological or psychiatric
treatment, child care, education, correctional supervision, probation and correctional
services, or law enforcement; or

(2) employed as a member of the clergy and received the information while
engaged in ministerial duties, provided that a member of the clergy is not required by
this subdivision to report information that is otherwise privileged under section 595.02,
subdivision 1, paragraph (c).

The police department or the county sheriff, upon receiving a report, shall
immediately notify the local welfare agency or agency responsible for assessing or
investigating the report, orally and in writing. The local welfare agency, or agency
responsible for assessing or investigating the report, upon receiving a report, shall
immediately notify the local police department or the county sheriff orally and in writing.
The county sheriff and the head of every local welfare agency, agency responsible
for assessing or investigating reports, and police department shall each designate a
person within their agency, department, or office who is responsible for ensuring that
the notification duties of this paragraph and paragraph (b) are carried out. Nothing in
this subdivision shall be construed to require more than one report from any institution,
facility, school, or agency.

(b) Any person may voluntarily report to the local welfare agency, agency responsible
for assessing or investigating the report, police department, or the county sheriff if the
person knows, has reason to believe, or suspects a child is being or has been neglected or
subjected to physical or sexual abuse. The police department or the county sheriff, upon
receiving a report, shall immediately notify the local welfare agency or agency responsible
for assessing or investigating the report, orally and in writing. The local welfare agency or
agency responsible for assessing or investigating the report, upon receiving a report, shall
immediately notify the local police department or the county sheriff orally and in writing.

(c) A person mandated to report physical or sexual child abuse or neglect occurring
within a licensed facility shall report the information to the agency responsible for
licensing the facility under sections 144.50 to 144.58; 241.021; 245A.01 to 245A.16; or
chapter 245D; or a nonlicensed personal care provider organization as defined in section
256B.0625, subdivision 19. A health or corrections agency receiving a report may request
the local welfare agency to provide assistance pursuant to subdivisions 10, 10a, and 10b. A
board or other entity whose licensees perform work within a school facility, upon receiving
a complaint of alleged maltreatment, shall provide information about the circumstances of
the alleged maltreatment to the commissioner of education. Section 13.03, subdivision 4,
applies to data received by the commissioner of education from a licensing entity.

(d) Any person mandated to report shall receive a summary of the disposition of
any report made by that reporter, including whether the case has been opened for child
protection or other services, or if a referral has been made to a community organization,
unless release would be detrimental to the best interests of the child. Any person who is
not mandated to report shall, upon request to the local welfare agency, receive a concise
summary of the disposition of any report made by that reporter, unless release would be
detrimental to the best interests of the child. Notification requirements under subdivision
10 apply to all reports received under this section.

(e) For purposes of this section, "immediately" means as soon as possible but in
no event longer than 24 hours.

Sec. 87.

Minnesota Statutes 2014, section 626.556, subdivision 6a, is amended to read:

Subd. 6a.

Failure to notify.

If a local welfare agency receives a report under
subdivision 3, paragraph (a) or (b), and fails to notify the local police department or county
sheriff as required by subdivision 3, paragraph (a) or (b) 10, the person within the agency
who is responsible for ensuring that notification is made shall be subject to disciplinary
action in keeping with the agency's existing policy or collective bargaining agreement on
discipline of employees. If a local police department or a county sheriff receives a report
under subdivision 3, paragraph (a) or (b), and fails to notify the local welfare agency as
required by subdivision 3, paragraph (a) or (b) 10, the person within the police department
or county sheriff's office who is responsible for ensuring that notification is made shall be
subject to disciplinary action in keeping with the agency's existing policy or collective
bargaining agreement on discipline of employees.

Sec. 88.

Minnesota Statutes 2014, section 626.556, subdivision 7, as amended by Laws
2015, chapter 4, section 2, is amended to read:

Subd. 7.

Report; information provided to parent; reporter.

(a) An oral report
shall be made immediately by telephone or otherwise. An oral report made by a person
required under subdivision 3 to report shall be followed within 72 hours, exclusive
of weekends and holidays, by a report in writing to the appropriate police department,
the county sheriff, the agency responsible for assessing or investigating the report, or
the local welfare agency.

(b) The local welfare agency shall determine if the report is accepted for an
assessment or investigation to be screened in or out as soon as possible but in no event
longer than 24 hours after the report is received. When determining whether a report will
be screened in or out, the agency receiving the report must consider, when relevant, all
previous history, including reports that were screened out. The agency may communicate
with treating professionals and individuals specified under subdivision 10, paragraph
(i), clause (3), item (iii).

(b) (c) Any report shall be of sufficient content to identify the child, any person
believed to be responsible for the abuse or neglect of the child if the person is known, the
nature and extent of the abuse or neglect and the name and address of the reporter. The
local welfare agency or agency responsible for assessing or investigating the report shall
accept a report made under subdivision 3 notwithstanding refusal by a reporter to provide
the reporter's name or address as long as the report is otherwise sufficient under this
paragraph. Written reports received by a police department or the county sheriff shall be
forwarded immediately to the local welfare agency or the agency responsible for assessing
or investigating the report. The police department or the county sheriff may keep copies of
reports received by them. Copies of written reports received by a local welfare department
or the agency responsible for assessing or investigating the report shall be forwarded
immediately to the local police department or the county sheriff.

(c) (d) When requested, the agency responsible for assessing or investigating a
report shall inform the reporter within ten days after the report was made, either orally or
in writing, whether the report was accepted or not. If the responsible agency determines
the report does not constitute a report under this section, the agency shall advise the
reporter the report was screened out. Any person mandated to report shall receive a
summary of the disposition of any report made by that reporter, including whether the case
has been opened for child protection or other services, or if a referral has been made to a
community organization, unless release would be detrimental to the best interests of the
child. Any person who is not mandated to report shall, upon request to the local welfare
agency, receive a concise summary of the disposition of any report made by that reporter,
unless release would be detrimental to the best interests of the child.

(e) Reports that are not screened in must be maintained in accordance with
subdivision 11c, paragraph (a).

(d) (f) Notwithstanding paragraph (a), the commissioner of education must inform
the parent, guardian, or legal custodian of the child who is the subject of a report of
alleged maltreatment in a school facility within ten days of receiving the report, either
orally or in writing, whether the commissioner is assessing or investigating the report
of alleged maltreatment.

(e) (g) Regardless of whether a report is made under this subdivision, as soon as
practicable after a school receives information regarding an incident that may constitute
maltreatment of a child in a school facility, the school shall inform the parent, legal
guardian, or custodian of the child that an incident has occurred that may constitute
maltreatment of the child, when the incident occurred, and the nature of the conduct
that may constitute maltreatment.

(f) (h) A written copy of a report maintained by personnel of agencies, other than
welfare or law enforcement agencies, which are subject to chapter 13 shall be confidential.
An individual subject of the report may obtain access to the original report as provided
by subdivision 11.

Sec. 89.

Minnesota Statutes 2014, section 626.556, is amended by adding a subdivision
to read:

Subd. 7a.

Mandatory guidance for screening reports.

(a) Child protection intake
workers, supervisors, and others involved with child protection screening shall, at a
minimum, follow the guidance provided in the Minnesota Child Maltreatment Screening
Guidelines when screening reports and, when notified by the commissioner of human
services, shall immediately implement updated procedures and protocols.

(b) Any modifications to the screening guidelines by the county agency must be
preapproved by the commissioner of human services and must not be less protective of
children than is mandated by statute. The guidelines may provide additional protections
for children but must not limit reports that are screened in or provide additional limits on
consideration of reports that were screened out in making screening determinations.

Sec. 90.

Minnesota Statutes 2014, section 626.556, subdivision 10, is amended to read:

Subd. 10.

Duties of local welfare agency and local law enforcement agency upon
receipt of report; mandatory notification between police or sheriff and agency.

(a)
The police department or the county sheriff shall immediately notify the local welfare
agency or agency responsible for child protection reports under this section orally and
in writing when a report is received. The local welfare agency or agency responsible for
child protection reports shall immediately notify the local police department or the county
sheriff orally and in writing when a report is received. The county sheriff and the head of
every local welfare agency, agency responsible for child protection reports, and police
department shall each designate a person within their agency, department, or office who is
responsible for ensuring that the notification duties of this paragraph are carried out.

(b) Upon receipt of a report, the local welfare agency shall determine whether to
conduct a family assessment or an investigation as appropriate to prevent or provide a
remedy for child maltreatment. The local welfare agency:

(1) shall conduct an investigation on reports involving sexual abuse or substantial
child endangerment;

(2) shall begin an immediate investigation if, at any time when it is using a family
assessment response, it determines that there is reason to believe that sexual abuse or
substantial child endangerment or a serious threat to the child's safety exists;

(3) may conduct a family assessment for reports that do not allege sexual abuse or
substantial child endangerment. In determining that a family assessment is appropriate,
the local welfare agency may consider issues of child safety, parental cooperation, and
the need for an immediate response; and

(4) may conduct a family assessment on a report that was initially screened and
assigned for an investigation. In determining that a complete investigation is not required,
the local welfare agency must document the reason for terminating the investigation and
notify the local law enforcement agency if the local law enforcement agency is conducting
a joint investigation.

If the report alleges neglect, physical abuse, or sexual abuse by a parent, guardian,
or individual functioning within the family unit as a person responsible for the child's
care, or sexual abuse by a person with a significant relationship to the child when that
person resides in the child's household or by a sibling, the local welfare agency shall
immediately conduct a family assessment or investigation as identified in clauses (1)
to (4). In conducting a family assessment or investigation, the local welfare agency
shall gather information on the existence of substance abuse and domestic violence and
offer services for purposes of preventing future child maltreatment, safeguarding and
enhancing the welfare of the abused or neglected minor, and supporting and preserving
family life whenever possible. If the report alleges a violation of a criminal statute
involving sexual abuse, physical abuse, or neglect or endangerment, under section
609.378, the local law enforcement agency and local welfare agency shall coordinate the
planning and execution of their respective investigation and assessment efforts to avoid a
duplication of fact-finding efforts and multiple interviews. Each agency shall prepare a
separate report of the results of its investigation or assessment. In cases of alleged child
maltreatment resulting in death, the local agency may rely on the fact-finding efforts of a
law enforcement investigation to make a determination of whether or not maltreatment
occurred. When necessary the local welfare agency shall seek authority to remove the
child from the custody of a parent, guardian, or adult with whom the child is living. In
performing any of these duties, the local welfare agency shall maintain appropriate records.

If the family assessment or investigation indicates there is a potential for abuse of
alcohol or other drugs by the parent, guardian, or person responsible for the child's care,
the local welfare agency shall conduct a chemical use assessment pursuant to Minnesota
Rules, part 9530.6615.

(b) (c) When a local agency receives a report or otherwise has information indicating
that a child who is a client, as defined in section 245.91, has been the subject of physical
abuse, sexual abuse, or neglect at an agency, facility, or program as defined in section
245.91, it shall, in addition to its other duties under this section, immediately inform the
ombudsman established under sections 245.91 to 245.97. The commissioner of education
shall inform the ombudsman established under sections 245.91 to 245.97 of reports
regarding a child defined as a client in section 245.91 that maltreatment occurred at a
school as defined in sections 120A.05, subdivisions 9, 11, and 13, and 124D.10.

(c) (d) Authority of the local welfare agency responsible for assessing or
investigating the child abuse or neglect report, the agency responsible for assessing or
investigating the report, and of the local law enforcement agency for investigating the
alleged abuse or neglect includes, but is not limited to, authority to interview, without
parental consent, the alleged victim and any other minors who currently reside with or
who have resided with the alleged offender. The interview may take place at school or at
any facility or other place where the alleged victim or other minors might be found or the
child may be transported to, and the interview conducted at, a place appropriate for the
interview of a child designated by the local welfare agency or law enforcement agency.
The interview may take place outside the presence of the alleged offender or parent, legal
custodian, guardian, or school official. For family assessments, it is the preferred practice
to request a parent or guardian's permission to interview the child prior to conducting the
child interview, unless doing so would compromise the safety assessment. Except as
provided in this paragraph, the parent, legal custodian, or guardian shall be notified by
the responsible local welfare or law enforcement agency no later than the conclusion of
the investigation or assessment that this interview has occurred. Notwithstanding rule 32
of the Minnesota Rules of Procedure for Juvenile Courts, the juvenile court may, after
hearing on an ex parte motion by the local welfare agency, order that, where reasonable
cause exists, the agency withhold notification of this interview from the parent, legal
custodian, or guardian. If the interview took place or is to take place on school property,
the order shall specify that school officials may not disclose to the parent, legal custodian,
or guardian the contents of the notification of intent to interview the child on school
property, as provided under this paragraph, and any other related information regarding
the interview that may be a part of the child's school record. A copy of the order shall be
sent by the local welfare or law enforcement agency to the appropriate school official.

(d) (e) When the local welfare, local law enforcement agency, or the agency
responsible for assessing or investigating a report of maltreatment determines that an
interview should take place on school property, written notification of intent to interview
the child on school property must be received by school officials prior to the interview.
The notification shall include the name of the child to be interviewed, the purpose of the
interview, and a reference to the statutory authority to conduct an interview on school
property. For interviews conducted by the local welfare agency, the notification shall
be signed by the chair of the local social services agency or the chair's designee. The
notification shall be private data on individuals subject to the provisions of this paragraph.
School officials may not disclose to the parent, legal custodian, or guardian the contents
of the notification or any other related information regarding the interview until notified
in writing by the local welfare or law enforcement agency that the investigation or
assessment has been concluded, unless a school employee or agent is alleged to have
maltreated the child. Until that time, the local welfare or law enforcement agency or the
agency responsible for assessing or investigating a report of maltreatment shall be solely
responsible for any disclosures regarding the nature of the assessment or investigation.

Except where the alleged offender is believed to be a school official or employee,
the time and place, and manner of the interview on school premises shall be within the
discretion of school officials, but the local welfare or law enforcement agency shall have
the exclusive authority to determine who may attend the interview. The conditions as to
time, place, and manner of the interview set by the school officials shall be reasonable and
the interview shall be conducted not more than 24 hours after the receipt of the notification
unless another time is considered necessary by agreement between the school officials and
the local welfare or law enforcement agency. Where the school fails to comply with the
provisions of this paragraph, the juvenile court may order the school to comply. Every
effort must be made to reduce the disruption of the educational program of the child, other
students, or school staff when an interview is conducted on school premises.

(e) (f) Where the alleged offender or a person responsible for the care of the alleged
victim or other minor prevents access to the victim or other minor by the local welfare
agency, the juvenile court may order the parents, legal custodian, or guardian to produce
the alleged victim or other minor for questioning by the local welfare agency or the local
law enforcement agency outside the presence of the alleged offender or any person
responsible for the child's care at reasonable places and times as specified by court order.

(f) (g) Before making an order under paragraph (e) (f), the court shall issue an order
to show cause, either upon its own motion or upon a verified petition, specifying the basis
for the requested interviews and fixing the time and place of the hearing. The order to
show cause shall be served personally and shall be heard in the same manner as provided
in other cases in the juvenile court. The court shall consider the need for appointment of a
guardian ad litem to protect the best interests of the child. If appointed, the guardian ad
litem shall be present at the hearing on the order to show cause.

(g) (h) The commissioner of human services, the ombudsman for mental health and
developmental disabilities, the local welfare agencies responsible for investigating reports,
the commissioner of education, and the local law enforcement agencies have the right to
enter facilities as defined in subdivision 2 and to inspect and copy the facility's records,
including medical records, as part of the investigation. Notwithstanding the provisions of
chapter 13, they also have the right to inform the facility under investigation that they are
conducting an investigation, to disclose to the facility the names of the individuals under
investigation for abusing or neglecting a child, and to provide the facility with a copy of
the report and the investigative findings.

(h) (i) The local welfare agency responsible for conducting a family assessment or
investigation shall collect available and relevant information to determine child safety,
risk of subsequent child maltreatment, and family strengths and needs and share not public
information with an Indian's tribal social services agency without violating any law of the
state that may otherwise impose duties of confidentiality on the local welfare agency in
order to implement the tribal state agreement. The local welfare agency or the agency
responsible for investigating the report shall collect available and relevant information
to ascertain whether maltreatment occurred and whether protective services are needed.
Information collected includes, when relevant, information with regard to the person
reporting the alleged maltreatment, including the nature of the reporter's relationship to the
child and to the alleged offender, and the basis of the reporter's knowledge for the report;
the child allegedly being maltreated; the alleged offender; the child's caretaker; and other
collateral sources having relevant information related to the alleged maltreatment. The
local welfare agency or the agency responsible for investigating the report may make a
determination of no maltreatment early in an investigation, and close the case and retain
immunity, if the collected information shows no basis for a full investigation.

Information relevant to the assessment or investigation must be asked for, and
may include:

(1) the child's sex and age, prior reports of maltreatment, information relating
to developmental functioning, credibility of the child's statement, and whether the
information provided under this clause is consistent with other information collected
during the course of the assessment or investigation;

(2) the alleged offender's age, a record check for prior reports of maltreatment, and
criminal charges and convictions. The local welfare agency or the agency responsible for
assessing or investigating the report must provide the alleged offender with an opportunity
to make a statement. The alleged offender may submit supporting documentation relevant
to the assessment or investigation;

(3) collateral source information regarding the alleged maltreatment and care of the
child. Collateral information includes, when relevant: (i) a medical examination of the
child; (ii) prior medical records relating to the alleged maltreatment or the care of the
child maintained by any facility, clinic, or health care professional and an interview with
the treating professionals; and (iii) interviews with the child's caretakers, including the
child's parent, guardian, foster parent, child care provider, teachers, counselors, family
members, relatives, and other persons who may have knowledge regarding the alleged
maltreatment and the care of the child; and

(4) information on the existence of domestic abuse and violence in the home of
the child, and substance abuse.

Nothing in this paragraph precludes the local welfare agency, the local law
enforcement agency, or the agency responsible for assessing or investigating the report
from collecting other relevant information necessary to conduct the assessment or
investigation. Notwithstanding sections 13.384 or 144.291 to 144.298, the local welfare
agency has access to medical data and records for purposes of clause (3). Notwithstanding
the data's classification in the possession of any other agency, data acquired by the
local welfare agency or the agency responsible for assessing or investigating the report
during the course of the assessment or investigation are private data on individuals and
must be maintained in accordance with subdivision 11. Data of the commissioner of
education collected or maintained during and for the purpose of an investigation of
alleged maltreatment in a school are governed by this section, notwithstanding the data's
classification as educational, licensing, or personnel data under chapter 13.

In conducting an assessment or investigation involving a school facility as defined
in subdivision 2, paragraph (i), the commissioner of education shall collect investigative
reports and data that are relevant to a report of maltreatment and are from local law
enforcement and the school facility.

(i) (j) Upon receipt of a report, the local welfare agency shall conduct a face-to-face
contact with the child reported to be maltreated and with the child's primary caregiver
sufficient to complete a safety assessment and ensure the immediate safety of the child.
The face-to-face contact with the child and primary caregiver shall occur immediately
if sexual abuse or substantial child endangerment is alleged and within five calendar
days for all other reports. If the alleged offender was not already interviewed as the
primary caregiver, the local welfare agency shall also conduct a face-to-face interview
with the alleged offender in the early stages of the assessment or investigation. At the
initial contact, the local child welfare agency or the agency responsible for assessing or
investigating the report must inform the alleged offender of the complaints or allegations
made against the individual in a manner consistent with laws protecting the rights of the
person who made the report. The interview with the alleged offender may be postponed if
it would jeopardize an active law enforcement investigation.

(j) (k) When conducting an investigation, the local welfare agency shall use a
question and answer interviewing format with questioning as nondirective as possible to
elicit spontaneous responses. For investigations only, the following interviewing methods
and procedures must be used whenever possible when collecting information:

(1) audio recordings of all interviews with witnesses and collateral sources; and

(2) in cases of alleged sexual abuse, audio-video recordings of each interview with
the alleged victim and child witnesses.

(k) (l) In conducting an assessment or investigation involving a school facility
as defined in subdivision 2, paragraph (i), the commissioner of education shall collect
available and relevant information and use the procedures in paragraphs (i) (j), (k), and
subdivision 3d, except that the requirement for face-to-face observation of the child
and face-to-face interview of the alleged offender is to occur in the initial stages of the
assessment or investigation provided that the commissioner may also base the assessment
or investigation on investigative reports and data received from the school facility and
local law enforcement, to the extent those investigations satisfy the requirements of
paragraphs (i) and (j), (k), and subdivision 3d.

Sec. 91.

Minnesota Statutes 2014, section 626.556, subdivision 10e, is amended to read:

Subd. 10e.

Determinations.

(a) The local welfare agency shall conclude the family
assessment or the investigation within 45 days of the receipt of a report. The conclusion of
the assessment or investigation may be extended to permit the completion of a criminal
investigation or the receipt of expert information requested within 45 days of the receipt
of the report.

(b) After conducting a family assessment, the local welfare agency shall determine
whether services are needed to address the safety of the child and other family members
and the risk of subsequent maltreatment.

(c) After conducting an investigation, the local welfare agency shall make two
determinations: first, whether maltreatment has occurred; and second, whether child
protective services are needed. No determination of maltreatment shall be made when the
alleged perpetrator is a child under the age of ten.

(d) If the commissioner of education conducts an assessment or investigation,
the commissioner shall determine whether maltreatment occurred and what corrective
or protective action was taken by the school facility. If a determination is made that
maltreatment has occurred, the commissioner shall report to the employer, the school
board, and any appropriate licensing entity the determination that maltreatment occurred
and what corrective or protective action was taken by the school facility. In all other cases,
the commissioner shall inform the school board or employer that a report was received,
the subject of the report, the date of the initial report, the category of maltreatment alleged
as defined in paragraph (f), the fact that maltreatment was not determined, and a summary
of the specific reasons for the determination.

(e) When maltreatment is determined in an investigation involving a facility,
the investigating agency shall also determine whether the facility or individual was
responsible, or whether both the facility and the individual were responsible for the
maltreatment using the mitigating factors in paragraph (i). Determinations under this
subdivision must be made based on a preponderance of the evidence and are private data
on individuals or nonpublic data as maintained by the commissioner of education.

(f) For the purposes of this subdivision, "maltreatment" means any of the following
acts or omissions:

(1) physical abuse as defined in subdivision 2, paragraph (g);

(2) neglect as defined in subdivision 2, paragraph (f);

(3) sexual abuse as defined in subdivision 2, paragraph (d);

(4) mental injury as defined in subdivision 2, paragraph (m); or

(5) maltreatment of a child in a facility as defined in subdivision 2, paragraph (i).

(g) For the purposes of this subdivision, a determination that child protective
services are needed means that the local welfare agency has documented conditions
during the assessment or investigation sufficient to cause a child protection worker, as
defined in section 626.559, subdivision 1, to conclude that a child is at significant risk of
maltreatment if protective intervention is not provided and that the individuals responsible
for the child's care have not taken or are not likely to take actions to protect the child
from maltreatment or risk of maltreatment.

(h) This subdivision does not mean that maltreatment has occurred solely because
the child's parent, guardian, or other person responsible for the child's care in good faith
selects and depends upon spiritual means or prayer for treatment or care of disease
or remedial care of the child, in lieu of medical care. However, if lack of medical care
may result in serious danger to the child's health, the local welfare agency may ensure
that necessary medical services are provided to the child.

(i) When determining whether the facility or individual is the responsible party, or
whether both the facility and the individual are responsible for determined maltreatment in
a facility, the investigating agency shall consider at least the following mitigating factors:

(1) whether the actions of the facility or the individual caregivers were according to,
and followed the terms of, an erroneous physician order, prescription, individual care plan,
or directive; however, this is not a mitigating factor when the facility or caregiver was
responsible for the issuance of the erroneous order, prescription, individual care plan, or
directive or knew or should have known of the errors and took no reasonable measures to
correct the defect before administering care;

(2) comparative responsibility between the facility, other caregivers, and
requirements placed upon an employee, including the facility's compliance with related
regulatory standards and the adequacy of facility policies and procedures, facility training,
an individual's participation in the training, the caregiver's supervision, and facility staffing
levels and the scope of the individual employee's authority and discretion; and

(3) whether the facility or individual followed professional standards in exercising
professional judgment.

The evaluation of the facility's responsibility under clause (2) must not be based on the
completeness of the risk assessment or risk reduction plan required under section 245A.66,
but must be based on the facility's compliance with the regulatory standards for policies and
procedures, training, and supervision as cited in Minnesota Statutes and Minnesota Rules.

(j) Notwithstanding paragraph (i), when maltreatment is determined to have been
committed by an individual who is also the facility license holder, both the individual and
the facility must be determined responsible for the maltreatment, and both the background
study disqualification standards under section 245C.15, subdivision 4, and the licensing
actions under sections 245A.06 or 245A.07 apply.

(k) Individual counties may implement more detailed definitions or criteria that
indicate which allegations to investigate, as long as a county's policies are consistent
with the definitions in the statutes and rules and are approved by the county board. Each
local welfare agency shall periodically inform mandated reporters under subdivision 3
who work in the county of the definitions of maltreatment in the statutes and rules and any
additional definitions or criteria that have been approved by the county board.

Sec. 92.

Minnesota Statutes 2014, section 626.556, subdivision 10j, is amended to read:

Subd. 10j.

Release of data to mandated reporters.

(a) A local social services or
child protection agency, or the agency responsible for assessing or investigating the report
of maltreatment, may shall provide relevant private data on individuals obtained under
this section to a mandated reporters reporter who made the report and who have has an
ongoing responsibility for the health, education, or welfare of a child affected by the data,
unless the agency determines that providing the data would not be in the best interests
of the child. The agency may provide the data to other mandated reporters with ongoing
responsibility for the health, education, or welfare of the child. Mandated reporters with
ongoing responsibility for the health, education, or welfare of a child affected by the data
include the child's teachers or other appropriate school personnel, foster parents, health
care providers, respite care workers, therapists, social workers, child care providers,
residential care staff, crisis nursery staff, probation officers, and court services personnel.
Under this section, a mandated reporter need not have made the report to be considered a
person with ongoing responsibility for the health, education, or welfare of a child affected
by the data. Data provided under this section must be limited to data pertinent to the
individual's responsibility for caring for the child.

(b) A reporter who receives private data on individuals under this subdivision must
treat the data according to that classification, regardless of whether the reporter is an
employee of a government entity. The remedies and penalties under sections 13.08 and
13.09 apply if a reporter releases data in violation of this section or other law.

Sec. 93.

Minnesota Statutes 2014, section 626.556, subdivision 10m, is amended to
read:

Subd. 10m.

Provision of child protective services; consultation with county
attorney.

(a) The local welfare agency shall create a written plan, in collaboration with
the family whenever possible, within 30 days of the determination that child protective
services are needed or upon joint agreement of the local welfare agency and the family
that family support and preservation services are needed. Child protective services for a
family are voluntary unless ordered by the court.

(b) The local welfare agency shall consult with the county attorney to determine the
appropriateness of filing a petition alleging the child is in need of protection or services
under section 260C.007, subdivision 6, if:

(1) the family does not accept or comply with a plan for child protective services;

(2) voluntary child protective services may not provide sufficient protection for the
child; or

(3) the family is not cooperating with an investigation.

If the agency responsible for child protection under this section is an Indian tribe
social service agency, the agency shall consult with the tribal authority that would be
responsible for filing a petition.

Sec. 94.

Minnesota Statutes 2014, section 626.556, subdivision 11c, is amended to read:

Subd. 11c.

Welfare, court services agency, and school records maintained;
county duty to maintain reports.

Notwithstanding sections 138.163 and 138.17,
records maintained or records derived from reports of abuse by local welfare agencies,
agencies responsible for assessing or investigating the report, court services agencies, or
schools under this section shall be destroyed as provided in paragraphs (a) to (d) (e) by
the responsible authority.

(a) For reports that were not screened in, family assessment cases, and cases
where an investigation results in no determination of maltreatment or the need for child
protective services, the assessment or investigation records must be maintained by the
local welfare agency for a period of four five years after the date of the final entry in the
case record. Records under this paragraph may not be used for employment, background
checks, or purposes other than to assist in future risk and safety assessments.

(b) All records relating to reports which, upon investigation, indicate either
maltreatment or a need for child protective services shall be maintained for ten years after
the date of the final entry in the case record.

(c) All records regarding a report of maltreatment, including any notification of
intent to interview which was received by a school under subdivision 10, paragraph (d)
(e), shall be destroyed by the school when ordered to do so by the agency conducting the
assessment or investigation. The agency shall order the destruction of the notification
when other records relating to the report under investigation or assessment are destroyed
under this subdivision.

(d) Private or confidential data released to a court services agency under subdivision
10h must be destroyed by the court services agency when ordered to do so by the local
welfare agency that released the data. The local welfare agency or agency responsible for
assessing or investigating the report shall order destruction of the data when other records
relating to the assessment or investigation are destroyed under this subdivision.

(e) For reports alleging child maltreatment that were not accepted for assessment
or investigation, counties shall:

(1) maintain sufficient information to identify repeat reports alleging maltreatment
of the same child or children for 365 days five years from the date the report was screened
out., and the commissioner of human services shall specify to the counties the minimum
information needed to accomplish this purpose. Counties shall;

(2) document the reason as to why the report was not accepted for assessment or
investigation; and

(3) enter this the data under clauses (1) and (2) into the state social services
information system.

Sec. 95.

Minnesota Statutes 2014, section 626.556, is amended by adding a subdivision
to read:

Subd. 16.

Commissioner's duty to provide oversight; quality assurance reviews;
annual summary results of reviews.

(a) The commissioner shall develop a plan to
perform quality assurance reviews of county agency screening practices and decisions.
The commissioner shall, during quality assurance reviews of county agency screening
practices, assess for evidence that the screening practices and decisions have followed the
guidelines for cultural competence issued by the Department of Human Services. The
commissioner shall provide oversight and guidance to counties to ensure the consistent
application of screening guidelines, thorough and appropriate screening decisions, and
correct documentation and maintenance of reports.

(b) The commissioner shall produce an annual report of the summary results of
the reviews. The report is public information and must be provided to the chairs and
ranking minority members of the legislative committees having jurisdiction over child
protection issues.

Sec. 96.

Laws 2014, chapter 189, section 5, is amended to read:

Sec. 5.

Minnesota Statutes 2012, section 518C.201, is amended to read:

518C.201 BASES FOR JURISDICTION OVER NONRESIDENT.

(a) In a proceeding to establish, or enforce, or modify a support order or to determine
parentage of a child, a tribunal of this state may exercise personal jurisdiction over a
nonresident individual or the individual's guardian or conservator if:

(1) the individual is personally served with a summons or comparable document
within this state;

(2) the individual submits to the jurisdiction of this state by consent, by entering a
general appearance, or by filing a responsive document having the effect of waiving any
contest to personal jurisdiction;

(3) the individual resided with the child in this state;

(4) the individual resided in this state and provided prenatal expenses or support
for the child;

(5) the child resides in this state as a result of the acts or directives of the individual;

(6) the individual engaged in sexual intercourse in this state and the child may have
been conceived by that act of intercourse;

(7) the individual asserted parentage of a child under sections 257.51 to 257.75; or

(8) there is any other basis consistent with the constitutions of this state and the
United States for the exercise of personal jurisdiction.

(b) The bases of personal jurisdiction in paragraph (a) or in any other law of this state
may not be used to acquire personal jurisdiction for a tribunal of this state to modify a child
support order of another state unless the requirements of section 518C.611 are met, or, in
the case of a foreign support order, unless the requirements of section 518C.615 are met.

Sec. 97.

Laws 2014, chapter 189, section 10, is amended to read:

Sec. 10.

Minnesota Statutes 2012, section 518C.206, is amended to read:

518C.206 ENFORCEMENT AND MODIFICATION OF SUPPORT ORDER
BY TRIBUNAL HAVING CONTINUING JURISDICTION TO ENFORCE CHILD
SUPPORT ORDER.

(a) A tribunal of this state that has issued a child support order consistent with the
law of this state may serve as an initiating tribunal to request a tribunal of another state
to enforce:

(1) the order if the order is the controlling order and has not been modified by
a tribunal of another state that assumed jurisdiction pursuant to this chapter or a law
substantially similar to this chapter the Uniform Interstate Family Support Act; or

(2) a money judgment for arrears of support and interest on the order accrued before
a determination that an order of a tribunal of another state is the controlling order.

(b) A tribunal of this state having continuing, exclusive jurisdiction over a support
order may act as a responding tribunal to enforce the order.

Sec. 98.

Laws 2014, chapter 189, section 11, is amended to read:

Sec. 11.

Minnesota Statutes 2012, section 518C.207, is amended to read:

518C.207 RECOGNITION DETERMINATION OF CONTROLLING CHILD
SUPPORT ORDER.

(a) If a proceeding is brought under this chapter and only one tribunal has issued a
child support order, the order of that tribunal is controlling controls and must be recognized.

(b) If a proceeding is brought under this chapter, and two or more child support
orders have been issued by tribunals of this state, another state, or a foreign country with
regard to the same obligor and child, a tribunal of this state having personal jurisdiction
over both the obligor and the individual obligee shall apply the following rules and by
order shall determine which order controls and must be recognized:

(1) If only one of the tribunals would have continuing, exclusive jurisdiction under
this chapter, the order of that tribunal is controlling controls.

(2) If more than one of the tribunals would have continuing, exclusive jurisdiction
under this chapter:

(i) an order issued by a tribunal in the current home state of the child controls; or

(ii) if an order has not been issued in the current home state of the child, the order
most recently issued controls.

(3) If none of the tribunals would have continuing, exclusive jurisdiction under this
chapter, the tribunal of this state shall issue a child support order, which controls.

(c) If two or more child support orders have been issued for the same obligor and
child, upon request of a party who is an individual or that is a support enforcement agency,
a tribunal of this state having personal jurisdiction over both the obligor and the obligee
who is an individual shall determine which order controls under paragraph (b). The
request may be filed with a registration for enforcement or registration for modification
pursuant to sections 518C.601 to 518C.616, or may be filed as a separate proceeding.

(d) A request to determine which is the controlling order must be accompanied
by a copy of every child support order in effect and the applicable record of payments.
The requesting party shall give notice of the request to each party whose rights may
be affected by the determination.

(e) The tribunal that issued the controlling order under paragraph (a), (b), or (c) has
continuing jurisdiction to the extent provided in section 518C.205, or 518C.206.

(f) A tribunal of this state which determines by order which is the controlling order
under paragraph (b), clause (1) or (2), or paragraph (c), or which issues a new controlling
child support order under paragraph (b), clause (3), shall state in that order:

(1) the basis upon which the tribunal made its determination;

(2) the amount of prospective support, if any; and

(3) the total amount of consolidated arrears and accrued interest, if any, under all of
the orders after all payments made are credited as provided by section 518C.209.

(g) Within 30 days after issuance of the order determining which is the controlling
order, the party obtaining that order shall file a certified copy of it with each tribunal that
issued or registered an earlier order of child support. A party or support enforcement
agency obtaining the order that fails to file a certified copy is subject to appropriate
sanctions by a tribunal in which the issue of failure to file arises. The failure to file does
not affect the validity or enforceability of the controlling order.

(h) An order that has been determined to be the controlling order, or a judgment for
consolidated arrears of support and interest, if any, made pursuant to this section must be
recognized in proceedings under this chapter.

Sec. 99.

Laws 2014, chapter 189, section 16, is amended to read:

Sec. 16.

Minnesota Statutes 2012, section 518C.301, is amended to read:

518C.301 PROCEEDINGS UNDER THIS CHAPTER.

(a) Except as otherwise provided in this chapter, sections 518C.301 to 518C.319
apply to all proceedings under this chapter.

(b) This chapter provides for the following proceedings:

(1) establishment of an order for spousal support or child support pursuant to
section 518C.401;

(2) enforcement of a support order and income-withholding order of another state or
a foreign country without registration pursuant to sections 518C.501 and 518C.502;

(3) registration of an order for spousal support or child support of another state or a
foreign country for enforcement pursuant to sections 518C.601 to 518C.612;

(4) modification of an order for child support or spousal support issued by a tribunal
of this state pursuant to sections 518C.203 to 518C.206;

(5) registration of an order for child support of another state or a foreign country for
modification pursuant to sections 518C.601 to 518C.612;

(6) determination of parentage of a child pursuant to section 518C.701; and

(7) assertion of jurisdiction over nonresidents pursuant to sections 518C.201 and
518C.202.

(c) (b) An individual petitioner or a support enforcement agency may commence
a proceeding authorized under this chapter by filing a petition in an initiating tribunal
for forwarding to a responding tribunal or by filing a petition or a comparable pleading
directly in a tribunal of another state or a foreign country which has or can obtain personal
jurisdiction over the respondent.

Sec. 100.

Laws 2014, chapter 189, section 17, is amended to read:

Sec. 17.

Minnesota Statutes 2012, section 518C.303, is amended to read:

518C.303 APPLICATION OF LAW OF THIS STATE.

Except as otherwise provided by this chapter, a responding tribunal of this state shall:

(1) apply the procedural and substantive law, including the rules on choice of law,
generally applicable to similar proceedings originating in this state and may exercise all
powers and provide all remedies available in those proceedings; and

(2) determine the duty of support and the amount payable in accordance with the
law and support guidelines of this state.

Sec. 101.

Laws 2014, chapter 189, section 18, is amended to read:

Sec. 18.

Minnesota Statutes 2012, section 518C.304, is amended to read:

518C.304 DUTIES OF INITIATING TRIBUNAL.

(a) Upon the filing of a petition authorized by this chapter, an initiating tribunal of
this state shall forward the petition and its accompanying documents:

(1) to the responding tribunal or appropriate support enforcement agency in the
responding state; or

(2) if the identity of the responding tribunal is unknown, to the state information
agency of the responding state with a request that they be forwarded to the appropriate
tribunal and that receipt be acknowledged.

(b) If requested by the responding tribunal, a tribunal of this state shall issue a
certificate or other documents and make findings required by the law of the responding
state. If the responding tribunal is in a foreign country, upon request the tribunal of this
state shall specify the amount of support sought, convert that amount into the equivalent
amount in the foreign currency under applicable official or market exchange rate as
publicly reported, and provide other documents necessary to satisfy the requirements of
the responding foreign tribunal.

Sec. 102.

Laws 2014, chapter 189, section 19, is amended to read:

Sec. 19.

Minnesota Statutes 2012, section 518C.305, is amended to read:

518C.305 DUTIES AND POWERS OF RESPONDING TRIBUNAL.

(a) When a responding tribunal of this state receives a petition or comparable
pleading from an initiating tribunal or directly pursuant to section 518C.301, paragraph (c)
(b), it shall cause the petition or pleading to be filed and notify the petitioner where and
when it was filed.

(b) A responding tribunal of this state, to the extent otherwise authorized by not
prohibited by other law, may do one or more of the following:

(1) establish or enforce a support order, modify a child support order, determine the
controlling child support order, or to determine parentage of a child;

(2) order an obligor to comply with a support order, specifying the amount and
the manner of compliance;

(3) order income withholding;

(4) determine the amount of any arrearages, and specify a method of payment;

(5) enforce orders by civil or criminal contempt, or both;

(6) set aside property for satisfaction of the support order;

(7) place liens and order execution on the obligor's property;

(8) order an obligor to keep the tribunal informed of the obligor's current residential
address, electronic mail address, telephone number, employer, address of employment,
and telephone number at the place of employment;

(9) issue a bench warrant for an obligor who has failed after proper notice to appear
at a hearing ordered by the tribunal and enter the bench warrant in any local and state
computer systems for criminal warrants;

(10) order the obligor to seek appropriate employment by specified methods;

(11) award reasonable attorney's fees and other fees and costs; and

(12) grant any other available remedy.

(c) A responding tribunal of this state shall include in a support order issued under
this chapter, or in the documents accompanying the order, the calculations on which
the support order is based.

(d) A responding tribunal of this state may not condition the payment of a support
order issued under this chapter upon compliance by a party with provisions for visitation.

(e) If a responding tribunal of this state issues an order under this chapter, the
tribunal shall send a copy of the order to the petitioner and the respondent and to the
initiating tribunal, if any.

(f) If requested to enforce a support order, arrears, or judgment or modify a support
order stated in a foreign currency, a responding tribunal of this state shall convert the
amount stated in the foreign currency to the equivalent amount in dollars under the
applicable official or market exchange rate as publicly reported.

Sec. 103.

Laws 2014, chapter 189, section 23, is amended to read:

Sec. 23.

Minnesota Statutes 2012, section 518C.310, is amended to read:

518C.310 DUTIES OF STATE INFORMATION AGENCY.

(a) The unit within the Department of Human Services that receives and disseminates
incoming interstate actions under title IV-D of the Social Security Act is the State
Information Agency under this chapter.

(b) The State Information Agency shall:

(1) compile and maintain a current list, including addresses, of the tribunals in this
state which have jurisdiction under this chapter and any support enforcement agencies in
this state and transmit a copy to the state information agency of every other state;

(2) maintain a register of names and addresses of tribunals and support enforcement
agencies received from other states;

(3) forward to the appropriate tribunal in the place in this state in which the
individual obligee or the obligor resides, or in which the obligor's property is believed
to be located, all documents concerning a proceeding under this chapter received from
another state or a foreign country; and

(4) obtain information concerning the location of the obligor and the obligor's
property within this state not exempt from execution, by such means as postal verification
and federal or state locator services, examination of telephone directories, requests for the
obligor's address from employers, and examination of governmental records, including, to
the extent not prohibited by other law, those relating to real property, vital statistics, law
enforcement, taxation, motor vehicles, driver's licenses, and Social Security.

Sec. 104.

Laws 2014, chapter 189, section 24, is amended to read:

Sec. 24.

Minnesota Statutes 2012, section 518C.311, is amended to read:

518C.311 PLEADINGS AND ACCOMPANYING DOCUMENTS.

(a) A petitioner seeking to establish or modify a support order, determine parentage
of a child, or register and modify a support order of a tribunal of another state or a foreign
country, in a proceeding under this chapter must file a petition. Unless otherwise ordered
under section 518C.312, the petition or accompanying documents must provide, so far
as known, the name, residential address, and Social Security numbers of the obligor and
the obligee or parent and alleged parent, and the name, sex, residential address, Social
Security number, and date of birth of each child for whom support is sought or whose
parenthood parentage is to be determined. Unless filed at the time of registration, the
petition must be accompanied by a certified copy of any support order in effect known
to have been issued by another tribunal. The petition may include any other information
that may assist in locating or identifying the respondent.

(b) The petition must specify the relief sought. The petition and accompanying
documents must conform substantially with the requirements imposed by the forms
mandated by federal law for use in cases filed by a support enforcement agency.

Sec. 105.

Laws 2014, chapter 189, section 27, is amended to read:

Sec. 27.

Minnesota Statutes 2012, section 518C.314, is amended to read:

518C.314 LIMITED IMMUNITY OF PETITIONER.

(a) Participation by a petitioner in a proceeding under this chapter before a
responding tribunal, whether in person, by private attorney, or through services provided
by the support enforcement agency, does not confer personal jurisdiction over the
petitioner in another proceeding.

(b) A petitioner is not amenable to service of civil process while physically present
in this state to participate in a proceeding under this chapter.

(c) The immunity granted by this section does not extend to civil litigation based on
acts unrelated to a proceeding under this chapter committed by a party while physically
present in this state to participate in the proceeding.

Sec. 106.

Laws 2014, chapter 189, section 28, is amended to read:

Sec. 28.

Minnesota Statutes 2012, section 518C.316, is amended to read:

518C.316 SPECIAL RULES OF EVIDENCE AND PROCEDURE.

(a) The physical presence of the petitioner a nonresident party who is an individual
in a responding tribunal of this state is not required for the establishment, enforcement,
or modification of a support order or the rendition of a judgment determining parentage
of a child.

(b) A verified petition, An affidavit, a document substantially complying with
federally mandated forms, and or a document incorporated by reference in any of them,
not excluded under the hearsay rule if given in person, is admissible in evidence if given
under oath penalty of perjury by a party or witness residing outside this state.

(c) A copy of the record of child support payments certified as a true copy of the
original by the custodian of the record may be forwarded to a responding tribunal. The copy
is evidence of facts asserted in it, and is admissible to show whether payments were made.

(d) Copies of bills for testing for parentage of a child, and for prenatal and postnatal
health care of the mother and child, furnished to the adverse party at least ten days before
trial, are admissible in evidence to prove the amount of the charges billed and that the
charges were reasonable, necessary, and customary.

(e) Documentary evidence transmitted from outside this state to a tribunal of this state
by telephone, telecopier, or other electronic means that do not provide an original record
may not be excluded from evidence on an objection based on the means of transmission.

(f) In a proceeding under this chapter, a tribunal of this state shall permit a party
or witness residing outside this state to be deposed or to testify under penalty of perjury
by telephone, audiovisual means, or other electronic means at a designated tribunal or
other location. A tribunal of this state shall cooperate with other tribunals in designating
an appropriate location for the deposition or testimony.

(g) If a party called to testify at a civil hearing refuses to answer on the ground that
the testimony may be self-incriminating, the trier of fact may draw an adverse inference
from the refusal.

(h) A privilege against disclosure of communications between spouses does not
apply in a proceeding under this chapter.

(i) The defense of immunity based on the relationship of husband and wife or parent
and child does not apply in a proceeding under this chapter.

(j) A voluntary acknowledgment of paternity, certified as a true copy, is admissible
to establish parentage of a child.

Sec. 107.

Laws 2014, chapter 189, section 29, is amended to read:

Sec. 29.

Minnesota Statutes 2012, section 518C.317, is amended to read:

518C.317 COMMUNICATIONS BETWEEN TRIBUNALS.

A tribunal of this state may communicate with a tribunal outside this state in
writing, by e-mail, or a record, or by telephone, electronic mail, or other means, to obtain
information concerning the laws of that state, the legal effect of a judgment, decree, or
order of that tribunal, and the status of a proceeding. A tribunal of this state may furnish
similar information by similar means to a tribunal outside this state.

Sec. 108.

Laws 2014, chapter 189, section 31, is amended to read:

Sec. 31.

Minnesota Statutes 2012, section 518C.319, is amended to read:

518C.319 RECEIPT AND DISBURSEMENT OF PAYMENTS.

(a) A support enforcement agency or tribunal of this state shall disburse promptly
any amounts received pursuant to a support order, as directed by the order. The agency
or tribunal shall furnish to a requesting party or tribunal of another state or a foreign
country a certified statement by the custodian of the record of the amounts and dates
of all payments received.

(b) If neither the obligor, not nor the obligee who is an individual, nor the child
resides in this state, upon request from the support enforcement agency of this state or
another state, the support enforcement agency of this state or a tribunal of this state shall:

(1) direct that the support payment be made to the support enforcement agency in
the state in which the obligee is receiving services; and

(2) issue and send to the obligor's employer a conforming income-withholding order
or an administrative notice of change of payee, reflecting the redirected payments.

(c) The support enforcement agency of this state receiving redirected payments from
another state pursuant to a law similar to paragraph (b) shall furnish to a requesting party
or tribunal of the other state a certified statement by the custodian of the record of the
amount and dates of all payments received.

Sec. 109.

Laws 2014, chapter 189, section 43, is amended to read:

Sec. 43.

Minnesota Statutes 2012, section 518C.604, is amended to read:

518C.604 CHOICE OF LAW.

(a) Except as otherwise provided in paragraph (d), the law of the issuing state or
foreign country governs:

(1) the nature, extent, amount, and duration of current payments under a registered
support order;

(2) the computation and payment of arrearages and accrual of interest on the
arrearages under the support order; and

(3) the existence and satisfaction of other obligations under the support order.

(b) In a proceeding for arrearages under a registered support order, the statute of
limitation under the laws of this state or of the issuing state or foreign country, whichever
is longer, applies.

(c) A responding tribunal of this state shall apply the procedures and remedies of
this state to enforce current support and collect arrears and interest due on a support order
of another state or a foreign country registered in this state.

(d) After a tribunal of this state or another state determines which is the controlling
order and issues an order consolidating arrears, if any, a tribunal of this state shall
prospectively apply the law of the state or foreign country issuing the controlling order,
including its law on interest on arrears, on current and future support, and on consolidated
arrears.

Sec. 110.

Laws 2014, chapter 189, section 50, is amended to read:

Sec. 50.

Minnesota Statutes 2012, section 518C.611, is amended to read:

518C.611 MODIFICATION OF CHILD SUPPORT ORDER OF ANOTHER
STATE.

(a) If section 518C.613 does not apply, upon petition a tribunal of this state may
modify a child support order issued in another state that is registered in this state if, after
notice and hearing, it finds that:

(1) the following requirements are met:

(i) neither the child, nor the obligee who is an individual, nor the obligor resides
in the issuing state;

(ii) a petitioner who is a nonresident of this state seeks modification; and

(iii) the respondent is subject to the personal jurisdiction of the tribunal of this state; or

(2) this state is the residence of the child, or a party who is an individual is subject to
the personal jurisdiction of the tribunal of this state and all of the parties who are individuals
have filed written consents in a record in the issuing tribunal for a tribunal of this state to
modify the support order and assume continuing, exclusive jurisdiction over the order.

(b) Modification of a registered child support order is subject to the same
requirements, procedures, and defenses that apply to the modification of an order issued
by a tribunal of this state and the order may be enforced and satisfied in the same manner.

(c) A tribunal of this state may not modify any aspect of a child support order that
may not be modified under the law of the issuing state, including the duration of the
obligation of support. If two or more tribunals have issued child support orders for the
same obligor and child, the order that controls and must be recognized under section
518C.207 establishes the aspects of the support order which are nonmodifiable.

(d) In a proceeding to modify a child support order, the law of the state that is
determined to have issued the initial controlling order governs the duration of the
obligation of support. The obligor's fulfillment of the duty of support established by that
order precludes imposition of a further obligation of support by a tribunal of this state.

(e) On issuance of an order by a tribunal of this state modifying a child support order
issued in another state, a tribunal of this state becomes the tribunal having continuing,
exclusive jurisdiction.

(f) Notwithstanding paragraphs (a) to (d) (e) and section 518C.201, paragraph (b),
a tribunal of this state retains jurisdiction to modify an order issued by a tribunal of this
state if:

(1) one party resides in another state; and

(2) the other party resides outside the United States.

Sec. 111.

Laws 2014, chapter 189, section 51, is amended to read:

Sec. 51.

Minnesota Statutes 2012, section 518C.612, is amended to read:

518C.612 RECOGNITION OF ORDER MODIFIED IN ANOTHER STATE.

If a child support order issued by a tribunal of this state is modified by a tribunal of
another state which assumed jurisdiction according to this chapter or a law substantially
similar to this chapter pursuant to the Uniform Interstate Family Support Act, a tribunal of
this state:

(1) may enforce its order that was modified only as to arrears and interest accruing
before the modification;

(2) may provide appropriate relief for violations of its order which occurred before
the effective date of the modification; and

(3) shall recognize the modifying order of the other state, upon registration, for the
purpose of enforcement.

Sec. 112.

Laws 2014, chapter 189, section 73, is amended to read:

Sec. 73. EFFECTIVE DATE.

This act becomes is effective on the date that the United States deposits the
instrument of ratification for the Hague Convention on the International Recovery of Child
Support and Other Forms of Family Maintenance with the Hague Conference on Private
International Law July 1, 2015.

EFFECTIVE DATE.

This section is effective July 1, 2015.

Sec. 113. GROUP RESIDENTIAL HOUSING REPORT ON PROGRAM
IMPROVEMENTS.

(a) The commissioner shall, in coordination with stakeholders and advocates, build
on the group residential housing (GRH) reforms made in the 2015 legislative session
related to program integrity and uniformity, by restructuring the payment rates, exploring
assessment tools, and proposing any other necessary modifications that will result in a
more cost-effective program, and report to the members of the legislative committees
having jurisdiction over GRH issues by December 15, 2015.

(b) The working group, consisting of the commissioner, stakeholders, and advocates,
shall examine the feasibility and fiscal implications of restructuring service rates by
eliminating the supplemental service rates, and developing a plan to fund only those
services, based on individual need, that are not covered by medical assistance, other
insurance, or other programs. In addition, the working group shall analyze the payment
structure, and explore different options, including tiered rates for services, and provide the
plan and analysis under this paragraph in the report under paragraph (a).

(c) To determine individual need, the working group shall explore assessment tools,
and determine the appropriate assessment tool for the different populations served by the
GRH program, which include homeless individuals, individuals with mental illness, and
individuals who are chemically dependent. The working group shall coordinate efforts
with agency staff who have expertise related to these populations, and use relevant
information and data that is available, to determine the most appropriate and effective
assessment tool or tools, and provide the analysis and an assessment recommendation in
the report under paragraph (a).

Sec. 114. PARENTING EXPENSE ADJUSTMENT REVIEW.

The commissioner of human services shall review the parenting expense adjustment
in Minnesota Statutes, section 518A.36, and identify and recommend changes to the
parenting expense adjustment. The commissioner is authorized to retain the services of
an economist to help create an equitable parenting expense adjustment formula. The
commissioner may hire an economist by use of a sole-source contract.

Sec. 115. INSTRUCTIONS TO THE COMMISSIONER; CHILD
MALTREATMENT SCREENING GUIDELINES.

(a) No later than August 1, 2015, the commissioner of human services shall update the
child maltreatment screening guidelines to require agencies to consider prior reports that
were not screened in when determining whether a new report will or will not be screened
in. The updated guidelines must emphasize that intervention and prevention efforts are to
focus on child safety and the ongoing risk of child abuse or neglect, and that the health and
safety of children are of paramount concern. The commissioner shall work with a diverse
group of community representatives who are experts on limiting cultural and ethnic bias
when developing the updated guidelines. The guidelines must be developed with special
sensitivity to reducing system bias with regard to screening and assessment tools.

(b) No later than September 30, 2015, the commissioner shall publish and distribute
the updated guidelines and ensure that all agency staff have received training on the
updated guidelines.

(c) Agency staff must implement the guidelines by October 1, 2015.

Sec. 116. COMMISSIONER'S DUTY TO PROVIDE TRAINING TO CHILD
PROTECTION SUPERVISORS.

The commissioner shall establish requirements for competency-based initial training,
support, and continuing education for child protection supervisors. This would include
developing a set of competencies specific to child protection supervisor knowledge, skills,
and attitudes based on the Minnesota Child Welfare Practice Model. Competency-based
training of supervisors must advance continuous emphasis and improvement in skills that
promote the use of the client's culture as a resource and the ability to integrate the client's
traditions, customs, values, and faith into service delivery.

Sec. 117. CHILD PROTECTION UPDATED FORMULA.

The commissioner of human services shall evaluate the formulas in Minnesota
Statutes, sections 256M.41 and 256M.42, and recommend an updated equitable
distribution formula beginning in fiscal year 2018, for funding child protection services
and staffing to counties and tribes, taking into consideration any relief to counties and
tribes for child welfare and foster care costs, additional tribes delivering social services,
and any other relevant information that should be considered in developing a new
distribution formula. The commissioner shall report to the legislative committees having
jurisdiction over child protection issues by December 15, 2016.

Sec. 118. TRANSFER.

Minnesota Statutes, section 15.039, applies to the transfer from the Office of
Ombudspersons for Families to the Department of Human Services.

Sec. 119. REVISOR'S INSTRUCTION.

The revisor shall alphabetize the definitions in Minnesota Statutes, section 626.556,
subdivision 2, and correct related cross-references.

Sec. 120. REPEALER.

Minnesota Statutes 2014, sections 257.0755, subdivision 1; 257.0768; and 290.0671,
subdivision 6a, are repealed.

EFFECTIVE DATE.

This section is effective for fiscal year 2016 and thereafter.

ARTICLE 2

CHEMICAL AND MENTAL HEALTH SERVICES

Section 1.

Minnesota Statutes 2014, section 13.46, subdivision 2, is amended to read:

Subd. 2.

General.

(a) Data on individuals collected, maintained, used, or
disseminated by the welfare system are private data on individuals, and shall not be
disclosed except:

(1) according to section 13.05;

(2) according to court order;

(3) according to a statute specifically authorizing access to the private data;

(4) to an agent of the welfare system and an investigator acting on behalf of a county,
the state, or the federal government, including a law enforcement person or attorney in the
investigation or prosecution of a criminal, civil, or administrative proceeding relating to
the administration of a program;

(5) to personnel of the welfare system who require the data to verify an individual's
identity; determine eligibility, amount of assistance, and the need to provide services
to an individual or family across programs; coordinate services for an individual or
family; evaluate the effectiveness of programs; assess parental contribution amounts;
and investigate suspected fraud;

(6) to administer federal funds or programs;

(7) between personnel of the welfare system working in the same program;

(8) to the Department of Revenue to assess parental contribution amounts for
purposes of section 252.27, subdivision 2a, administer and evaluate tax refund or tax credit
programs and to identify individuals who may benefit from these programs. The following
information may be disclosed under this paragraph: an individual's and their dependent's
names, dates of birth, Social Security numbers, income, addresses, and other data as
required, upon request by the Department of Revenue. Disclosures by the commissioner
of revenue to the commissioner of human services for the purposes described in this clause
are governed by section 270B.14, subdivision 1. Tax refund or tax credit programs include,
but are not limited to, the dependent care credit under section 290.067, the Minnesota
working family credit under section 290.0671, the property tax refund and rental credit
under section 290A.04, and the Minnesota education credit under section 290.0674;

(9) between the Department of Human Services, the Department of Employment
and Economic Development, and when applicable, the Department of Education, for
the following purposes:

(i) to monitor the eligibility of the data subject for unemployment benefits, for any
employment or training program administered, supervised, or certified by that agency;

(ii) to administer any rehabilitation program or child care assistance program,
whether alone or in conjunction with the welfare system;

(iii) to monitor and evaluate the Minnesota family investment program or the child
care assistance program by exchanging data on recipients and former recipients of food
support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance
under chapter 119B, or medical programs under chapter 256B, 256D, or 256L; and

(iv) to analyze public assistance employment services and program utilization,
cost, effectiveness, and outcomes as implemented under the authority established in Title
II, Sections 201-204 of the Ticket to Work and Work Incentives Improvement Act of
1999. Health records governed by sections 144.291 to 144.298 and "protected health
information" as defined in Code of Federal Regulations, title 45, section 160.103, and
governed by Code of Federal Regulations, title 45, parts 160-164, including health care
claims utilization information, must not be exchanged under this clause;

(10) to appropriate parties in connection with an emergency if knowledge of
the information is necessary to protect the health or safety of the individual or other
individuals or persons;

(11) data maintained by residential programs as defined in section 245A.02 may
be disclosed to the protection and advocacy system established in this state according
to Part C of Public Law 98-527 to protect the legal and human rights of persons with
developmental disabilities or other related conditions who live in residential facilities for
these persons if the protection and advocacy system receives a complaint by or on behalf
of that person and the person does not have a legal guardian or the state or a designee of
the state is the legal guardian of the person;

(12) to the county medical examiner or the county coroner for identifying or locating
relatives or friends of a deceased person;

(13) data on a child support obligor who makes payments to the public agency
may be disclosed to the Minnesota Office of Higher Education to the extent necessary to
determine eligibility under section 136A.121, subdivision 2, clause (5);

(14) participant Social Security numbers and names collected by the telephone
assistance program may be disclosed to the Department of Revenue to conduct an
electronic data match with the property tax refund database to determine eligibility under
section 237.70, subdivision 4a;

(15) the current address of a Minnesota family investment program participant
may be disclosed to law enforcement officers who provide the name of the participant
and notify the agency that:

(i) the participant:

(A) is a fugitive felon fleeing to avoid prosecution, or custody or confinement after
conviction, for a crime or attempt to commit a crime that is a felony under the laws of the
jurisdiction from which the individual is fleeing; or

(B) is violating a condition of probation or parole imposed under state or federal law;

(ii) the location or apprehension of the felon is within the law enforcement officer's
official duties; and

(iii) the request is made in writing and in the proper exercise of those duties;

(16) the current address of a recipient of general assistance or general assistance
medical care may be disclosed to probation officers and corrections agents who are
supervising the recipient and to law enforcement officers who are investigating the
recipient in connection with a felony level offense;

(17) information obtained from food support applicant or recipient households may
be disclosed to local, state, or federal law enforcement officials, upon their written request,
for the purpose of investigating an alleged violation of the Food Stamp Act, according
to Code of Federal Regulations, title 7, section 272.1(c);

(18) the address, Social Security number, and, if available, photograph of any
member of a household receiving food support shall be made available, on request, to a
local, state, or federal law enforcement officer if the officer furnishes the agency with the
name of the member and notifies the agency that:

(i) the member:

(A) is fleeing to avoid prosecution, or custody or confinement after conviction, for a
crime or attempt to commit a crime that is a felony in the jurisdiction the member is fleeing;

(B) is violating a condition of probation or parole imposed under state or federal
law; or

(C) has information that is necessary for the officer to conduct an official duty related
to conduct described in subitem (A) or (B);

(ii) locating or apprehending the member is within the officer's official duties; and

(iii) the request is made in writing and in the proper exercise of the officer's official
duty;

(19) the current address of a recipient of Minnesota family investment program,
general assistance, general assistance medical care, or food support may be disclosed to
law enforcement officers who, in writing, provide the name of the recipient and notify the
agency that the recipient is a person required to register under section 243.166, but is not
residing at the address at which the recipient is registered under section 243.166;

(20) certain information regarding child support obligors who are in arrears may be
made public according to section 518A.74;

(21) data on child support payments made by a child support obligor and data on
the distribution of those payments excluding identifying information on obligees may be
disclosed to all obligees to whom the obligor owes support, and data on the enforcement
actions undertaken by the public authority, the status of those actions, and data on the
income of the obligor or obligee may be disclosed to the other party;

(22) data in the work reporting system may be disclosed under section 256.998,
subdivision 7;

(23) to the Department of Education for the purpose of matching Department of
Education student data with public assistance data to determine students eligible for free
and reduced-price meals, meal supplements, and free milk according to United States
Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to allocate federal and
state funds that are distributed based on income of the student's family; and to verify
receipt of energy assistance for the telephone assistance plan;

(24) the current address and telephone number of program recipients and emergency
contacts may be released to the commissioner of health or a community health board as
defined in section 145A.02, subdivision 5, when the commissioner or community health
board has reason to believe that a program recipient is a disease case, carrier, suspect case,
or at risk of illness, and the data are necessary to locate the person;

(25) to other state agencies, statewide systems, and political subdivisions of this
state, including the attorney general, and agencies of other states, interstate information
networks, federal agencies, and other entities as required by federal regulation or law for
the administration of the child support enforcement program;

(26) to personnel of public assistance programs as defined in section 256.741, for
access to the child support system database for the purpose of administration, including
monitoring and evaluation of those public assistance programs;

(27) to monitor and evaluate the Minnesota family investment program by
exchanging data between the Departments of Human Services and Education, on
recipients and former recipients of food support, cash assistance under chapter 256, 256D,
256J, or 256K, child care assistance under chapter 119B, or medical programs under
chapter 256B, 256D, or 256L;

(28) to evaluate child support program performance and to identify and prevent
fraud in the child support program by exchanging data between the Department of Human
Services, Department of Revenue under section 270B.14, subdivision 1, paragraphs (a)
and (b), without regard to the limitation of use in paragraph (c), Department of Health,
Department of Employment and Economic Development, and other state agencies as is
reasonably necessary to perform these functions;

(29) counties operating child care assistance programs under chapter 119B may
disseminate data on program participants, applicants, and providers to the commissioner
of education; or

(30) child support data on the child, the parents, and relatives of the child may be
disclosed to agencies administering programs under titles IV-B and IV-E of the Social
Security Act, as authorized by federal law.; or

(31) to a health care provider governed by sections 144.291 to 144.298, to the extent
necessary to coordinate services, provided that a health record may be disclosed only as
provided under section 144.293.

(b) Information on persons who have been treated for drug or alcohol abuse may
only be disclosed according to the requirements of Code of Federal Regulations, title
42, sections 2.1 to 2.67.

(c) Data provided to law enforcement agencies under paragraph (a), clause (15),
(16), (17), or (18), or paragraph (b), are investigative data and are confidential or protected
nonpublic while the investigation is active. The data are private after the investigation
becomes inactive under section 13.82, subdivision 5, paragraph (a) or (b).

(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but are
not subject to the access provisions of subdivision 10, paragraph (b).

For the purposes of this subdivision, a request will be deemed to be made in writing
if made through a computer interface system.

Sec. 2.

Minnesota Statutes 2014, section 13.46, subdivision 7, is amended to read:

Subd. 7.

Mental health data.

(a) Mental health data are private data on individuals
and shall not be disclosed, except:

(1) pursuant to section 13.05, as determined by the responsible authority for the
community mental health center, mental health division, or provider;

(2) pursuant to court order;

(3) pursuant to a statute specifically authorizing access to or disclosure of mental
health data or as otherwise provided by this subdivision; or

(4) to personnel of the welfare system working in the same program or providing
services to the same individual or family to the extent necessary to coordinate services,
provided that a health record may be disclosed only as provided under section 144.293;

(5) to a health care provider governed by sections 144.291 to 144.298, to the extent
necessary to coordinate services, provided that a health record may be disclosed only as
provided under section 144.293; or

(6) with the consent of the client or patient.

(b) An agency of the welfare system may not require an individual to consent to the
release of mental health data as a condition for receiving services or for reimbursing a
community mental health center, mental health division of a county, or provider under
contract to deliver mental health services.

(c) Notwithstanding section 245.69, subdivision 2, paragraph (f), or any other law
to the contrary, the responsible authority for a community mental health center, mental
health division of a county, or a mental health provider must disclose mental health data to
a law enforcement agency if the law enforcement agency provides the name of a client or
patient and communicates that the:

(1) client or patient is currently involved in an emergency interaction with the law
enforcement agency; and

(2) data is necessary to protect the health or safety of the client or patient or of
another person.

The scope of disclosure under this paragraph is limited to the minimum necessary for
law enforcement to respond to the emergency. Disclosure under this paragraph may include,
but is not limited to, the name and telephone number of the psychiatrist, psychologist,
therapist, mental health professional, practitioner, or case manager of the client or patient.
A law enforcement agency that obtains mental health data under this paragraph shall
maintain a record of the requestor, the provider of the information, and the client or patient
name. Mental health data obtained by a law enforcement agency under this paragraph
are private data on individuals and must not be used by the law enforcement agency for
any other purpose. A law enforcement agency that obtains mental health data under this
paragraph shall inform the subject of the data that mental health data was obtained.

(d) In the event of a request under paragraph (a), clause (4), a community mental
health center, county mental health division, or provider must release mental health data to
Criminal Mental Health Court personnel in advance of receiving a copy of a consent if the
Criminal Mental Health Court personnel communicate that the:

(1) client or patient is a defendant in a criminal case pending in the district court;

(2) data being requested is limited to information that is necessary to assess whether
the defendant is eligible for participation in the Criminal Mental Health Court; and

(3) client or patient has consented to the release of the mental health data and a copy
of the consent will be provided to the community mental health center, county mental
health division, or provider within 72 hours of the release of the data.

For purposes of this paragraph, "Criminal Mental Health Court" refers to a specialty
criminal calendar of the Hennepin County District Court for defendants with mental illness
and brain injury where a primary goal of the calendar is to assess the treatment needs of
the defendants and to incorporate those treatment needs into voluntary case disposition
plans. The data released pursuant to this paragraph may be used for the sole purpose of
determining whether the person is eligible for participation in mental health court. This
paragraph does not in any way limit or otherwise extend the rights of the court to obtain the
release of mental health data pursuant to court order or any other means allowed by law.

Sec. 3.

Minnesota Statutes 2014, section 144.293, subdivision 6, is amended to read:

Subd. 6.

Consent does not expire.

Notwithstanding subdivision 4, if a patient
explicitly gives informed consent to the release of health records for the purposes and
restrictions in clauses clause (1) and, (2), or (3), the consent does not expire after one
year for:

(1) the release of health records to a provider who is being advised or consulted with
in connection with the releasing provider's current treatment of the patient;

(2) the release of health records to an accident and health insurer, health service plan
corporation, health maintenance organization, or third-party administrator for purposes of
payment of claims, fraud investigation, or quality of care review and studies, provided that:

(i) the use or release of the records complies with sections 72A.49 to 72A.505;

(ii) further use or release of the records in individually identifiable form to a person
other than the patient without the patient's consent is prohibited; and

(iii) the recipient establishes adequate safeguards to protect the records from
unauthorized disclosure, including a procedure for removal or destruction of information
that identifies the patient; or

(3) the release of health records to a program in the welfare system, as defined in
section 13.46, to the extent necessary to coordinate services for the patient.

Sec. 4.

Minnesota Statutes 2014, section 245.4661, subdivision 5, is amended to read:

Subd. 5.

Planning for pilot projects.

(a) Each local plan for a pilot project, with
the exception of the placement of a Minnesota specialty treatment facility as defined in
paragraph (c), must be developed under the direction of the county board, or multiple
county boards acting jointly, as the local mental health authority. The planning process
for each pilot shall include, but not be limited to, mental health consumers, families,
advocates, local mental health advisory councils, local and state providers, representatives
of state and local public employee bargaining units, and the department of human services.
As part of the planning process, the county board or boards shall designate a managing
entity responsible for receipt of funds and management of the pilot project.

(b) For Minnesota specialty treatment facilities, the commissioner shall issue a
request for proposal for regions in which a need has been identified for services.

(c) For purposes of this section, "Minnesota specialty treatment facility" is defined
as an intensive rehabilitative mental health residential treatment service under section
256B.0622, subdivision 2, paragraph (b).

Sec. 5.

Minnesota Statutes 2014, section 245.4661, subdivision 6, is amended to read:

Subd. 6.

Duties of commissioner.

(a) For purposes of the pilot projects, the
commissioner shall facilitate integration of funds or other resources as needed and
requested by each project. These resources may include:

(1) community support services funds administered under Minnesota Rules, parts
9535.1700 to 9535.1760;

(2) other mental health special project funds;

(3) medical assistance, general assistance medical care, MinnesotaCare and group
residential housing if requested by the project's managing entity, and if the commissioner
determines this would be consistent with the state's overall health care reform efforts; and

(4) regional treatment center resources consistent with section 246.0136, subdivision
1; and.

(5) funds transferred from section 246.18, subdivision 8, for grants to providers to
participate in mental health specialty treatment services, awarded to providers through
a request for proposal process.

(b) The commissioner shall consider the following criteria in awarding start-up and
implementation grants for the pilot projects:

(1) the ability of the proposed projects to accomplish the objectives described in
subdivision 2;

(2) the size of the target population to be served; and

(3) geographical distribution.

(c) The commissioner shall review overall status of the projects initiatives at least
every two years and recommend any legislative changes needed by January 15 of each
odd-numbered year.

(d) The commissioner may waive administrative rule requirements which are
incompatible with the implementation of the pilot project.

(e) The commissioner may exempt the participating counties from fiscal sanctions
for noncompliance with requirements in laws and rules which are incompatible with the
implementation of the pilot project.

(f) The commissioner may award grants to an entity designated by a county board or
group of county boards to pay for start-up and implementation costs of the pilot project.

Sec. 6.

Minnesota Statutes 2014, section 245.4661, is amended by adding a subdivision
to read:

Subd. 9.

Services and programs.

(a) The following three distinct grant programs
are funded under this section:

(1) mental health crisis services;

(2) housing with supports for adults with serious mental illness; and

(3) projects for assistance in transitioning from homelessness (PATH program).

(b) In addition, the following are eligible for grant funds:

(1) community education and prevention;

(2) client outreach;

(3) early identification and intervention;

(4) adult outpatient diagnostic assessment and psychological testing;

(5) peer support services;

(6) community support program services (CSP);

(7) adult residential crisis stabilization;

(8) supported employment;

(9) assertive community treatment (ACT);

(10) housing subsidies;

(11) basic living, social skills, and community intervention;

(12) emergency response services;

(13) adult outpatient psychotherapy;

(14) adult outpatient medication management;

(15) adult mobile crisis services;

(16) adult day treatment;

(17) partial hospitalization;

(18) adult residential treatment;

(19) adult mental heath targeted case management;

(20) intensive community residential services (IRCS); and

(21) transportation.

Sec. 7.

Minnesota Statutes 2014, section 245.4661, is amended by adding a subdivision
to read:

Subd. 10.

Commissioner duty to report on use of grant funds biennially.

By
November 1, 2016, and biennially thereafter, the commissioner of human services shall
provide sufficient information to the members of the legislative committees having
jurisdiction over mental health funding and policy issues to evaluate the use of funds
appropriated under this section of law. The commissioner shall provide, at a minimum,
the following information:

(1) the amount of funding to mental health initiatives, what programs and services
were funded in the previous two years, gaps in services that each initiative brought to
the attention of the commissioner, and outcome data for the programs and services that
were funded; and

(2) the amount of funding for other targeted services and the location of services.

Sec. 8.

Minnesota Statutes 2014, section 245.467, subdivision 6, is amended to read:

Subd. 6.

Restricted access to data.

The county board shall establish procedures
to ensure that the names and addresses of persons receiving mental health services are
disclosed only to:

(1) county employees who are specifically responsible for determining county of
financial responsibility or making payments to providers; and

(2) staff who provide treatment services or case management and their clinical
supervisors.; and

(3) personnel of the welfare system or health care providers who have access to the
data under section 13.46, subdivision 7.

Release of mental health data on individuals submitted under subdivisions 4 and 5,
to persons other than those specified in this subdivision, or use of this data for purposes
other than those stated in subdivisions 4 and 5, results in civil or criminal liability under
the standards in section 13.08 or 13.09.

Sec. 9.

Minnesota Statutes 2014, section 245.469, is amended by adding a subdivision
to read:

Subd. 3.

Commissioner duties.

By July 1, 2016, unless otherwise specified, the
commissioner shall:

(1) enhance oversight and training of the state's mobile crisis services to ensure
consistency throughout the state, including the development and implementation of a
certification process for mental health emergency telephone lines;

(2) develop standards for crisis services to ensure uniformity in the services that
crisis response providers are delivering to clients;

(3) provide specialty telephone consultation 24 hours per day to mobile crisis
teams serving persons with traumatic brain injury or an intellectual disability who are
experiencing a mental health crisis;

(4) establish a single statewide mental health crisis phone number to immediately
connect the person in crisis with the closest crisis response provider; and

(5) by July 1, 2018, provide 24/7 availability of mobile crisis teams throughout
the state.

Sec. 10.

Minnesota Statutes 2014, section 245.4876, subdivision 7, is amended to read:

Subd. 7.

Restricted access to data.

The county board shall establish procedures
to ensure that the names and addresses of children receiving mental health services and
their families are disclosed only to:

(1) county employees who are specifically responsible for determining county of
financial responsibility or making payments to providers; and

(2) staff who provide treatment services or case management and their clinical
supervisors.; and

(3) personnel of the welfare system or health care providers who have access to the
data under section 13.46, subdivision 7.

Release of mental health data on individuals submitted under subdivisions 5 and 6,
to persons other than those specified in this subdivision, or use of this data for purposes
other than those stated in subdivisions 5 and 6, results in civil or criminal liability under
section 13.08 or 13.09.

Sec. 11.

Minnesota Statutes 2014, section 245.4889, subdivision 1, is amended to read:

Subdivision 1.

Establishment and authority.

(a) The commissioner is authorized
to make grants from available appropriations to assist:

(1) counties;

(2) Indian tribes;

(3) children's collaboratives under section 124D.23 or 245.493; or

(4) mental health service providers

for providing services to children with emotional disturbances as defined in section
245.4871, subdivision 15, and their families. The commissioner may also authorize
grants to young adults meeting the criteria for transition services in section 245.4875,
subdivision 8, and their families.

(b) The following services are eligible for grants under this section:

(1) services to children with emotional disturbances as defined in section 245.4871,
subdivision 15, and their families;

(2) transition services under section 245.4875, subdivision 8, for young adults under
age 21 and their families;

(3) respite care services for children with severe emotional disturbances who are at
risk of out-of-home placement;

(4) children's mental health crisis services;

(5) mental health services for people from cultural and ethnic minorities;

(6) children's mental health screening and follow-up diagnostic assessment and
treatment;

(7) services to promote and develop the capacity of providers to use evidence-based
practices in providing children's mental health services;

(8) school-linked mental health services;

(9) building evidence-based mental health intervention capacity for children birth to
age five;

(10) suicide prevention and counseling services that use text messaging statewide;

(11) mental health first aid training;

(12) training for parents, collaborative partners, and mental health providers on the
impact of adverse childhood experiences and trauma and development of an interactive
Web site to share information and strategies to promote resilience and prevent trauma;

(13) transition age services to develop or expand mental health treatment and
supports for adolescents and young adults 26 years of age or younger;

(14) early childhood mental health consultation;

(15) evidence-based interventions for youth at risk of developing or experiencing a
first episode of psychosis, and a public awareness campaign on the signs and symptoms of
psychosis; and

(16) psychiatric consultation for primary care practitioners.

(c) Services under paragraph (a) (b) must be designed to help each child to function
and remain with the child's family in the community and delivered consistent with the
child's treatment plan. Transition services to eligible young adults under paragraph (a) (b)
must be designed to foster independent living in the community.

Sec. 12.

Minnesota Statutes 2014, section 245.4889, is amended by adding a
subdivision to read:

Subd. 3.

Commissioner duty to report on use of grant funds biennially.

By
November 1, 2016, and biennially thereafter, the commissioner of human services shall
provide sufficient information to the members of the legislative committees having
jurisdiction over mental health funding and policy issues to evaluate the use of funds
appropriated under this section. The commissioner shall provide, at a minimum, the
following information:

(1) the amount of funding for children's mental health grants, what programs and
services were funded in the previous two years, and outcome data for the programs and
services that were funded; and

(2) the amount of funding for other targeted services and the location of services.

Sec. 13.

[245.735] EXCELLENCE IN MENTAL HEALTH DEMONSTRATION
PROJECT.

Subdivision 1.

Excellence in Mental Health demonstration project.

The
commissioner shall develop and execute projects to reform the mental health system by
participating in the Excellence in Mental Health demonstration project.

Subd. 2.

Federal proposal.

The commissioner shall develop and submit to the
United States Department of Health and Human Services a proposal for the Excellence
in Mental Health demonstration project. The proposal shall include any necessary state
plan amendments, waivers, requests for new funding, realignment of existing funding, and
other authority necessary to implement the projects specified in subdivision 4.

Subd. 3.

Rules.

By January 15, 2017, the commissioner shall adopt rules that meet
the criteria in subdivision 4, paragraph (a), to establish standards for state certification
of community behavioral health clinics, and rules that meet the criteria in subdivision 4,
paragraph (b), to implement a prospective payment system for medical assistance payment
of mental health services delivered in certified community behavioral health clinics. These
rules shall comply with federal requirements for certification of community behavioral
health clinics and the prospective payment system and shall apply to community mental
health centers, mental health clinics, mental health residential treatment centers, essential
community providers, federally qualified health centers, and rural health clinics. The
commissioner may adopt rules under this subdivision using the expedited process in
section 14.389.

Subd. 4.

Reform projects.

(a) The commissioner shall establish standards for state
certification of clinics as certified community behavioral health clinics, in accordance with
the criteria published on or before September 1, 2015, by the United States Department
of Health and Human Services. Certification standards established by the commissioner
shall require that:

(1) clinic staff have backgrounds in diverse disciplines, include licensed mental
health professionals, and are culturally and linguistically trained to serve the needs of the
clinic's patient population;

(2) clinic services are available and accessible and that crisis management services
are available 24 hours per day;

(3) fees for clinic services are established using a sliding fee scale and services to
patients are not denied or limited due to a patient's inability to pay for services;

(4) clinics provide coordination of care across settings and providers to ensure
seamless transitions for patients across the full spectrum of health services, including
acute, chronic, and behavioral needs. Care coordination may be accomplished through
partnerships or formal contracts with federally qualified health centers, inpatient
psychiatric facilities, substance use and detoxification facilities, community-based mental
health providers, and other community services, supports, and providers including
schools, child welfare agencies, juvenile and criminal justice agencies, Indian Health
Services clinics, tribally licensed health care and mental health facilities, urban Indian
health clinics, Department of Veterans Affairs medical centers, outpatient clinics, drop-in
centers, acute care hospitals, and hospital outpatient clinics;

(5) services provided by clinics include crisis mental health services, emergency
crisis intervention services, and stabilization services; screening, assessment, and diagnosis
services, including risk assessments and level of care determinations; patient-centered
treatment planning; outpatient mental health and substance use services; targeted case
management; psychiatric rehabilitation services; peer support and counselor services and
family support services; and intensive community-based mental health services, including
mental health services for members of the armed forces and veterans; and

(6) clinics comply with quality assurance reporting requirements and other reporting
requirements, including any required reporting of encounter data, clinical outcomes data,
and quality data.

(b) The commissioner shall establish standards and methodologies for a prospective
payment system for medical assistance payments for mental health services delivered by
certified community behavioral health clinics, in accordance with guidance issued on or
before September 1, 2015, by the Centers for Medicare and Medicaid Services. During the
operation of the demonstration project, payments shall comply with federal requirements
for a 90 percent enhanced federal medical assistance percentage.

Subd. 5.

Public participation.

In developing the projects under subdivision 4, the
commissioner shall consult with mental health providers, advocacy organizations, licensed
mental health professionals, and Minnesota public health care program enrollees who
receive mental health services and their families.

Subd. 6.

Information systems support.

The commissioner and the state chief
information officer shall provide information systems support to the projects as necessary
to comply with federal requirements and the deadlines in subdivision 3.

Sec. 14.

Minnesota Statutes 2014, section 246.18, subdivision 8, is amended to read:

Subd. 8.

State-operated services account.

(a) The state-operated services account is
established in the special revenue fund. Revenue generated by new state-operated services
listed under this section established after July 1, 2010, that are not enterprise activities must
be deposited into the state-operated services account, unless otherwise specified in law:

(1) intensive residential treatment services;

(2) foster care services; and

(3) psychiatric extensive recovery treatment services.

(b) Funds deposited in the state-operated services account are available appropriated
to the commissioner of human services for the purposes of:

(1) providing services needed to transition individuals from institutional settings
within state-operated services to the community when those services have no other
adequate funding source; and

(2) grants to providers participating in mental health specialty treatment services
under section 245.4661; and

(3) to fund the operation of the intensive residential treatment service program in
Willmar.

Sec. 15.

Minnesota Statutes 2014, section 253B.18, subdivision 4c, is amended to read:

Subd. 4c.

Special review board.

(a) The commissioner shall establish one or more
panels of a special review board. The board shall consist of three members experienced
in the field of mental illness. One member of each special review board panel shall be a
psychiatrist or a doctoral level psychologist with forensic experience and one member
shall be an attorney. No member shall be affiliated with the Department of Human
Services. The special review board shall meet at least every six months and at the call of
the commissioner. It shall hear and consider all petitions for a reduction in custody or to
appeal a revocation of provisional discharge. A "reduction in custody" means transfer
from a secure treatment facility, discharge, and provisional discharge. Patients may be
transferred by the commissioner between secure treatment facilities without a special
review board hearing.

Members of the special review board shall receive compensation and reimbursement
for expenses as established by the commissioner.

(b) The special review board must review each denied petition under subdivision
5 for barriers and obstacles preventing the patient from progressing in treatment. Based
on the cases before the board in the previous year, the special review board shall provide
to the commissioner an annual summation of the barriers to treatment progress, and
recommendations to achieve the common goal of making progress in treatment.

(c) A petition filed by a person committed as mentally ill and dangerous to the
public under this section must be heard as provided in subdivision 5 and, as applicable,
subdivision 13. A petition filed by a person committed as a sexual psychopathic personality
or as a sexually dangerous person under chapter 253D, or committed as both mentally ill
and dangerous to the public under this section and as a sexual psychopathic personality or
as a sexually dangerous person must be heard as provided in section 253D.27.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 16.

Minnesota Statutes 2014, section 253B.18, subdivision 5, is amended to read:

Subd. 5.

Petition; notice of hearing; attendance; order.

(a) A petition for
a reduction in custody or revocation of provisional discharge shall be filed with the
commissioner and may be filed by the patient or by the head of the treatment facility. A
patient may not petition the special review board for six months following commitment
under subdivision 3 or following the final disposition of any previous petition and
subsequent appeal by the patient. The head of the treatment facility must schedule a
hearing before the special review board for any patient who has not appeared before the
special review board in the previous three years, and schedule a hearing at least every
three years thereafter. The medical director may petition at any time.

(b) Fourteen days prior to the hearing, the committing court, the county attorney of
the county of commitment, the designated agency, interested person, the petitioner, and
the petitioner's counsel shall be given written notice by the commissioner of the time and
place of the hearing before the special review board. Only those entitled to statutory notice
of the hearing or those administratively required to attend may be present at the hearing.
The patient may designate interested persons to receive notice by providing the names
and addresses to the commissioner at least 21 days before the hearing. The board shall
provide the commissioner with written findings of fact and recommendations within 21
days of the hearing. The commissioner shall issue an order no later than 14 days after
receiving the recommendation of the special review board. A copy of the order shall be
mailed to every person entitled to statutory notice of the hearing within five days after it
is signed. No order by the commissioner shall be effective sooner than 30 days after the
order is signed, unless the county attorney, the patient, and the commissioner agree that
it may become effective sooner.

(c) The special review board shall hold a hearing on each petition prior to making
its recommendation to the commissioner. The special review board proceedings are not
contested cases as defined in chapter 14. Any person or agency receiving notice that
submits documentary evidence to the special review board prior to the hearing shall also
provide copies to the patient, the patient's counsel, the county attorney of the county of
commitment, the case manager, and the commissioner.

(d) Prior to the final decision by the commissioner, the special review board may be
reconvened to consider events or circumstances that occurred subsequent to the hearing.

(e) In making their recommendations and order, the special review board and
commissioner must consider any statements received from victims under subdivision 5a.

EFFECTIVE DATE.

This section is effective January 1, 2016, with hearings
starting no later than February 1, 2016.

Sec. 17.

Minnesota Statutes 2014, section 254B.05, subdivision 5, is amended to read:

Subd. 5.

Rate requirements.

(a) The commissioner shall establish rates for
chemical dependency services and service enhancements funded under this chapter.

(b) Eligible chemical dependency treatment services include:

(1) outpatient treatment services that are licensed according to Minnesota Rules,
parts 9530.6405 to 9530.6480, or applicable tribal license;

(2) medication-assisted therapy services that are licensed according to Minnesota
Rules, parts 9530.6405 to 9530.6480 and 9530.6500, or applicable tribal license;

(3) medication-assisted therapy plus enhanced treatment services that meet the
requirements of clause (2) and provide nine hours of clinical services each week;

(4) high, medium, and low intensity residential treatment services that are licensed
according to Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6505, or applicable
tribal license which provide, respectively, 30, 15, and five hours of clinical services each
week;

(5) hospital-based treatment services that are licensed according to Minnesota Rules,
parts 9530.6405 to 9530.6480, or applicable tribal license and licensed as a hospital under
sections 144.50 to 144.56;

(6) adolescent treatment programs that are licensed as outpatient treatment programs
according to Minnesota Rules, parts 9530.6405 to 9530.6485, or as residential treatment
programs according to Minnesota Rules, parts 2960.0010 to 2960.0220, and 2960.0430 to
2960.0490, or applicable tribal license; and

(7) high-intensity residential treatment services that are licensed according to
Minnesota Rules, parts 9530.6405 to 9530.6480 and 9530.6505, or applicable tribal
license, which provide 30 hours of clinical services each week provided by a state-operated
vendor or to clients who have been civilly committed to the commissioner, present the
most complex and difficult care needs, and are a potential threat to the community; and

(8) room and board facilities that meet the requirements of section 254B.05,
subdivision 1a.

(c) The commissioner shall establish higher rates for programs that meet the
requirements of paragraph (b) and the following additional requirements:

(1) programs that serve parents with their children if the program:

(i) provides on-site child care during hours of treatment activity that meets the
requirements in Minnesota Rules, part 9530.6490, or section 245A.03, subdivision 2; or

(ii) arranges for off-site child care during hours of treatment activity at a facility that
is licensed under chapter 245A as:

(A) a child care center under Minnesota Rules, chapter 9503; or

(B) a family child care home under Minnesota Rules, chapter 9502;

(2) culturally specific programs as defined in section 254B.01, subdivision 8, if the
program meets the requirements in Minnesota Rules, part 9530.6605, subpart 13;

(3) programs that offer medical services delivered by appropriately credentialed
health care staff in an amount equal to two hours per client per week if the medical
needs of the client and the nature and provision of any medical services provided are
documented in the client file; and

(4) programs that offer services to individuals with co-occurring mental health and
chemical dependency problems if:

(i) the program meets the co-occurring requirements in Minnesota Rules, part
9530.6495;

(ii) 25 percent of the counseling staff are licensed mental health professionals, as
defined in section 245.462, subdivision 18, clauses (1) to (6), or are students or licensing
candidates under the supervision of a licensed alcohol and drug counselor supervisor and
licensed mental health professional, except that no more than 50 percent of the mental
health staff may be students or licensing candidates with time documented to be directly
related to provisions of co-occurring services;

(iii) clients scoring positive on a standardized mental health screen receive a mental
health diagnostic assessment within ten days of admission;

(iv) the program has standards for multidisciplinary case review that include a
monthly review for each client that, at a minimum, includes a licensed mental health
professional and licensed alcohol and drug counselor, and their involvement in the review
is documented;

(v) family education is offered that addresses mental health and substance abuse
disorders and the interaction between the two; and

(vi) co-occurring counseling staff will receive eight hours of co-occurring disorder
training annually.

(d) In order to be eligible for a higher rate under paragraph (c), clause (1), a program
that provides arrangements for off-site child care must maintain current documentation at
the chemical dependency facility of the child care provider's current licensure to provide
child care services. Programs that provide child care according to paragraph (c), clause
(1), must be deemed in compliance with the licensing requirements in Minnesota Rules,
part 9530.6490.

(e) Adolescent residential programs that meet the requirements of Minnesota
Rules, parts 2960.0430 to 2960.0490 and 2960.0580 to 2960.0690, are exempt from the
requirements in paragraph (c), clause (4), items (i) to (iv).

Sec. 18.

Minnesota Statutes 2014, section 254B.12, subdivision 2, is amended to read:

Subd. 2.

Payment methodology for highly specialized vendors.

(a)
Notwithstanding subdivision 1, the commissioner shall seek federal authority to develop
separate payment methodologies for chemical dependency treatment services provided
under the consolidated chemical dependency treatment fund: (1) by a state-operated
vendor; or (2) for persons who have been civilly committed to the commissioner, present
the most complex and difficult care needs, and are a potential threat to the community. A
payment methodology under this subdivision is effective for services provided on or after
October 1, 2015, or on or after the receipt of federal approval, whichever is later.

(b) Before implementing an approved payment methodology under paragraph
(a), the commissioner must also receive any necessary legislative approval of required
changes to state law or funding.

Sec. 19.

Minnesota Statutes 2014, section 256B.0615, subdivision 3, is amended to read:

Subd. 3.

Eligibility.

Peer support services may be made available to consumers
of (1) intensive rehabilitative mental health residential treatment services under section
256B.0622; (2) adult rehabilitative mental health services under section 256B.0623; and
(3) crisis stabilization and mental health mobile crisis intervention services under section
256B.0624.

Sec. 20.

Minnesota Statutes 2014, section 256B.0622, subdivision 1, is amended to read:

Subdivision 1.

Scope.

Subject to federal approval, medical assistance covers
medically necessary, intensive nonresidential assertive community treatment and intensive
residential rehabilitative mental health treatment services as defined in subdivision 2, for
recipients as defined in subdivision 3, when the services are provided by an entity meeting
the standards in this section.

Sec. 21.

Minnesota Statutes 2014, section 256B.0622, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For purposes of this section, the following terms have the
meanings given them.

(a) "Intensive nonresidential rehabilitative mental health services" means adult
rehabilitative mental health services as defined in section 256B.0623, subdivision 2,
paragraph (a), except that these services are provided by a multidisciplinary staff using
a total team approach consistent with assertive community treatment, the Fairweather
Lodge treatment model, as defined by the standards established by the National Coalition
for Community Living, and other evidence-based practices, and directed to recipients with
a serious mental illness who require intensive services. "Assertive community treatment"
means intensive nonresidential rehabilitative mental health services provided according
to the evidence-based practice of assertive community treatment. Core elements of this
service include, but are not limited to:

(1) a multidisciplinary staff who utilize a total team approach and who serve as a
fixed point of responsibility for all service delivery;

(2) providing services 24 hours per day and 7 days per week;

(3) providing the majority of services in a community setting;

(4) offering a low ratio of recipients to staff; and

(5) providing service that is not time-limited.

(b) "Intensive residential rehabilitative mental health treatment services" means
short-term, time-limited services provided in a residential setting to recipients who are
in need of more restrictive settings and are at risk of significant functional deterioration
if they do not receive these services. Services are designed to develop and enhance
psychiatric stability, personal and emotional adjustment, self-sufficiency, and skills to live
in a more independent setting. Services must be directed toward a targeted discharge
date with specified client outcomes and must be consistent with the Fairweather Lodge
treatment model as defined in paragraph (a), and other evidence-based practices.

(c) "Evidence-based practices" are nationally recognized mental health services that
are proven by substantial research to be effective in helping individuals with serious
mental illness obtain specific treatment goals.

(d) "Overnight staff" means a member of the intensive residential rehabilitative
mental health treatment team who is responsible during hours when recipients are
typically asleep.

(e) "Treatment team" means all staff who provide services under this section to
recipients. At a minimum, this includes the clinical supervisor, mental health professionals
as defined in section 245.462, subdivision 18, clauses (1) to (6); mental health practitioners
as defined in section 245.462, subdivision 17; mental health rehabilitation workers under
section 256B.0623, subdivision 5, clause (3); and certified peer specialists under section
256B.0615.

Sec. 22.

Minnesota Statutes 2014, section 256B.0622, subdivision 3, is amended to read:

Subd. 3.

Eligibility.

An eligible recipient is an individual who:

(1) is age 18 or older;

(2) is eligible for medical assistance;

(3) is diagnosed with a mental illness;

(4) because of a mental illness, has substantial disability and functional impairment
in three or more of the areas listed in section 245.462, subdivision 11a, so that
self-sufficiency is markedly reduced;

(5) has one or more of the following: a history of two or more recurring or prolonged
inpatient hospitalizations in the past year, significant independent living instability,
homelessness, or very frequent use of mental health and related services yielding poor
outcomes; and

(6) in the written opinion of a licensed mental health professional, has the need for
mental health services that cannot be met with other available community-based services,
or is likely to experience a mental health crisis or require a more restrictive setting if
intensive rehabilitative mental health services are not provided.

Sec. 23.

Minnesota Statutes 2014, section 256B.0622, subdivision 4, is amended to read:

Subd. 4.

Provider certification and contract requirements.

(a) The intensive
nonresidential rehabilitative mental health services assertive community treatment
provider must:

(1) have a contract with the host county to provide intensive adult rehabilitative
mental health services; and

(2) be certified by the commissioner as being in compliance with this section and
section 256B.0623.

(b) The intensive residential rehabilitative mental health treatment services provider
must:

(1) be licensed under Minnesota Rules, parts 9520.0500 to 9520.0670;

(2) not exceed 16 beds per site;

(3) comply with the additional standards in this section; and

(4) have a contract with the host county to provide these services.

(c) The commissioner shall develop procedures for counties and providers to submit
contracts and other documentation as needed to allow the commissioner to determine
whether the standards in this section are met.

Sec. 24.

Minnesota Statutes 2014, section 256B.0622, subdivision 5, is amended to read:

Subd. 5.

Standards applicable to both nonresidential assertive community
treatment and residential providers.

(a) Services must be provided by qualified staff as
defined in section 256B.0623, subdivision 5, who are trained and supervised according to
section 256B.0623, subdivision 6, except that mental health rehabilitation workers acting
as overnight staff are not required to comply with section 256B.0623, subdivision 5,
clause (3) (4), item (iv).

(b) The clinical supervisor must be an active member of the treatment team. The
treatment team must meet with the clinical supervisor at least weekly to discuss recipients'
progress and make rapid adjustments to meet recipients' needs. The team meeting shall
include recipient-specific case reviews and general treatment discussions among team
members. Recipient-specific case reviews and planning must be documented in the
individual recipient's treatment record.

(c) Treatment staff must have prompt access in person or by telephone to a mental
health practitioner or mental health professional. The provider must have the capacity to
promptly and appropriately respond to emergent needs and make any necessary staffing
adjustments to assure the health and safety of recipients.

(d) The initial functional assessment must be completed within ten days of intake
and updated at least every three months 30 days for intensive residential treatment services
and every six months for assertive community treatment, or prior to discharge from the
service, whichever comes first.

(e) The initial individual treatment plan must be completed within ten days of intake
and for assertive community treatment and within 24 hours of admission for intensive
residential treatment services. Within ten days of admission, the initial treatment plan
must be refined and further developed for intensive residential treatment services, except
for providers certified according to Minnesota Rules, parts 9533.0010 to 9533.0180.
The individual treatment plan must be reviewed with the recipient and updated at least
monthly with the recipient for intensive residential treatment services and at least every
six months for assertive community treatment.

Sec. 25.

Minnesota Statutes 2014, section 256B.0622, subdivision 7, is amended to read:

Subd. 7.

Additional standards for nonresidential services assertive community
treatment.

The standards in this subdivision apply to intensive nonresidential
rehabilitative mental health assertive community treatment services.

(1) The treatment team must use team treatment, not an individual treatment model.

(2) The clinical supervisor must function as a practicing clinician at least on a
part-time basis.

(3) The staffing ratio must not exceed ten recipients to one full-time equivalent
treatment team position.

(4) Services must be available at times that meet client needs.

(5) The treatment team must actively and assertively engage and reach out to the
recipient's family members and significant others, after obtaining the recipient's permission.

(6) The treatment team must establish ongoing communication and collaboration
between the team, family, and significant others and educate the family and significant
others about mental illness, symptom management, and the family's role in treatment.

(7) The treatment team must provide interventions to promote positive interpersonal
relationships.

Sec. 26.

Minnesota Statutes 2014, section 256B.0622, subdivision 8, is amended to read:

Subd. 8.

Medical assistance payment for intensive rehabilitative mental health
services.

(a) Payment for intensive residential and nonresidential treatment services
and assertive community treatment in this section shall be based on one daily rate per
provider inclusive of the following services received by an eligible recipient in a given
calendar day: all rehabilitative services under this section, staff travel time to provide
rehabilitative services under this section, and nonresidential crisis stabilization services
under section 256B.0624.

(b) Except as indicated in paragraph (c), payment will not be made to more than one
entity for each recipient for services provided under this section on a given day. If services
under this section are provided by a team that includes staff from more than one entity, the
team must determine how to distribute the payment among the members.

(c) The commissioner shall determine one rate for each provider that will bill
medical assistance for residential services under this section and one rate for each
nonresidential assertive community treatment provider. If a single entity provides both
services, one rate is established for the entity's residential services and another rate for the
entity's nonresidential services under this section. A provider is not eligible for payment
under this section without authorization from the commissioner. The commissioner shall
develop rates using the following criteria:

(1) the cost for similar services in the local trade area;

(2) (1) the provider's cost for services shall include direct services costs, other
program costs, and other costs determined as follows:

(i) the direct services costs must be determined using actual costs of salaries, benefits,
payroll taxes, and training of direct service staff and service-related transportation;

(ii) other program costs not included in item (i) must be determined as a specified
percentage of the direct services costs as determined by item (i). The percentage used shall
be determined by the commissioner based upon the average of percentages that represent
the relationship of other program costs to direct services costs among the entities that
provide similar services;

(iii) in situations where a provider of intensive residential services can demonstrate
actual program-related physical plant costs in excess of the group residential housing
reimbursement, the commissioner may include these costs in the program rate, so long
as the additional reimbursement does not subsidize the room and board expenses of the
program physical plant costs calculated based on the percentage of space within the
program that is entirely devoted to treatment and programming. This does not include
administrative or residential space;

(iv) intensive nonresidential services assertive community treatment physical plant
costs must be reimbursed as part of the costs described in item (ii); and

(v) subject to federal approval, up to an additional five percent of the total rate must
may be added to the program rate as a quality incentive based upon the entity meeting
performance criteria specified by the commissioner;

(3) (2) actual cost is defined as costs which are allowable, allocable, and reasonable,
and consistent with federal reimbursement requirements under Code of Federal
Regulations, title 48, chapter 1, part 31, relating to for-profit entities, and Office of
Management and Budget Circular Number A-122, relating to nonprofit entities;

(4) (3) the number of service units;

(5) (4) the degree to which recipients will receive services other than services under
this section; and

(6) (5) the costs of other services that will be separately reimbursed; and.

(7) input from the local planning process authorized by the adult mental health
initiative under section 245.4661, regarding recipients' service needs.

(d) The rate for intensive rehabilitative mental health residential treatment services
and assertive community treatment must exclude room and board, as defined in section
256I.03, subdivision 6, and services not covered under this section, such as partial
hospitalization, home care, and inpatient services.

(e) Physician services that are not separately billed may be included in the rate to the
extent that a psychiatrist, or other health care professional providing physician services
within their scope of practice, is a member of the treatment team. Physician services,
whether billed separately or included in the rate, may be delivered by telemedicine. For
purposes of this paragraph, "telemedicine" has the meaning given to "mental health
telemedicine" in section 256B.0625, subdivision 46, when telemedicine is used to provide
intensive residential treatment services.

(e) (f) When services under this section are provided by an intensive nonresidential
service assertive community treatment provider, case management functions must be an
integral part of the team.

(f) (g) The rate for a provider must not exceed the rate charged by that provider for
the same service to other payors.

(g) (h) The rates for existing programs must be established prospectively based upon
the expenditures and utilization over a prior 12-month period using the criteria established
in paragraph (c). The rates for new programs must be established based upon estimated
expenditures and estimated utilization using the criteria established in paragraph (c).

(h) (i) Entities who discontinue providing services must be subject to a settle-up
process whereby actual costs and reimbursement for the previous 12 months are
compared. In the event that the entity was paid more than the entity's actual costs plus
any applicable performance-related funding due the provider, the excess payment must
be reimbursed to the department. If a provider's revenue is less than actual allowed costs
due to lower utilization than projected, the commissioner may reimburse the provider to
recover its actual allowable costs. The resulting adjustments by the commissioner must
be proportional to the percent of total units of service reimbursed by the commissioner
and must reflect a difference of greater than five percent.

(i) (j) A provider may request of the commissioner a review of any rate-setting
decision made under this subdivision.

Sec. 27.

Minnesota Statutes 2014, section 256B.0622, subdivision 9, is amended to read:

Subd. 9.

Provider enrollment; rate setting for county-operated entities.

Counties
that employ their own staff to provide services under this section shall apply directly to
the commissioner for enrollment and rate setting. In this case, a county contract is not
required and the commissioner shall perform the program review and rate setting duties
which would otherwise be required of counties under this section.

Sec. 28.

Minnesota Statutes 2014, section 256B.0622, subdivision 10, is amended to
read:

Subd. 10.

Provider enrollment; rate setting for specialized program.

A county
contract is not required for a provider proposing to serve a subpopulation of eligible
recipients may bypass the county approval procedures in this section and receive approval
for provider enrollment and rate setting directly from the commissioner under the
following circumstances:

(1) the provider demonstrates that the subpopulation to be served requires a
specialized program which is not available from county-approved entities; and

(2) the subpopulation to be served is of such a low incidence that it is not feasible to
develop a program serving a single county or regional group of counties.

For providers meeting the criteria in clauses (1) and (2), the commissioner shall
perform the program review and rate setting duties which would otherwise be required of
counties under this section.

Sec. 29.

Minnesota Statutes 2014, section 256B.0622, is amended by adding a
subdivision to read:

Subd. 11.

Sustainability grants.

The commissioner may disburse grant funds
directly to intensive residential treatment services providers and assertive community
treatment providers to maintain access to these services.

Sec. 30.

Minnesota Statutes 2014, section 256B.0624, subdivision 7, is amended to read:

Subd. 7.

Crisis stabilization services.

(a) Crisis stabilization services must be
provided by qualified staff of a crisis stabilization services provider entity and must meet
the following standards:

(1) a crisis stabilization treatment plan must be developed which meets the criteria
in subdivision 11;

(2) staff must be qualified as defined in subdivision 8; and

(3) services must be delivered according to the treatment plan and include
face-to-face contact with the recipient by qualified staff for further assessment, help with
referrals, updating of the crisis stabilization treatment plan, supportive counseling, skills
training, and collaboration with other service providers in the community.

(b) If crisis stabilization services are provided in a supervised, licensed residential
setting, the recipient must be contacted face-to-face daily by a qualified mental health
practitioner or mental health professional. The program must have 24-hour-a-day
residential staffing which may include staff who do not meet the qualifications in
subdivision 8. The residential staff must have 24-hour-a-day immediate direct or telephone
access to a qualified mental health professional or practitioner.

(c) If crisis stabilization services are provided in a supervised, licensed residential
setting that serves no more than four adult residents, and no more than two are recipients
of crisis stabilization services one or more individuals are present at the setting to receive
residential crisis stabilization services, the residential staff must include, for at least eight
hours per day, at least one individual who meets the qualifications in subdivision 8,
paragraph (a), clause (1) or (2).

(d) If crisis stabilization services are provided in a supervised, licensed residential
setting that serves more than four adult residents, and one or more are recipients of crisis
stabilization services, the residential staff must include, for 24 hours a day, at least one
individual who meets the qualifications in subdivision 8. During the first 48 hours that a
recipient is in the residential program, the residential program must have at least two staff
working 24 hours a day. Staffing levels may be adjusted thereafter according to the needs
of the recipient as specified in the crisis stabilization treatment plan.

Sec. 31.

Minnesota Statutes 2014, section 256B.0625, is amended by adding a
subdivision to read:

Subd. 45a.

Psychiatric residential treatment facility services for persons under
21 years of age.

(a) Medical assistance covers psychiatric residential treatment facility
services for persons under 21 years of age. Individuals who reach age 21 at the time they
are receiving services are eligible to continue receiving services until they no longer
require services or until they reach age 22, whichever occurs first.

(b) For purposes of this subdivision, "psychiatric residential treatment facility"
means a facility other than a hospital that provides psychiatric services, as described in
Code of Federal Regulations, title 42, sections 441.151 to 441.182, to individuals under
age 21 in an inpatient setting.

(c) The commissioner shall develop admissions and discharge procedures and
establish rates consistent with guidelines from the federal Centers for Medicare and
Medicaid Services.

(d) The commissioner shall enroll up to 150 certified psychiatric residential
treatment facility services beds at up to six sites. The commissioner shall select psychiatric
residential treatment facility services providers through a request for proposals process.
Providers of state-operated services may respond to the request for proposals.

EFFECTIVE DATE.

This section is effective July 1, 2017, or upon federal
approval, whichever is later. The commissioner of human services shall notify the revisor
of statutes when federal approval is obtained.

Sec. 32.

Minnesota Statutes 2014, section 256B.0625, subdivision 48, is amended to
read:

Subd. 48.

Psychiatric consultation to primary care practitioners.

Medical
assistance covers consultation provided by a psychiatrist, a psychologist, or an advanced
practice registered nurse certified in psychiatric mental health, a licensed independent
clinical social worker, as defined in section 245.462, subdivision 18, clause (2), or a
licensed marriage and family therapist, as defined in section 245.462, subdivision 18,
clause (5), via telephone, e-mail, facsimile, or other means of communication to primary
care practitioners, including pediatricians. The need for consultation and the receipt of the
consultation must be documented in the patient record maintained by the primary care
practitioner. If the patient consents, and subject to federal limitations and data privacy
provisions, the consultation may be provided without the patient present.

Sec. 33.

[256B.7631] CHEMICAL DEPENDENCY PROVIDER RATE
INCREASE.

For the chemical dependency services listed in section 254B.05, subdivision 5, and
provided on or after July 1, 2015, payment rates shall be increased by two percent over
the rates in effect on January 1, 2014, for vendors who meet the requirements of section
254B.05.

Sec. 34. CLUBHOUSE PROGRAM SERVICES.

The commissioner of human services, in consultation with stakeholders, shall
develop service standards and a payment methodology for Clubhouse program services
to be covered under medical assistance when provided by a Clubhouse International
accredited provider or a provider meeting equivalent standards. The commissioner shall
seek federal approval for the service standards and payment methodology. Upon federal
approval, the commissioner must seek and obtain legislative approval of the services
standards and funding methodology allowing medical assistance coverage of the service.

Sec. 35. EXCELLENCE IN MENTAL HEALTH DEMONSTRATION PROJECT.

By January 15, 2016, the commissioner of human services shall report to the
legislative committees in the house of representatives and senate with jurisdiction over
human services issues on the progress of the Excellence in Mental Health demonstration
project under Minnesota Statutes, section 245.735. The commissioner shall include in
the report any recommendations for legislative changes needed to implement the reform
projects specified in Minnesota Statutes, section 245.735, subdivision 4.

Sec. 36. RATE-SETTING METHODOLOGY FOR COMMUNITY-BASED
MENTAL HEALTH SERVICES.

The commissioner of human services shall conduct a comprehensive analysis
of the current rate-setting methodology for all community-based mental health
services for children and adults. The report shall include an assessment of alternative
payment structures, consistent with the intent and direction of the federal Centers for
Medicare and Medicaid Services, that could provide adequate reimbursement to sustain
community-based mental health services regardless of geographic location. The report
shall also include recommendations for establishing pay-for-performance measures for
providers delivering services consistent with evidence-based practices. In developing the
report, the commissioner shall consult with stakeholders and with outside experts in
Medicaid financing. The commissioner shall provide a report on the analysis to the chairs
of the legislative committees with jurisdiction over health and human services finance
by January 1, 2017.

Sec. 37. REPORT ON HUMAN SERVICES DATA SHARING TO
COORDINATE SERVICES AND CARE OF A PATIENT.

The commissioner of human services, in coordination with Hennepin County, shall
report to the legislative committees with jurisdiction over health care financing on the
fiscal impact, including the estimated savings, resulting from the modifications to the Data
Practices Act in the 2015 legislative session, permitting the sharing of public welfare data
and allowing the exchange of health records between providers to the extent necessary to
coordinate services and care for clients enrolled in public health care programs. Counties
shall provide information regarding the number of clients receiving care coordination, and
improved outcomes achieved due to data sharing, to the commissioner of human services
to include in the report. The report is due January 1, 2017.

Sec. 38. COMPREHENSIVE MENTAL HEALTH PROGRAM IN BELTRAMI
COUNTY.

(a) The $500,000 appropriated to the commissioner of human services for a grant to
Beltrami County to fund the planning and development of a comprehensive mental health
program is contingent upon Beltrami County providing to the commissioner of human
services a formal commitment and plan to fund, operate, and sustain the program and
services after the onetime state grant is expended. The county must provide evidence
of the funding stream or mechanism, and a sufficient local funding commitment, that
will ensure that the onetime state investment in the program will result in a sustainable
program without future state grants. The funding stream may include state funding for
programs and services for which the individuals served under this section may be eligible.
The grant under this section cannot be used for any purpose that could be funded with
state bond proceeds. This is a onetime appropriation.

(b) The planning and development of the program by the county must include an
integrated care model for the provision of mental health and substance use disorder
treatment for the individuals served under paragraph (c), in collaboration with existing
services. The model may include mobile crisis services, crisis residential services,
outpatient services, and community-based services. The model must be patient-centered,
culturally competent, and based on evidence-based practices.

(c) The comprehensive mental health program will serve individuals who are:

(1) under arrest or subject to arrest who are experiencing a mental health crisis;

(2) under a transport hold under Minnesota Statutes, section 253B.05, subdivision
2; or

(3) in immediate need of mental health crisis services.

(d) The commissioner of human services may encourage the commissioners of
the Minnesota Housing Finance Agency, corrections, and health to provide technical
assistance and support in the planning and development of the mental health program
under paragraph (a). The commissioners of the Minnesota Housing Finance Agency and
human services may explore a plan to develop short-term and long-term housing for
individuals served by the program, and the possibility of using existing appropriations
available in the housing finance budget for low-income housing or homelessness.

(e) The commissioner of human services, in consultation with Beltrami County,
shall report to the senate and house of representatives committees having jurisdiction over
mental health issues the status of the planning and development of the mental health
program, and the plan to financially support the program and services after the state grant
is expended, by November 1, 2017.

ARTICLE 3

WITHDRAWAL MANAGEMENT PROGRAMS

Section 1.

[245F.01] PURPOSE.

It is hereby declared to be the public policy of this state that the public interest is best
served by providing efficient and effective withdrawal management services to persons
in need of appropriate detoxification, assessment, intervention, and referral services.
The services shall vary to address the unique medical needs of each patient and shall be
responsive to the language and cultural needs of each patient. Services shall not be denied
on the basis of a patient's inability to pay.

Sec. 2.

[245F.02] DEFINITIONS.

Subdivision 1.

Scope.

The terms used in this chapter have the meanings given
them in this section.

Subd. 2.

Administration of medications.

"Administration of medications" means
performing a task to provide medications to a patient, and includes the following tasks
performed in the following order:

(1) checking the patient's medication record;

(2) preparing the medication for administration;

(3) administering the medication to the patient;

(4) documenting administration of the medication or the reason for not administering
the medication as prescribed; and

(5) reporting information to a licensed practitioner or a registered nurse regarding
problems with the administration of the medication or the patient's refusal to take the
medication.

Subd. 3.

Alcohol and drug counselor.

"Alcohol and drug counselor" means an
individual qualified under Minnesota Rules, part 9530.6450, subpart 5.

Subd. 4.

Applicant.

"Applicant" means an individual, partnership, voluntary
association, corporation, or other public or private organization that submits an application
for licensure under this chapter.

Subd. 5.

Care coordination.

"Care coordination" means activities intended to bring
together health services, patient needs, and streams of information to facilitate the aims
of care. Care coordination includes an ongoing needs assessment, life skills advocacy,
treatment follow-up, disease management, education, and other services as needed.

Subd. 6.

Chemical.

"Chemical" means alcohol, solvents, controlled substances as
defined in section 152.01, subdivision 4, and other mood-altering substances.

Subd. 7.

Clinically managed program.

"Clinically managed program" means a
residential setting with staff comprised of a medical director and a licensed practical nurse.
A licensed practical nurse must be on site 24 hours a day, seven days a week. A qualified
medical professional must be available by telephone or in person for consultation 24 hours
a day. Patients admitted to this level of service receive medical observation, evaluation,
and stabilization services during the detoxification process; access to medications
administered by trained, licensed staff to manage withdrawal; and a comprehensive
assessment pursuant to Minnesota Rules, part 9530.6422.

Subd. 8.

Commissioner.

"Commissioner" means the commissioner of human
services or the commissioner's designated representative.

Subd. 9.

Department.

"Department" means the Department of Human Services.

Subd. 10.

Direct patient contact.

"Direct patient contact" has the meaning given
for "direct contact" in section 245C.02, subdivision 11.

Subd. 11.

Discharge plan.

"Discharge plan" means a written plan that states with
specificity the services the program has arranged for the patient to transition back into
the community.

Subd. 12.

Licensed practitioner.

"Licensed practitioner" means a practitioner as
defined in section 151.01, subdivision 23, who is authorized to prescribe.

Subd. 13.

Medical director.

"Medical director" means an individual licensed in
Minnesota as a doctor of osteopathy or physician, or an individual licensed in Minnesota
as an advanced practice registered nurse by the Board of Nursing and certified to practice
as a clinical nurse specialist or nurse practitioner by a national nurse organization
acceptable to the board. The medical director must be employed by or under contract with
the license holder to direct and supervise health care for patients of a program licensed
under this chapter.

Subd. 14.

Medically monitored program.

"Medically monitored program" means
a residential setting with staff that includes a registered nurse and a medical director. A
registered nurse must be on site 24 hours a day. A medical director must be on site seven
days a week, and patients must have the ability to be seen by a medical director within 24
hours. Patients admitted to this level of service receive medical observation, evaluation,
and stabilization services during the detoxification process; medications administered by
trained, licensed staff to manage withdrawal; and a comprehensive assessment pursuant to
Minnesota Rules, part 9530.6422.

Subd. 15.

Nurse.

"Nurse" means a person licensed and currently registered to
practice practical or professional nursing as defined in section 148.171, subdivisions
14 and 15.

Subd. 16.

Patient.

"Patient" means an individual who presents or is presented for
admission to a withdrawal management program that meets the criteria in section 245F.05.

Subd. 17.

Peer recovery support services.

"Peer recovery support services"
means mentoring and education, advocacy, and nonclinical recovery support provided
by a recovery peer.

Subd. 18.

Program director.

"Program director" means the individual who is
designated by the license holder to be responsible for all operations of a withdrawal
management program and who meets the qualifications specified in section 245F.15,
subdivision 3.

Subd. 19.

Protective procedure.

"Protective procedure" means an action taken by a
staff member of a withdrawal management program to protect a patient from imminent
danger of harming self or others. Protective procedures include the following actions:

(1) seclusion, which means the temporary placement of a patient, without the
patient's consent, in an environment to prevent social contact; and

(2) physical restraint, which means the restraint of a patient by use of physical holds
intended to limit movement of the body.

Subd. 20.

Qualified medical professional.

"Qualified medical professional"
means an individual licensed in Minnesota as a doctor of osteopathy or physician, or an
individual licensed in Minnesota as an advanced practice registered nurse by the Board of
Nursing and certified to practice as a clinical nurse specialist or nurse practitioner by a
national nurse organization acceptable to the board.

Subd. 21.

Recovery peer.

"Recovery peer" means a person who has progressed in
the person's own recovery from substance use disorder and is willing to serve as a peer
to assist others in their recovery.

Subd. 22.

Responsible staff person.

"Responsible staff person" means the program
director, the medical director, or a staff person with current licensure as a nurse in
Minnesota. The responsible staff person must be on the premises and is authorized to
make immediate decisions concerning patient care and safety.

Subd. 23.

Substance.

"Substance" means "chemical" as defined in subdivision 6.

Subd. 24.

Substance use disorder.

"Substance use disorder" means a pattern of
substance use as defined in the current edition of the Diagnostic and Statistical Manual of
Mental Disorders.

Subd. 25.

Technician.

"Technician" means a person who meets the qualifications in
section 245F.15, subdivision 6.

Subd. 26.

Withdrawal management program.

"Withdrawal management
program" means a licensed program that provides short-term medical services on
a 24-hour basis for the purpose of stabilizing intoxicated patients, managing their
withdrawal, and facilitating access to substance use disorder treatment as indicated by a
comprehensive assessment.

Sec. 3.

[245F.03] APPLICATION.

(a) This chapter establishes minimum standards for withdrawal management
programs licensed by the commissioner that serve one or more unrelated persons.

(b) This chapter does not apply to a withdrawal management program licensed as a
hospital under sections 144.50 to 144.581. A withdrawal management program located in
a hospital licensed under sections 144.50 to 144.581 that chooses to be licensed under this
chapter is deemed to be in compliance with section 245F.13.

Sec. 4.

[245F.04] PROGRAM LICENSURE.

Subdivision 1.

General application and license requirements.

An applicant
for licensure as a clinically managed withdrawal management program or medically
monitored withdrawal management program must meet the following requirements,
except where otherwise noted. All programs must comply with federal requirements and
the general requirements in chapters 245A and 245C and sections 626.556, 626.557, and
626.5572. A withdrawal management program must be located in a hospital licensed under
sections 144.50 to 144.581, or must be a supervised living facility with a class B license
from the Department of Health under Minnesota Rules, parts 4665.0100 to 4665.9900.

Subd. 2.

Contents of application.

Prior to the issuance of a license, an applicant
must submit, on forms provided by the commissioner, documentation demonstrating
the following:

(1) compliance with this section;

(2) compliance with applicable building, fire, and safety codes; health rules; zoning
ordinances; and other applicable rules and regulations or documentation that a waiver
has been granted. The granting of a waiver does not constitute modification of any
requirement of this section;

(3) completion of an assessment of need for a new or expanded program as required
by Minnesota Rules, part 9530.6800; and

(4) insurance coverage, including bonding, sufficient to cover all patient funds,
property, and interests.

Subd. 3.

Changes in license terms.

(a) A license holder must notify the
commissioner before one of the following occurs and the commissioner must determine
the need for a new license:

(1) a change in the Department of Health's licensure of the program;

(2) a change in the medical services provided by the program that affects the
program's capacity to provide services required by the program's license designation as a
clinically managed program or medically monitored program;

(3) a change in program capacity; or

(4) a change in location.

(b) A license holder must notify the commissioner and apply for a new license
when a change in program ownership occurs.

Subd. 4.

Variances.

The commissioner may grant variances to the requirements of
this chapter under section 245A.04, subdivision 9.

Sec. 5.

[245F.05] ADMISSION AND DISCHARGE POLICIES.

Subdivision 1.

Admission policy.

A license holder must have a written admission
policy containing specific admission criteria. The policy must describe the admission
process and the point at which an individual who is eligible under subdivision 2 is
admitted to the program. A license holder must not admit individuals who do not meet the
admission criteria. The admission policy must be approved and signed by the medical
director of the facility and must designate which staff members are authorized to admit
and discharge patients. The admission policy must be posted in the area of the facility
where patients are admitted and given to all interested individuals upon request.

Subd. 2.

Admission criteria.

For an individual to be admitted to a withdrawal
management program, the program must make a determination that the program services
are appropriate to the needs of the individual. A program may only admit individuals who
meet the admission criteria and who, at the time of admission:

(1) are impaired as the result of intoxication;

(2) are experiencing physical, mental, or emotional problems due to intoxication or
withdrawal from alcohol or other drugs;

(3) are being held under apprehend and hold orders under section 253B.07,
subdivision 2b;

(4) have been committed under chapter 253B, and need temporary placement;

(5) are held under emergency holds or peace and health officer holds under section
253B.05, subdivision 1 or 2; or

(6) need to stay temporarily in a protective environment because of a crisis related
to substance use disorder. Individuals satisfying this clause may be admitted only at the
request of the county of fiscal responsibility, as determined according to section 256G.02,
subdivision 4. Individuals admitted according to this clause must not be restricted to
the facility.

Subd. 3.

Individuals denied admission by program.

(a) A license holder must
have a written policy and procedure for addressing the needs of individuals who are
denied admission to the program. These individuals include:

(1) individuals whose pregnancy, in combination with their presenting problem,
requires services not provided by the program; and

(2) individuals who are in imminent danger of harming self or others if their
behavior is beyond the behavior management capabilities of the program and staff.

(b) Programs must document denied admissions, including the date and time of
the admission request, reason for the denial of admission, and where the individual was
referred. If the individual did not receive a referral, the program must document why a
referral was not made. This information must be documented on a form approved by the
commissioner and made available to the commissioner upon request.

Subd. 4.

License holder responsibilities; denying admission or terminating
services.

(a) If a license holder denies an individual admission to the program or
terminates services to a patient and the denial or termination poses an immediate threat to
the patient's or individual's health or requires immediate medical intervention, the license
holder must refer the patient or individual to a medical facility capable of admitting the
patient or individual.

(b) A license holder must report to a law enforcement agency with proper jurisdiction
all denials of admission and terminations of services that involve the commission of a crime
against a staff member of the license holder or on the license holder's property, as provided
in Code of Federal Regulations, title 42, section 2.12(c)(5), and title 45, parts 160 to 164.

Subd. 5.

Discharge and transfer policies.

A license holder must have a written
policy and procedure, approved and signed by the medical director, that specifies
conditions under which patients may be discharged or transferred. The policy must
include the following:

(1) guidelines for determining when a patient is medically stable and whether a
patient is able to be discharged or transferred to a lower level of care;

(2) guidelines for determining when a patient needs a transfer to a higher level of care.
Clinically managed program guidelines must include guidelines for transfer to a medically
monitored program, hospital, or other acute care facility. Medically monitored program
guidelines must include guidelines for transfer to a hospital or other acute care facility;

(3) procedures staff must follow when discharging a patient under each of the
following circumstances:

(i) the patient is involved in the commission of a crime against program staff or
against a license holder's property. The procedures for a patient discharged under this
item must specify how reports must be made to law enforcement agencies with proper
jurisdiction as allowed under Code of Federal Regulations, title 42, section 2.12(c)(5), and
title 45, parts 160 to 164;

(ii) the patient is in imminent danger of harming self or others and is beyond the
license holder's capacity to ensure safety;

(iii) the patient was admitted under chapter 253B; or

(iv) the patient is leaving against staff or medical advice; and

(4) a requirement that staff must document where the patient was referred after
discharge or transfer, and if a referral was not made, the reason the patient was not
provided a referral.

Sec. 6.

[245F.06] SCREENING AND COMPREHENSIVE ASSESSMENT.

Subdivision 1.

Screening for substance use disorder.

A nurse or an alcohol
and drug counselor must screen each patient upon admission to determine whether a
comprehensive assessment is indicated. The license holder must screen patients at
each admission, except that if the patient has already been determined to suffer from a
substance use disorder, subdivision 2 applies.

Subd. 2.

Comprehensive assessment.

(a) Prior to a medically stable discharge,
but not later than 72 hours following admission, a license holder must provide a
comprehensive assessment according to section 245.4863, paragraph (a), and Minnesota
Rules, part 9530.6422, for each patient who has a positive screening for a substance use
disorder. If a patient's medical condition prevents a comprehensive assessment from
being completed within 72 hours, the license holder must document why the assessment
was not completed. The comprehensive assessment must include documentation of the
appropriateness of an involuntary referral through the civil commitment process.

(b) If available to the program, a patient's previous comprehensive assessment may
be used in the patient record. If a previously completed comprehensive assessment is used,
its contents must be reviewed to ensure the assessment is accurate and current and complies
with the requirements of this chapter. The review must be completed by a staff person
qualified according to Minnesota Rules, part 9530.6450, subpart 5. The license holder must
document that the review was completed and that the previously completed assessment is
accurate and current, or the license holder must complete an updated or new assessment.

Sec. 7.

[245F.07] STABILIZATION PLANNING.

Subdivision 1.

Stabilization plan.

Within 12 hours of admission, a license
holder must develop an individualized stabilization plan for each patient accepted for
stabilization services. The plan must be based on the patient's initial health assessment
and continually updated based on new information gathered about the patient's condition
from the comprehensive assessment, medical evaluation and consultation, and ongoing
monitoring and observations of the patient. The patient must have an opportunity to have
direct involvement in the development of the plan. The stabilization plan must:

(1) identify medical needs and goals to be achieved while the patient is receiving
services;

(2) specify stabilization services to address the identified medical needs and goals,
including amount and frequency of services;

(3) specify the participation of others in the stabilization planning process and
specific services where appropriated; and

(4) document the patient's participation in developing the content of the stabilization
plan and any updates.

Subd. 2.

Progress notes.

Progress notes must be entered in the patient's file at least
daily and immediately following any significant event, including any change that impacts
the medical, behavioral, or legal status of the patient. Progress notes must:

(1) include documentation of the patient's involvement in the stabilization services,
including the type and amount of each stabilization service;

(2) include the monitoring and observations of the patient's medical needs;

(3) include documentation of referrals made to other services or agencies;

(4) specify the participation of others; and

(5) be legible, signed, and dated by the staff person completing the documentation.

Subd. 3.

Discharge plan.

Before a patient leaves the facility, the license holder
must conduct discharge planning for the patient, document discharge planning in the
patient's record, and provide the patient with a copy of the discharge plan. The discharge
plan must include:

(1) referrals made to other services or agencies at the time of transition;

(2) the patient's plan for follow-up, aftercare, or other poststabilization services;

(3) documentation of the patient's participation in the development of the transition
plan;

(4) any service that will continue after discharge under the direction of the license
holder; and

(5) a stabilization summary and final evaluation of the patient's progress toward
treatment objectives.

Sec. 8.

[245F.08] STABILIZATION SERVICES.

Subdivision 1.

General.

The license holder must encourage patients to remain in
care for an appropriate duration as determined by the patient's stabilization plan, and must
encourage all patients to enter programs for ongoing recovery as clinically indicated. In
addition, the license holder must offer services that are patient-centered, trauma-informed,
and culturally appropriate. Culturally appropriate services must include translation services
and dietary services that meet a patient's dietary needs. All services provided to the patient
must be documented in the patient's medical record. The following services must be
offered unless clinically inappropriate and the justifying clinical rational is documented:

(1) individual or group motivational counseling sessions;

(2) individual advocacy and case management services;

(3) medical services as required in section 245F.12;

(4) care coordination provided according to subdivision 2;

(5) peer recovery support services provided according to subdivision 3;

(6) patient education provided according to subdivision 4; and

(7) referrals to mutual aid, self-help, and support groups.

Subd. 2.

Care coordination.

Care coordination services must be initiated for each
patient upon admission. The license holder must identify the staff person responsible for
the provision of each service. Care coordination services must include:

(1) coordination with significant others to assist in the stabilization planning process
whenever possible;

(2) coordination with and follow-up to appropriate medical services as identified by
the nurse or licensed practitioner;

(3) referral to substance use disorder services as indicated by the comprehensive
assessment;

(4) referral to mental health services as identified in the comprehensive assessment;

(5) referrals to economic assistance, social services, and prenatal care in accordance
with the patient's needs;

(6) review and approval of the transition plan prior to discharge, except in an
emergency, by a staff member able to provide direct patient contact;

(7) documentation of the provision of care coordination services in the patient's
file; and

(8) addressing cultural and socioeconomic factors affecting the patient's access to
services.

Subd. 3.

Peer recovery support services.

(a) Peers in recovery serve as mentors or
recovery-support partners for individuals in recovery, and may provide encouragement,
self-disclosure of recovery experiences, transportation to appointments, assistance with
finding resources that will help locate housing, job search resources, and assistance finding
and participating in support groups.

(b) Peer recovery support services are provided by a recovery peer and must be
supervised by the responsible staff person.

Subd. 4.

Patient education.

A license holder must provide education to each
patient on the following:

(1) substance use disorder, including the effects of alcohol and other drugs, specific
information about the effects of substance use on unborn children, and the signs and
symptoms of fetal alcohol spectrum disorders;

(2) tuberculosis and reporting known cases of tuberculosis disease to health care
authorities according to section 144.4804;

(3) Hepatitis C treatment and prevention;

(4) HIV as required in section 245A.19, paragraphs (b) and (c);

(5) nicotine cessation options, if applicable;

(6) opioid tolerance and overdose risks, if applicable; and

(7) long-term withdrawal issues related to use of barbiturates and benzodiazepines,
if applicable.

Subd. 5.

Mutual aid, self-help, and support groups.

The license holder must
refer patients to mutual aid, self-help, and support groups when clinically indicated and
to the extent available in the community.

Sec. 9.

[245F.09] PROTECTIVE PROCEDURES.

Subdivision 1.

Use of protective procedures.

(a) Programs must incorporate
person-centered planning and trauma-informed care into its protective procedure policies.
Protective procedures may be used only in cases where a less restrictive alternative will
not protect the patient or others from harm and when the patient is in imminent danger
of harming self or others. When a program uses a protective procedure, the program
must continuously observe the patient until the patient may safely be left for 15-minute
intervals. Use of the procedure must end when the patient is no longer in imminent danger
of harming self or others.

(b) Protective procedures may not be used:

(1) for disciplinary purposes;

(2) to enforce program rules;

(3) for the convenience of staff;

(4) as a part of any patient's health monitoring plan; or

(5) for any reason except in response to specific, current behaviors which create an
imminent danger of harm to the patient or others.

Subd. 2.

Protective procedures plan.

A license holder must have a written policy
and procedure that establishes the protective procedures that program staff must follow
when a patient is in imminent danger of harming self or others. The policy must be
appropriate to the type of facility and the level of staff training. The protective procedures
policy must include:

(1) an approval signed and dated by the program director and medical director prior
to implementation. Any changes to the policy must also be approved, signed, and dated by
the current program director and the medical director prior to implementation;

(2) which protective procedures the license holder will use to prevent patients from
imminent danger of harming self or others;

(3) the emergency conditions under which the protective procedures are permitted
to be used, if any;

(4) the patient's health conditions that limit the specific procedures that may be used
and alternative means of ensuring safety;

(5) emergency resources the program staff must contact when a patient's behavior
cannot be controlled by the procedures established in the policy;

(6) the training that staff must have before using any protective procedure;

(7) documentation of approved therapeutic holds;

(8) the use of law enforcement personnel as described in subdivision 4;

(9) standards governing emergency use of seclusion. Seclusion must be used only
when less restrictive measures are ineffective or not feasible. The standards in items (i) to
(vii) must be met when seclusion is used with a patient:

(i) seclusion must be employed solely for the purpose of preventing a patient from
imminent danger of harming self or others;

(ii) seclusion rooms must be equipped in a manner that prevents patients from
self-harm using projections, windows, electrical fixtures, or hard objects, and must allow
the patient to be readily observed without being interrupted;

(iii) seclusion must be authorized by the program director, a licensed physician, or
a registered nurse. If one of these individuals is not present in the facility, the program
director or a licensed physician or registered nurse must be contacted and authorization
must be obtained within 30 minutes of initiating seclusion, according to written policies;

(iv) patients must not be placed in seclusion for more than 12 hours at any one time;

(v) once the condition of a patient in seclusion has been determined to be safe
enough to end continuous observation, a patient in seclusion must be observed at a
minimum of every 15 minutes for the duration of seclusion and must always be within
hearing range of program staff;

(vi) a process for program staff to use to remove a patient to other resources available
to the facility if seclusion does not sufficiently assure patient safety; and

(vii) a seclusion area may be used for other purposes, such as intensive observation, if
the room meets normal standards of care for the purpose and if the room is not locked; and

(10) physical holds may only be used when less restrictive measures are not feasible.
The standards in items (i) to (iv) must be met when physical holds are used with a patient:

(i) physical holds must be employed solely for preventing a patient from imminent
danger of harming self or others;

(ii) physical holds must be authorized by the program director, a licensed physician,
or a registered nurse. If one of these individuals is not present in the facility, the program
director or a licensed physician or a registered nurse must be contacted and authorization
must be obtained within 30 minutes of initiating a physical hold, according to written
policies;

(iii) the patient's health concerns must be considered in deciding whether to use
physical holds and which holds are appropriate for the patient; and

(iv) only approved holds may be utilized. Prone holds are not allowed and must
not be authorized.

Subd. 3.

Records.

Each use of a protective procedure must be documented in the
patient record. The patient record must include:

(1) a description of specific patient behavior precipitating a decision to use a
protective procedure, including date, time, and program staff present;

(2) the specific means used to limit the patient's behavior;

(3) the time the protective procedure began, the time the protective procedure ended,
and the time of each staff observation of the patient during the procedure;

(4) the names of the program staff authorizing the use of the protective procedure,
the time of the authorization, and the program staff directly involved in the protective
procedure and the observation process;

(5) a brief description of the purpose for using the protective procedure, including
less restrictive interventions used prior to the decision to use the protective procedure
and a description of the behavioral results obtained through the use of the procedure. If
a less restrictive intervention was not used, the reasons for not using a less restrictive
intervention must be documented;

(6) documentation by the responsible staff person on duty of reassessment of the
patient at least every 15 minutes to determine if seclusion or the physical hold can be
terminated;

(7) a description of the physical holds used in escorting a patient; and

(8) any injury to the patient that occurred during the use of a protective procedure.

Subd. 4.

Use of law enforcement.

The program must maintain a central log
documenting each incident involving use of law enforcement, including:

(1) the date and time law enforcement arrived at and left the program;

(2) the reason for the use of law enforcement;

(3) if law enforcement used force or a protective procedure and which protective
procedure was used; and

(4) whether any injuries occurred.

Subd. 5.

Administrative review.

(a) The license holder must keep a record of all
patient incidents and protective procedures used. An administrative review of each use
of protective procedures must be completed within 72 hours by someone other than the
person who used the protective procedure. The record of the administrative review of the
use of protective procedures must state whether:

(1) the required documentation was recorded for each use of a protective procedure;

(2) the protective procedure was used according to the policy and procedures;

(3) the staff who implemented the protective procedure was properly trained; and

(4) the behavior met the standards for imminent danger of harming self or others.

(b) The license holder must conduct and document a quarterly review of the use of
protective procedures with the goal of reducing the use of protective procedures. The
review must include:

(1) any patterns or problems indicated by similarities in the time of day, day of the
week, duration of the use of a protective procedure, individuals involved, or other factors
associated with the use of protective procedures;

(2) any injuries resulting from the use of protective procedures;

(3) whether law enforcement was involved in the use of a protective procedure;

(4) actions needed to correct deficiencies in the program's implementation of
protective procedures;

(5) an assessment of opportunities missed to avoid the use of protective procedures;
and

(6) proposed actions to be taken to minimize the use of protective procedures.

Sec. 10.

[245F.10] PATIENT RIGHTS AND GRIEVANCE PROCEDURES.

Subdivision 1.

Patient rights.

Patients have the rights in sections 144.651,
148F.165, and 253B.03, as applicable. The license holder must give each patient, upon
admission, a written statement of patient rights. Program staff must review the statement
with the patient.

Subd. 2.

Grievance procedure.

Upon admission, the license holder must explain
the grievance procedure to the patient or patient's representative and give the patient a
written copy of the procedure. The grievance procedure must be posted in a place visible
to the patient and must be made available to current and former patients upon request. A
license holder's written grievance procedure must include:

(1) staff assistance in developing and processing the grievance;

(2) an initial response to the patient who filed the grievance within 24 hours of the
program's receipt of the grievance, and timelines for additional steps to be taken to resolve
the grievance, including access to the person with the highest level of authority in the
program if the grievance cannot be resolved by other staff members; and

(3) the addresses and telephone numbers of the Department of Human Services
Licensing Division, Department of Health Office of Health Facilities Complaints, Board
of Behavioral Health and Therapy, Board of Medical Practice, Board of Nursing, and
Office of the Ombudsman for Mental Health and Developmental Disabilities.

Sec. 11.

[245F.11] PATIENT PROPERTY MANAGEMENT.

A license holder must meet the requirements for handling patient funds and property
in section 245A.04, subdivision 14, except:

(1) a license holder must establish policies regarding the use of personal property to
assure that program activities and the rights of other patients are not infringed, and may
take temporary custody of personal property if these policies are violated;

(2) a license holder must retain the patient's property for a minimum of seven days
after discharge if the patient does not reclaim the property after discharge; and

(3) the license holder must return to the patient all of the patient's property held in
trust at discharge, regardless of discharge status, except that:

(i) drugs, drug paraphernalia, and drug containers that are subject to forfeiture under
section 609.5316 must be given over to the custody of a local law enforcement agency or,
if giving the property over to the custody of a local law enforcement agency would violate
Code of Federal Regulations, title 42, sections 2.1 to 2.67, and title 45, parts 160 to 164,
destroyed by a staff person designated by the program director; and

(ii) weapons, explosives, and other property that may cause serious harm to self
or others must be transferred to a local law enforcement agency. The patient must be
notified of the transfer and the right to reclaim the property if the patient has a legal right
to possess the item.

Sec. 12.

[245F.12] MEDICAL SERVICES.

Subdivision 1.

Services provided at all programs.

Withdrawal management
programs must have:

(1) a standardized data collection tool for collecting health-related information about
each patient. The data collection tool must be developed in collaboration with a registered
nurse and approved and signed by the medical director; and

(2) written procedures for a nurse to assess and monitor patient health within the
nurse's scope of practice. The procedures must:

(i) be approved by the medical director;

(ii) include a follow-up screening conducted between four and 12 hours after service
initiation to collect information relating to acute intoxication, other health complaints, and
behavioral risk factors that the patient may not have communicated at service initiation;

(iii) specify the physical signs and symptoms that, when present, require consultation
with a registered nurse or a physician and that require transfer to an acute care facility or
a higher level of care than that provided by the program;

(iv) specify those staff members responsible for monitoring patient health and
provide for hourly observation and for more frequent observation if the initial health
assessment or follow-up screening indicates a need for intensive physical or behavioral
health monitoring; and

(v) specify the actions to be taken to address specific complicating conditions,
including pregnancy or the presence of physical signs or symptoms of any other medical
condition.

Subd. 2.

Services provided at clinically managed programs.

In addition to the
services listed in subdivision 1, clinically managed programs must:

(1) have a licensed practical nurse on site 24 hours a day and a medical director;

(2) provide an initial health assessment conducted by a nurse upon admission;

(3) provide daily on-site medical evaluation and consultation with a registered
nurse and have a registered nurse available by telephone or in person for consultation
24 hours a day;

(4) have a qualified medical professional available by telephone or in person for
consultation 24 hours a day; and

(5) have appropriately licensed staff available to administer medications according
to prescriber-approved orders.

Subd. 3.

Services provided at medically monitored programs.

In addition to the
services listed in subdivision 1, medically monitored programs must have a registered
nurse on site 24 hours a day and a medical director. Medically monitored programs must
provide intensive inpatient withdrawal management services which must include:

(1) an initial health assessment conducted by a registered nurse upon admission;

(2) the availability of a medical evaluation and consultation with a registered nurse
24 hours a day;

(3) the availability of a qualified medical professional by telephone or in person
for consultation 24 hours a day;

(4) the ability to be seen within 24 hours or sooner by a qualified medical
professional if the initial health assessment indicates the need to be seen;

(5) the availability of on-site monitoring of patient care seven days a week by a
qualified medical professional; and

(6) appropriately licensed staff available to administer medications according to
prescriber-approved orders.

Sec. 13.

[245F.13] MEDICATIONS.

Subdivision 1.

Administration of medications.

A license holder must employ or
contract with a registered nurse to develop the policies and procedures for medication
administration. A registered nurse must provide supervision as defined in section 148.171,
subdivision 23, for the administration of medications. For clinically managed programs,
the registered nurse supervision must include on-site supervision at least monthly or more
often as warranted by the health needs of the patient. The medication administration
policies and procedures must include:

(1) a provision that patients may carry emergency medication such as nitroglycerin
as instructed by their prescriber;

(2) requirements for recording the patient's use of medication, including staff
signatures with date and time;

(3) guidelines regarding when to inform a licensed practitioner or a registered nurse
of problems with medication administration, including failure to administer, patient
refusal of a medication, adverse reactions, or errors; and

(4) procedures for acceptance, documentation, and implementation of prescriptions,
whether written, oral, telephonic, or electronic.

Subd. 2.

Control of drugs.

A license holder must have in place and implement
written policies and procedures relating to control of drugs. The policies and procedures
must be developed by a registered nurse and must contain the following provisions:

(1) a requirement that all drugs must be stored in a locked compartment. Schedule II
drugs, as defined in section 152.02, subdivision 3, must be stored in a separately locked
compartment that is permanently affixed to the physical plant or a medication cart;

(2) a system for accounting for all scheduled drugs each shift;

(3) a procedure for recording a patient's use of medication, including staff signatures
with time and date;

(4) a procedure for destruction of discontinued, outdated, or deteriorated medications;

(5) a statement that only authorized personnel are permitted to have access to the
keys to the locked drug compartments; and

(6) a statement that no legend drug supply for one patient may be given to another
patient.

Sec. 14.

[245F.14] STAFFING REQUIREMENTS AND DUTIES.

Subdivision 1.

Program director.

A license holder must employ or contract with a
person, on a full-time basis, to serve as program director. The program director must be
responsible for all aspects of the facility and the services delivered to the license holder's
patients. An individual may serve as program director for more than one program owned
by the same license holder.

Subd. 2.

Responsible staff person.

During all hours of operation, a license holder
must designate a staff member as the responsible staff person to be present and awake
in the facility and be responsible for the program. The responsible staff person must
have decision-making authority over the day-to-day operation of the program as well
as the authority to direct the activity of or terminate the shift of any staff member who
has direct patient contact.

Subd. 3.

Technician required.

A license holder must have one technician awake
and on duty at all times for every ten patients in the program. A license holder may assign
technicians according to the need for care of the patients, except that the same technician
must not be responsible for more than 15 patients at one time. For purposes of establishing
this ratio, all staff whose qualifications meet or exceed those for technicians under section
245F.15, subdivision 6, and who are performing the duties of a technician may be counted
as technicians. The same individual may not be counted as both a technician and an
alcohol and drug counselor.

Subd. 4.

Registered nurse required.

A license holder must employ or contract
with a registered nurse, who must be available 24 hours a day by telephone or in person
for consultation. The registered nurse is responsible for:

(1) establishing and implementing procedures for the provision of nursing care and
delegated medical care, including:

(i) a health monitoring plan;

(ii) a medication control plan;

(iii) training and competency evaluations for staff performing delegated medical and
nursing functions;

(iv) handling serious illness, accident, or injury to patients;

(v) an infection control program; and

(vi) a first aid kit;

(2) delegating nursing functions to other staff consistent with their education,
competence, and legal authorization;

(3) assigning, supervising, and evaluating the performance of nursing tasks; and

(4) implementing condition-specific protocols in compliance with section 151.37,
subdivision 2.

Subd. 5.

Medical director required.

A license holder must have a medical director
available for medical supervision. The medical director is responsible for ensuring the
accurate and safe provision of all health-related services and procedures. A license
holder must obtain and document the medical director's annual approval of the following
procedures before the procedures may be used:

(1) admission, discharge, and transfer criteria and procedures;

(2) a health services plan;

(3) physical indicators for a referral to a physician, registered nurse, or hospital, and
procedures for referral;

(4) procedures to follow in case of accident, injury, or death of a patient;

(5) formulation of condition-specific protocols regarding the medications that
require a withdrawal regimen that will be administered to patients;

(6) an infection control program;

(7) protective procedures; and

(8) a medication control plan.

Subd. 6.

Alcohol and drug counselor.

A withdrawal management program must
provide one full-time equivalent alcohol and drug counselor for every 16 patients served
by the program.

Subd. 7.

Ensuring staff-to-patient ratio.

The responsible staff person under
subdivision 2 must ensure that the program does not exceed the staff-to-patient ratios in
subdivisions 3 and 6 and must inform admitting staff of the current staffed capacity of
the program for that shift. A license holder must have a written policy for documenting
staff-to-patient ratios for each shift and actions to take when staffed capacity is reached.

Sec. 15.

[245F.15] STAFF QUALIFICATIONS.

Subdivision 1.

Qualifications for all staff who have direct patient contact.

(a) All
staff who have direct patient contact must be at least 18 years of age and must, at the time
of hiring, document that they meet the requirements in paragraph (b), (c), or (d).

(b) Program directors, supervisors, nurses, and alcohol and drug counselors must be
free of substance use problems for at least two years immediately preceding their hiring
and must sign a statement attesting to that fact.

(c) Recovery peers must be free of substance use problems for at least one year
immediately preceding their hiring and must sign a statement attesting to that fact.

(d) Technicians and other support staff must be free of substance use problems
for at least six months immediately preceding their hiring and must sign a statement
attesting to that fact.

Subd. 2.

Continuing employment; no substance use problems.

License holders
must require staff to be free from substance use problems as a condition of continuing
employment. Staff are not required to sign statements attesting to their freedom from
substance use problems after the initial statement required by subdivision 1. Staff with
substance use problems must be immediately removed from any responsibilities that
include direct patient contact.

Subd. 3.

Program director qualifications.

A program director must:

(1) have at least one year of work experience in direct service to individuals
with substance use disorders or one year of work experience in the management or
administration of direct service to individuals with substance use disorders;

(2) have a baccalaureate degree or three years of work experience in administration
or personnel supervision in human services; and

(3) know and understand the requirements of this chapter and chapters 245A and
245C, and sections 253B.04, 253B.05, 626.556, 626.557, and 626.5572.

Subd. 4.

Alcohol and drug counselor qualifications.

An alcohol and drug
counselor must meet the requirements in Minnesota Rules, part 9530.6450, subpart 5.

Subd. 5.

Responsible staff person qualifications.

Each responsible staff person
must know and understand the requirements of this chapter and sections 245A.65,
253B.04, 253B.05, 626.556, 626.557, and 626.5572. In a clinically managed program, the
responsible staff person must be a licensed practical nurse employed by or under contract
with the license holder. In a medically monitored program, the responsible staff person
must be a registered nurse, program director, or physician.

Subd. 6.

Technician qualifications.

A technician employed by a program must
demonstrate competency, prior to direct patient contact, in the following areas:

(1) knowledge of the client bill of rights in section 148F.165, and staff responsibilities
in sections 144.651 and 253B.03;

(2) knowledge of and the ability to perform basic health screening procedures with
intoxicated patients that consist of:

(i) blood pressure, pulse, temperature, and respiration readings;

(ii) interviewing to obtain relevant medical history and current health complaints; and

(iii) visual observation of a patient's health status, including monitoring a patient's
behavior as it relates to health status;

(3) a current first aid certificate from the American Red Cross or an equivalent
organization; a current cardiopulmonary resuscitation certificate from the American Red
Cross, the American Heart Association, a community organization, or an equivalent
organization; and knowledge of first aid for seizures, trauma, and loss of consciousness; and

(4) knowledge of and ability to perform basic activities of daily living and personal
hygiene.

Subd. 7.

Recovering peer qualifications.

Recovery peers must:

(1) be at least 21 years of age and have a high school diploma or its equivalent;

(2) have a minimum of one year in recovery from substance use disorder;

(3) have completed a curriculum designated by the commissioner that teaches
specific skills and training in the domains of ethics and boundaries, advocacy, mentoring
and education, and recovery and wellness support; and

(4) receive supervision in areas specific to the domains of their role by qualified
supervisory staff.

Subd. 8.

Personal relationships.

A license holder must have a written policy
addressing personal relationships between patients and staff who have direct patient
contact. The policy must:

(1) prohibit direct patient contact between a patient and a staff member if the staff
member has had a personal relationship with the patient within two years prior to the
patient's admission to the program;

(2) prohibit access to a patient's clinical records by a staff member who has had a
personal relationship with the patient within two years prior to the patient's admission,
unless the patient consents in writing; and

(3) prohibit a clinical relationship between a staff member and a patient if the staff
member has had a personal relationship with the patient within two years prior to the
patient's admission. If a personal relationship exists, the staff member must report the
relationship to the staff member's supervisor and recuse the staff member from a clinical
relationship with that patient.

Sec. 16.

[245F.16] PERSONNEL POLICIES AND PROCEDURES.

Subdivision 1.

Policy requirements.

A license holder must have written personnel
policies and must make them available to staff members at all times. The personnel
policies must:

(1) ensure that staff member's retention, promotion, job assignment, or pay are not
affected by a good faith communication between the staff member and the Department
of Human Services, Department of Health, Ombudsman for Mental Health and
Developmental Disabilities, law enforcement, or local agencies that investigate complaints
regarding patient rights, health, or safety;

(2) include a job description for each position that specifies job responsibilities,
degree of authority to execute job responsibilities, standards of job performance related to
specified job responsibilities, and qualifications;

(3) provide for written job performance evaluations for staff members of the license
holder at least annually;

(4) describe behavior that constitutes grounds for disciplinary action, suspension, or
dismissal, including policies that address substance use problems and meet the requirements
of section 245F.15, subdivisions 1 and 2. The policies and procedures must list behaviors
or incidents that are considered substance use problems. The list must include:

(i) receiving treatment for substance use disorder within the period specified for the
position in the staff qualification requirements;

(ii) substance use that has a negative impact on the staff member's job performance;

(iii) substance use that affects the credibility of treatment services with patients,
referral sources, or other members of the community; and

(iv) symptoms of intoxication or withdrawal on the job;

(5) include policies prohibiting personal involvement with patients and policies
prohibiting patient maltreatment as specified under chapter 604 and sections 245A.65,
626.556, 626.557, and 626.5572;

(6) include a chart or description of organizational structure indicating the lines
of authority and responsibilities;

(7) include a written plan for new staff member orientation that, at a minimum,
includes training related to the specific job functions for which the staff member was hired,
program policies and procedures, patient needs, and the areas identified in subdivision 2,
paragraphs (b) to (e); and

(8) include a policy on the confidentiality of patient information.

Subd. 2.

Staff development.

(a) A license holder must ensure that each staff
member receives orientation training before providing direct patient care and at least
30 hours of continuing education every two years. A written record must be kept to
demonstrate completion of training requirements.

(b) Within 72 hours of beginning employment, all staff having direct patient contact
must be provided orientation on the following:

(1) specific license holder and staff responsibilities for patient confidentiality;

(2) standards governing the use of protective procedures;

(3) patient ethical boundaries and patient rights, including the rights of patients
admitted under chapter 253B;

(4) infection control procedures;

(5) mandatory reporting under sections 245A.65, 626.556, and 626.557, including
specific training covering the facility's policies concerning obtaining patient releases
of information;

(6) HIV minimum standards as required in section 245A.19;

(7) motivational counseling techniques and identifying stages of change; and

(8) eight hours of training on the program's protective procedures policy required in
section 245F.09, including:

(i) approved therapeutic holds;

(ii) protective procedures used to prevent patients from imminent danger of harming
self or others;

(iii) the emergency conditions under which the protective procedures may be used, if
any;

(iv) documentation standards for using protective procedures;

(v) how to monitor and respond to patient distress; and

(vi) person-centered planning and trauma-informed care.

(c) All staff having direct patient contact must be provided annual training on the
following:

(1) infection control procedures;

(2) mandatory reporting under sections 245A.65, 626.556, and 626.557, including
specific training covering the facility's policies concerning obtaining patient releases
of information;

(3) HIV minimum standards as required in section 245A.19; and

(4) motivational counseling techniques and identifying stages of change.

(d) All staff having direct patient contact must be provided training every two
years on the following:

(1) specific license holder and staff responsibilities for patient confidentiality;

(2) standards governing use of protective procedures, including:

(i) approved therapeutic holds;

(ii) protective procedures used to prevent patients from imminent danger of harming
self or others;

(iii) the emergency conditions under which the protective procedures may be used, if
any;

(iv) documentation standards for using protective procedures;

(v) how to monitor and respond to patient distress; and

(vi) person-centered planning and trauma-informed care; and

(3) patient ethical boundaries and patient rights, including the rights of patients
admitted under chapter 253B.

(e) Continuing education that is completed in areas outside of the required topics
must provide information to the staff person that is useful to the performance of the
individual staff person's duties.

Sec. 17.

[245F.17] PERSONNEL FILES.

A license holder must maintain a separate personnel file for each staff member. At a
minimum, the file must contain:

(1) a completed application for employment signed by the staff member that
contains the staff member's qualifications for employment and documentation related to
the applicant's background study data, as defined in chapter 245C;

(2) documentation of the staff member's current professional license or registration,
if relevant;

(3) documentation of orientation and subsequent training;

(4) documentation of a statement of freedom from substance use problems; and

(5) an annual job performance evaluation.

Sec. 18.

[245F.18] POLICY AND PROCEDURES MANUAL.

A license holder must develop a written policy and procedures manual that is
alphabetically indexed and has a table of contents, so that staff have immediate access
to all policies and procedures, and that consumers of the services, and other authorized
parties have access to all policies and procedures. The manual must contain the following
materials:

(1) a description of patient education services as required in section 245F.06;

(2) personnel policies that comply with section 245F.16;

(3) admission information and referral and discharge policies that comply with
section 245F.05;

(4) a health monitoring plan that complies with section 245F.12;

(5) a protective procedures policy that complies with section 245F.09, if the program
elects to use protective procedures;

(6) policies and procedures for assuring appropriate patient-to-staff ratios that
comply with section 245F.14;

(7) policies and procedures for assessing and documenting the susceptibility for
risk of abuse to the patient as the basis for the individual abuse prevention plan required
by section 245A.65;

(8) procedures for mandatory reporting as required by sections 245A.65, 626.556,
and 626.557;

(9) a medication control plan that complies with section 245F.13; and

(10) policies and procedures regarding HIV that meet the minimum standards
under section 245A.19.

Sec. 19.

[245F.19] PATIENT RECORDS.

Subdivision 1.

Patient records required.

A license holder must maintain a file of
current patient records on the program premises where the treatment is provided. Each
entry in each patient record must be signed and dated by the staff member making the
entry. Patient records must be protected against loss, tampering, or unauthorized disclosure
in compliance with chapter 13 and section 254A.09; Code of Federal Regulations, title 42,
sections 2.1 to 2.67; and title 45, parts 160 to 164.

Subd. 2.

Records retention.

A license holder must retain and store records as
required by section 245A.041, subdivisions 3 and 4.

Subd. 3.

Contents of records.

Patient records must include the following:

(1) documentation of the patient's presenting problem, any substance use screening,
the most recent assessment, and any updates;

(2) a stabilization plan and progress notes as required by section 245F.07,
subdivisions 1 and 2;

(3) a discharge summary as required by section 245F.07, subdivision 3;

(4) an individual abuse prevention plan that complies with section 245A.65, and
related rules;

(5) documentation of referrals made; and

(6) documentation of the monitoring and observations of the patient's medical needs.

Sec. 20.

[245F.20] DATA COLLECTION REQUIRED.

The license holder must participate in the drug and alcohol abuse normative
evaluation system (DAANES) by submitting, in a format provided by the commissioner,
information concerning each patient admitted to the program. Staff submitting data must
be trained by the license holder with the DAANES Web manual.

Sec. 21.

[245F.21] PAYMENT METHODOLOGY.

The commissioner shall develop a payment methodology for services provided
under this chapter or by an Indian Health Services facility or a facility owned and operated
by a tribe or tribal organization operating under Public Law 93-638 as a 638 facility. The
commissioner shall seek federal approval for the methodology. Upon federal approval, the
commissioner must seek and obtain legislative approval of the funding methodology to
support the service.

ARTICLE 4

DIRECT CARE AND TREATMENT

Section 1.

Minnesota Statutes 2014, section 43A.241, is amended to read:

43A.241 INSURANCE CONTRIBUTIONS; FORMER CORRECTIONS
EMPLOYEES.

(a) This section applies to a person who:

(1) was employed by the commissioner of the Department of Corrections at a state
institution under control of the commissioner, and in that employment was a member
of the general plan of the Minnesota State Retirement System; or by the Department
of Human Services;

(2) was covered by the correctional employee retirement plan under section 352.91
or the general state employees retirement plan of the Minnesota State Retirement System
as defined in section 352.021;

(3) while employed under clause (1), was assaulted by:

an inmate at a state institution under control of the commissioner of the Department
of Corrections (i) a person under correctional supervision for a criminal offense; or

(ii) a client or patient at the Minnesota sex offender program, or at a state-operated
forensic services program as defined in section 352.91, subdivision 3j, under the control of
the commissioner of the Department of Human Services; and

(3) (4) as a direct result of the assault under clause (3), was determined to be
totally and permanently physically disabled under laws governing the Minnesota State
Retirement System.

(b) For a person to whom this section applies, the commissioner of the Department
of Corrections or the commissioner of the Department of Human Services must continue
to make the employer contribution for hospital, medical, and dental benefits under the
State Employee Group Insurance Program after the person terminates state service. If
the person had dependent coverage at the time of terminating state service, employer
contributions for dependent coverage also must continue under this section. The employer
contributions must be in the amount of the employer contribution for active state
employees at the time each payment is made. The employer contributions must continue
until the person reaches age 65, provided the person makes the required employee
contributions, in the amount required of an active state employee, at the time and in
the manner specified by the commissioner.

EFFECTIVE DATE.

This section is effective the day following final enactment
and applies to a person assaulted by an inmate, client, or patient on or after that date.

Sec. 2.

Minnesota Statutes 2014, section 246.54, subdivision 1, is amended to read:

Subdivision 1.

County portion for cost of care.

(a) Except for chemical
dependency services provided under sections 254B.01 to 254B.09, the client's county
shall pay to the state of Minnesota a portion of the cost of care provided in a regional
treatment center or a state nursing facility to a client legally settled in that county. A
county's payment shall be made from the county's own sources of revenue and payments
shall equal a percentage of the cost of care, as determined by the commissioner, for each
day, or the portion thereof, that the client spends at a regional treatment center or a state
nursing facility according to the following schedule:

(1) zero percent for the first 30 days;

(2) 20 percent for days 31 to 60 and over if the stay is determined to be clinically
appropriate for the client; and

(3) 75 percent for any days over 60 100 percent for each day during the stay,
including the day of admission, when the facility determines that it is clinically appropriate
for the client to be discharged.

(b) The increase in the county portion for cost of care under paragraph (a), clause
(3), shall be imposed when the treatment facility has determined that it is clinically
appropriate for the client to be discharged.

(c) (b) If payments received by the state under sections 246.50 to 246.53 exceed
80 percent of the cost of care for days over 31 to 60, or 25 percent for days over 60 for
clients who meet the criteria in paragraph (a), clause (2), the county shall be responsible
for paying the state only the remaining amount. The county shall not be entitled to
reimbursement from the client, the client's estate, or from the client's relatives, except as
provided in section 246.53.

Sec. 3.

Minnesota Statutes 2014, section 246B.01, subdivision 2b, is amended to read:

Subd. 2b.

Cost of care.

"Cost of care" means the commissioner's charge for housing
and, treatment, aftercare services, and supervision, provided to any person admitted to the
Minnesota sex offender program.

For purposes of this subdivision, "charge for housing and, treatment, aftercare
services, and supervision" means the cost of services, treatment, maintenance, bonds issued
for capital improvements, depreciation of buildings and equipment, and indirect costs
related to the operation of state facilities. The commissioner may determine the charge for
services on an anticipated average per diem basis as an all-inclusive charge per facility.

Sec. 4.

[246B.033] BIENNIAL EVALUATIONS OF CIVILLY COMMITTED
SEX OFFENDERS.

Subdivision 1.

Duty of executive director.

The executive director shall ensure that
each civilly committed sex offender, including those on provisional discharge status, is
evaluated in the form of a forensic risk assessment and treatment progress report not less
than once every two years. The purpose of these evaluations is to identify the current
treatment needs, risk of reoffense, and potential for reduction in custody. The executive
director shall ensure that those performing such evaluations are qualified to do so and are
trained on current research and legal standards relating to risk assessment, sex offender
treatment, and reductions in custody.

Subd. 2.

Assessment and report.

A copy of the forensic risk assessment and the
treatment progress report must be provided to the civilly committed sex offender and
the civilly committed sex offender's attorney, along with a copy of a blank petition for
reduction in custody and instructions on completing and filing the petition.

Subd. 3.

Suspension of duty if individual is in correctional facility.

The executive
director may suspend or delay a civilly committed sex offender's evaluation during any
time period that the individual is residing in a correctional facility operated by the state
or federal government until the individual returns to the custody of the Minnesota sex
offender program.

Subd. 4.

Right to petition.

This section must not impair or restrict a civilly
committed sex offender's right to petition for a reduction in custody as provided in chapter
253D. The executive director may adjust the scheduling of an individual's evaluation
under this section to avoid duplication and inefficiency in circumstances where an
individual has within a two-year period already received a risk assessment and treatment
progress report as the result of a petition for reduction in custody.

EFFECTIVE DATE.

This section is effective July 1, 2015. The executive director
is not required to begin providing civilly committed sex offenders with evaluations until
January 4, 2016.

Sec. 5.

Minnesota Statutes 2014, section 246B.10, is amended to read:

246B.10 LIABILITY OF COUNTY; REIMBURSEMENT.

The civilly committed sex offender's county shall pay to the state a portion of the
cost of care provided in the Minnesota sex offender program to a civilly committed sex
offender who has legally settled in that county. A county's payment must be made from
the county's own sources of revenue and payments must equal 25 percent of the cost of
care, as determined by the commissioner, for each day or portion of a day, that the civilly
committed sex offender spends at the facility receives services, either within a Minnesota
sex offender program facility or while on provisional discharge. If payments received by
the state under this chapter exceed 75 percent of the cost of care for civilly committed sex
offenders admitted to the program on or after August 1, 2011, the county is responsible
for paying the state the remaining amount. If payments received by the state under this
chapter exceed 90 percent of the cost of care for civilly committed sex offenders admitted
to the program prior to August 1, 2011, the county is responsible for paying the state the
remaining amount. The county is not entitled to reimbursement from the civilly committed
sex offender, the civilly committed sex offender's estate, or from the civilly committed sex
offender's relatives, except as provided in section 246B.07.

EFFECTIVE DATE.

The amendment to the provision governing county payments
for each day or portion of a day that a civilly committed sex offender receives services
is effective for civilly committed sex offenders provisionally discharged on or after the
day following final enactment.

ARTICLE 5

SIMPLIFICATION OF PUBLIC ASSISTANCE PROGRAMS

Section 1.

Minnesota Statutes 2014, section 119B.011, subdivision 15, is amended to
read:

Subd. 15.

Income.

"Income" means earned or unearned income received by all
family members, including as defined under section 256P.01, subdivision 3, unearned
income as defined under section 256P.01, subdivision 8, and public assistance cash benefits
and, including the Minnesota family investment program, diversionary work program,
work benefit, Minnesota supplemental aid, general assistance, refugee cash assistance,
at-home infant child care subsidy payments, unless specifically excluded and child support
and maintenance distributed to the family under section 256.741, subdivision 15. The
following are excluded deducted from income: funds used to pay for health insurance
premiums for family members, Supplemental Security Income, scholarships, work-study
income, and grants that cover costs or reimbursement for tuition, fees, books, and
educational supplies; student loans for tuition, fees, books, supplies, and living expenses;
state and federal earned income tax credits; assistance specifically excluded as income by
law; in-kind income such as food support, energy assistance, foster care assistance, medical
assistance, child care assistance, and housing subsidies; earned income of full-time or
part-time students up to the age of 19, who have not earned a high school diploma or GED
high school equivalency diploma including earnings from summer employment; grant
awards under the family subsidy program; nonrecurring lump-sum income only to the
extent that it is earmarked and used for the purpose for which it is paid; and any income
assigned to the public authority according to section 256.741 and child or spousal support
paid to or on behalf of a person or persons who live outside of the household. Income
sources not included in this subdivision and section 256P.06, subdivision 3, are not counted.

Sec. 2.

Minnesota Statutes 2014, section 119B.025, subdivision 1, is amended to read:

Subdivision 1.

Factors which must be verified.

(a) The county shall verify the
following at all initial child care applications using the universal application:

(1) identity of adults;

(2) presence of the minor child in the home, if questionable;

(3) relationship of minor child to the parent, stepparent, legal guardian, eligible
relative caretaker, or the spouses of any of the foregoing;

(4) age;

(5) immigration status, if related to eligibility;

(6) Social Security number, if given;

(7) income;

(8) spousal support and child support payments made to persons outside the
household;

(9) residence; and

(10) inconsistent information, if related to eligibility.

(b) If a family did not use the universal application or child care addendum to apply
for child care assistance, the family must complete the universal application or child care
addendum at its next eligibility redetermination and the county must verify the factors
listed in paragraph (a) as part of that redetermination. Once a family has completed a
universal application or child care addendum, the county shall use the redetermination
form described in paragraph (c) for that family's subsequent redeterminations. Eligibility
must be redetermined at least every six months. A family is considered to have met the
eligibility redetermination requirement if a complete redetermination form and all required
verifications are received within 30 days after the date the form was due. Assistance shall
be payable retroactively from the redetermination due date. For a family where at least
one parent is under the age of 21, does not have a high school or general equivalency
diploma, and is a student in a school district or another similar program that provides or
arranges for child care, as well as parenting, social services, career and employment
supports, and academic support to achieve high school graduation, the redetermination of
eligibility shall be deferred beyond six months, but not to exceed 12 months, to the end of
the student's school year. If a family reports a change in an eligibility factor before the
family's next regularly scheduled redetermination, the county must recalculate eligibility
without requiring verification of any eligibility factor that did not change. Changes must
be reported as required by section 256P.07. A change in income occurs on the day the
participant received the first payment reflecting the change in income.

(c) The commissioner shall develop a redetermination form to redetermine eligibility
and a change report form to report changes that minimize paperwork for the county and
the participant.

Sec. 3.

Minnesota Statutes 2014, section 119B.035, subdivision 4, is amended to read:

Subd. 4.

Assistance.

(a) A family is limited to a lifetime total of 12 months of
assistance under subdivision 2. The maximum rate of assistance is equal to 68 percent
of the rate established under section 119B.13 for care of infants in licensed family child
care in the applicant's county of residence.

(b) A participating family must report income and other family changes as specified in
sections 256P.06 and 256P.07, and the county's plan under section 119B.08, subdivision 3.

(c) Persons who are admitted to the at-home infant child care program retain their
position in any basic sliding fee program. Persons leaving the at-home infant child care
program reenter the basic sliding fee program at the position they would have occupied.

(d) Assistance under this section does not establish an employer-employee
relationship between any member of the assisted family and the county or state.

Sec. 4.

Minnesota Statutes 2014, section 119B.09, subdivision 4, is amended to read:

Subd. 4.

Eligibility; annual income; calculation.

Annual income of the applicant
family is the current monthly income of the family multiplied by 12 or the income for
the 12-month period immediately preceding the date of application, or income calculated
by the method which provides the most accurate assessment of income available to the
family. Self-employment income must be calculated based on gross receipts less operating
expenses. Income must be recalculated when the family's income changes, but no less
often than every six months. For a family where at least one parent is under the age of
21, does not have a high school or general equivalency diploma, and is a student in a
school district or another similar program that provides or arranges for child care, as well
as parenting, social services, career and employment supports, and academic support to
achieve high school graduation, income must be recalculated when the family's income
changes, but otherwise shall be deferred beyond six months, but not to exceed 12 months,
to the end of the student's school year. Included lump sums counted as income under
section 256P.06, subdivision 3, are to be annualized over 12 months. Income must be
verified with documentary evidence. If the applicant does not have sufficient evidence of
income, verification must be obtained from the source of the income.

Sec. 5.

Minnesota Statutes 2014, section 256D.01, subdivision 1a, is amended to read:

Subd. 1a.

Standards.

(a) A principal objective in providing general assistance is
to provide for single adults, childless couples, or children as defined in section 256D.02,
subdivision 6, ineligible for federal programs who are unable to provide for themselves.
The minimum standard of assistance determines the total amount of the general assistance
grant without separate standards for shelter, utilities, or other needs.

(b) The commissioner shall set the standard of assistance for an assistance unit
consisting of an adult recipient who is childless and unmarried or living apart from
children and spouse and who does not live with a parent or parents or a legal custodian.
When the other standards specified in this subdivision increase, this standard must also be
increased by the same percentage.

(c) For an assistance unit consisting of a single adult who lives with a parent or
parents, the general assistance standard of assistance is the amount that the aid to families
with dependent children standard of assistance, in effect on July 16, 1996, would increase
if the recipient were added as an additional minor child to an assistance unit consisting
of the recipient's parent and all of that parent's family members, except that the standard
may not exceed the standard for a general assistance recipient living alone. Benefits
received by a responsible relative of the assistance unit under the Supplemental Security
Income program, a workers' compensation program, the Minnesota supplemental aid
program, or any other program based on the responsible relative's disability, and any
benefits received by a responsible relative of the assistance unit under the Social Security
retirement program, may not be counted in the determination of eligibility or benefit
level for the assistance unit. Except as provided below, the assistance unit is ineligible
for general assistance if the available resources or the countable income of the assistance
unit and the parent or parents with whom the assistance unit lives are such that a family
consisting of the assistance unit's parent or parents, the parent or parents' other family
members and the assistance unit as the only or additional minor child would be financially
ineligible for general assistance. For the purposes of calculating the countable income
of the assistance unit's parent or parents, the calculation methods, income deductions,
exclusions, and disregards used when calculating the countable income for a single adult
or childless couple must be used follow the provisions under section 256P.06.

(d) For an assistance unit consisting of a childless couple, the standards of assistance
are the same as the first and second adult standards of the aid to families with dependent
children program in effect on July 16, 1996. If one member of the couple is not included
in the general assistance grant, the standard of assistance for the other is the second adult
standard of the aid to families with dependent children program as of July 16, 1996.

Sec. 6.

Minnesota Statutes 2014, section 256D.02, is amended by adding a subdivision
to read:

Subd. 1a.

Assistance unit.

"Assistance unit" means an individual or an eligible
married couple who live together who are applying for or receiving benefits under this
chapter.

Sec. 7.

Minnesota Statutes 2014, section 256D.02, is amended by adding a subdivision
to read:

Subd. 1b.

Cash assistance benefit.

"Cash assistance benefit" means any payment
received as a disability benefit, including veteran's or workers' compensation; old age,
survivors, and disability insurance; railroad retirement benefits; unemployment benefits;
and benefits under any federally aided categorical assistance program, Supplemental
Security Income, or other assistance program.

Sec. 8.

Minnesota Statutes 2014, section 256D.02, subdivision 8, is amended to read:

Subd. 8.

Income.

"Income" means any form of income, including remuneration
for services performed as an employee and earned income from rental income and
self-employment earnings as described under section 256P.05 earned income as defined
under section 256P.01, subdivision 3, and unearned income as defined under section
256P.01, subdivision 8.

Income includes any payments received as an annuity, retirement, or disability
benefit, including veteran's or workers' compensation; old age, survivors, and disability
insurance; railroad retirement benefits; unemployment benefits; and benefits under any
federally aided categorical assistance program, supplementary security income, or other
assistance program; rents, dividends, interest and royalties; and support and maintenance
payments. Such payments may not be considered as available to meet the needs of any
person other than the person for whose benefit they are received, unless that person is
a family member or a spouse and the income is not excluded under section 256D.01,
subdivision 1a. Goods and services provided in lieu of cash payment shall be excluded
from the definition of income, except that payments made for room, board, tuition or
fees by a parent, on behalf of a child enrolled as a full-time student in a postsecondary
institution, and payments made on behalf of an applicant or participant which the applicant
or participant could legally demand to receive personally in cash, must be included as
income. Benefits of an applicant or participant, such as those administered by the Social
Security Administration, that are paid to a representative payee, and are spent on behalf of
the applicant or participant, are considered available income of the applicant or participant.

Sec. 9.

Minnesota Statutes 2014, section 256D.06, subdivision 1, is amended to read:

Subdivision 1.

Eligibility; amount of assistance.

General assistance shall be
granted in an amount that when added to the nonexempt countable income as determined
to be actually available to the assistance unit under section 256P.06, the total amount
equals the applicable standard of assistance for general assistance. In determining
eligibility for and the amount of assistance for an individual or married couple, the agency
shall apply the earned income disregard as determined in section 256P.03.

Sec. 10.

Minnesota Statutes 2014, section 256D.405, subdivision 3, is amended to read:

Subd. 3.

Reports.

Participants must report changes in circumstances according to
section 256P.07 that affect eligibility or assistance payment amounts within ten days of the
change. Participants who do not receive SSI because of excess income must complete a
monthly report form if they have earned income, if they have income deemed to them
from a financially responsible relative with whom the participant resides, or if they have
income deemed to them by a sponsor. If the report form is not received before the end of
the month in which it is due, the county agency must terminate assistance. The termination
shall be effective on the first day of the month following the month in which the report
was due. If a complete report is received within the month the assistance was terminated,
the assistance unit is considered to have continued its application for assistance, effective
the first day of the month the assistance was terminated.

Sec. 11.

Minnesota Statutes 2014, section 256I.03, is amended by adding a subdivision
to read:

Subd. 1b.

Assistance unit.

"Assistance unit" means an individual who is applying
for or receiving benefits under this chapter.

Sec. 12.

Minnesota Statutes 2014, section 256I.03, subdivision 7, is amended to read:

Subd. 7.

Countable income.

"Countable income" means all income received by an
applicant or recipient as described under section 256P.06, less any applicable exclusions
or disregards. For a recipient of any cash benefit from the SSI program, countable income
means the SSI benefit limit in effect at the time the person is in a GRH, less the medical
assistance personal needs allowance. If the SSI limit has been reduced for a person due to
events occurring prior to the persons entering the GRH setting, countable income means
actual income less any applicable exclusions and disregards.

Sec. 13.

Minnesota Statutes 2014, section 256I.04, subdivision 1, is amended to read:

Subdivision 1.

Individual eligibility requirements.

An individual is eligible for
and entitled to a group residential housing payment to be made on the individual's behalf
if the agency has approved the individual's residence in a group residential housing setting
and the individual meets the requirements in paragraph (a) or (b).

(a) The individual is aged, blind, or is over 18 years of age and disabled as
determined under the criteria used by the title II program of the Social Security Act, and
meets the resource restrictions and standards of section 256P.02, and the individual's
countable income after deducting the (1) exclusions and disregards of the SSI program,
(2) the medical assistance personal needs allowance under section 256B.35, and (3) an
amount equal to the income actually made available to a community spouse by an elderly
waiver participant under the provisions of sections 256B.0575, paragraph (a), clause
(4), and 256B.058, subdivision 2, is less than the monthly rate specified in the agency's
agreement with the provider of group residential housing in which the individual resides.

(b) The individual meets a category of eligibility under section 256D.05, subdivision
1, paragraph (a), and the individual's resources are less than the standards specified by
section 256P.02, and the individual's countable income as determined under sections
256D.01 to 256D.21 section 256P.06, less the medical assistance personal needs allowance
under section 256B.35 is less than the monthly rate specified in the agency's agreement
with the provider of group residential housing in which the individual resides.

Sec. 14.

Minnesota Statutes 2014, section 256I.06, subdivision 6, is amended to read:

Subd. 6.

Reports.

Recipients must report changes in circumstances according
to section 256P.07 that affect eligibility or group residential housing payment amounts
within ten days of the change. Recipients with countable earned income must complete
a monthly household report form. If the report form is not received before the end of
the month in which it is due, the county agency must terminate eligibility for group
residential housing payments. The termination shall be effective on the first day of the
month following the month in which the report was due. If a complete report is received
within the month eligibility was terminated, the individual is considered to have continued
an application for group residential housing payment effective the first day of the month
the eligibility was terminated.

Sec. 15.

Minnesota Statutes 2014, section 256J.08, subdivision 26, is amended to read:

Subd. 26.

Earned income.

"Earned income" means cash or in-kind income earned
through the receipt of wages, salary, commissions, profit from employment activities, net
profit from self-employment activities, payments made by an employer for regularly
accrued vacation or sick leave, and any other profit from activity earned through effort or
labor. The income must be in return for, or as a result of, legal activity has the meaning
given in section 256P.01, subdivision 3.

Sec. 16.

Minnesota Statutes 2014, section 256J.08, subdivision 86, is amended to read:

Subd. 86.

Unearned income.

"Unearned income" means income received by
a person that does not meet the definition of earned income. Unearned income includes
income from a contract for deed, interest, dividends, unemployment benefits, disability
insurance payments, veterans benefits, pension payments, return on capital investment,
insurance payments or settlements, severance payments, child support and maintenance
payments, and payments for illness or disability whether the premium payments are
made in whole or in part by an employer or participant has the meaning given in section
256P.01, subdivision 8.

Sec. 17.

Minnesota Statutes 2014, section 256J.30, subdivision 1, is amended to read:

Subdivision 1.

Applicant reporting requirements.

An applicant must provide
information on an application form and supplemental forms about the applicant's
circumstances which affect MFIP eligibility or the assistance payment. An applicant must
report changes identified in subdivision 9 while the application is pending. When an
applicant does not accurately report information on an application, both an overpayment
and a referral for a fraud investigation may result. When an applicant does not provide
information or documentation, the receipt of the assistance payment may be delayed or the
application may be denied depending on the type of information required and its effect on
eligibility according to section 256P.07.

Sec. 18.

Minnesota Statutes 2014, section 256J.30, subdivision 9, is amended to read:

Subd. 9.

Changes that must be reported.

A caregiver must report the changes or
anticipated changes specified in clauses (1) to (15) within ten days of the date they occur,
at the time of the periodic recertification of eligibility under section 256P.04, subdivisions
8 and 9, or within eight calendar days of a reporting period as in subdivision 5, whichever
occurs first. A caregiver must report other changes at the time of the periodic recertification
of eligibility under section 256P.04, subdivisions 8 and 9, or at the end of a reporting period
under subdivision 5, as applicable. A caregiver must make these reports in writing to the
agency. When an agency could have reduced or terminated assistance for one or more
payment months if a delay in reporting a change specified under clauses (1) to (14) had
not occurred, the agency must determine whether a timely notice under section 256J.31,
subdivision 4, could have been issued on the day that the change occurred. When a timely
notice could have been issued, each month's overpayment subsequent to that notice must be
considered a client error overpayment under section 256J.38. Calculation of overpayments
for late reporting under clause (15) is specified in section 256J.09, subdivision 9. Changes
in circumstances which must be reported within ten days must also be reported on the
MFIP household report form for the reporting period in which those changes occurred.
Within ten days, a caregiver must report: changes as specified under section 256P.07.

(1) a change in initial employment;

(2) a change in initial receipt of unearned income;

(3) a recurring change in unearned income;

(4) a nonrecurring change of unearned income that exceeds $30;

(5) the receipt of a lump sum;

(6) an increase in assets that may cause the assistance unit to exceed asset limits;

(7) a change in the physical or mental status of an incapacitated member of the
assistance unit if the physical or mental status is the basis for reducing the hourly
participation requirements under section 256J.55, subdivision 1, or the type of activities
included in an employment plan under section 256J.521, subdivision 2;

(8) a change in employment status;

(9) the marriage or divorce of an assistance unit member;

(10) the death of a parent, minor child, or financially responsible person;

(11) a change in address or living quarters of the assistance unit;

(12) the sale, purchase, or other transfer of property;

(13) a change in school attendance of a caregiver under age 20 or an employed child;

(14) filing a lawsuit, a workers' compensation claim, or a monetary claim against a
third party; and

(15) a change in household composition, including births, returns to and departures
from the home of assistance unit members and financially responsible persons, or a change
in the custody of a minor child.

Sec. 19.

Minnesota Statutes 2014, section 256J.35, is amended to read:

256J.35 AMOUNT OF ASSISTANCE PAYMENT.

Except as provided in paragraphs (a) to (d), the amount of an assistance payment is
equal to the difference between the MFIP standard of need or the Minnesota family wage
level in section 256J.24 and countable income.

(a) Beginning July 1, 2015, MFIP assistance units are eligible for an MFIP housing
assistance grant of $110 per month, unless:

(1) the housing assistance unit is currently receiving public and assisted rental
subsidies provided through the Department of Housing and Urban Development (HUD)
and is subject to section 256J.37, subdivision 3a; or

(2) the assistance unit is a child-only case under section 256J.88.

(b) When MFIP eligibility exists for the month of application, the amount of the
assistance payment for the month of application must be prorated from the date of
application or the date all other eligibility factors are met for that applicant, whichever is
later. This provision applies when an applicant loses at least one day of MFIP eligibility.

(c) MFIP overpayments to an assistance unit must be recouped according to section
256J.38, subdivision 4 256P.08, subdivision 5.

(d) An initial assistance payment must not be made to an applicant who is not
eligible on the date payment is made.

Sec. 20.

Minnesota Statutes 2014, section 256J.40, is amended to read:

256J.40 FAIR HEARINGS.

Caregivers receiving a notice of intent to sanction or a notice of adverse action that
includes a sanction, reduction in benefits, suspension of benefits, denial of benefits, or
termination of benefits may request a fair hearing. A request for a fair hearing must be
submitted in writing to the county agency or to the commissioner and must be mailed
within 30 days after a participant or former participant receives written notice of the
agency's action or within 90 days when a participant or former participant shows good
cause for not submitting the request within 30 days. A former participant who receives a
notice of adverse action due to an overpayment may appeal the adverse action according
to the requirements in this section. Issues that may be appealed are:

(1) the amount of the assistance payment;

(2) a suspension, reduction, denial, or termination of assistance;

(3) the basis for an overpayment, the calculated amount of an overpayment, and
the level of recoupment;

(4) the eligibility for an assistance payment; and

(5) the use of protective or vendor payments under section 256J.39, subdivision 2,
clauses (1) to (3).

Except for benefits issued under section 256J.95, a county agency must not reduce,
suspend, or terminate payment when an aggrieved participant requests a fair hearing
prior to the effective date of the adverse action or within ten days of the mailing of the
notice of adverse action, whichever is later, unless the participant requests in writing not
to receive continued assistance pending a hearing decision. An appeal request cannot
extend benefits for the diversionary work program under section 256J.95 beyond the
four-month time limit. Assistance issued pending a fair hearing is subject to recovery
under section 256J.38 256P.08 when as a result of the fair hearing decision the participant
is determined ineligible for assistance or the amount of the assistance received. A county
agency may increase or reduce an assistance payment while an appeal is pending when the
circumstances of the participant change and are not related to the issue on appeal. The
commissioner's order is binding on a county agency. No additional notice is required to
enforce the commissioner's order.

A county agency shall reimburse appellants for reasonable and necessary expenses
of attendance at the hearing, such as child care and transportation costs and for the
transportation expenses of the appellant's witnesses and representatives to and from the
hearing. Reasonable and necessary expenses do not include legal fees. Fair hearings
must be conducted at a reasonable time and date by an impartial human services judge
employed by the department. The hearing may be conducted by telephone or at a site that
is readily accessible to persons with disabilities.

The appellant may introduce new or additional evidence relevant to the issues on
appeal. Recommendations of the human services judge and decisions of the commissioner
must be based on evidence in the hearing record and are not limited to a review of the
county agency action.

Sec. 21.

Minnesota Statutes 2014, section 256J.95, subdivision 19, is amended to read:

Subd. 19.

DWP overpayments and underpayments.

DWP benefits are subject
to overpayments and underpayments. Anytime an overpayment or an underpayment is
determined for DWP, the correction shall be calculated using prospective budgeting.
Corrections shall be determined based on the policy in section 256J.34, subdivision 1,
paragraphs (a), (b), and (c). ATM errors must be recovered as specified in section 256J.38,
subdivision 5 256P.08, subdivision 6. Cross program recoupment of overpayments cannot
be assigned to or from DWP.

Sec. 22.

Minnesota Statutes 2014, section 256P.001, is amended to read:

256P.001 APPLICABILITY.

General assistance and Minnesota supplemental aid under chapter 256D, child care
assistance programs under chapter 119B, and programs governed by chapter 256I or 256J
are subject to the requirements of this chapter, unless otherwise specified or exempted.

Sec. 23.

Minnesota Statutes 2014, section 256P.01, is amended by adding a subdivision
to read:

Subd. 2a.

Assistance unit.

"Assistance unit" is defined by program area under
sections 119B.011, subdivision 13; 256D.02, subdivision 1a; 256D.35, subdivision 3a;
256I.03, subdivision 1b; and 256J.08, subdivision 7.

Sec. 24.

Minnesota Statutes 2014, section 256P.01, subdivision 3, is amended to read:

Subd. 3.

Earned income.

"Earned income" means cash or in-kind income earned
through the receipt of wages, salary, commissions, bonuses, tips, gratuities, profit from
employment activities, net profit from self-employment activities, payments made by
an employer for regularly accrued vacation or sick leave, and any severance pay based
on accrued leave time, payments from training programs at a rate at or greater than the
state's minimum wage, royalties, honoraria, or other profit from activity earned through
effort that results from the client's work, service, effort, or labor. The income must be in
return for, or as a result of, legal activity.

Sec. 25.

Minnesota Statutes 2014, section 256P.01, is amended by adding a subdivision
to read:

Subd. 8.

Unearned income.

"Unearned income" has the meaning given in section
256P.06, subdivision 3, clause (2).

Sec. 26.

Minnesota Statutes 2014, section 256P.02, is amended by adding a subdivision
to read:

Subd. 1a.

Exemption.

Participants who qualify for child care assistance programs
under chapter 119B are exempt from this section.

Sec. 27.

Minnesota Statutes 2014, section 256P.03, subdivision 1, is amended to read:

Subdivision 1.

Exempted programs.

Participants who qualify for child care
assistance programs under chapter 119B, Minnesota supplemental aid under chapter
256D, and for group residential housing under chapter 256I on the basis of eligibility for
Supplemental Security Income are exempt from this section.

Sec. 28.

Minnesota Statutes 2014, section 256P.04, subdivision 1, is amended to read:

Subdivision 1.

Exemption.

Participants who receive Minnesota supplemental aid
and who maintain Supplemental Security Income eligibility under chapters 256D and 256I
are exempt from the reporting requirements of this section, except that the policies and
procedures for transfers of assets are those used by the medical assistance program under
section 256B.0595. Participants who receive child care assistance under chapter 119B are
exempt from the requirements of this section.

Sec. 29.

Minnesota Statutes 2014, section 256P.04, subdivision 4, is amended to read:

Subd. 4.

Factors to be verified.

(a) The agency shall verify the following at
application:

(1) identity of adults;

(2) age, if necessary to determine eligibility;

(3) immigration status;

(4) income;

(5) spousal support and child support payments made to persons outside the
household;

(6) vehicles;

(7) checking and savings accounts;

(8) inconsistent information, if related to eligibility;

(9) residence; and

(10) Social Security number.; and

(11) use of nonrecurring income under section 256P.06, subdivision 3, clause (2),
item (ix), for the intended purpose in which it was given and received.

(b) Applicants who are qualified noncitizens and victims of domestic violence as
defined under section 256J.08, subdivision 73, clause (7), are not required to verify the
information in paragraph (a), clause (10). When a Social Security number is not provided
to the agency for verification, this requirement is satisfied when each member of the
assistance unit cooperates with the procedures for verification of Social Security numbers,
issuance of duplicate cards, and issuance of new numbers which have been established
jointly between the Social Security Administration and the commissioner.

Sec. 30.

Minnesota Statutes 2014, section 256P.05, subdivision 1, is amended to read:

Subdivision 1.

Exempted programs.

Participants who qualify for child care
assistance programs under chapter 119B, Minnesota supplemental aid under chapter
256D, and for group residential housing under chapter 256I on the basis of eligibility for
Supplemental Security Income are exempt from this section.

Sec. 31.

[256P.06] INCOME CALCULATIONS.

Subdivision 1.

Reporting of income.

To determine eligibility, the county agency
must evaluate income received by members of the assistance unit, or by other persons
whose income is considered available to the assistance unit, and only count income that
is available to the assistance unit. Income is available if the individual has legal access
to the income.

Subd. 2.

Exempted individuals.

The following members of an assistance unit
under chapters 119B and 256J are exempt from having their earned income count towards
the income of an assistance unit:

(1) children under six years old;

(2) caregivers under 20 years of age enrolled at least half-time in school; and

(3) minors enrolled in school full time.

Subd. 3.

Income inclusions.

The following must be included in determining the
income of an assistance unit:

(1) earned income; and

(2) unearned income, which includes:

(i) interest and dividends from investments and savings;

(ii) capital gains as defined by the Internal Revenue Service from any sale of real
property;

(iii) proceeds from rent and contract for deed payments in excess of the principal
and interest portion owed on property;

(iv) income from trusts, excluding special needs and supplemental needs trusts;

(v) interest income from loans made by the participant or household;

(vi) cash prizes and winnings;

(vii) unemployment insurance income;

(viii) retirement, survivors, and disability insurance payments;

(ix) nonrecurring income over $60 per quarter unless earmarked and used for the
purpose for which it is intended. Income and use of this income is subject to verification
requirements under section 256P.04;

(x) retirement benefits;

(xi) cash assistance benefits, as defined by each program in chapters 119B, 256D,
256I, and 256J;

(xii) tribal per capita payments unless excluded by federal and state law;

(xiii) income and payments from service and rehabilitation programs that meet
or exceed the state's minimum wage rate;

(xiv) income from members of the United States armed forces unless excluded from
income taxes according to federal or state law; and

(xv) child and spousal support.

Sec. 32.

[256P.07] REPORTING OF INCOME AND CHANGES.

Subdivision 1.

Exempted programs.

Participants who qualify for Minnesota
supplemental aid under chapter 256D and for group residential housing under chapter 256I
on the basis of eligibility for Supplemental Security Income are exempt from this section.

Subd. 2.

Reporting requirements.

An applicant or participant must provide
information on an application and any subsequent reporting forms about the assistance
unit's circumstances that affect eligibility or benefits. An applicant or assistance unit must
report changes identified in subdivision 3. When information is not accurately reported,
both an overpayment and a referral for a fraud investigation may result. When information
or documentation is not provided, the receipt of any benefit may be delayed or denied,
depending on the type of information required and its effect on eligibility.

Subd. 3.

Changes that must be reported.

An assistance unit must report the
changes or anticipated changes specified in clauses (1) to (12) within ten days of the date
they occur, at the time of recertification of eligibility under section 256P.04, subdivisions
8 and 9, or within eight calendar days of a reporting period, whichever occurs first. An
assistance unit must report other changes at the time of recertification of eligibility under
section 256P.04, subdivisions 8 and 9, or at the end of a reporting period, as applicable.
When an agency could have reduced or terminated assistance for one or more payment
months if a delay in reporting a change specified under clauses (1) to (12) had not
occurred, the agency must determine whether a timely notice could have been issued
on the day that the change occurred. When a timely notice could have been issued,
each month's overpayment subsequent to that notice must be considered a client error
overpayment under section 119B.11, subdivision 2a; 256D.09, subdivision 6; 256D.49,
subdivision 3; 256J.38; or 256P.08. Changes in circumstances that must be reported within
ten days must also be reported for the reporting period in which those changes occurred.
Within ten days, an assistance unit must report a:

(1) change in earned income of $100 per month or greater;

(2) change in unearned income of $50 per month or greater;

(3) change in employment status and hours;

(4) change in address or residence;

(5) change in household composition with the exception of programs under chapter
256I;

(6) receipt of a lump-sum payment;

(7) increase in assets if over $9,000 with the exception of programs under chapter
119B;

(8) change in citizenship or immigration status;

(9) change in family status with the exception of programs under chapter 256I;

(10) change in disability status of a unit member, with the exception of programs
under chapter 119B;

(11) new rent subsidy or a change in rent subsidy; and

(12) sale, purchase, or transfer of real property.

Subd. 4.

MFIP-specific reporting.

In addition to subdivision 3, an assistance unit
under chapter 256J, within ten days of the change, must report:

(1) a pregnancy not resulting in birth when there are no other minor children; and

(2) a change in school attendance of a parent under 20 years of age or of an
employed child.

Subd. 5.

DWP-specific reporting.

In addition to subdivisions 3 and 4, an assistance
unit participating in the diversionary work program under section 256J.95 must report
on an application:

(1) shelter expenses; and

(2) utility expenses.

Subd. 6.

Child care assistance programs-specific reporting.

In addition to
subdivision 3, an assistance unit under chapter 119B, within ten days of the change, must
report a:

(1) change in a parentally responsible individual's visitation schedule or custody
arrangement for any child receiving child care assistance program benefits; and

(2) change in authorized activity status.

Subd. 7.

MSA-specific reporting.

In addition to subdivision 3, an assistance
unit participating in the Minnesota supplemental aid program under section 256D.44,
subdivision 5, paragraph (f), within ten days of the change, must report shelter expenses.

Sec. 33.

[256P.08] CORRECTION OF OVERPAYMENTS AND
UNDERPAYMENTS.

Subdivision 1.

Exempted programs.

Participants who qualify for child care
assistance programs under chapter 119B and group residential housing under chapter
256I are exempt from this section.

Subd. 2.

Scope of overpayment.

(a) When a participant or former participant
receives an overpayment due to agency, client, or ATM error, or due to assistance received
while an appeal is pending and the participant or former participant is determined
ineligible for assistance or for less assistance than was received, except as provided for
interim assistance in section 256D.06, subdivision 5, the county agency must recoup or
recover the overpayment using the following methods:

(1) reconstruct each affected budget month and corresponding payment month;

(2) use the policies and procedures that were in effect for the payment month; and

(3) do not allow employment disregards in the calculation of the overpayment when
the unit has not reported within two calendar months following the end of the month in
which the income was received.

(b) Establishment of an overpayment is limited to 12 months prior to the month of
discovery due to agency error. Establishment of an overpayment is limited to six years
prior to the month of discovery due to client error or an intentional program violation
determined under section 256.046.

Subd. 3.

Notice of overpayment.

When a county agency discovers that a participant
or former participant has received an overpayment for one or more months, the county
agency must notify the participant or former participant of the overpayment in writing.
A notice of overpayment must specify the reason for the overpayment, the authority for
citing the overpayment, the time period in which the overpayment occurred, the amount of
the overpayment, and the participant's or former participant's right to appeal. No limit
applies to the period in which the county agency is required to recoup or recover an
overpayment according to subdivisions 4 and 5.

Subd. 4.

Recovering MFIP overpayments.

A county agency must initiate efforts to
recover overpayments paid to a former participant or caregiver. Caregivers, both parental
and nonparental, and minor caregivers of an assistance unit at the time an overpayment
occurs, whether receiving assistance or not, are jointly and individually liable for repayment
of the overpayment. The county agency must request repayment from the former
participants and caregivers. When an agreement for repayment is not completed within six
months of the date of discovery or when there is a default on an agreement for repayment
after six months, the county agency must initiate recovery consistent with chapter 270A or
section 541.05. When a person has been convicted of fraud under section 256.98, recovery
must be sought regardless of the amount of overpayment. When an overpayment is less
than $35, and is not the result of a fraud conviction under section 256.98, the county agency
must not seek recovery under this subdivision. The county agency must retain information
about all overpayments regardless of the amount. When an adult, adult caregiver, or minor
caregiver reapplies for assistance, the overpayment must be recouped under subdivision 5.

Subd. 4a.

Recovering general assistance and Minnesota supplemental aid
overpayments.

(a) If an amount of assistance is paid to an assistance unit in excess of the
payment due, the excess amount must be recovered by the agency. The agency shall give
written notice to the recipient of its intention to recover the payment.

(b) If the person is no longer receiving assistance, the agency may request voluntary
repayment or pursue civil recovery.

(c) If the person is receiving assistance, except as provided for interim assistance in
section 256D.06, subdivision 5, when an overpayment occurs, the agency shall recover the
overpayment by withholding an amount equal to:

(1) three percent of the assistance unit's standard of need for all Minnesota
supplemental aid assistance units, and nonfraud cases for general assistance; and

(2) ten percent where fraud has occurred in general assistance cases; or

(3) the amount of the monthly general assistance or Minnesota supplemental aid
payment, whichever is less.

(d) When there is both an overpayment and underpayment, the county agency shall
offset one against the other in correcting the payment.

(e) Overpayments may also be voluntarily repaid in part or in full by the individual,
in addition to the assistance reductions provided in this subdivision, to include further
voluntary reductions in the grant level agreed to in writing by the individual, until the
total amount of the overpayment is repaid.

(f) The county agency shall make reasonable efforts to recover overpayments from
a person who no longer receives assistance. The agency is not required to attempt to
recover overpayments of less than $35 if the person is no longer on assistance and if the
individual does not receive assistance again within three years, unless the individual has
been convicted of violating section 256.98.

(g) Establishment of an overpayment is limited to 12 months prior to the month of
discovery due to agency error, and six years prior to the month of discovery due to client
error or an intentional program violation determined under section 256.046.

(h) Residents of licensed residential facilities shall not have overpayments recovered
from their personal needs allowance.

Subd. 5.

Recouping overpayments from MFIP participants.

A participant may
voluntarily repay, in part or in full, an overpayment even if assistance is reduced under this
subdivision, until the total amount of the overpayment is repaid. When an overpayment
occurs due to fraud, the county agency must recover from the overpaid assistance unit,
including child-only cases, ten percent of the applicable standard or the amount of the
monthly assistance payment, whichever is less. When a nonfraud overpayment occurs, the
county agency must recover from the overpaid assistance unit, including child-only cases,
three percent of the standard of need or the amount of the monthly assistance payment,
whichever is less.

Subd. 6.

Recovering automatic teller machine errors.

For recipients receiving
benefits by electronic benefit transfer, if the overpayment is a result of an ATM dispensing
funds in error to the recipient, the agency may recover the ATM error by immediately
withdrawing funds from the recipient's electronic benefit transfer account, up to the
amount of the error.

Subd. 7.

Scope of underpayments.

A county agency must issue a corrective
payment for underpayments made to a participant or to a person who would be a
participant if an agency or client error causing the underpayment had not occurred.
Corrective payments are limited to 12 months prior to the month of discovery. The county
agency must issue the corrective payment according to subdivision 9.

Subd. 8.

Identifying the underpayment.

An underpayment may be identified by
a county agency, participant, former participant, or person who would be a participant
except for agency or client error.

Subd. 9.

Issuing corrective payments.

A county agency must correct an
underpayment within seven calendar days after the underpayment has been identified,
by adding the corrective payment amount to the monthly assistance payment of the
participant, issuing a separate payment to a participant or former participant, or reducing
an existing overpayment balance. When an underpayment occurs in a payment month
and is not identified until the next payment month or later, the county agency must first
subtract the underpayment from any overpayment balance before issuing the corrective
payment. The county agency must not apply an underpayment in a current payment month
against an overpayment balance. When an underpayment in the current payment month
is identified, the corrective payment must be issued within seven calendar days after the
underpayment is identified. Corrective payments must be excluded when determining the
applicant's or recipient's income and resources for the month of payment. The county
agency must correct underpayments using the following methods:

(1) reconstruct each affected budget month and corresponding payment month; and

(2) use the policies and procedures that were in effect for the payment month.

Subd. 10.

Appeals.

A participant may appeal an underpayment, an overpayment,
and a reduction in an assistance payment made to recoup the overpayment under
subdivisions 4a and 5. The participant's appeal of each issue must be timely under section
256.045. When an appeal based on the notice issued under subdivision 3 is not timely, the
fact or the amount of that overpayment must not be considered as a part of a later appeal,
including an appeal of a reduction in an assistance payment to recoup that overpayment.

Sec. 34. REPEALER.

(a) Minnesota Statutes 2014, sections 256D.0513; 256D.06, subdivision 8; 256D.09,
subdivision 6; 256D.49; and 256J.38, are repealed.

(b) Minnesota Rules, part 3400.0170, subparts 5, 6, 12, and 13, are repealed.

Sec. 35. EFFECTIVE DATE.

This article is effective August 1, 2016.

ARTICLE 6

CONTINUING CARE

Section 1.

Minnesota Statutes 2014, section 13.461, is amended by adding a
subdivision to read:

Subd. 32.

ABLE accounts and designated beneficiaries.

Data on ABLE accounts
and designated beneficiaries of ABLE accounts are classified under section 256Q.05,
subdivision 7.

Sec. 2.

Minnesota Statutes 2014, section 144.057, subdivision 1, is amended to read:

Subdivision 1.

Background studies required.

The commissioner of health shall
contract with the commissioner of human services to conduct background studies of:

(1) individuals providing services which have direct contact, as defined under
section 245C.02, subdivision 11, with patients and residents in hospitals, boarding care
homes, outpatient surgical centers licensed under sections 144.50 to 144.58; nursing
homes and home care agencies licensed under chapter 144A; residential care homes
licensed under chapter 144B, and board and lodging establishments that are registered to
provide supportive or health supervision services under section 157.17;

(2) individuals specified in section 245C.03, subdivision 1, who perform direct
contact services in a nursing home or a home care agency licensed under chapter 144A
or a boarding care home licensed under sections 144.50 to 144.58, and. If the individual
under study resides outside Minnesota, the study must be at least as comprehensive as
that of a Minnesota resident and include a search of information from the criminal justice
data communications network in the state where the subject of the study resides include a
check for substantiated findings of maltreatment of adults and children in the individual's
state of residence when the information is made available by that state, and must include a
check of the National Crime Information Center database;

(3) beginning July 1, 1999, all other employees in nursing homes licensed under
chapter 144A, and boarding care homes licensed under sections 144.50 to 144.58. A
disqualification of an individual in this section shall disqualify the individual from
positions allowing direct contact or access to patients or residents receiving services.
"Access" means physical access to a client or the client's personal property without
continuous, direct supervision as defined in section 245C.02, subdivision 8, when the
employee's employment responsibilities do not include providing direct contact services;

(4) individuals employed by a supplemental nursing services agency, as defined
under section 144A.70, who are providing services in health care facilities; and

(5) controlling persons of a supplemental nursing services agency, as defined under
section 144A.70.

If a facility or program is licensed by the Department of Human Services and
subject to the background study provisions of chapter 245C and is also licensed by the
Department of Health, the Department of Human Services is solely responsible for the
background studies of individuals in the jointly licensed programs.

Sec. 3.

Minnesota Statutes 2014, section 245C.08, subdivision 1, is amended to read:

Subdivision 1.

Background studies conducted by Department of Human
Services.

(a) For a background study conducted by the Department of Human Services,
the commissioner shall review:

(1) information related to names of substantiated perpetrators of maltreatment of
vulnerable adults that has been received by the commissioner as required under section
626.557, subdivision 9c, paragraph (j);

(2) the commissioner's records relating to the maltreatment of minors in licensed
programs, and from findings of maltreatment of minors as indicated through the social
service information system;

(3) information from juvenile courts as required in subdivision 4 for individuals
listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;

(4) information from the Bureau of Criminal Apprehension, including information
regarding a background study subject's registration in Minnesota as a predatory offender
under section 243.166;

(5) except as provided in clause (6), information from the national crime information
system when the commissioner has reasonable cause as defined under section 245C.05,
subdivision 5, or as required under section 144.057, subdivision 1, clause (2); and

(6) for a background study related to a child foster care application for licensure, a
transfer of permanent legal and physical custody of a child under sections 260C.503 to
260C.515, or adoptions, the commissioner shall also review:

(i) information from the child abuse and neglect registry for any state in which the
background study subject has resided for the past five years; and

(ii) information from national crime information databases, when the background
study subject is 18 years of age or older.

(b) Notwithstanding expungement by a court, the commissioner may consider
information obtained under paragraph (a), clauses (3) and (4), unless the commissioner
received notice of the petition for expungement and the court order for expungement is
directed specifically to the commissioner.

(c) The commissioner shall also review criminal case information received according
to section 245C.04, subdivision 4a, from the Minnesota court information system that
relates to individuals who have already been studied under this chapter and who remain
affiliated with the agency that initiated the background study.

(d) When the commissioner has reasonable cause to believe that the identity of
a background study subject is uncertain, the commissioner may require the subject to
provide a set of classifiable fingerprints for purposes of completing a fingerprint-based
record check with the Bureau of Criminal Apprehension. Fingerprints collected under this
paragraph shall not be saved by the commissioner after they have been used to verify the
identity of the background study subject against the particular criminal record in question.

(e) The commissioner may inform the entity that initiated a background study under
NETStudy 2.0 of the status of processing of the subject's fingerprints.

Sec. 4.

Minnesota Statutes 2014, section 245C.12, is amended to read:

245C.12 BACKGROUND STUDY; TRIBAL ORGANIZATIONS.

(a) For the purposes of background studies completed by tribal organizations
performing licensing activities otherwise required of the commissioner under this chapter,
after obtaining consent from the background study subject, tribal licensing agencies shall
have access to criminal history data in the same manner as county licensing agencies and
private licensing agencies under this chapter.

(b) Tribal organizations may contract with the commissioner to obtain background
study data on individuals under tribal jurisdiction related to adoptions according to
section 245C.34. Tribal organizations may also contract with the commissioner to obtain
background study data on individuals under tribal jurisdiction related to child foster care
according to section 245C.34.

(c) For the purposes of background studies completed to comply with a tribal
organization's licensing requirements for individuals affiliated with a tribally licensed
nursing facility, the commissioner shall obtain criminal history data from the National
Criminal Records Repository in accordance with section 245C.32.

Sec. 5.

Minnesota Statutes 2014, section 256.478, is amended to read:

256.478 HOME AND COMMUNITY-BASED SERVICES TRANSITIONS
GRANTS.

(a) The commissioner shall make available home and community-based services
transition grants to serve individuals who do not meet eligibility criteria for the medical
assistance program under section 256B.056 or 256B.057, but who otherwise meet the
criteria under section 256B.092, subdivision 13, or 256B.49, subdivision 24.

(b) For the purposes of this section, the commissioner has the authority to transfer
funds between the medical assistance account and the home and community-based
services transitions grants account.

Sec. 6.

Minnesota Statutes 2014, section 256.975, subdivision 8, is amended to read:

Subd. 8.

Promotion of Establish long-term care insurance call center.

Within
the limits of appropriations specifically for this purpose, the Minnesota Board on Aging,
either directly or through contract, its Senior LinkAge Line established under section
256.975, subdivision 7, shall promote the provision of employer-sponsored, establish
a long-term care call center that promotes planning for long-term care, and provides
information about long-term care insurance, other long-term care financing options, and
resources that support Minnesotans as they age or have more long-term chronic care
needs. The board shall encourage private and public sector employers to make long-term
care insurance available to employees, provide interested employers with information
on the long-term care insurance product offered to state employees, and provide work
with a variety of stakeholders, including employers, insurance providers, brokers, or
other sellers of products and consumers to develop the call center. The board shall seek
technical assistance to employers from the commissioner in designing long-term care
insurance products and contacting companies offering long-term care insurance products
for implementation of the call center.

Sec. 7.

Minnesota Statutes 2014, section 256B.056, subdivision 5c, is amended to read:

Subd. 5c.

Excess income standard.

(a) The excess income standard for parents
and caretaker relatives, pregnant women, infants, and children ages two through 20 is the
standard specified in subdivision 4, paragraph (b).

(b) Prior to July 1, 2017, the excess income standard for a person whose eligibility is
based on blindness, disability, or age of 65 or more years shall equal 75 percent of the
federal poverty guidelines.

(c) Between January 1, 2017, and December 31, 2018, the excess income standard
for a person whose eligibility is based on blindness, disability, or age of 65 or more years,
shall equal 85 percent of the federal poverty guidelines.

(d) Beginning January 1, 2019, the excess income standard for a person whose
eligibility is based on blindness, disability, or age of 65 or more years, shall equal 95
percent of the federal poverty guidelines.

EFFECTIVE DATE.

This section is effective July 1, 2015.

Sec. 8.

Minnesota Statutes 2014, section 256B.057, subdivision 9, is amended to read:

Subd. 9.

Employed persons with disabilities.

(a) Medical assistance may be paid
for a person who is employed and who:

(1) but for excess earnings or assets, meets the definition of disabled under the
Supplemental Security Income program;

(2) meets the asset limits in paragraph (d); and

(3) pays a premium and other obligations under paragraph (e).

(b) For purposes of eligibility, there is a $65 earned income disregard. To be eligible
for medical assistance under this subdivision, a person must have more than $65 of earned
income. Earned income must have Medicare, Social Security, and applicable state and
federal taxes withheld. The person must document earned income tax withholding. Any
spousal income or assets shall be disregarded for purposes of eligibility and premium
determinations.

(c) After the month of enrollment, a person enrolled in medical assistance under
this subdivision who:

(1) is temporarily unable to work and without receipt of earned income due to a
medical condition, as verified by a physician; or

(2) loses employment for reasons not attributable to the enrollee, and is without
receipt of earned income may retain eligibility for up to four consecutive months after the
month of job loss. To receive a four-month extension, enrollees must verify the medical
condition or provide notification of job loss. All other eligibility requirements must be met
and the enrollee must pay all calculated premium costs for continued eligibility.

(d) For purposes of determining eligibility under this subdivision, a person's assets
must not exceed $20,000, excluding:

(1) all assets excluded under section 256B.056;

(2) retirement accounts, including individual accounts, 401(k) plans, 403(b) plans,
Keogh plans, and pension plans;

(3) medical expense accounts set up through the person's employer; and

(4) spousal assets, including spouse's share of jointly held assets.

(e) All enrollees must pay a premium to be eligible for medical assistance under this
subdivision, except as provided under clause (5).

(1) An enrollee must pay the greater of a $65 $35 premium or the premium calculated
based on the person's gross earned and unearned income and the applicable family size
using a sliding fee scale established by the commissioner, which begins at one percent of
income at 100 percent of the federal poverty guidelines and increases to 7.5 percent of
income for those with incomes at or above 300 percent of the federal poverty guidelines.

(2) Annual adjustments in the premium schedule based upon changes in the federal
poverty guidelines shall be effective for premiums due in July of each year.

(3) All enrollees who receive unearned income must pay five one-half of one percent
of unearned income in addition to the premium amount, except as provided under clause (5).

(4) Increases in benefits under title II of the Social Security Act shall not be counted
as income for purposes of this subdivision until July 1 of each year.

(5) Effective July 1, 2009, American Indians are exempt from paying premiums as
required by section 5006 of the American Recovery and Reinvestment Act of 2009, Public
Law 111-5. For purposes of this clause, an American Indian is any person who meets the
definition of Indian according to Code of Federal Regulations, title 42, section 447.50.

(f) A person's eligibility and premium shall be determined by the local county
agency. Premiums must be paid to the commissioner. All premiums are dedicated to
the commissioner.

(g) Any required premium shall be determined at application and redetermined at
the enrollee's six-month income review or when a change in income or household size is
reported. Enrollees must report any change in income or household size within ten days
of when the change occurs. A decreased premium resulting from a reported change in
income or household size shall be effective the first day of the next available billing month
after the change is reported. Except for changes occurring from annual cost-of-living
increases, a change resulting in an increased premium shall not affect the premium amount
until the next six-month review.

(h) Premium payment is due upon notification from the commissioner of the
premium amount required. Premiums may be paid in installments at the discretion of
the commissioner.

(i) Nonpayment of the premium shall result in denial or termination of medical
assistance unless the person demonstrates good cause for nonpayment. Good cause exists
if the requirements specified in Minnesota Rules, part 9506.0040, subpart 7, items B to
D, are met. Except when an installment agreement is accepted by the commissioner, all
persons disenrolled for nonpayment of a premium must pay any past due premiums as well
as current premiums due prior to being reenrolled. Nonpayment shall include payment with
a returned, refused, or dishonored instrument. The commissioner may require a guaranteed
form of payment as the only means to replace a returned, refused, or dishonored instrument.

(j) For enrollees whose income does not exceed 200 percent of the federal poverty
guidelines and who are also enrolled in Medicare, the commissioner shall reimburse
the enrollee for Medicare part B premiums under section 256B.0625, subdivision 15,
paragraph (a).

Sec. 9.

Minnesota Statutes 2014, section 256B.059, subdivision 5, is amended to read:

Subd. 5.

Asset availability.

(a) At the time of initial determination of eligibility for
medical assistance benefits following the first continuous period of institutionalization on
or after October 1, 1989, assets considered available to the institutionalized spouse shall
be the total value of all assets in which either spouse has an ownership interest, reduced by
the following amount for the community spouse:

(1) prior to July 1, 1994, the greater of:

(i) $14,148;

(ii) the lesser of the spousal share or $70,740; or

(iii) the amount required by court order to be paid to the community spouse;

(2) for persons whose date of initial determination of eligibility for medical
assistance following their first continuous period of institutionalization occurs on or after
July 1, 1994, the greater of:

(i) $20,000;

(ii) the lesser of the spousal share or $70,740; or

(iii) the amount required by court order to be paid to the community spouse.

The value of assets transferred for the sole benefit of the community spouse under section
256B.0595, subdivision 4, in combination with other assets available to the community
spouse under this section, cannot exceed the limit for the community spouse asset
allowance determined under subdivision 3 or 4. Assets that exceed this allowance shall be
considered available to the institutionalized spouse whether or not converted to income. If
the community spouse asset allowance has been increased under subdivision 4, then the
assets considered available to the institutionalized spouse under this subdivision shall be
further reduced by the value of additional amounts allowed under subdivision 4.

(b) An institutionalized spouse may be found eligible for medical assistance even
though assets in excess of the allowable amount are found to be available under paragraph
(a) if the assets are owned jointly or individually by the community spouse, and the
institutionalized spouse cannot use those assets to pay for the cost of care without the
consent of the community spouse, and if: (i) the institutionalized spouse assigns to the
commissioner the right to support from the community spouse under section 256B.14,
subdivision 3; (ii) the institutionalized spouse lacks the ability to execute an assignment
due to a physical or mental impairment; or (iii) the denial of eligibility would cause an
imminent threat to the institutionalized spouse's health and well-being.

(c) After the month in which the institutionalized spouse is determined eligible for
medical assistance, during the continuous period of institutionalization, no assets of the
community spouse are considered available to the institutionalized spouse, unless the
institutionalized spouse has been found eligible under paragraph (b).

(d) Assets determined to be available to the institutionalized spouse under this
section must be used for the health care or personal needs of the institutionalized spouse.

(e) For purposes of this section, assets do not include assets excluded under the
Supplemental Security Income program.

Sec. 10.

Minnesota Statutes 2014, section 256B.0916, subdivision 2, is amended to read:

Subd. 2.

Distribution of funds; partnerships.

(a) Beginning with fiscal year 2000,
the commissioner shall distribute all funding available for home and community-based
waiver services for persons with developmental disabilities to individual counties or to
groups of counties that form partnerships to jointly plan, administer, and authorize funding
for eligible individuals. The commissioner shall encourage counties to form partnerships
that have a sufficient number of recipients and funding to adequately manage the risk
and maximize use of available resources.

(b) Counties must submit a request for funds and a plan for administering the
program as required by the commissioner. The plan must identify the number of clients to
be served, their ages, and their priority listing based on:

(1) requirements in Minnesota Rules, part 9525.1880; and

(2) statewide priorities identified in section 256B.092, subdivision 12.

The plan must also identify changes made to improve services to eligible persons and to
improve program management.

(c) In allocating resources to counties, priority must be given to groups of counties
that form partnerships to jointly plan, administer, and authorize funding for eligible
individuals and to counties determined by the commissioner to have sufficient waiver
capacity to maximize resource use.

(d) Within 30 days after receiving the county request for funds and plans, the
commissioner shall provide a written response to the plan that includes the level of
resources available to serve additional persons.

(e) Counties are eligible to receive medical assistance administrative reimbursement
for administrative costs under criteria established by the commissioner.

(f) The commissioner shall manage waiver allocations in such a manner as to fully
use available state and federal waiver appropriations.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 11.

Minnesota Statutes 2014, section 256B.0916, subdivision 11, is amended to
read:

Subd. 11.

Excess spending.

County and tribal agencies are responsible for spending
in excess of the allocation made by the commissioner. In the event a county or tribal agency
spends in excess of the allocation made by the commissioner for a given allocation period,
they must submit a corrective action plan to the commissioner for approval. The plan must
state the actions the agency will take to correct their overspending for the year two years
following the period when the overspending occurred. Failure to correct overspending
shall result in recoupment of spending in excess of the allocation. The commissioner
shall recoup spending in excess of the allocation only in cases where statewide spending
exceeds the appropriation designated for the home and community-based services waivers.
Nothing in this subdivision shall be construed as reducing the county's responsibility to
offer and make available feasible home and community-based options to eligible waiver
recipients within the resources allocated to them for that purpose.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 12.

Minnesota Statutes 2014, section 256B.0916, is amended by adding a
subdivision to read:

Subd. 12.

Use of waiver allocations.

County and tribal agencies are responsible
for spending the annual allocation made by the commissioner. In the event a county or
tribal agency spends less than 97 percent of the allocation, while maintaining a list of
persons waiting for waiver services, the county or tribal agency must submit a corrective
action plan to the commissioner for approval. The commissioner may determine a plan
is unnecessary given the size of the allocation and capacity for new enrollment. The
plan must state the actions the agency will take to assure reasonable and timely access
to home and community-based waiver services for persons waiting for services. If a
county or tribe does not submit a plan when required or implement the changes required,
the commissioner shall assure access to waiver services within the county's or tribe's
available allocation and take other actions needed to assure that all waiver participants in
that county or tribe are receiving appropriate waiver services to meet their needs.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 13.

Minnesota Statutes 2014, section 256B.441, is amended by adding a
subdivision to read:

Subd. 65.

Nursing facility workforce enhancement rate adjustment effective
January 1, 2016.

(a) A onetime rate adjustment for the purpose of providing more
competitive wages in nursing facilities shall be provided as described under this
subdivision.

(b) Beginning January 1, 2016, the commissioner shall make available to each
nursing facility reimbursed under this section an operating payment rate adjustment,
in accordance with paragraphs (c) to (i).

(c) One hundred percent of the money resulting from the rate adjustment under
paragraph (b) must be used for increases in wages and the employer's share of FICA taxes,
Medicare taxes, state and federal unemployment taxes, and workers' compensation for
employees directly employed by the nursing facility on or after the effective date of the
rate adjustment. Individuals not eligible for an increase under this subdivision include:

(1) an individual employed in the central office of an entity that has an ownership
interest in the nursing facility or exercises control over the nursing facility;

(2) an individual paid by the nursing facility under a management contract; or

(3) an individual being paid a base wage of $40 per hour or more.

(d) A nursing facility may apply for the rate adjustment under paragraph (b). The
application must be submitted to the commissioner, in the form and manner specified by
the commissioner, by August 10, 2015, and the nursing facility must provide additional
information required by the commissioner by October 1, 2015. The commissioner may
waive the deadlines in this paragraph under extraordinary circumstances, to be determined
at the sole discretion of the commissioner. The application must contain at least:

(1) labor market information for positions that in terms of training, experience, and
other relevant qualifications, are comparable to those in the nursing facility;

(2) proposed wage plan changes according to which all employees in a specific job
group receive wage adjustments by an equal percentage, and that result in the average
cost per compensated hour for that job group being equal to those for the comparable
positions in the labor market;

(3) a calculation of the cost of implementing the specified wage plans;

(4) for nursing facilities in which ten percent or more of eligible employees are
represented by an exclusive bargaining representative, the commissioner shall approve
the application only upon receipt of a letter of acceptance of the distribution plan, with
respect to members of the bargaining unit, signed by the exclusive bargaining agent and
dated after May 25, 2015;

(5) a description of the plan the nursing facility will follow to notify eligible
employees of the contents of the approved application. The plan must provide for giving
each eligible employee a copy of the approved application or posting a copy of the
approved application for a period of at least six weeks in an area of the nursing facility to
which all eligible employees have access; and

(6) instructions for employees who believe they have not received the
compensation-related increases specified in clause (2), as approved by the commissioner,
and that must include a mailing address, e-mail address, and the telephone number that may
be used by the employee to contact the commissioner or the commissioner's representative.

(e) The commissioner shall review applications received and shall subject them to
tests for consistency with the most recently available information from annual statistical
and cost reports. The commission shall request additional information as needed from
applying facilities. By use of medians from all applications and the most recently available
public data on regional prevailing wage levels for comparable positions, the commissioner
shall adjust the applicant-provided labor market information used in determining the
amount of funding increase to be provided.

(f) The commissioner shall review applications received under paragraph (d) and
shall provide the funding increase under this subdivision if the requirements of this
subdivision have been met and if the appropriation for this purpose is sufficient. The rate
adjustment shall be effective January 1, 2016. If the approved applications, in total, would
distribute more money than is appropriated, the commissioner shall reduce by an equal
percentage the amount of all funding increases to be allowed. The wage adjustments
specified in an application may be reduced by the same percentage.

(g) For direct care-related positions, the commissioner shall divide the amount
determined in paragraph (f) by the standardized days from the most recently available cost
report and multiply this amount by the weight assigned to each RUG class, to determine
per diem amounts, which shall be added to each RUG operating payment rate.

(h) For all other positions, the commissioner shall divide the amount determined in
paragraph (f) by the resident days from the most recently available cost report and add this
amount to each RUG operating payment rate.

(i) A nursing facility participating in the equitable cost-sharing for publicly owned
nursing facility program participation under section 256B.441, subdivision 55a, may
amend its level of participation after receiving notice of approval of its application under
this subdivision.

Sec. 14.

Minnesota Statutes 2014, section 256B.49, subdivision 26, is amended to read:

Subd. 26.

Excess allocations.

(a) Effective through June 30, 2018, county and
tribal agencies will be responsible for authorizations in excess of the annual allocation
made by the commissioner. In the event a county or tribal agency authorizes in excess
of the allocation made by the commissioner for a given allocation period, the county or
tribal agency must submit a corrective action plan to the commissioner for approval.
The plan must state the actions the agency will take to correct their overspending for
the year two years following the period when the overspending occurred. Failure to
correct overauthorizations shall result in recoupment of authorizations in excess of the
allocation. The commissioner shall recoup funds spent in excess of the allocation only
in cases where statewide spending exceeds the appropriation designated for the home
and community-based services waivers. Nothing in this subdivision shall be construed
as reducing the county's responsibility to offer and make available feasible home and
community-based options to eligible waiver recipients within the resources allocated
to them for that purpose. If a county or tribe does not submit a plan when required or
implement the changes required, the commissioner shall assure access to waiver services
within the county's or tribe's available allocation and take other actions needed to assure
that all waiver participants in that county or tribe are receiving appropriate waiver services
to meet their needs.

(b) Effective July 1, 2018, county and tribal agencies will be responsible for
spending in excess of the annual allocation made by the commissioner. In the event a
county or tribal agency spends in excess of the allocation made by the commissioner for a
given allocation period, the county or tribal agency must submit a corrective action plan to
the commissioner for approval. The plan must state the actions the agency will take to
correct its overspending for the two years following the period when the overspending
occurred. The commissioner shall recoup funds spent in excess of the allocation only
in cases when statewide spending exceeds the appropriation designated for the home
and community-based services waivers. Nothing in this subdivision shall be construed
as reducing the county's responsibility to offer and make available feasible home and
community-based options to eligible waiver recipients within the resources allocated to it
for that purpose. If a county or tribe does not submit a plan when required or implement
the changes required, the commissioner shall assure access to waiver services within
the county's or tribe's available allocation and take other actions needed to assure that
all waiver participants in that county or tribe are receiving appropriate waiver services
to meet their needs.

Sec. 15.

Minnesota Statutes 2014, section 256B.49, is amended by adding a
subdivision to read:

Subd. 27.

Use of waiver allocations.

(a) Effective until June 30, 2018, county
and tribal agencies are responsible for authorizing the annual allocation made by the
commissioner. In the event a county or tribal agency authorizes less than 97 percent of
the allocation, while maintaining a list of persons waiting for waiver services, the county
or tribal agency must submit a corrective action plan to the commissioner for approval.
The commissioner may determine a plan is unnecessary given the size of the allocation
and capacity for new enrollment. The plan must state the actions the agency will take
to assure reasonable and timely access to home and community-based waiver services
for persons waiting for services.

(b) Effective July 1, 2018, county and tribal agencies are responsible for spending
the annual allocation made by the commissioner. In the event a county or tribal agency
spends less than 97 percent of the allocation, while maintaining a list of persons waiting
for waiver services, the county or tribal agency must submit a corrective action plan to the
commissioner for approval. The commissioner may determine a plan is unnecessary given
the size of the allocation and capacity for new enrollment. The plan must state the actions
the agency will take to assure reasonable and timely access to home and community-based
waiver services for persons waiting for services.

Sec. 16.

Minnesota Statutes 2014, section 256B.4913, subdivision 4a, is amended to
read:

Subd. 4a.

Rate stabilization adjustment.

(a) For purposes of this subdivision,
"implementation period" means the period beginning January 1, 2014, and ending on
the last day of the month in which the rate management system is populated with the
data necessary to calculate rates for substantially all individuals receiving home and
community-based waiver services under sections 256B.092 and 256B.49. "Banding
period" means the time period beginning on January 1, 2014, and ending upon the
expiration of the 12-month period defined in paragraph (c), clause (5).

(b) For purposes of this subdivision, the historical rate for all service recipients means
the individual reimbursement rate for a recipient in effect on December 1, 2013, except that:

(1) for a day service recipient who was not authorized to receive these waiver
services prior to January 1, 2014; added a new service or services on or after January 1,
2014; or changed providers on or after January 1, 2014, the historical rate must be the
authorized rate for the provider in the county of service, effective December 1, 2013; or

(2) for a unit-based service with programming or a unit-based service without
programming recipient who was not authorized to receive these waiver services prior to
January 1, 2014; added a new service or services on or after January 1, 2014; or changed
providers on or after January 1, 2014, the historical rate must be the weighted average
authorized rate for each provider number in the county of service, effective December 1,
2013; or

(3) for residential service recipients who change providers on or after January 1,
2014, the historical rate must be set by each lead agency within their county aggregate
budget using their respective methodology for residential services effective December 1,
2013, for determining the provider rate for a similarly situated recipient being served by
that provider.

(c) The commissioner shall adjust individual reimbursement rates determined under
this section so that the unit rate is no higher or lower than:

(1) 0.5 percent from the historical rate for the implementation period;

(2) 0.5 percent from the rate in effect in clause (1), for the 12-month period
immediately following the time period of clause (1);

(3) 1.0 0.5 percent from the rate in effect in clause (2), for the 12-month period
immediately following the time period of clause (2);

(4) 1.0 percent from the rate in effect in clause (3), for the 12-month period
immediately following the time period of clause (3); and

(5) 1.0 percent from the rate in effect in clause (4), for the 12-month period
immediately following the time period of clause (4); and

(6) no adjustment to the rate in effect in clause (5) for the 12-month period
immediately following the time period of clause (5). During this banding rate period, the
commissioner shall not enforce any rate decrease or increase that would otherwise result
from the end of the banding period. The commissioner shall, upon enactment, seek federal
approval for the addition of this banding period.

(d) The commissioner shall review all changes to rates that were in effect on
December 1, 2013, to verify that the rates in effect produce the equivalent level of spending
and service unit utilization on an annual basis as those in effect on October 31, 2013.

(e) By December 31, 2014, the commissioner shall complete the review in paragraph
(d), adjust rates to provide equivalent annual spending, and make appropriate adjustments.

(f) During the banding period, the Medicaid Management Information System
(MMIS) service agreement rate must be adjusted to account for change in an individual's
need. The commissioner shall adjust the Medicaid Management Information System
(MMIS) service agreement rate by:

(1) calculating a service rate under section 256B.4914, subdivision 6, 7, 8, or 9, for
the individual with variables reflecting the level of service in effect on December 1, 2013;

(2) calculating a service rate under section 256B.4914, subdivision 6, 7, 8, or
9, for the individual with variables reflecting the updated level of service at the time
of application; and

(3) adding to or subtracting from the Medicaid Management Information System
(MMIS) service agreement rate, the difference between the values in clauses (1) and (2).

(g) This subdivision must not apply to rates for recipients served by providers new
to a given county after January 1, 2014. Providers of personal supports services who also
acted as fiscal support entities must be treated as new providers as of January 1, 2014.

Sec. 17.

Minnesota Statutes 2014, section 256B.4913, subdivision 5, is amended to read:

Subd. 5.

Stakeholder consultation and county training.

(a) The commissioner
shall continue consultation on regular intervals with the existing stakeholder group
established as part of the rate-setting methodology process and others, to gather input,
concerns, and data, to assist in the full implementation of the new rate payment system and
to make pertinent information available to the public through the department's Web site.

(b) The commissioner shall offer training at least annually for county personnel
responsible for administering the rate-setting framework in a manner consistent with this
section and section 256B.4914.

(c) The commissioner shall maintain an online instruction manual explaining the
rate-setting framework. The manual shall be consistent with this section and section
256B.4914, and shall be accessible to all stakeholders including recipients, representatives
of recipients, county or tribal agencies, and license holders.

(d) The commissioner shall not defer to the county or tribal agency on matters of
technical application of the rate-setting framework, and a county or tribal agency shall not
set rates in a manner that conflicts with this section or section 256B.4914.

Sec. 18.

Minnesota Statutes 2014, section 256B.4914, subdivision 2, is amended to read:

Subd. 2.

Definitions.

(a) For purposes of this section, the following terms have the
meanings given them, unless the context clearly indicates otherwise.

(b) "Commissioner" means the commissioner of human services.

(c) "Component value" means underlying factors that are part of the cost of providing
services that are built into the waiver rates methodology to calculate service rates.

(d) "Customized living tool" means a methodology for setting service rates that
delineates and documents the amount of each component service included in a recipient's
customized living service plan.

(e) "Disability waiver rates system" means a statewide system that establishes rates
that are based on uniform processes and captures the individualized nature of waiver
services and recipient needs.

(f) "Individual staffing" means the time spent as a one-to-one interaction specific to
an individual recipient by staff brought in solely to provide direct support and assistance
with activities of daily living, instrumental activities of daily living, and training to
participants, and is based on the requirements in each individual's coordinated service and
support plan under section 245D.02, subdivision 4b; any coordinated service and support
plan addendum under section 245D.02, subdivision 4c; and an assessment tool; and.
Provider observation of an individual's needs must also be considered.

(g) "Lead agency" means a county, partnership of counties, or tribal agency charged
with administering waivered services under sections 256B.092 and 256B.49.

(h) "Median" means the amount that divides distribution into two equal groups,
one-half above the median and one-half below the median.

(i) "Payment or rate" means reimbursement to an eligible provider for services
provided to a qualified individual based on an approved service authorization.

(j) "Rates management system" means a Web-based software application that uses
a framework and component values, as determined by the commissioner, to establish
service rates.

(k) "Recipient" means a person receiving home and community-based services
funded under any of the disability waivers.

(l) "Shared staffing" means time spent by employees, not defined under paragraph
(f), providing or available to provide more than one individual with direct support and
assistance with activities of daily living as defined under section 256B.0659, subdivision 1,
paragraph (b); instrumental activities of daily living as defined under section 256B.0659,
subdivision 1, paragraph (i); ancillary activities needed to support individual services; and
training to participants, and is based on the requirements in each individual's coordinated
service and support plan under section 245D.02, subdivision 4b; any coordinated service
and support plan addendum under section 245D.02, subdivision 4c; an assessment tool; and
provider observation of an individual's service need. Total shared staffing hours are divided
proportionally by the number of individuals who receive the shared service provisions.

(m) "Staffing ratio" means the number of recipients a service provider employee
supports during a unit of service based on a uniform assessment tool, provider observation,
case history, and the recipient's services of choice, and not based on the staffing ratios
under section 245D.31.

(n) "Unit of service" means the following:

(1) for residential support services under subdivision 6, a unit of service is a day.
Any portion of any calendar day, within allowable Medicaid rules, where an individual
spends time in a residential setting is billable as a day;

(2) for day services under subdivision 7:

(i) for day training and habilitation services, a unit of service is either:

(A) a day unit of service is defined as six or more hours of time spent providing
direct services and transportation; or

(B) a partial day unit of service is defined as fewer than six hours of time spent
providing direct services and transportation; and

(C) for new day service recipients after January 1, 2014, 15 minute units of
service must be used for fewer than six hours of time spent providing direct services
and transportation;

(ii) for adult day and structured day services, a unit of service is a day or 15 minutes.
A day unit of service is six or more hours of time spent providing direct services;

(iii) for prevocational services, a unit of service is a day or an hour. A day unit of
service is six or more hours of time spent providing direct service;

(3) for unit-based services with programming under subdivision 8:

(i) for supported living services, a unit of service is a day or 15 minutes. When a
day rate is authorized, any portion of a calendar day where an individual receives services
is billable as a day; and

(ii) for all other services, a unit of service is 15 minutes; and

(4) for unit-based services without programming under subdivision 9:

(i) for respite services, a unit of service is a day or 15 minutes. When a day rate is
authorized, any portion of a calendar day when an individual receives services is billable
as a day; and

(ii) for all other services, a unit of service is 15 minutes.

Sec. 19.

Minnesota Statutes 2014, section 256B.4914, subdivision 8, is amended to read:

Subd. 8.

Payments for unit-based services with programming.

Payments for
unit-based with program services with programming, including behavior programming,
housing access coordination, in-home family support, independent living skills training,
hourly supported living services, and supported employment provided to an individual
outside of any day or residential service plan must be calculated as follows, unless the
services are authorized separately under subdivision 6 or 7:

(1) determine the number of units of service to meet a recipient's needs;

(2) personnel hourly wage rate must be based on the 2009 Bureau of Labor Statistics
Minnesota-specific rates or rates derived by the commissioner as provided in subdivision 5;

(3) for a recipient requiring customization for deaf and hard-of-hearing language
accessibility under subdivision 12, add the customization rate provided in subdivision 12
to the result of clause (2). This is defined as the customized direct-care rate;

(4) multiply the number of direct staff hours by the appropriate staff wage in
subdivision 5, paragraph (a), or the customized direct-care rate;

(5) multiply the number of direct staff hours by the product of the supervision span
of control ratio in subdivision 5, paragraph (e), clause (1), and the appropriate supervision
wage in subdivision 5, paragraph (a), clause (16);

(6) combine the results of clauses (4) and (5), and multiply the result by one plus
the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph (e),
clause (2). This is defined as the direct staffing rate;

(7) for program plan support, multiply the result of clause (6) by one plus the
program plan supports ratio in subdivision 5, paragraph (e), clause (4);

(8) for employee-related expenses, multiply the result of clause (7) by one plus the
employee-related cost ratio in subdivision 5, paragraph (e), clause (3);

(9) for client programming and supports, multiply the result of clause (8) by one plus
the client programming and supports ratio in subdivision 5, paragraph (e), clause (5);

(10) this is the subtotal rate;

(11) sum the standard general and administrative rate, the program-related expense
ratio, and the absence and utilization factor ratio;

(12) divide the result of clause (10) by one minus the result of clause (11). This is
the total payment amount;

(13) for supported employment provided in a shared manner, divide the total
payment amount in clause (12) by the number of service recipients, not to exceed three.
For independent living skills training provided in a shared manner, divide the total
payment amount in clause (12) by the number of service recipients, not to exceed two; and

(14) adjust the result of clause (13) by a factor to be determined by the commissioner
to adjust for regional differences in the cost of providing services.

Sec. 20.

Minnesota Statutes 2014, section 256B.4914, subdivision 10, is amended to
read:

Subd. 10.

Updating payment values and additional information.

(a) From
January 1, 2014, through December 31, 2017, the commissioner shall develop and
implement uniform procedures to refine terms and adjust values used to calculate payment
rates in this section.

(b) No later than July 1, 2014, the commissioner shall, within available resources,
begin to conduct research and gather data and information from existing state systems or
other outside sources on the following items:

(1) differences in the underlying cost to provide services and care across the state; and

(2) mileage, vehicle type, lift requirements, incidents of individual and shared rides,
and units of transportation for all day services, which must be collected from providers
using the rate management worksheet and entered into the rates management system; and

(3) the distinct underlying costs for services provided by a license holder under
sections 245D.05, 245D.06, 245D.07, 245D.071, 245D.081, and 245D.09, and for services
provided by a license holder certified under section 245D.33.

(c) Using a statistically valid set of rates management system data, the commissioner,
in consultation with stakeholders, shall analyze for each service the average difference
in the rate on December 31, 2013, and the framework rate at the individual, provider,
lead agency, and state levels. The commissioner shall issue semiannual reports to the
stakeholders on the difference in rates by service and by county during the banding period
under section 256B.4913, subdivision 4a. The commissioner shall issue the first report
by October 1, 2014.

(d) No later than July 1, 2014, the commissioner, in consultation with stakeholders,
shall begin the review and evaluation of the following values already in subdivisions 6 to
9, or issues that impact all services, including, but not limited to:

(1) values for transportation rates for day services;

(2) values for transportation rates in residential services;

(3) values for services where monitoring technology replaces staff time;

(4) values for indirect services;

(5) values for nursing;

(6) component values for independent living skills;

(7) component values for family foster care that reflect licensing requirements;

(8) adjustments to other components to replace the budget neutrality factor;

(9) remote monitoring technology for nonresidential services;

(10) values for basic and intensive services in residential services;

(11) values for the facility use rate in day services the weightings used in the day
service ratios and adjustments to those weightings;

(12) values for workers' compensation as part of employee-related expenses;

(13) values for unemployment insurance as part of employee-related expenses;

(14) a component value to reflect costs for individuals with rates previously adjusted
for the inclusion of group residential housing rate 3 costs, only for any individual enrolled
as of December 31, 2013; and

(15) any changes in state or federal law with an impact on the underlying cost of
providing home and community-based services.

(e) The commissioner shall report to the chairs and the ranking minority members of
the legislative committees and divisions with jurisdiction over health and human services
policy and finance with the information and data gathered under paragraphs (b) to (d)
on the following dates:

(1) January 15, 2015, with preliminary results and data;

(2) January 15, 2016, with a status implementation update, and additional data
and summary information;

(3) January 15, 2017, with the full report; and

(4) January 15, 2019, with another full report, and a full report once every four
years thereafter.

(f) Based on the commissioner's evaluation of the information and data collected in
paragraphs (b) to (d), the commissioner shall make recommendations to the legislature by
January 15, 2015, to address any issues identified during the first year of implementation.
After January 15, 2015, the commissioner may make recommendations to the legislature
to address potential issues.

(g) The commissioner shall implement a regional adjustment factor to all rate
calculations in subdivisions 6 to 9, effective no later than January 1, 2015. Prior to
implementation, the commissioner shall consult with stakeholders on the methodology to
calculate the adjustment.

(h) The commissioner shall provide a public notice via LISTSERV in October of
each year beginning October 1, 2014, containing information detailing legislatively
approved changes in:

(1) calculation values including derived wage rates and related employee and
administrative factors;

(2) service utilization;

(3) county and tribal allocation changes; and

(4) information on adjustments made to calculation values and the timing of those
adjustments.

The information in this notice must be effective January 1 of the following year.

(i) No later than July 1, 2016, the commissioner shall develop and implement, in
consultation with stakeholders, a methodology sufficient to determine the shared staffing
levels necessary to meet, at a minimum, health and welfare needs of individuals who
will be living together in shared residential settings, and the required shared staffing
activities described in subdivision 2, paragraph (l). This determination methodology must
ensure staffing levels are adaptable to meet the needs and desired outcomes for current and
prospective residents in shared residential settings.

(j) When the available shared staffing hours in a residential setting are insufficient to
meet the needs of an individual who enrolled in residential services after January 1, 2014,
or insufficient to meet the needs of an individual with a service agreement adjustment
described in section 256B.4913, subdivision 4a, paragraph (f), then individual staffing
hours shall be used.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 21.

Minnesota Statutes 2014, section 256B.4914, subdivision 14, is amended to
read:

Subd. 14.

Exceptions.

(a) In a format prescribed by the commissioner, lead
agencies must identify individuals with exceptional needs that cannot be met under the
disability waiver rate system. The commissioner shall use that information to evaluate
and, if necessary, approve an alternative payment rate for those individuals. Whether
granted, denied, or modified, the commissioner shall respond to all exception requests in
writing. The commissioner shall include in the written response the basis for the action
and provide notification of the right to appeal under paragraph (h).

(b) Lead agencies must act on an exception request within 30 days and notify the
initiator of the request of their recommendation in writing. A lead agency shall submit all
exception requests along with its recommendation to the state commissioner.

(c) An application for a rate exception may be submitted for the following criteria:

(1) an individual has service needs that cannot be met through additional units
of service; or

(2) an individual's rate determined under subdivisions 6, 7, 8, and 9 results is so
insufficient that it has resulted in an individual being discharged receiving a notice of
discharge from the individual's provider; or

(3) an individual's service needs, including behavioral changes, require a level of
service which necessitates a change in provider or which requires the current provider to
propose service changes beyond those currently authorized.

(d) Exception requests must include the following information:

(1) the service needs required by each individual that are not accounted for in
subdivisions 6, 7, 8, and 9;

(2) the service rate requested and the difference from the rate determined in
subdivisions 6, 7, 8, and 9;

(3) a basis for the underlying costs used for the rate exception and any accompanying
documentation; and

(4) the duration of the rate exception; and

(5) any contingencies for approval.

(e) Approved rate exceptions shall be managed within lead agency allocations under
sections 256B.092 and 256B.49.

(f) Individual disability waiver recipients, an interested party, or the license holder
that would receive the rate exception increase may request that a lead agency submit an
exception request. A lead agency that denies such a request shall notify the individual
waiver recipient, interested party, or license holder of its decision and the reasons for
denying the request in writing no later than 30 days after the individual's request has been
made and shall submit its denial to the commissioner in accordance with paragraph (b).
The reasons for the denial must be based on the failure to meet the criteria in paragraph (c).

(g) The commissioner shall determine whether to approve or deny an exception
request no more than 30 days after receiving the request. If the commissioner denies the
request, the commissioner shall notify the lead agency and the individual disability waiver
recipient, the interested party, and the license holder in writing of the reasons for the denial.

(h) The individual disability waiver recipient may appeal any denial of an exception
request by either the lead agency or the commissioner, pursuant to sections 256.045 and
256.0451. When the denial of an exception request results in the proposed demission of a
waiver recipient from a residential or day habilitation program, the commissioner shall
issue a temporary stay of demission, when requested by the disability waiver recipient,
consistent with the provisions of section 256.045, subdivisions 4a and 6, paragraph (c).
The temporary stay shall remain in effect until the lead agency can provide an informed
choice of appropriate, alternative services to the disability waiver.

(i) Providers may petition lead agencies to update values that were entered
incorrectly or erroneously into the rate management system, based on past service level
discussions and determination in subdivision 4, without applying for a rate exception.

(j) The starting date for the rate exception will be the later of the date of the
recipient's change in support or the date of the request to the lead agency for an exception.

(k) The commissioner shall track all exception requests received and their
dispositions. The commissioner shall issue quarterly public exceptions statistical reports,
including the number of exception requests received and the numbers granted, denied,
withdrawn, and pending. The report shall include the average amount of time required to
process exceptions.

(l) No later than January 15, 2016, the commissioner shall provide research
findings on the estimated fiscal impact, the primary cost drivers, and common population
characteristics of recipients with needs that cannot be met by the framework rates.

(m) No later than July 1, 2016, the commissioner shall develop and implement,
in consultation with stakeholders, a process to determine eligibility for rate exceptions
for individuals with rates determined under the methodology in section 256B.4913,
subdivision 4a. Determination of eligibility for an exception will occur as annual service
renewals are completed.

(n) Approved rate exceptions will be implemented at such time that the individual's
rate is no longer banded and remain in effect in all cases until an individual's needs change
as defined in paragraph (c).

Sec. 22.

Minnesota Statutes 2014, section 256B.4914, subdivision 15, is amended to
read:

Subd. 15.

County or tribal allocations.

(a) Upon implementation of the disability
waiver rates management system on January 1, 2014, the commissioner shall establish
a method of tracking and reporting the fiscal impact of the disability waiver rates
management system on individual lead agencies.

(b) Beginning January 1, 2014, the commissioner shall make annual adjustments to
lead agencies' home and community-based waivered service budget allocations to adjust
for rate differences and the resulting impact on county allocations upon implementation of
the disability waiver rates system.

(c) During the first two years of implementation under section 256B.4913, Lead
agencies exceeding their allocations shall be subject to the provisions under sections
256B.092 256B.0916, subdivision 11, and shall only be held liable for spending
in excess of their allocations after a reallocation of resources by the commissioner under
paragraph (b). The commissioner shall reallocate resources under sections 256B.092,
subdivision 12, and 256B.49, subdivision 11a. The commissioner shall notify lead
agencies of this process by July 1, 2014 256B.49, subdivision 26.

Sec. 23.

[256Q.01] PLAN ESTABLISHED.

A savings plan known as the Minnesota ABLE plan is established. In establishing
this plan, the legislature seeks to encourage and assist individuals and families in saving
private funds for the purpose of supporting individuals with disabilities to maintain health,
independence, and quality of life, and to provide secure funding for disability-related
expenses on behalf of designated beneficiaries with disabilities that will supplement, but
not supplant, benefits provided through private insurance, federal and state medical and
disability insurance, the beneficiary's employment, and other sources.

Sec. 24.

[256Q.02] CITATION.

This chapter may be cited as the "Minnesota Achieving a Better Life Experience
Act" or "Minnesota ABLE Act."

Sec. 25.

[256Q.03] DEFINITIONS.

Subdivision 1.

Scope.

For the purposes of this chapter, the terms defined in this
section have the meanings given them.

Subd. 2.

ABLE account.

"ABLE account" has the meaning defined in section
529A(e)(6) of the Internal Revenue Code.

Subd. 3.

ABLE account plan or plan.

"ABLE account plan" or "plan" means the
qualified ABLE program, as defined in section 529A(b) of the Internal Revenue Code,
provided for in this chapter.

Subd. 4.

Account.

"Account" means the formal record of transactions relating to an
ABLE plan beneficiary.

Subd. 5.

Account owner.

"Account owner" means the designated beneficiary
of the account.

Subd. 6.

Annual contribution limit.

"Annual contribution limit" has the meaning
defined in section 529A(b)(2) of the Internal Revenue Code.

Subd. 7.

Application.

"Application" means the form executed by a prospective
account owner to enter into a participation agreement and open an account in the plan.
The application incorporates by reference the participation agreement.

Subd. 8.

Board.

"Board" means the State Board of Investment.

Subd. 9.

Commissioner.

"Commissioner" means the commissioner of human
services.

Subd. 10.

Contribution.

"Contribution" means a payment directly allocated to
an account for the benefit of a beneficiary.

Subd. 11.

Department.

"Department" means the Department of Human Services.

Subd. 12.

Designated beneficiary or beneficiary.

"Designated beneficiary" or
"beneficiary" has the meaning given in section 529A(e)(3) of the Internal Revenue Code
and further defined through regulations issued under that section.

Subd. 13.

Earnings.

"Earnings" means the total account balance minus the
investment in the account.

Subd. 14.

Eligible individual.

"Eligible individual" has the meaning defined in
section 529A(e)(1) of the Internal Revenue Code and further defined through regulations
issued under that section.

Subd. 15.

Executive director.

"Executive director" means the executive director of
the State Board of Investment.

Subd. 16.

Internal Revenue Code.

"Internal Revenue Code" means the Internal
Revenue Code of 1986, as amended.

Subd. 17.

Investment in the account.

"Investment in the account" means the sum
of all contributions made to an account by a particular date minus the aggregate amount
of contributions included in distributions or rollover distributions, if any, made from the
account as of that date.

Subd. 18.

Member of the family.

"Member of the family" has the meaning defined
in section 529A(e)(4) of the Internal Revenue Code.

Subd. 19.

Participation agreement.

"Participation agreement" means an agreement
to participate in the Minnesota ABLE plan between an account owner and the state,
through its agencies, the commissioner, and the board.

Subd. 20.

Person.

"Person" means an individual, trust, estate, partnership,
association, company, corporation, or the state.

Subd. 21.

Plan administrator.

"Plan administrator" means the person selected by
the commissioner and the board to administer the daily operations of the ABLE account
plan and provide marketing, record keeping, investment management, and other services
for the plan.

Subd. 22.

Qualified disability expense.

"Qualified disability expense" has the
meaning defined in section 529A(e)(5) of the Internal Revenue Code and further defined
through regulations issued under that section.

Subd. 23.

Qualified distribution.

"Qualified distribution" means a withdrawal from
an ABLE account to pay the qualified disability expenses of the beneficiary of the account.
A qualified withdrawal may be made by the beneficiary, by an agent of the beneficiary
who has the power of attorney, or by the beneficiary's legal guardian.

Subd. 24.

Rollover distribution.

"Rollover distribution" means a transfer of funds
made:

(1) from one account in another state's qualified ABLE program to an account for
the benefit of the same designated beneficiary or an eligible individual who is a family
member of the former designated beneficiary; or

(2) from one account to another account for the benefit of an eligible individual who
is a family member of the former designated beneficiary.

Subd. 25.

Total account balance.

"Total account balance" means the amount in an
account on a particular date or the fair market value of an account on a particular date.

Sec. 26.

[256Q.04] ABLE PLAN REQUIREMENTS.

Subdivision 1.

State residency requirement.

The designated beneficiary of any
ABLE account must be a resident of Minnesota, or the resident of a state that has entered
into a contract with Minnesota to provide its residents access to the Minnesota ABLE plan.

Subd. 2.

Single account requirement.

No more than one ABLE account shall be
established per beneficiary, except as permitted under section 529A(c)(4) of the Internal
Revenue Code.

Subd. 3.

Accounts-type plan.

The plan must be operated as an accounts-type
plan. A separate account must be maintained for each designated beneficiary for whom
contributions are made.

Subd. 4.

Contribution and account requirements.

Contributions to an ABLE
account are subject to the requirements of section 529A(b)(2) of the Internal Revenue
Code prohibiting noncash contributions and contributions in excess of the annual
contribution limit. The total account balance may not exceed the maximum account
balance limit imposed under section 136G.09, subdivision 8.

Subd. 5.

Limited investment direction.

Designated beneficiaries may not direct
the investment of assets in their accounts more than twice in any calendar year.

Subd. 6.

Security for loans.

An interest in an account must not be used as security
for a loan.

Sec. 27.

[256Q.05] ABLE PLAN ADMINISTRATION.

Subdivision 1.

Plan to comply with federal law.

The commissioner shall ensure that
the plan meets the requirements for an ABLE account under section 529A of the Internal
Revenue Code. The commissioner may request a private letter ruling or rulings from the
Internal Revenue Service or Secretary of Health and Human Services and must take any
necessary steps to ensure that the plan qualifies under relevant provisions of federal law.

Subd. 2.

Plan rules and procedures.

(a) The commissioner shall establish the
rules, terms, and conditions for the plan, subject to the requirements of this chapter and
section 529A of the Internal Revenue Code.

(b) The commissioner shall prescribe the application forms, procedures, and other
requirements that apply to the plan.

Subd. 3.

Consultation with other state agencies.

In designing and establishing
the plan's requirements and in negotiating or entering into contracts with third parties
under subdivision 4, the commissioner shall consult with the executive director of the
State Board of Investment and the commissioner of the Office of Higher Education.
The commissioner and the executive director shall establish an annual fee, equal to a
percentage of the average daily net assets of the plan, to be imposed on account owners
to recover the costs of administration, record keeping, and investment management as
provided in subdivision 5, and section 256Q.07, subdivision 4.

Subd. 4.

Administration.

The commissioner shall administer the plan, including
accepting and processing applications, verifying state residency, verifying eligibility,
maintaining account records, making payments, and undertaking any other necessary
tasks to administer the plan. Notwithstanding other requirements of this chapter, the
commissioner shall adopt rules for purposes of implementing and administering the plan.
The commissioner may contract with one or more third parties to carry out some or all of
these administrative duties, including providing incentives. The commissioner and the
board may jointly contract with third-party providers, if the commissioner and board
determine that it is desirable to contract with the same entity or entities for administration
and investment management.

Subd. 5.

Authority to impose fees.

The commissioner may impose annual fees,
as provided in subdivision 3, on account owners to recover the costs of administration.
The commissioner must keep the fees as low as possible, consistent with efficient
administration, so that the returns on savings invested in the plan are as high as possible.

Subd. 6.

Federally mandated reporting.

(a) As required under section 529A(d) of
the Internal Revenue Code, the commissioner or the commissioner's designee shall submit
a notice to the Secretary of the Treasury upon the establishment of each ABLE account.
The notice must contain the name and state of residence of the designated beneficiary and
other information as the secretary may require.

(b) As required under section 529A(d) of the Internal Revenue Code, the
commissioner or the commissioner's designee shall submit electronically on a monthly
basis to the Commissioner of Social Security, in a manner specified by the Commissioner
of Social Security, statements on relevant distributions and account balances from all
ABLE accounts.

Subd. 7.

Data.

(a) Data on ABLE accounts and designated beneficiaries of ABLE
accounts are private data on individuals or nonpublic data as defined in section 13.02.

(b) The commissioner may share or disseminate data classified as private or
nonpublic in this subdivision as follows:

(1) with other state or federal agencies, only to the extent necessary to verify
identity of, determine the eligibility of, or process applications for an eligible individual
participating in the Minnesota ABLE plan; and

(2) with a nongovernmental person, only to the extent necessary to carry out the
functions of the Minnesota ABLE plan, provided the commissioner has entered into
a data-sharing agreement with the person, as provided in section 13.05, subdivision 6,
prior to sharing data under this clause or a contract with that person that complies with
section 13.05, subdivision 11, as applicable.

Sec. 28.

[256Q.06] PLAN ACCOUNTS.

Subdivision 1.

Contributions to an account.

Any person may make contributions
to an ABLE account on behalf of a designated beneficiary. Contributions to an account
made by persons other than the account owner become the property of the account owner.
A person does not acquire an interest in an ABLE account by making contributions to
an account. Contributions to an account must be made in cash, by check, or by other
commercially acceptable means, as permitted by the United States Internal Revenue
Service and approved by the plan administrator in cooperation with the commissioner
and the board.

Subd. 2.

Contribution and account limitations.

Contributions to an ABLE
account are subject to the requirements of section 529A(b) of the Internal Revenue Code.
The total account balance of an ABLE account may not exceed the maximum account
balance limit imposed under section 136G.09, subdivision 8. The plan administrator must
reject any portion of a contribution to an account that exceeds the annual contribution limit
or that would cause the total account balance to exceed the maximum account balance
limit imposed under section 136G.09, subdivision 8.

Subd. 3.

Authority of account owner.

An account owner is the only person
entitled to:

(1) request distributions;

(2) request rollover distributions; or

(3) change the beneficiary of an ABLE account to a member of the family of the
current beneficiary, but only if the beneficiary to whom the ABLE account is transferred
is an eligible individual.

Subd. 4.

Effect of plan changes on participation agreement.

Amendments to
this chapter automatically amend the participation agreement. Any amendments to the
operating procedures and policies of the plan automatically amend the participation
agreement after adoption by the commissioner or the board.

Subd. 5.

Special account to hold plan assets in trust.

All assets of the plan,
including contributions to accounts, are held in trust for the exclusive benefit of account
owners. Assets must be held in a separate account in the state treasury to be known as
the Minnesota ABLE plan account or in accounts with the third-party provider selected
pursuant to section 256Q.05, subdivision 4. Plan assets are not subject to claims by creditors
of the state, are not part of the general fund, and are not subject to appropriation by the
state. Payments from the Minnesota ABLE plan account shall be made under this chapter.

Sec. 29.

[256Q.07] INVESTMENT OF ABLE ACCOUNTS.

Subdivision 1.

State Board of Investment to invest.

The State Board of Investment
shall invest the money deposited in accounts in the plan.

Subd. 2.

Permitted investments.

The board may invest the accounts in any
permitted investment under section 11A.24, except that the accounts may be invested
without limit in investment options from open-ended investment companies registered
under the federal Investment Company Act of 1940, United States Code, title 15, sections
80a-1 to 80a-64.

Subd. 3.

Contracting authority.

The board may contract with one or more third
parties for investment management, record keeping, or other services in connection with
investing the accounts. The board and commissioner may jointly contract with third-party
providers, if the commissioner and board determine that it is desirable to contract with the
same entity or entities for administration and investment management.

Subd. 4.

Fees.

The board may impose annual fees, as provided in section 256Q.05,
subdivision 3, on account owners to recover the cost of investment management and
related tasks for the plan. The board must use its best efforts to keep these fees as low
as possible, consistent with high quality investment management, so that the returns on
savings invested in the plan will be as high as possible.

Sec. 30.

[256Q.08] ACCOUNT DISTRIBUTIONS.

Subdivision 1.

Qualified distribution methods.

(a) Qualified distributions may
be made:

(1) directly to participating providers of goods and services that are qualified
disability expenses, if purchased for a beneficiary;

(2) in the form of a check payable to both the beneficiary and provider of goods or
services that are qualified disability expenses; or

(3) directly to the beneficiary, if the beneficiary has already paid qualified disability
expenses.

(b) Qualified distributions must be withdrawn proportionally from contributions and
earnings in an account owner's account on the date of distribution as provided in section
529A of the Internal Revenue Code.

Subd. 2.

Distributions upon death of a beneficiary.

Upon the death of a
beneficiary, the amount remaining in the beneficiary's account must be distributed pursuant
to section 529A(f) of the Internal Revenue Code.

Subd. 3.

Nonqualified distribution.

An account owner may request a nonqualified
distribution from an account at any time. Nonqualified distributions are based on the total
account balances in an account owner's account and must be withdrawn proportionally
from contributions and earnings as provided in section 529A of the Internal Revenue
Code. The earnings portion of a nonqualified distribution is subject to a federal additional
tax pursuant to section 529A of the Internal Revenue Code. For purposes of this
subdivision, "earnings portion" means the ratio of the earnings in the account to the total
account balance, immediately prior to the distribution, multiplied by the distribution.

Sec. 31.

Minnesota Statutes 2014, section 282.241, subdivision 1, is amended to read:

Subdivision 1.

Repurchase requirements.

The owner at the time of forfeiture, or
the owner's heirs, devisees, or representatives, or any person to whom the right to pay
taxes was given by statute, mortgage, or other agreement, may repurchase any parcel
of land claimed by the state to be forfeited to the state for taxes unless before the time
repurchase is made the parcel is sold under installment payments, or otherwise, by the
state as provided by law, or is under mineral prospecting permit or lease, or proceedings
have been commenced by the state or any of its political subdivisions or by the United
States to condemn the parcel of land. The parcel of land may be repurchased for the sum
of all delinquent taxes and assessments computed under section 282.251, together with
penalties, interest, and costs, that accrued or would have accrued if the parcel of land had
not forfeited to the state. Except for property which was homesteaded on the date of
forfeiture, repurchase is permitted during one year only from the date of forfeiture, and in
any case only after the adoption of a resolution by the board of county commissioners
determining that by repurchase undue hardship or injustice resulting from the forfeiture
will be corrected, or that permitting the repurchase will promote the use of the lands that
will best serve the public interest. If the county board has good cause to believe that
a repurchase installment payment plan for a particular parcel is unnecessary and not
in the public interest, the county board may require as a condition of repurchase that
the entire repurchase price be paid at the time of repurchase. A repurchase is subject
to any encumbrance allowed under section 256B.15 or 514.981, and to any easement,
lease, or other encumbrance granted by the state before the repurchase, and if the land is
located within a restricted area established by any county under Laws 1939, chapter 340,
the repurchase must not be permitted unless the resolution approving the repurchase is
adopted by the unanimous vote of the board of county commissioners.

The person seeking to repurchase under this section shall pay all maintenance costs
incurred by the county auditor during the time the property was tax-forfeited.

Sec. 32.

Minnesota Statutes 2014, section 514.73, is amended to read:

514.73 LIENS ASSIGNABLE.

Subdivision 1.

Assignment.

All liens given by this chapter or section 256B.15 are
assignable and may be asserted and enforced by the assignee, by the assignee's successor or
assigns, or by the personal representative of any holder thereof in case of the holder's death.

Subd. 2.

Redemption.

The redemption rights of all liens given by section 256B.15
or sections 514.980 to 514.985 are assignable together with all or a portion of any of the
claims secured by those liens and may be asserted and enforced by the assignee, or the
assignee's successor or assigns.

Subd. 3.

Lien payoff information.

The commissioner or a duly authorized agent of
the commissioner may determine and disclose the amount of the outstanding obligation to
be secured by a lien when a lien or redemption right is assigned.

Sec. 33.

Minnesota Statutes 2014, section 514.981, subdivision 2, is amended to read:

Subd. 2.

Attachment.

(a) A medical assistance lien attaches and becomes
enforceable against specific real property as of the date when the following conditions
are met:

(1) payments have been made by an agency for a medical assistance benefit;

(2) notice and an opportunity for a hearing have been provided under paragraph (b);

(3) a lien notice has been filed as provided in section 514.982;

(4) if the property is registered property, the lien notice has been memorialized on
the certificate of title of the property affected by the lien notice; and

(5) all restrictions against enforcement have ceased to apply.

(b) An agency may not file a medical assistance lien notice until the medical
assistance recipient or the recipient's legal representative has been sent, by certified or
registered mail, written notice of the agency's lien rights and there has been an opportunity
for a hearing under section 256.045. In addition, the agency may not file a lien notice
unless the agency determines as medically verified by the recipient's attending physician
that the medical assistance recipient cannot reasonably be expected to be discharged from
a medical institution and return home or the medical assistance recipient has resided in a
medical institution for six months or longer.

(c) An agency may not file a medical assistance lien notice against real property
while it is the home of the recipient's spouse.

(d) An agency may not file a medical assistance lien notice against real property that
was the homestead of the medical assistance recipient or the recipient's spouse when the
medical assistance recipient received medical institution services if any of the following
persons are lawfully residing in the property:

(1) a child of the medical assistance recipient if the child is under age 21 or is blind or
permanently and totally disabled according to the Supplemental Security Income criteria;

(2) a child of the medical assistance recipient if the child resided in the homestead
for at least two years immediately before the date the medical assistance recipient received
medical institution services, and the child provided care to the medical assistance recipient
that permitted the recipient to live without medical institution services; or

(3) a sibling of the medical assistance recipient if the sibling has an equity interest in
the property and has resided in the property for at least one year immediately before the
date the medical assistance recipient began receiving medical institution services.

(e) A medical assistance lien applies only to the specific real property described in
the lien notice.

Sec. 34.

Minnesota Statutes 2014, section 580.032, subdivision 1, is amended to read:

Subdivision 1.

Recording request for notice.

A person having a redeemable
interest in real property under section 580.23 or 580.24, may record a request for notice
of a mortgage foreclosure by advertisement with the county recorder or registrar of titles
of the county where the property is located. To be effective for purposes of this section,
a request for notice must be recorded as a separate and distinct document, except a
mechanic's lien statement recorded pursuant to section 514.08 or a lien recorded pursuant
to section 256B.15 or 514.981 also constitutes a request for notice if the mechanic's lien
statement includes a legal description of the real property and the name and mailing
address of the mechanic's lien claimant.

Sec. 35. INDIVIDUAL PROVIDERS OF DIRECT SUPPORT SERVICES.

The labor agreement between the state of Minnesota and the Service Employees
International Union Healthcare Minnesota, submitted to the Legislative Coordinating
Commission on March 2, 2015, is ratified.

EFFECTIVE DATE.

This section is effective July 1, 2015.

Sec. 36. RATE INCREASE FOR DIRECT SUPPORT SERVICES PROVIDERS
WORKFORCE NEGOTIATIONS.

(a) If the labor agreement between the state of Minnesota and the Service Employees
International Union Healthcare Minnesota under Minnesota Statutes, section 179A.54, is
approved pursuant to Minnesota Statutes, sections 3.855 and 179A.22, the commissioner
of human services shall increase reimbursement rates, individual budgets, grants, or
allocations by 1.53 percent for services provided on or after July 1, 2015, and by an
additional 0.2 percent for services provided on or after July 1, 2016, to implement the
minimum hourly wage and paid time off provisions of that agreement.

(b) The rate changes described in this section apply to direct support services
provided through a covered program, as defined in Minnesota Statutes, section 256B.0711,
subdivision 1.

Sec. 37. DEVELOPMENT OF LONG-TERM CARE; LIFE STAGE PLANNING
INSURANCE PRODUCT.

The commissioner of human services, in consultation with members of the Own
Your Future Advisory Council, the commissioner of commerce, and other stakeholders,
shall conduct research on the feasibility of creating a life stage planning insurance
product that merges term life insurance with long-term care insurance coverage. The
commissioner shall:

(1) conduct project evaluation research with consumers;

(2) conduct an actuarial analysis to evaluate likely levels for insurer pricing for the
product;

(3) meet with insurance carriers to determine interest in pursuing the product;

(4) identify specific state laws and regulations that may need to be amended to
make the product available; and

(5) develop one or more pilot programs to market test the product.

Sec. 38. HOME AND COMMUNITY-BASED SERVICES INCENTIVE POOL.

The commissioner of human services shall develop an initiative to provide
incentives for innovation in achieving integrated competitive employment, living in
the most integrated setting, and other outcomes determined by the commissioner. The
commissioner shall seek requests for proposals and shall contract with one or more entities
to provide incentive payments for meeting identified outcomes. The initial requests for
proposals must be issued by October 1, 2015. The commissioner of human services shall
submit a report by January 31, 2017, to the chairs and ranking minority members of the
legislative committees with jurisdiction over health and human services finance on the
outcomes of these projects. The report must include:

(1) the request for proposals funds;

(2) the amount of incentive payments authorized;

(3) the outcomes achieved by each project; and

(4) recommendations for further action based on the outcomes achieved.

Sec. 39. DIRECTION TO COMMISSIONER; REPORTS REQUIRED.

The commissioner of human services shall develop and submit reports to the chairs
and ranking minority members of the house of representatives and senate committees and
divisions with jurisdiction over health and human services policy and finance on the
implementation of Minnesota Statutes, sections 256B.0916, subdivisions 2, 11, and 12,
and 256B.49, subdivisions 26 and 27. The commissioner shall submit two reports, one by
February 15, 2018, and the second by February 15, 2019.

Sec. 40. DIRECTION TO COMMISSIONER; DAY TRAINING AND
HABILITATION.

For service agreements renewed or entered into on or after January 1, 2016, in
determining payments for day services under Minnesota Statutes, section 256B.4914,
subdivision 7, the commissioner of human services shall calculate the transportation
portion of the payment for day training and habilitation programs using payments factors
found in Minnesota Statutes, section 256B.4914, subdivision 7, clauses (16) and (17).

ARTICLE 7

HEALTH DEPARTMENT

Section 1.

Minnesota Statutes 2014, section 13.3806, subdivision 4, is amended to read:

Subd. 4.

Vital statistics.

(a) Parents' Social Security number; birth record.
Parents' Social Security numbers and certain contact information provided for a child's
birth record are classified under section 144.215, subdivision 4, or 4a.

(b) Foundling registration. The report of the finding of an infant of unknown
parentage is classified under section 144.216, subdivision 2.

(c) New record of birth. In circumstances in which a new record of birth may
be issued under section 144.218, the original record of birth is classified as provided
in that section.

(d) Vital records. Physical access to vital records is governed by section 144.225,
subdivision 1.

(e) Birth record of child of unmarried parents. Access to the birth record of a
child whose parents were not married to each other when the child was conceived or born
is governed by sections 144.225, subdivisions 2 and 4, and 257.73.

(f) Health data for birth registration. Health data collected for birth registration or
fetal death reporting are classified under section 144.225, subdivision 2a.

(g) Birth record; sharing. Sharing of birth record data and data prepared under
section 257.75, is governed by section 144.225, subdivision 2b.

(h) Group purchaser identity for birth registration. Classification of and access
to the identity of a group purchaser collected in association with birth registration is
governed by section 144.225, subdivision 6.

Sec. 2.

[15.445] RETAIL FOOD ESTABLISHMENT FEES.

Subdivision 1.

Fees.

The fees in this section are required for food and beverage
service establishments licensed under chapter 157. Food and beverage service
establishments must pay the applicable fee under subdivision 2, paragraph (a), (b), (c),
or (d), and all applicable fees under subdivision 4. Temporary food establishments and
special events must pay the applicable fee under subdivision 3.

Subd. 2.

Permanent food establishments.

(a) The Category 1 establishment
license fee is $210 annually. "Category 1 establishment" means an establishment that
does one or more of the following:

(1) sells only prepackaged nonpotentially hazardous foods as defined in Minnesota
Rules, chapter 4626;

(2) provides cleaning for eating, drinking, or cooking utensils, when the only food
served is prepared off-site; or

(3) operates a childcare facility licensed under section 245A.03 and Minnesota
Rules, chapter 9503.

(b) The Category 2 establishment license fee is $270 annually. "Category 2
establishment" means an establishment that is not a Category 1 establishment and is either:

(1) a food establishment where the method of food preparation meets the definition
of a low-risk establishment in section 157.20; or

(2) an elementary or secondary school as defined in section 120A.05.

(c) The Category 3 establishment license fee is $460 annually. "Category 3
establishment" means an establishment that is not a Category 1 or 2 establishment and
the method of food preparation meets the definition of a medium-risk establishment in
section 157.20.

(d) The Category 4 establishment license fee is $690 annually. "Category 4
establishment" means an establishment that is not a Category 1, 2, or 3 establishment
and is either:

(1) a food establishment where the method of food preparation meets the definition
of a high-risk establishment in section 157.20; or

(2) an establishment where 500 or more meals per day are prepared at one location
and served at one or more separate locations.

Subd. 3.

Temporary food establishments and special events.

(a) The special
event food stand license fee is $50 annually. Special event food stand is where food is
prepared or served in conjunction with celebrations, county fairs, or special events from a
special event food stand as defined in section 157.15.

(b) The temporary food and beverage service license fee is $210 annually. A
temporary food and beverage service includes food carts, mobile food units, seasonal
temporary food stands, retail food vehicles, portable structures, and seasonal permanent
food stands.

Subd. 4.

Additional applicable fees.

(a) The individual private sewer or individual
private water license fee is $60 annually. Individual private water is a water supply other
than a community public water supply as covered in Minnesota Rules, chapter 4720.
Individual private sewer is an individual sewage treatment system which uses subsurface
treatment and disposal.

(b) The additional food or beverage service license fee is $165 annually. Additional
food or beverage service is a location at a food service establishment, other than the
primary food preparation and service area, used to prepare or serve food or beverages to
the public. Additional food service does not apply to school concession stands.

(c) The specialized processing license fee is $400 annually. Specialized processing
is a business that performs one or more specialized processes that require a HACCP as
required in Minnesota Rules, chapter 4626.

Sec. 3.

Minnesota Statutes 2014, section 16A.724, subdivision 2, is amended to read:

Subd. 2.

Transfers.

(a) Notwithstanding section 295.581, to the extent available
resources in the health care access fund exceed expenditures in that fund, effective for
the biennium beginning July 1, 2007, the commissioner of management and budget shall
transfer the excess funds from the health care access fund to the general fund on June 30
of each year, provided that the amount transferred in any fiscal biennium shall not exceed
$96,000,000. The purpose of this transfer is to meet the rate increase required under Laws
2003, First Special Session chapter 14, article 13C, section 2, subdivision 6.

(b) For fiscal years 2006 to 2011, MinnesotaCare shall be a forecasted program, and,
if necessary, the commissioner shall reduce these transfers from the health care access
fund to the general fund to meet annual MinnesotaCare expenditures or, if necessary,
transfer sufficient funds from the general fund to the health care access fund to meet
annual MinnesotaCare expenditures.

(c) Notwithstanding section 295.581, to the extent available resources in the health
care access fund exceed expenditures in that fund after the transfer required in paragraph
(a), effective for the biennium beginning July 1, 2013, the commissioner of management
and budget shall transfer $1,000,000 each fiscal year from the health access fund to
the medical education and research costs fund established under section 62J.692, for
distribution under section 62J.692, subdivision 4, paragraph (c).

Sec. 4.

Minnesota Statutes 2014, section 62J.498, is amended to read:

62J.498 HEALTH INFORMATION EXCHANGE.

Subdivision 1.

Definitions.

The following definitions apply to sections 62J.498 to
62J.4982:

(a) "Clinical data repository" means a real time database that consolidates data from
a variety of clinical sources to present a unified view of a single patient and is used by a
state-certified health information exchange service provider to enable health information
exchange among health care providers that are not related health care entities as defined in
section 144.291, subdivision 2, paragraph (j). This does not include clinical data that are
submitted to the commissioner for public health purposes required or permitted by law,
including any rules adopted by the commissioner.

(a) (b) "Clinical transaction" means any meaningful use transaction or other health
information exchange transaction that is not covered by section 62J.536.

(b) (c) "Commissioner" means the commissioner of health.

(c) "Direct health information exchange" means the electronic transmission of
health-related information through a direct connection between the electronic health
record systems of health care providers without the use of a health data intermediary.

(d) "Health care provider" or "provider" means a health care provider or provider as
defined in section 62J.03, subdivision 8.

(e) "Health data intermediary" means an entity that provides the infrastructure
technical capabilities or related products and services to connect computer systems or
other electronic devices used by health care providers, laboratories, pharmacies, health
plans, third-party administrators, or pharmacy benefit managers to facilitate the secure
transmission of health information, including enable health information exchange among
health care providers that are not related health care entities as defined in section 144.291,
subdivision 2, paragraph (j). This includes but is not limited to: health information service
providers (HISP), electronic health record vendors, and pharmaceutical electronic data
intermediaries as defined in section 62J.495. This does not include health care providers
engaged in direct health information exchange.

(f) "Health information exchange" means the electronic transmission of health-related
information between organizations according to nationally recognized standards.

(g) "Health information exchange service provider" means a health data intermediary
or health information organization that has been issued a certificate of authority by the
commissioner under section 62J.4981.

(h) "Health information organization" means an organization that oversees, governs,
and facilitates the health information exchange of health-related information among
organizations according to nationally recognized standards health care providers that are
not related health care entities as defined in section 144.291, subdivision 2, paragraph (j),
to improve coordination of patient care and the efficiency of health care delivery.

(i) "HITECH Act" means the Health Information Technology for Economic and
Clinical Health Act as defined in section 62J.495.

(j) "Major participating entity" means:

(1) a participating entity that receives compensation for services that is greater
than 30 percent of the health information organization's gross annual revenues from the
health information exchange service provider;

(2) a participating entity providing administrative, financial, or management services
to the health information organization, if the total payment for all services provided by the
participating entity exceeds three percent of the gross revenue of the health information
organization; and

(3) a participating entity that nominates or appoints 30 percent or more of the board
of directors or equivalent governing body of the health information organization.

(k) "Master patient index" means an electronic database that holds unique identifiers
of patients registered at a care facility and is used by a state-certified health information
exchange service provider to enable health information exchange among health care
providers that are not related health care entities as defined in section 144.291, subdivision
2, paragraph (j). This does not include data that are submitted to the commissioner for
public health purposes required or permitted by law, including any rules adopted by the
commissioner.

(k) (l) "Meaningful use" means use of certified electronic health record technology
that includes e-prescribing, and is connected in a manner that provides for the electronic
exchange of health information and used for the submission of clinical quality measures
to improve quality, safety, and efficiency and reduce health disparities; engage patients
and families; improve care coordination and population and public health; and maintain
privacy and security of patient health information as established by the Center for
Medicare and Medicaid Services and the Minnesota Department of Human Services
pursuant to sections 4101, 4102, and 4201 of the HITECH Act.

(l) (m) "Meaningful use transaction" means an electronic transaction that a health
care provider must exchange to receive Medicare or Medicaid incentives or avoid
Medicare penalties pursuant to sections 4101, 4102, and 4201 of the HITECH Act.

(m) (n) "Participating entity" means any of the following persons, health care
providers, companies, or other organizations with which a health information organization
or health data intermediary has contracts or other agreements for the provision of health
information exchange service providers services:

(1) a health care facility licensed under sections 144.50 to 144.56, a nursing home
licensed under sections 144A.02 to 144A.10, and any other health care facility otherwise
licensed under the laws of this state or registered with the commissioner;

(2) a health care provider, and any other health care professional otherwise licensed
under the laws of this state or registered with the commissioner;

(3) a group, professional corporation, or other organization that provides the
services of individuals or entities identified in clause (2), including but not limited to a
medical clinic, a medical group, a home health care agency, an urgent care center, and
an emergent care center;

(4) a health plan as defined in section 62A.011, subdivision 3; and

(5) a state agency as defined in section 13.02, subdivision 17.

(n) (o) "Reciprocal agreement" means an arrangement in which two or more health
information exchange service providers agree to share in-kind services and resources to
allow for the pass-through of meaningful use clinical transactions.

(o) (p) "State-certified health data intermediary" means a health data intermediary
that: has been issued a certificate of authority to operate in Minnesota.

(1) provides a subset of the meaningful use transaction capabilities necessary for
hospitals and providers to achieve meaningful use of electronic health records;

(2) is not exclusively engaged in the exchange of meaningful use transactions
covered by section 62J.536; and

(3) has been issued a certificate of authority to operate in Minnesota.

(p) (q) "State-certified health information organization" means a nonprofit health
information organization that provides transaction capabilities necessary to fully support
clinical transactions required for meaningful use of electronic health records that has been
issued a certificate of authority to operate in Minnesota.

Subd. 2.

Health information exchange oversight.

(a) The commissioner shall
protect the public interest on matters pertaining to health information exchange. The
commissioner shall:

(1) review and act on applications from health data intermediaries and health
information organizations for certificates of authority to operate in Minnesota;

(2) provide ongoing monitoring to ensure compliance with criteria established under
sections 62J.498 to 62J.4982;

(3) respond to public complaints related to health information exchange services;

(4) take enforcement actions as necessary, including the imposition of fines,
suspension, or revocation of certificates of authority as outlined in section 62J.4982;

(5) provide a biennial report on the status of health information exchange services
that includes but is not limited to:

(i) recommendations on actions necessary to ensure that health information exchange
services are adequate to meet the needs of Minnesota citizens and providers statewide;

(ii) recommendations on enforcement actions to ensure that health information
exchange service providers act in the public interest without causing disruption in health
information exchange services;

(iii) recommendations on updates to criteria for obtaining certificates of authority
under this section; and

(iv) recommendations on standard operating procedures for health information
exchange, including but not limited to the management of consumer preferences; and

(6) other duties necessary to protect the public interest.

(b) As part of the application review process for certification under paragraph (a),
prior to issuing a certificate of authority, the commissioner shall:

(1) hold public hearings that provide an adequate opportunity for participating
entities and consumers to provide feedback and recommendations on the application under
consideration. The commissioner shall make all portions of the application classified as
public data available to the public for at least ten days in advance of the hearing while
an application is under consideration. At the request of the commissioner, the applicant
shall participate in the a public hearing by presenting an overview of their application and
responding to questions from interested parties; and

(2) make available all feedback and recommendations gathered at the hearing
available to the public prior to issuing a certificate of authority; and

(3) consult with hospitals, physicians, and other professionals eligible to receive
meaningful use incentive payments or subject to penalties as established in the HITECH
Act, and their respective statewide associations, providers prior to issuing a certificate of
authority.

(c) When the commissioner is actively considering a suspension or revocation of a
certificate of authority as described in section 62J.4982, subdivision 3, all investigatory
data that are collected, created, or maintained related to the suspension or revocation
are classified as confidential data on individuals and as protected nonpublic data in the
case of data not on individuals.

(d) The commissioner may disclose data classified as protected nonpublic or
confidential under paragraph (c) if disclosing the data will protect the health or safety of
patients.

(e) After the commissioner makes a final determination regarding a suspension or
revocation of a certificate of authority, all minutes, orders for hearing, findings of fact,
conclusions of law, and the specification of the final disciplinary action, are classified
as public data.

Sec. 5.

Minnesota Statutes 2014, section 62J.4981, is amended to read:

62J.4981 CERTIFICATE OF AUTHORITY TO PROVIDE HEALTH
INFORMATION EXCHANGE SERVICES.

Subdivision 1.

Authority to require organizations to apply.

The commissioner
shall require an entity providing health information exchange services a health data
intermediary or a health information organization to apply for a certificate of authority
under this section. An applicant may continue to operate until the commissioner acts
on the application. If the application is denied, the applicant is considered a health
information organization exchange service provider whose certificate of authority has
been revoked under section 62J.4982, subdivision 2, paragraph (d).

Subd. 2.

Certificate of authority for health data intermediaries.

(a) A health
data intermediary that provides health information exchange services for the transmission
of one or more clinical transactions necessary for hospitals, providers, or eligible
professionals to achieve meaningful use must be registered with certified by the state and
comply with requirements established in this section.

(b) Notwithstanding any law to the contrary, any corporation organized to do so
may apply to the commissioner for a certificate of authority to establish and operate as
a health data intermediary in compliance with this section. No person shall establish or
operate a health data intermediary in this state, nor sell or offer to sell, or solicit offers
to purchase or receive advance or periodic consideration in conjunction with a health
data intermediary contract unless the organization has a certificate of authority or has an
application under active consideration under this section.

(c) In issuing the certificate of authority, the commissioner shall determine whether
the applicant for the certificate of authority has demonstrated that the applicant meets
the following minimum criteria:

(1) interoperate with at least one state-certified health information organization;

(2) provide an option for Minnesota entities to connect to their services through at
least one state-certified health information organization;

(3) have a record locator service as defined in section 144.291, subdivision 2,
paragraph (i), that is compliant with the requirements of section 144.293, subdivision 8,
when conducting meaningful use transactions; and

(4) (1) hold reciprocal agreements with at least one state-certified health information
organization to enable access to record locator services to find patient data, and for the
transmission and receipt of meaningful use clinical transactions consistent with the
format and content required by national standards established by Centers for Medicare
and Medicaid Services. Reciprocal agreements must meet the requirements established in
subdivision 5.; and

(2) participate in statewide shared health information exchange services as defined
by the commissioner to support interoperability between state-certified health information
organizations and state-certified health data intermediaries.

Subd. 3.

Certificate of authority for health information organizations.

(a) A health information organization that provides all electronic capabilities for the
transmission of clinical transactions necessary for meaningful use of electronic health
records must obtain a certificate of authority from the commissioner and demonstrate
compliance with the criteria in paragraph (c).

(b) Notwithstanding any law to the contrary, a nonprofit corporation organized to
do so an organization may apply for a certificate of authority to establish and operate a
health information organization under this section. No person shall establish or operate a
health information organization in this state, nor sell or offer to sell, or solicit offers
to purchase or receive advance or periodic consideration in conjunction with a health
information organization or health information contract unless the organization has a
certificate of authority under this section.

(c) In issuing the certificate of authority, the commissioner shall determine whether
the applicant for the certificate of authority has demonstrated that the applicant meets
the following minimum criteria:

(1) the entity is a legally established, nonprofit organization;

(2) appropriate insurance, including liability insurance, for the operation of the
health information organization is in place and sufficient to protect the interest of the
public and participating entities;

(3) strategic and operational plans clearly address governance, technical
infrastructure, legal and policy issues, finance, and business operations in regard to how
the organization will expand technical capacity of the health information organization
to support providers in achieving meaningful use of electronic health records health
information exchange goals over time;

(4) the entity addresses the parameters to be used with participating entities and
other health information organizations exchange service providers for meaningful use
clinical transactions, compliance with Minnesota law, and interstate health information
exchange in trust agreements;

(5) the entity's board of directors or equivalent governing body is composed of
members that broadly represent the health information organization's participating entities
and consumers;

(6) the entity maintains a professional staff responsible to the board of directors or
equivalent governing body with the capacity to ensure accountability to the organization's
mission;

(7) the organization is compliant with criteria established under the Health
Information Exchange Accreditation Program of the Electronic Healthcare Network
Accreditation Commission (EHNAC) or equivalent criteria established national
certification and accreditation programs designated by the commissioner;

(8) the entity maintains a the capability to query for patient information based on
national standards. The query capability may utilize a master patient index, clinical
data repository, or record locator service as defined in section 144.291, subdivision 2,
paragraph (i), that is. The entity must be compliant with the requirements of section
144.293, subdivision 8, when conducting meaningful use clinical transactions;

(9) the organization demonstrates interoperability with all other state-certified health
information organizations using nationally recognized standards;

(10) the organization demonstrates compliance with all privacy and security
requirements required by state and federal law; and

(11) the organization uses financial policies and procedures consistent with generally
accepted accounting principles and has an independent audit of the organization's
financials on an annual basis.

(d) Health information organizations that have obtained a certificate of authority must:

(1) meet the requirements established for connecting to the Nationwide Health
Information Network (NHIN) within the federally mandated timeline or within a time
frame established by the commissioner and published in the State Register. If the state
timeline for implementation varies from the federal timeline, the State Register notice
shall include an explanation for the variation National eHealth Exchange;

(2) annually submit strategic and operational plans for review by the commissioner
that address:

(i) increasing adoption rates to include a sufficient number of participating entities to
achieve financial sustainability; and

(ii) (i) progress in achieving objectives included in previously submitted strategic
and operational plans across the following domains: business and technical operations,
technical infrastructure, legal and policy issues, finance, and organizational governance;

(3) develop and maintain a business plan that addresses:

(i) (ii) plans for ensuring the necessary capacity to support meaningful use clinical
transactions;

(ii) (iii) approach for attaining financial sustainability, including public and private
financing strategies, and rate structures;

(iii) (iv) rates of adoption, utilization, and transaction volume, and mechanisms to
support health information exchange; and

(iv) (v) an explanation of methods employed to address the needs of community
clinics, critical access hospitals, and free clinics in accessing health information exchange
services;

(4) annually submit a rate plan to the commissioner outlining fee structures for health
information exchange services for approval by the commissioner. The commissioner
shall approve the rate plan if it:

(i) distributes costs equitably among users of health information services;

(ii) provides predictable costs for participating entities;

(iii) covers all costs associated with conducting the full range of meaningful use
clinical transactions, including access to health information retrieved through other
state-certified health information exchange service providers; and

(iv) provides for a predictable revenue stream for the health information organization
and generates sufficient resources to maintain operating costs and develop technical
infrastructure necessary to serve the public interest;

(5) (3) enter into reciprocal agreements with all other state-certified health
information organizations and state-certified health data intermediaries to enable access
to record locator services to find patient data, and for the transmission and receipt of
meaningful use clinical transactions consistent with the format and content required by
national standards established by Centers for Medicare and Medicaid Services. Reciprocal
agreements must meet the requirements in subdivision 5; and

(4) participate in statewide shared health information exchange services as defined
by the commissioner to support interoperability between state-certified health information
organizations and state-certified health data intermediaries; and

(6) (5) comply with additional requirements for the certification or recertification of
health information organizations that may be established by the commissioner.

Subd. 4.

Application for certificate of authority for health information exchange
service providers.

(a) Each application for a certificate of authority shall be in a form
prescribed by the commissioner and verified by an officer or authorized representative
of the applicant. Each application shall include the following in addition to information
described in the criteria in subdivisions 2 and 3:

(1) for health information organizations only, a copy of the basic organizational
document, if any, of the applicant and of each major participating entity, such as the
articles of incorporation, or other applicable documents, and all amendments to it;

(2) for health information organizations only, a list of the names, addresses, and
official positions of the following:

(i) all members of the board of directors or equivalent governing body, and the
principal officers and, if applicable, shareholders of the applicant organization; and

(ii) all members of the board of directors or equivalent governing body, and the
principal officers of each major participating entity and, if applicable, each shareholder
beneficially owning more than ten percent of any voting stock of the major participating
entity;

(3) for health information organizations only, the name and address of each
participating entity and the agreed-upon duration of each contract or agreement if
applicable;

(4) a copy of each standard agreement or contract intended to bind the participating
entities and the health information organization exchange service provider. Contractual
provisions shall be consistent with the purposes of this section, in regard to the services to
be performed under the standard agreement or contract, the manner in which payment for
services is determined, the nature and extent of responsibilities to be retained by the health
information organization, and contractual termination provisions;

(5) a copy of each contract intended to bind major participating entities and the
health information organization. Contract information filed with the commissioner under
this section shall be nonpublic as defined in section 13.02, subdivision 9;

(6) (5) a statement generally describing the health information organization exchange
service provider, its health information exchange contracts, facilities, and personnel,
including a statement describing the manner in which the applicant proposes to provide
participants with comprehensive health information exchange services;

(7) financial statements showing the applicant's assets, liabilities, and sources
of financial support, including a copy of the applicant's most recent certified financial
statement;

(8) strategic and operational plans that specifically address how the organization
will expand technical capacity of the health information organization to support providers
in achieving meaningful use of electronic health records over time, a description of
the proposed method of marketing the services, a schedule of proposed charges, and a
financial plan that includes a three-year projection of the expenses and income and other
sources of future capital;

(9) (6) a statement reasonably describing the geographic area or areas to be served
and the type or types of participants to be served;

(10) (7) a description of the complaint procedures to be used as required under
this section;

(11) (8) a description of the mechanism by which participating entities will have an
opportunity to participate in matters of policy and operation;

(12) (9) a copy of any pertinent agreements between the health information
organization and insurers, including liability insurers, demonstrating coverage is in place;

(13) (10) a copy of the conflict of interest policy that applies to all members of the
board of directors or equivalent governing body and the principal officers of the health
information organization; and

(14) (11) other information as the commissioner may reasonably require to be
provided.

(b) Within 30 45 days after the receipt of the application for a certificate of authority,
the commissioner shall determine whether or not the application submitted meets the
requirements for completion in paragraph (a), and notify the applicant of any further
information required for the application to be processed.

(c) Within 90 days after the receipt of a complete application for a certificate of
authority, the commissioner shall issue a certificate of authority to the applicant if the
commissioner determines that the applicant meets the minimum criteria requirements
of subdivision 2 for health data intermediaries or subdivision 3 for health information
organizations. If the commissioner determines that the applicant is not qualified, the
commissioner shall notify the applicant and specify the reasons for disqualification.

(d) Upon being granted a certificate of authority to operate as a state-certified health
information organization or state-certified health data intermediary, the organization must
operate in compliance with the provisions of this section. Noncompliance may result in
the imposition of a fine or the suspension or revocation of the certificate of authority
according to section 62J.4982.

Subd. 5.

Reciprocal agreements between health information exchange entities.

(a) Reciprocal agreements between two health information organizations or between a
health information organization and a health data intermediary must include a fair and
equitable model for charges between the entities that:

(1) does not impede the secure transmission of clinical transactions necessary to
achieve meaningful use;

(2) does not charge a fee for the exchange of meaningful use transactions transmitted
according to nationally recognized standards where no additional value-added service
is rendered to the sending or receiving health information organization or health data
intermediary either directly or on behalf of the client;

(3) is consistent with fair market value and proportionately reflects the value-added
services accessed as a result of the agreement; and

(4) prevents health care stakeholders from being charged multiple times for the
same service.

(b) Reciprocal agreements must include comparable quality of service standards that
ensure equitable levels of services.

(c) Reciprocal agreements are subject to review and approval by the commissioner.

(d) Nothing in this section precludes a state-certified health information organization
or state-certified health data intermediary from entering into contractual agreements for
the provision of value-added services beyond meaningful use transactions.

(e) The commissioner of human services or health, when providing access to data or
services through a certified health information organization, must offer the same data or
services directly through any certified health information organization at the same pricing,
if the health information organization pays for all connection costs to the state data or
service. For all external connectivity to the respective agencies through existing or future
information exchange implementations, the respective agency shall establish the required
connectivity methods as well as protocol standards to be utilized.

Subd. 6.

State participation in health information exchange.

A state agency that
connects to a health information exchange service provider for the purpose of exchanging
meaningful use transactions must ensure that the contracted health information exchange
service provider has reciprocal agreements in place as required by this section. The
reciprocal agreements must provide equal access to information supplied by the agency as
necessary for meaningful use by the participating entities of the other health information
service providers.

Sec. 6.

Minnesota Statutes 2014, section 62J.4982, subdivision 4, is amended to read:

Subd. 4.

Coordination.

(a) The commissioner shall, to the extent possible, seek
the advice of the Minnesota e-Health Advisory Committee, in the review and update of
criteria for the certification and recertification of health information exchange service
providers when implementing sections 62J.498 to 62J.4982.

(b) By January 1, 2011, the commissioner shall report to the governor and the chairs
of the senate and house of representatives committees having jurisdiction over health
information policy issues on the status of health information exchange in Minnesota, and
provide recommendations on further action necessary to facilitate the secure electronic
movement of health information among health providers that will enable Minnesota
providers and hospitals to meet meaningful use exchange requirements.

Sec. 7.

Minnesota Statutes 2014, section 62J.4982, subdivision 5, is amended to read:

Subd. 5.

Fees and monetary penalties.

(a) The commissioner shall assess fees
on every health information exchange service provider subject to sections 62J.4981 and
62J.4982 as follows:

(1) filing an application for certificate of authority to operate as a health information
organization, $10,500 $7,000;

(2) filing an application for certificate of authority to operate as a health data
intermediary, $7,000;

(3) annual health information organization certificate fee, $14,000 $7,000; and

(4) annual health data intermediary certificate fee, $7,000; and

(5) fees for other filings, as specified by rule.

(b) Fees collected under this section shall be deposited in the state treasury and
credited to the state government special revenue fund.

(b) (c) Administrative monetary penalties imposed under this subdivision shall
be credited to an account in the special revenue fund and are appropriated to the
commissioner for the purposes of sections 62J.498 to 62J.4982.

Sec. 8.

Minnesota Statutes 2014, section 62J.692, subdivision 4, is amended to read:

Subd. 4.

Distribution of funds.

(a) The commissioner shall annually distribute the
available medical education funds to all qualifying applicants based on a public program
volume factor, which is determined by the total volume of public program revenue
received by each training site as a percentage of all public program revenue received by
all training sites in the fund pool.

Public program revenue for the distribution formula includes revenue from medical
assistance, prepaid medical assistance, general assistance medical care, and prepaid
general assistance medical care. Training sites that receive no public program revenue
are ineligible for funds available under this subdivision. For purposes of determining
training-site level grants to be distributed under this paragraph, total statewide average
costs per trainee for medical residents is based on audited clinical training costs per trainee
in primary care clinical medical education programs for medical residents. Total statewide
average costs per trainee for dental residents is based on audited clinical training costs
per trainee in clinical medical education programs for dental students. Total statewide
average costs per trainee for pharmacy residents is based on audited clinical training
costs per trainee in clinical medical education programs for pharmacy students. Training
sites whose training site level grant is less than $5,000, based on the formula described
in this paragraph, or that train fewer than 0.1 FTE eligible trainees, are ineligible for
funds available under this subdivision. No training sites shall receive a grant per FTE
trainee that is in excess of the 95th percentile grant per FTE across all eligible training
sites; grants in excess of this amount will be redistributed to other eligible sites based on
the formula described in this paragraph.

(b) For funds distributed in fiscal years 2014 and 2015, the distribution formula shall
include a supplemental public program volume factor, which is determined by providing
a supplemental payment to training sites whose public program revenue accounted for
at least 0.98 percent of the total public program revenue received by all eligible training
sites. The supplemental public program volume factor shall be equal to ten percent of each
training site's grant for funds distributed in fiscal year 2014 and for funds distributed in
fiscal year 2015. Grants to training sites whose public program revenue accounted for less
than 0.98 percent of the total public program revenue received by all eligible training sites
shall be reduced by an amount equal to the total value of the supplemental payment. For
fiscal year 2016 and beyond, the distribution of funds shall be based solely on the public
program volume factor as described in paragraph (a).

(c) Of available medical education funds, $1,000,000 shall be distributed each
year for grants to family medicine residency programs located outside the seven-county
metropolitan area, as defined in section 473.121, subdivision 4, focused on eduction and
training of family medicine physicians to serve communities outside the metropolitan area.
To be eligible for a grant under this paragraph, a family medicine residency program must
demonstrate that over the most recent three calendar years, at least 25 percent of its residents
practice in Minnesota communities outside the metropolitan area. Grant funds must be
allocated proportionally based on the number of residents per eligible residency program.

(d) Funds distributed shall not be used to displace current funding appropriations
from federal or state sources.

(e) (d) Funds shall be distributed to the sponsoring institutions indicating the amount
to be distributed to each of the sponsor's clinical medical education programs based on the
criteria in this subdivision and in accordance with the commissioner's approval letter. Each
clinical medical education program must distribute funds allocated under paragraphs (a)
and (b) to the training sites as specified in the commissioner's approval letter. Sponsoring
institutions, which are accredited through an organization recognized by the Department
of Education or the Centers for Medicare and Medicaid Services, may contract directly
with training sites to provide clinical training. To ensure the quality of clinical training,
those accredited sponsoring institutions must:

(1) develop contracts specifying the terms, expectations, and outcomes of the clinical
training conducted at sites; and

(2) take necessary action if the contract requirements are not met. Action may include
the withholding of payments under this section or the removal of students from the site.

(f) (e) Use of funds is limited to expenses related to clinical training program costs
for eligible programs.

(g) (f) Any funds not distributed in accordance with the commissioner's approval
letter must be returned to the medical education and research fund within 30 days of
receiving notice from the commissioner. The commissioner shall distribute returned funds
to the appropriate training sites in accordance with the commissioner's approval letter.

(h) (g) A maximum of $150,000 of the funds dedicated to the commissioner
under section 297F.10, subdivision 1, clause (2), may be used by the commissioner for
administrative expenses associated with implementing this section.

Sec. 9.

Minnesota Statutes 2014, section 62U.04, subdivision 11, is amended to read:

Subd. 11.

Restricted uses of the all-payer claims data.

(a) Notwithstanding
subdivision 4, paragraph (b), and subdivision 5, paragraph (b), the commissioner or the
commissioner's designee shall only use the data submitted under subdivisions 4 and 5 for
the following purposes:

(1) to evaluate the performance of the health care home program as authorized under
sections 256B.0751, subdivision 6, and 256B.0752, subdivision 2;

(2) to study, in collaboration with the reducing avoidable readmissions effectively
(RARE) campaign, hospital readmission trends and rates;

(3) to analyze variations in health care costs, quality, utilization, and illness burden
based on geographical areas or populations; and

(4) to evaluate the state innovation model (SIM) testing grant received by the
Departments of Health and Human Services, including the analysis of health care cost,
quality, and utilization baseline and trend information for targeted populations and
communities.; and

(5) to compile one or more public use files of summary data or tables that must:

(i) be available to the public for no or minimal cost by March 1, 2016, and available
by Web-based electronic data download by June 30, 2019;

(ii) not identify individual patients, payers, or providers;

(iii) be updated by the commissioner, at least annually, with the most current data
available;

(iv) contain clear and conspicuous explanations of the characteristics of the data,
such as the dates of the data contained in the files, the absence of costs of care for uninsured
patients or nonresidents, and other disclaimers that provide appropriate context; and

(v) not lead to the collection of additional data elements beyond what is authorized
under this section as of June 30, 2015.

(b) The commissioner may publish the results of the authorized uses identified
in paragraph (a) so long as the data released publicly do not contain information or
descriptions in which the identity of individual hospitals, clinics, or other providers may
be discerned.

(c) Nothing in this subdivision shall be construed to prohibit the commissioner from
using the data collected under subdivision 4 to complete the state-based risk adjustment
system assessment due to the legislature on October 1, 2015.

(d) The commissioner or the commissioner's designee may use the data submitted
under subdivisions 4 and 5 for the purpose described in paragraph (a), clause (3), until
July 1, 2016.

(e) The commissioner shall consult with the all-payer claims database work group
established under subdivision 12 regarding the technical considerations necessary to create
the public use files of summary data described in paragraph (a), clause (5).

Sec. 10.

Minnesota Statutes 2014, section 144.1501, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) For purposes of this section, the following definitions
apply.

(b) "Advanced dental therapist" means an individual who is licensed as a dental
therapist under section 150A.06, and who is certified as an advanced dental therapist
under section 150A.106.

(c) "Dental therapist" means an individual who is licensed as a dental therapist
under section 150A.06.

(b) (d) "Dentist" means an individual who is licensed to practice dentistry.

(c) (e) "Designated rural area" means a statutory and home rule charter city or
township that is:

(1) outside the seven-county metropolitan area as defined in section 473.121,
subdivision 2; and, excluding the cities of Duluth, Mankato, Moorhead, Rochester, and
St. Cloud.

(2) has a population under 15,000.

(d) (f) "Emergency circumstances" means those conditions that make it impossible
for the participant to fulfill the service commitment, including death, total and permanent
disability, or temporary disability lasting more than two years.

(g) "Mental health professional" means an individual providing clinical services in
the treatment of mental illness who is qualified in at least one of the ways specified in
section 245.462, subdivision 18.

(e) (h) "Medical resident" means an individual participating in a medical residency
in family practice, internal medicine, obstetrics and gynecology, pediatrics, or psychiatry.

(f) (i) "Midlevel practitioner" means a nurse practitioner, nurse-midwife, nurse
anesthetist, advanced clinical nurse specialist, or physician assistant.

(g) (j) "Nurse" means an individual who has completed training and received
all licensing or certification necessary to perform duties as a licensed practical nurse
or registered nurse.

(h) (k) "Nurse-midwife" means a registered nurse who has graduated from a program
of study designed to prepare registered nurses for advanced practice as nurse-midwives.

(i) (l) "Nurse practitioner" means a registered nurse who has graduated from a
program of study designed to prepare registered nurses for advanced practice as nurse
practitioners.

(j) (m) "Pharmacist" means an individual with a valid license issued under chapter
151.

(k) (n) "Physician" means an individual who is licensed to practice medicine in
the areas of family practice, internal medicine, obstetrics and gynecology, pediatrics,
or psychiatry.

(l) (o) "Physician assistant" means a person licensed under chapter 147A.

(p) "Public health nurse" means a registered nurse licensed in Minnesota who has
obtained a registration certificate as a public health nurse from the Board of Nursing in
accordance with Minnesota Rules, chapter 6316.

(m) (q) "Qualified educational loan" means a government, commercial, or foundation
loan for actual costs paid for tuition, reasonable education expenses, and reasonable living
expenses related to the graduate or undergraduate education of a health care professional.

(n) (r) "Underserved urban community" means a Minnesota urban area or population
included in the list of designated primary medical care health professional shortage areas
(HPSAs), medically underserved areas (MUAs), or medically underserved populations
(MUPs) maintained and updated by the United States Department of Health and Human
Services.

Sec. 11.

Minnesota Statutes 2014, section 144.1501, subdivision 2, is amended to read:

Subd. 2.

Creation of account.

(a) A health professional education loan forgiveness
program account is established. The commissioner of health shall use money from the
account to establish a loan forgiveness program:

(1) for medical residents and mental health professionals agreeing to practice
in designated rural areas or underserved urban communities or specializing in the area
of pediatric psychiatry;

(2) for midlevel practitioners agreeing to practice in designated rural areas or to
teach at least 12 credit hours, or 720 hours per year in the nursing field in a postsecondary
program at the undergraduate level or the equivalent at the graduate level;

(3) for nurses who agree to practice in a Minnesota nursing home or; an intermediate
care facility for persons with developmental disability; or a hospital if the hospital owns
and operates a Minnesota nursing home and a minimum of 50 percent of the hours worked
by the nurse is in the nursing home; or agree to teach at least 12 credit hours, or 720 hours
per year in the nursing field in a postsecondary program at the undergraduate level or the
equivalent at the graduate level;

(4) for other health care technicians agreeing to teach at least 12 credit hours, or 720
hours per year in their designated field in a postsecondary program at the undergraduate
level or the equivalent at the graduate level. The commissioner, in consultation with
the Healthcare Education-Industry Partnership, shall determine the health care fields
where the need is the greatest, including, but not limited to, respiratory therapy, clinical
laboratory technology, radiologic technology, and surgical technology;

(5) for pharmacists, advanced dental therapists, dental therapists, and public health
nurses who agree to practice in designated rural areas; and

(6) for dentists agreeing to deliver at least 25 percent of the dentist's yearly patient
encounters to state public program enrollees or patients receiving sliding fee schedule
discounts through a formal sliding fee schedule meeting the standards established by
the United States Department of Health and Human Services under Code of Federal
Regulations, title 42, section 51, chapter 303.

(b) Appropriations made to the account do not cancel and are available until
expended, except that at the end of each biennium, any remaining balance in the account
that is not committed by contract and not needed to fulfill existing commitments shall
cancel to the fund.

Sec. 12.

Minnesota Statutes 2014, section 144.1501, subdivision 3, is amended to read:

Subd. 3.

Eligibility.

(a) To be eligible to participate in the loan forgiveness program,
an individual must:

(1) be a medical or dental resident,; a licensed pharmacist; or be enrolled in a training
or education program to become a dentist, dental therapist, advanced dental therapist,
mental health professional, pharmacist, public health nurse, midlevel practitioner,
registered nurse, or a licensed practical nurse training program . The commissioner may
also consider applications submitted by graduates in eligible professions who are licensed
and in practice; and

(2) submit an application to the commissioner of health. If fewer applications are
submitted by dental students or residents than there are dentist participant slots available,
the commissioner may consider applications submitted by dental program graduates
who are licensed dentists.

(b) An applicant selected to participate must sign a contract to agree to serve a
minimum three-year full-time service obligation according to subdivision 2, which
shall begin no later than March 31 following completion of required training, with the
exception of a nurse, who must agree to serve a minimum two-year full-time service
obligation according to subdivision 2, which shall begin no later than March 31 following
completion of required training.

Sec. 13.

Minnesota Statutes 2014, section 144.1501, subdivision 4, is amended to read:

Subd. 4.

Loan forgiveness.

The commissioner of health may select applicants
each year for participation in the loan forgiveness program, within the limits of available
funding. In considering applications, the commissioner shall give preference to applicants
who document diverse cultural competencies. The commissioner shall distribute available
funds for loan forgiveness proportionally among the eligible professions according to the
vacancy rate for each profession in the required geographic area, facility type, teaching
area, patient group, or specialty type specified in subdivision 2. The commissioner shall
allocate funds for physician loan forgiveness so that 75 percent of the funds available are
used for rural physician loan forgiveness and 25 percent of the funds available are used
for underserved urban communities and pediatric psychiatry loan forgiveness. If the
commissioner does not receive enough qualified applicants each year to use the entire
allocation of funds for any eligible profession, the remaining funds may be allocated
proportionally among the other eligible professions according to the vacancy rate for
each profession in the required geographic area, patient group, or facility type specified
in subdivision 2. Applicants are responsible for securing their own qualified educational
loans. The commissioner shall select participants based on their suitability for practice
serving the required geographic area or facility type specified in subdivision 2, as indicated
by experience or training. The commissioner shall give preference to applicants closest to
completing their training. For each year that a participant meets the service obligation
required under subdivision 3, up to a maximum of four years, the commissioner shall make
annual disbursements directly to the participant equivalent to 15 percent of the average
educational debt for indebted graduates in their profession in the year closest to the
applicant's selection for which information is available, not to exceed the balance of the
participant's qualifying educational loans. Before receiving loan repayment disbursements
and as requested, the participant must complete and return to the commissioner a
confirmation of practice form provided by the commissioner verifying that the participant
is practicing as required under subdivisions 2 and 3. The participant must provide the
commissioner with verification that the full amount of loan repayment disbursement
received by the participant has been applied toward the designated loans. After each
disbursement, verification must be received by the commissioner and approved before the
next loan repayment disbursement is made. Participants who move their practice remain
eligible for loan repayment as long as they practice as required under subdivision 2.

Sec. 14.

[144.1911] INTERNATIONAL MEDICAL GRADUATES ASSISTANCE
PROGRAM.

Subdivision 1.

Establishment.

The international medical graduates assistance
program is established to address barriers to practice and facilitate pathways to assist
immigrant international medical graduates to integrate into the Minnesota health
care delivery system, with the goal of increasing access to primary care in rural and
underserved areas of the state.

Subd. 2.

Definitions.

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

(b) "Commissioner" means the commissioner of health.

(c) "Immigrant international medical graduate" means an international medical
graduate who was born outside the United States, now resides permanently in the United
States, and who did not enter the United States on a J1 or similar nonimmigrant visa
following acceptance into a United States medical residency or fellowship program.

(d) "International medical graduate" means a physician who received a basic medical
degree or qualification from a medical school located outside the United States and Canada.

(e) "Minnesota immigrant international medical graduate" means an immigrant
international medical graduate who has lived in Minnesota for at least two years.

(f) "Rural community" means a statutory and home rule charter city or township
that: (1) is outside the seven-county metropolitan area as defined in section 473.121,
subdivision 2; and (2) has a population under 15,000.

(g) "Underserved community" means a Minnesota area or population included in
the list of designated primary medical care health professional shortage areas, medically
underserved areas, or medically underserved populations (MUPs) maintained and updated
by the United States Department of Health and Human Services.

Subd. 3.

Program administration.

(a) In administering the international medical
graduates assistance program, the commissioner shall:

(1) provide overall coordination for the planning, development, and implementation
of a comprehensive system for integrating qualified immigrant international medical
graduates into the Minnesota health care delivery system, particularly those willing to
serve in rural or underserved communities of the state;

(2) develop and maintain, in partnership with community organizations working
with international medical graduates, a voluntary roster of immigrant international medical
graduates interested in entering the Minnesota health workforce to assist in planning
and program administration, including making available summary reports that show the
aggregate number and distribution, by geography and specialty, of immigrant international
medical graduates in Minnesota;

(3) work with graduate clinical medical training programs to address barriers
faced by immigrant international medical graduates in securing residency positions in
Minnesota, including the requirement that applicants for residency positions be recent
graduates of medical school. The annual report required in subdivision 10 shall include
any progress in addressing these barriers;

(4) develop a system to assess and certify the clinical readiness of eligible immigrant
international medical graduates to serve in a residency program. The system shall
include assessment methods, an operating plan, and a budget. Initially, the commissioner
may develop assessments for clinical readiness for practice of one or more primary
care specialties, and shall add additional assessments as resources are available. The
commissioner may contract with an independent entity or another state agency to conduct
the assessments. In order to be assessed for clinical readiness for residency, an eligible
international medical graduate must have obtained a certification from the Educational
Commission of Foreign Medical Graduates. The commissioner shall issue a Minnesota
certificate of clinical readiness for residency to those who pass the assessment;

(5) explore and facilitate more streamlined pathways for immigrant international
medical graduates to serve in nonphysician professions in the Minnesota workforce; and

(6) study, in consultation with the Board of Medical Practice and other stakeholders,
changes necessary in health professional licensure and regulation to ensure full utilization
of immigrant international medical graduates in the Minnesota health care delivery
system. The commissioner shall include recommendations in the annual report required
under subdivision 10, due January 15, 2017.

Subd. 4.

Career guidance and support services.

(a) The commissioner shall
award grants to eligible nonprofit organizations to provide career guidance and support
services to immigrant international medical graduates seeking to enter the Minnesota
health workforce. Eligible grant activities include the following:

(1) educational and career navigation, including information on training and
licensing requirements for physician and nonphysician health care professions, and
guidance in determining which pathway is best suited for an individual international
medical graduate based on the graduate's skills, experience, resources, and interests;

(2) support in becoming proficient in medical English;

(3) support in becoming proficient in the use of information technology, including
computer skills and use of electronic health record technology;

(4) support for increasing knowledge of and familiarity with the United States
health care system;

(5) support for other foundational skills identified by the commissioner;

(6) support for immigrant international medical graduates in becoming certified
by the Educational Commission on Foreign Medical Graduates, including help with
preparation for required licensing examinations and financial assistance for fees; and

(7) assistance to international medical graduates in registering with the program's
Minnesota international medical graduate roster.

(b) The commissioner shall award the initial grants under this subdivision by
December 31, 2015.

Subd. 5.

Clinical preparation.

(a) The commissioner shall award grants to support
clinical preparation for Minnesota international medical graduates needing additional
clinical preparation or experience to qualify for residency. The grant program shall include:

(1) proposed training curricula;

(2) associated policies and procedures for clinical training sites, which must be part
of existing clinical medical education programs in Minnesota; and

(3) monthly stipends for international medical graduate participants. Priority shall
be given to primary care sites in rural or underserved areas of the state, and international
medical graduate participants must commit to serving at least five years in a rural or
underserved community of the state.

(b) The policies and procedures for the clinical preparation grants must be developed
by December 31, 2015, including an implementation schedule that begins awarding grants
to clinical preparation programs beginning in June of 2016.

Subd. 6.

International medical graduate primary care residency grant program
and revolving account.

(a) The commissioner shall award grants to support primary
care residency positions designated for Minnesota immigrant physicians who are willing
to serve in rural or underserved areas of the state. No grant shall exceed $150,000 per
residency position per year. Eligible primary care residency grant recipients include
accredited family medicine, internal medicine, obstetrics and gynecology, psychiatry, and
pediatric residency programs. Eligible primary care residency programs shall apply to the
commissioner. Applications must include the number of anticipated residents to be funded
using grant funds and a budget. Notwithstanding any law to the contrary, funds awarded
to grantees in a grant agreement do not lapse until the grant agreement expires. Before any
funds are distributed, a grant recipient shall provide the commissioner with the following:

(1) a copy of the signed contract between the primary care residency program and
the participating international medical graduate;

(2) certification that the participating international medical graduate has lived in
Minnesota for at least two years and is certified by the Educational Commission on
Foreign Medical Graduates. Residency programs may also require that participating
international medical graduates hold a Minnesota certificate of clinical readiness for
residency, once the certificates become available; and

(3) verification that the participating international medical graduate has executed a
participant agreement pursuant to paragraph (b).

(b) Upon acceptance by a participating residency program, international medical
graduates shall enter into an agreement with the commissioner to provide primary
care for at least five years in a rural or underserved area of Minnesota after graduating
from the residency program and make payments to the revolving international medical
graduate residency account for five years beginning in their second year of postresidency
employment. Participants shall pay $15,000 or ten percent of their annual compensation
each year, whichever is less.

(c) A revolving international medical graduate residency account is established
as an account in the special revenue fund in the state treasury. The commissioner of
management and budget shall credit to the account appropriations, payments, and
transfers to the account. Earnings, such as interest, dividends, and any other earnings
arising from fund assets, must be credited to the account. Funds in the account are
appropriated annually to the commissioner to award grants and administer the grant
program established in paragraph (a). Notwithstanding any law to the contrary, any funds
deposited in the account do not expire. The commissioner may accept contributions to the
account from private sector entities subject to the following provisions:

(1) the contributing entity may not specify the recipient or recipients of any grant
issued under this subdivision;

(2) the commissioner shall make public the identity of any private contributor to the
account, as well as the amount of the contribution provided; and

(3) a contributing entity may not specify that the recipient or recipients of any funds
use specific products or services, nor may the contributing entity imply that a contribution
is an endorsement of any specific product or service.

Subd. 7.

Voluntary hospital programs.

A hospital may establish residency
programs for foreign-trained physicians to become candidates for licensure to practice
medicine in the state of Minnesota. A hospital may partner with organizations, such as
the New Americans Alliance for Development, to screen for and identify foreign-trained
physicians eligible for a hospital's particular residency program.

Subd. 8.

Board of Medical Practice.

Nothing in this section alters the authority of
the Board of Medical Practice to regulate the practice of medicine.

Subd. 9.

Consultation with stakeholders.

The commissioner shall administer the
international medical graduates assistance program, including the grant programs described
under subdivisions 4, 5, and 6, in consultation with representatives of the following sectors:

(1) state agencies:

(i) Board of Medical Practice;

(ii) Office of Higher Education; and

(iii) Department of Employment and Economic Development;

(2) health care industry:

(i) a health care employer in a rural or underserved area of Minnesota;

(ii) a health plan company;

(iii) the Minnesota Medical Association;

(iv) licensed physicians experienced in working with international medical
graduates; and

(v) the Minnesota Academy of Physician Assistants;

(3) community-based organizations:

(i) organizations serving immigrant and refugee communities of Minnesota;

(ii) organizations serving the international medical graduate community, such as the
New Americans Alliance for Development and Women's Initiative for Self Empowerment;
and

(iii) the Minnesota Association of Community Health Centers;

(4) higher education:

(i) University of Minnesota;

(ii) Mayo Clinic School of Health Professions;

(iii) graduate medical education programs not located at the University of Minnesota
or Mayo Clinic School of Health Professions; and

(iv) Minnesota physician assistant education program; and

(5) two international medical graduates.

Subd. 10.

Report.

The commissioner shall submit an annual report to the chairs and
ranking minority members of the legislative committees with jurisdiction over health care
and higher education on the progress of the integration of international medical graduates
into the Minnesota health care delivery system. The report shall include recommendations
on actions needed for continued progress integrating international medical graduates. The
report shall be submitted by January 15 each year, beginning January 15, 2016.

Sec. 15.

Minnesota Statutes 2014, section 144.215, is amended by adding a subdivision
to read:

Subd. 4a.

Parent contact information.

The mailing or residence address, other
than the city or county, e-mail address, and telephone number of a parent provided in
connection with the electronic registration of a birth or application for a birth certificate
are private data on individuals, provided that the data may be disclosed to a school or a
local, state, tribal, or federal government entity to the extent that the data are necessary for
the entity to perform its duties.

Sec. 16.

Minnesota Statutes 2014, section 144.225, subdivision 4, is amended to read:

Subd. 4.

Access to records for research purposes.

The state registrar may permit
persons performing medical research access to the information restricted in subdivision 2
or 2a, or section 144.215, subdivision 4a, if those persons agree in writing not to disclose
private or confidential data on individuals.

Sec. 17.

Minnesota Statutes 2014, section 144.291, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For the purposes of sections 144.291 to 144.298, the following
terms have the meanings given.

(a) "Group purchaser" has the meaning given in section 62J.03, subdivision 6.

(b) "Health information exchange" means a legal arrangement between health care
providers and group purchasers to enable and oversee the business and legal issues
involved in the electronic exchange of health records between the entities for the delivery
of patient care.

(c) "Health record" means any information, whether oral or recorded in any form or
medium, that relates to the past, present, or future physical or mental health or condition of
a patient; the provision of health care to a patient; or the past, present, or future payment
for the provision of health care to a patient.

(d) "Identifying information" means the patient's name, address, date of birth,
gender, parent's or guardian's name regardless of the age of the patient, and other
nonclinical data which can be used to uniquely identify a patient.

(e) "Individually identifiable form" means a form in which the patient is or can be
identified as the subject of the health records.

(f) "Medical emergency" means medically necessary care which is immediately
needed to preserve life, prevent serious impairment to bodily functions, organs, or parts,
or prevent placing the physical or mental health of the patient in serious jeopardy.

(g) "Patient" means a natural person who has received health care services from a
provider for treatment or examination of a medical, psychiatric, or mental condition, the
surviving spouse and parents of a deceased patient, or a person the patient appoints in
writing as a representative, including a health care agent acting according to chapter 145C,
unless the authority of the agent has been limited by the principal in the principal's health
care directive. Except for minors who have received health care services under sections
144.341 to 144.347, in the case of a minor, patient includes a parent or guardian, or a
person acting as a parent or guardian in the absence of a parent or guardian.

(h) "Patient information service" means a service providing the following query
options: a record locator service as defined in section 144.291, subdivision 2, paragraph
(i), or a master patient index or clinical data repository as defined in section 62J.498,
subdivision 1.

(h) (i) "Provider" means:

(1) any person who furnishes health care services and is regulated to furnish the
services under chapter 147, 147A, 147B, 147C, 147D, 148, 148B, 148D, 148F, 150A,
151, 153, or 153A;

(2) a home care provider licensed under section 144A.46 144A.471;

(3) a health care facility licensed under this chapter or chapter 144A; and

(4) a physician assistant registered under chapter 147A.

(i) (j) "Record locator service" means an electronic index of patient identifying
information that directs providers in a health information exchange to the location of
patient health records held by providers and group purchasers.

(j) (k) "Related health care entity" means an affiliate, as defined in section 144.6521,
subdivision 3, paragraph (b), of the provider releasing the health records.

Sec. 18.

Minnesota Statutes 2014, section 144.293, subdivision 8, is amended to read:

Subd. 8.

Record locator or patient information service.

(a) A provider or group
purchaser may release patient identifying information and information about the location
of the patient's health records to a record locator or patient information service without
consent from the patient, unless the patient has elected to be excluded from the service
under paragraph (d). The Department of Health may not access the record locator or
patient information service or receive data from the record locator service. Only a
provider may have access to patient identifying information in a record locator or patient
information service. Except in the case of a medical emergency, a provider participating in
a health information exchange using a record locator or patient information service does
not have access to patient identifying information and information about the location of
the patient's health records unless the patient specifically consents to the access. A consent
does not expire but may be revoked by the patient at any time by providing written notice
of the revocation to the provider.

(b) A health information exchange maintaining a record locator or patient
information service must maintain an audit log of providers accessing information in a
record locator the service that at least contains information on:

(1) the identity of the provider accessing the information;

(2) the identity of the patient whose information was accessed by the provider; and

(3) the date the information was accessed.

(c) No group purchaser may in any way require a provider to participate in a record
locator or patient information service as a condition of payment or participation.

(d) A provider or an entity operating a record locator or patient information service
must provide a mechanism under which patients may exclude their identifying information
and information about the location of their health records from a record locator or patient
information service. At a minimum, a consent form that permits a provider to access
a record locator or patient information service must include a conspicuous check-box
option that allows a patient to exclude all of the patient's information from the record
locator service. A provider participating in a health information exchange with a record
locator or patient information service who receives a patient's request to exclude all of the
patient's information from the record locator service or to have a specific provider contact
excluded from the record locator service is responsible for removing that information
from the record locator service.

Sec. 19.

Minnesota Statutes 2014, section 144.298, subdivision 2, is amended to read:

Subd. 2.

Liability of provider or other person.

A person who does any of the
following is liable to the patient for compensatory damages caused by an unauthorized
release or an intentional, unauthorized access, plus costs and reasonable attorney fees:

(1) negligently or intentionally requests or releases a health record in violation
of sections 144.291 to 144.297;

(2) forges a signature on a consent form or materially alters the consent form of
another person without the person's consent;

(3) obtains a consent form or the health records of another person under false
pretenses; or

(4) intentionally violates sections 144.291 to 144.297 by intentionally accessing a
record locator or patient information service without authorization.

Sec. 20.

Minnesota Statutes 2014, section 144.298, subdivision 3, is amended to read:

Subd. 3.

Liability for record locator or patient information service.

A patient
is entitled to receive compensatory damages plus costs and reasonable attorney fees
if a health information exchange maintaining a record locator or patient information
service, or an entity maintaining a record locator or patient information service for a
health information exchange, negligently or intentionally violates the provisions of section
144.293, subdivision 8.

Sec. 21.

Minnesota Statutes 2014, section 144.3831, subdivision 1, is amended to read:

Subdivision 1.

Fee setting.

The commissioner of health may assess an annual fee
of $6.36 $8.28 for every service connection to a public water supply that is owned or
operated by a home rule charter city, a statutory city, a city of the first class, or a town. The
commissioner of health may also assess an annual fee for every service connection served
by a water user district defined in section 110A.02. Fees collected under this section shall
be deposited in the state treasury and credited to the state government special revenue fund.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 22.

[144.3875] EARLY DENTAL PREVENTION INITIATIVE.

(a) The commissioner of health, in collaboration with the commissioner of human
services, shall implement a statewide initiative to increase awareness among communities
of color and recent immigrants on the importance of early preventive dental intervention
for infants and toddlers before and after primary teeth appear.

(b) The commissioner shall develop educational materials and information for
expectant and new parents within the targeted communities that include the importance
of early dental care to prevent early cavities, including proper cleaning techniques and
feeding habits, before and after primary teeth appear.

(c) The commissioner shall develop a distribution plan to ensure that the materials
are distributed to expectant and new parents within the targeted communities, including,
but not limited to, making the materials available to health care providers, community
clinics, WIC sites, and other relevant sites within the targeted communities.

(d) In developing these materials and distribution plan, the commissioner shall work
collaboratively with members of the targeted communities, dental providers, pediatricians,
child care providers, and home visiting nurses.

(e) The commissioner shall, with input from stakeholders listed in paragraph (d),
develop and pilot incentives to encourage early dental care within one year of an infant's
teeth erupting.

Sec. 23.

[144.4961] MINNESOTA RADON LICENSING ACT.

Subdivision 1.

Citation.

This section may be cited as the "Minnesota Radon
Licensing Act."

Subd. 2.

Definitions.

(a) As used in this section, the following terms have the
meanings given them.

(b) "Mitigation" means the act of repairing or altering a building or building design
for the purpose in whole or in part of reducing the concentration of radon in the indoor
atmosphere.

(c) "Radon" means both the radioactive, gaseous element produced by the
disintegration of radium, and the short-lived radionuclides that are decay products of radon.

Subd. 3.

Rulemaking.

The commissioner of health shall adopt rules for licensure
and enforcement of applicable laws and rules relating to indoor radon in dwellings and
other buildings, with the exception of newly constructed Minnesota homes according
to section 326B.106, subdivision 6. The commissioner shall coordinate, oversee, and
implement all state functions in matters concerning the presence, effects, measurement,
and mitigation of risks of radon in dwellings and other buildings.

Subd. 4.

System tag.

All radon mitigation systems installed in Minnesota on or after
October 1, 2017, must have a radon mitigation system tag provided by the commissioner.
A radon mitigation professional must attach the tag to the radon mitigation system in
a visible location.

Subd. 5.

License required annually.

A license is required annually for every
person, firm, or corporation that sells a device or performs a service for compensation
to detect the presence of radon in the indoor atmosphere, performs laboratory analysis,
or performs a service to mitigate radon in the indoor atmosphere. This section does not
apply to retail stores that only sell or distribute radon sampling but are not engaged in the
manufacture of radon sampling devices.

Subd. 6.

Exemptions.

Radon systems installed in newly constructed Minnesota
homes according to section 326B.106, subdivision 6, prior to the issuance of a certificate
of occupancy are not required to follow the requirements of this section.

Subd. 7.

License applications and other reports.

The professionals, companies,
and laboratories listed in subdivision 8 must submit applications for licenses, system
tags, and any other reporting required under this section and Minnesota Rules on forms
prescribed by the commissioner.

Subd. 8.

Licensing fees.

(a) All radon license applications submitted to the
commissioner of health must be accompanied by the required fees. If the commissioner
determines that insufficient fees were paid, the necessary additional fees must be paid
before the commissioner approves the application. The commissioner shall charge the
following fees for each radon license:

(1) Each measurement professional license, $300 per year. "Measurement
professional" means any person who performs a test to determine the presence and
concentration of radon in a building they do not own or lease; provides professional or
expert advice on radon testing, radon exposure, or health risks related to radon exposure;
or makes representations of doing any of these activities.

(2) Each mitigation professional license, $500 per year. "Mitigation professional"
means an individual who performs radon mitigation in a building they do not own or
lease; provides professional or expert advice on radon mitigation or radon entry routes;
or provides on-site supervision of radon mitigation and mitigation technicians; or makes
representations of doing any of these activities. This license also permits the licensee to
perform the activities of a measurement professional described in clause (1).

(3) Each mitigation company license, $500 per year. "Mitigation company" means
any business or government entity that performs or authorizes employees to perform radon
mitigation. This fee is waived if the company is a sole proprietorship.

(4) Each radon analysis laboratory license, $500 per year. "Radon analysis
laboratory" means a business entity or government entity that analyzes passive radon
detection devices to determine the presence and concentration of radon in the devices.
This fee is waived if the laboratory is a government entity and is only distributing test kits
for the general public to use in Minnesota.

(5) Each Minnesota Department of Health radon mitigation system tag, $75 per tag.
"Minnesota Department of Health radon mitigation system tag" or "system tag" means a
unique identifiable radon system label provided by the commissioner of health.

(b) Fees collected under this section shall be deposited in the state treasury and
credited to the state government special revenue fund.

Subd. 9.

Enforcement.

The commissioner shall enforce this section under the
provisions of sections 144.989 to 144.993.

EFFECTIVE DATE.

This section is effective July 1, 2015, except subdivisions 4
and 5, which are effective October 1, 2017.

Sec. 24.

[144.566] VIOLENCE AGAINST HEALTH CARE WORKERS.

Subdivision 1.

Definitions.

(a) The following definitions apply to this section and
have the meanings given.

(b) "Act of violence" means an act by a patient or visitor against a health care
worker that includes kicking, scratching, urinating, sexually harassing, or any act defined
in sections 609.221 to 609.2241.

(c) "Commissioner" means the commissioner of health.

(d) "Health care worker" means any person, whether licensed or unlicensed,
employed by, volunteering in, or under contract with a hospital, who has direct contact
with a patient of the hospital for purposes of either medical care or emergency response to
situations potentially involving violence.

(e) "Hospital" means any facility licensed as a hospital under section 144.55.

(f) "Incident response" means the actions taken by hospital administration and health
care workers during and following an act of violence.

(g) "Interfere" means to prevent, impede, discourage, or delay a health care worker's
ability to report acts of violence, including by retaliating or threatening to retaliate against
a health care worker.

(h) "Preparedness" means the actions taken by hospital administration and health
care workers to prevent a single act of violence or acts of violence generally.

(i) "Retaliate" means to discharge, discipline, threaten, otherwise discriminate
against, or penalize a health care worker regarding the health care worker's compensation,
terms, conditions, location, or privileges of employment.

Subd. 2.

Hospital duties.

(a) All hospitals must design and implement preparedness
and incident response action plans to acts of violence by January 15, 2016, and review the
plan at least annually thereafter.

(b) A hospital shall designate a committee of representatives of health care workers
employed by the hospital, including nonmanagerial health care workers, nonclinical
staff, administrators, patient safety experts, and other appropriate personnel to develop
preparedness and incident response action plans to acts of violence. The hospital shall, in
consultation with the designated committee, implement the plans under paragraph (a).
Nothing in this paragraph shall require the establishment of a separate committee solely
for the purpose required by this subdivision.

(c) A hospital shall provide training to all health care workers employed or
contracted with the hospital on safety during acts of violence. Each health care worker
must receive safety training annually and upon hire. Training must, at a minimum, include:

(1) safety guidelines for response to and de-escalation of an act of violence;

(2) ways to identify potentially violent or abusive situations; and

(3) the hospital's incident response reaction plan and violence prevention plan.

(d) As part of its annual review required under paragraph (a), the hospital must
review with the designated committee:

(1) the effectiveness of its preparedness and incident response action plans;

(2) the most recent gap analysis as provided by the commissioner; and

(3) the number of acts of violence that occurred in the hospital during the previous
year, including injuries sustained, if any, and the unit in which the incident occurred.

(e) A hospital shall make its action plans and the information listed in paragraph
(d) available to local law enforcement and, if any of its workers are represented by a
collective bargaining unit, to the exclusive bargaining representatives of those collective
bargaining units.

(f) A hospital, including any individual, partner, association, or any person or group
of persons acting directly or indirectly in the interest of the hospital, shall not interfere
with or discourage a health care worker if the health care worker wishes to contact law
enforcement or the commissioner regarding an act of violence.

(g) The commissioner may impose an administrative fine of up to $250 for failure to
comply with the requirements of subdivision 2.

Sec. 25.

Minnesota Statutes 2014, section 144.9501, subdivision 6d, is amended to read:

Subd. 6d.

Certified lead firm.

"Certified lead firm" means a person that employs
individuals to perform regulated lead work, with the exception of renovation, and that
is certified by the commissioner under section 144.9505.

Sec. 26.

Minnesota Statutes 2014, section 144.9501, is amended by adding a
subdivision to read:

Subd. 6e.

Certified renovation firm.

"Certified renovation firm" means a person
that employs individuals to perform renovation and is certified by the commissioner
under section 144.9505.

Sec. 27.

Minnesota Statutes 2014, section 144.9501, subdivision 22b, is amended to
read:

Subd. 22b.

Lead sampling technician.

"Lead sampling technician" means an
individual who performs clearance inspections for renovation sites and lead dust sampling
for nonabatement sites, and who is registered with the commissioner under section
144.9505.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 28.

Minnesota Statutes 2014, section 144.9501, subdivision 26b, is amended to
read:

Subd. 26b.

Renovation.

"Renovation" means the modification of any pre-1978
affected property that results in the disturbance of known or presumed lead-containing
painted surfaces defined under section 144.9508, unless that activity is performed as an
abatement lead hazard reduction. A renovation performed for the purpose of converting a
building or part of a building into an affected property is a renovation under this subdivision.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 29.

Minnesota Statutes 2014, section 144.9501, is amended by adding a
subdivision to read:

Subd. 26c.

Lead renovator.

"Lead renovator" means an individual who directs
individuals who perform renovations. A lead renovator also performs renovation, surface
coating testing, and cleaning verification.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 30.

Minnesota Statutes 2014, section 144.9505, is amended to read:

144.9505 LICENSING CREDENTIALING OF LEAD FIRMS AND
PROFESSIONALS.

Subdivision 1.

Licensing and, certification; generally, and permitting.

(a) All
Fees received shall be paid collected under this section shall be deposited into the state
treasury and credited to the lead abatement licensing and certification account and are
appropriated to the commissioner to cover costs incurred under this section and section
144.9508 state government special revenue fund.

(b) Persons shall not advertise or otherwise present themselves as lead supervisors,
lead workers, lead inspectors, lead risk assessors, lead sampling technicians, lead project
designers, or renovation firms, or lead firms unless they have licenses or certificates issued
by or are registered with the commissioner under this section.

(c) The fees required in this section for inspectors, risk assessors, and certified lead
firms are waived for state or local government employees performing services for or
as an assessing agency.

(d) An individual who is the owner of property on which regulated lead work is to be
performed or an adult individual who is related to the property owner, as defined under
section 245A.02, subdivision 13, is exempt from the requirements to obtain a license and
pay a fee according to this section.

(e) A person that employs individuals to perform regulated lead work outside of the
person's property must obtain certification as a certified lead firm. An individual who
performs regulated lead work lead hazard reduction, lead hazard screens, lead inspections,
lead risk assessments, clearance inspections, lead project designer services, lead sampling
technician services, swab team services, and activities performed to comply with lead
orders must be employed by a certified lead firm, unless the individual is a sole proprietor
and does not employ any other individual who performs regulated lead work individuals,
the individual is employed by a person that does not perform regulated lead work outside
of the person's property, or the individual is employed by an assessing agency.

Subd. 1a.

Lead worker license.

Before an individual performs regulated lead work
as a worker, the individual shall first obtain a license from the commissioner. No license
shall be issued unless the individual shows evidence of successfully completing a training
course in lead hazard control. The commissioner shall specify the course of training and
testing requirements and shall charge a $50 fee annually for the license. License fees are
nonrefundable and must be submitted with each application. The license must be carried
by the individual and be readily available for review by the commissioner and other public
health officials charged with the health, safety, and welfare of the state's citizens.

Subd. 1b.

Lead supervisor license.

Before an individual performs regulated lead
work as a supervisor, the individual shall first obtain a license from the commissioner. No
license shall be issued unless the individual shows evidence of experience and successful
completion of a training course in lead hazard control. The commissioner shall specify
the course of training, experience, and testing requirements and shall charge a $50 fee
annually for the license. License fees are nonrefundable and must be submitted with
each application. The license must be carried by the individual and be readily available
for review by the commissioner and other public health officials charged with the health,
safety, and welfare of the state's citizens.

Subd. 1c.

Lead inspector license.

Before an individual performs lead inspection
services, the individual shall first obtain a license from the commissioner. No license shall
be issued unless the individual shows evidence of successfully completing a training
course in lead inspection. The commissioner shall specify the course of training and
testing requirements and shall charge a $50 fee annually for the license. License fees are
nonrefundable and must be submitted with each application. The license must be carried
by the individual and be readily available for review by the commissioner and other public
health officials charged with the health, safety, and welfare of the state's citizens.

Subd. 1d.

Lead risk assessor license.

Before an individual performs lead risk
assessor services, the individual shall first obtain a license from the commissioner. No
license shall be issued unless the individual shows evidence of experience and successful
completion of a training course in lead risk assessment. The commissioner shall specify
the course of training, experience, and testing requirements and shall charge a $100 fee
annually for the license. License fees are nonrefundable and must be submitted with
each application. The license must be carried by the individual and be readily available
for review by the commissioner and other public health officials charged with the health,
safety, and welfare of the state's citizens.

Subd. 1e.

Lead project designer license.

Before an individual performs lead
project designer services, the individual shall first obtain a license from the commissioner.
No license shall be issued unless the individual shows evidence of experience and
successful completion of a training course in lead project design. The commissioner shall
specify the course of training, experience, and testing requirements and shall charge a
$100 fee annually for the license. License fees are nonrefundable and must be submitted
with each application. The license must be carried by the individual and be readily
available for review by the commissioner and other public health officials charged with
the health, safety, and welfare of the state's citizens.

Subd. 1f.

Lead sampling technician.

An individual performing lead sampling
technician services shall first register with the commissioner. The commissioner shall not
register an individual unless the individual shows evidence of successfully completing a
training course in lead sampling. The commissioner shall specify the course of training
and testing requirements. Proof of registration must be carried by the individual and be
readily available for review by the commissioner and other public health officials charged
with the health, safety, and welfare of the state's citizens.

Subd. 1g.

Certified lead firm.

A person who employs individuals to perform
regulated lead work, with the exception of renovation, outside of the person's property
must obtain certification as a lead firm. The certificate must be in writing, contain an
expiration date, be signed by the commissioner, and give the name and address of the
person to whom it is issued. A lead firm certificate is valid for one year. The certification
fee is $100, is nonrefundable, and must be submitted with each application. The lead firm
certificate or a copy of the certificate must be readily available at the worksite for review
by the contracting entity, the commissioner, and other public health officials charged with
the health, safety, and welfare of the state's citizens.

Subd. 1h.

Certified renovation firm.

A person who employs individuals to
perform renovation activities outside of the person's property must obtain certification
as a renovation firm. The certificate must be in writing, contain an expiration date, be
signed by the commissioner, and give the name and address of the person to whom it is
issued. A renovation firm certificate is valid for two years. The certification fee is $100,
is nonrefundable, and must be submitted with each application. The renovation firm
certificate or a copy of the certificate must be readily available at the worksite for review
by the contracting entity, the commissioner, and other public health officials charged with
the health, safety, and welfare of the state's citizens.

Subd. 1i.

Lead training course.

Before a person provides training to lead
workers, lead supervisors, lead inspectors, lead risk assessors, lead project designers, lead
sampling technicians, and lead renovators, the person shall first obtain a permit from the
commissioner. The permit must be in writing, contain an expiration date, be signed by
the commissioner, and give the name and address of the person to whom it is issued.
A training course permit is valid for two years. Training course permit fees shall be
nonrefundable and must be submitted with each application in the amount of $500 for an
initial training course, $250 for renewal of a permit for an initial training course, $250 for
a refresher training course, and $125 for renewal of a permit of a refresher training course.

Subd. 3.

Licensed building contractor; information.

The commissioner shall
provide health and safety information on lead abatement and lead hazard reduction to all
residential building contractors licensed under section 326B.805. The information must
include the lead-safe practices and any other materials describing ways to protect the
health and safety of both employees and residents.

Subd. 4.

Notice of regulated lead work.

(a) At least five working days before
starting work at each regulated lead worksite, the person performing the regulated lead
work shall give written notice to the commissioner and the appropriate board of health.

(b) This provision does not apply to lead hazard screen, lead inspection, lead risk
assessment, lead sampling technician, renovation, or lead project design activities.

Subd. 6.

Duties of contracting entity.

A contracting entity intending to have
regulated lead work performed for its benefit shall include in the specifications and
contracts for the work a requirement that the work be performed by contractors and
subcontractors licensed by the commissioner under sections 144.9501 to 144.9512 and
according to rules adopted by the commissioner related to regulated lead work. No
contracting entity shall allow regulated lead work to be performed for its benefit unless the
contracting entity has seen that the person has a valid license or certificate. A contracting
entity's failure to comply with this subdivision does not relieve a person from any
responsibility under sections 144.9501 to 144.9512.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 31.

Minnesota Statutes 2014, section 144.9508, is amended to read:

144.9508 RULES.

Subdivision 1.

Sampling and analysis.

The commissioner shall adopt, by rule,
methods for:

(1) lead inspections, lead hazard screens, lead risk assessments, and clearance
inspections;

(2) environmental surveys of lead in paint, soil, dust, and drinking water to determine
areas at high risk for toxic lead exposure;

(3) soil sampling for soil used as replacement soil;

(4) drinking water sampling, which shall be done in accordance with lab certification
requirements and analytical techniques specified by Code of Federal Regulations, title
40, section 141.89; and

(5) sampling to determine whether at least 25 percent of the soil samples collected
from a census tract within a standard metropolitan statistical area contain lead in
concentrations that exceed 100 parts per million.

Subd. 2.

Regulated lead work standards and methods.

(a) The commissioner shall
adopt rules establishing regulated lead work standards and methods in accordance with the
provisions of this section, for lead in paint, dust, drinking water, and soil in a manner that
protects public health and the environment for all residences, including residences also
used for a commercial purpose, child care facilities, playgrounds, and schools.

(b) In the rules required by this section, the commissioner shall require lead hazard
reduction of intact paint only if the commissioner finds that the intact paint is on a
chewable or lead-dust producing surface that is a known source of actual lead exposure to
a specific individual. The commissioner shall prohibit methods that disperse lead dust into
the air that could accumulate to a level that would exceed the lead dust standard specified
under this section. The commissioner shall work cooperatively with the commissioner
of administration to determine which lead hazard reduction methods adopted under this
section may be used for lead-safe practices including prohibited practices, preparation,
disposal, and cleanup. The commissioner shall work cooperatively with the commissioner
of the Pollution Control Agency to develop disposal procedures. In adopting rules under
this section, the commissioner shall require the best available technology for regulated
lead work methods, paint stabilization, and repainting.

(c) The commissioner of health shall adopt regulated lead work standards and
methods for lead in bare soil in a manner to protect public health and the environment.
The commissioner shall adopt a maximum standard of 100 parts of lead per million in
bare soil. The commissioner shall set a soil replacement standard not to exceed 25 parts
of lead per million. Soil lead hazard reduction methods shall focus on erosion control
and covering of bare soil.

(d) The commissioner shall adopt regulated lead work standards and methods for lead
in dust in a manner to protect the public health and environment. Dust standards shall use
a weight of lead per area measure and include dust on the floor, on the window sills, and
on window wells. Lead hazard reduction methods for dust shall focus on dust removal and
other practices which minimize the formation of lead dust from paint, soil, or other sources.

(e) The commissioner shall adopt lead hazard reduction standards and methods for
lead in drinking water both at the tap and public water supply system or private well
in a manner to protect the public health and the environment. The commissioner may
adopt the rules for controlling lead in drinking water as contained in Code of Federal
Regulations, title 40, part 141. Drinking water lead hazard reduction methods may include
an educational approach of minimizing lead exposure from lead in drinking water.

(f) The commissioner of the Pollution Control Agency shall adopt rules to ensure that
removal of exterior lead-based coatings from residences and steel structures by abrasive
blasting methods is conducted in a manner that protects health and the environment.

(g) All regulated lead work standards shall provide reasonable margins of safety that
are consistent with more than a summary review of scientific evidence and an emphasis on
overprotection rather than underprotection when the scientific evidence is ambiguous.

(h) No unit of local government shall have an ordinance or regulation governing
regulated lead work standards or methods for lead in paint, dust, drinking water, or soil
that require a different regulated lead work standard or method than the standards or
methods established under this section.

(i) Notwithstanding paragraph (h), the commissioner may approve the use by a unit
of local government of an innovative lead hazard reduction method which is consistent
in approach with methods established under this section.

(j) The commissioner shall adopt rules for issuing lead orders required under section
144.9504, rules for notification of abatement or interim control activities requirements,
and other rules necessary to implement sections 144.9501 to 144.9512.

(k) The commissioner shall adopt rules consistent with section 402(c)(3) of the
Toxic Substances Control Act to ensure that renovation in a pre-1978 affected property
where a child or pregnant female resides is conducted in a manner that protects health
and the environment. Notwithstanding sections 14.125 and 14.128, the authority to adopt
these rules does not expire.

(l) The commissioner shall adopt rules consistent with sections 406(a) and 406(b)
of the Toxic Substances Control Act. Notwithstanding sections 14.125 and 14.128, the
authority to adopt these rules does not expire.

Subd. 2a.

Lead standards for exterior surfaces and street dust.

The
commissioner may, by rule, establish lead standards for exterior horizontal surfaces,
concrete or other impervious surfaces, and street dust on residential property to protect the
public health and the environment.

Subd. 3.

Licensure and certification.

The commissioner shall adopt rules to license
lead supervisors, lead workers, lead project designers, lead inspectors, lead risk assessors,
and lead sampling technicians. The commissioner shall also adopt rules requiring
certification of firms that perform regulated lead work. The commissioner shall require
periodic renewal of licenses and certificates and shall establish the renewal periods.

Subd. 4.

Lead training course.

The commissioner shall establish by rule
requirements for training course providers and the renewal period for each lead-related
training course required for certification or licensure. The commissioner shall establish
criteria in rules for the content and presentation of training courses intended to qualify
trainees for licensure under subdivision 3. The commissioner shall establish criteria in
rules for the content and presentation of training courses for lead renovation and lead
sampling technicians. Training course permit fees shall be nonrefundable and must be
submitted with each application in the amount of $500 for an initial training course, $250
for renewal of a permit for an initial training course, $250 for a refresher training course,
and $125 for renewal of a permit of a refresher training course.

Subd. 5.

Variances.

In adopting the rules required under this section, the
commissioner shall provide variance procedures for any provision in rules adopted under
this section, except for the numerical standards for the concentrations of lead in paint,
dust, bare soil, and drinking water. A variance shall be considered only according to the
procedures and criteria in Minnesota Rules, parts 4717.7000 to 4717.7050.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 32.

[144.999] LIFE-SAVING ALLERGY MEDICATION.

Subdivision 1.

Definitions.

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

(b) "Administer" means the direct application of an epinephrine auto-injector to
the body of an individual.

(c) "Authorized entity" means entities that fall in the categories of recreation camps,
colleges and universities, preschools and daycares, and any other category of entities or
organizations that the commissioner authorizes to obtain and administer epinephrine
auto-injectors without a prescription. This definition does not include a school covered
under section 121A.2207.

(d) "Commissioner" means the commissioner of health.

(e) "Epinephrine auto-injector" means a single-use device used for the automatic
injection of a premeasured dose of epinephrine into the human body.

(f) "Provide" means to supply one or more epinephrine auto-injectors to an
individual or the individual's parent, legal guardian, or caretaker.

Subd. 2.

Commissioner duties.

The commissioner may identify additional
categories of entities or organizations to be authorized entities if the commissioner
determines that individuals may come in contact with allergens capable of causing
anaphylaxis. Beginning July 1, 2016, the commissioner may annually review the
categories of authorized entities and may authorize additional categories of authorized
entities as the commissioner deems appropriate. The commissioner may contract with a
vendor to perform the review and identification of authorized entities.

Subd. 3.

Obtaining and storing epinephrine auto-injectors.

(a) Notwithstanding
section 151.37, an authorized entity may obtain and possess epinephrine auto-injectors
to be provided or administered to an individual if, in good faith, an owner, manager,
employee, or agent of an authorized entity believes that the individual is experiencing
anaphylaxis regardless of whether the individual has a prescription for an epinephrine
auto-injector. The administration of an epinephrine auto-injector in accordance with
this section is not the practice of medicine.

(b) An authorized entity may obtain epinephrine auto-injectors from pharmacies
licensed as wholesale drug distributors pursuant to section 151.47. Prior to obtaining an
epinephrine auto-injector, an owner, manager, or authorized agent of the entity must
present to the pharmacy a valid certificate of training obtained pursuant to subdivision 5.

(c) An authorized entity shall store epinephrine auto-injectors in a location readily
accessible in an emergency and in accordance with the epinephrine auto-injector's
instructions for use and any additional requirements that may be established by the
commissioner. An authorized entity shall designate employees or agents who have
completed the training program required under subdivision 5 to be responsible for the
storage, maintenance, and control of epinephrine auto-injectors obtained and possessed
by the authorized entity.

Subd. 4.

Use of epinephrine auto-injectors.

(a) An owner, manager, employee, or
agent of an authorized entity who has completed the training required under subdivision 5
may:

(1) provide an epinephrine auto-injector for immediate administration to an
individual or the individual's parent, legal guardian, or caregiver if the owner, manager,
employee, or agent believes, in good faith, the individual is experiencing anaphylaxis,
regardless of whether the individual has a prescription for an epinephrine auto-injector or
has previously been diagnosed with an allergy; or

(2) administer an epinephrine auto-injector to an individual who the owner, manager,
employee, or agent believes, in good faith, is experiencing anaphylaxis, regardless of
whether the individual has a prescription for an epinephrine auto-injector or has previously
been diagnosed with an allergy.

(b) Nothing in this section shall be construed to require any authorized entity to
maintain a stock of epinephrine auto-injectors.

Subd. 5.

Training.

(a) In order to use an epinephrine auto-injector as authorized
under subdivision 4, an individual must complete, every two years, an anaphylaxis training
program conducted by a nationally recognized organization experienced in training
laypersons in emergency health treatment, a statewide organization with experience
providing training on allergies and anaphylaxis under the supervision of board-certified
allergy medical advisors, or an entity or individual approved by the commissioner to
provide an anaphylaxis training program. The commissioner may approve specific entities
or individuals to conduct the training program or may approve categories of entities or
individuals to conduct the training program. Training may be conducted online or in
person and, at a minimum, must cover:

(1) how to recognize signs and symptoms of severe allergic reactions, including
anaphylaxis;

(2) standards and procedures for the storage and administration of an epinephrine
auto-injector; and

(3) emergency follow-up procedures.

(b) The entity or individual conducting the training shall issue a certificate to each
person who successfully completes the anaphylaxis training program. The commissioner
may develop, approve, and disseminate a standard certificate of completion. The
certificate of completion shall be valid for two years from the date issued.

Subd. 6.

Good samaritan protections.

Any act or omission taken pursuant to
this section by an authorized entity that possesses and makes available epinephrine
auto-injectors and its employees or agents, a pharmacy or manufacturer that dispenses
epinephrine auto-injectors to an authorized entity, or an individual or entity that conducts
the training described in subdivision 5 is considered "emergency care, advice, or
assistance" under section 604A.01.

Sec. 33.

Minnesota Statutes 2014, section 144A.70, subdivision 6, is amended to read:

Subd. 6.

Supplemental nursing services agency.

"Supplemental nursing services
agency" means a person, firm, corporation, partnership, or association engaged for hire
in the business of providing or procuring temporary employment in health care facilities
for nurses, nursing assistants, nurse aides, and orderlies, and other licensed health
professionals. Supplemental nursing services agency does not include an individual who
only engages in providing the individual's services on a temporary basis to health care
facilities. Supplemental nursing services agency does not include a professional home
care agency licensed as a Class A provider under section and rules adopted
thereunder 144A.471 that only provides staff to other home care providers.

Sec. 34.

Minnesota Statutes 2014, section 144A.70, is amended by adding a
subdivision to read:

Subd. 7.

Oversight.

The commissioner is responsible for the oversight of
supplemental nursing services agencies through annual unannounced surveys, complaint
investigations under sections 144A.51 to 144A.53, and other actions necessary to ensure
compliance with sections 144A.70 to 144A.74.

Sec. 35.

Minnesota Statutes 2014, section 144A.71, is amended to read:

144A.71 SUPPLEMENTAL NURSING SERVICES AGENCY
REGISTRATION.

Subdivision 1.

Duty to register.

A person who operates a supplemental nursing
services agency shall register the agency annually with the commissioner. Each separate
location of the business of a supplemental nursing services agency shall register the agency
with the commissioner. Each separate location of the business of a supplemental nursing
services agency shall have a separate registration. Fees collected under this section shall be
deposited in the state treasury and credited to the state government special revenue fund.

Subd. 2.

Application information and fee.

The commissioner shall establish forms
and procedures for processing each supplemental nursing services agency registration
application. An application for a supplemental nursing services agency registration must
include at least the following:

(1) the names and addresses of the owner or owners of the supplemental nursing
services agency;

(2) if the owner is a corporation, copies of its articles of incorporation and current
bylaws, together with the names and addresses of its officers and directors;

(3) satisfactory proof of compliance with section 144A.72, subdivision 1, clauses
(5) to (7);

(4) any other relevant information that the commissioner determines is necessary
to properly evaluate an application for registration; and

(5) the annual registration fee for a supplemental nursing services agency, which
is $891. a policy and procedure that describes how the supplemental nursing services
agency's records will be immediately available at all times to the commissioner; and

(6) a registration fee of $2,035.

If a supplemental nursing services agency fails to provide the items in this
subdivision to the department, the commissioner shall immediately suspend or refuse to
issue the supplemental nursing services agency registration. The supplemental nursing
services agency may appeal the commissioner's findings according to section 144A.475,
subdivisions 3a and 7, except that the hearing must be conducted by an administrative law
judge within 60 calendar days of the request for hearing assignment.

Subd. 3.

Registration not transferable.

A registration issued by the commissioner
according to this section is effective for a period of one year from the date of its issuance
unless the registration is revoked or suspended under section 144A.72, subdivision 2, or
unless the supplemental nursing services agency is sold or ownership or management
is transferred. When a supplemental nursing services agency is sold or ownership or
management is transferred, the registration of the agency must be voided and the new
owner or operator may apply for a new registration.

Sec. 36.

Minnesota Statutes 2014, section 144A.72, is amended to read:

144A.72 REGISTRATION REQUIREMENTS; PENALTIES.

Subdivision 1.

Minimum criteria.

(a) The commissioner shall require that, as a
condition of registration:

(1) the supplemental nursing services agency shall document that each temporary
employee provided to health care facilities currently meets the minimum licensing, training,
and continuing education standards for the position in which the employee will be working;

(2) the supplemental nursing services agency shall comply with all pertinent
requirements relating to the health and other qualifications of personnel employed in
health care facilities;

(3) the supplemental nursing services agency must not restrict in any manner the
employment opportunities of its employees;

(4) the supplemental nursing services agency shall carry medical malpractice
insurance to insure against the loss, damage, or expense incident to a claim arising out
of the death or injury of any person as the result of negligence or malpractice in the
provision of health care services by the supplemental nursing services agency or by any
employee of the agency;

(5) the supplemental nursing services agency shall carry an employee dishonesty
bond in the amount of $10,000;

(6) the supplemental nursing services agency shall maintain insurance coverage
for workers' compensation for all nurses, nursing assistants, nurse aides, and orderlies
provided or procured by the agency;

(7) the supplemental nursing services agency shall file with the commissioner of
revenue: (i) the name and address of the bank, savings bank, or savings association
in which the supplemental nursing services agency deposits all employee income tax
withholdings; and (ii) the name and address of any nurse, nursing assistant, nurse aide, or
orderly whose income is derived from placement by the agency, if the agency purports
the income is not subject to withholding;

(8) the supplemental nursing services agency must not, in any contract with any
employee or health care facility, require the payment of liquidated damages, employment
fees, or other compensation should the employee be hired as a permanent employee of a
health care facility; and

(9) the supplemental nursing services agency shall document that each temporary
employee provided to health care facilities is an employee of the agency and is not
an independent contractor.; and

(10) the supplemental nursing services agency shall retain all records for five
calendar years. All records of the supplemental nursing services agency must be
immediately available to the department.

(b) In order to retain registration, the supplemental nursing services agency must
provide services to a health care facility during the year preceding the supplemental
nursing services agency's registration renewal date.

Subd. 2.

Penalties.

A pattern of Failure to comply with this section shall subject
the supplemental nursing services agency to revocation or nonrenewal of its registration.
Violations of section 144A.74 are subject to a fine equal to 200 percent of the amount
billed or received in excess of the maximum permitted under that section.

Subd. 3.

Revocation.

Notwithstanding subdivision 2, the registration of a
supplemental nursing services agency that knowingly supplies to a health care facility a
person with an illegally or fraudulently obtained or issued diploma, registration, license,
certificate, or background study shall be revoked by the commissioner. The commissioner
shall notify the supplemental nursing services agency 15 days in advance of the date
of revocation.

Subd. 4.

Hearing.

(a) No supplemental nursing services agency's registration
may be revoked without a hearing held as a contested case in accordance with chapter
14. The hearing must commence within 60 days after the proceedings are initiated
section 144A.475, subdivisions 3a and 7, except the hearing must be conducted by an
administrative law judge within 60 calendar days of the request for assignment.

(b) If a controlling person has been notified by the commissioner of health that the
supplemental nursing services agency will not receive an initial registration or that a
renewal of the registration has been denied, the controlling person or a legal representative
on behalf of the supplemental nursing services agency may request and receive a hearing
on the denial. This The hearing shall be held as a contested case in accordance with
chapter 14 a contested case in accordance with section 144A.475, subdivisions 3a and 7,
except the hearing must be conducted by an administrative law judge within 60 calendar
days of the request for assignment.

Subd. 5.

Period of ineligibility.

(a) The controlling person of a supplemental
nursing services agency whose registration has not been renewed or has been revoked
because of noncompliance with the provisions of sections 144A.70 to 144A.74 shall not
be eligible to apply for nor will be granted a registration for five years following the
effective date of the nonrenewal or revocation.

(b) The commissioner shall not issue or renew a registration to a supplemental
nursing services agency if a controlling person includes any individual or entity who was
a controlling person of a supplemental nursing services agency whose registration was
not renewed or was revoked as described in paragraph (a) for five years following the
effective date of nonrenewal or revocation.

Sec. 37.

Minnesota Statutes 2014, section 144A.73, is amended to read:

144A.73 COMPLAINT SYSTEM.

The commissioner shall establish a system for reporting complaints against a
supplemental nursing services agency or its employees. Complaints may be made by
any member of the public. Written complaints must be forwarded to the employer of
each person against whom a complaint is made. The employer shall promptly report to
the commissioner any corrective action taken Complaints against a supplemental nursing
services agency shall be investigated by the Office of Health Facility Complaints under
Minnesota Statutes, sections 144A.51 to 144A.53.

Sec. 38.

Minnesota Statutes 2014, section 144D.01, is amended by adding a
subdivision to read:

Subd. 3a.

Direct-care staff.

"Direct-care staff" means staff and employees who
provide home care services listed in section 144A.471, subdivisions 6 and 7.

Sec. 39.

[144D.066] ENFORCEMENT OF DEMENTIA CARE TRAINING
REQUIREMENTS.

Subdivision 1.

Enforcement.

(a) The commissioner shall enforce the dementia care
training standards for staff working in housing with services settings and for housing
managers according to clauses (1) to (3):

(1) for dementia care training requirements in section 144D.065, the commissioner
shall review training records as part of the home care provider survey process for direct
care staff and supervisors of direct care staff, in accordance with section 144A.474. The
commissioner may also request and review training records at any time during the year;

(2) for dementia care training standards in section 144D.065, the commissioner
shall review training records for maintenance, housekeeping, and food service staff and
other staff not providing direct care working in housing with services settings as part of
the housing with services registration application and renewal application process in
accordance with section 144D.03. The commissioner may also request and review training
records at any time during the year; and

(3) for housing managers, the commissioner shall review the statement verifying
compliance with the required training described in section 144D.10, paragraph (d),
through the housing with services registration application and renewal application process
in accordance with section 144D.03. The commissioner may also request and review
training records at any time during the year.

(b) The commissioner shall specify the required forms and what constitutes sufficient
training records for the items listed in paragraph (a), clauses (1) to (3).

Subd. 2.

Fines for noncompliance.

(a) Beginning January 1, 2017, the
commissioner may impose a $200 fine for every staff person required to obtain dementia
care training who does not have training records to show compliance. For violations of
subdivision 1, paragraph (a), clause (1), the fine will be imposed upon the home care
provider, and may be appealed under the contested case procedure in section 144A.475,
subdivisions 3a, 4, and 7. For violations of subdivision 1, paragraph (a), clauses (2) and
(3), the fine will be imposed on the housing with services registrant and may be appealed
under the contested case procedure in section 144A.475, subdivisions 3a, 4, and 7. Prior
to imposing the fine, the commissioner must allow two weeks for staff to complete the
required training. Fines collected under this section shall be deposited in the state treasury
and credited to the state government special revenue fund.

(b) The housing with services registrant and home care provider must allow
for the required training as part of employee and staff duties. Imposition of a fine
by the commissioner does not negate the need for the required training. Continued
noncompliance with the requirements of sections 144D.065 and 144D.10 may result in
revocation or nonrenewal of the housing with services registration or home care license.
The commissioner shall make public the list of all housing with services establishments
that have complied with the training requirements.

Subd. 3.

Technical assistance.

From January 1, 2016, to December 31, 2016,
the commissioner shall provide technical assistance instead of imposing fines for
noncompliance with the training requirements. During the year of technical assistance,
the commissioner shall review the training records to determine if the records meet the
requirements and inform the home care provider. The commissioner shall also provide
information about available training resources.

Sec. 40.

Minnesota Statutes 2014, section 144E.50, is amended to read:

144E.50 EMERGENCY MEDICAL SERVICES FUND.

Subdivision 1.

Citation.

This section is the "Minnesota Emergency Medical
Services System Support Act."

Subd. 2.

Establishment and purpose.

In order to develop, maintain, and
improve regional emergency medical services systems, the Emergency Medical Services
Regulatory Board commissioner shall establish an emergency medical services system
fund. The fund shall be used for the general purposes of promoting systematic,
cost-effective delivery of emergency medical and trauma care throughout the state;
identifying common local, regional, and state emergency medical system needs and
providing assistance in addressing those needs; providing discretionary grants for
emergency medical service projects with potential regionwide significance; providing for
public education about emergency medical care; promoting the exchange of emergency
medical care information; ensuring the ongoing coordination of regional emergency
medical services systems; and establishing and maintaining supporting training standards
to ensure consistent quality of emergency medical services throughout the state.

Subd. 3.

Definition Definitions.

For purposes of this section, "board" means the
Emergency Medical Services Regulatory Board the following terms have the meanings
given them.

(a) "Commissioner" means the commissioner of health.

(b) "Grantee" means a public or private entity that receives a regional grant.

(c) "Regional emergency medical services programs" include the following regional
locations:

(1) Region One, consisting of the counties of Beltrami, Clearwater, Hubbard,
Kittson, Lake of the Woods, Mahnomen, Marshall, Norman, Pennington, Polk, Red
Lake, and Roseau;

(2) Region Two, consisting of the counties of Becker, Clay, Douglas, Grant, Otter
Tail, Pope, Stevens, Traverse, and Wilkin;

(3) Region Three, consisting of the counties of Aitkin, Carlton, Cook, Itasca,
Koochiching, Lake, and St. Louis;

(4) Region Four, consisting of the counties of Benton, Cass, Crow Wing, Kanabec,
Mille Lacs, Morrison, Pine, Sherburne, Stearns, Todd, Wadena, and Wright;

(5) Region Five, consisting of the counties of Big Stone, Chippewa, Cottonwood,
Jackson, Kandiyohi, Lac Qui Parle, Lincoln, Lyon, McLeod, Meeker, Murray, Nobles,
Pipestone, Redwood, Renville, Rock, Swift, and Yellow Medicine;

(6) Region Six, consisting of the counties of Blue Earth, Brown, Faribault, Le Sueur,
Martin, Nicollet, Sibley, Waseca, and Watonwan;

(7) Region Seven, consisting of the counties of Dodge, Fillmore, Freeborn,
Goodhue, Houston, Mower, Olmsted, Rice, Steele, Wabasha, and Winona; and

(8) Region Eight, consisting of the counties of Anoka, Carver, Chisago, Dakota,
Hennepin, Isanti, Ramsey, Scott, and Washington.

(d) "Regional emergency medical services program grants" or "regional grants"
means grant funds overseen and distributed according to subdivisions 4 and 5, and section
169.686, subdivision 3.

(e) "Time-sensitive syndromes" means medical conditions for which time is critical
to the patient's survival and health outcome.

Subd. 4.

Use and restrictions.

Designated regional emergency medical services
systems (a) Grantees may use regional emergency medical services system program
funds to support local and regional emergency medical services as determined within the
region, with particular emphasis given to supporting and improving emergency trauma
and cardiac care and training care of time-sensitive syndromes. No part of a region's
share of the fund grant funds may be used to directly subsidize any ambulance service
operations or rescue service operations or to purchase any vehicles or parts of vehicles for
an ambulance service or a rescue service.

(b) Each grantee shall provide oversight of regional emergency medical services
programs by establishing an oversight committee consisting of representatives appointed
by the county board of each of the counties in the region and representatives appointed by
local emergency medical services organizations.

Subd. 5.

Distribution.

Money from the fund shall be distributed according to
this subdivision. Ninety-five percent of the fund shall be distributed annually on a
contract for services basis with each of the eight regional emergency medical services
systems designated by the board. The systems shall be governed by a body consisting of
appointed representatives from each of the counties in that region and shall also include
representatives from emergency medical services organizations. The board shall contract
with a regional entity only if the contract proposal satisfactorily addresses proposed
emergency medical services activities in The commissioner may award up to eight
regional emergency medical services program grants. The commissioner shall offer grant
agreements to one applicant per region, following the review of grant applications and
approval of an acceptable grant application. Grant applications must satisfactorily address
the following areas: personnel training, transportation coordination, public safety agency
cooperation, communications systems maintenance and development, public involvement,
health care facilities involvement, and system management. If each of the regional
emergency medical services systems submits a satisfactory contract proposal, then this part
of the Funds from the emergency medical services fund shall be distributed evenly among
the regions grantees. If one or more of the regions applicants does not contract apply for
the full amount of its even share or if its proposal application is unsatisfactory, then the
board commissioner may reallocate the unused funds to the remaining regions grantees on
a pro rata basis. Five percent of the fund shall be used by the board to support regionwide
reporting systems and to provide other regional administration and technical assistance.

Subd. 6.

Audits.

(a) Each regional emergency medical services board designated by
the board shall be audited either annually or biennially by an independent auditor who
is either a state or local government auditor or a certified public accountant who meets
the independence standards specified by the General Accounting Office for audits of
governmental organizations, programs, activities, and functions. The audit shall cover
all funds received by the regional board, including but not limited to, funds appropriated
under this section, section 144E.52, and section 169.686, subdivision 3. Expenses
associated with the audit are the responsibility of the regional board.

(b) A biennial audit specified in paragraph (a) shall be performed within 60 days
following the close of the biennium. Copies of the audit and any accompanying materials
shall be filed by October 1 of each odd-numbered year, beginning in 1999, with the board,
the legislative auditor, and the state auditor.

(c) An annual audit specified in paragraph (a) shall be performed within 120 days
following the close of the regional emergency medical services board's fiscal year. Copies
of the audit and any accompanying materials shall be filed within 150 days following the
close of the regional emergency medical services board's fiscal year, beginning in the year
2000, with the board, the legislative auditor, and the state auditor.

(d) If the audit is not conducted as required in paragraph (a) or copies filed as
required in paragraph (b) or (c), or if the audit determines that funds were not spent in
accordance with this chapter, the board shall immediately reduce funding to the regional
emergency medical services board as follows:

(1) if an audit was not conducted or if an audit was conducted but copies were not
provided as required, funding shall be reduced by up to 100 percent; and

(2) if an audit was conducted and copies provided, and the audit identifies
expenditures made that are not in compliance with this chapter, funding shall be reduced
by the amount in question plus ten percent.

A funding reduction under this paragraph is effective for the fiscal year in which the
reduction is taken and the following fiscal year.

(e) The board shall distribute any funds withheld from a regional board under
paragraph (d) to the remaining regional boards on a pro rata basis.

Sec. 41.

Minnesota Statutes 2014, section 144F.01, subdivision 5, is amended to read:

Subd. 5.

Use of levy proceeds.

The proceeds of property taxes levied under this
section must be used to support the providing of out-of-hospital emergency medical
services including, but not limited to, first responder or rescue squads recognized by
the district, ambulance services licensed under chapter 144E and recognized by the
district, medical control functions set out in chapter 144E, communications equipment and
systems, and programs of regional emergency medical services authorized by regional
boards described in section 144E.52.

Sec. 42.

Minnesota Statutes 2014, section 145.928, is amended by adding a subdivision
to read:

Subd. 15.

Promising strategies.

For all grants awarded under this section, the
commissioner shall consider applicants that present evidence of a promising strategy to
accomplish the applicant's objective. A promising strategy shall be given the same weight
as a research or evidence-based strategy.

Sec. 43.

Minnesota Statutes 2014, section 145A.131, subdivision 1, is amended to read:

Subdivision 1.

Funding formula for community health boards.

(a) Base funding
for each community health board eligible for a local public health grant under section
145A.03, subdivision 7, shall be determined by each community health board's fiscal year
2003 allocations, prior to unallotment, for the following grant programs: community
health services subsidy; state and federal maternal and child health special projects grants;
family home visiting grants; TANF MN ENABL grants; TANF youth risk behavior grants;
and available women, infants, and children grant funds in fiscal year 2003, prior to
unallotment, distributed based on the proportion of WIC participants served in fiscal year
2003 within the CHS service area.

(b) Base funding for a community health board eligible for a local public health
grant under section 145A.03, subdivision 7, as determined in paragraph (a), shall be
adjusted by the percentage difference between the base, as calculated in paragraph (a),
and the funding available for the local public health grant.

(c) Multicounty or multicity community health boards shall receive a local
partnership base of up to $5,000 per year for each county or city in the case of a multicity
community health board included in the community health board.

(d) The State Community Health Advisory Committee may recommend a formula
to the commissioner to use in distributing state and federal funds to community health
boards organized and operating under sections 145A.03 to 145A.131 to achieve locally
identified priorities under section 145A.04, subdivision 1a, for use in distributing funds to
community health boards beginning January 1, 2006, and thereafter.

(e) Notwithstanding any adjustment in paragraph (b), community health boards, all
or a portion of which are located outside of the counties of Anoka, Chisago, Carver,
Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, Washington, and Wright, are eligible
to receive an increase equal to ten percent of the grant award to the community health
board under paragraph (a) starting July 1, 2015. The increase in calendar year 2015 shall
be prorated for the last six months of the year. For calendar years beginning on or after
January 1, 2016, the amount distributed under this paragraph shall be adjusted each year
based on available funding and the number of eligible community health boards.

Sec. 44.

Minnesota Statutes 2014, section 149A.20, subdivision 5, is amended to read:

Subd. 5.

Examinations.

After having met the educational requirements of
subdivision 4, a person must attain a passing score on the National Board Examination
administered by the Conference of Funeral Service Examining Boards of the United
States, Inc. or any other examination that, in the determination of the commissioner,
adequately and accurately assesses the knowledge and skills required to practice
mortuary science. In addition, a person must attain a passing score on the state licensing
examination administered by or on behalf of the commissioner. The state examination
shall encompass the laws and rules of Minnesota that pertain to the practice of mortuary
science. The commissioner shall make available copies of all pertinent laws and rules
prior to administration of the state licensing examination. If a passing score is not attained
on the state examination, the individual must wait two weeks before they can retake
the examination.

Sec. 45.

Minnesota Statutes 2014, section 149A.20, subdivision 6, is amended to read:

Subd. 6.

Internship.

(a) A person who attains a passing score on both examinations
in subdivision 5 must complete a registered internship under the direct supervision of an
individual currently licensed to practice mortuary science in Minnesota. Interns must file
with the commissioner:

(1) the appropriate fee; and

(2) a registration form indicating the name and home address of the intern, the
date the internship begins, and the name, license number, and business address of the
supervising mortuary science licensee.

(b) Any changes in information provided in the registration must be immediately
reported to the commissioner. The internship shall be a minimum of one calendar year
and a maximum of three calendar years in duration; 2,080 hours to be completed within a
three-year period, however, the commissioner may waive up to three months 520 hours of
the internship time requirement upon satisfactory completion of a clinical or practicum
in mortuary science administered through the program of mortuary science of the
University of Minnesota or a substantially similar program approved by the commissioner.
Registrations must be renewed on an annual basis if they exceed one calendar year. During
the internship period, the intern must be under the direct supervision of a person holding a
current license to practice mortuary science in Minnesota. An intern may be registered
under only one licensee at any given time and may be directed and supervised only by
the registered licensee. The registered licensee shall have only one intern registered at
any given time. The commissioner shall issue to each registered intern a registration
permit that must be displayed with the other establishment and practice licenses. While
under the direct supervision of the licensee, the intern must actively participate in the
embalming of at least 25 dead human bodies and in the arrangements for and direction of
at least 25 funerals complete 25 case reports in each of the following areas: embalming,
funeral arrangements, and services. Case reports, on forms provided by the commissioner,
shall be completed by the intern, signed by the supervising licensee, and filed with the
commissioner for at least 25 embalmings and funerals in which the intern participates prior
to the completion of the internship. Information contained in these reports that identifies
the subject or the family of the subject embalmed or the subject or the family of the subject
of the funeral shall be classified as licensing data under section 13.41, subdivision 2.

Sec. 46.

Minnesota Statutes 2014, section 149A.40, subdivision 11, is amended to read:

Subd. 11.

Continuing education.

The commissioner may shall require 15
continuing education hours for renewal of a license to practice mortuary science. Nine
of the hours must be in the following areas: body preparation, care, or handling, 3 CE
hours; professional practices, 3 CE hours; regulation and ethics, 3 CE hours. Continuing
education hours shall be reported to the commissioner every other year based on the
licensee's license number. Licensees whose license ends in an odd number must report CE
hours at renewal time every odd year. If a licensee's license ends in an even number, the
licensee must report the licensee's CE hours at renewal time every even year.

Sec. 47.

Minnesota Statutes 2014, section 149A.65, is amended to read:

149A.65 FEES.

Subdivision 1.

Generally.

This section establishes the fees for registrations,
examinations, initial and renewal licenses, and late fees authorized under the provisions
of this chapter.

Subd. 2.

Mortuary science fees.

Fees for mortuary science are:

(1) $50 $75 for the initial and renewal registration of a mortuary science intern;

(2) $100 $125 for the mortuary science examination;

(3) $125 $200 for issuance of initial and renewal mortuary science licenses;

(4) $25 $100 late fee charge for a license renewal; and

(5) $200 $250 for issuing a mortuary science license by endorsement.

Subd. 3.

Funeral directors.

The license renewal fee for funeral directors is $125
$200. The late fee charge for a license renewal is $25 $100.

Subd. 4.

Funeral establishments.

The initial and renewal fee for funeral
establishments is $300 $425. The late fee charge for a license renewal is $25 $100.

Subd. 5.

Crematories.

The initial and renewal fee for a crematory is $300 $425.
The late fee charge for a license renewal is $25 $100.

Subd. 6.

Alkaline hydrolysis facilities.

The initial and renewal fee for an alkaline
hydrolysis facility is $300 $425. The late fee charge for a license renewal is $25 $100.

Subd. 7.

State government special revenue fund.

Fees collected by the
commissioner under this section must be deposited in the state treasury and credited to
the state government special revenue fund.

Sec. 48.

Minnesota Statutes 2014, section 149A.92, subdivision 1, is amended to read:

Subdivision 1.

Exemption Establishment update.

All funeral establishments
having a preparation and embalming room that has not been used for the preparation or
embalming of a dead human body in the 12 calendar months prior to July 1, 1997, are
exempt from the minimum requirements in subdivisions 2 to 6, except as provided in this
section. At the time that ownership of a funeral establishment changes, the physical
location of the establishment changes, or the building housing the funeral establishment or
business space of the establishment is remodeled the existing preparation and embalming
room must be brought into compliance with the minimum standards in this section and in
accordance with subdivision 11.

Sec. 49.

Minnesota Statutes 2014, section 149A.97, subdivision 7, is amended to read:

Subd. 7.

Reports to commissioner.

Every funeral provider lawfully doing business
in Minnesota that accepts funds under subdivision 2 must make a complete annual report
to the commissioner. The reports may be on forms provided by the commissioner or
substantially similar forms containing, at least, identification and the state of each trust
account, including all transactions involving principal and accrued interest, and must be
filed by March 31 of the calendar year following the reporting year along with a filing fee
of $25 for each report. Fees shall be paid to the commissioner of management and budget,
state of Minnesota, for deposit in the state government special revenue fund in the state
treasury. Reports must be signed by an authorized representative of the funeral provider
and notarized under oath. All reports to the commissioner shall be reviewed for account
inaccuracies or possible violations of this section. If the commissioner has a reasonable
belief to suspect that there are account irregularities or possible violations of this section,
the commissioner shall report that belief, in a timely manner, to the state auditor or other
state agencies as determined by the commissioner. The commissioner may require a
funeral provider reporting preneed trust accounts under this section to arrange for and
pay an independent third-party auditing firm to complete an audit of the preneed trust
accounts every other year. The funeral provider shall report the findings of the audit to the
commissioner by March 31 of the calendar year following the reporting year. This report is
in addition to the annual report. The commissioner shall also file an annual letter with the
state auditor disclosing whether or not any irregularities or possible violations were detected
in review of the annual trust fund reports filed by the funeral providers. This letter shall be
filed with the state auditor by May 31 of the calendar year following the reporting year.

Sec. 50.

Minnesota Statutes 2014, section 157.16, is amended to read:

157.16 LICENSES REQUIRED; FEES.

Subdivision 1.

License required annually.

A license is required annually for every
person, firm, or corporation engaged in the business of conducting a food and beverage
service establishment, youth camp, hotel, motel, lodging establishment, public pool,
or resort. Any person wishing to operate a place of business licensed in this section
shall first make application, pay the required fee specified in this section, and receive
approval for operation, including plan review approval. Special event food stands are
not required to submit plans. Nonprofit organizations operating a special event food
stand with multiple locations at an annual one-day event shall be issued only one license.
Application shall be made on forms provided by the commissioner and shall require the
applicant to state the full name and address of the owner of the building, structure, or
enclosure, the lessee and manager of the food and beverage service establishment, hotel,
motel, lodging establishment, public pool, or resort; the name under which the business is
to be conducted; and any other information as may be required by the commissioner to
complete the application for license.

Subd. 2.

License renewal.

Initial and renewal licenses for all food and beverage
service establishments, youth camps, hotels, motels, lodging establishments, public pools,
and resorts shall be issued on an annual basis. Any person who operates a place of business
after the expiration date of a license or without having submitted an application and paid
the fee shall be deemed to have violated the provisions of this chapter and shall be subject
to enforcement action, as provided in the Health Enforcement Consolidation Act, sections
144.989 to 144.993. In addition, a penalty of $60 shall be added to the total of the license
fee for any food and beverage service establishment operating without a license as a mobile
food unit, a seasonal temporary or seasonal permanent food stand, or a special event food
stand, and a penalty of $120 shall be added to the total of the license fee for all restaurants,
food carts, hotels, motels, lodging establishments, youth camps, public pools, and resorts
operating without a license for a period of up to 30 days. A late fee of $360 shall be added
to the license fee for establishments operating more than 30 days without a license.

Subd. 2a.

Food manager certification.

An applicant for certification or certification
renewal as a food manager must submit to the commissioner a $35 nonrefundable
certification fee payable to the Department of Health. The commissioner shall issue a
duplicate certificate to replace a lost, destroyed, or mutilated certificate if the applicant
submits a completed application on a form provided by the commissioner for a duplicate
certificate and pays $20 to the department for the cost of duplication.

Subd. 3.

Establishment fees; definitions.

(a) The following fees are required
for food and beverage service establishments, youth camps, hotels, motels, lodging
establishments, public pools, and resorts licensed under this chapter. Food and beverage
service establishments must pay the highest applicable fee under paragraph (d), clause
(1), (2), (3), or (4), and establishments serving alcohol must pay the highest applicable
fee under paragraph (d), clause (6) or (7). The license fee for new operators previously
licensed under this chapter for the same calendar year is one-half of the appropriate annual
license fee, plus any penalty that may be required. The license fee for operators opening
on or after October 1 is one-half of the appropriate annual license fee, plus any penalty
that may be required.

(b) Each food and beverage establishment shall pay the applicable fees specified
in section 15.445.

(b) (c) All food and beverage service establishments, except special event food
stands, and all hotels, motels, lodging establishments, public pools, and resorts shall pay
an annual base fee of $150, except for establishments that paid for a food and beverage
establishment license under paragraph (b).

(c) A special event food stand shall pay a flat fee of $50 annually. "Special event
food stand" means a fee category where food is prepared or served in conjunction with
celebrations, county fairs, or special events from a special event food stand as defined
in section 157.15.

(d) In addition to the base fee in paragraph (b) (c), each food and beverage service
establishment, other than a special event food stand and a school concession stand, and
each hotel, motel, lodging establishment, public pool, and resort shall pay an additional
annual fee for each applicable fee category, additional food service, or required additional
inspection specified in this paragraph:

(1) Limited food menu selection, $60. "Limited food menu selection" means a fee
category that provides one or more of the following:

(i) prepackaged food that receives heat treatment and is served in the package;

(ii) frozen pizza that is heated and served;

(iii) a continental breakfast such as rolls, coffee, juice, milk, and cold cereal;

(iv) soft drinks, coffee, or nonalcoholic beverages; or

(v) cleaning for eating, drinking, or cooking utensils, when the only food served
is prepared off site.

(2) Small establishment, including boarding establishments, $120. "Small
establishment" means a fee category that has no salad bar and meets one or more of
the following:

(i) possesses food service equipment that consists of no more than a deep fat fryer, a
grill, two hot holding containers, and one or more microwave ovens;

(ii) serves dipped ice cream or soft serve frozen desserts;

(iii) serves breakfast in an owner-occupied bed and breakfast establishment;

(iv) is a boarding establishment; or

(v) meets the equipment criteria in clause (3), item (i) or (ii), and has a maximum
patron seating capacity of not more than 50.

(3) Medium establishment, $310. "Medium establishment" means a fee category
that meets one or more of the following:

(i) possesses food service equipment that includes a range, oven, steam table, salad
bar, or salad preparation area;

(ii) possesses food service equipment that includes more than one deep fat fryer,
one grill, or two hot holding containers; or

(iii) is an establishment where food is prepared at one location and served at one or
more separate locations.

Establishments meeting criteria in clause (2), item (v), are not included in this fee
category.

(4) Large establishment, $540. "Large establishment" means either:

(i) a fee category that (A) meets the criteria in clause (3), items (i) or (ii), for a
medium establishment, (B) seats more than 175 people, and (C) offers the full menu
selection an average of five or more days a week during the weeks of operation; or

(ii) a fee category that (A) meets the criteria in clause (3), item (iii), for a medium
establishment, and (B) prepares and serves 500 or more meals per day.

(5) Other food and beverage service, including food carts, mobile food units,
seasonal temporary food stands, and seasonal permanent food stands, $60.

(6) Beer or wine table service, $60. "Beer or wine table service" means a fee
category where the only alcoholic beverage service is beer or wine, served to customers
seated at tables.

(7) Alcoholic beverage service, other than beer or wine table service, $165.

"Alcohol beverage service, other than beer or wine table service" means a fee category
where alcoholic mixed drinks are served or where beer or wine are served from a bar.

(8) (1) Lodging per sleeping accommodation unit, $10, including hotels, motels,
lodging establishments, and resorts, up to a maximum of $1,000. "Lodging per sleeping
accommodation unit" means a fee category including the number of guest rooms, cottages,
or other rental units of a hotel, motel, lodging establishment, or resort; or the number of
beds in a dormitory.

(9) (2) First public pool, $325; each additional public pool, $175. "Public pool"
means a fee category that has the meaning given in section 144.1222, subdivision 4.

(10) (3) First spa, $175; each additional spa, $100. "Spa pool" means a fee category
that has the meaning given in Minnesota Rules, part 4717.0250, subpart 9.

(11) (4) Private sewer or water, $60. "Individual private water" means a fee category
with a water supply other than a community public water supply as defined covered in
Minnesota Rules, chapter 4720. "Individual private sewer" means a fee category with an
individual sewage treatment system which uses subsurface treatment and disposal.

(12) Additional food service, $150. "Additional food service" means a location at
a food service establishment, other than the primary food preparation and service area,
used to prepare or serve food to the public. Additional food service does not apply to
school concession stands.

(13) Additional inspection fee, $360. "Additional inspection fee" means a fee to
conduct the second inspection each year for elementary and secondary education facility
school lunch programs when required by the Richard B. Russell National School Lunch
Act.

(e) Youth camps shall pay an annual single fee for food and lodging as follows:

(1) camps with up to 99 campers, $325;

(2) camps with 100 to 199 campers, $550; and

(3) camps with 200 or more campers, $750.

(f) A youth camp that pays fees under paragraph (b) or (d) is not required to pay
fees under paragraph (e).

Subd. 3a.

Construction plan review.

(e) (a) A fee for review of construction plans
must accompany the initial license application for restaurants, hotels, motels, lodging
establishments, resorts, seasonal food stands, and mobile food units. The fee for this
construction plan review is as follows:

Service Area	Type	Fee
Food	limited food menu category 1 establishment	$275
	small category 2 establishment	$400
	medium category 3 establishment	$450
	large food category 4 establishment	$500
	additional food service	$150
Transient food service Temporary food establishment	food cart	$250
	seasonal permanent food stand	$250
	seasonal temporary food stand	$250
	mobile food unit	$350
Alcohol	beer or wine table service	$150
	alcohol service from bar	$250
Lodging	less than 25 rooms	$375
	25 to less than 100 rooms	$400
	100 rooms or more	$500
	less than five cabins	$350
	five to less than ten cabins	$400
	ten cabins or more	$450

(f) (b) When existing food and beverage service establishments, hotels, motels,
lodging establishments, resorts, seasonal food stands, and mobile food units are
extensively remodeled, a fee must be submitted with the remodeling plans. The fee for
this construction plan review is as follows:

Service Area	Type	Fee
Food	limited food menu category 1 establishment	$250
	small category 2 establishment	$300
	medium category 3 establishment	$350
	large food category 4 establishment	$400
	additional food service	$150
Transient food service Temporary food establishment	food cart	$250
	seasonal permanent food stand	$250
	seasonal temporary food stand	$250
	mobile food unit	$250
Alcohol	beer or wine table service	$150
	alcohol service from bar	$250
Lodging	less than 25 rooms	$250
	25 to less than 100 rooms	$300
	100 rooms or more	$450
	less than five cabins	$250
	five to less than ten cabins	$350
	ten cabins or more	$400

(g) (c) Special event food stands are not required to submit construction or
remodeling plans for review.

(h) Youth camps shall pay an annual single fee for food and lodging as follows:

(1) camps with up to 99 campers, $325;

(2) camps with 100 to 199 campers, $550; and

(3) camps with 200 or more campers, $750.

(i) A youth camp which pays fees under paragraph (d) is not required to pay fees
under paragraph (h).

Subd. 3a. 3b.

Statewide hospitality fee.

Every person, firm, or corporation that
operates a licensed boarding establishment, food and beverage service establishment,
seasonal temporary or permanent food stand, special event food stand, mobile food unit,
food cart, resort, hotel, motel, or lodging establishment in Minnesota must submit to the
commissioner a $35 annual statewide hospitality fee for each licensed activity. The fee
for establishments licensed by the Department of Health is required at the same time the
licensure fee is due. For establishments licensed by local governments, the fee is due by
July 1 of each year.

Subd. 4.

Posting requirements.

Every food and beverage service establishment,
for-profit youth camp, hotel, motel, lodging establishment, public pool, or resort must
have the original license posted in a conspicuous place at the establishment. Mobile food
units, food carts, and seasonal temporary food stands shall be issued decals with the
initial license and each calendar year with license renewals. The current license year
decal must be placed on the unit or stand in a location determined by the commissioner.
Decals are not transferable.

Subd. 5.

Special revenue fund.

Fees collected under this section shall be deposited
in the state treasury and credited to the state government special revenue fund.

Sec. 51.

Minnesota Statutes 2014, section 169.686, subdivision 3, is amended to read:

Subd. 3.

Appropriation; special account.

The fines collected for a violation of
subdivision 1 must be deposited in the state treasury and credited to a special account to
be known as the emergency medical services relief account. Ninety percent of the money
in the account shall be distributed appropriated to the commissioner of health for the eight
regional emergency medical services systems designated by the Emergency Medical
Services Regulatory Board under section 144E.50, for personnel education and training,
equipment and vehicle purchases, and operational expenses of emergency life support
transportation services program grants as specified in section 144E.50, subdivision 3,
for the purposes specified in section 144E.50, subdivision 4. The board of directors of
each entity receiving a regional emergency medical services region program grant shall
establish criteria for funding. Ten percent of the money in the account shall be distributed
to the commissioner of public safety for the expenses of traffic safety educational
programs conducted by State Patrol troopers.

Sec. 52. WORKING GROUP ON VIOLENCE AGAINST ASIAN WOMEN
AND CHILDREN.

Subdivision 1.

Establishment.

The commissioner of health, in collaboration with
the commissioners of human services and public safety, and the Council on Asian-Pacific
Minnesotans, shall create a multidisciplinary working group to address violence against
Asian women and children by July 1, 2015.

Subd. 2.

The working group.

The commissioner of health, in collaboration with
the commissioners of human services and public safety, and the Council on Asian-Pacific
Minnesotans, shall appoint 15 members representing the following groups to participate in
the working group:

(1) advocates;

(2) survivors;

(3) service providers;

(4) community leaders;

(5) city and county attorneys;

(6) city officials;

(7) law enforcement; and

(8) health professionals.

At least eight of the members of the working group must be from the Asian-Pacific
Islander community.

Subd. 3.

Duties.

(a) The working group must study the nature, scope, and prevalence
of violence against Asian women and children in Minnesota, including domestic violence,
trafficking, international abusive marriage, stalking, sexual assault, and other violence.

(b) The working group may:

(1) evaluate the adequacy and effectiveness of existing support programs;

(2) conduct a needs assessment of culturally and linguistically appropriate programs
and interventions;

(3) identify barriers in delivering services to Asian women and children;

(4) identify promising prevention and intervention strategies in addressing violence
against Asian women and children; and

(5) propose mechanisms to collect and monitor data on violence against Asian
women and children.

Subd. 4.

Chair.

The commissioner of health shall designate one member to serve as
chair of the working group.

Subd. 5.

First meeting.

The chair shall convene the first meeting by September
10, 2015.

Subd. 6.

Compensation; expense reimbursement.

Members of the working group
shall be compensated and reimbursed for expenses under Minnesota Statutes, section
15.059, subdivision 3.

Subd. 7.

Report.

By January 1, 2017, the working group must submit its
recommendations and any draft legislation necessary to implement those recommendations
to the commissioners of health, human services, and public safety, and the Council on
Asian-Pacific Minnesotans. The Council on Asian-Pacific Minnesotans shall submit a
report of findings and recommendations to the chair and ranking minority members of the
committees in the house of representatives and senate having jurisdiction over health and
human services and public safety by February 15, 2017.

Subd. 8.

Sunset.

The working group on violence against Asian women and children
sunsets the day after the Council on Asian-Pacific Minnesotans submits the report under
subdivision 7.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 53. REVISOR'S INSTRUCTION.

The revisor of statutes shall recodify Minnesota Statutes, section 144E.50, as a
section in Minnesota Statutes, chapter 144, and make conforming changes consistent
with the renumbering.

Sec. 54. REPEALER.

Minnesota Statutes 2014, section 144E.52, is repealed.

ARTICLE 8

HEALTH CARE DELIVERY

Section 1.

[62A.67] SHORT TITLE.

Sections 62A.67 to 62A.672 may be cited as the "Minnesota Telemedicine Act."

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 2.

[62A.671] DEFINITIONS.

Subdivision 1.

Applicability.

For purposes of sections 62A.67 to 62A.672, the
terms defined in this section have the meanings given.

Subd. 2.

Distant site.

"Distant site" means a site at which a licensed health care
provider is located while providing health care services or consultations by means of
telemedicine.

Subd. 3.

Health care provider.

"Health care provider" has the meaning provided
in section 62A.63, subdivision 2.

Subd. 4.

Health carrier.

"Health carrier" has the meaning provided in section
62A.011, subdivision 2.

Subd. 5.

Health plan.

"Health plan" means a health plan as defined in section
62A.011, subdivision 3, and includes dental plans as defined in section 62Q.76, subdivision
3, but does not include dental plans that provide indemnity-based benefits, regardless of
expenses incurred and are designed to pay benefits directly to the policyholder.

Subd. 6.

Licensed health care provider.

"Licensed health care provider" means a
health care provider who is:

(1) licensed under chapter 147, 147A, 148, 148B, 148E, 148F, 150A, or 153; a
mental health professional as defined under section 245.462, subdivision 18, or 245.4871,
subdivision 27; or vendor of medical care defined in section 256B.02, subdivision 7; and

(2) authorized within their respective scope of practice to provide the particular
service with no supervision or under general supervision.

Subd. 7.

Originating site.

"Originating site" means a site including, but not limited
to, a health care facility at which a patient is located at the time health care services are
provided to the patient by means of telemedicine.

Subd. 8.

Store-and-forward technology.

"Store-and-forward technology" means
the transmission of a patient's medical information from an originating site to a health care
provider at a distant site without the patient being present, or the delivery of telemedicine
that does not occur in real time via synchronous transmissions.

Subd. 9.

Telemedicine.

"Telemedicine" means the delivery of health care services
or consultations while the patient is at an originating site and the licensed health care
provider is at a distant site. A communication between licensed health care providers
that consists solely of a telephone conversation, e-mail, or facsimile transmissions does
not constitute telemedicine consultations or services. Telemedicine may be provided by
means of real-time two-way, interactive audio and visual communications, including the
application of secure video conferencing or store-and-forward technology to provide or
support health care delivery, which facilitate the assessment, diagnosis, consultation,
treatment, education, and care management of a patient's health care.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 3.

[62A.672] COVERAGE OF TELEMEDICINE SERVICES.

Subdivision 1.

Coverage of telemedicine.

(a) A health plan sold, issued, or renewed
by a health carrier for which coverage of benefits begins on or after January 1, 2017, shall
include coverage for telemedicine benefits in the same manner as any other benefits covered
under the policy, plan, or contract, and shall comply with the regulations of this section.

(b) Nothing in this section shall be construed to:

(1) require a health carrier to provide coverage for services that are not medically
necessary;

(2) prohibit a health carrier from establishing criteria that a health care provider
must meet to demonstrate the safety or efficacy of delivering a particular service via
telemedicine for which the health carrier does not already reimburse other health
care providers for delivering via telemedicine, so long as the criteria are not unduly
burdensome or unreasonable for the particular service; or

(3) prevent a health carrier from requiring a health care provider to agree to certain
documentation or billing practices designed to protect the health carrier or patients from
fraudulent claims so long as the practices are not unduly burdensome or unreasonable
for the particular service.

Subd. 2.

Parity between telemedicine and in-person services.

A health carrier
shall not exclude a service for coverage solely because the service is provided via
telemedicine and is not provided through in-person consultation or contact between a
licensed health care provider and a patient.

Subd. 3.

Reimbursement for telemedicine services.

(a) A health carrier shall
reimburse the distant site licensed health care provider for covered services delivered via
telemedicine on the same basis and at the same rate as the health carrier would apply to
those services if the services had been delivered in person by the distant site licensed
health care provider.

(b) It is not a violation of this subdivision for a health carrier to include a
deductible, co-payment, or coinsurance requirement for a health care service provided via
telemedicine, provided that the deductible, co-payment, or coinsurance is not in addition
to, and does not exceed, the deductible, co-payment, or coinsurance applicable if the same
services were provided through in-person contact.

Subd. 4.

Originating site facility fee payment.

If a health care provider provides
the facility used as the originating site for the delivery of telemedicine to a health carrier's
enrollee, the health carrier shall make a facility fee payment to the originating site health
care provider. The facility fee payment to the originating site health care provider shall be
in addition to the reimbursement to the distant site licensed health care provider specified
in subdivision 3. The facility fee payment shall not be subject to any patient coinsurance,
deductible, or co-payment obligation.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 4.

Minnesota Statutes 2014, section 62J.497, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

For the purposes of this section, the following terms
have the meanings given.

(a) "Backward compatible" means that the newer version of a data transmission
standard would retain, at a minimum, the full functionality of the versions previously
adopted, and would permit the successful completion of the applicable transactions with
entities that continue to use the older versions.

(b) "Dispense" or "dispensing" has the meaning given in section 151.01, subdivision
30. Dispensing does not include the direct administering of a controlled substance to a
patient by a licensed health care professional.

(c) "Dispenser" means a person authorized by law to dispense a controlled substance,
pursuant to a valid prescription.

(d) "Electronic media" has the meaning given under Code of Federal Regulations,
title 45, part 160.103.

(e) "E-prescribing" means the transmission using electronic media of prescription
or prescription-related information between a prescriber, dispenser, pharmacy benefit
manager, or group purchaser, either directly or through an intermediary, including
an e-prescribing network. E-prescribing includes, but is not limited to, two-way
transmissions between the point of care and the dispenser and two-way transmissions
related to eligibility, formulary, and medication history information.

(f) "Electronic prescription drug program" means a program that provides for
e-prescribing.

(g) "Group purchaser" has the meaning given in section 62J.03, subdivision 6, but
does not include workers' compensation plans or the medical component of automobile
insurance coverage.

(h) "HL7 messages" means a standard approved by the standards development
organization known as Health Level Seven.

(i) "National Provider Identifier" or "NPI" means the identifier described under Code
of Federal Regulations, title 45, part 162.406.

(j) "NCPDP" means the National Council for Prescription Drug Programs, Inc.

(k) "NCPDP Formulary and Benefits Standard" means the National Council for
Prescription Drug Programs Formulary and Benefits Standard, Implementation Guide,
Version 1, Release 0, October 2005.

(l) "NCPDP SCRIPT Standard" means the National Council for Prescription Drug
Programs Prescriber/Pharmacist Interface SCRIPT Standard, Implementation Guide
Version 8, Release 1 (Version 8.1), October 2005, or the most recent standard adopted by
the Centers for Medicare and Medicaid Services for e-prescribing under Medicare Part
D as required by section 1860D-4(e)(4)(D) of the Social Security Act, and regulations
adopted under it. The standards shall be implemented according to the Centers for
Medicare and Medicaid Services schedule for compliance. Subsequently released
versions of the NCPDP SCRIPT Standard may be used, provided that the new version
of the standard is backward compatible to the current version adopted by the Centers for
Medicare and Medicaid Services.

(m) "Pharmacy" has the meaning given in section 151.01, subdivision 2.

(n) "Prescriber" means a licensed health care practitioner, other than a veterinarian,
as defined in section 151.01, subdivision 23.

(o) "Prescription-related information" means information regarding eligibility for
drug benefits, medication history, or related health or drug information.

(p) "Provider" or "health care provider" has the meaning given in section 62J.03,
subdivision 8.

(q) "Utilization review organization" has the meaning given in section 62M.02,
subdivision 21.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 5.

Minnesota Statutes 2014, section 62J.497, subdivision 3, is amended to read:

Subd. 3.

Standards for electronic prescribing.

(a) Prescribers and dispensers
must use the NCPDP SCRIPT Standard for the communication of a prescription or
prescription-related information. The NCPDP SCRIPT Standard shall be used to conduct
the following transactions:

(1) get message transaction;

(2) status response transaction;

(3) error response transaction;

(4) new prescription transaction;

(5) prescription change request transaction;

(6) prescription change response transaction;

(7) refill prescription request transaction;

(8) refill prescription response transaction;

(9) verification transaction;

(10) password change transaction;

(11) cancel prescription request transaction; and

(12) cancel prescription response transaction.

(b) Providers, group purchasers, prescribers, and dispensers must use the NCPDP
SCRIPT Standard for communicating and transmitting medication history information.

(c) Providers, group purchasers, prescribers, and dispensers must use the NCPDP
Formulary and Benefits Standard for communicating and transmitting formulary and
benefit information.

(d) Group purchasers, prescribers, pharmacies, and utilization review organizations
must collaborate to develop processes to ensure notification to prescribers upon denial of a
claim for a prescribed drug that is not covered or is not included on the group purchaser's
formulary. The process must provide a list of covered drugs from the same class or
classes as the drug originally prescribed. If the NCPDP SCRIPT Standard or the NCPDP
Formulary and Benefits Standard do not allow for the inclusion of this information, group
purchasers, prescribers, pharmacies, and utilization review organizations must develop
telephone, facsimile, or other secure electronic processes to communicate this information
to the prescriber. The development of this process shall be done under the auspices of the
administrative uniformity committee and take into consideration capabilities available in
electronic medical records.

(d) (e) Providers, group purchasers, prescribers, and dispensers must use the national
provider identifier to identify a health care provider in e-prescribing or prescription-related
transactions when a health care provider's identifier is required.

(e) (f) Providers, group purchasers, prescribers, and dispensers must communicate
eligibility information and conduct health care eligibility benefit inquiry and response
transactions according to the requirements of section 62J.536.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 6.

Minnesota Statutes 2014, section 62J.497, subdivision 4, is amended to read:

Subd. 4.

Development and use of uniform formulary exception form.

(a) The
commissioner of health, in consultation with the Minnesota Administrative Uniformity
Committee, shall develop by July 1, 2009, a uniform formulary exception form that allows
health care providers to request exceptions from group purchaser formularies using a
uniform form. Upon development of the form, all health care providers must submit
requests for formulary exceptions using the uniform form, and all group purchasers must
accept this form from health care providers.

(b) No later than January 1, 2011, The uniform formulary exception form must be
accessible and submitted by health care providers, and accepted and processed by group
purchasers, through secure electronic transmissions. No later than September 1, 2015,
the uniform formulary exception form shall be updated to reflect evolving pharmacy and
prior authorization requirements.

(c) Health care providers, group purchasers, prescribers, dispensers, and utilization
review organizations using paper forms for prescription drug prior authorization or for
medical exception requests as defined in section 62Q.85, subdivision 5, must only use the
uniform formulary exception form.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 7.

Minnesota Statutes 2014, section 62J.497, subdivision 5, is amended to read:

Subd. 5.

Electronic drug prior authorization standardization and transmission.

(a) The commissioner of health, in consultation with the Minnesota e-Health Advisory
Committee and the Minnesota Administrative Uniformity Committee, shall, by February
15, 2010, identify an outline on how best to standardize drug prior authorization request
transactions between providers and group purchasers with the goal of maximizing
administrative simplification and efficiency in preparation for electronic transmissions.

(b) By January 1, 2014, the Minnesota Administrative Uniformity Committee shall
develop the standard companion guide by which providers and group purchasers will
exchange standard drug authorization requests using electronic data interchange standards,
if available, with the goal of alignment with standards that are or will potentially be used
nationally.

(c) Testing of the electronic drug prior authorization transmission must begin no
later than October 1, 2015.

(d) No later than January 1, 2016, drug prior authorization requests must be
accessible and submitted by health care providers, and accepted by group purchasers,
electronically through secure electronic transmissions. Facsimile shall not be considered
electronic transmission.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 8.

Minnesota Statutes 2014, section 62M.01, subdivision 2, is amended to read:

Subd. 2.

Jurisdiction.

(a) Sections 62M.01 to 62M.16 62M.17 apply to any
insurance company licensed under chapter 60A to offer, sell, or issue a policy of accident
and sickness insurance as defined in section 62A.01; a health service plan licensed
under chapter 62C; a health maintenance organization licensed under chapter 62D; the
Minnesota Comprehensive Health Association created under chapter 62E; a community
integrated service network licensed under chapter 62N; an accountable provider network
operating under chapter 62T; a fraternal benefit society operating under chapter 64B;
a joint self-insurance employee health plan operating under chapter 62H; a multiple
employer welfare arrangement, as defined in section 3 of the Employee Retirement Income
Security Act of 1974 (ERISA), United States Code, title 29, section 1103, as amended;
a third-party administrator licensed under section 60A.23, subdivision 8, that provides
utilization review services for the administration of benefits under a health benefit plan
as defined in section 62M.02; or any entity performing utilization review on behalf of a
business entity in this state pursuant to a health benefit plan covering a Minnesota resident.

(b) Sections 62M.01 to 62M.17 do not apply to the medical assistance fee-for-service
program under chapter 256B, unless otherwise required in law or regulation.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 9.

Minnesota Statutes 2014, section 62M.02, is amended by adding a subdivision
to read:

Subd. 10a.

Drug.

"Drug" has the meaning given in section 151.01, subdivision 5.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 10.

Minnesota Statutes 2014, section 62M.02, is amended by adding a subdivision
to read:

Subd. 11a.

Formulary.

"Formulary" has the meaning given in section 62Q.85,
subdivision 1.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 11.

Minnesota Statutes 2014, section 62M.02, subdivision 12, is amended to read:

Subd. 12.

Health benefit plan.

"Health benefit plan" means a policy, contract, or
certificate issued by a health plan company for the coverage of medical, dental, prescription
drug, or hospital benefits. A health benefit plan does not include coverage that is:

(1) limited to disability or income protection coverage;

(2) automobile medical payment coverage;

(3) supplemental to liability insurance;

(4) designed solely to provide payments on a per diem, fixed indemnity, or
nonexpense incurred basis;

(5) credit accident and health insurance issued under chapter 62B;

(6) blanket accident and sickness insurance as defined in section 62A.11;

(7) accident only coverage issued by a licensed and tested insurance agent; or

(8) workers' compensation.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 12.

Minnesota Statutes 2014, section 62M.02, subdivision 14, is amended to read:

Subd. 14.

Outpatient services.

"Outpatient services" means procedures or services
performed on a basis other than as an inpatient, and includes obstetrical, psychiatric,
chemical dependency, dental, prescription drug, and chiropractic services.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 13.

Minnesota Statutes 2014, section 62M.02, is amended by adding a subdivision
to read:

Subd. 14b.

Prescription.

"Prescription" has the meaning given in section 151.01,
subdivision 16a.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 14.

Minnesota Statutes 2014, section 62M.02, is amended by adding a subdivision
to read:

Subd. 14c.

Prescription drug order.

"Prescription drug order" has the meaning
given in section 151.01, subdivision 16.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 15.

Minnesota Statutes 2014, section 62M.02, subdivision 15, is amended to read:

Subd. 15.

Prior authorization.

"Prior authorization" means utilization review
conducted prior to the delivery of a service, including an outpatient service. Prior
authorization includes, but is not limited to, preadmission review, pretreatment review,
quantity limits, step therapy, utilization, and case management. Prior authorization also
includes any utilization review organization's requirement that an enrollee or provider
notify the utilization review organization prior to providing a service, including an
outpatient service. Reviews performed for emergency medical assistance benefits, medical
assistance waivered services, or the Minnesota restricted recipient program are not prior
authorization.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 16.

Minnesota Statutes 2014, section 62M.02, subdivision 17, is amended to read:

Subd. 17.

Provider.

"Provider" means a licensed health care facility, physician,
pharmacist, or other health care professional that delivers health care services to an enrollee.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 17.

Minnesota Statutes 2014, section 62M.02, is amended by adding a subdivision
to read:

Subd. 18a.

Quantity limit.

"Quantity limit" means a limit on the number of doses
of a prescription drug that are covered during a specific time period.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 18.

Minnesota Statutes 2014, section 62M.02, is amended by adding a subdivision
to read:

Subd. 19a.

Step therapy.

"Step therapy" means clinical practice or other
evidence-based protocols or requirements that specify the sequence in which different
prescription drugs for a given medical condition are to be used by an enrollee before a
drug prescribed by a provider is covered. Step therapy does not include a requirement
for an enrollee to use a generic or biosimilar product considered by the Food and Drug
Administration to be therapeutically equivalent and interchangeable to a branded product,
provided the generic or biosimilar product has not previously been tried by the patient.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 19.

Minnesota Statutes 2014, section 62M.05, subdivision 3a, is amended to read:

Subd. 3a.

Standard review determination.

(a) Notwithstanding subdivision 3b, an
initial determination on all requests for utilization review, except a determination related
to prescription drugs, must be communicated to the provider and enrollee in accordance
with this subdivision within ten business days of the request, provided that all information
reasonably necessary to make a determination on the request has been made available to
the utilization review organization.

(b) An initial determination for utilization review on all prescription drug requests
must be communicated to the provider and enrollee in accordance with this subdivision
within five business days of the request, provided that all information reasonably necessary
to make a determination on the request has been made available to the utilization review
organization.

(c) When an initial determination is made to certify, notification must be provided
promptly by telephone to the provider. The utilization review organization shall send
written notification to the provider or shall maintain an audit trail of the determination
and telephone notification. For purposes of this subdivision, "audit trail" includes
documentation of the telephone notification, including the date; the name of the person
spoken to; the enrollee; the service, procedure, or admission certified; and the date of
the service, procedure, or admission. If the utilization review organization indicates
certification by use of a number, the number must be called the "certification number."
For purposes of this subdivision, notification may also be made by facsimile to a verified
number or by electronic mail to a secure electronic mailbox. These electronic forms of
notification satisfy the "audit trail" requirement of this paragraph.

(c) (d) When an initial determination is made not to certify, notification must be
provided by telephone, by facsimile to a verified number, or by electronic mail to a secure
electronic mailbox within one working day after making the determination to the attending
health care professional and hospital as applicable. Written notification must also be sent
to the hospital as applicable and attending health care professional if notification occurred
by telephone. For purposes of this subdivision, notification may be made by facsimile to a
verified number or by electronic mail to a secure electronic mailbox. Written notification
must be sent to the enrollee and may be sent by United States mail, facsimile to a verified
number, or by electronic mail to a secure mailbox. The written notification must include
the principal reason or reasons for the determination and the process for initiating an appeal
of the determination. Upon request, the utilization review organization shall provide the
provider or enrollee with the criteria used to determine the necessity, appropriateness,
and efficacy of the health care service and identify the database, professional treatment
parameter, or other basis for the criteria. Reasons for a determination not to certify may
include, among other things, the lack of adequate information to certify after a reasonable
attempt has been made to contact the provider or enrollee.

(d) (e) When an initial determination is made not to certify, the written notification
must inform the enrollee and the attending health care professional of the right to submit
an appeal to the internal appeal process described in section 62M.06 and the procedure
for initiating the internal appeal. The written notice shall be provided in a culturally and
linguistically appropriate manner consistent with the provisions of the Affordable Care
Act as defined under section 62A.011, subdivision 1a.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 20.

Minnesota Statutes 2014, section 62M.05, subdivision 3b, is amended to read:

Subd. 3b.

Expedited review determination.

(a) An expedited initial determination
must be utilized if the attending health care professional believes that an expedited
determination is warranted.

(b) Notification of an expedited initial determination to either certify or not to
certify, except a determination related to prescription drugs, must be provided to the
hospital, the attending health care professional, and the enrollee as expeditiously as the
enrollee's medical condition requires, but no later than 72 hours from the initial request.
When an expedited initial determination is made not to certify, the utilization review
organization must also notify the enrollee and the attending health care professional of the
right to submit an appeal to the expedited internal appeal as described in section 62M.06
and the procedure for initiating an internal expedited appeal.

(c) Notification of an expedited initial determination to either certify or not to
certify on all prescription drug requests must be provided to the hospital, the attending
health care professional, and the enrollee as expeditiously as the enrollee's medical
condition requires, but no later than 36 hours from the initial request, provided that all the
information reasonably necessary to make a determination has been made available to the
utilization review organization. For state public health care programs administered under
section 256B.69 and chapter 256L, notification must be provided to the hospital, attending
health care provider, or the enrollee as expeditiously as the enrollee's condition requires,
but no later than 36 hours from the initial request, provided that all the information
reasonably necessary to make a determination has been made available to the utilization
review organization. When an expedited initial determination is made not to certify, the
utilization review organization must also notify the enrollee and the attending health care
professional of the right to submit an appeal to the expedited internal appeal as described
in section 62M.06 and the procedure for initiating an internal expedited appeal.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 21.

Minnesota Statutes 2014, section 62M.05, subdivision 4, is amended to read:

Subd. 4.

Failure to provide necessary information.

A utilization review
organization must have written procedures to address the failure of a provider or
enrollee to provide the necessary information for review, and to address processes by
which the utilization review organization must track and manage review requests and
documentation submitted by providers or enrollees. If the enrollee or provider will not
release the necessary information to the utilization review organization, the utilization
review organization may deny certification in accordance with its own policy or the policy
described in the health benefit plan. If a utilization review organization fails to meet the
timelines in subdivision 3a or 3b for a completed prescription drug review request, or fails
to notify the provider that information needed to conduct the prescription drug review is
incomplete, or if a utilization review organization fails to properly maintain submitted
records for which the provider or enrollee has documentation of submission, the service
shall be deemed approved.

EFFECTIVE DATE.

This section is effective January 1, 2017.

Sec. 22.

Minnesota Statutes 2014, section 62M.06, subdivision 2, is amended to read:

Subd. 2.

Expedited appeal.

(a) When an initial determination not to certify a
health care service is made prior to or during an ongoing service requiring review
and the attending health care professional believes that the determination warrants an
expedited appeal, the utilization review organization must ensure that the enrollee and the
attending health care professional have an opportunity to appeal the determination over
the telephone on an expedited basis. In such an appeal, the utilization review organization
must ensure reasonable access to its consulting physician or health care provider.

(b) The utilization review organization shall notify the enrollee and attending
health care professional by telephone of its determination, except for determinations
related to prescription drugs, on the expedited appeal as expeditiously as the enrollee's
medical condition requires, but no later than 72 hours after receiving the expedited appeal.
The utilization review organization shall notify the enrollee and attending health care
professional by telephone of its determination on the expedited appeal of a prescription
drug request as expeditiously as the enrollee's medical condition requires, but no later than
36 hours after receiving the expedited appeal.

(c) If the determination not to certify is not reversed through the expedited appeal,
the utilization review organization must include in its notification the right to submit the
appeal to the external appeal process described in section 62Q.73 and the procedure for
initiating the process. This information must be provided in writing to the enrollee and
the attending health care professional as soon as practical.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 23.

Minnesota Statutes 2014, section 62M.06, subdivision 3, is amended to read:

Subd. 3.

Standard appeal.

The utilization review organization must establish
procedures for appeals to be made either in writing or by telephone.

(a) A utilization review organization shall notify in writing the enrollee, attending
health care professional, and claims administrator of its determination on the appeal,
except for determinations related to prescription drugs, within 30 days upon receipt of the
notice of appeal. If the utilization review organization cannot make a determination within
30 days due to circumstances outside the control of the utilization review organization, the
utilization review organization may take up to 14 additional days to notify the enrollee,
attending health care professional, and claims administrator of its determination. If the
utilization review organization takes any additional days beyond the initial 30-day period
to make its determination, it must inform the enrollee, attending health care professional,
and claims administrator, in advance, of the extension and the reasons for the extension.

(b) A utilization review organization shall notify in writing the enrollee, attending
health care professional, and claims administrator of its determination on the appeal on a
prescription drug within 15 days upon receipt of the notice of appeal. If the utilization
review organization cannot make a determination on a prescription drug within 15 days
due to circumstances outside the control of the utilization review organization, the
utilization review organization may take up to ten additional days to notify the enrollee,
attending health care professional, and claims administration of its determination. If the
utilization review organization takes any additional days beyond the initial 15-day period
to make its determination, it must inform the enrollee, attending health care professional,
and claims administrator, in advance, of the extension and the reasons for the extension.

(c) The documentation required by the utilization review organization may include
copies of part or all of the medical record and a written statement from the attending
health care professional.

(c) (d) Prior to upholding the initial determination not to certify for clinical reasons,
the utilization review organization shall conduct a review of the documentation by a
physician who did not make the initial determination not to certify.

(d) (e) The process established by a utilization review organization may include
defining a period within which an appeal must be filed to be considered. The time period
must be communicated to the enrollee and attending health care professional when the
initial determination is made.

(e) (f) An attending health care professional or enrollee who has been unsuccessful
in an attempt to reverse a determination not to certify shall, consistent with section
72A.285, be provided the following:

(1) a complete summary of the review findings;

(2) qualifications of the reviewers, including any license, certification, or specialty
designation; and

(3) the relationship between the enrollee's diagnosis and the review criteria used as
the basis for the decision, including the specific rationale for the reviewer's decision.

(f) (g) In cases of appeal to reverse a determination not to certify for clinical reasons,
the utilization review organization must ensure that a physician of the utilization review
organization's choice in the same or a similar specialty as typically manages the medical
condition, procedure, or treatment under discussion is reasonably available to review
the case.

(g) (h) If the initial determination is not reversed on appeal, the utilization review
organization must include in its notification the right to submit the appeal to the external
review process described in section 62Q.73 and the procedure for initiating the external
process.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 24.

Minnesota Statutes 2014, section 62M.07, is amended to read:

62M.07 PRIOR AUTHORIZATION OF SERVICES.

(a) Utilization review organizations conducting prior authorization of services must
have written standards that meet at a minimum the following requirements:

(1) written procedures and criteria used to determine whether care is appropriate,
reasonable, or medically necessary;

(2) a system for providing prompt notification of its determinations to enrollees
and providers and for notifying the provider, enrollee, or enrollee's designee of appeal
procedures under clause (4);

(3) compliance with section 62M.05, subdivisions 3a and 3b, regarding time frames
for approving and disapproving prior authorization requests;

(4) written procedures for appeals of denials of prior authorization which specify the
responsibilities of the enrollee and provider, and which meet the requirements of sections
62M.06 and 72A.285, regarding release of summary review findings; and

(5) procedures to ensure confidentiality of patient-specific information, consistent
with applicable law.

(b) No utilization review organization, health plan company, or claims administrator
may conduct or require prior authorization of emergency confinement or emergency
treatment. The enrollee or the enrollee's authorized representative may be required to
notify the health plan company, claims administrator, or utilization review organization
as soon after the beginning of the emergency confinement or emergency treatment as
reasonably possible.

(c) If prior authorization for a health care service is required, the utilization review
organization, health plan company, or claim administrator must allow providers to submit
requests for prior authorization of the health care services without unreasonable delay
by telephone, facsimile, or voice mail or through an electronic mechanism 24 hours a
day, seven days a week. This paragraph does not apply to dental service covered under
MinnesotaCare, general assistance medical care, or medical assistance.

(d) Any prior authorization for a prescription drug must remain valid for the duration
of an enrollee's benefit year, or for the benefits offered under section 256B.69 or chapter
256L, any prior authorization for a prescription drug must remain valid for the duration of
the enrollee's enrollment or one year, whichever is shorter, provided the drug continues to
be prescribed for a patient with a condition that requires ongoing medication therapy, the
drug has not otherwise been deemed unsafe by the Food and Drug Administration, has not
been withdrawn by the manufacturer or the Food and Drug Administration, there is no
evidence of the enrollee's abuse or misuse of the medication, or no independent source of
research, clinical guidelines, or evidence-based standards has issued drug-specific warnings
or recommended changes in drug usage. This does not apply to individuals assigned to the
restricted recipient program under Minnesota Rules, parts 9505.2160 to 9505.2245.

(e) No utilization review organization, health plan company, or claims administrator
may impose step therapy requirements for enrollees currently taking a prescription drug,
as substantiated from available claims data or provider documentation, in one of the
following classes: (1) immunosuppressants; (2) antidepressants; (3) antipsychotics; (4)
anticonvulsants; (5) antiretrovirals; or (6) antineoplastics. This provision does not apply to
a patient who has initiated treatment for a condition with samples provided by a prescriber
and provided that any step therapy requirements subsequently applied are consistent
with evidence-based prescribing practices.

EFFECTIVE DATE.

This section is effective January 1, 2017.

Sec. 25.

Minnesota Statutes 2014, section 62M.09, subdivision 3, is amended to read:

Subd. 3.

Physician reviewer involvement.

(a) A physician must review all cases
in which the utilization review organization has concluded that a determination not to
certify for clinical reasons is appropriate.

(b) The physician conducting the review must be licensed in this state. This
paragraph does not apply to reviews conducted in connection with policies issued by a
health plan company that is assessed less than three percent of the total amount assessed
by the Minnesota Comprehensive Health Association.

(c) The physician should be reasonably available by telephone to discuss the
determination with the attending health care professional.

(d) This subdivision does not apply to outpatient mental health or substance abuse
services governed by subdivision 3a.

EFFECTIVE DATE.

This section is effective January 1, 2017.

Sec. 26.

Minnesota Statutes 2014, section 62M.10, subdivision 7, is amended to read:

Subd. 7.

Availability of criteria.

Upon request, a utilization review organization
shall provide to an enrollee, a provider, and the commissioner of commerce the written
clinical criteria used to determine the medical necessity, appropriateness, and efficacy of a
procedure or service and identify the database, professional treatment guideline, or other
basis for the criteria. This requirement may be met by posting the written clinical criteria
on the utilization review organization's public Web site or electronically distributing the
information directly to the enrollee or provider.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 27.

Minnesota Statutes 2014, section 62M.11, is amended to read:

62M.11 COMPLAINTS TO COMMERCE OR HEALTH.

Notwithstanding the provisions of sections 62M.01 to 62M.16, an enrollee or
provider may file a complaint regarding compliance with the requirements of this chapter
or regarding a determination not to certify directly to the commissioner responsible for
regulating the utilization review organization.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 28.

[62M.17] REPORTING.

On August 1, 2016, and each August 1 thereafter, utilization review organizations
must report to the commissioner of health, on the forms and in the manner specified by the
commissioner, the following information:

(1) for medical exception requests, the 25 most frequently requested drugs by
exception type, including lack of available clinical alternative, ineffective formulary
drug, and dosage limits; and

(2) for prescription drug prior authorization requests:

(i) the number and rate of initial approvals by commercial product and by prepaid
medical assistance product types;

(ii) the number and rate of standard appeal approvals by commercial product and by
prepaid medical assistance product types;

(iii) the number and rate of expedited appeal approvals by commercial product and
by prepaid medical assistance product types;

(iv) for standard reviews, the range and average time from receipt of completed
request to notification of decision;

(v) for expedited reviews, the range and average time from receipt of completed
request to notification of decision;

(vi) for standard appeals, the range and average time from receipt of completed
request to notification of decision; and

(vii) for expedited appeals, the range and average time from receipt of completed
request to notification of decision.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 29.

Minnesota Statutes 2014, section 62Q.02, is amended to read:

62Q.02 APPLICABILITY OF CHAPTER.

(a) This chapter applies only to health plans, as defined in section 62Q.01, and not to
other types of insurance issued or renewed by health plan companies, unless otherwise
specified.

(b) This chapter applies to a health plan company only with respect to health plans,
as defined in section 62Q.01, issued or renewed by the health plan company, unless
otherwise specified.

(c) If a health plan company issues or renews health plans in other states, this chapter
applies only to health plans issued or renewed in this state for Minnesota residents, or to
cover a resident of the state, unless otherwise specified.

(d) This chapter does not apply to public health care programs administered by the
commissioner of human services under chapter 256B or 256L, unless otherwise required
by law or regulation.

Sec. 30.

[62Q.83] FREEDOM OF CHOICE FOR PHARMACY SERVICES.

Subdivision 1.

Enrollee choice.

No health plan company or pharmacy benefit
manager that covers pharmaceutical services, including prescription drug coverage, shall
limit or restrict an enrollee's ability to select a pharmacy or pharmacist of the enrollee's
choice if the pharmacy or pharmacist is licensed under chapter 151, and the pharmacy
or pharmacist has agreed to the terms of the health plan company's or pharmacy benefit
manager's provider contract.

This subdivision does not apply to an enrollee in the Minnesota restricted recipient
program pursuant to Minnesota Rules, part 9505.2238.

Subd. 2.

Provider network.

No health plan company or pharmacy benefit manager
shall deny a pharmacy or pharmacist the right to participate in any of its pharmacy network
contracts in this state or as a contracting provider in this state if the pharmacy or pharmacist
has a valid license under chapter 151, and the pharmacy or pharmacist agrees to accept the
terms and conditions offered by the health plan company or pharmacy benefit manager,
and agrees to provide pharmacy services that meet state and federal laws and regulations.

Subd. 3.

Cost-sharing or other conditions.

No health plan company or pharmacy
benefit manager shall impose a co-payment, fee, or other cost-sharing requirement
for selecting a pharmacy or pharmacist of the enrollee's choosing or impose other
conditions that limit or restrict an enrollee's ability to utilize a pharmacy of the enrollee's
choosing, unless the health plan company or pharmacy benefit manager imposes the
same cost-sharing requirements, fees, conditions, or limits upon an enrollee's selection of
any of the pharmacies within the health plan company's or pharmacy benefit manager's
provider network contracts in this state.

Subd. 4.

Definitions.

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

(b) "Pharmacy" has the meaning given in section 151.01, subdivision 2, and includes
mail order pharmacies and specialty pharmacies.

(c) "Pharmacy benefit manager" has the meaning given in section 151.71,
subdivision 1.

EFFECTIVE DATE.

This section is effective August 1, 2015, and applies to any
health plan issued or renewed on or after that date.

Sec. 31.

[62Q.84] SERVICES PERFORMED BY A PHARMACIST.

A health plan company or pharmacy benefit manager, as defined under section
151.71, subdivision 1, shall provide payment for any health care service that is a covered
benefit and is performed by a licensed pharmacist if: (1) the service performed is within
the scope of practice of a licensed pharmacist under chapter 151; and (2) the health plan
would cover the service if the service was performed by a physician licensed under chapter
147; an advanced practice registered nurse licensed under section 148.211, subdivision
1a; or a physician assistant licensed under chapter 147A.

EFFECTIVE DATE.

This section is effective August 1, 2015, and applies to any
health plan issued or renewed on or after that date.

Sec. 32.

[62Q.85] PRESCRIPTION DRUG BENEFIT TRANSPARENCY AND
MANAGEMENT.

Subdivision 1.

Definitions.

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

(b) "Drug" has the meaning given in section 151.01, subdivision 5.

(c) "Formulary" means a list of prescription drugs that have been developed by
clinical and pharmacy experts and represents the health plan company's medically
appropriate and cost-effective prescription drugs approved for use.

(d) "Health plan company" has the meaning given in section 62Q.01, subdivision 4,
and includes an entity that performs pharmacy benefits management for the health plan
company. For purposes of this definition, "pharmacy benefits management" means the
administration or management of prescription drug benefits provided by the health plan
company for the benefit of its enrollees and may include, but is not limited to, procurement
of prescription drugs, clinical formulary development and management services, claims
processing, and rebate contracting and administration.

(e) "Prescription" has the meaning given in section 151.01, subdivision 16a.

Subd. 2.

Prescription drug benefit disclosure.

(a) A health plan company that
provides prescription drug benefit coverage and uses a formulary must make its formulary
and related benefit information available by electronic means and, upon request, in
writing, at least 30 days prior to annual renewal dates.

(b) Formularies must be organized and disclosed consistent with the most recent
version of the United States Pharmacopeia's (USP) Model Guidelines.

(c) For each item or category of items on the formulary, the specific enrollee benefit
terms must be identified, including enrollee cost-sharing and expected out-of-pocket costs.

Subd. 3.

Formulary changes.

(a) Once a formulary has been established, a health
plan company may, at any time during the enrollee's benefit year:

(1) expand its formulary by adding drugs to the formulary;

(2) reduce co-payments or coinsurance; or

(3) move a drug to a benefit category that reduces an enrollee's cost.

(b) A health plan company may remove a brand name drug from its formulary
or place a brand name drug in a benefit category that increases an enrollee's cost only
upon the addition to the formulary of an A-rated generic or multisource brand name
equivalent at a lower cost to the enrollee, and upon at least a 60-day notice to prescribers,
pharmacists, and affected enrollees.

(c) A health plan company is prohibited from removing drugs from its formulary or
moving drugs to a benefit category that increases an enrollee's cost during the enrollee's
benefit year. This paragraph does not apply to any changes associated with drugs that have
been deemed unsafe by the Food and Drug Administration, that have been withdrawn
by either the Food and Drug Administration or the product manufacturer, or where an
independent source of research, clinical guidelines, or evidence-based standards has issued
drug-specific warnings or recommended changes in drug usage.

(d) Managed care plans and county-based purchasing plans under section 256B.69
and chapter 256L, are prohibited from removing drugs from its formulary or moving
drugs to a benefit category that increases an enrollee's cost more than once annually unless
an A-rated generic or multisource brand name equivalent is added to the formulary. This
paragraph does not apply to any changes associated with drugs that have been deemed
unsafe by the Food and Drug Administration, that have been withdrawn by either the Food
and Drug Administration or the product manufacturer, or where an independent source
of research, clinical guidelines, or evidence-based standards has issued drug-specific
warnings or recommended changes in drug usage.

Subd. 4.

Transition process.

(a) A health plan company must establish and
maintain a transition process to prevent gaps in prescription drug coverage for both
new and continuing enrollees with ongoing prescription drug needs who are affected
by changes in formulary drug availability.

(b) The transition process must provide coverage for at least 60 days.

(c) Any enrollee cost-sharing applied must be based on the defined prescription drug
benefit terms and must be consistent with any cost-sharing that the health plan company
would charge for nonformulary drugs approved under a medication exceptions process.

(d) A health plan company must ensure that written notice is provided to each
affected enrollee and prescriber within three business days after adjudication of the
transition coverage.

Subd. 5.

Medication exceptions process.

(a) Each health plan company must
establish and maintain a medication exceptions process that allows enrollees, providers,
or an enrollee's authorized representative to request and obtain coverage approval for
medications in the following situations:

(1) there is no acceptable clinical alternative listed on the formulary to treat the
enrollee's disease or medical condition;

(2) the prescription listed on the formulary has been ineffective in the treatment of
an enrollee's disease or medical condition or, based on clinical and scientific evidence and
the relevant physical or mental characteristics of the enrollee, is likely to be ineffective or
adversely affect the drug's effectiveness or the enrollee's medication compliance; or

(3) the number of doses that are available under a dose restriction has been
ineffective in the treatment of the enrollee's disease or medical condition or, based on
clinical and scientific evidence and the relevant physical or mental characteristics of
the enrollee, is likely to be ineffective or adversely affect the drug's effectiveness or the
enrollee's medication compliance.

(b) An approved medication exception request must remain valid for the duration of
an enrollee's benefit term, or for benefits offered under section 265B.69 or chapter 256L,
for the duration of the enrollee's enrollment, or one year, whichever is shorter, provided
the medication continues to be prescribed for the same condition, and the medication has
not otherwise been withdrawn by the manufacturer or the Food and Drug Administration.

(c) The medication exceptions process must comply with the requirements of
chapter 62M.

Subd. 6.

Prescription Drug Advisory Council.

(a) A Prescription Drug Advisory
Council has 11 members appointed by the commissioner of health with representation
as follows:

(1) three patients;

(2) one physician licensed to practice medicine in Minnesota;

(3) two nonphysicians who are licensed in Minnesota to prescribe prescription drugs;

(4) one pharmacist licensed in Minnesota;

(5) one person representing a health plan company;

(6) one person representing a pharmacy benefit manager;

(7) one person representing pharmaceutical manufacturers; and

(8) one person who purchases health benefits for a group or an employer.

(b) Terms and removal of public members are as provided in section 15.0575, except
that members will serve without compensation or expense reimbursement. A vacancy on
the council may be filled by the appointing authority for the remainder of the unexpired
term. Vacancies will be filled as provided in section 15.0597.

(c) The council shall select a chair from among its members. The chair may convene
meetings as necessary to conduct the duties prescribed by this section.

(d) The duty of the council is to provide guidance to the commissioner of health
in monitoring changes and trends in prescription drug coverage and formulary design.
The council must consult with the commissioner to assist the commissioner in preparing
the report required under paragraph (g).

(e) The commissioner of health will provide administrative support and meeting
space for the council to perform its duties.

(f) The Prescription Drug Advisory Council expires on January 30, 2021.

(g) Beginning January 15, 2017, and on at least a biennial basis thereafter, the
commissioner, in consultation with the advisory group, shall submit a report to the chairs
and lead minority members of the legislative committees with jurisdiction over health care
coverage describing trends in prescription drug coverage, formulary design, medication
exception requests, and benefit design. Health plan companies, pharmacy benefit managers,
prescribers, and pharmacies must cooperate in providing information necessary for the
advisory group to carry out its responsibilities, provided the commissioner, in consultation
with the affected parties, does not determine the information to be of a proprietary nature.

EFFECTIVE DATE.

Subdivisions 1 to 5 are effective January 1, 2017. Subdivision
6 is effective August 1, 2015.

Sec. 33.

Minnesota Statutes 2014, section 62U.02, subdivision 1, is amended to read:

Subdivision 1.

Development.

(a) The commissioner of health shall develop a
standardized set of measures by which to assess the quality of health care services offered
by health care providers, including health care providers certified as health care homes
under section 256B.0751. Quality measures must be based on medical evidence and be
developed through a process in which providers participate. The measures shall be used
for the quality incentive payment system developed in subdivision 2 and must:

(1) include uniform definitions, measures, and forms for submission of data, to the
greatest extent possible;

(2) seek to avoid increasing the administrative burden on health care providers;

(3) be initially based on existing quality indicators for physician and hospital
services, which are measured and reported publicly by quality measurement organizations,
including, but not limited to, Minnesota Community Measurement and specialty societies;

(4) place a priority on measures of health care outcomes, rather than process
measures, wherever possible; and

(5) incorporate measures for primary care, including preventive services, coronary
artery and heart disease, diabetes, asthma, depression, and other measures as determined
by the commissioner.

(b) Effective July 1, 2016, the commissioner shall stratify five quality measures by
race, ethnicity, preferred language, and country of origin. On or after January 1, 2018, the
commissioner may require measures to be stratified by other sociodemographic factors
that according to reliable data are correlated with health disparities and have an impact
on performance on quality or cost indicators. New methods of stratifying data under this
paragraph must be tested and evaluated through pilot projects prior to adding them to the
statewide system. In determining whether to add additional sociodemographic factors and
developing the methodology to be used, the commissioner shall consider the reporting
burden on providers and determine whether there are alternative sources of data that could
be used. The commissioner shall ensure that categories and data collection methods are
developed in consultation with those communities impacted by health disparities using
culturally appropriate community engagement principles and methods. The commissioner
shall implement this paragraph in coordination with the contracting entity retained under
section 62U.02, subdivision 4, in order to build upon the data stratification methodology
that has been developed and tested by the entity. Nothing in this paragraph expands or
changes the commissioner's authority to collect, analyze, or report health care data. Any
data collected to implement this paragraph must be data that is available or is authorized
to be collected under other laws. Nothing in this paragraph grants authority to the
commissioner to collect or analyze patient-level or patient-specific data of the patient
characteristics identified under this paragraph.

(b) (c) The measures shall be reviewed at least annually by the commissioner.

Sec. 34.

Minnesota Statutes 2014, section 62U.02, subdivision 2, is amended to read:

Subd. 2.

Quality incentive payments.

(a) By July 1, 2009, the commissioner
shall develop a system of quality incentive payments under which providers are eligible
for quality-based payments that are in addition to existing payment levels, based upon
a comparison of provider performance against specified targets, and improvement over
time. The targets must be based upon and consistent with the quality measures established
under subdivision 1.

(b) To the extent possible, the payment system must adjust for variations in patient
population in order to reduce incentives to health care providers to avoid high-risk patients
or populations, including those with risk factors related to race, ethnicity, language,
country of origin, and sociodemographic factors.

(c) The requirements of section 62Q.101 do not apply under this incentive payment
system.

Sec. 35.

Minnesota Statutes 2014, section 62U.02, subdivision 3, is amended to read:

Subd. 3.

Quality transparency.

(a) The commissioner shall establish standards for
measuring health outcomes, establish a system for risk adjusting quality measures, and
issue annual public reports on provider quality beginning July 1, 2010.

(b) Effective July 1, 2017, the risk adjustment system established under this
subdivision shall adjust for patient characteristics identified under subdivision 1, paragraph
(b), that are correlated with health disparities and have an impact on performance on cost
and quality measures. The risk adjustment method may consist of reporting based on an
actual-to-expected comparison that reflects the characteristics of the patient population
served by the clinic or hospital. The commissioner shall implement this paragraph in
coordination with any contracting entity retained under section 62U.02, subdivision 4.

(c) By January 1, 2010, physician clinics and hospitals shall submit standardized
electronic information on the outcomes and processes associated with patient care to
the commissioner or the commissioner's designee. In addition to measures of care
processes and outcomes, the report may include other measures designated by the
commissioner, including, but not limited to, care infrastructure and patient satisfaction.
The commissioner shall ensure that any quality data reporting requirements established
under this subdivision are not duplicative of publicly reported, communitywide quality
reporting activities currently under way in Minnesota. Nothing in this subdivision is
intended to replace or duplicate current privately supported activities related to quality
measurement and reporting in Minnesota.

Sec. 36.

Minnesota Statutes 2014, section 62U.02, subdivision 4, is amended to read:

Subd. 4.

Contracting.

The commissioner may contract with a private entity or
consortium of private entities to complete the tasks in subdivisions 1 to 3. The private
entity or consortium must be nonprofit and have governance that includes representatives
from the following stakeholder groups: health care providers, including providers serving
high concentrations of patients and communities impacted by health disparities;, health
plan companies,; consumers, including consumers representing groups who experience
health disparities;, employers or other health care purchasers,; and state government. No
one stakeholder group shall have a majority of the votes on any issue or hold extraordinary
powers not granted to any other governance stakeholder.

Sec. 37.

Minnesota Statutes 2014, section 144E.001, is amended by adding a
subdivision to read:

Subd. 5h.

Community medical response emergency medical technician.

"Community medical response emergency medical technician" or "CEMT" means
a person who is certified as an emergency medical technician, who is a member of a
registered medical response unit under section 144E.275, and who meets the requirements
for additional certification as a CEMT as specified in section 144E.275, subdivision 7.

Sec. 38.

Minnesota Statutes 2014, section 144E.275, subdivision 1, is amended to read:

Subdivision 1.

Definition.

For purposes of this section, the following definitions
apply:

(a) "Medical response unit" means an organized service recognized by a local
political subdivision whose primary responsibility is to respond to medical emergencies to
provide initial medical care before the arrival of a licensed ambulance service. Medical
response units may also provide CEMT services as permitted under subdivision 7.

(b) "Specialized medical response unit" means an organized service recognized by a
board-approved authority other than a local political subdivision that responds to medical
emergencies as needed or as required by local procedure or protocol.

Sec. 39.

Minnesota Statutes 2014, section 144E.275, is amended by adding a
subdivision to read:

Subd. 7.

Community medical response emergency medical technician.

(a) To be
eligible for certification by the board as a CEMT, an individual shall:

(1) be currently certified as an EMT or AEMT;

(2) have two years of service as an EMT or AEMT;

(3) be a member of a registered medical response unit as defined under this section;

(4) successfully complete a CEMT training program from a college or university that
has been approved by the board or accredited by a board-approved national accrediting
organization. The training must include clinical experience under the supervision of the
medical response unit medical director, an advanced practice registered nurse, a physician
assistant, or a public health nurse operating under the direct authority of a local unit
of government;

(5) successfully complete a training program that includes training in providing
culturally appropriate care; and

(6) complete a board-approved application form.

(b) A CEMT must practice in accordance with protocols and supervisory standards
established by the medical response unit medical director in accordance with section
144E.265.

(c) A CEMT may provide services within the CEMT skill set as approved by the
medical response unit medical director.

(d) A CEMT may provide episodic individual patient education and prevention
education but only as directed by a patient care plan developed by the patient's primary
physician, an advanced practice registered nurse, or a physician assistant, in conjunction
with the medical response unit medical director and relevant local health care providers.
The patient care plan must ensure that the services provided by the CEMT are consistent
with services offered by the patient's health care home, if one exists, that the patient
receives the necessary services, and that there is no duplication of services to the patient.

(e) A CEMT is subject to all certification, disciplinary, complaint, and other
regulatory requirements that apply to EMTs under this chapter.

(f) A CEMT may not provide services as defined in section 144A.471, subdivisions
6 and 7, except a CEMT may provide verbal or visual reminders to the patient to:

(1) take a regularly scheduled medication, but not to provide or bring the patient
medication; and

(2) follow regularly scheduled treatment or exercise plans.

Sec. 40.

Minnesota Statutes 2014, section 151.58, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For purposes of this section only, the terms defined in this
subdivision have the meanings given.

(a) "Automated drug distribution system" or "system" means a mechanical system
approved by the board that performs operations or activities, other than compounding or
administration, related to the storage, packaging, or dispensing of drugs, and collects,
controls, and maintains all required transaction information and records.

(b) "Health care facility" means a nursing home licensed under section 144A.02;
a housing with services establishment registered under section 144D.01, subdivision 4,
in which a home provider licensed under chapter 144A is providing centralized storage
of medications; a boarding care home licensed under sections 144.50 to 144.58 that is
providing centralized storage of medications; or a Minnesota sex offender program facility
operated by the Department of Human Services.

(c) "Managing pharmacy" means a pharmacy licensed by the board that controls and
is responsible for the operation of an automated drug distribution system.

Sec. 41.

Minnesota Statutes 2014, section 151.58, subdivision 5, is amended to read:

Subd. 5.

Operation of automated drug distribution systems.

(a) The managing
pharmacy and the pharmacist in charge are responsible for the operation of an automated
drug distribution system.

(b) Access to an automated drug distribution system must be limited to pharmacy
and nonpharmacy personnel authorized to procure drugs from the system, except that field
service technicians may access a system located in a health care facility for the purposes of
servicing and maintaining it while being monitored either by the managing pharmacy, or a
licensed nurse within the health care facility. In the case of an automated drug distribution
system that is not physically located within a licensed pharmacy, access for the purpose
of procuring drugs shall be limited to licensed nurses. Each person authorized to access
the system must be assigned an individual specific access code. Alternatively, access to
the system may be controlled through the use of biometric identification procedures. A
policy specifying time access parameters, including time-outs, logoffs, and lockouts,
must be in place.

(c) For the purposes of this section only, the requirements of section 151.215 are met
if the following clauses are met:

(1) a pharmacist employed by and working at the managing pharmacy, or at a
pharmacy that is acting as a central services pharmacy for the managing pharmacy,
pursuant to Minnesota Rules, part 6800.4075, must review, interpret, and approve all
prescription drug orders before any drug is distributed from the system to be administered
to a patient. A pharmacy technician may perform data entry of prescription drug orders
provided that a pharmacist certifies the accuracy of the data entry before the drug can
be released from the automated drug distribution system. A pharmacist employed by
and working at the managing pharmacy must certify the accuracy of the filling of any
cassettes, canisters, or other containers that contain drugs that will be loaded into the
automated drug distribution system, unless the filled cassettes, canisters, or containers
have been provided by a repackager registered with the United States Food and Drug
Administration and licensed by the board as a manufacturer; and

(2) when the automated drug dispensing system is located and used within the
managing pharmacy, a pharmacist must personally supervise and take responsibility for all
packaging and labeling associated with the use of an automated drug distribution system.

(d) Access to drugs when a pharmacist has not reviewed and approved the
prescription drug order is permitted only when a formal and written decision to allow such
access is issued by the pharmacy and the therapeutics committee or its equivalent. The
committee must specify the patient care circumstances in which such access is allowed,
the drugs that can be accessed, and the staff that are allowed to access the drugs.

(e) In the case of an automated drug distribution system that does not utilize bar
coding in the loading process, the loading of a system located in a health care facility may
be performed by a pharmacy technician, so long as the activity is continuously supervised,
through a two-way audiovisual system by a pharmacist on duty within the managing
pharmacy. In the case of an automated drug distribution system that utilizes bar coding
in the loading process, the loading of a system located in a health care facility may be
performed by a pharmacy technician or a licensed nurse, provided that the managing
pharmacy retains an electronic record of loading activities.

(f) The automated drug distribution system must be under the supervision of a
pharmacist. The pharmacist is not required to be physically present at the site of the
automated drug distribution system if the system is continuously monitored electronically
by the managing pharmacy. A pharmacist on duty within a pharmacy licensed by the
board must be continuously available to address any problems detected by the monitoring
or to answer questions from the staff of the health care facility. The licensed pharmacy
may be the managing pharmacy or a pharmacy which is acting as a central services
pharmacy, pursuant to Minnesota Rules, part 6800.4075, for the managing pharmacy.

Sec. 42.

Minnesota Statutes 2014, section 256B.0625, subdivision 3b, is amended to
read:

Subd. 3b.

Telemedicine consultations services.

(a) Medical assistance covers
medically necessary services and consultations delivered by a licensed health care provider
via telemedicine consultations. Telemedicine consultations must be made via two-way,
interactive video or store-and-forward technology. Store-and-forward technology includes
telemedicine consultations that do not occur in real time via synchronous transmissions,
and that do not require a face-to-face encounter with the patient for all or any part of any
such telemedicine consultation. The patient record must include a written opinion from the
consulting physician providing the telemedicine consultation. A communication between
two physicians that consists solely of a telephone conversation is not a telemedicine
consultation in the same manner as if the service or consultation was delivered in person.
Coverage is limited to three telemedicine consultations services per recipient enrollee per
calendar week. Telemedicine consultations services shall be paid at the full allowable rate.

(b) The commissioner shall establish criteria that a health care provider must attest
to in order to demonstrate the safety or efficacy of delivering a particular service via
telemedicine. The attestation may include that the health care provider:

(1) has identified the categories or types of services the health care provider will
provide via telemedicine;

(2) has written policies and procedures specific to telemedicine services that are
regularly reviewed and updated;

(3) has policies and procedures that adequately address patient safety before, during,
and after the telemedicine service is rendered;

(4) has established protocols addressing how and when to discontinue telemedicine
services; and

(5) has an established quality assurance process related to telemedicine services.

(c) As a condition of payment, a licensed health care provider must document
each occurrence of a health service provided by telemedicine to a medical assistance
enrollee. Health care service records for services provided by telemedicine must meet
the requirements set forth in Minnesota Rules, part 9505.2175, subparts 1 and 2, and
must document:

(1) the type of service provided by telemedicine;

(2) the time the service began and the time the service ended, including an a.m. and
p.m. designation;

(3) the licensed health care provider's basis for determining that telemedicine is an
appropriate and effective means for delivering the service to the enrollee;

(4) the mode of transmission of the telemedicine service and records evidencing that
a particular mode of transmission was utilized;

(5) the location of the originating site and the distant site;

(6) if the claim for payment is based on a physician's telemedicine consultation
with another physician, the written opinion from the consulting physician providing the
telemedicine consultation; and

(7) compliance with the criteria attested to by the health care provider in accordance
with paragraph (b).

(d) If a health care provider provides the facility used as the originating site for the
delivery of telemedicine to a patient, the commissioner shall make a facility fee payment
to the originating site health care provider in an amount equivalent to the originated site
fee paid by Medicare. No facility fee shall be paid to a health care provider that is being
paid under a cost-based methodology or if Medicare has already paid the facility fee for an
enrollee who is dually eligible for Medicare and medical assistance.

(e) For purposes of this subdivision, "telemedicine" is defined under section
62A.671, subdivision 9; "licensed health care provider" is defined under section 62A.671,
subdivision 6; "health care provider" is defined under section 62A.671, subdivision 3; and
"originating site" is defined under section 62A.671, subdivision 7.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 43.

Minnesota Statutes 2014, section 256B.0625, subdivision 13, is amended to
read:

Subd. 13.

Drugs.

(a) Medical assistance covers drugs, except for fertility drugs
when specifically used to enhance fertility, if prescribed by a licensed practitioner and
dispensed by a licensed pharmacist, by a physician enrolled in the medical assistance
program as a dispensing physician, or by a physician, physician assistant, or a nurse
practitioner employed by or under contract with a community health board as defined in
section 145A.02, subdivision 5, for the purposes of communicable disease control.

(b) The dispensed quantity of a prescription drug must not exceed a 34-day supply,
unless authorized by the commissioner.

(c) For the purpose of this subdivision and subdivision 13d, an "active
pharmaceutical ingredient" is defined as a substance that is represented for use in a drug
and when used in the manufacturing, processing, or packaging of a drug becomes an
active ingredient of the drug product. An "excipient" is defined as an inert substance
used as a diluent or vehicle for a drug. The commissioner shall establish a list of active
pharmaceutical ingredients and excipients which are included in the medical assistance
formulary. Medical assistance covers selected active pharmaceutical ingredients and
excipients used in compounded prescriptions when the compounded combination is
specifically approved by the commissioner or when a commercially available product:

(1) is not a therapeutic option for the patient;

(2) does not exist in the same combination of active ingredients in the same strengths
as the compounded prescription; and

(3) cannot be used in place of the active pharmaceutical ingredient in the
compounded prescription.

(d) Medical assistance covers the following over-the-counter drugs when prescribed
by a licensed practitioner or by a licensed pharmacist who meets standards established by
the commissioner, in consultation with the board of pharmacy: antacids, acetaminophen,
family planning products, aspirin, insulin, products for the treatment of lice, vitamins for
adults with documented vitamin deficiencies, vitamins for children under the age of seven
and pregnant or nursing women, and any other over-the-counter drug identified by the
commissioner, in consultation with the formulary committee, as necessary, appropriate,
and cost-effective for the treatment of certain specified chronic diseases, conditions,
or disorders, and this determination shall not be subject to the requirements of chapter
14. A pharmacist may prescribe over-the-counter medications as provided under this
paragraph for purposes of receiving reimbursement under Medicaid. When prescribing
over-the-counter drugs under this paragraph, licensed pharmacists must consult with
the recipient to determine necessity, provide drug counseling, review drug therapy
for potential adverse interactions, and make referrals as needed to other health care
professionals. Over-the-counter medications must be dispensed in a quantity that is the
lower lowest of: (1) the number of dosage units contained in the manufacturer's original
package; and (2) the number of dosage units required to complete the patient's course of
therapy; or (3) if applicable, the number of dosage units dispensed from a system using
retrospective billing, as provided under subdivision 13e, paragraph (b).

(e) Effective January 1, 2006, medical assistance shall not cover drugs that
are coverable under Medicare Part D as defined in the Medicare Prescription Drug,
Improvement, and Modernization Act of 2003, Public Law 108-173, section 1860D-2(e),
for individuals eligible for drug coverage as defined in the Medicare Prescription
Drug, Improvement, and Modernization Act of 2003, Public Law 108-173, section
1860D-1(a)(3)(A). For these individuals, medical assistance may cover drugs from the
drug classes listed in United States Code, title 42, section 1396r-8(d)(2), subject to this
subdivision and subdivisions 13a to 13g, except that drugs listed in United States Code,
title 42, section 1396r-8(d)(2)(E), shall not be covered.

(f) Medical assistance covers drugs acquired through the federal 340B Drug Pricing
Program and dispensed by 340B covered entities and ambulatory pharmacies under
common ownership of the 340B covered entity. Medical assistance does not cover drugs
acquired through the federal 340B Drug Pricing Program and dispensed by 340B contract
pharmacies.

EFFECTIVE DATE.

This section is effective January 1, 2016, or upon federal
approval, whichever is later.

Sec. 44.

Minnesota Statutes 2014, section 256B.0625, subdivision 13e, is amended to
read:

Subd. 13e.

Payment rates.

(a) The basis for determining the amount of payment
shall be the lower of the actual acquisition costs of the drugs or the maximum allowable
cost by the commissioner plus the fixed dispensing fee; or the usual and customary price
charged to the public. The amount of payment basis must be reduced to reflect all discount
amounts applied to the charge by any provider/insurer agreement or contract for submitted
charges to medical assistance programs. The net submitted charge may not be greater
than the patient liability for the service. The pharmacy dispensing fee shall be $3.65
for legend prescription drugs, except that the dispensing fee for intravenous solutions
which must be compounded by the pharmacist shall be $8 per bag, $14 per bag for cancer
chemotherapy products, and $30 per bag for total parenteral nutritional products dispensed
in one liter quantities, or $44 per bag for total parenteral nutritional products dispensed in
quantities greater than one liter. The pharmacy dispensing fee for over the counter drugs
shall be $3.65, except that the fee shall be $1.31 for retrospectively billing pharmacies
when billing for quantities less than the number of units contained in the manufacturer's
original package. Actual acquisition cost includes quantity and other special discounts
except time and cash discounts. The actual acquisition cost of a drug shall be estimated
by the commissioner at wholesale acquisition cost plus four percent for independently
owned pharmacies located in a designated rural area within Minnesota, and at wholesale
acquisition cost plus two percent for all other pharmacies. A pharmacy is "independently
owned" if it is one of four or fewer pharmacies under the same ownership nationally. A
"designated rural area" means an area defined as a small rural area or isolated rural area
according to the four-category classification of the Rural Urban Commuting Area system
developed for the United States Health Resources and Services Administration. Effective
January 1, 2014, the actual acquisition cost of a drug acquired through the federal 340B
Drug Pricing Program shall be estimated by the commissioner at wholesale acquisition
cost minus 40 percent. Wholesale acquisition cost is defined as the manufacturer's list
price for a drug or biological to wholesalers or direct purchasers in the United States, not
including prompt pay or other discounts, rebates, or reductions in price, for the most
recent month for which information is available, as reported in wholesale price guides or
other publications of drug or biological pricing data. The maximum allowable cost of a
multisource drug may be set by the commissioner and it shall be comparable to, but no
higher than, the maximum amount paid by other third-party payors in this state who have
maximum allowable cost programs. Establishment of the amount of payment for drugs
shall not be subject to the requirements of the Administrative Procedure Act.

(b) Pharmacies dispensing prescriptions to residents of long-term care facilities
using an automated drug distribution system meeting the requirements of section 151.58,
or a packaging system meeting the packaging standards set forth in Minnesota Rules, part
6800.2700, that govern the return of unused drugs to the pharmacy for reuse, may employ
retrospective billing for prescription drugs dispensed to long-term care facility residents.
A retrospectively billing pharmacy must submit a claim only for the quantity of medication
used by the enrolled recipient during the defined billing period. A retrospectively billing
pharmacy must use a billing period not less than one calendar month or 30 days.

(c) An additional dispensing fee of $.30 may be added to the dispensing fee paid to
pharmacists for legend drug prescriptions dispensed to residents of long-term care facilities
when a unit dose blister card system, approved by the department, is used. Under this type
of dispensing system, the pharmacist must dispense a 30-day supply of drug. The National
Drug Code (NDC) from the drug container used to fill the blister card must be identified on
the claim to the department. The unit dose blister card containing the drug must meet the
packaging standards set forth in Minnesota Rules, part 6800.2700, that govern the return of
unused drugs to the pharmacy for reuse. The A pharmacy provider will be using packaging
that meets the standards set forth in Minnesota Rules, part 6800.2700, is required to credit
the department for the actual acquisition cost of all unused drugs that are eligible for reuse,
unless the pharmacy is using retrospective billing. The commissioner may permit the drug
clozapine to be dispensed in a quantity that is less than a 30-day supply.

(c) (d) Whenever a maximum allowable cost has been set for a multisource drug,
payment shall be the lower of the usual and customary price charged to the public or the
maximum allowable cost established by the commissioner unless prior authorization
for the brand name product has been granted according to the criteria established by
the Drug Formulary Committee as required by subdivision 13f, paragraph (a), and the
prescriber has indicated "dispense as written" on the prescription in a manner consistent
with section 151.21, subdivision 2.

(d) (e) The basis for determining the amount of payment for drugs administered in
an outpatient setting shall be the lower of the usual and customary cost submitted by
the provider, 106 percent of the average sales price as determined by the United States
Department of Health and Human Services pursuant to title XVIII, section 1847a of the
federal Social Security Act, the specialty pharmacy rate, or the maximum allowable cost
set by the commissioner. If average sales price is unavailable, the amount of payment
must be lower of the usual and customary cost submitted by the provider, the wholesale
acquisition cost, the specialty pharmacy rate, or the maximum allowable cost set by the
commissioner. Effective January 1, 2014, the commissioner shall discount the payment
rate for drugs obtained through the federal 340B Drug Pricing Program by 20 percent. The
payment for drugs administered in an outpatient setting shall be made to the administering
facility or practitioner. A retail or specialty pharmacy dispensing a drug for administration
in an outpatient setting is not eligible for direct reimbursement.

(e) (f) The commissioner may negotiate lower reimbursement rates for specialty
pharmacy products than the rates specified in paragraph (a). The commissioner may
require individuals enrolled in the health care programs administered by the department
to obtain specialty pharmacy products from providers with whom the commissioner has
negotiated lower reimbursement rates. Specialty pharmacy products are defined as those
used by a small number of recipients or recipients with complex and chronic diseases
that require expensive and challenging drug regimens. Examples of these conditions
include, but are not limited to: multiple sclerosis, HIV/AIDS, transplantation, hepatitis
C, growth hormone deficiency, Crohn's Disease, rheumatoid arthritis, and certain forms
of cancer. Specialty pharmaceutical products include injectable and infusion therapies,
biotechnology drugs, antihemophilic factor products, high-cost therapies, and therapies
that require complex care. The commissioner shall consult with the formulary committee
to develop a list of specialty pharmacy products subject to this paragraph. In consulting
with the formulary committee in developing this list, the commissioner shall take into
consideration the population served by specialty pharmacy products, the current delivery
system and standard of care in the state, and access to care issues. The commissioner shall
have the discretion to adjust the reimbursement rate to prevent access to care issues.

(f) (g) Home infusion therapy services provided by home infusion therapy
pharmacies must be paid at rates according to subdivision 8d.

EFFECTIVE DATE.

This section is effective January 1, 2016, or upon federal
approval, whichever is later.

Sec. 45.

Minnesota Statutes 2014, section 256B.072, is amended to read:

256B.072 PERFORMANCE REPORTING AND QUALITY IMPROVEMENT
SYSTEM.

(a) The commissioner of human services shall establish a performance reporting
system for health care providers who provide health care services to public program
recipients covered under chapters 256B, 256D, and 256L, reporting separately for
managed care and fee-for-service recipients.

(b) The measures used for the performance reporting system for medical groups
shall include measures of care for asthma, diabetes, hypertension, and coronary artery
disease and measures of preventive care services. The measures used for the performance
reporting system for inpatient hospitals shall include measures of care for acute myocardial
infarction, heart failure, and pneumonia, and measures of care and prevention of surgical
infections. In the case of a medical group, the measures used shall be consistent with
measures published by nonprofit Minnesota or national organizations that produce and
disseminate health care quality measures or evidence-based health care guidelines. In
the case of inpatient hospital measures, the commissioner shall appoint the Minnesota
Hospital Association and Stratis Health to advise on the development of the performance
measures to be used for hospital reporting. To enable a consistent measurement process
across the community, the commissioner may use measures of care provided for patients in
addition to those identified in paragraph (a). The commissioner shall ensure collaboration
with other health care reporting organizations so that the measures described in this
section are consistent with those reported by those organizations and used by other
purchasers in Minnesota.

(c) The commissioner may require providers to submit information in a required
format to a health care reporting organization or to cooperate with the information collection
procedures of that organization. The commissioner may collaborate with a reporting
organization to collect information reported and to prevent duplication of reporting.

(d) By October 1, 2007, and annually thereafter, the commissioner shall report
through a public Web site the results by medical groups and hospitals, where possible,
of the measures under this section, and shall compare the results by medical groups and
hospitals for patients enrolled in public programs to patients enrolled in private health
plans. To achieve this reporting, the commissioner may collaborate with a health care
reporting organization that operates a Web site suitable for this purpose.

(e) Performance measures must be stratified as provided under section 62U.02,
subdivision 1, paragraph (b), and risk-adjusted as specified in section 62U.02, subdivision
3, paragraph (b).

Sec. 46.

Minnesota Statutes 2014, section 256B.69, subdivision 6, is amended to read:

Subd. 6.

Service delivery.

(a) Each demonstration provider shall be responsible for
the health care coordination for eligible individuals. Demonstration providers:

(1) shall authorize and arrange for the provision of all needed health services
including but not limited to the full range of services listed in sections 256B.02,
subdivision 8, and 256B.0625 in order to ensure appropriate health care is delivered to
enrollees. Notwithstanding section 256B.0621, demonstration providers that provide
nursing home and community-based services under this section shall provide relocation
service coordination to enrolled persons age 65 and over;

(2) shall accept the prospective, per capita payment from the commissioner in return
for the provision of comprehensive and coordinated health care services for eligible
individuals enrolled in the program;

(3) may contract with other health care and social service practitioners to provide
services to enrollees; and

(4) shall institute recipient grievance procedures according to the method established
by the project, utilizing applicable requirements of chapter 62D. Disputes not resolved
through this process shall be appealable to the commissioner as provided in subdivision 11.

(b) Demonstration providers must comply with the standards for claims settlement
under section 72A.201, subdivisions 4, 5, 7, and 8, when contracting with other health
care and social service practitioners to provide services to enrollees. A demonstration
provider must pay a clean claim, as defined in Code of Federal Regulations, title 42,
section 447.45(b), within 30 business days of the date of acceptance of the claim.

(c) Managed care plans and county-based purchasing plans must comply with
chapter 62M and section 62Q.85.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 47. PRESCRIPTION DRUG ADVISORY COUNCIL.

The commissioner of health shall make the first appointments to the Prescription
Drug Advisory Council established in Minnesota Statutes, section 62Q.85, subdivision 6,
by October 2, 2015, and convene the first meeting by November 1, 2015. The council
shall select a chair from among its members at the first meeting of the council.

EFFECTIVE DATE.

This section is effective August 1, 2015.

Sec. 48. PROPOSAL FOR CHILD PROTECTION FOCUSED "COMMUNITY
MEDICAL RESPONSE EMERGENCY MEDICAL TECHNICIAN" (CEMT)
MODEL.

The commissioner shall develop a proposal for a pilot project to create a
community-based support system that coordinates services between child protection
services and community emergency medical technicians. This pilot project model shall
be developed with the input of stakeholders that represent both child protection services
and community emergency medical technicians. The model must be designed so that the
collaborative effort results in increased safety for children and increased support for
families. The pilot project model must be reviewed by the Task Force on the Protection of
Children, and the commissioner shall make recommendations for the pilot project to the
members of the legislative committees with primary jurisdiction over CEMT and child
protection issues no later than January 15, 2016.

Sec. 49. COMMUNITY MEDICAL RESPONSE EMERGENCY MEDICAL
TECHNICIAN SERVICES COVERED UNDER THE MEDICAL ASSISTANCE
PROGRAM.

(a) The commissioner of human services, in consultation with representatives of
emergency medical service providers, public health nurses, community health workers,
the Minnesota State Fire Chiefs Association, the Minnesota Professional Firefighters
Association, the Minnesota State Firefighters Department Association, Minnesota
Academy of Family Physicians, Minnesota Licensed Practical Nurses Association,
Minnesota Nurses Association, and local public health agencies, shall determine specified
services and payment rates for these services to be performed by community medical
response emergency medical technicians certified under Minnesota Statutes, section
144E.275, subdivision 7, and covered by medical assistance under Minnesota Statutes,
section 256B.0625. Services must be in the CEMT skill set and may include interventions
intended to prevent avoidable ambulance transportation or hospital emergency department
use.

(b) In order to be eligible for payment, services provided by a community medical
response emergency medical technician must be:

(1) ordered by a medical response unit medical director;

(2) part of a patient care plan that has been developed in coordination with the
patient's primary physician, advanced practice registered nurse, and relevant local health
care providers; and

(3) billed by an eligible medical assistance enrolled provider that employs or
contracts with the community medical response emergency medical technician.

In determining the community medical response emergency medical technician services
to include under medical assistance coverage, the commissioner of human services shall
consider the potential of hospital admittance and emergency room utilization reductions as
well as increased access to quality care in rural communities.

(c) The commissioner of human services shall submit the list of services to be
covered by medical assistance to the chairs and ranking minority members of the
legislative committees with jurisdiction over health and human services policy and
spending by February 15, 2016. These services shall not be covered by medical assistance
until legislation providing coverage for the services is enacted in law.

Sec. 50. EVALUATION OF COMMUNITY MEDICAL RESPONSE
EMERGENCY MEDICAL TECHNICIAN SERVICES.

If legislation is enacted to cover community medical response emergency medical
technician services with medical assistance, the commissioner of human services shall
evaluate the effect of medical assistance and MinnesotaCare coverage for those services
on the cost and quality of care under those programs and the coordination of those services
with the health care home services. The commissioner shall present findings to the chairs
and ranking minority members of the legislative committees with jurisdiction over health
and human services policy and spending by December 1, 2017. The commissioner shall
require medical assistance and MinnesotaCare enrolled providers that employ or contract
with community medical response emergency medical technicians to provide to the
commissioner, in the form and manner specified by the commissioner, the utilization, cost,
and quality data necessary to conduct this evaluation.

Sec. 51. REVISOR INSTRUCTION.

The revisor of statutes shall change "sections 62M.01 to 62M.16" to "sections
62M.01 to 62M.17" wherever the term appears in Minnesota Statutes, chapter 62M.

EFFECTIVE DATE.

This section is effective August 1, 2015.

ARTICLE 9

HEALTH LICENSING BOARDS

Section 1.

Minnesota Statutes 2014, section 148.57, subdivision 1, is amended to read:

Subdivision 1.

Examination.

(a) A person not authorized to practice optometry in
the state and desiring to do so shall apply to the state Board of Optometry by filling out
and swearing to an application for a license granted by the board and accompanied by a
fee in an amount of $87 established by the board, not to exceed the amount specified in
section 148.59. With the submission of the application form, the candidate shall prove
that the candidate:

(1) is of good moral character;

(2) has obtained a clinical doctorate degree from a board-approved school or college
of optometry, or is currently enrolled in the final year of study at such an institution; and

(3) has passed all parts of an examination.

(b) The examination shall include both a written portion and a clinical practical
portion and shall thoroughly test the fitness of the candidate to practice in this state. In
regard to the written and clinical practical examinations, the board may:

(1) prepare, administer, and grade the examination itself;

(2) recognize and approve in whole or in part an examination prepared, administered
and graded by a national board of examiners in optometry; or

(3) administer a recognized and approved examination prepared and graded by or
under the direction of a national board of examiners in optometry.

(c) The board shall issue a license to each applicant who satisfactorily passes the
examinations and fulfills the other requirements stated in this section and section 148.575
for board certification for the use of legend drugs. Applicants for initial licensure do not
need to apply for or possess a certificate as referred to in sections 148.571 to 148.574. The
fees mentioned in this section are for the use of the board and in no case shall be refunded.

Sec. 2.

Minnesota Statutes 2014, section 148.57, subdivision 2, is amended to read:

Subd. 2.

Endorsement.

An optometrist who holds a current license from another
state, and who has practiced in that state not less than three years immediately preceding
application, may apply for licensure in Minnesota by filling out and swearing to an
application for license by endorsement furnished by the board. The completed application
with all required documentation shall be filed at the board office along with a fee of $87
established by the board, not to exceed the amount specified in section 148.59. The
application fee shall be for the use of the board and in no case shall be refunded. To
verify that the applicant possesses the knowledge and ability essential to the practice of
optometry in this state, the applicant must provide evidence of:

(1) having obtained a clinical doctorate degree from a board-approved school
or college of optometry;

(2) successful completion of both written and practical examinations for licensure in
the applicant's original state of licensure that thoroughly tested the fitness of the applicant
to practice;

(3) successful completion of an examination of Minnesota state optometry laws;

(4) compliance with the requirements for board certification in section 148.575;

(5) compliance with all continuing education required for license renewal in every
state in which the applicant currently holds an active license to practice; and

(6) being in good standing with every state board from which a license has been
issued.

Documentation from a national certification system or program, approved by the
board, which supports any of the listed requirements, may be used as evidence. The
applicant may then be issued a license if the requirements for licensure in the other state
are deemed by the board to be equivalent to those of sections 148.52 to 148.62.

Sec. 3.

Minnesota Statutes 2014, section 148.59, is amended to read:

148.59 LICENSE RENEWAL; FEE LICENSE AND REGISTRATION FEES.

A licensed optometrist shall pay to the state Board of Optometry a fee as set by the
board in order to renew a license as provided by board rule. No fees shall be refunded.
Fees may not exceed the following amounts but may be adjusted lower by board direction
and are for the exclusive use of the board:

(1) optometry licensure application, $160;

(2) optometry annual licensure renewal, $135;

(3) optometry late penalty fee, $75;

(4) annual license renewal card, $10;

(5) continuing education provider application, $45;

(6) emeritus registration, $10;

(7) endorsement/reciprocity application, $160;

(8) replacement of initial license, $12; and

(9) license verification, $50.

Sec. 4.

Minnesota Statutes 2014, section 148E.075, is amended to read:

148E.075 INACTIVE LICENSES ALTERNATE LICENSES.

Subdivision 1.

Inactive status Temporary leave license.

(a) A licensee qualifies
for inactive status under either of the circumstances described in paragraph (b) or (c).

(b) A licensee qualifies for inactive status when the licensee is granted temporary
leave from active practice. A licensee qualifies for temporary leave from active practice if
the licensee demonstrates to the satisfaction of the board that the licensee is not engaged
in the practice of social work in any setting, including settings in which social workers are
exempt from licensure according to section 148E.065. A licensee who is granted temporary
leave from active practice may reactivate the license according to section 148E.080.

(b) A licensee may maintain a temporary leave license for no more than four
consecutive years.

(c) A licensee qualifies for inactive status when a licensee is granted an emeritus
license. A licensee qualifies for an emeritus license if the licensee demonstrates to the
satisfaction of the board that:

(1) the licensee is retired from social work practice; and

(2) the licensee is not engaged in the practice of social work in any setting, including
settings in which social workers are exempt from licensure according to section 148E.065.

A licensee who possesses an emeritus license may reactivate the license according to
section 148E.080.

(c) A licensee who is granted temporary leave from active practice may reactivate
the license according to section 148E.080. If a licensee does not apply for reactivation
within 60 days following the end of the consecutive four-year period, the license
automatically expires. An individual with an expired license may apply for new licensure
according to section 148E.055.

(d) Except as provided in paragraph (e), a licensee who holds a temporary leave
license must not practice, attempt to practice, offer to practice, or advertise or hold out as
authorized to practice social work.

(e) The board may grant a variance to the requirements of paragraph (d) if a licensee
on temporary leave license provides emergency social work services. A variance is
granted only if the board provides the variance in writing to the licensee. The board may
impose conditions or restrictions on the variance.

(f) In making representations of professional status to the public, when holding a
temporary leave license, a licensee must state that the license is not active and that the
licensee cannot practice social work.

Subd. 1a.

Emeritus inactive license.

(a) A licensee qualifies for an emeritus inactive
license if the licensee demonstrates to the satisfaction of the board that the licensee is:

(1) retired from social work practice; and

(2) not engaged in the practice of social work in any setting, including settings in
which social workers are exempt from licensure according to section 148E.065.

(b) A licensee with an emeritus inactive license may apply for reactivation according
to section 148E.080 only during the four years following the granting of the emeritus
inactive license. However, after four years following the granting of the emeritus inactive
license, an individual may apply for new licensure according to section 148E.055.

(c) Except as provided in paragraph (d), a licensee who holds an emeritus inactive
license must not practice, attempt to practice, offer to practice, or advertise or hold out as
authorized to practice social work.

(d) The board may grant a variance to the requirements of paragraph (c) if a licensee
on emeritus inactive license provides emergency social work services. A variance is
granted only if the board provides the variance in writing to the licensee. The board may
impose conditions or restrictions on the variance.

(e) In making representations of professional status to the public, when holding
an emeritus inactive license, a licensee must state that the license is not active and that
the licensee cannot practice social work.

Subd. 1b.

Emeritus active license.

(a) A licensee qualifies for an emeritus active
license if the applicant demonstrates to the satisfaction of the board that the licensee is:

(1) retired from social work practice; and

(2) in compliance with the supervised practice requirements, as applicable, under
sections 148E.100 to 148E.125.

(b) A licensee who is issued an emeritus active license is only authorized to engage in:

(1) pro bono or unpaid social work practice as specified in section 148E.010,
subdivisions 6 and 11; or

(2) paid social work practice not to exceed 240 clock hours per calendar year, for the
exclusive purpose of providing licensing supervision as specified in sections 148E.100 to
148E.125; and

(3) the authorized scope of practice specified in section 148E.050.

(c) An emeritus active license must be renewed according to the requirements
specified in section 148E.070, subdivisions 1, 2, 3, 4, and 5.

(d) At the time of license renewal a licensee must provide evidence satisfactory to the
board that the licensee has, during the renewal term, completed 20 clock hours of continuing
education, including at least two clock hours in ethics, as specified in section 148E.130:

(1) for licensed independent clinical social workers, at least 12 clock hours must be
in the clinical content areas specified in section 148E.055, subdivision 5; and

(2) for social workers providing supervision according to sections 148E.100 to
148E.125, at least three clock hours must be in the practice of supervision.

(e) Independent study hours must not consist of more than eight clock hours of
continuing education per renewal term.

(f) Failure to renew an active emeritus license on the expiration date will result in an
expired license as specified in section 148E.070, subdivision 5.

(g) The board may grant a variance to the requirements of paragraph (b) if a licensee
holding an emeritus active license provides emergency social work services. A variance is
granted only if the board provides the variance in writing to the licensee. The board may
impose conditions or restrictions on the variance.

(h) In making representations of professional status to the public, when holding an
emeritus active license, a licensee must state that an emeritus active license authorizes
only pro bono or unpaid social work practice, or paid social work practice not to exceed
240 clock hours per calendar year, for the exclusive purpose of providing licensing
supervision as specified in sections 148E.100 to 148E.125.

(i) Notwithstanding the time limit and emeritus active license renewal requirements
specified in this section, a licensee who possesses an emeritus active license may
reactivate the license according to section 148E.080 or apply for new licensure according
to section 148E.055.

Subd. 2.

Application.

A licensee may apply for inactive status temporary leave
license, emeritus inactive license, or emeritus active license:

(1) at any time when currently licensed under section 148E.055, 148E.0555,
148E.0556, or 148E.0557, or when licensed as specified in section 148E.075, by
submitting an application for a temporary leave from active practice or for an emeritus
license form required by the board; or

(2) as an alternative to applying for the renewal of a license by so recording on the
application for license renewal form required by the board and submitting the completed,
signed application to the board.

An application that is not completed or signed, or that is not accompanied by the
correct fee, must be returned to the applicant, along with any fee submitted, and is void.
For applications submitted electronically, a "signed application" means providing an
attestation as specified by the board.

Subd. 3.

Fee.

(a) Regardless of when the application for inactive status temporary
leave license or emeritus inactive license is submitted, the temporary leave license or
emeritus inactive license fee specified in section 148E.180, whichever is applicable, must
accompany the application. A licensee who is approved for inactive status temporary
leave license or emeritus inactive license before the license expiration date is not entitled
to receive a refund for any portion of the license or renewal fee.

(b) If an application for temporary leave license or emeritus active license is received
after the license expiration date, the licensee must pay a renewal late fee as specified in
section 148E.180 in addition to the temporary leave fee.

(c) Regardless of when the application for emeritus active license is submitted,
the emeritus active license fee is one-half of the renewal fee for the applicable license
specified in section 148E.180, subdivision 3, and must accompany the application. A
licensee who is approved for emeritus active license before the license expiration date is
not entitled to receive a refund for any portion of the license or renewal fee.

Subd. 4.

Time limits for temporary leaves.

A licensee may maintain an inactive
license on temporary leave for no more than five consecutive years. If a licensee does
not apply for reactivation within 60 days following the end of the consecutive five-year
period, the license automatically expires.

Subd. 5.

Time limits for emeritus license.

A licensee with an emeritus license may
not apply for reactivation according to section 148E.080 after five years following the
granting of the emeritus license. However, after five years following the granting of the
emeritus license, an individual may apply for new licensure according to section 148E.055.

Subd. 6.

Prohibition on practice.

(a) Except as provided in paragraph (b), a
licensee whose license is inactive must not practice, attempt to practice, offer to practice,
or advertise or hold out as authorized to practice social work.

(b) The board may grant a variance to the requirements of paragraph (a) if a licensee
on inactive status provides emergency social work services. A variance is granted only
if the board provides the variance in writing to the licensee. The board may impose
conditions or restrictions on the variance.

Subd. 7.

Representations of professional status.

In making representations of
professional status to the public, a licensee whose license is inactive must state that the
license is inactive and that the licensee cannot practice social work.

Subd. 8.

Disciplinary or other action.

The board may resolve any pending
complaints against a licensee before approving an application for inactive status an
alternate license specified in this section. The board may take action according to sections
148E.255 to 148E.270 against a licensee whose license is inactive who is issued an
alternate license specified in this section based on conduct occurring before the license is
inactive or conduct occurring while the license is inactive effective.

Sec. 5.

Minnesota Statutes 2014, section 148E.080, subdivision 1, is amended to read:

Subdivision 1.

Mailing notices to licensees on temporary leave.

The board must
mail a notice for reactivation to a licensee on temporary leave at least 45 days before the
expiration date of the license according to section 148E.075, subdivision 4 1. Mailing
the notice by United States mail to the licensee's last known mailing address constitutes
valid mailing. Failure to receive the reactivation notice does not relieve a licensee of the
obligation to comply with the provisions of this section to reactivate a license.

Sec. 6.

Minnesota Statutes 2014, section 148E.080, subdivision 2, is amended to read:

Subd. 2.

Reactivation from a temporary leave or emeritus status.

To reactivate a
license from a temporary leave or emeritus status, a licensee must do the following within
the time period specified in section 148E.075, subdivisions 4 and 5 1, 1a, and 1b:

(1) complete an application form specified by the board;

(2) document compliance with the continuing education requirements specified in
subdivision 4;

(3) submit a supervision plan, if required;

(4) pay the reactivation of an inactive licensee a license fee specified in section
148E.180; and

(5) pay the wall certificate fee according to section 148E.095, subdivision 1,
paragraph (b) or (c), if the licensee needs a duplicate license.

Sec. 7.

Minnesota Statutes 2014, section 148E.180, subdivision 2, is amended to read:

Subd. 2.

License fees.

License fees are as follows:

(1) for a licensed social worker, $81;

(2) for a licensed graduate social worker, $144;

(3) for a licensed independent social worker, $216;

(4) for a licensed independent clinical social worker, $238.50;

(5) for an emeritus inactive license, $43.20; and

(6) for an emeritus active license, one-half of the renewal fee specified in subdivision
3; and

(7) for a temporary leave fee, the same as the renewal fee specified in subdivision 3.

If the licensee's initial license term is less or more than 24 months, the required
license fees must be prorated proportionately.

Sec. 8.

Minnesota Statutes 2014, section 148E.180, subdivision 5, is amended to read:

Subd. 5.

Late fees.

Late fees are as follows:

(1) renewal late fee, one-fourth of the renewal fee specified in subdivision 3; and

(2) supervision plan late fee, $40.; and

(3) license late fee, $100 plus the prorated share of the license fee specified in
subdivision 2 for the number of months during which the individual practiced social
work without a license.

Sec. 9.

Minnesota Statutes 2014, section 150A.091, subdivision 4, is amended to read:

Subd. 4.

Annual license fees.

Each limited faculty or resident dentist shall submit
with an annual license renewal application a fee established by the board not to exceed
the following amounts:

(1) limited faculty dentist, $168; and

(2) resident dentist or dental provider, $59 $85.

Sec. 10.

Minnesota Statutes 2014, section 150A.091, subdivision 5, is amended to read:

Subd. 5.

Biennial license or permit fees.

Each of the following applicants shall
submit with a biennial license or permit renewal application a fee as established by the
board, not to exceed the following amounts:

(1) dentist or full faculty dentist, $336 $475;

(2) dental therapist, $180 $300;

(3) dental hygienist, $118 $200;

(4) licensed dental assistant, $80 $150; and

(5) dental assistant with a permit as described in Minnesota Rules, part 3100.8500,
subpart 3, $24.

Sec. 11.

Minnesota Statutes 2014, section 150A.091, subdivision 11, is amended to read:

Subd. 11.

Certificate application fee for anesthesia/sedation.

Each dentist
shall submit with a general anesthesia or moderate sedation application or, a contracted
sedation provider application, or biennial renewal, a fee as established by the board not to
exceed the following amounts:

(1) for both a general anesthesia and moderate sedation application, $250 $400;

(2) for a general anesthesia application only, $250 $400;

(3) for a moderate sedation application only, $250 $400; and

(4) for a contracted sedation provider application, $250 $400.

Sec. 12.

Minnesota Statutes 2014, section 150A.091, is amended by adding a
subdivision to read:

Subd. 17.

Advanced dental therapy examination fee.

Any dental therapist eligible
to sit for the advanced dental therapy certification examination must submit with the
application a fee as established by the board, not to exceed $250.

Sec. 13.

Minnesota Statutes 2014, section 150A.091, is amended by adding a
subdivision to read:

Subd. 18.

Corporation or professional firm late fee.

Any corporation or
professional firm whose annual fee is not postmarked or otherwise received by the board
by the due date of December 31 shall, in addition to the fee, submit a late fee as established
by the board, not to exceed $15.

Sec. 14.

Minnesota Statutes 2014, section 150A.31, is amended to read:

150A.31 FEES.

(a) The initial biennial registration fee is $50.

(b) The biennial renewal registration fee is $25 not to exceed $80.

(c) The fees specified in this section are nonrefundable and shall be deposited in
the state government special revenue fund.

Sec. 15.

Minnesota Statutes 2014, section 151.065, subdivision 1, is amended to read:

Subdivision 1.

Application fees.

Application fees for licensure and registration
are as follows:

(1) pharmacist licensed by examination, $130 $145;

(2) pharmacist licensed by reciprocity, $225 $240;

(3) pharmacy intern, $30 $37.50;

(4) pharmacy technician, $30 $37.50;

(5) pharmacy, $190 $225;

(6) drug wholesaler, legend drugs only, $200 $235;

(7) drug wholesaler, legend and nonlegend drugs, $200 $235;

(8) drug wholesaler, nonlegend drugs, veterinary legend drugs, or both, $175 $210;

(9) drug wholesaler, medical gases, $150 $175;

(10) drug wholesaler, also licensed as a pharmacy in Minnesota, $125 $150;

(11) drug manufacturer, legend drugs only, $200 $235;

(12) drug manufacturer, legend and nonlegend drugs, $200 $235;

(13) drug manufacturer, nonlegend or veterinary legend drugs, $175 $210;

(14) drug manufacturer, medical gases, $150 $185;

(15) drug manufacturer, also licensed as a pharmacy in Minnesota, $125 $150;

(16) medical gas distributor, $75 $110;

(17) controlled substance researcher, $50 $75; and

(18) pharmacy professional corporation, $100 $125.

Sec. 16.

Minnesota Statutes 2014, section 151.065, subdivision 2, is amended to read:

Subd. 2.

Original license fee.

The pharmacist original licensure fee, $130 $145.

Sec. 17.

Minnesota Statutes 2014, section 151.065, subdivision 3, is amended to read:

Subd. 3.

Annual renewal fees.

Annual licensure and registration renewal fees
are as follows:

(1) pharmacist, $130 $145;

(2) pharmacy technician, $30 $37.50;

(3) pharmacy, $190 $225;

(4) drug wholesaler, legend drugs only, $200 $235;

(5) drug wholesaler, legend and nonlegend drugs, $200 $235;

(6) drug wholesaler, nonlegend drugs, veterinary legend drugs, or both, $175 $210;

(7) drug wholesaler, medical gases, $150 $185;

(8) drug wholesaler, also licensed as a pharmacy in Minnesota, $125 $150;

(9) drug manufacturer, legend drugs only, $200 $235;

(10) drug manufacturer, legend and nonlegend drugs, $200 $235;

(11) drug manufacturer, nonlegend, veterinary legend drugs, or both, $175 $210;

(12) drug manufacturer, medical gases, $150 $185;

(13) drug manufacturer, also licensed as a pharmacy in Minnesota, $125 $150;

(14) medical gas distributor, $75 $110;

(15) controlled substance researcher, $50 $75; and

(16) pharmacy professional corporation, $45 $75.

Sec. 18.

Minnesota Statutes 2014, section 151.065, subdivision 4, is amended to read:

Subd. 4.

Miscellaneous fees.

Fees for issuance of affidavits and duplicate licenses
and certificates are as follows:

(1) intern affidavit, $15 $20;

(2) duplicate small license, $15 $20; and

(3) duplicate large certificate, $25 $30.

Sec. 19. REPEALER.

Minnesota Statutes 2014, sections 148E.060, subdivision 12; and 148E.075,
subdivisions 4, 5, 6, and 7, are repealed.

ARTICLE 10

HEALTH CARE

Section 1.

Minnesota Statutes 2014, section 16A.724, subdivision 2, is amended to read:

Subd. 2.

Transfers.

(a) Notwithstanding section 295.581, to the extent available
resources in the health care access fund exceed expenditures in that fund, effective for
the biennium beginning July 1, 2007, the commissioner of management and budget shall
transfer the excess funds from the health care access fund to the general fund on June 30
of each year, provided that the amount transferred in any fiscal biennium shall not exceed
$96,000,000. The purpose of this transfer is to meet the rate increase required under Laws
2003, First Special Session chapter 14, article 13C, section 2, subdivision 6.

(b) For fiscal years 2006 to 2011, MinnesotaCare shall be a forecasted program, and,
if necessary, The commissioner shall reduce these transfers from the health care access
fund to the general fund to meet annual MinnesotaCare expenditures or, if necessary,
transfer sufficient funds from the general fund to the health care access fund to meet
annual MinnesotaCare expenditures.

(c) Notwithstanding section 295.581, to the extent available resources in the health
care access fund exceed expenditures in that fund after the transfer required in paragraph
(a), effective for the biennium beginning July 1, 2013, the commissioner of management
and budget shall transfer $1,000,000 each fiscal year from the health access fund to
the medical education and research costs fund established under section 62J.692, for
distribution under section 62J.692, subdivision 4, paragraph (c).

Sec. 2.

Minnesota Statutes 2014, section 62A.045, is amended to read:

62A.045 PAYMENTS ON BEHALF OF ENROLLEES IN GOVERNMENT
HEALTH PROGRAMS.

(a) As a condition of doing business in Minnesota or providing coverage to
residents of Minnesota covered by this section, each health insurer shall comply with the
requirements of the federal Deficit Reduction Act of 2005, Public Law 109-171, including
any federal regulations adopted under that act, to the extent that it imposes a requirement
that applies in this state and that is not also required by the laws of this state. This section
does not require compliance with any provision of the federal act prior to the effective date
provided for that provision in the federal act. The commissioner shall enforce this section.

For the purpose of this section, "health insurer" includes self-insured plans, group
health plans (as defined in section 607(1) of the Employee Retirement Income Security
Act of 1974), service benefit plans, managed care organizations, pharmacy benefit
managers, or other parties that are by contract legally responsible to pay a claim for a
health-care item or service for an individual receiving benefits under paragraph (b).

(b) No plan offered by a health insurer issued or renewed to provide coverage to
a Minnesota resident shall contain any provision denying or reducing benefits because
services are rendered to a person who is eligible for or receiving medical benefits pursuant
to title XIX of the Social Security Act (Medicaid) in this or any other state; chapter 256;
256B; or 256D or services pursuant to section 252.27; 256L.01 to 256L.10; 260B.331,
subdivision 2; 260C.331, subdivision 2; or 393.07, subdivision 1 or 2. No health insurer
providing benefits under plans covered by this section shall use eligibility for medical
programs named in this section as an underwriting guideline or reason for nonacceptance
of the risk.

(c) If payment for covered expenses has been made under state medical programs for
health care items or services provided to an individual, and a third party has a legal liability
to make payments, the rights of payment and appeal of an adverse coverage decision for the
individual, or in the case of a child their responsible relative or caretaker, will be subrogated
to the state agency. The state agency may assert its rights under this section within three
years of the date the service was rendered. For purposes of this section, "state agency"
includes prepaid health plans under contract with the commissioner according to sections
256B.69, 256D.03, subdivision 4, paragraph (c), and 256L.12; children's mental health
collaboratives under section 245.493; demonstration projects for persons with disabilities
under section 256B.77; nursing homes under the alternative payment demonstration project
under section 256B.434; and county-based purchasing entities under section 256B.692.

(d) Notwithstanding any law to the contrary, when a person covered by a plan
offered by a health insurer receives medical benefits according to any statute listed in this
section, payment for covered services or notice of denial for services billed by the provider
must be issued directly to the provider. If a person was receiving medical benefits through
the Department of Human Services at the time a service was provided, the provider must
indicate this benefit coverage on any claim forms submitted by the provider to the health
insurer for those services. If the commissioner of human services notifies the health
insurer that the commissioner has made payments to the provider, payment for benefits or
notices of denials issued by the health insurer must be issued directly to the commissioner.
Submission by the department to the health insurer of the claim on a Department of
Human Services claim form is proper notice and shall be considered proof of payment of
the claim to the provider and supersedes any contract requirements of the health insurer
relating to the form of submission. Liability to the insured for coverage is satisfied to the
extent that payments for those benefits are made by the health insurer to the provider or
the commissioner as required by this section.

(e) When a state agency has acquired the rights of an individual eligible for medical
programs named in this section and has health benefits coverage through a health insurer,
the health insurer shall not impose requirements that are different from requirements
applicable to an agent or assignee of any other individual covered.

(f) A health insurer must process a clean claim made by a state agency for covered
expenses paid under state medical programs within 90 business days of the claim's
submission. A health insurer must process all other claims made by a state agency for
covered expenses paid under a state medical program within the timeline set forth in Code
of Federal Regulations, title 42, section 447.45(d)(4).

(g) A health insurer may request a refund of a claim paid in error to the Department
of Human Services within two years of the date the payment was made to the department.
A request for a refund shall not be honored by the department if the health insurer makes
the request after the time period has lapsed.

Sec. 3.

Minnesota Statutes 2014, section 174.29, subdivision 1, is amended to read:

Subdivision 1.

Definition.

For the purpose of sections 174.29 and 174.30 "special
transportation service" means motor vehicle transportation provided on a regular basis
by a public or private entity or person that is designed exclusively or primarily to serve
individuals who are elderly or disabled and who are unable to use regular means of
transportation but do not require ambulance service, as defined in section 144E.001,
subdivision 3. Special transportation service includes but is not limited to service provided
by specially equipped buses, vans, taxis, and volunteers driving private automobiles.
Special transportation service also means those nonemergency medical transportation
services under section 256B.0625, subdivision 17, that are subject to the operating
standards for special transportation service under sections 174.29 to 174.30 and Minnesota
Rules, chapter 8840.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 4.

Minnesota Statutes 2014, section 174.30, subdivision 3, is amended to read:

Subd. 3.

Other standards; wheelchair securement; protected transport.

(a) A
special transportation service that transports individuals occupying wheelchairs is subject
to the provisions of sections 299A.11 to 299A.18 concerning wheelchair securement
devices. The commissioners of transportation and public safety shall cooperate in the
enforcement of this section and sections 299A.11 to 299A.18 so that a single inspection
is sufficient to ascertain compliance with sections 299A.11 to 299A.18 and with the
standards adopted under this section. Representatives of the Department of Transportation
may inspect wheelchair securement devices in vehicles operated by special transportation
service providers to determine compliance with sections 299A.11 to 299A.18 and to issue
certificates under section 299A.14, subdivision 4.

(b) In place of a certificate issued under section 299A.14, the commissioner may
issue a decal under subdivision 4 for a vehicle equipped with a wheelchair securement
device if the device complies with sections 299A.11 to 299A.18 and the decal displays the
information in section 299A.14, subdivision 4.

(c) For vehicles designated as protected transport under section 256B.0625,
subdivision 17, paragraph (h), the commissioner of transportation, during the
commissioner's inspection, shall check to ensure the safety provisions contained in that
paragraph are in working order.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 5.

Minnesota Statutes 2014, section 174.30, subdivision 4, is amended to read:

Subd. 4.

Vehicle and equipment inspection; rules; decal; complaint contact
information; restrictions on name of service.

(a) The commissioner shall inspect or
provide for the inspection of vehicles at least annually. In addition to scheduled annual
inspections and reinspections scheduled for the purpose of verifying that deficiencies have
been corrected, unannounced inspections of any vehicle may be conducted.

(b) On determining that a vehicle or vehicle equipment is in a condition that is likely
to cause an accident or breakdown, the commissioner shall require the vehicle to be taken
out of service immediately. The commissioner shall require that vehicles and equipment
not meeting standards be repaired and brought into conformance with the standards
and shall require written evidence of compliance from the operator before allowing the
operator to return the vehicle to service.

(c) The commissioner shall provide in the rules procedures for inspecting vehicles,
removing unsafe vehicles from service, determining and requiring compliance, and
reviewing driver qualifications.

(d) The commissioner shall design a distinctive decal to be issued to special
transportation service providers with a current certificate of compliance under this section.
A decal is valid for one year from the last day of the month in which it is issued. A person
who is subject to the operating standards adopted under this section may not provide
special transportation service in a vehicle that does not conspicuously display a decal
issued by the commissioner.

(e) All special transportation service providers shall pay an annual fee of $45
to obtain a decal. Providers of ambulance service, as defined in section 144E.001,
subdivision 3, are exempt from the annual fee. Fees collected under this paragraph must
be deposited in the trunk highway fund, and are appropriated to the commissioner to pay
for costs related to administering the special transportation service program.

(f) Special transportation service providers shall prominently display in each vehicle
all contact information for the submission of complaints regarding the transportation
services provided to that individual. All vehicles providing service under section
473.386 shall display contact information for the Metropolitan Council. All other special
transportation service vehicles shall display contact information for the commissioner of
transportation.

(g) Nonemergency medical transportation providers must comply with Minnesota
Rules, part 8840.5450, except that a provider may use the phrase "nonemergency medical
transportation" in its name or in advertisements or information describing the service.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 6.

Minnesota Statutes 2014, section 174.30, is amended by adding a subdivision
to read:

Subd. 4b.

Variance from the standards.

A nonemergency medical transportation
provider who was not subject to the standards in this section prior to July 1, 2014, must
apply for a variance from the commissioner if the provider cannot meet the standards
within six months of the date of enactment of this subdivision. The commissioner may
grant or deny the variance application. Variances, if granted, shall not exceed 60 days
unless extended by the commissioner.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 7.

Minnesota Statutes 2014, section 174.30, is amended by adding a subdivision
to read:

Subd. 10.

Background studies.

(a) Providers of special transportation service
regulated under this section must initiate background studies in accordance with chapter
245C on the following individuals:

(1) each person with a direct or indirect ownership interest of five percent or higher
in the transportation service provider;

(2) each controlling individual as defined under section 245A.02;

(3) managerial officials as defined in section 245A.02;

(4) each driver employed by the transportation service provider;

(5) each individual employed by the transportation service provider to assist a
passenger during transport; and

(6) all employees of the transportation service agency who provide administrative
support, including those who:

(i) may have face-to-face contact with or access to passengers, their personal
property, or their private data;

(ii) perform any scheduling or dispatching tasks; or

(iii) perform any billing activities.

(b) The transportation service provider must initiate the background studies required
under paragraph (a) using the online NETStudy system operated by the commissioner
of human services.

(c) The transportation service provider shall not permit any individual to provide
any service listed in paragraph (a) until the transportation service provider has received
notification from the commissioner of human services indicating that the individual:

(1) is not disqualified under chapter 245C; or

(2) is disqualified, but has received a set-aside of that disqualification according to
section 245C.23 related to that transportation service provider.

(d) When a local or contracted agency is authorizing a ride under section 256B.0625,
subdivision 17, by a volunteer driver, and the agency authorizing the ride has reason
to believe the volunteer driver has a history that would disqualify the individual or
that may pose a risk to the health or safety of passengers, the agency may initiate a
background study to be completed according to chapter 245C using the commissioner
of human services' online NETStudy system, or through contacting the Department of
Human Services background study division for assistance. The agency that initiates the
background study under this paragraph shall be responsible for providing the volunteer
driver with the privacy notice required under section 245C.05, subdivision 2c, and
payment for the background study required under section 245C.10, subdivision 11, before
the background study is completed.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 8.

Minnesota Statutes 2014, section 245C.03, is amended by adding a subdivision
to read:

Subd. 10.

Providers of special transportation service.

The commissioner shall
conduct background studies on any individual required under section 174.30 to have a
background study completed under this chapter.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 9.

Minnesota Statutes 2014, section 245C.10, is amended by adding a subdivision
to read:

Subd. 11.

Providers of special transportation service.

The commissioner shall
recover the cost of background studies initiated by providers of special transportation
service under section 174.30 through a fee of no more than $20 per study. The fees
collected under this subdivision are appropriated to the commissioner for the purpose of
conducting background studies.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 10.

Minnesota Statutes 2014, section 256.015, subdivision 7, is amended to read:

Subd. 7.

Cooperation with information requests required.

(a) Upon the request
of the commissioner of human services:

(1) any state agency or third-party payer shall cooperate by furnishing information to
help establish a third-party liability, as required by the federal Deficit Reduction Act of
2005, Public Law 109-171;

(2) any employer or third-party payer shall cooperate by furnishing a data file
containing information about group health insurance plan or medical benefit plan coverage
of its employees or insureds within 60 days of the request. The information in the data file
must include at least the following: full name, date of birth, Social Security number if
collected and stored in a system routinely used for producing data files by the employer
or third-party payer, employer name, policy identification number, group identification
number, and plan or coverage type.

(b) For purposes of section 176.191, subdivision 4, the commissioner of labor and
industry may allow the commissioner of human services and county agencies direct access
and data matching on information relating to workers' compensation claims in order to
determine whether the claimant has reported the fact of a pending claim and the amount
paid to or on behalf of the claimant to the commissioner of human services.

(c) For the purpose of compliance with section 169.09, subdivision 13, and
federal requirements under Code of Federal Regulations, title 42, section 433.138
(d)(4), the commissioner of public safety shall provide accident data as requested by
the commissioner of human services. The disclosure shall not violate section 169.09,
subdivision 13, paragraph (d).

(d) The commissioner of human services and county agencies shall limit its use of
information gained from agencies, third-party payers, and employers to purposes directly
connected with the administration of its public assistance and child support programs. The
provision of information by agencies, third-party payers, and employers to the department
under this subdivision is not a violation of any right of confidentiality or data privacy.

Sec. 11.

Minnesota Statutes 2014, section 256.969, subdivision 1, is amended to read:

Subdivision 1.

Hospital cost index.

(a) The hospital cost index shall be the change
in the Consumer Price Index-All Items (United States city average) (CPI-U) forecasted
by Data Resources, Inc. The commissioner shall use the indices as forecasted in the
third quarter of the calendar year prior to the rate year. The hospital cost index may be
used to adjust the base year operating payment rate through the rate year on an annually
compounded basis.

(b) For fiscal years beginning on or after July 1, 1993, the commissioner of human
services shall not provide automatic annual inflation adjustments for hospital payment
rates under medical assistance. The commissioner of management and budget shall
include as a budget change request in each biennial detailed expenditure budget submitted
to the legislature under section 16A.11 annual adjustments in hospital payment rates under
medical assistance based upon the hospital cost index.

Sec. 12.

Minnesota Statutes 2014, section 256.969, subdivision 2b, is amended to read:

Subd. 2b.

Hospital payment rates.

(a) For discharges occurring on or after
November 1, 2014, hospital inpatient services for hospitals located in Minnesota shall be
paid according to the following:

(1) critical access hospitals as defined by Medicare shall be paid using a cost-based
methodology;

(2) long-term hospitals as defined by Medicare shall be paid on a per diem
methodology under subdivision 25;

(3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation
distinct parts as defined by Medicare shall be paid according to the methodology under
subdivision 12; and

(4) all other hospitals shall be paid on a diagnosis-related group (DRG) methodology.

(b) For the period beginning January 1, 2011, through October 31, 2014, rates shall
not be rebased, except that a Minnesota long-term hospital shall be rebased effective
January 1, 2011, based on its most recent Medicare cost report ending on or before
September 1, 2008, with the provisions under subdivisions 9 and 23, based on the rates
in effect on December 31, 2010. For rate setting periods after November 1, 2014, in
which the base years are updated, a Minnesota long-term hospital's base year shall remain
within the same period as other hospitals.

(c) Effective for discharges occurring on and after November 1, 2014, payment rates
for hospital inpatient services provided by hospitals located in Minnesota or the local trade
area, except for the hospitals paid under the methodologies described in paragraph (a),
clauses (2) and (3), shall be rebased, incorporating cost and payment methodologies in a
manner similar to Medicare. The base year for the rates effective November 1, 2014, shall
be calendar year 2012. The rebasing under this paragraph shall be budget neutral, ensuring
that the total aggregate payments under the rebased system are equal to the total aggregate
payments that were made for the same number and types of services in the base year.
Separate budget neutrality calculations shall be determined for payments made to critical
access hospitals and payments made to hospitals paid under the DRG system. Only the rate
increases or decreases under subdivision 3a or 3c that applied to the hospitals being rebased
during the entire base period shall be incorporated into the budget neutrality calculation.

(d) For discharges occurring on or after November 1, 2014, through June 30, 2016
the next rebasing that occurs, the rebased rates under paragraph (c) that apply to hospitals
under paragraph (a), clause (4), shall include adjustments to the projected rates that result
in no greater than a five percent increase or decrease from the base year payments for any
hospital. Any adjustments to the rates made by the commissioner under this paragraph and
paragraph (e) shall maintain budget neutrality as described in paragraph (c).

(e) For discharges occurring on or after November 1, 2014, through June 30, 2016,
the next rebasing that occurs the commissioner may make additional adjustments to the
rebased rates, and when evaluating whether additional adjustments should be made, the
commissioner shall consider the impact of the rates on the following:

(1) pediatric services;

(2) behavioral health services;

(3) trauma services as defined by the National Uniform Billing Committee;

(4) transplant services;

(5) obstetric services, newborn services, and behavioral health services provided
by hospitals outside the seven-county metropolitan area;

(6) outlier admissions;

(7) low-volume providers; and

(8) services provided by small rural hospitals that are not critical access hospitals.

(f) Hospital payment rates established under paragraph (c) must incorporate the
following:

(1) for hospitals paid under the DRG methodology, the base year payment rate per
admission is standardized by the applicable Medicare wage index and adjusted by the
hospital's disproportionate population adjustment;

(2) for critical access hospitals, interim per diem payment rates shall be based on the
ratio of cost and charges reported on the base year Medicare cost report or reports and
applied to medical assistance utilization data. Final settlement payments for a state fiscal
year must be determined based on a review of the medical assistance cost report required
under subdivision 4b for the applicable state fiscal year;

(3) the cost and charge data used to establish hospital payment rates must only
reflect inpatient services covered by medical assistance; and

(4) in determining hospital payment rates for discharges occurring on or after the
rate year beginning January 1, 2011, through December 31, 2012, the hospital payment
rate per discharge shall be based on the cost-finding methods and allowable costs of the
Medicare program in effect during the base year or years.

(g) The commissioner shall validate the rates effective November 1, 2014, by
applying the rates established under paragraph (c), and any adjustments made to the rates
under paragraph (d) or (e), to hospital claims paid in calendar year 2013 to determine
whether the total aggregate payments for the same number and types of services under the
rebased rates are equal to the total aggregate payments made during calendar year 2013.

(h) Effective for discharges occurring on or after July 1, 2017, and every two
years thereafter, payment rates under this section shall be rebased to reflect only those
changes in hospital costs between the existing base year and the next base year. The
commissioner shall establish the base year for each rebasing period considering the most
recent year for which filed Medicare cost reports are available. The estimated change in
the average payment per hospital discharge resulting from a scheduled rebasing must be
calculated and made available to the legislature by January 15 of each year in which
rebasing is scheduled to occur, and must include by hospital the differential in payment
rates compared to the individual hospital's costs.

(i) Effective for discharges occurring on or after July 1, 2015, payment rates for
critical access hospitals located in Minnesota or the local trade area shall be determined
using a new cost-based methodology. The commissioner shall establish within the
methodology tiers of payment designed to promote efficiency and cost-effectiveness.
Annual payments to hospitals under this paragraph shall equal the total cost for critical
access hospitals as reflected in base year cost reports, and until the next rebasing that
occurs, shall result in no greater than a five percent decrease from the base year payments
for any hospital. The new cost-based rate shall be the final rate and shall not be settled to
actual incurred costs. The factors used to develop the new methodology may include but
are not limited to:

(1) the ratio between the hospital's costs for treating medical assistance patients and
the hospital's charges to the medical assistance program;

(2) the ratio between the hospital's costs for treating medical assistance patients and
the hospital's payments received from the medical assistance program for the care of
medical assistance patients;

(3) the ratio between the hospital's charges to the medical assistance program and
the hospital's payments received from the medical assistance program for the care of
medical assistance patients;

(4) the statewide average increases in the ratios identified in clauses (1), (2), and (3);

(5) the proportion of that hospital's costs that are administrative and trends in
administrative costs; and

(6) geographic location.

Sec. 13.

Minnesota Statutes 2014, section 256.969, subdivision 3a, is amended to read:

Subd. 3a.

Payments.

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

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

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

(d) In addition to the reduction in paragraphs (b) and (c), the total payment for
fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for
inpatient services before third-party liability and spenddown, is reduced 6.0 percent from
the current statutory rates. Mental health services within diagnosis related groups 424
to 432 or corresponding APR-DRGs, and facilities defined under subdivision 16 are
excluded from this paragraph. Payments made to managed care plans shall be reduced for
services provided on or after January 1, 2006, to reflect this reduction.

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

(f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment
for fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2011,
made to hospitals for inpatient services before third-party liability and spenddown, is
reduced 1.9 percent from the current statutory rates. Mental health services with diagnosis
related groups 424 to 432 or corresponding APR-DRGs, and facilities defined under
subdivision 16 are excluded from this paragraph. Payments made to managed care plans
shall be reduced for services provided on or after July 1, 2009, through June 30, 2011,
to reflect this reduction.

(g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment
for fee-for-service admissions occurring on or after July 1, 2011, made to hospitals for
inpatient services before third-party liability and spenddown, is reduced 1.79 percent from
the current statutory rates. Mental health services with diagnosis related groups 424 to 432
or corresponding APR-DRGs, and facilities defined under subdivision 16 are excluded
from this paragraph. Payments made to managed care plans shall be reduced for services
provided on or after July 1, 2011, to reflect this reduction.

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

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

(j) Effective for discharges on and after November 1, 2014, from hospitals paid
under subdivision 2b, paragraph (a), clauses (1) and (4), the rate adjustments in this
subdivision must be incorporated into the rebased rates established under subdivision 2b,
paragraph (c), and must not be applied to each claim.

(k) Effective for discharges on and after July 1, 2015, from hospitals paid under
subdivision 2b, paragraph (a), clauses (2) and (3), the rate adjustments in this subdivision
must be incorporated into the rates and must not be applied to each claim.

Sec. 14.

Minnesota Statutes 2014, section 256.969, subdivision 3c, is amended to read:

Subd. 3c.

Rateable reduction and readmissions reduction.

(a) The total payment
for fee for service admissions occurring on or after September 1, 2011, to October 31,
2014, made to hospitals for inpatient services before third-party liability and spenddown,
is reduced ten percent from the current statutory rates. Facilities defined under subdivision
16, long-term hospitals as determined under the Medicare program, children's hospitals
whose inpatients are predominantly under 18 years of age, and payments under managed
care are excluded from this paragraph.

(b) Effective for admissions occurring during calendar year 2010 and each year
after, the commissioner shall calculate a readmission rate for admissions to all hospitals
occurring within 30 days of a previous discharge using data from the Reducing Avoidable
Readmissions Effectively (RARE) campaign. The commissioner may adjust the
readmission rate taking into account factors such as the medical relationship, complicating
conditions, and sequencing of treatment between the initial admission and subsequent
readmissions.

(c) Effective for payments to all hospitals on or after July 1, 2013, through October
31, 2014, the reduction in paragraph (a) is reduced one percentage point for every
percentage point reduction in the overall readmissions rate between the two previous
calendar years to a maximum of five percent.

(d) The exclusion from the rate reduction in paragraph (a) shall apply to a hospital
located in Hennepin County with a licensed capacity of 1,700 beds as of September 1,
2011, for admissions of children under 18 years of age occurring on or after September 1,
2011, through August 31, 2013, but shall not apply to payments for admissions occurring
on or after September 1, 2013, through October 31, 2014.

(e) Effective for discharges on or after November 1, 2014, from hospitals paid under
subdivision 2b, paragraph (a), clauses (1) and (4), the rate adjustments in this subdivision
must be incorporated into the rebased rates established under subdivision 2b, paragraph
(c), and must not be applied to each claim.

(f) Effective for discharges on and after July 1, 2015, from hospitals paid under
subdivision 2b, paragraph (a), clauses (2) and (3), the rate adjustments in this subdivision
must be incorporated into the rates and must not be applied to each claim.

Sec. 15.

Minnesota Statutes 2014, section 256.969, subdivision 9, is amended to read:

Subd. 9.

Disproportionate numbers of low-income patients served.

(a) For
admissions occurring on or after July 1, 1993, the medical assistance disproportionate
population adjustment shall comply with federal law and shall be paid to a hospital,
excluding regional treatment centers and facilities of the federal Indian Health Service,
with a medical assistance inpatient utilization rate in excess of the arithmetic mean. The
adjustment must be determined as follows:

(1) for a hospital with a medical assistance inpatient utilization rate above the
arithmetic mean for all hospitals excluding regional treatment centers and facilities of the
federal Indian Health Service but less than or equal to one standard deviation above the
mean, the adjustment must be determined by multiplying the total of the operating and
property payment rates by the difference between the hospital's actual medical assistance
inpatient utilization rate and the arithmetic mean for all hospitals excluding regional
treatment centers and facilities of the federal Indian Health Service; and

(2) for a hospital with a medical assistance inpatient utilization rate above one
standard deviation above the mean, the adjustment must be determined by multiplying
the adjustment that would be determined under clause (1) for that hospital by 1.1.
The commissioner may establish a separate disproportionate population payment rate
adjustment for critical access hospitals. The commissioner shall report annually on the
number of hospitals likely to receive the adjustment authorized by this paragraph. The
commissioner shall specifically report on the adjustments received by public hospitals and
public hospital corporations located in cities of the first class.

(b) Certified public expenditures made by Hennepin County Medical Center shall
be considered Medicaid disproportionate share hospital payments. Hennepin County
and Hennepin County Medical Center shall report by June 15, 2007, on payments made
beginning July 1, 2005, or another date specified by the commissioner, that may qualify
for reimbursement under federal law. Based on these reports, the commissioner shall
apply for federal matching funds.

(c) Upon federal approval of the related state plan amendment, paragraph (b) is
effective retroactively from July 1, 2005, or the earliest effective date approved by the
Centers for Medicare and Medicaid Services.

(d) Effective July 1, 2015, disproportionate share hospital (DSH) payments shall
be paid in accordance with a new methodology. Annual DSH payments made under
this paragraph shall equal the total amount of DSH payments made for 2012. The new
methodology shall take into account a variety of factors, including but not limited to:

(1) the medical assistance utilization rate of the hospitals that receive payments
under this subdivision;

(2) whether the hospital is located within Minnesota;

(3) the hospital's status as a safety net, critical access, children's, rehabilitation, or
long-term hospital;

(4) whether the hospital's administrative cost of compiling the necessary DSH
reports exceeds the anticipated value of any calculated DSH payment; and

(5) whether the hospital provides specific services designated by the commissioner
to be of particular importance to the medical assistance program.

(e) Any payments or portion of payments made to a hospital under this subdivision
that are subsequently returned to the commissioner because the payments are found to
exceed the hospital-specific DSH limit for that hospital shall be redistributed, proportionate
to the number of fee-for-service discharges, to other DSH-eligible nonchildren's hospitals
that have a medical assistance utilization rate that is at least one standard deviation above
the mean.

Sec. 16.

Minnesota Statutes 2014, section 256B.06, is amended by adding a
subdivision to read:

Subd. 6.

Legal referral and assistance grants.

(a) The commissioner shall award
grants to one or more nonprofit programs that provide legal services based on indigency to
provide legal services to individuals with emergency medical conditions or chronic health
conditions who are not currently eligible for medical assistance or other public health
care programs based on their legal status, but who may meet eligibility requirements
with legal assistance.

(b) The grantees, in collaboration with hospitals and safety net providers, shall
provide referral assistance to connect individuals identified in paragraph (a) with
alternative resources and services to assist in meeting their health care needs.

Sec. 17.

Minnesota Statutes 2014, section 256B.0625, subdivision 9, is amended to read:

Subd. 9.

Dental services.

(a) Medical assistance covers dental services.

(b) Medical assistance dental coverage for nonpregnant adults is limited to the
following services:

(1) comprehensive exams, limited to once every five years;

(2) periodic exams, limited to one per year;

(3) limited exams;

(4) bitewing x-rays, limited to one per year;

(5) periapical x-rays;

(6) panoramic x-rays or full-mouth series of x-rays , limited to one once every five
years except (1) when medically necessary for the diagnosis and follow-up of oral and
maxillofacial pathology and trauma or (2) once every two years for patients who cannot
cooperate for intraoral film due to a developmental disability or medical condition that
does not allow for intraoral film placement;

(7) prophylaxis, limited to one per year;

(8) application of fluoride varnish, limited to one per year;

(9) posterior fillings, all at the amalgam rate;

(10) anterior fillings;

(11) endodontics, limited to root canals on the anterior and premolars only;

(12) removable prostheses, each dental arch limited to one every six years;

(13) oral surgery, limited to extractions, biopsies, and incision and drainage of
abscesses;

(14) palliative treatment and sedative fillings for relief of pain; and

(15) full-mouth debridement, limited to one every five years; and

(16) nonsurgical treatment for periodontal disease, including scaling, root planing,
and routine periodontal maintenance procedures, limited to once per quadrant per year.

(c) In addition to the services specified in paragraph (b), medical assistance
covers the following services for adults, if provided in an outpatient hospital setting or
freestanding ambulatory surgical center as part of outpatient dental surgery:

(1) periodontics, limited to periodontal scaling and root planing once every two
years year;

(2) general anesthesia; and

(3) full-mouth survey once every five years

(3) a comprehensive oral examination and full-mouth series of x-rays.

(d) Medical assistance covers medically necessary dental services for children and
pregnant women. The following guidelines apply:

(1) posterior fillings are paid at the amalgam rate;

(2) application of sealants are covered once every five years per permanent molar for
children only;

(3) application of fluoride varnish is covered once every six months; and

(4) orthodontia is eligible for coverage for children only.

(e) In addition to the services specified in paragraphs (b) and (c), medical assistance
covers the following services for adults:

(1) house calls or extended care facility calls for on-site delivery of covered services;

(2) behavioral management when additional staff time is required to accommodate
behavioral challenges and sedation is not used;

(3) oral or IV sedation, if the covered dental service cannot be performed safely
without it or would otherwise require the service to be performed under general anesthesia
in a hospital or surgical center; and

(4) prophylaxis, in accordance with an appropriate individualized treatment plan, but
no more than four times per year.

(f) The commissioner shall not require prior authorization for the services included
in paragraph (e), clauses (1) to (3), and shall prohibit managed care and county-based
purchasing plans from requiring prior authorization for the services included in paragraph
(e), clauses (1) to (3), when provided under sections 256B.69, 256B.692, and 256L.12.

Sec. 18.

Minnesota Statutes 2014, section 256B.0625, is amended by adding a
subdivision to read:

Subd. 9b.

Dental services provided by faculty members and resident dentists
at a dental school.

(a) A dentist who is not enrolled as a medical assistance provider,
is a faculty or adjunct member at the University of Minnesota or a resident dentist
licensed under section 150A.06, subdivision 1b, and is providing dental services at a
dental clinic owned or operated by the University of Minnesota, may be enrolled as a
medical assistance provider if the provider completes and submits to the commissioner an
agreement form developed by the commissioner. The agreement must specify that the
faculty or adjunct member or resident dentist:

(1) will not receive payment for the services provided to medical assistance or
MinnesotaCare enrollees performed at the dental clinics owned or operated by the
University of Minnesota;

(2) will not be listed in the medical assistance or MinnesotaCare provider directory;
and

(3) is not required to serve medical assistance and MinnesotaCare enrollees when
providing nonvolunteer services in a private practice.

(b) A dentist or resident dentist enrolled under this subdivision as a fee-for-service
provider shall not otherwise be enrolled in or receive payments from medical assistance or
MinnesotaCare as a fee-for-service provider.

Sec. 19.

Minnesota Statutes 2014, section 256B.0625, is amended by adding a
subdivision to read:

Subd. 9c.

Prior authorization for dental services.

Effective for dental services
rendered on or after January 1, 2016, the following prior authorization requirements
shall apply for services provided under fee-for-service or through a managed care plan
or county-based purchasing plan:

(1) prior authorization for a dental service shall remain valid for at least 12 months;

(2) a new prior authorization for a dental service shall not be required if a prior
authorization for the service has already been provided within the previous 12 months
for the same enrollee, if the enrollee changes health plans within the 12-month period in
which the prior authorization is valid; and

(3) a managed care plan or county-based purchasing plan shall not require prior
authorization before providing dental services to an enrollee that is more restrictive
than the prior authorization requirements established by the commissioner for the
fee-for-service system.

Sec. 20.

Minnesota Statutes 2014, section 256B.0625, is amended by adding a
subdivision to read:

Subd. 9d.

Administrative simplification for dental services.

By January 1,
2016, the commissioner shall designate a uniform application form to be used in the
credentialing of all dental providers serving persons enrolled in medical assistance and
MinnesotaCare. The uniform application shall be developed by the commissioner in
consultation with representatives of managed care plans, county-based purchasing plans,
dental benefit administrators, and dental providers, and must meet the National Committee
for Quality Assurance accreditation standards related to credentialing.

Sec. 21.

Minnesota Statutes 2014, section 256B.0625, subdivision 13h, is amended to
read:

Subd. 13h.

Medication therapy management services.

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

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

(2) formulating a medication treatment plan;

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

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

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

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

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

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

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

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

(1) have a valid license issued by the Board of Pharmacy of the state in which the
medication therapy management service is being performed;

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

(3) be practicing in an ambulatory care setting as part of a multidisciplinary team or
have developed a structured patient care process that is offered in a private or semiprivate
patient care area that is separate from the commercial business that also occurs in the
setting, or in home settings, including long-term care settings, group homes, and facilities
providing assisted living services, but excluding skilled nursing facilities; and

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

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

(d) If there are no pharmacists who meet the requirements of paragraph (b) practicing
within a reasonable geographic distance of the patient, a pharmacist who meets the
requirements may provide the services via two-way interactive video. Reimbursement
shall be at the same rates and under the same conditions that would otherwise apply to
the services provided. To qualify for reimbursement under this paragraph, the pharmacist
providing the services must meet the requirements of paragraph (b), and must be
located within an ambulatory care setting approved by the commissioner that meets the
requirements of paragraph (b), clause (3). The patient must also be located within an
ambulatory care setting approved by the commissioner that meets the requirements of
paragraph (b), clause (3). Services provided under this paragraph may not be transmitted
into the patient's residence.

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

(e) Medication therapy management services may be delivered into a patient's
residence via secure interactive video if the medication therapy management services
are performed electronically during a covered home care visit by an enrolled provider.
Reimbursement shall be at the same rates and under the same conditions that would
otherwise apply to the services provided. To qualify for reimbursement under this
paragraph, the pharmacist providing the services must meet the requirements of paragraph
(b) and must be located within an ambulatory care setting that meets the requirements of
paragraph (b), clause (3).

Sec. 22.

Minnesota Statutes 2014, section 256B.0625, subdivision 14, is amended to
read:

Subd. 14.

Diagnostic, screening, and preventive services.

(a) Medical assistance
covers diagnostic, screening, and preventive services.

(b) "Preventive services" include services related to pregnancy, including:

(1) services for those conditions which may complicate a pregnancy and which may
be available to a pregnant woman determined to be at risk of poor pregnancy outcome;

(2) prenatal HIV risk assessment, education, counseling, and testing; and

(3) alcohol abuse assessment, education, and counseling on the effects of alcohol
usage while pregnant. Preventive services available to a woman at risk of poor pregnancy
outcome may differ in an amount, duration, or scope from those available to other
individuals eligible for medical assistance.

(c) "Screening services" include, but are not limited to,:

(1) blood lead tests.; and

(2) oral health screenings, using the risk factors established by the American
Academies of Pediatrics and Pediatric Dentistry, conducted by a licensed dental provider
in collaborative practice under section 150A.10, subdivision 1a, 150A.105, or 150A.106,
to determine an enrollee's need to be seen by a dentist for diagnosis and assessment
to identify possible signs of oral or systemic disease, malformation, or injury and the
potential need for referral for diagnosis and treatment. For purposes of this paragraph, oral
health screenings are limited to once per year, and the provider performing the screening
must have an agreement in effect that refers those needing necessary follow-up care to
a licensed dentist where the necessary care is provided.

(d) The commissioner shall encourage, at the time of the child and teen checkup or
at an episodic care visit, the primary care health care provider to perform primary caries
preventive services. Primary caries preventive services include, at a minimum:

(1) a general visual examination of the child's mouth without using probes or other
dental equipment or taking radiographs;

(2) a risk assessment using the factors established by the American Academies
of Pediatrics and Pediatric Dentistry; and

(3) the application of a fluoride varnish beginning at age one to those children
assessed by the provider as being high risk in accordance with best practices as defined by
the Department of Human Services. The provider must obtain parental or legal guardian
consent before a fluoride varnish is applied to a minor child's teeth.

At each checkup, if primary caries preventive services are provided, the provider must
provide to the child's parent or legal guardian: information on caries etiology and
prevention; and information on the importance of finding a dental home for their child
by the age of one. The provider must also advise the parent or legal guardian to contact
the child's managed care plan or the Department of Human Services in order to secure a
dental appointment with a dentist. The provider must indicate in the child's medical record
that the parent or legal guardian was provided with this information and document any
primary caries prevention services provided to the child.

Sec. 23.

Minnesota Statutes 2014, section 256B.0625, subdivision 17, is amended to
read:

Subd. 17.

Transportation costs.

(a) "Nonemergency medical transportation
service" means motor vehicle transportation provided by a public or private person
that serves Minnesota health care program beneficiaries who do not require emergency
ambulance service, as defined in section 144E.001, subdivision 3, to obtain covered
medical services. Nonemergency medical transportation service includes, but is not
limited to, special transportation service, defined in section 174.29, subdivision 1.

(b) Medical assistance covers medical transportation costs incurred solely for
obtaining emergency medical care or transportation costs incurred by eligible persons in
obtaining emergency or nonemergency medical care when paid directly to an ambulance
company, common carrier, or other recognized providers of transportation services.
Medical transportation must be provided by:

(1) nonemergency medical transportation providers who meet the requirements
of this subdivision;

(2) ambulances, as defined in section 144E.001, subdivision 2;

(3) taxicabs and;

(4) public transit, as defined in section 174.22, subdivision 7; or

(4) (5) not-for-hire vehicles, including volunteer drivers.

(c) Medical assistance covers nonemergency medical transportation provided by
nonemergency medical transportation providers enrolled in the Minnesota health care
programs. All nonemergency medical transportation providers must comply with the
operating standards for special transportation service as defined in sections 174.29 to
174.30 and Minnesota Rules, chapter 8840, and in consultation with the Minnesota
Department of Transportation. All nonemergency medical transportation providers shall
bill for nonemergency medical transportation services in accordance with Minnesota
health care programs criteria. Publicly operated transit systems, volunteers, and
not-for-hire vehicles are exempt from the requirements outlined in this paragraph.

(d) The administrative agency of nonemergency medical transportation must:

(1) adhere to the policies defined by the commissioner in consultation with the
Nonemergency Medical Transportation Advisory Committee;

(2) pay nonemergency medical transportation providers for services provided to
Minnesota health care programs beneficiaries to obtain covered medical services;

(3) provide data monthly to the commissioner on appeals, complaints, no-shows,
canceled trips, and number of trips by mode; and

(4) by July 1, 2016, in accordance with subdivision 18e, utilize a Web-based single
administrative structure assessment tool that meets the technical requirements established
by the commissioner, reconciles trip information with claims being submitted by
providers, and ensures prompt payment for nonemergency medical transportation services.

(e) Until the commissioner implements the single administrative structure and
delivery system under subdivision 18e, clients shall obtain their level-of-service certificate
from the commissioner or an entity approved by the commissioner that does not dispatch
rides for clients using modes of transportation under paragraph (h), clauses (4), (5), (6),
and (7).

(f) The commissioner may use an order by the recipient's attending physician or a
medical or mental health professional to certify that the recipient requires nonemergency
medical transportation services. Nonemergency medical transportation providers shall
perform driver-assisted services for eligible individuals, when appropriate. Driver-assisted
service includes passenger pickup at and return to the individual's residence or place of
business, assistance with admittance of the individual to the medical facility, and assistance
in passenger securement or in securing of wheelchairs or stretchers in the vehicle.
Nonemergency medical transportation providers must have trip logs, which include pickup
and drop-off times, signed by the medical provider or client attesting mileage traveled to
obtain covered medical services, whichever is deemed most appropriate. Nonemergency
medical transportation providers may not bill for separate base rates for the continuation
of a trip beyond the original destination. Nonemergency medical transportation providers
must take clients to the health care provider, using the most direct route, and must not
exceed 30 miles for a trip to a primary care provider or 60 miles for a trip to a specialty
care provider, unless the client receives authorization from the local agency. The minimum
medical assistance reimbursement rates for special transportation services are:

(1)(i) $17 for the base rate and $1.35 per mile for special transportation services to
eligible persons who need a wheelchair-accessible van;

(ii) $11.50 for the base rate and $1.30 per mile for special transportation services to
eligible persons who do not need a wheelchair-accessible van; and

(iii) $60 for the base rate and $2.40 per mile, and an attendant rate of $9 per trip,
for special transportation services to eligible persons who need a stretcher-accessible
vehicle; and

(2) Nonemergency medical transportation providers must take clients to the health
care provider using the most direct route, and must not exceed 30 miles for a trip to a
primary care provider or 60 miles for a trip to a specialty care provider, unless the client
receives authorization from the local agency.

Nonemergency medical transportation providers may not bill for separate base rates
for the continuation of a trip beyond the original destination. Nonemergency medical
transportation providers must maintain trip logs, which include pickup and drop-off times,
signed by the medical provider or client, whichever is deemed most appropriate, attesting
to mileage traveled to obtain covered medical services. Clients requesting client mileage
reimbursement must sign the trip log attesting mileage traveled to obtain covered medical
services.

(g) The covered modes of nonemergency medical transportation include
transportation provided directly by clients or family members of clients with their own
transportation, volunteers using their own vehicles, taxicabs, and public transit, or
provided to a client who needs a stretcher-accessible vehicle, a lift/ramp equipped vehicle,
or a vehicle that is not stretcher-accessible or lift/ramp equipped designed to transport ten
or fewer persons. Upon implementation of a new rate structure, a new covered mode of
nonemergency medical transportation shall include transportation provided to a client who
needs a protected vehicle that is not an ambulance or police car and has safety locks, a
video recorder, and a transparent thermoplastic partition between the passenger and the
vehicle driver.

(h) (g) The administrative agency shall use the level of service process established
by the commissioner in consultation with the Nonemergency Medical Transportation
Advisory Committee to determine the client's most appropriate mode of transportation.
If public transit or a certified transportation provider is not available to provide the
appropriate service mode for the client, the client may receive a onetime service upgrade.

(h) The new covered modes of transportation, which may not be implemented
without a new rate structure, are:

(1) client reimbursement, which includes client mileage reimbursement provided to
clients who have their own transportation, or to family or an acquaintance who provides
transportation to the client;

(2) volunteer transport, which includes transportation by volunteers using their
own vehicle;

(3) unassisted transport, which includes transportation provided to a client by a
taxicab or public transit. If a taxicab or publicly operated public transit system is not
available, the client can receive transportation from another nonemergency medical
transportation provider;

(4) assisted transport, which includes transport provided to clients who require
assistance by a nonemergency medical transportation provider;

(5) lift-equipped/ramp transport, which includes transport provided to a client who
is dependent on a device and requires a nonemergency medical transportation provider
with a vehicle containing a lift or ramp;

(6) protected transport, which includes transport provided to a client who has
received a prescreening that has deemed other forms of transportation inappropriate and
who requires a provider: (i) with a protected vehicle that is not an ambulance or police car
and has safety locks, a video recorder, and a transparent thermoplastic partition between
the passenger and the vehicle driver; and (ii) who is certified as a protected transport
provider; and

(7) stretcher transport, which includes transport for a client in a prone or supine
position and requires a nonemergency medical transportation provider with a vehicle that
can transport a client in a prone or supine position.

(i) In accordance with subdivision 18e, by July 1, 2016, The local agency shall be
the single administrative agency and shall administer and reimburse for modes defined in
paragraph (h) according to a new rate structure, once this is adopted paragraphs (l) and
(m) when the commissioner has developed, made available, and funded the Web-based
single administrative structure, assessment tool, and level of need assessment under
subdivision 18e. The local agency's financial obligation is limited to funds provided by
the state or federal government.

(j) The commissioner shall:

(1) in consultation with the Nonemergency Medical Transportation Advisory
Committee, verify that the mode and use of nonemergency medical transportation is
appropriate;

(2) verify that the client is going to an approved medical appointment; and

(3) investigate all complaints and appeals.

(k) The administrative agency shall pay for the services provided in this subdivision
and seek reimbursement from the commissioner, if appropriate. As vendors of medical
care, local agencies are subject to the provisions in section 256B.041, the sanctions and
monetary recovery actions in section 256B.064, and Minnesota Rules, parts 9505.2160
to 9505.2245.

(l) Payments for nonemergency medical transportation must be paid based on
the client's assessed mode under paragraph (g), not the type of vehicle used to provide
the service. The medical assistance reimbursement rates for nonemergency medical
transportation services that are payable by or on behalf of the commissioner for
nonemergency medical transportation services are:

(1) $0.22 per mile for client reimbursement;

(2) up to 100 percent of the Internal Revenue Service business deduction rate for
volunteer transport;

(3) equivalent to the standard fare for unassisted transport when provided by public
transit, and $11 for the base rate and $1.30 per mile when provided by a nonemergency
medical transportation provider;

(4) $13 for the base rate and $1.30 per mile for assisted transport;

(5) $18 for the base rate and $1.55 per mile for lift-equipped/ramp transport;

(6) $75 for the base rate and $2.40 per mile for protected transport; and

(7) $60 for the base rate and $2.40 per mile for stretcher transport, and $9 per trip
for an additional attendant if deemed medically necessary.

The base rates for special transportation services in areas defined under RUCA
to be super rural shall be equal to the reimbursement rate established in paragraph (f),
clause (1), plus 11.3 percent, and for special (m) The base rate for nonemergency medical
transportation services in areas defined under RUCA to be super rural is equal to 111.3
percent of the respective base rate in paragraph (l), clauses (1) to (7). The mileage rate
for nonemergency medical transportation services in areas defined under RUCA to be
rural or super rural areas is:

(1) for a trip equal to 17 miles or less, mileage reimbursement shall be equal to 125
percent of the respective mileage rate in paragraph (f) (l), clause clauses (1) to (7); and

(2) for a trip between 18 and 50 miles, mileage reimbursement shall be equal to
112.5 percent of the respective mileage rate in paragraph (f) (l), clause clauses (1) to (7).

(m) (n) For purposes of reimbursement rates for special nonemergency medical
transportation services under paragraph (c) paragraphs (l) and (m), the zip code of the
recipient's place of residence shall determine whether the urban, rural, or super rural
reimbursement rate applies.

(n) (o) For purposes of this subdivision, "rural urban commuting area" or "RUCA"
means a census-tract based classification system under which a geographical area is
determined to be urban, rural, or super rural.

(o) Effective for services provided on or after September 1, 2011, nonemergency
transportation rates, including special transportation, taxi, and other commercial carriers,
are reduced 4.5 percent. Payments made to managed care plans and county-based
purchasing plans must be reduced for services provided on or after January 1, 2012,
to reflect this reduction.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 24.

Minnesota Statutes 2014, section 256B.0625, subdivision 17a, is amended to
read:

Subd. 17a.

Payment for ambulance services.

(a) Medical assistance covers
ambulance services. Providers shall bill ambulance services according to Medicare
criteria. Nonemergency ambulance services shall not be paid as emergencies. Effective
for services rendered on or after July 1, 2001, medical assistance payments for ambulance
services shall be paid at the Medicare reimbursement rate or at the medical assistance
payment rate in effect on July 1, 2000, whichever is greater.

(b) Effective for services provided on or after September 1, 2011, ambulance
services payment rates are reduced 4.5 percent. Payments made to managed care plans
and county-based purchasing plans must be reduced for services provided on or after
January 1, 2012, to reflect this reduction.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 25.

Minnesota Statutes 2014, section 256B.0625, subdivision 18a, is amended to
read:

Subd. 18a.

Access to medical services.

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

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

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

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

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 26.

Minnesota Statutes 2014, section 256B.0625, subdivision 18e, is amended to
read:

Subd. 18e.

Single administrative structure and delivery system.

The
commissioner, in coordination with the commissioner of transportation, shall implement
a single administrative structure and delivery system for nonemergency medical
transportation, beginning the latter of the date the single administrative assessment tool
required in this subdivision is available for use, as determined by the commissioner or by
July 1, 2016.

In coordination with the Department of Transportation, the commissioner shall
develop and authorize a Web-based single administrative structure and assessment
tool, which must operate 24 hours a day, seven days a week, to facilitate the enrollee
assessment process for nonemergency medical transportation services. The Web-based
tool shall facilitate the transportation eligibility determination process initiated by clients
and client advocates; shall include an accessible automated intake and assessment
process and real-time identification of level of service eligibility; and shall authorize an
appropriate and auditable mode of transportation authorization. The tool shall provide a
single framework for reconciling trip information with claiming and collecting complaints
regarding inappropriate level of need determinations, inappropriate transportation modes
utilized, and interference with accessing nonemergency medical transportation. The
Web-based single administrative structure shall operate on a trial basis for one year from
implementation and, if approved by the commissioner, shall be permanent thereafter.
The commissioner shall seek input from the Nonemergency Medical Transportation
Advisory Committee to ensure the software is effective and user-friendly and make
recommendations regarding funding of the single administrative system.

EFFECTIVE DATE.

This section is effective July 1, 2015.

Sec. 27.

Minnesota Statutes 2014, section 256B.0625, subdivision 31, is amended to
read:

Subd. 31.

Medical supplies and equipment.

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

(b) Vendors of durable medical equipment, prosthetics, orthotics, or medical supplies
must enroll as a Medicare provider.

(c) When necessary to ensure access to durable medical equipment, prosthetics,
orthotics, or medical supplies, the commissioner may exempt a vendor from the Medicare
enrollment requirement if:

(1) the vendor supplies only one type of durable medical equipment, prosthetic,
orthotic, or medical supply;

(2) the vendor serves ten or fewer medical assistance recipients per year;

(3) the commissioner finds that other vendors are not available to provide same or
similar durable medical equipment, prosthetics, orthotics, or medical supplies; and

(4) the vendor complies with all screening requirements in this chapter and Code of
Federal Regulations, title 42, part 455. The commissioner may also exempt a vendor from
the Medicare enrollment requirement if the vendor is accredited by a Centers for Medicare
and Medicaid Services approved national accreditation organization as complying with
the Medicare program's supplier and quality standards and the vendor serves primarily
pediatric patients.

(d) Durable medical equipment means a device or equipment that:

(1) can withstand repeated use;

(2) is generally not useful in the absence of an illness, injury, or disability; and

(3) is provided to correct or accommodate a physiological disorder or physical
condition or is generally used primarily for a medical purpose.

(e) Electronic tablets may be considered durable medical equipment if the electronic
tablet will be used as an augmentative and alternative communication system as defined
under subdivision 31a, paragraph (a). To be covered by medical assistance, the device
must be locked in order to prevent use not related to communication.

Sec. 28.

Minnesota Statutes 2014, section 256B.0625, subdivision 57, is amended to
read:

Subd. 57.

Payment for Part B Medicare crossover claims.

(a) Effective for
services provided on or after January 1, 2012, medical assistance payment for an enrollee's
cost-sharing associated with Medicare Part B is limited to an amount up to the medical
assistance total allowed, when the medical assistance rate exceeds the amount paid by
Medicare.

(b) Excluded from this limitation are payments for mental health services and
payments for dialysis services provided to end-stage renal disease patients. The exclusion
for mental health services does not apply to payments for physician services provided by
psychiatrists and advanced practice nurses with a specialty in mental health.

(c) Excluded from this limitation are payments to federally qualified health centers
and rural health clinics.

EFFECTIVE DATE.

This section is effective January 1, 2016.

Sec. 29.

Minnesota Statutes 2014, section 256B.0625, subdivision 58, is amended to
read:

Subd. 58.

Early and periodic screening, diagnosis, and treatment services.

Medical assistance covers early and periodic screening, diagnosis, and treatment services
(EPSDT). The payment amount for a complete EPSDT screening shall not include charges
for vaccines health care services and products that are available at no cost to the provider
and shall not exceed the rate established per Minnesota Rules, part 9505.0445, item M,
effective October 1, 2010.

Sec. 30.

Minnesota Statutes 2014, section 256B.0631, is amended to read:

256B.0631 MEDICAL ASSISTANCE CO-PAYMENTS.

Subdivision 1.

Cost-sharing.

(a) Except as provided in subdivision 2, the medical
assistance benefit plan shall include the following cost-sharing for all recipients, effective
for services provided on or after September 1, 2011:

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

(2) $3.50 for nonemergency visits to a hospital-based emergency room, except that
this co-payment shall be increased to $20 upon federal approval;

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

(4) effective January 1, 2012, a family deductible equal to the maximum amount
allowed under Code of Federal Regulations, title 42, part 447.54 $2.75 per month per
family and adjusted annually by the percentage increase in the medical care component
of the CPI-U for the period of September to September of the preceding calendar year,
rounded to the next higher five-cent increment; and

(5) for individuals identified by the commissioner with income at or below 100
percent of the federal poverty guidelines, total monthly cost-sharing must not exceed five
percent of family income. For purposes of this paragraph, family income is the total
earned and unearned income of the individual and the individual's spouse, if the spouse is
enrolled in medical assistance and also subject to the five percent limit on cost-sharing.
This paragraph does not apply to premiums charged to individuals described under section
256B.057, subdivision 9.

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

(c) Notwithstanding paragraph (b), the commissioner, through the contracting
process under sections 256B.69 and 256B.692, may allow managed care plans and
county-based purchasing plans to waive the family deductible under paragraph (a),
clause (4). The value of the family deductible shall not be included in the capitation
payment to managed care plans and county-based purchasing plans. Managed care plans
and county-based purchasing plans shall certify annually to the commissioner the dollar
value of the family deductible.

(d) Notwithstanding paragraph (b), the commissioner may waive the collection of
the family deductible described under paragraph (a), clause (4), from individuals and
allow long-term care and waivered service providers to assume responsibility for payment.

(e) Notwithstanding paragraph (b), the commissioner, through the contracting
process under section 256B.0756 shall allow the pilot program in Hennepin County to
waive co-payments. The value of the co-payments shall not be included in the capitation
payment amount to the integrated health care delivery networks under the pilot program.

Subd. 2.

Exceptions.

Co-payments and deductibles shall be subject to the following
exceptions:

(1) children under the age of 21;

(2) pregnant women for services that relate to the pregnancy or any other medical
condition that may complicate the pregnancy;

(3) recipients expected to reside for at least 30 days in a hospital, nursing home, or
intermediate care facility for the developmentally disabled;

(4) recipients receiving hospice care;

(5) 100 percent federally funded services provided by an Indian health service;

(6) emergency services;

(7) family planning services;

(8) services that are paid by Medicare, resulting in the medical assistance program
paying for the coinsurance and deductible;

(9) co-payments that exceed one per day per provider for nonpreventive visits,
eyeglasses, and nonemergency visits to a hospital-based emergency room; and

(10) services, fee-for-service payments subject to volume purchase through
competitive bidding.;

(11) American Indians who meet the requirements in Code of Federal Regulations,
title 42, section 447.51;

(12) persons needing treatment for breast or cervical cancer as described under
section 256B.057, subdivision 10; and

(13) services that currently have a rating of A or B from the United States Preventive
Services Task Force (USPSTF), immunizations recommended by the Advisory Committee
on Immunization Practices of the Centers for Disease Control and Prevention, and
preventive services and screenings provided to women as described in Code of Federal
Regulations, title 45, section 147.130.

Subd. 3.

Collection.

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

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

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

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

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

EFFECTIVE DATE.

The amendment to subdivision 1, paragraph (a), clause (4), is
effective retroactively from January 1, 2014.

Sec. 31.

[256B.0638] OPIOID PRESCRIBING IMPROVEMENT PROGRAM.

Subdivision 1.

Program established.

The commissioner of human services, in
conjunction with the commissioner of health, shall coordinate and implement an opioid
prescribing improvement program to reduce opioid dependency and substance use by
Minnesotans due to the prescribing of opioid analgesics by health care providers.

Subd. 2.

Definitions.

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

(b) "Commissioner" means the commissioner of human services.

(c) "Commissioners" means the commissioner of human services and the
commissioner of health.

(d) "DEA" means the United States Drug Enforcement Administration.

(e) "Minnesota health care program" means a public health care program
administered by the commissioner of human services under chapters 256B and 256L, and
the Minnesota restricted recipient program.

(f) "Opioid disenrollment standards" means parameters of opioid prescribing
practices that fall outside community standard thresholds for prescribing to such a degree
that a provider must be disenrolled as a medical assistance provider.

(g) "Opioid prescriber" means a licensed health care provider who prescribes opioids
to medical assistance and MinnesotaCare enrollees under the fee-for-service system or
under a managed care or county-based purchasing plan.

(h) "Opioid quality improvement standard thresholds" means parameters of opioid
prescribing practices that fall outside community standards for prescribing to such a
degree that quality improvement is required.

(i) "Program" means the statewide opioid prescribing improvement program
established under this section.

(j) "Provider group" means a clinic, hospital, or primary or specialty practice group
that employs, contracts with, or is affiliated with an opioid prescriber. Provider group does
not include a professional association supported by dues-paying members.

(k) "Sentinel measures" means measures of opioid use that identify variations in
prescribing practices during the prescribing intervals.

Subd. 3.

Opioid prescribing work group.

(a) The commissioner of human
services, in consultation with the commissioner of health, shall appoint the following
voting members to an opioid prescribing work group:

(1) two consumer members who have been impacted by an opioid abuse disorder or
opioid dependence disorder, either personally or with family members;

(2) one member who is a licensed physician actively practicing in Minnesota and
registered as a practitioner with the DEA;

(3) one member who is a licensed pharmacist actively practicing in Minnesota and
registered as a practitioner with the DEA;

(4) one member who is a licensed nurse practitioner actively practicing in Minnesota
and registered as a practitioner with the DEA;

(5) one member who is a licensed dentist actively practicing in Minnesota and
registered as a practitioner with the DEA;

(6) two members who are nonphysician licensed health care professionals actively
engaged in the practice of their profession in Minnesota, and their practice includes
treating pain;

(7) one member who is a mental health professional who is licensed or registered
in a mental health profession, who is actively engaged in the practice of that profession
in Minnesota, and whose practice includes treating patients with chemical dependency
or substance abuse;

(8) one member who is a medical examiner for a Minnesota county;

(9) one member of the Health Services Policy Committee established under section
256B.0625, subdivisions 3c to 3e;

(10) one member who is a medical director of a health plan company doing business
in Minnesota;

(11) one member who is a pharmacy director of a health plan company doing
business in Minnesota; and

(12) one member representing Minnesota law enforcement.

(b) In addition, the work group shall include the following nonvoting members:

(1) the medical director for the medical assistance program;

(2) a member representing the Department of Human Services pharmacy unit; and

(3) the medical director for the Department of Labor and Industry.

(c) An honorarium of $200 per meeting and reimbursement for mileage and parking
shall be paid to each voting member in attendance.

Subd. 4.

Program components.

(a) The working group shall recommend to the
commissioners the components of the statewide opioid prescribing improvement program,
including, but not limited to, the following:

(1) developing criteria for opioid prescribing protocols, including:

(i) prescribing for the interval of up to four days immediately after an acute painful
event;

(ii) prescribing for the interval of up to 45 days after an acute painful event; and

(iii) prescribing for chronic pain, which for purposes of this program means pain
lasting longer than 45 days after an acute painful event;

(2) developing sentinel measures;

(3) developing educational resources for opioid prescribers about communicating
with patients about pain management and the use of opioids to treat pain;

(4) developing opioid quality improvement standard thresholds and opioid
disenrollment standards for opioid prescribers and provider groups. In developing opioid
disenrollment standards, the standards may be described in terms of the length of time in
which prescribing practices fall outside community standards and the nature and amount
of opioid prescribing that fall outside community standards; and

(5) addressing other program issues as determined by the commissioners.

(b) The opioid prescribing protocols shall not apply to opioids prescribed for patients
who are experiencing pain caused by a malignant condition or who are receiving hospice
care, or to opioids prescribed as medication-assisted therapy to treat opioid dependency.

(c) All opioid prescribers who prescribe opioids to Minnesota health care program
enrollees must participate in the program in accordance with subdivision 5. Any other
prescriber who prescribes opioids may comply with the components of this program
described in paragraph (a) on a voluntary basis.

Subd. 5.

Program implementation.

(a) The commissioner shall implement the
programs within the Minnesota health care program to improve the health of and quality
of care provided to Minnesota health care program enrollees. The commissioner shall
annually collect and report to opioid prescribers data showing the sentinel measures of
their opioid prescribing patterns compared to their anonymized peers.

(b) The commissioner shall notify an opioid prescriber and all provider groups
with which the opioid prescriber is employed or affiliated when the opioid prescriber's
prescribing pattern exceeds the opioid quality improvement standard thresholds. An
opioid prescriber and any provider group that receives a notice under this paragraph shall
submit to the commissioner a quality improvement plan for review and approval by the
commissioner with the goal of bringing the opioid prescriber's prescribing practices into
alignment with community standards. A quality improvement plan must include:

(1) components of the program described in subdivision 4, paragraph (a);

(2) internal practice-based measures to review the prescribing practice of the
opioid prescriber and, where appropriate, any other opioid prescribers employed by or
affiliated with any of the provider groups with which the opioid prescriber is employed or
affiliated; and

(3) appropriate use of the prescription monitoring program under section 152.126.

(c) If, after a year from the commissioner's notice under paragraph (b), the opioid
prescriber's prescribing practices do not improve so that they are consistent with
community standards, the commissioner shall take one or more of the following steps:

(1) monitor prescribing practices more frequently than annually;

(2) monitor more aspects of the opioid prescriber's prescribing practices than the
sentinel measures; or

(3) require the opioid prescriber to participate in additional quality improvement
efforts, including but not limited to mandatory use of the prescription monitoring program
established under section 152.126.

(d) The commissioner shall terminate from Minnesota health care programs all
opioid prescribers and provider groups whose prescribing practices fall within the
applicable opioid disenrollment standards.

Subd. 6.

Data practices.

(a) Reports and data identifying an opioid prescriber
are private data on individuals as defined under section 13.02, subdivision 12, until an
opioid prescriber is subject to termination as a medical assistance provider under this
section. Notwithstanding this data classification, the commissioner shall share with all of
the provider groups with which an opioid prescriber is employed or affiliated, a report
identifying an opioid prescriber who is subject to quality improvement activities under
subdivision 5, paragraph (b) or (c).

(b) Reports and data identifying a provider group are nonpublic data as defined
under section 13.02, subdivision 9, until the provider group is subject to termination as a
medical assistance provider under this section.

(c) Upon termination under this section, reports and data identifying an opioid
prescriber or provider group are public, except that any identifying information of
Minnesota health care program enrollees must be redacted by the commissioner.

Subd. 7.

Annual report to legislature.

By September 15, 2016, and annually
thereafter, the commissioner of human services shall report to the legislature on the
implementation of the opioid prescribing improvement program in the Minnesota health
care programs. The report must include data on the utilization of opioids within the
Minnesota health care programs.

Sec. 32.

Minnesota Statutes 2014, section 256B.0757, is amended to read:

256B.0757 COORDINATED CARE THROUGH A HEALTH HOME.

Subdivision 1.

Provision of coverage.

(a) The commissioner shall provide
medical assistance coverage of health home services for eligible individuals with chronic
conditions who select a designated provider, a team of health care professionals, or a
health team as the individual's health home.

(b) The commissioner shall implement this section in compliance with the
requirements of the state option to provide health homes for enrollees with chronic
conditions, as provided under the Patient Protection and Affordable Care Act, Public
Law 111-148, sections 2703 and 3502. Terms used in this section have the meaning
provided in that act.

(c) The commissioner shall establish health homes to serve populations with serious
mental illness who meet the eligibility requirements described under subdivision 2, clause
(4). The health home services provided by health homes shall focus on both the behavioral
and the physical health of these populations.

Subd. 2.

Eligible individual.

An individual is eligible for health home services
under this section if the individual is eligible for medical assistance under this chapter
and has at least:

(1) two chronic conditions;

(2) one chronic condition and is at risk of having a second chronic condition; or

(3) one serious and persistent mental health condition.; or

(4) a condition that meets the definition in section 245.462, subdivision 20,
paragraph (a), or 245.4871, subdivision 15, clause (2); and has a current diagnostic
assessment as defined in Minnesota Rules, part 9505.0372, subpart 1, item B or C, as
performed or reviewed by a mental health professional employed by or under contract
with the behavioral health home. The commissioner shall establish criteria for determining
continued eligibility.

Subd. 3.

Health home services.

(a) Health home services means comprehensive and
timely high-quality services that are provided by a health home. These services include:

(1) comprehensive care management;

(2) care coordination and health promotion;

(3) comprehensive transitional care, including appropriate follow-up, from inpatient
to other settings;

(4) patient and family support, including authorized representatives;

(5) referral to community and social support services, if relevant; and

(6) use of health information technology to link services, as feasible and appropriate.

(b) The commissioner shall maximize the number and type of services included
in this subdivision to the extent permissible under federal law, including physician,
outpatient, mental health treatment, and rehabilitation services necessary for
comprehensive transitional care following hospitalization.

Subd. 4.

Health teams Designated provider.

(a) Health home services
are voluntary and an eligible individual may choose any designated provider. The
commissioner shall establish health teams to support the patient-centered designated
providers to serve as health home homes and provide the services described in subdivision
3 to individuals eligible under subdivision 2. The commissioner shall apply for grants or
contracts as provided under section 3502 of the Patient Protection and Affordable Care Act
to establish health teams homes and provide capitated payments to primary care designated
providers. For purposes of this section, "health teams" "designated provider" means
community-based, interdisciplinary, interprofessional teams of health care providers that
support primary care practices. These providers may include medical specialists, nurses,
advanced practice registered nurses, pharmacists, nutritionists, social workers, behavioral
and mental health providers, doctors of chiropractic, licensed complementary and
alternative medicine practitioners, and physician assistants. a provider, clinical practice or
clinical group practice, rural clinic, community health center, community mental health
center, or any other entity that is determined by the commissioner to be qualified to be a
health home for eligible individuals. This determination must be based on documentation
evidencing that the designated provider has the systems and infrastructure in place to
provide health home services and satisfies the qualification standards established by the
commissioner in consultation with stakeholders and approved by the Centers for Medicare
and Medicaid Services.

(b) The commissioner shall develop and implement certification standards for
designated providers under this subdivision.

Subd. 5.

Payments.

The commissioner shall make payments to each health home
and each health team designated provider for the provision of health home services
described in subdivision 3 to each eligible individual with chronic conditions under
subdivision 2 that selects the health home as a provider.

Subd. 6.

Coordination.

The commissioner, to the extent feasible, shall ensure that
the requirements and payment methods for health homes and health teams designated
providers developed under this section are consistent with the requirements and payment
methods for health care homes established under sections 256B.0751 and 256B.0753. The
commissioner may modify requirements and payment methods under sections 256B.0751
and 256B.0753 in order to be consistent with federal health home requirements and
payment methods.

Subd. 8.

Evaluation and continued development.

(a) For continued certification
under this section, health homes must meet process, outcome, and quality standards
developed and specified by the commissioner. The commissioner shall collect data from
health homes as necessary to monitor compliance with certification standards.

(b) The commissioner may contract with a private entity to evaluate patient and
family experiences, health care utilization, and costs.

(c) The commissioner shall utilize findings from the implementation of behavioral
health homes to determine populations to serve under subsequent health home models
for individuals with chronic conditions.

EFFECTIVE DATE.

This section is effective January 1, 2016, or upon federal
approval, whichever is later. The commissioner of human services shall notify the revisor
of statutes when federal approval is obtained.

Sec. 33.

[256B.0758] HEALTH CARE DELIVERY PILOT PROGRAM.

(a) The commissioner may establish a health care delivery pilot program to test
alternative and innovative integrated health care delivery networks, including accountable
care organizations or a community-based collaborative care network created by or
including North Memorial Health Care. If required, the commissioner shall seek federal
approval of a new waiver request or amend an existing demonstration pilot project waiver.

(b) Individuals eligible for the pilot program shall be individuals who are eligible for
medical assistance under section 256B.055. The commissioner may identify individuals
to be enrolled in the pilot program based on zip code or whether the individuals would
benefit from an integrated health care delivery network.

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

(d) The commissioner shall report to the chairs and ranking minority members
of the legislative committees with jurisdiction over health and human services finance
committees on whether an integrated health care delivery network was created by North
Memorial Health Care, including a description of the delivery network system and the
geographic area served by the network system.

Sec. 34.

Minnesota Statutes 2014, section 256B.69, subdivision 5a, is amended to read:

Subd. 5a.

Managed care contracts.

(a) Managed care contracts under this section
and section 256L.12 shall be entered into or renewed on a calendar year basis. The
commissioner may issue separate contracts with requirements specific to services to
medical assistance recipients age 65 and older.

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

(c) The commissioner shall withhold five percent of managed care plan payments
under this section and county-based purchasing plan payments under section 256B.692
for the prepaid medical assistance program pending completion of performance targets.
Each performance target must be quantifiable, objective, measurable, and reasonably
attainable, except in the case of a performance target based on a federal or state law
or rule. Criteria for assessment of each performance target must be outlined in writing
prior to the contract effective date. Clinical or utilization performance targets and their
related criteria must consider evidence-based research and reasonable interventions when
available or applicable to the populations served, and must be developed with input from
external clinical experts and stakeholders, including managed care plans, county-based
purchasing plans, and providers. The managed care or county-based purchasing plan
must demonstrate, to the commissioner's satisfaction, that the data submitted regarding
attainment of the performance target is accurate. The commissioner shall periodically
change the administrative measures used as performance targets in order to improve plan
performance across a broader range of administrative services. The performance targets
must include measurement of plan efforts to contain spending on health care services and
administrative activities. The commissioner may adopt plan-specific performance targets
that take into account factors affecting only one plan, including characteristics of the
plan's enrollee population. The withheld funds must be returned no sooner than July of the
following year if performance targets in the contract are achieved. The commissioner may
exclude special demonstration projects under subdivision 23.

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

(e) Effective for services rendered on or after January 1, 2012, the commissioner
shall include as part of the performance targets described in paragraph (c) a reduction
in the health plan's emergency department utilization rate for medical assistance and
MinnesotaCare enrollees, as determined by the commissioner. For 2012, the reduction
shall be based on the health plan's utilization in 2009. To earn the return of the withhold
each subsequent year, the managed care plan or county-based purchasing plan must
achieve a qualifying reduction of no less than ten percent of the plan's emergency
department utilization rate for medical assistance and MinnesotaCare enrollees, excluding
enrollees in programs described in subdivisions 23 and 28, compared to the previous
measurement year until the final performance target is reached. When measuring
performance, the commissioner must consider the difference in health risk in a managed
care or county-based purchasing plan's membership in the baseline year compared to the
measurement year, and work with the managed care or county-based purchasing plan to
account for differences that they agree are significant.

The withheld funds must be returned no sooner than July 1 and no later than July 31
of the following calendar year if the managed care plan or county-based purchasing plan
demonstrates to the satisfaction of the commissioner that a reduction in the utilization rate
was achieved. The commissioner shall structure the withhold so that the commissioner
returns a portion of the withheld funds in amounts commensurate with achieved reductions
in utilization less than the targeted amount.

The withhold described in this paragraph shall continue for each consecutive contract
period until the plan's emergency room utilization rate for state health care program
enrollees is reduced by 25 percent of the plan's emergency room utilization rate for medical
assistance and MinnesotaCare enrollees for calendar year 2009. Hospitals shall cooperate
with the health plans in meeting this performance target and shall accept payment
withholds that may be returned to the hospitals if the performance target is achieved.

(f) Effective for services rendered on or after January 1, 2012, the commissioner
shall include as part of the performance targets described in paragraph (c) a reduction
in the plan's hospitalization admission rate for medical assistance and MinnesotaCare
enrollees, as determined by the commissioner. To earn the return of the withhold each
year, the managed care plan or county-based purchasing plan must achieve a qualifying
reduction of no less than five percent of the plan's hospital admission rate for medical
assistance and MinnesotaCare enrollees, excluding enrollees in programs described in
subdivisions 23 and 28, compared to the previous calendar year until the final performance
target is reached. When measuring performance, the commissioner must consider the
difference in health risk in a managed care or county-based purchasing plan's membership
in the baseline year compared to the measurement year, and work with the managed care
or county-based purchasing plan to account for differences that they agree are significant.

The withheld funds must be returned no sooner than July 1 and no later than July
31 of the following calendar year if the managed care plan or county-based purchasing
plan demonstrates to the satisfaction of the commissioner that this reduction in the
hospitalization rate was achieved. The commissioner shall structure the withhold so that
the commissioner returns a portion of the withheld funds in amounts commensurate with
achieved reductions in utilization less than the targeted amount.

The withhold described in this paragraph shall continue until there is a 25 percent
reduction in the hospital admission rate compared to the hospital admission rates in
calendar year 2011, as determined by the commissioner. The hospital admissions in this
performance target do not include the admissions applicable to the subsequent hospital
admission performance target under paragraph (g). Hospitals shall cooperate with the
plans in meeting this performance target and shall accept payment withholds that may be
returned to the hospitals if the performance target is achieved.

(g) Effective for services rendered on or after January 1, 2012, the commissioner
shall include as part of the performance targets described in paragraph (c) a reduction in
the plan's hospitalization admission rates for subsequent hospitalizations within 30 days of
a previous hospitalization of a patient regardless of the reason, for medical assistance and
MinnesotaCare enrollees, as determined by the commissioner. To earn the return of the
withhold each year, the managed care plan or county-based purchasing plan must achieve
a qualifying reduction of the subsequent hospitalization rate for medical assistance and
MinnesotaCare enrollees, excluding enrollees in programs described in subdivisions 23
and 28, of no less than five percent compared to the previous calendar year until the
final performance target is reached.

The withheld funds must be returned no sooner than July 1 and no later than July
31 of the following calendar year if the managed care plan or county-based purchasing
plan demonstrates to the satisfaction of the commissioner that a qualifying reduction in
the subsequent hospitalization rate was achieved. The commissioner shall structure the
withhold so that the commissioner returns a portion of the withheld funds in amounts
commensurate with achieved reductions in utilization less than the targeted amount.

The withhold described in this paragraph must continue for each consecutive
contract period until the plan's subsequent hospitalization rate for medical assistance and
MinnesotaCare enrollees, excluding enrollees in programs described in subdivisions 23
and 28, is reduced by 25 percent of the plan's subsequent hospitalization rate for calendar
year 2011. Hospitals shall cooperate with the plans in meeting this performance target and
shall accept payment withholds that must be returned to the hospitals if the performance
target is achieved.

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

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

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

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

(l) The return of the withhold under paragraphs (h) and (i) is not subject to the
requirements of paragraph (c).

(m) Managed care plans and county-based purchasing plans shall maintain current
and fully executed agreements for all subcontractors, including bargaining groups, for
administrative services that are expensed to the state's public health care programs.
Subcontractor agreements of over $200,000 in annual payments must be in the form of a
written instrument or electronic document containing the elements of offer, acceptance,
and consideration, and must clearly indicate how they relate to state public health
care programs. Upon request, the commissioner shall have access to all subcontractor
documentation under this paragraph. Nothing in this paragraph shall allow release of
information that is nonpublic data pursuant to section 13.02.

Sec. 35.

Minnesota Statutes 2014, section 256B.69, subdivision 5i, is amended to read:

Subd. 5i.

Administrative expenses.

(a) Managed care plan and county-based
purchasing plan Administrative costs for a prepaid health plan provided paid to managed
care plans and county-based purchasing plans under this section or, section 256B.692,
and section 256L.12 must not exceed by more than five 6.6 percent that prepaid health
plan's or county-based purchasing plan's actual calculated administrative spending for the
previous calendar year as a percentage of total revenue of total payments made to all
managed care plans and county-based purchasing plans in aggregate across all state public
health care programs, based on payments expected to be made at the beginning of each
calendar year. The penalty for exceeding this limit must be the amount of administrative
spending in excess of 105 percent of the actual calculated amount. The commissioner may
waive this penalty if the excess administrative spending is the result of unexpected shifts
in enrollment or member needs or new program requirements. The commissioner may
reduce or eliminate administrative requirements to meet the administrative cost limit.
For purposes of this paragraph, administrative costs do not include any state or federal
taxes, surcharges, or assessments.

(b) The following expenses are not allowable administrative expenses for rate-setting
purposes under this section:

(1) charitable contributions made by the managed care plan or the county-based
purchasing plan;

(2) any portion of an individual's compensation in excess of $200,000 paid by the
managed care plan or county-based purchasing plan compensation of individuals within
the organization in excess of $200,000 such that the allocation of compensation for an
individual across all state public health care programs in total cannot exceed $200,000;

(3) any penalties or fines assessed against the managed care plan or county-based
purchasing plan; and

(4) any indirect marketing or advertising expenses of the managed care plan or
county-based purchasing plan. for marketing that does not specifically target state public
health care programs beneficiaries and that has not been approved by the commissioner;

(5) any lobbying and political activities, events, or contributions;

(6) administrative expenses related to the provision of services not covered under
the state plan or waiver;

(7) alcoholic beverages and related costs;

(8) membership in any social, dining, or country club or organization; and

(9) entertainment, including amusement, diversion, and social activities, and any
costs directly associated with these costs, including but not limited to tickets to shows or
sporting events, meals, lodging, rentals, transportation, and gratuities.

For the purposes of this subdivision, compensation includes salaries, bonuses and
incentives, other reportable compensation on an IRS 990 form, retirement and other
deferred compensation, and nontaxable benefits. Contributions include payments for or to
any organization or entity selected by the managed care plan or county-based purchasing
plan that is operated for charitable, educational, political, religious, or scientific purposes
and not related to the provision of medical and administrative services covered under the
state public programs, except to the extent that they improve access to or the quality of
covered services for state public programs beneficiaries, or improve the health status of
state public health care programs beneficiaries.

(c) Administrative expenses must be reported using the formats designated by the
commissioner as part of the rate-setting process and must include, at a minimum, the
following categories:

(1) employee benefit expenses;

(2) sales expenses;

(3) general business and office expenses;

(4) taxes and assessments;

(5) consulting and professional fees; and

(6) outsourced services.

Definitions of items to be included in each category shall be provided by the commissioner
with quarterly financial filing requirements and shall be aligned with definitions used by
the Departments of Commerce and Health in financial reporting for commercial carriers.
Where reasonably possible, expenses for an administrative item shall be directly allocated
so as to assign costs for an item to an individual state public health care program when
the cost can be specifically identified with and benefits the individual state public health
care program. For administrative services expensed to the state's public health care
programs, managed care plans and county-based purchasing plans must clearly identify
and separately record expense items listed under paragraph (b) in their accounting systems
in a manner that allows for independent verification of unallowable expenses for purposes
of determining payment rates for state public programs.

(d) Notwithstanding paragraph (a), the commissioner shall reduce administrative
expenses paid to managed care plans and county-based purchasing plans by .56 percent for
contracts beginning January 1, 2016, and ending December 31, 2017; and by .77 percent
for contracts beginning January 1, 2018, and ending December 31, 2019. To meet the
administrative reductions under this paragraph, the commissioner may reduce or eliminate
administrative requirements, exclude additional unallowable administrative expenses
identified under this section and resulting from the financial audits conducted under
subdivision 9d, and utilize competitive bidding to gain efficiencies through economies
of scale from increased enrollment. If the total reduction cannot be achieved through
administrative reduction, the commissioner may limit total rate increases on payments to
managed care plans and county-based purchasing plans.

Sec. 36.

Minnesota Statutes 2014, section 256B.69, subdivision 9c, is amended to read:

Subd. 9c.

Managed care financial reporting.

(a) The commissioner shall collect
detailed data regarding financials, provider payments, provider rate methodologies, and
other data as determined by the commissioner. The commissioner, in consultation with the
commissioners of health and commerce, and in consultation with managed care plans and
county-based purchasing plans, shall set uniform criteria, definitions, and standards for the
data to be submitted, and shall require managed care and county-based purchasing plans
to comply with these criteria, definitions, and standards when submitting data under this
section. In carrying out the responsibilities of this subdivision, the commissioner shall
ensure that the data collection is implemented in an integrated and coordinated manner
that avoids unnecessary duplication of effort. To the extent possible, the commissioner
shall use existing data sources and streamline data collection in order to reduce public
and private sector administrative costs. Nothing in this subdivision shall allow release of
information that is nonpublic data pursuant to section 13.02.

(b) Effective January 1, 2014, each managed care and county-based purchasing plan
must quarterly provide to the commissioner the following information on state public
programs, in the form and manner specified by the commissioner, according to guidelines
developed by the commissioner in consultation with managed care plans and county-based
purchasing plans under contract:

(1) an income statement by program;

(2) financial statement footnotes;

(3) quarterly profitability by program and population group;

(4) a medical liability summary by program and population group;

(5) received but unpaid claims report by program;

(6) services versus payment lags by program for hospital services, outpatient
services, physician services, other medical services, and pharmaceutical benefits;

(7) utilization reports that summarize utilization and unit cost information by
program for hospitalization services, outpatient services, physician services, and other
medical services;

(8) pharmaceutical statistics by program and population group for measures of price
and utilization of pharmaceutical services;

(9) subcapitation expenses by population group;

(10) third-party payments by program;

(11) all new, active, and closed subrogation cases by program;

(12) all new, active, and closed fraud and abuse cases by program;

(13) medical loss ratios by program;

(14) administrative expenses by category and subcategory by program that reconcile
to other state and federal regulatory agencies;

(15) revenues by program, including investment income;

(16) nonadministrative service payments, provider payments, and reimbursement
rates by provider type or service category, by program, paid by the managed care plan
under this section or the county-based purchasing plan under section 256B.692 to
providers and vendors for administrative services under contract with the plan, including
but not limited to:

(i) individual-level provider payment and reimbursement rate data;

(ii) provider reimbursement rate methodologies by provider type, by program,
including a description of alternative payment arrangements and payments outside the
claims process;

(iii) data on implementation of legislatively mandated provider rate changes; and

(iv) individual-level provider payment and reimbursement rate data and plan-specific
provider reimbursement rate methodologies by provider type, by program, including
alternative payment arrangements and payments outside the claims process, provided to
the commissioner under this subdivision are nonpublic data as defined in section 13.02;

(17) data on the amount of reinsurance or transfer of risk by program; and

(18) contribution to reserve, by program.

(c) In the event a report is published or released based on data provided under
this subdivision, the commissioner shall provide the report to managed care plans and
county-based purchasing plans 15 days prior to the publication or release of the report.
Managed care plans and county-based purchasing plans shall have 15 days to review the
report and provide comment to the commissioner.

The quarterly reports shall be submitted to the commissioner no later than 60 days after the
end of the previous quarter, except the fourth-quarter report, which shall be submitted by
April 1 of each year. The fourth-quarter report shall include audited financial statements,
parent company audited financial statements, an income statement reconciliation report,
and any other documentation necessary to reconcile the detailed reports to the audited
financial statements.

(d) Managed care plans and county-based purchasing plans shall certify to the
commissioner for the purpose of financial reporting for state public health care programs
under this subdivision that costs reported for state public health care programs include:

(1) only services covered under the state plan and waivers, and related allowable
administrative expenses; and

(2) the dollar value of unallowable and nonstate plan services, including both
medical and administrative expenditures, that have been excluded.

Sec. 37.

Minnesota Statutes 2014, section 256B.69, subdivision 9d, is amended to read:

Subd. 9d.

Financial audit and quality assurance audits.

(a) The legislative
auditor shall contract with an audit firm to conduct a biennial independent third-party
financial audit of the information required to be provided by managed care plans and
county-based purchasing plans under subdivision 9c, paragraph (b). The audit shall be
conducted in accordance with generally accepted government auditing standards issued
by the United States Government Accountability Office. The contract with the audit
firm shall be designed and administered so as to render the independent third-party audit
eligible for a federal subsidy, if available. The contract shall require the audit to include
a determination of compliance with the federal Medicaid rate certification process. The
contract shall require the audit to determine if the administrative expenses and investment
income reported by the managed care plans and county-based purchasing plans are
compliant with state and federal law.

(b) For purposes of this subdivision, "independent third party" means an audit firm
that is independent in accordance with government auditing standards issued by the United
States Government Accountability Office and licensed in accordance with chapter 326A.
An audit firm under contract to provide services in accordance with this subdivision must
not have provided services to a managed care plan or county-based purchasing plan during
the period for which the audit is being conducted.

(c) (a) The commissioner shall require, in the request for bids and resulting contracts
with managed care plans and county-based purchasing plans under this section and
section 256B.692, that each managed care plan and county-based purchasing plan submit
to and fully cooperate with the independent third-party financial audit audits by the
legislative auditor under subdivision 9e of the information required under subdivision 9c,
paragraph (b). Each contract with a managed care plan or county-based purchasing plan
under this section or section 256B.692 must provide the commissioner and the audit firm
vendors contracting with the legislative auditor access to all data required to complete
the audit. For purposes of this subdivision, the contracting audit firm shall have the same
investigative power as the legislative auditor under section 3.978, subdivision 2 audits
under subdivision 9e.

(d) (b) Each managed care plan and county-based purchasing plan providing services
under this section shall provide to the commissioner biweekly encounter data and claims
data for state public health care programs and shall participate in a quality assurance
program that verifies the timeliness, completeness, accuracy, and consistency of the data
provided. The commissioner shall develop written protocols for the quality assurance
program and shall make the protocols publicly available. The commissioner shall contract
for an independent third-party audit to evaluate the quality assurance protocols as to
the capacity of the protocols to ensure complete and accurate data and to evaluate the
commissioner's implementation of the protocols. The audit firm under contract to provide
this evaluation must meet the requirements in paragraph (b).

(e) Upon completion of the audit under paragraph (a) and receipt by the legislative
auditor, the legislative auditor shall provide copies of the audit report to the commissioner,
the state auditor, the attorney general, and the chairs and ranking minority members of the
health and human services finance committees of the legislature. (c) Upon completion
of the evaluation under paragraph (d) (b), the commissioner shall provide copies of the
report to the legislative auditor and the chairs and ranking minority members of the health
finance committees of the legislature legislative committees with jurisdiction over health
care policy and financing.

(f) (d) Any actuary under contract with the commissioner to provide actuarial
services must meet the independence requirements under the professional code for fellows
in the Society of Actuaries and must not have provided actuarial services to a managed
care plan or county-based purchasing plan that is under contract with the commissioner
pursuant to this section and section 256B.692 during the period in which the actuarial
services are being provided. An actuary or actuarial firm meeting the requirements
of this paragraph must certify and attest to the rates paid to the managed care plans
and county-based purchasing plans under this section and section 256B.692, and the
certification and attestation must be auditable.

(e) The commissioner may conduct ad hoc audits of the state public health care
programs administrative and medical expenses of managed care plans and county-based
purchasing plans. This includes: financial and encounter data reported to the commissioner
under subdivision 9c, including payments to providers and subcontractors; supporting
documentation for expenditures; categorization of administrative and medical expenses;
and allocation methods used to attribute administrative expenses to state public health
care programs. These audits also must monitor compliance with data and financial
certifications provided to the commissioner for the purposes of managed care capitation
payment rate-setting. The managed care plans and county-based purchasing plans shall
fully cooperate with the audits in this subdivision.

(g) (f) Nothing in this subdivision shall allow the release of information that is
nonpublic data pursuant to section 13.02.

Sec. 38.

Minnesota Statutes 2014, section 256B.69, is amended by adding a
subdivision to read:

Subd. 9e.

Financial audits.

(a) The legislative auditor shall contract with vendors
to conduct independent third-party financial audits of the information required to be
provided by managed care plans and county-based purchasing plans under subdivision
9c, paragraph (b). The audits by the vendors shall be conducted as vendor resources
permit and in accordance with generally accepted government auditing standards issued
by the United States Government Accountability Office. The contract with the vendors
shall be designed and administered so as to render the independent third-party audits
eligible for a federal subsidy, if available. The contract shall require the audits to include a
determination of compliance with the federal Medicaid rate certification process.

(b) For purposes of this subdivision, "independent third-party" means a vendor that
is independent in accordance with government auditing standards issued by the United
States Government Accountability Office.

Sec. 39.

[256B.695] DENTAL SERVICES UTILIZATION MEASURES.

Subdivision 1.

Access benchmarks.

The commissioner shall evaluate access to
dental services for children and adults enrolled in medical assistance and MinnesotaCare
using the following measurements:

(1) the percentage of enrollees that have access to nonspecialty dental services within
a 60-minute or 60-mile radius of the enrollee's residence through an analysis of utilization
data from claims submitted to determine the service location, and by other appropriate
means. This measurement shall be determined in the aggregate and by each individual
payer, including the state and each managed care plan and county-based purchasing plan;

(2) the percentage of adult enrollees continuously enrolled for at least six months in
a calendar year receiving an oral health evaluation within the year measured; and

(3) the percentage of children under the age of 21 continuously enrolled for at least
90 days in a calendar year receiving, within the year measured:

(i) an oral health evaluation and sealants; and

(ii) follow-up care after an oral health evaluation.

Subd. 2.

Baseline measurement.

The commissioner shall establish a baseline
measurement on access to dental services using the measures in subdivision 1 for enrollees
receiving dental services through the fee-for-service system and through managed care
plans or county-based purchasing plans. The baseline shall be calculated using calendar
year 2014 as the base year.

Subd. 3.

Access improvement goals.

(a) By April 1, 2017, the commissioner
shall calculate the measures described in subdivision 1 using fiscal year 2016, compare
these measures with the baseline measures calculated under subdivision 2, and submit
to the legislature the comparison results.

(b) If each measure described in subdivision 1, clauses (1), (2), and (3), has not
increased by at least 20 percent, the dental competitive bidding system described in
subdivision 4 shall be implemented by the commissioner if the legislature, by law, ratifies
its implementation after receipt of the calculations described in paragraph (a).

Subd. 4.

Dental competitive bidding system.

(a) Effective for dental services
rendered on or after January 1, 2019, the commissioner shall contract through a
competitive bidding process with a qualified entity or entities to directly administer
the delivery of dental services to all state public health care program enrollees. The
contracting entity or entities shall administer all dental services currently provided through
the fee-for-service system, managed care plans, and county-based purchasing plans.

(b) The commissioner may contract with a health care delivery system established
under section 256B.0755 or 256B.0756, or a county-based purchasing plan to receive
payment on a prospective per capita basis or through an alternative mutually agreed to
arrangement. The payment must be based on activities and outcomes directly related
to recruitment of dentists and outreach to state public health care program enrollees
residing within a designated geographic area. The contracted activities must be done in
coordination with the contracted administrator under paragraph (a) and the commissioner.
The commissioner shall contract with one entity under this paragraph to perform these
services within any designated geographic area.

Sec. 40.

Minnesota Statutes 2014, section 256B.75, is amended to read:

256B.75 HOSPITAL OUTPATIENT REIMBURSEMENT.

(a) For outpatient hospital facility fee payments for services rendered on or after
October 1, 1992, the commissioner of human services shall pay the lower of (1) submitted
charge, or (2) 32 percent above the rate in effect on June 30, 1992, except for those
services for which there is a federal maximum allowable payment. Effective for services
rendered on or after January 1, 2000, payment rates for nonsurgical outpatient hospital
facility fees and emergency room facility fees shall be increased by eight percent over the
rates in effect on December 31, 1999, except for those services for which there is a federal
maximum allowable payment. Services for which there is a federal maximum allowable
payment shall be paid at the lower of (1) submitted charge, or (2) the federal maximum
allowable payment. Total aggregate payment for outpatient hospital facility fee services
shall not exceed the Medicare upper limit. If it is determined that a provision of this
section conflicts with existing or future requirements of the United States government with
respect to federal financial participation in medical assistance, the federal requirements
prevail. The commissioner may, in the aggregate, prospectively reduce payment rates to
avoid reduced federal financial participation resulting from rates that are in excess of
the Medicare upper limitations.

(b) Notwithstanding paragraph (a), payment for outpatient, emergency, and
ambulatory surgery hospital facility fee services for critical access hospitals designated
under section 144.1483, clause (9), shall be paid on a cost-based payment system that is
based on the cost-finding methods and allowable costs of the Medicare program. Effective
for services provided on or after July 1, 2015, rates established for critical access hospitals
under this paragraph for the applicable payment year shall be the final payment and shall
not be settled to actual costs.

(c) Effective for services provided on or after July 1, 2003, rates that are based
on the Medicare outpatient prospective payment system shall be replaced by a budget
neutral prospective payment system that is derived using medical assistance data. The
commissioner shall provide a proposal to the 2003 legislature to define and implement
this provision.

(d) For fee-for-service services provided on or after July 1, 2002, the total payment,
before third-party liability and spenddown, made to hospitals for outpatient hospital
facility services is reduced by .5 percent from the current statutory rate.

(e) In addition to the reduction in paragraph (d), the total payment for fee-for-service
services provided on or after July 1, 2003, made to hospitals for outpatient hospital
facility services before third-party liability and spenddown, is reduced five percent from
the current statutory rates. Facilities defined under section 256.969, subdivision 16, are
excluded from this paragraph.

(f) In addition to the reductions in paragraphs (d) and (e), the total payment for
fee-for-service services provided on or after July 1, 2008, made to hospitals for outpatient
hospital facility services before third-party liability and spenddown, is reduced three
percent from the current statutory rates. Mental health services and facilities defined under
section 256.969, subdivision 16, are excluded from this paragraph.

Sec. 41.

Minnesota Statutes 2014, section 256B.76, subdivision 2, is amended to read:

Subd. 2.

Dental reimbursement.

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

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

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

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

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

(d) Effective for services provided on or after January 1, 2002, payment for
diagnostic examinations and dental x-rays provided to children under age 21 shall be the
lower of (1) the submitted charge, or (2) 85 percent of median 1999 charges.

(e) The increases listed in paragraphs (b) and (c) shall be implemented January 1,
2000, for managed care.

(f) Effective for dental services rendered on or after October 1, 2010, by a
state-operated dental clinic, payment shall be paid on a reasonable cost basis that is based
on the Medicare principles of reimbursement. This payment shall be effective for services
rendered on or after January 1, 2011, to recipients enrolled in managed care plans or
county-based purchasing plans.

(g) Beginning in fiscal year 2011, if the payments to state-operated dental clinics
in paragraph (f), including state and federal shares, are less than $1,850,000 per fiscal
year, a supplemental state payment equal to the difference between the total payments
in paragraph (f) and $1,850,000 shall be paid from the general fund to state-operated
services for the operation of the dental clinics.

(h) If the cost-based payment system for state-operated dental clinics described in
paragraph (f) does not receive federal approval, then state-operated dental clinics shall be
designated as critical access dental providers under subdivision 4, paragraph (b), and shall
receive the critical access dental reimbursement rate as described under subdivision 4,
paragraph (a).

(i) (h) Effective for services rendered on or after September 1, 2011, through June
30, 2013, payment rates for dental services shall be reduced by three percent. This
reduction does not apply to state-operated dental clinics in paragraph (f).

(j) (i) Effective for services rendered on or after January 1, 2014, payment rates for
dental services shall be increased by five percent from the rates in effect on December
31, 2013. This increase does not apply to state-operated dental clinics in paragraph (f),
federally qualified health centers, rural health centers, and Indian health services. Effective
January 1, 2014, payments made to managed care plans and county-based purchasing
plans under sections 256B.69, 256B.692, and 256L.12 shall reflect the payment increase
described in this paragraph.

(j) Effective for services rendered on or after July 1, 2015, payment rates for dental
services shall be set to the percentage of 2012 fee-for-service submitted charges that
results in a 24 percent increase in the aggregate payment for dental services from the rates
in effect on June 30, 2015. Effective January 1, 2016, payments made to managed care
plans and county-based purchasing plans shall reflect the payment increase described in
this paragraph.

Sec. 42.

Minnesota Statutes 2014, section 256B.76, subdivision 4, is amended to read:

Subd. 4.

Critical access dental providers.

(a) Effective for dental services
rendered on or after January 1, 2002, the commissioner shall increase reimbursements
to dentists and dental clinics deemed by the commissioner to be critical access dental
providers. For dental services rendered on or after July 1, 2007, the commissioner shall
increase reimbursement by 35 percent above the reimbursement rate that would otherwise
be paid to the critical access dental provider. The commissioner shall pay the managed
care plans and county-based purchasing plans in amounts sufficient to reflect increased
reimbursements to critical access dental providers as approved by the commissioner.
Effective July 1, 2015, the commissioner shall administer an incentive program that makes
payments to dental clinics that meet the following eligibility criteria:

(1) nonspecialty dental clinics must meet or exceed the annual median ratio of
restorative to preventive dental services calculated based on the median ratio of all
nonspecialty dental clinics serving public health care program enrollees; and

(2) specialty dental clinics must have provided services to a fee-for-service or
managed care enrollee during the prior year, and must meet or exceed the annual median
of dental providers for that dental specialty serving public health care program enrollees.

(b) The commissioner shall designate the following dentists and dental clinics as
critical access dental providers:

(1) nonprofit community clinics that:

(i) have nonprofit status in accordance with chapter 317A;

(ii) have tax exempt status in accordance with the Internal Revenue Code, section
501(c)(3);

(iii) are established to provide oral health services to patients who are low income,
uninsured, have special needs, and are underserved;

(iv) have professional staff familiar with the cultural background of the clinic's
patients;

(v) charge for services on a sliding fee scale designed to provide assistance to
low-income patients based on current poverty income guidelines and family size;

(vi) do not restrict access or services because of a patient's financial limitations
or public assistance status; and

(vii) have free care available as needed;

(2) federally qualified health centers, rural health clinics, and public health clinics;

(3) city or county owned and operated hospital-based dental clinics;

(4) a dental clinic or dental group owned and operated by a nonprofit corporation in
accordance with chapter 317A with more than 10,000 patient encounters per year with
patients who are uninsured or covered by medical assistance or MinnesotaCare;

(5) a dental clinic owned and operated by the University of Minnesota or the
Minnesota State Colleges and Universities system; and

(6) private practicing dentists if:

(i) the dentist's office is located within a health professional shortage area as defined
under Code of Federal Regulations, title 42, part 5, and United States Code, title 42,
section 254E;

(ii) more than 50 percent of the dentist's patient encounters per year are with patients
who are uninsured or covered by medical assistance or MinnesotaCare;

(iii) the dentist does not restrict access or services because of a patient's financial
limitations or public assistance status; and

(iv) the level of service provided by the dentist is critical to maintaining adequate
levels of patient access within the service area in which the dentist operates.

(c) A designated critical access clinic shall receive the reimbursement rate specified
in paragraph (a) for dental services provided off site at a private dental office if the
following requirements are met:

(1) the designated critical access dental clinic is located within a health professional
shortage area as defined under Code of Federal Regulations, title 42, part 5, and United
States Code, title 42, section 254E, and is located outside the seven-county metropolitan
area;

(2) the designated critical access dental clinic is not able to provide the service
and refers the patient to the off-site dentist;

(3) the service, if provided at the critical access dental clinic, would be reimbursed
at the critical access reimbursement rate;

(4) the dentist and allied dental professionals providing the services off site are
licensed and in good standing under chapter 150A;

(5) the dentist providing the services is enrolled as a medical assistance provider;

(6) the critical access dental clinic submits the claim for services provided off site
and receives the payment for the services; and

(7) the critical access dental clinic maintains dental records for each claim submitted
under this paragraph, including the name of the dentist, the off-site location, and the license
number of the dentist and allied dental professionals providing the services. Eighty percent
of the total payments made under this subdivision shall be paid to nonspecialty dental
clinics and 20 percent of the total payments paid shall be paid to specialty dental clinics.

(c) For fiscal year 2016, the total payments under paragraph (a) shall not exceed the
total amount paid under the critical access dental program in fiscal year 2015. For fiscal
year 2017 and each fiscal year thereafter, total payments under paragraph (a) shall be
adjusted annually based on the value of the dental services component of the medical care
services expenditure category of the Consumer Price Index for all Urban Consumers
(CPI-U): U.S. city average from the previous year.

(d) Payments under paragraph (a) shall be made proportionate to the dental clinic's
share of enrollees served in both managed care and fee-for-service.

(e) Payments under paragraph (a) shall be calculated based on the prior fiscal year
claims submitted and be prorated based on the number of months the dental clinic was
enrolled in any fee-for-service or managed care program. Payments to dental clinics under
this subdivision shall be made no later than April 1 of the year following the fiscal year
for which payments are owed beginning fiscal year 2016.

(f) To be eligible for payments under this subdivision, a dental clinic must provide
dental services to medical assistance and MinnesotaCare enrollees.

(g) No payments under this subdivision shall be made to dental clinics that receive
a cost-based rate, including, but not limited to, federally qualified health centers and
state-operated dental clinics.

Sec. 43.

Minnesota Statutes 2014, section 256B.76, subdivision 7, is amended to read:

Subd. 7.

Payment for certain primary care services and immunization
administration.

(a) Payment for certain primary care services and immunization
administration services rendered on or after January 1, 2013, through December 31, 2014,
shall be made in accordance with section 1902(a)(13) of the Social Security Act.

(b) Effective for primary care services provided on or after July 1, 2015, payment
rates shall be increased by one percent over the rates in effect on June 30, 2015. Effective
January 1, 2016, payments made to managed care plans and county-based purchasing
plans shall reflect the payment increase described in this paragraph.

(c) Effective for services provided on or after November 1, 2017, payment rates
shall be increased 0.25 percent over the rates in effect October 31, 2017. Effective January
1, 2018, payments made to managed care plans and county-based purchasing plans shall
reflect the payment increase described in this paragraph.

(d) For purposes of paragraphs (b) and (c), primary care services shall include
preventive medicine visits or family planning visits when billed by a physician, advanced
registered nurse practitioner, or physician assistant practicing in a family planning agency,
general internal medicine practice, general pediatric practice, general geriatric practice, or
family medicine practice.

Sec. 44.

[256B.7625] REIMBURSEMENT FOR PUBLIC HEALTH NURSE
HOME VISITS.

Effective for services provided on or after July 1, 2016, minimum payment rates
under this chapter shall be $140 per visit for managed care and fee-for-service visits for
public health nurse home visits administered by home visiting programs that meet the
United States Department of Health and Human Services criteria for evidence-based
models and are identified by the commissioner of health as eligible to be implemented
under the Maternal, Infant, and Early Childhood Home Visiting program. Home visits
shall be targeted to mothers and their children beginning with prenatal visits through age
three for the child.

Sec. 45.

Minnesota Statutes 2014, section 256B.767, is amended to read:

256B.767 MEDICARE PAYMENT LIMIT.

(a) Effective for services rendered on or after July 1, 2010, fee-for-service payment
rates for physician and professional services under section 256B.76, subdivision 1, and
basic care services subject to the rate reduction specified in section 256B.766, shall not
exceed the Medicare payment rate for the applicable service, as adjusted for any changes
in Medicare payment rates after July 1, 2010. The commissioner shall implement this
section after any other rate adjustment that is effective July 1, 2010, and shall reduce rates
under this section by first reducing or eliminating provider rate add-ons.

(b) This section does not apply to services provided by advanced practice certified
nurse midwives licensed under chapter 148 or traditional midwives licensed under chapter
147D. Notwithstanding this exemption, medical assistance fee-for-service payment rates
for advanced practice certified nurse midwives and licensed traditional midwives shall
equal and shall not exceed the medical assistance payment rate to physicians for the
applicable service.

(c) This section does not apply to mental health services or physician services billed
by a psychiatrist or an advanced practice registered nurse with a specialty in mental health.

(d) Effective for durable medical equipment, prosthetics, orthotics, or supplies
provided on or after July 1, 2013, through June 30, 2015, the payment rate for items
that are subject to the rates established under Medicare's National Competitive Bidding
Program shall be equal to the rate that applies to the same item when not subject to the
rate established under Medicare's National Competitive Bidding Program. This paragraph
does not apply to mail-order diabetic supplies and does not apply to items provided to
dually eligible recipients when Medicare is the primary payer of the item.

Sec. 46.

[256B.79] INTEGRATED CARE FOR HIGH-RISK PREGNANT
WOMEN.

Subdivision 1.

Definitions.

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

(b) "Adverse outcomes" means maternal opiate addiction, other reportable prenatal
substance abuse, low birth weight, or preterm birth.

(c) "Qualified integrated perinatal care collaborative" or "collaborative" means
a combination of (1) members of community-based organizations that represent
communities within the identified targeted populations, and (2) local or tribally based
service entities, including health care, public health, social services, mental health,
chemical dependency treatment, and community-based providers, determined by the
commissioner to meet the criteria for the provision of integrated care and enhanced
services for enrollees within targeted populations.

(d) "Targeted populations" means pregnant medical assistance enrollees residing
in geographic areas identified by the commissioner as being at above-average risk for
adverse outcomes.

Subd. 2.

Pilot program established.

The commissioner shall implement a pilot
program to improve birth outcomes and strengthen early parental resilience for pregnant
women who are medical assistance enrollees, are at significantly elevated risk for adverse
outcomes of pregnancy, and are in targeted populations. The program must promote the
provision of integrated care and enhanced services to these pregnant women, including
postpartum coordination to ensure ongoing continuity of care, by qualified integrated
perinatal care collaboratives.

Subd. 3.

Grant awards.

The commissioner shall award grants to qualifying
applicants to support interdisciplinary, integrated perinatal care. Grants must be awarded
beginning July 1, 2016. Grant funds must be distributed through a request for proposals
process to a designated lead agency within an entity that has been determined to be a
qualified integrated perinatal care collaborative or within an entity in the process of
meeting the qualifications to become a qualified integrated perinatal care collaborative.
Grant awards must be used to support interdisciplinary, team-based needs assessments,
planning, and implementation of integrated care and enhanced services for targeted
populations. In determining grant award amounts, the commissioner shall consider the
identified health and social risks linked to adverse outcomes and attributed to enrollees
within the identified targeted population.

Subd. 4.

Eligibility for grants.

To be eligible for a grant under this section, an
entity must show that the entity meets or is in the process of meeting qualifications
established by the commissioner to be a qualified integrated perinatal care collaborative.
These qualifications must include evidence that the entity has or is in the process of
developing policies, services, and partnerships to support interdisciplinary, integrated care.
The policies, services, and partnerships must meet specific criteria and be approved by the
commissioner. The commissioner shall establish a process to review the collaborative's
capacity for interdisciplinary, integrated care, to be reviewed at the commissioner's
discretion. In determining whether the entity meets the qualifications for a qualified
integrated perinatal care collaborative, the commissioner shall verify and review whether
the entity's policies, services, and partnerships:

(1) optimize early identification of drug and alcohol dependency and abuse during
pregnancy, effectively coordinate referrals and follow-up of identified patients to
evidence-based or evidence-informed treatment, and integrate perinatal care services with
behavioral health and substance abuse services;

(2) enhance access to, and effective use of, needed health care or tribal health care
services, public health or tribal public health services, social services, mental health
services, chemical dependency services, or services provided by community-based
providers by bridging cultural gaps within systems of care and by integrating
community-based paraprofessionals such as doulas and community health workers as
routinely available service components;

(3) encourage patient education about prenatal care, birthing, and postpartum
care, and document how patient education is provided. Patient education may include
information on nutrition, reproductive life planning, breastfeeding, and parenting;

(4) integrate child welfare case planning with substance abuse treatment planning
and monitoring, as appropriate;

(5) effectively systematize screening, collaborative care planning, referrals, and
follow up for behavioral and social risks known to be associated with adverse outcomes
and known to be prevalent within the targeted populations;

(6) facilitate ongoing continuity of care to include postpartum coordination and
referrals for interconception care, continued treatment for substance abuse, identification
and referrals for maternal depression and other chronic mental health conditions,
continued medication management for chronic diseases, and appropriate referrals to tribal
or county-based social services agencies and tribal or county-based public health nursing
services; and

(7) implement ongoing quality improvement activities as determined by the
commissioner, including collection and use of data from qualified providers on metrics
of quality such as health outcomes and processes of care, and the use of other data that
has been collected by the commissioner.

Subd. 5.

Gaps in communication, support, and care.

A collaborative receiving
a grant under this section must develop means of identifying and reporting gaps in the
collaborative's communication, administrative support, and direct care that must be
remedied for the collaborative to effectively provide integrated care and enhanced services
to targeted populations.

Subd. 6.

Report.

By January 31, 2019, the commissioner shall report to the chairs
and ranking minority members of the legislative committees with jurisdiction over health
and human services policy and finance on the status and progress of the pilot program.
The report must:

(1) describe the capacity of collaboratives receiving grants under this section;

(2) contain aggregate information about enrollees served within targeted populations;

(3) describe the utilization of enhanced prenatal services;

(4) for enrollees identified with maternal substance use disorders, describe the
utilization of substance use treatment and dispositions of any child protection cases;

(5) contain data on outcomes within targeted populations and compare these
outcomes to outcomes statewide, using standard categories of race and ethnicity; and

(6) include recommendations for continuing the program or sustaining improvements
through other means beyond June 30, 2019.

Subd. 7.

Expiration.

This section expires June 30, 2019.

Sec. 47.

Minnesota Statutes 2014, section 256L.01, subdivision 3a, is amended to read:

Subd. 3a.

Family.

(a) Except as provided in paragraphs (c) and (d), "family" has
the meaning given for family and family size as defined in Code of Federal Regulations,
title 26, section 1.36B-1.

(b) The term includes children who are temporarily absent from the household in
settings such as schools, camps, or parenting time with noncustodial parents.

(c) For an individual who does not expect to file a federal tax return and does not
expect to be claimed as a dependent for the applicable tax year, "family" has the meaning
given in Code of Federal Regulations, title 42, section 435.603(f)(3).

(d) For a married couple, "family" has the meaning given in Code of Federal
Regulations, title 42, section 435.603(f)(4).

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 48.

Minnesota Statutes 2014, section 256L.01, subdivision 5, is amended to read:

Subd. 5.

Income.

"Income" has the meaning given for modified adjusted gross
income, as defined in Code of Federal Regulations, title 26, section 1.36B-1., and means a
household's projected annual income for the applicable tax year

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 49.

Minnesota Statutes 2014, section 256L.03, subdivision 5, is amended to read:

Subd. 5.

Cost-sharing.

(a) Except as otherwise provided in this subdivision, the
MinnesotaCare benefit plan shall include the following cost-sharing requirements for all
enrollees:

(1) $3 per prescription for adult enrollees;

(2) $25 for eyeglasses for adult enrollees;

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

(4) $6 for nonemergency visits to a hospital-based emergency room for services
provided through December 31, 2010, and $3.50 effective January 1, 2011; and

(5) a family deductible equal to the maximum amount allowed under Code of
Federal Regulations, title 42, part 447.54. $2.75 per month per family and adjusted
annually by the percentage increase in the medical care component of the CPI-U for
the period of September to September of the preceding calendar year, rounded to the
next-higher five cent increment.

(b) Paragraph (a) does not apply to children under the age of 21 and to American
Indians as defined in Code of Federal Regulations, title 42, section 447.51.

(c) Paragraph (a), clause (3), does not apply to mental health services.

(d) MinnesotaCare reimbursements to fee-for-service providers and payments to
managed care plans or county-based purchasing plans shall not be increased as a result of
the reduction of the co-payments in paragraph (a), clause (4), effective January 1, 2011.

(e) The commissioner, through the contracting process under section 256L.12,
may allow managed care plans and county-based purchasing plans to waive the family
deductible under paragraph (a), clause (5). The value of the family deductible shall not be
included in the capitation payment to managed care plans and county-based purchasing
plans. Managed care plans and county-based purchasing plans shall certify annually to the
commissioner the dollar value of the family deductible.

EFFECTIVE DATE.

The amendment to paragraph (a), clause (5), is effective
retroactively from January 1, 2014. The amendment to paragraph (b) is effective the
day following final enactment.

Sec. 50.

Minnesota Statutes 2014, section 256L.04, subdivision 1a, is amended to read:

Subd. 1a.

Social Security number required.

(a) Individuals and families applying
for MinnesotaCare coverage must provide a Social Security number if required in Code of
Federal Regulations, title 45, section 155.310(a)(3).

(b) The commissioner shall not deny eligibility to an otherwise eligible applicant
who has applied for a Social Security number and is awaiting issuance of that Social
Security number.

(c) Newborns enrolled under section 256L.05, subdivision 3, are exempt from the
requirements of this subdivision.

(d) Individuals who refuse to provide a Social Security number because of
well-established religious objections are exempt from the requirements of this subdivision.
The term "well-established religious objections" has the meaning given in Code of Federal
Regulations, title 42, section 435.910.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 51.

Minnesota Statutes 2014, section 256L.04, subdivision 1c, is amended to read:

Subd. 1c.

General requirements.

To be eligible for coverage under MinnesotaCare,
a person must meet the eligibility requirements of this section. A person eligible for
MinnesotaCare shall not be considered a qualified individual under section 1312 of the
Affordable Care Act, and is not eligible for enrollment in a qualified health plan offered
through MNsure under chapter 62V.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 52.

Minnesota Statutes 2014, section 256L.04, subdivision 7b, is amended to read:

Subd. 7b.

Annual income limits adjustment.

The commissioner shall adjust the
income limits under this section each July 1 by the annual update of the federal poverty
guidelines following publication by the United States Department of Health and Human
Services except that the income standards shall not go below those in effect on July 1,
2009 annually on January 1 as provided in Code of Federal Regulations, title 26, section
1.36B-1(h).

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 53.

Minnesota Statutes 2014, section 256L.05, is amended by adding a subdivision
to read:

Subd. 2a.

Eligibility and coverage.

For purposes of this chapter, an individual
is eligible for MinnesotaCare following a determination by the commissioner that the
individual meets the eligibility criteria for the applicable period of eligibility. For an
individual required to pay a premium, coverage is only available in each month of the
applicable period of eligibility for which a premium is paid.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 54.

Minnesota Statutes 2014, section 256L.05, subdivision 3, is amended to read:

Subd. 3.

Effective date of coverage.

(a) The effective date of coverage is the first
day of the month following the month in which eligibility is approved and the first premium
payment has been received. The effective date of coverage for new members added to the
family is the first day of the month following the month in which the change is reported. All
eligibility criteria must be met by the family at the time the new family member is added.
The income of the new family member is included with the family's modified adjusted gross
income and the adjusted premium begins in the month the new family member is added.

(b) The initial premium must be received by the last working day of the month for
coverage to begin the first day of the following month.

(c) Notwithstanding any other law to the contrary, benefits under sections 256L.01 to
256L.18 are secondary to a plan of insurance or benefit program under which an eligible
person may have coverage and the commissioner shall use cost avoidance techniques to
ensure coordination of any other health coverage for eligible persons. The commissioner
shall identify eligible persons who may have coverage or benefits under other plans of
insurance or who become eligible for medical assistance.

(d) The effective date of coverage for individuals or families who are exempt from
paying premiums under section 256L.15, subdivision 1, paragraph (c), is the first day of
the month following the month in which verification of American Indian status is received
or eligibility is approved, whichever is later.

Sec. 55.

Minnesota Statutes 2014, section 256L.05, subdivision 3a, is amended to read:

Subd. 3a.

Renewal Redetermination of eligibility.

(a) Beginning July 1, 2007, An
enrollee's eligibility must be renewed every 12 months redetermined on an annual basis.
The 12-month period begins in the month after the month the application is approved. The
period of eligibility is the entire calendar year following the year in which eligibility is
redetermined. Beginning in calendar year 2015, eligibility redeterminations shall occur
during the open enrollment period for qualified health plans as specified in Code of
Federal Regulations, title 45, section 155.410.

(b) Each new period of eligibility must take into account any changes in
circumstances that impact eligibility and premium amount. An enrollee must provide all
the information needed to redetermine eligibility by the first day of the month that ends
the eligibility period. The premium for the new period of eligibility must be received
Coverage begins as provided in section 256L.06 in order for eligibility to continue.

(c) For children enrolled in MinnesotaCare, the first period of renewal begins the
month the enrollee turns 21 years of age.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 56.

Minnesota Statutes 2014, section 256L.05, subdivision 4, is amended to read:

Subd. 4.

Application processing.

The commissioner of human services shall
determine an applicant's eligibility for MinnesotaCare no more than 30 45 days from the
date that the application is received by the Department of Human Services as set forth in
Code of Federal Regulations, title 42, section 435.912. Beginning January 1, 2000, this
requirement also applies to local county human services agencies that determine eligibility
for MinnesotaCare.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 57.

Minnesota Statutes 2014, section 256L.06, subdivision 3, is amended to read:

Subd. 3.

Commissioner's duties and payment.

(a) Premiums are dedicated to the
commissioner for MinnesotaCare.

(b) The commissioner shall develop and implement procedures to: (1) require
enrollees to report changes in income; (2) adjust sliding scale premium payments, based
upon both increases and decreases in enrollee income, at the time the change in income
is reported; and (3) disenroll enrollees from MinnesotaCare for failure to pay required
premiums. Failure to pay includes payment with a dishonored check, a returned automatic
bank withdrawal, or a refused credit card or debit card payment. The commissioner may
demand a guaranteed form of payment, including a cashier's check or a money order, as
the only means to replace a dishonored, returned, or refused payment.

(c) Premiums are calculated on a calendar month basis and may be paid on a
monthly, quarterly, or semiannual basis, with the first payment due upon notice from the
commissioner of the premium amount required. The commissioner shall inform applicants
and enrollees of these premium payment options. Premium payment is required before
enrollment is complete and to maintain eligibility in MinnesotaCare. Premium payments
received before noon are credited the same day. Premium payments received after noon
are credited on the next working day.

(d) Nonpayment of the premium will result in disenrollment from the plan
effective for the calendar month following the month for which the premium was due.
Persons disenrolled for nonpayment who pay all past due premiums as well as current
premiums due, including premiums due for the period of disenrollment, within 20 days of
disenrollment, shall be reenrolled retroactively to the first day of disenrollment may not
reenroll prior to the first day of the month following the payment of an amount equal to
two months' premiums.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 58.

Minnesota Statutes 2014, section 256L.11, is amended by adding a subdivision
to read:

Subd. 7a.

Dental providers.

Effective for dental services provided to
MinnesotaCare enrollees on or after January 1, 2016, the payment rate shall be the rate
described under section 256B.76, subdivision 2, paragraph (i).

Sec. 59.

Minnesota Statutes 2014, section 256L.121, subdivision 1, is amended to read:

Subdivision 1.

Competitive process.

The commissioner of human services shall
establish a competitive process for entering into contracts with participating entities for
the offering of standard health plans through MinnesotaCare. Coverage through standard
health plans must be available to enrollees beginning January 1, 2015. Each standard
health plan must cover the health services listed in and meet the requirements of section
256L.03. The competitive process must meet the requirements of section 1331 of the
Affordable Care Act and be designed to ensure enrollee access to high-quality health care
coverage options. The commissioner, to the extent feasible, shall seek to ensure that
enrollees have a choice of coverage from more than one participating entity within a
geographic area. In counties that were part of a county-based purchasing plan on January
1, 2013, the commissioner shall use the medical assistance competitive procurement
process under section 256B.69, subdivisions 1 to 32, under which selection of entities is
based on criteria related to provider network access, coordination of health care with other
local services, alignment with local public health goals, and other factors.

Sec. 60.

Minnesota Statutes 2014, section 256L.15, subdivision 2, is amended to read:

Subd. 2.

Sliding fee scale; monthly individual or family income.

(a) The
commissioner shall establish a sliding fee scale to determine the percentage of monthly
individual or family income that households at different income levels must pay to obtain
coverage through the MinnesotaCare program. The sliding fee scale must be based on the
enrollee's monthly individual or family income.

(b) Beginning January 1, 2014, MinnesotaCare enrollees shall pay premiums
according to the premium scale specified in paragraph (c) with the exception that children
20 years of age and younger in families with income at or below 200 percent of the federal
poverty guidelines shall pay no premiums (d).

(c) Paragraph (b) does not apply to:

(1) children 20 years of age or younger; and

(2) individuals with household incomes below 35 percent of the federal poverty
guidelines.

(c) (d) The following premium scale is established for each individual in the
household who is 21 years of age or older and enrolled in MinnesotaCare:

Federal Poverty Guideline Greater than or Equal to	Less than	Individual Premium Amount
0% 35%	55%	$4
55%	80%	$6
80%	90%	$8
90%	100%	$10
100%	110%	$12
110%	120%	$15 $14
120%	130%	$18 $15
130%	140%	$21 $16
140%	150%	$25
150%	160%	$29
160%	170%	$33
170%	180%	$38
180%	190%	$43
190%		$50

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 61.

Minnesota Statutes 2014, section 297A.70, subdivision 7, is amended to read:

Subd. 7.

Hospitals, outpatient surgical centers, and critical access dental
providers.

(a) Sales, except for those listed in paragraph (d), to a hospital are exempt,
if the items purchased are used in providing hospital services. For purposes of this
subdivision, "hospital" means a hospital organized and operated for charitable purposes
within the meaning of section 501(c)(3) of the Internal Revenue Code, and licensed under
chapter 144 or by any other jurisdiction, and "hospital services" are services authorized or
required to be performed by a "hospital" under chapter 144.

(b) Sales, except for those listed in paragraph (d), to an outpatient surgical center
are exempt, if the items purchased are used in providing outpatient surgical services. For
purposes of this subdivision, "outpatient surgical center" means an outpatient surgical
center organized and operated for charitable purposes within the meaning of section
501(c)(3) of the Internal Revenue Code, and licensed under chapter 144 or by any other
jurisdiction. For the purposes of this subdivision, "outpatient surgical services" means:
(1) services authorized or required to be performed by an outpatient surgical center under
chapter 144; and (2) urgent care. For purposes of this subdivision, "urgent care" means
health services furnished to a person whose medical condition is sufficiently acute to
require treatment unavailable through, or inappropriate to be provided by, a clinic or
physician's office, but not so acute as to require treatment in a hospital emergency room.

(c) Sales, except for those listed in paragraph (d), to a critical access dental provider
are exempt, if the items purchased are used in providing critical access dental care
services. For the purposes of this subdivision, "critical access dental provider" means a
dentist or dental clinic that qualifies under section 256B.76, subdivision 4, paragraph (b) ,
and, in the previous calendar year, had no more than 15 percent of its patients covered by
private dental insurance.

(d) This exemption does not apply to the following products and services:

(1) purchases made by a clinic, physician's office, or any other medical facility not
operating as a hospital, outpatient surgical center, or critical access dental provider, even
though the clinic, office, or facility may be owned and operated by a hospital, outpatient
surgical center, or critical access dental provider;

(2) sales under section 297A.61, subdivision 3, paragraph (g), clause (2), and
prepared food, candy, and soft drinks;

(3) building and construction materials used in constructing buildings or facilities
that will not be used principally by the hospital, outpatient surgical center, or critical
access dental provider;

(4) building, construction, or reconstruction materials purchased by a contractor or a
subcontractor as a part of a lump-sum contract or similar type of contract with a guaranteed
maximum price covering both labor and materials for use in the construction, alteration, or
repair of a hospital, outpatient surgical center, or critical access dental provider; or

(5) the leasing of a motor vehicle as defined in section 297B.01, subdivision 11.

(e) A limited liability company also qualifies for exemption under this subdivision if
(1) it consists of a sole member that would qualify for the exemption, and (2) the items
purchased qualify for the exemption.

(f) An entity that contains both a hospital and a nonprofit unit may claim this
exemption on purchases made for both the hospital and nonprofit unit provided that:

(1) the nonprofit unit would have qualified for exemption under subdivision 4; and

(2) the items purchased would have qualified for the exemption.

Sec. 62.

Laws 2008, chapter 363, article 18, section 3, subdivision 5, is amended to read:

Subd. 5. Basic Health Care Grants

(a) MinnesotaCare Grants

Health Care Access

-0-

(770,000)

Incentive Program and Outreach Grants.
Of the appropriation for the Minnesota health
care outreach program in Laws 2007, chapter
147, article 19, section 3, subdivision 7,
paragraph (b):

(1) $400,000 in fiscal year 2009 from the
general fund and $200,000 in fiscal year 2009
from the health care access fund are for the
incentive program under Minnesota Statutes,
section 256.962, subdivision 5. For the
biennium beginning July 1, 2009, base level
funding for this activity shall be $360,000
from the general fund and $160,000 from the
health care access fund; and

(2) $100,000 in fiscal year 2009 from the
general fund and $50,000 in fiscal year 2009
from the health care access fund are for the
outreach grants under Minnesota Statutes,
section 256.962, subdivision 2. For the
biennium beginning July 1, 2009, base level
funding for this activity shall be $90,000
from the general fund and $40,000 from the
health care access fund.

(b) MA Basic Health Care Grants - Families and Children

-0-

(17,280,000)

Third-Party Liability. (a) During
fiscal year 2009, the commissioner shall
employ a contractor paid on a percentage
basis to improve third-party collections.
Improvement initiatives may include, but not
be limited to, efforts to improve postpayment
collection from nonresponsive claims and
efforts to uncover third-party payers the
commissioner has been unable to identify.

(b) In fiscal year 2009, the first $1,098,000
of recoveries, after contract payments and
federal repayments, is appropriated to
the commissioner for technology-related
expenses.

Administrative Costs. (a) For contracts
effective on or after January 1, 2009,
the commissioner shall limit aggregate
administrative costs paid to managed care
plans under Minnesota Statutes, section
256B.69, and to county-based purchasing
plans under Minnesota Statutes, section
256B.692, to an overall average of 6.6 percent
of total contract payments under Minnesota
Statutes, sections 256B.69 and 256B.692,
for each calendar year. For purposes of
this paragraph, administrative costs do not
include premium taxes paid under Minnesota
Statutes, section 297I.05, subdivision 5, and
provider surcharges paid under Minnesota
Statutes, section 256.9657, subdivision 3.

(b) Notwithstanding any law to the contrary,
the commissioner may reduce or eliminate
administrative requirements to meet the
administrative target under paragraph (a).

(c) Notwithstanding any contrary provision
of this article, this rider shall not expire.

Hospital Payment Delay. Notwithstanding
Laws 2005, First Special Session chapter 4,
article 9, section 2, subdivision 6, payments
from the Medicaid Management Information
System that would otherwise have been made
for inpatient hospital services for medical
assistance enrollees are delayed as follows:
(1) for fiscal year 2008, June payments must
be included in the first payments in fiscal
year 2009; and (2) for fiscal year 2009,
June payments must be included in the first
payment of fiscal year 2010. The provisions
of Minnesota Statutes, section 16A.124,
do not apply to these delayed payments.
Notwithstanding any contrary provision in
this article, this paragraph expires on June
30, 2010.

(c) MA Basic Health Care Grants - Elderly and Disabled

(14,028,000)

(9,368,000)

Minnesota Disability Health Options Rate
Setting Methodology. The commissioner
shall develop and implement a methodology
for risk adjusting payments for community
alternatives for disabled individuals (CADI)
and traumatic brain injury (TBI) home
and community-based waiver services
delivered under the Minnesota disability
health options program (MnDHO) effective
January 1, 2009. The commissioner shall
take into account the weighting system used
to determine county waiver allocations in
developing the new payment methodology.
Growth in the number of enrollees receiving
CADI or TBI waiver payments through
MnDHO is limited to an increase of 200
enrollees in each calendar year from January
2009 through December 2011. If those limits
are reached, additional members may be
enrolled in MnDHO for basic care services
only as defined under Minnesota Statutes,
section 256B.69, subdivision 28, and the
commissioner may establish a waiting list for
future access of MnDHO members to those
waiver services.

MA Basic Elderly and Disabled
Adjustments. For the fiscal year ending June
30, 2009, the commissioner may adjust the
rates for each service affected by rate changes
under this section in such a manner across
the fiscal year to achieve the necessary cost
savings and minimize disruption to service
providers, notwithstanding the requirements
of Laws 2007, chapter 147, article 7, section
71.

(d) General Assistance Medical Care Grants

-0-

(6,971,000)

(e) Other Health Care Grants

-0-

(17,000)

MinnesotaCare Outreach Grants Special
Revenue Account. The balance in the
MinnesotaCare outreach grants special
revenue account on July 1, 2009, estimated
to be $900,000, must be transferred to the
general fund.

Grants Reduction. Effective July 1, 2008,
base level funding for nonforecast, general
fund health care grants issued under this
paragraph shall be reduced by 1.8 percent at
the allotment level.

Sec. 63.

Laws 2014, chapter 312, article 24, section 45, subdivision 2, is amended to
read:

Subd. 2.

Application for and terms of variance.

A new provider may apply to the
commissioner, on a form supplied by the commissioner for this purpose, for a variance
from special transportation service operating standards. The commissioner may grant or
deny the variance application. Variances expire on the earlier of February 1, 2016 2017, or
the date that the commissioner of transportation begins certifying new providers under the
terms of this act and successor legislation one year after the date the variance was issued.
The commissioner must not grant variances under this subdivision after June 30, 2016.

EFFECTIVE DATE.

This section is effective July 1, 2016.

Sec. 64. ADVISORY GROUP ON ADMINISTRATIVE EFFICIENCY AND
REGULATORY SIMPLIFICATION.

(a) The commissioner of health shall convene an advisory group on maximizing
administrative efficiency and regulatory simplification in state public health care
programs. The advisory group shall develop recommendations for consistent regulatory
and licensure requirements, guidelines, definitions, and reporting standards, including a
common standardized public reporting template for health maintenance organizations and
county-based purchasing plans that participate in state public health care programs. The
advisory group shall take into consideration relevant reporting standards of the National
Association of Insurance Commissioners and the Centers for Medicare and Medicaid
Services.

(b) The membership of the advisory group shall be comprised of the following:

(1) the commissioner of health or designee;

(2) the commissioner of human services or designee;

(3) the commissioner of commerce or designee;

(4) representatives of the health maintenance organizations and county-based
purchasing plans; and

(5) representatives of public and private health care experts and consumer
representatives, including at least one from a nonprofit organization with legal expertise
representing low-income consumers.

(c) The commissioner of health shall submit a report of the recommendations of the
advisory group to the chairs and ranking minority members of the legislative committees
with jurisdiction over state public health care programs by February 1, 2017.

(d) The advisory group shall expire the day after submitting the report required
under paragraph (c).

Sec. 65. STATEWIDE OPIOID PRESCRIBING IMPROVEMENT PROGRAM.

The commissioner of human services, in collaboration with the commissioner of
health, shall report to the legislature by December 1, 2015, on recommendations made
by the opioid prescribing work group under Minnesota Statutes, section 256B.0638,
subdivision 4, and steps taken by the commissioner of human services to implement the
opioid prescribing improvement program under Minnesota Statutes, section 256B.0638,
subdivision 5.

Sec. 66. TASK FORCE ON HEALTH CARE FINANCING.

Subdivision 1.

Task force.

(a) The governor shall convene a task force on health
care financing to advise the governor and legislature on strategies that will increase access
to and improve the quality of health care for Minnesotans. These strategies shall include
options for sustainable health care financing, coverage, purchasing, and delivery for all
insurance affordability programs, including MNsure, medical assistance, MinnesotaCare,
and individuals eligible to purchase coverage with federal advanced premium tax credits
and cost-sharing subsidies.

(b) The task force shall consist of:

(1) seven members appointed by the senate, four members appointed by the majority
leader of the senate, one of whom must be a legislator; and three members appointed by
the minority leader of the senate, one of whom must be a legislator;

(2) seven members of the house of representatives, four members appointed by the
speaker of the house, one of whom must be a legislator; and three members appointed by
the minority leader of the house of representatives, one of whom must be a legislator;

(3) 11 members appointed by the governor, including public and private health care
experts and consumer representatives. The consumer representatives must include one
member from a nonprofit organization with legal expertise representing low-income
consumers, at least one member from a broad-based nonprofit consumer advocacy
organization, and at least one member from an organization representing consumers of
color; and

(4) the commissioners of MNsure, commerce, and health, or their designees.

(c) The commissioner of human services and a member of the task force voted
by the task force shall serve as cochairs of the task force. The commissioner of human
services shall convene the first meeting and the members shall vote on the cochair position
at the first meeting.

Subd. 2.

Duties.

(a) The task force shall consider opportunities, including
alternatives to MNsure, options under section 1332 of the Patient Protection and Affordable
Care Act, and options under a section 1115 waiver of the Social Security Act, including:

(1) options for providing and financing seamless coverage for persons
otherwise eligible for insurance affordability programs, including medical assistance,
MinnesotaCare, and advanced premium tax credits used to purchase commercial
insurance. This includes, but is not limited to: alignment of eligibility and enrollment
requirements; smoothing consumer cost-sharing across programs; alignment and
alternatives to benefit sets; alternatives to the individual mandate; the employer mandate
and penalties; advanced premium tax credits; and qualified health plans;

(2) options for transforming health care purchasing and delivery, including, but not
limited to: expansion of value-based direct contracting with providers and other entities
to reward improved health outcomes and reduced costs, including selective contracting;
contracting to provide services to public programs and commercial products; and payment
models that support and reward coordination of care across the continuum of services
and programs;

(3) options for alignment, consolidation, and governance of certain operational
components, including, but not limited to: MNsure; program eligibility, enrollment, call
centers, and contracting; and the shared eligibility IT platform; and

(4) examining the impact of options on the health care workforce and delivery
system, including, but not limited to, rural and safety net providers, clinics, and hospitals.

(b) In development of the options in paragraph (a), the task force options and
recommendations shall include the following goals:

(1) seamless consumer experience across all programs;

(2) reducing barriers to accessibility and affordability of coverage;

(3) improving sustainable financing of health programs, including impact on the
state budget;

(4) assessing the impact of options for innovation on their potential to reduce
health disparities;

(5) expanding innovative health care purchasing and delivery systems strategies that
reduce cost and improve health;

(6) promoting effectively and efficiently aligning program resources and operations;
and

(7) increasing transparency and accountability of program operations.

Subd. 3.

Staff.

(a) The commissioner of human services shall provide staff and
administrative services for the task force. The commissioner may accept outside resources
to help support its efforts and shall leverage its existing vendor contracts to provide
technical expertise to develop options under subdivision 2. The commissioner of human
services shall receive expedited review and publication of competitive procurements for
additional vendor support needed to support the task force.

(b) Technical assistance shall be provided by the Departments of Health, Commerce,
Human Services, and Management and Budget.

Subd. 4.

Report.

The commissioner of human services shall submit
recommendations by January 15, 2016, to the governor and the chairs and ranking
minority members of the legislative committees with jurisdiction over health, human
services, and commerce policy and finance.

Subd. 5.

Expiration.

The task force expires the day after submitting the report
required under subdivision 4.

Sec. 67. HEALTH DISPARITIES PAYMENT ENHANCEMENT.

(a) The commissioner of human services shall develop a methodology to pay a
higher payment rate for health care providers and services that takes into consideration
the higher cost, complexity, and resources needed to serve patients and populations
who experience the greatest health disparities in order to achieve the same health and
quality outcomes that are achieved for other patients and populations. In developing
the methodology, the commissioner shall take into consideration all existing payment
methods and rates, including add-on or enhanced rates paid to providers serving high
concentrations of low-income patients or populations or providing access in underserved
regions or populations. The new methodology must not result in a net decrease in total
payment from all sources for those providers who qualify for additional add-on payments
or enhanced payments, including, but not limited to, critical access dental, community
clinic add-ons, federally qualified health centers payment rates, and disproportionate share
payments. The commissioner shall develop the methodology in consultation with affected
stakeholders, including communities impacted by health disparities, using culturally
appropriate methods of community engagement. The proposed methodology must include
recommendations for how the methodology could be incorporated into payment methods
used in both fee-for-service and managed care plans.

(b) The commissioner shall submit a report on the analysis and provide options
for new payment methodologies that incorporate health disparities to the chairs and
ranking minority members of the legislative committees with jurisdiction over health care
policy and finance by February 1, 2016. The scope of the report and the development
work described in paragraph (a) is limited to data currently available to the Department
of Human Services; analyses of the data for reliability and completeness; analyses of
how these data relate to health disparities, outcomes, and expenditures; and options for
incorporating these data or measures into a payment methodology.

Sec. 68. REPEALER.

(a) Minnesota Statutes 2014, sections 256.969, subdivisions 23 and 30; and 256B.69,
subdivision 32, are repealed and effective July 1, 2015.

(b) Minnesota Statutes 2014, sections 256L.02, subdivision 3; and 256L.05,
subdivisions 1b, 1c, 3c, and 5, are repealed and effective the day following final enactment.

(c) Minnesota Statutes 2014, section 256L.11, subdivision 7, is repealed and
effective July 1, 2015.

(d) Minnesota Rules, part 8840.5900, subparts 12 and 14, are repealed and effective
January 1, 2016.

ARTICLE 11

MNSURE

Section 1.

Minnesota Statutes 2014, section 15.01, is amended to read:

15.01 DEPARTMENTS OF THE STATE.

The following agencies are designated as the departments of the state government:
the Department of Administration; the Department of Agriculture; the Department of
Commerce; the Department of Corrections; the Department of Education; the Department
of Employment and Economic Development; the Department of Health; the Department
of Human Rights; the Department of Labor and Industry; the Department of Management
and Budget; the Department of Military Affairs; the Department of Natural Resources;
the Department of Public Safety; the Department of Human Services; the Department of
Revenue; the Department of Transportation; the Department of Veterans Affairs; the
Department of MNsure; and their successor departments.

Sec. 2.

Minnesota Statutes 2014, section 15A.0815, subdivision 2, is amended to read:

Subd. 2.

Group I salary limits.

The salary for a position listed in this subdivision
shall not exceed 133 percent of the salary of the governor. This limit must be adjusted
annually on January 1. The new limit must equal the limit for the prior year increased
by the percentage increase, if any, in the Consumer Price Index for all urban consumers
from October of the second prior year to October of the immediately prior year. The
commissioner of management and budget must publish the limit on the department's Web
site. This subdivision applies to the following positions:

Commissioner of administration;

Commissioner of agriculture;

Commissioner of education;

Commissioner of commerce;

Commissioner of corrections;

Commissioner of health;

Commissioner, Minnesota Office of Higher Education;

Commissioner, Housing Finance Agency;

Commissioner of human rights;

Commissioner of human services;

Commissioner of labor and industry;

Commissioner of management and budget;

Commissioner of MNsure;

Commissioner of natural resources;

Commissioner, Pollution Control Agency;

Executive director, Public Employees Retirement Association;

Commissioner of public safety;

Commissioner of revenue;

Executive director, State Retirement System;

Executive director, Teachers Retirement Association;

Commissioner of employment and economic development;

Commissioner of transportation; and

Commissioner of veterans affairs.

Sec. 3.

Minnesota Statutes 2014, section 62A.02, subdivision 2, is amended to read:

Subd. 2.

Approval.

(a) The health plan form shall not be issued, nor shall any
application, rider, endorsement, or rate be used in connection with it, until the expiration
of 60 days after it has been filed unless the commissioner approves it before that time.

(b) Notwithstanding paragraph (a), a rate filed with respect to a policy of accident and
sickness insurance as defined in section 62A.01 by an insurer licensed under chapter 60A,
may be used on or after the date of filing with the commissioner. Rates that are not approved
or disapproved within the 60-day time period are deemed approved. This paragraph does
not apply to Medicare-related coverage as defined in section 62A.3099, subdivision 17.

(c) For coverage to begin on or after January 1, 2016, and each January 1 thereafter,
health plans in the individual and small group markets that are not grandfathered plans to
be offered outside MNsure and qualified health plans to be offered inside MNsure must
receive rate approval from the commissioner no later than 30 days prior to the beginning
of the annual open enrollment period for MNsure. Premium rates for all carriers in the
applicable market for the next calendar year must be made available to the public by the
commissioner only after all rates for the applicable market are final and approved. Final
and approved rates must be publicly released at a uniform time for all individual and small
group health plans that are not grandfathered plans to be offered outside MNsure and
qualified health plans to be offered inside MNsure, and no later than 30 days prior to the
beginning of the annual open enrollment period for MNsure.

Sec. 4.

Minnesota Statutes 2014, section 62V.02, subdivision 2, is amended to read:

Subd. 2.

Board Commissioner.

"Board" "Commissioner" means the Board of
Directors commissioner of MNsure specified in section 62V.04.

Sec. 5.

Minnesota Statutes 2014, section 62V.02, is amended by adding a subdivision
to read:

Subd. 2a.

Consumer assistance partner.

"Consumer assistance partner" means
individuals and entities certified by the commissioner to serve as navigators, in-person
assisters, or certified application counselors.

Sec. 6.

Minnesota Statutes 2014, section 62V.02, subdivision 11, is amended to read:

Subd. 11.

Qualified health plan.

"Qualified health plan" means a health plan that
meets the definition in section 1301(a) of the Affordable Care Act, Public Law 111-148,
and has been certified by the board commissioner in accordance with section 62V.05,
subdivision 5, to be offered through MNsure.

Sec. 7.

Minnesota Statutes 2014, section 62V.03, is amended to read:

62V.03 MNSURE; ESTABLISHMENT.

Subdivision 1.

Creation.

MNsure is created as a board under section 15.012,
paragraph (a), department of the state government under section 15.01 to:

(1) promote informed consumer choice, innovation, competition, quality, value,
market participation, affordability, suitable and meaningful choices, health improvement,
care management, reduction of health disparities, and portability of health plans;

(2) facilitate and simplify the comparison, choice, enrollment, and purchase of
health plans for individuals purchasing in the individual market through MNsure and for
employees and employers purchasing in the small group market through MNsure;

(3) assist small employers with access to small business health insurance tax credits
and to assist individuals with access to public health care programs, premium assistance
tax credits and cost-sharing reductions, and certificates of exemption from individual
responsibility requirements;

(4) facilitate the integration and transition of individuals between public health care
programs and health plans in the individual or group market and develop processes that, to
the maximum extent possible, provide for continuous coverage; and

(5) establish and modify as necessary a name and brand for MNsure based on market
studies that show maximum effectiveness in attracting the uninsured and motivating
them to take action.

Subd. 2.

Application of other law.

(a) MNsure must be reviewed is subject to
audit by the legislative auditor under section 3.971. The legislative auditor shall audit
the books, accounts, and affairs of MNsure once each year or less frequently as the
legislative auditor's funds and personnel permit. Upon the audit of the financial accounts
and affairs of MNsure, MNsure is liable to the state for the total cost and expenses of the
audit, including the salaries paid to the examiners while actually engaged in making the
examination. The legislative auditor may bill MNsure either monthly or at the completion
of the audit. All collections received for the audits must be deposited in the general fund
and are appropriated to the legislative auditor. Pursuant to section 3.97, subdivision 3a,
the Legislative Audit Commission is requested to direct the legislative auditor to report by
March 1, 2014, to the legislature on any duplication of services that occurs within state
government as a result of the creation of MNsure. The legislative auditor may make
recommendations on consolidating or eliminating any services deemed duplicative. The
board shall reimburse the legislative auditor for any costs incurred in the creation of
this report.

(b) Board members of MNsure are subject to sections 10A.07 and 10A.09. Board
members and the personnel of MNsure are subject to section 10A.071.

(c) All meetings of the board shall comply with the open meeting law in chapter
13D, except that:

(1) meetings, or portions of meetings, regarding compensation negotiations with the
director or managerial staff may be closed in the same manner and according to the same
procedures identified in section 13D.03;

(2) meetings regarding contract negotiation strategy may be closed in the same
manner and according to the same procedures identified in section 13D.05, subdivision 3,
paragraph (c); and

(3) meetings, or portions of meetings, regarding not public data described in section
62V.06, subdivision 3, and regarding trade secret information as defined in section 13.37,
subdivision 1, paragraph (b), are closed to the public, but must otherwise comply with
the procedures identified in chapter 13D.

(d) (b) MNsure and provisions specified under this chapter are exempt from:

(1) chapter 14, including section , except as specified in section ; and

(2) chapters 16B and 16C, with the exception of sections 16C.08, subdivision
2, paragraph (b), clauses (1) to (8); 16C.086; 16C.09, paragraph (a), clauses (1) and
(3), paragraph (b), and paragraph (c); and section 16C.16. However, MNsure the
commissioner, in consultation with the commissioner of administration, shall implement
policies and procedures to establish an open and competitive procurement process
for MNsure that, to the extent practicable, conforms to the principles and procedures
contained in chapters 16B and 16C. In addition, MNsure the commissioner may enter into
an agreement with the commissioner of administration for other services.

(e) The board and (c) The Web site are is exempt from chapter 60K. Any employee
of MNsure who sells, solicits, or negotiates insurance to individuals or small employers
must be licensed as an insurance producer under chapter 60K.

(f) (d) Section 3.3005 applies to any federal funds received by MNsure.

(g) MNsure is exempt from the following sections in chapter 16E: 16E.01,
subdivision 3, paragraph (b); 16E.03, subdivisions 3 and 4; 16E.04, subdivision 1,
subdivision 2, paragraph (c), and subdivision 3, paragraph (b); 16E.0465; 16E.055;
16E.145; 16E.15; 16E.16; 16E.17; 16E.18; and 16E.22.

(h) A MNsure decision that requires a vote of the board, other than a decision that
applies only to hiring of employees or other internal management of MNsure, is an
"administrative action" under section 10A.01, subdivision 2.

Subd. 3.

Continued operation of a private marketplace.

(a) Nothing in this
chapter shall be construed to prohibit: (1) a health carrier from offering outside of MNsure
a health plan to a qualified individual or qualified employer; and (2) a qualified individual
from enrolling in, or a qualified employer from selecting for its employees, a health plan
offered outside of MNsure.

(b) Nothing in this chapter shall be construed to restrict the choice of a qualified
individual to enroll or not enroll in a qualified health plan or to participate in MNsure.
Nothing in this chapter shall be construed to compel an individual to enroll in a qualified
health plan or to participate in MNsure.

(c) For purposes of this subdivision, "qualified individual" and "qualified employer"
have the meanings given in section 1312 of the Affordable Care Act, Public Law 111-148,
and further defined through amendments to the act and regulations issued under the act.

Sec. 8.

[62V.041] GOVERNANCE OF THE SHARED ELIGIBILITY SYSTEM.

Subdivision 1.

Definition; shared eligibility system.

"Shared eligibility system"
means the system that supports eligibility determinations using a modified adjusted gross
income methodology for medical assistance under section 256B.056, subdivision 1a,
paragraph (b), clause (1); MinnesotaCare under chapter 256L; and qualified health plan
enrollment under section 62V.05, subdivision 5, paragraph (c).

Subd. 2.

Executive steering committee.

The shared eligibility system shall be
governed and administered by a seven-member executive steering committee. The
steering committee shall consist of two members appointed by the commissioner of
human services, two members appointed by the commissioner of MNsure, two members
appointed by the commissioner of MN.IT, and one county representative appointed by the
commissioner of human services. The commissioner of human services shall designate
one of the members appointed by the commissioner of human services to serve as the
chair of the steering committee.

Subd. 3.

Duties.

(a) The steering committee shall establish an overall governance
structure of the shared eligibility system, and shall be responsible for the overall
governance of the system, including setting goals and priorities, allocating the system's
resources, and making major system decisions.

(b) The steering committee shall adopt bylaws, policies, and interagency agreements
necessary to administer the shared eligibility system.

Subd. 4.

Decision making.

The steering committee, to the extent feasible, shall
operate under a consensus model. The steering committee shall make decisions that give
particular attention to parts of the system with the largest enrollments and the greatest risks.

Subd. 5.

Administrative structure.

MN.IT services shall be responsible for the
design, build, maintenance, operation, and upgrade of the information technology for the
shared eligibility system. MN.IT services shall carry out its responsibilities under the
governance of the executive steering committee and this section.

Sec. 9.

[62V.042] ADVISORY COMMITTEES.

Subdivision 1.

Advisory committees.

(a) The commissioner shall establish and
maintain advisory committees to provide insurance producers, health care providers, the
health care industry, consumers, and other stakeholders with the opportunity to advise the
commissioner regarding the operation of MNsure as required under section 1311(d)(6) of
the Affordable Care Act, Public Law 111-148. The commissioner shall regularly consult
with the advisory committees, and, at a minimum, convene each advisory committee at
least quarterly. The advisory committees established under this paragraph shall not expire.

(b) The commissioner, in consultation with the commissioner of human services,
shall establish an advisory committee to advise the commissioner on the MNsure
enrollment process. The committee must include:

(1) health care consumers who are enrollees in qualified health plans;

(2) individuals and entities with experience in facilitating enrollment in qualified
health plans;

(3) representatives of small employers and self-employed individuals;

(4) advocates for enrolling hard-to-reach populations; and

(5) other members, as determined by the commissioner or the commissioner of
human services.

The advisory committee established under this paragraph shall not expire, except by
action of the commissioner.

(c) The commissioner may establish additional advisory committees, as necessary,
to gather and provide information to the commissioner in order to facilitate the operation
of MNsure. The advisory committees established under this paragraph shall not expire,
except by action by the commissioner.

(d) Section 15.0597 shall not apply to any advisory committee established by the
commissioner under this subdivision.

(e) The commissioner may provide compensation and expense reimbursement under
section 15.059, subdivision 3, to members of the advisory committees.

(f) The advisory committees established under this subdivision are subject to the
Open Meeting Law in chapter 13D.

Sec. 10.

Minnesota Statutes 2014, section 62V.05, is amended to read:

62V.05 RESPONSIBILITIES AND POWERS OF MNSURE.

Subdivision 1.

General.

(a) The board commissioner shall operate MNsure
according to this chapter and applicable state and federal law.

(b) The board commissioner has the power to:

(1) employ personnel and delegate administrative, operational, and other
responsibilities to the director and other personnel as deemed appropriate by the board.
This authority is subject to chapters 43A and 179A. The director and managerial staff of
MNsure shall serve in the unclassified service and shall be governed by a compensation
plan prepared by the board, submitted to the commissioner of management and budget
for review and comment within 14 days of its receipt, and approved by the Legislative
Coordinating Commission and the legislature under section 3.855, except that section
15A.0815, subdivision 5, paragraph (e), shall not apply;

(2) establish the budget of MNsure;

(3) seek and accept money, grants, loans, donations, materials, services, or
advertising revenue from government agencies, philanthropic organizations, and public
and private sources to fund the operation of MNsure. No health carrier or insurance
producer shall advertise on MNsure;

(4) (2) contract for the receipt and provision of goods and services;

(5) (3) enter into information-sharing agreements with federal and state agencies
and other entities, provided the agreements include adequate protections with respect to
the confidentiality and integrity of the information to be shared, and comply with all
applicable state and federal laws, regulations, and rules, including the requirements of
section 62V.06; and

(6) (4) exercise all powers reasonably necessary to implement and administer the
requirements of this chapter and the Affordable Care Act, Public Law 111-148.

(c) The board commissioner shall establish policies and procedures to gather public
comment and provide public notice in the State Register.

(d) Within 180 days of enactment, the board shall establish bylaws, policies, and
procedures governing the operations of MNsure in accordance with this chapter.

Subd. 2.

Operations funding.

(a) Prior to January 1, 2015, MNsure shall retain or
collect up to 1.5 percent of total premiums for individual and small group market health
plans and dental plans sold through MNsure to fund the cash reserves of MNsure, but
the amount collected shall not exceed a dollar amount equal to 25 percent of the funds
collected under section 62E.11, subdivision 6, for calendar year 2012.

(b) Beginning January 1, 2015, MNsure shall retain or collect up to 3.5 percent of
total premiums for individual and small group market health plans and dental plans sold
through MNsure to fund the operations of MNsure, but the amount collected shall not
exceed a dollar amount equal to 50 percent of the funds collected under section 62E.11,
subdivision 6, for calendar year 2012.

(c) Beginning January 1, 2016, MNsure shall retain or collect up to 3.5 percent of
total premiums for individual and small group market health plans and dental plans sold
through MNsure to fund the operations of MNsure, but the amount collected may never
exceed a dollar amount greater than 100 percent of the funds collected under section
62E.11, subdivision 6, for calendar year 2012.

(d) For fiscal years 2014 and 2015, the commissioner of management and budget is
authorized to provide cash flow assistance of up to $20,000,000 from the special revenue
fund or the statutory general fund under section 16A.671, subdivision 3, paragraph (a),
to MNsure. Any funds provided under this paragraph shall be repaid, with interest, by
June 30, 2015.

(e) Funding for the operations of MNsure shall cover any compensation provided to
navigators participating in the navigator program.

Subd. 3.

Insurance producers.

(a) By April 30, 2013, The board commissioner, in
consultation with the commissioner of commerce, shall establish certification requirements
that must be met by insurance producers in order to assist individuals and small employers
with purchasing coverage through MNsure. Prior to January 1, 2015, the board may
amend the requirements, only if necessary, due to a change in federal rules.

(b) Certification requirements shall not exceed the requirements established
under Code of Federal Regulations, title 45, part 155.220. Certification shall include
training on health plans available through MNsure, available tax credits and cost-sharing
arrangements, compliance with privacy and security standards, eligibility verification
processes, online enrollment tools, and basic information on available public health care
programs. Training required for certification under this subdivision shall qualify for
continuing education requirements for insurance producers required under chapter 60K,
and must comply with course approval requirements under chapter 45.

(c) Producer compensation shall be established by health carriers that provide health
plans through MNsure. The structure of compensation to insurance producers must be
similar for health plans sold through MNsure and outside MNsure.

(d) Any insurance producer compensation structure established by a health carrier
for the small group market must include compensation for defined contribution plans that
involve multiple health carriers. The compensation offered must be commensurate with
other small group market defined health plans.

(e) Any insurance producer assisting an individual or small employer with purchasing
coverage through MNsure must disclose, orally and in writing, to the individual or small
employer at the time of the first solicitation with the prospective purchaser the following:

(1) the health carriers and qualified health plans offered through MNsure that the
producer is authorized to sell, and that the producer may not be authorized to sell all the
qualified health plans offered through MNsure;

(2) that the producer may be receiving compensation from a health carrier for
enrolling the individual or small employer into a particular health plan; and

(3) that information on all qualified health plans offered through MNsure is available
through the MNsure Web site.

For purposes of this paragraph, "solicitation" means any contact by a producer, or any
person acting on behalf of a producer made for the purpose of selling or attempting to sell
coverage through MNsure. If the first solicitation is made by telephone, the disclosures
required under this paragraph need not be made in writing, but the fact that disclosure
has been made must be acknowledged on the application.

(f) Beginning January 15, 2015, each health carrier that offers or sells qualified
health plans through MNsure shall report in writing to the board commissioner and the
commissioner of commerce the compensation and other incentives it offers or provides
to insurance producers with regard to each type of health plan the health carrier offers
or sells both inside and outside of MNsure. Each health carrier shall submit a report
annually and upon any change to the compensation or other incentives offered or provided
to insurance producers.

(g) Nothing in this chapter shall prohibit an insurance producer from offering
professional advice and recommendations to a small group purchaser based upon
information provided to the producer.

(h) An insurance producer that offers health plans in the small group market shall
notify each small group purchaser of which group health plans qualify for Internal
Revenue Service approved section 125 tax benefits. The insurance producer shall also
notify small group purchasers of state law provisions that benefit small group plans when
the employer agrees to pay 50 percent or more of its employees' premium. Individuals
who are eligible for cost-effective medical assistance will count toward the 75 percent
participation requirement in section 62L.03, subdivision 3.

(i) Nothing in this subdivision shall be construed to limit the licensure requirements
or regulatory functions of the commissioner of commerce under chapter 60K.

(j) The commissioners of human services and MNsure, upon federal approval, shall
establish an insurance producer incentive program to compensate insurance producers for
providing application enrollment assistance for public health care programs. The program
must include certification training standards for insurance producers seeking compensation
under the incentive program. The standards must meet the training modules specified under
Minnesota Rules, part 7700.0050, subpart 1. The amount of compensation to be paid to an
insurance producer under this program is established in section 256.962, subdivision 5.

Subd. 4.

Navigator; in-person assisters; call center.

(a) The board commissioner
shall establish policies and procedures for the ongoing operation of a navigator program,
in-person assister program, call center, and customer service provisions for MNsure to be
implemented beginning January 1, 2015.

(b) Until the implementation of the policies and procedures described in paragraph
(a), the following shall be in effect:

(1) the navigator program shall be met by section 256.962;

(2) entities eligible to be navigators, including entities defined in Code of Federal
Regulations, title 45, part 155.210 (c)(2), may serve as in-person assisters;

(3) The board commissioner shall establish requirements and compensation for
the navigator program and the in-person assister program by April 30, 2013. Entities
eligible to be navigators, including entities defined in Code of Federal Regulations, title
45, part 155.210(c)(2), may serve as in-person assisters. Compensation for navigators
and in-person assisters must take into account any other compensation received by the
navigator or in-person assister for conducting the same or similar services; and.

(4) (c) Call center operations shall utilize existing state resources and personnel,
including referrals to counties for medical assistance.

(c) (d) The board commissioner shall establish a toll-free number for MNsure and
may hire and contract for additional resources as deemed necessary.

(d) (e) The navigator program and in-person assister program must meet the
requirements of section 1311(i) of the Affordable Care Act, Public Law 111-148. In
establishing training standards for the navigators and in-person assisters, the board
commissioner must ensure that all entities and individuals carrying out navigator and
in-person assister functions have training in the needs of underserved and vulnerable
populations; eligibility and enrollment rules and procedures; the range of available public
health care programs and qualified health plan options offered through MNsure; and privacy
and security standards. For calendar year 2014, the commissioner of human services shall
ensure that the navigator program under section 256.962 provides application assistance
for both qualified health plans offered through MNsure and public health care programs.

(e) (f) The board commissioner must ensure that any information provided by
navigators, in-person assisters, the call center, or other customer assistance portals be
accessible to persons with disabilities and that information provided on public health
care programs include information on other coverage options available to persons with
disabilities.

Subd. 5.

Health carrier and health plan requirements; participation.

(a)
Beginning January 1, 2015, the board may establish certification requirements for health
carriers and health plans to be offered through MNsure that satisfy federal requirements
under section 1311(c)(1) of the Affordable Care Act, Public Law 111-148.

(b) Paragraph (a) does not apply if by June 1, 2013, the legislature enacts regulatory
requirements that:

(1) apply uniformly to all health carriers and health plans in the individual market;

(2) apply uniformly to all health carriers and health plans in the small group market;
and

(3) satisfy minimum federal certification requirements under section 1311(c)(1) of
the Affordable Care Act, Public Law 111-148.

(c) (a) In accordance with section 1311(e) of the Affordable Care Act, Public Law
111-148, the board commissioner shall establish policies and procedures for certification
and selection of health plans to be offered as qualified health plans through MNsure. The
board commissioner shall certify and select a health plan as a qualified health plan to
be offered through MNsure, if:

(1) the health plan meets the minimum certification requirements established in
paragraph (a) or the market state regulatory requirements in paragraph (b);

(2) the board commissioner determines that making the health plan available through
MNsure is in the interest of qualified individuals and qualified employers;

(3) the health carrier applying to offer the health plan through MNsure also applies
to offer health plans at each actuarial value level and service area that the health carrier
currently offers in the individual and small group markets; and

(4) the health carrier does not apply to offer health plans in the individual and
small group markets through MNsure under a separate license of a parent organization
or holding company under section 60D.15, that is different from what the health carrier
offers in the individual and small group markets outside MNsure.

(d) (b) In determining the interests of qualified individuals and employers under
paragraph (c) (a), clause (2), the board commissioner may not exclude a health plan for
any reason specified under section 1311(e)(1)(B) of the Affordable Care Act, Public Law
111-148. The board commissioner may consider:

(1) affordability;

(2) quality and value of health plans;

(3) promotion of prevention and wellness;

(4) promotion of initiatives to reduce health disparities;

(5) market stability and adverse selection;

(6) meaningful choices and access;

(7) alignment and coordination with state agency and private sector purchasing
strategies and payment reform efforts; and

(8) other criteria that the board commissioner determines appropriate.

(e) (c) For qualified health plans offered through MNsure on or after January 1, 2015
2017, the board commissioner shall establish policies and procedures under paragraphs (c)
and (d) in accordance with this subdivision for selection of health plans to be offered as
qualified health plans through MNsure by February 1 of each year, beginning February 1,
2014 2016. The board commissioner shall consistently and uniformly apply all policies
and procedures and any requirements, standards, or criteria to all health carriers and
health plans. For any policies, procedures, requirements, standards, or criteria that are
defined as rules under section 14.02, subdivision 4, the board commissioner may use
the process described in subdivision 9 8.

(f) For 2014, the board shall not have the power to select health carriers and health
plans for participation in MNsure. The board shall permit all health plans that meet the
certification requirements under section 1311(c)(1) of the Affordable Care Act, Public
Law 111-148, to be offered through MNsure.

(g) (d) Under this subdivision, the board commissioner shall have the power
to verify that health carriers and health plans are properly certified to be eligible for
participation in MNsure.

(h) (e) The board commissioner has the authority to decertify health carriers and
health plans that fail to maintain compliance with section 1311(c)(1) of the Affordable
Care Act, Public Law 111-148.

(i) (f) For qualified health plans offered through MNsure beginning January 1,
2015, health carriers must use the most current addendum for Indian health care providers
approved by the Centers for Medicare and Medicaid Services and the tribes as part of their
contracts with Indian health care providers. MNsure shall comply with all future changes
in federal law with regard to health coverage for the tribes.

Subd. 6.

Appeals.

(a) The board commissioner may conduct hearings, appoint
hearing officers, and recommend final orders related to appeals of any MNsure
determinations, except for those determinations identified in paragraph (d). An appeal by a
health carrier regarding a specific certification or selection determination made by MNsure
the commissioner under subdivision 5 must be conducted as a contested case proceeding
under chapter 14, with the report or order of the administrative law judge constituting the
final decision in the case, subject to judicial review under sections 14.63 to 14.69. For
other appeals, the board commissioner shall establish hearing processes which provide for
a reasonable opportunity to be heard and timely resolution of the appeal and which are
consistent with the requirements of federal law and guidance. An appealing party may be
represented by legal counsel at these hearings, but this is not a requirement.

(b) MNsure The commissioner may establish service-level agreements with state
agencies to conduct hearings for appeals. Notwithstanding section 471.59, subdivision
1, a state agency is authorized to enter into service-level agreements for this purpose
with MNsure the commissioner.

(c) For proceedings under this subdivision, MNsure may be represented by an
attorney who is an employee of MNsure.

(d) This subdivision does not apply to appeals of determinations where a state
agency hearing is available under section 256.045.

(e) An appellant aggrieved by an order of the commissioner issued in an eligibility
appeal, as defined in Minnesota Rules, part 7700.0101, may appeal the order to the
district court of the appellant's county of residence by serving a written copy of a notice
of appeal upon the commissioner and any other adverse party of record within 30 days
after the date the commissioner issued the order, the amended order, or order affirming
the original order, and by filing the original notice and proof of service with the court
administrator of the district court. Service may be made personally or by mail; service by
mail is complete upon mailing; no filing fee shall be required by the court administrator in
appeals taken pursuant to this subdivision. The commissioner shall furnish all parties to
the proceedings with a copy of the decision and a transcript of any testimony, evidence,
or other supporting papers from the hearing held before the appeals examiner within 45
days after service of the notice of appeal.

(f) Any party aggrieved by the failure of an adverse party to obey an order issued
by the commissioner may compel performance according to the order in the manner
prescribed in sections 586.01 to 586.12.

(g) Any party may obtain a hearing at a special term of the district court by serving a
written notice of the time and place of the hearing at least ten days prior to the date of
the hearing. The court may consider the matter in or out of chambers, and shall take no
new or additional evidence unless it determines that such evidence is necessary for a
more equitable disposition of the appeal.

(h) Any party aggrieved by the order of the district court may appeal the order as in
other civil cases. No costs or disbursements shall be taxed against any party nor shall any
filing fee or bond be required of any party.

(i) If the commissioner or district court orders eligibility for qualified health plan
coverage through MNsure, or eligibility for federal advance payment of premium tax
credits or cost-sharing reductions contingent upon full payment of respective premiums,
the premiums must be paid or provided pending appeal to the district court, Court of
Appeals, or Supreme Court. Provision of eligibility by the commissioner pending appeal
does not render moot the commissioner's position in a court of law.

Subd. 7.

Agreements; consultation.

(a) The board commissioner shall:

(1) establish and maintain an agreement with the chief information officer of the
Office of MN.IT Services for information technology services that ensures coordination
with public health care programs. The board may establish and maintain agreements
with the chief information officer of the Office of MN.IT Services for other information
technology services, including an agreement that would permit MNsure to administer
eligibility for additional health care and public assistance programs under the authority
of the commissioner of human services;

(2) (1) establish and maintain an agreement with the commissioner of human
services for cost allocation and services regarding eligibility determinations and
enrollment for public health care programs that use a modified adjusted gross income
standard to determine program eligibility. The board commissioner may establish and
maintain an agreement with the commissioner of human services for other services;

(3) (2) establish and maintain an agreement with the commissioners of commerce
and health for services regarding enforcement of MNsure certification requirements for
health plans and dental plans offered through MNsure. The board commissioner may
establish and maintain agreements with the commissioners of commerce and health for
other services; and

(4) (3) establish interagency agreements to transfer funds to other state agencies for
their costs related to implementing and operating MNsure, excluding medical assistance
allocatable costs.

(b) The board commissioner shall consult with the commissioners of commerce and
health regarding the operations of MNsure.

(c) The board commissioner shall consult with Indian tribes and organizations
regarding the operation of MNsure.

(d) Beginning March 15, 2014 2016, and each March 15 thereafter, the board
commissioner shall submit a report to the chairs and ranking minority members of the
committees in the senate and house of representatives with primary jurisdiction over
commerce, health, and human services on all the agreements entered into with the chief
information officer of the Office of MN.IT Services, or the commissioners of human
services, health, or commerce in accordance with this subdivision. The report shall include
the agency in which the agreement is with; the time period of the agreement; the purpose
of the agreement; and a summary of the terms of the agreement. A copy of the agreement
must be submitted to the extent practicable.

Subd. 8.

Rulemaking.

(a) If the board's policies, procedures, or other statements are
rules, as defined in section 14.02, subdivision 4, the requirements in either paragraph (b)
or (c) apply, as applicable.

(b) Effective upon enactment until January 1, 2015:

(1) the board shall publish notice of proposed rules in the State Register after
complying with section 14.07, subdivision 2;

(2) interested parties have 21 days to comment on the proposed rules. The board
must consider comments it receives. After the board has considered all comments and
has complied with section 14.07, subdivision 2, the board shall publish notice of the
final rule in the State Register;

(3) if the adopted rules are the same as the proposed rules, the notice shall state that
the rules have been adopted as proposed and shall cite the prior publication. If the adopted
rules differ from the proposed rules, the portions of the adopted rules that differ from the
proposed rules shall be included in the notice of adoption, together with a citation to the
prior State Register that contained the notice of the proposed rules; and

(4) rules published in the State Register before January 1, 2014, take effect upon
publication of the notice. Rules published in the State Register on and after January 1,
2014, take effect 30 days after publication of the notice.

(c) Beginning January 1, 2015, The board commissioner may adopt rules to
implement any provisions in this chapter using the expedited rulemaking process in
section 14.389.

(d) The notice of proposed rules required in paragraph (b) must provide information
as to where the public may obtain a copy of the rules. The board shall post the proposed
rules on the MNsure Web site at the same time the notice is published in the State Register.

Subd. 9.

Dental plans.

(a) The provisions of this section that apply to health plans
shall apply to dental plans offered as stand-alone dental plans through MNsure, to the
extent practicable.

(b) A stand-alone dental plan offered through MNsure must meet all certification
requirements under section 1311(c)(1) of the Affordable Care Act, Public Law 111-148,
that are applicable to health plans, except for certification requirements that cannot be met
because the dental plan only covers dental benefits.

Subd. 10.

Limitations; risk-bearing.

(a) The board MNsure shall not bear
insurance risk or and the commissioner shall not enter into any agreement with health care
providers to pay claims.

(b) Nothing in this subdivision shall prevent MNsure from providing insurance
for its employees.

Subd. 11.

Prohibition on other product lines.

(a) MNsure is prohibited, either
directly or through another agency or business partner, from certifying, selecting, or
offering products and policies of coverage other than qualified health plans or dental plans.

(b) This subdivision expires July 1, 2018.

Sec. 11.

Minnesota Statutes 2014, section 62V.06, is amended to read:

62V.06 DATA PRACTICES.

Subdivision 1.

Applicability.

MNsure is a state agency for purposes of the
Minnesota Government Data Practices Act and is subject to all provisions of chapter 13,
in addition to the requirements contained in this section.

Subd. 2.

Definitions.

As used in this section:

(1) "individual" means an individual according to section 13.02, subdivision 8, but
does not include a vendor of services; and

(2) "participating" means that an individual, employee, or employer is seeking, or
has sought an eligibility determination, enrollment processing, or premium processing
through MNsure.

Subd. 3.

General data classifications.

The following data collected, created, or
maintained by MNsure are classified as private data on individuals, as defined in section
13.02, subdivision 12, or nonpublic data, as defined in section 13.02, subdivision 9:

(1) data on any individual participating in MNsure;

(2) data on any individuals participating in MNsure as employees of an employer
participating in MNsure; and

(3) data on employers participating in MNsure.

Subd. 4.

Application and certification data.

(a) Data submitted by an insurance
producer in an application for certification to sell a health plan through MNsure, or
submitted by an applicant seeking permission or a commission to act as a navigator or
in-person assister, are classified as follows:

(1) at the time the application is submitted, all data contained in the application are
private data, as defined in section 13.02, subdivision 12, or nonpublic data as defined in
section 13.02, subdivision 9, except that the name of the applicant is public; and

(2) upon a final determination related to the application for certification by MNsure,
all data contained in the application are public, with the exception of trade secret data as
defined in section 13.37.

(b) Data created or maintained by a government entity as part of the evaluation of
an application are protected nonpublic data, as defined in section 13.02, subdivision 13,
until a final determination as to certification is made and all rights of appeal have been
exhausted. Upon a final determination and exhaustion of all rights of appeal, these data are
public, with the exception of trade secret data as defined in section 13.37 and data subject
to attorney-client privilege or other protection as provided in section 13.393.

(c) If an application is denied, the public data must include the criteria used by the
board commissioner to evaluate the application and the specific reasons for the denial,
and these data must be published on the MNsure Web site.

Subd. 5.

Data sharing.

(a) MNsure The commissioner may share or disseminate
data classified as private or nonpublic in subdivision 3 as follows:

(1) to the subject of the data, as provided in section 13.04;

(2) according to a court order;

(3) according to a state or federal law specifically authorizing access to the data;

(4) with other state or federal agencies, only to the extent necessary to verify the
identity of, determine the eligibility of, process premiums for, process enrollment of, or
investigate fraud related to an individual, employer, or employee participating in MNsure,
provided that MNsure the commissioner must enter into a data-sharing agreement with the
agency prior to sharing data under this clause; and

(5) with a nongovernmental person or entity, only to the extent necessary to verify
the identity of, determine the eligibility of, process premiums for, process enrollment
of, or investigate fraud related to an individual, employer, or employee participating in
MNsure, provided that MNsure the commissioner must enter into a contract with the
person or entity, as provided in section 13.05, subdivision 6 or 11, prior to disseminating
data under this clause.

(b) MNsure The commissioner may share or disseminate data classified as private
or nonpublic in subdivision 4 as follows:

(1) to the subject of the data, as provided in section 13.04;

(2) according to a court order;

(3) according to a state or federal law specifically authorizing access to the data;

(4) with other state or federal agencies, only to the extent necessary to carry out
the functions of MNsure, provided that MNsure the commissioner must enter into a
data-sharing agreement with the agency prior to sharing data under this clause; and

(5) with a nongovernmental person or entity, only to the extent necessary to carry
out the functions of MNsure, provided that MNsure the commissioner must enter a
contract with the person or entity, as provided in section 13.05, subdivision 6 or 11, prior
to disseminating data under this clause.

(c) Sharing or disseminating data outside of MNsure in a manner not authorized by
this subdivision is prohibited. The list of authorized dissemination and sharing contained
in this subdivision must be included in the Tennessen warning required by section 13.04,
subdivision 2.

(d) Until July 1, 2014, state agencies must share data classified as private or
nonpublic on individuals, employees, or employers participating in MNsure with MNsure,
only to the extent such data are necessary to verify the identity of, determine the eligibility
of, process premiums for, process enrollment of, or investigate fraud related to a MNsure
participant. The agency must enter into a data-sharing agreement with MNsure prior
to sharing any data under this paragraph.

Subd. 6.

Notice and disclosures.

(a) In addition to the Tennessen warning required
by section 13.04, subdivision 2, MNsure the commissioner must provide any data subject
asked to supply private data with:

(1) a notice of rights related to the handling of genetic information, pursuant to
section 13.386; and

(2) a notice of the records retention policy of MNsure, detailing the length of time
MNsure will retain data on the individual and the manner in which it will be destroyed
upon expiration of that time.

(b) All notices required by this subdivision, including the Tennessen warning, must
be provided in an electronic format suitable for downloading or printing.

Subd. 7.

Summary data.

In addition to creation and disclosure of summary data
derived from private data on individuals, as permitted by section 13.05, subdivision 7,
MNsure the commissioner may create and disclose summary data derived from data
classified as nonpublic under this section.

Subd. 8.

Access to data; audit trail.

(a) Only individuals with explicit authorization
from the board commissioner may enter, update, or access not public data collected,
created, or maintained by MNsure. The ability of authorized individuals to enter, update,
or access data must be limited through the use of role-based access that corresponds to
the official duties or training level of the individual, and the statutory authorization that
grants access for that purpose. All queries and responses, and all actions in which data
are entered, updated, accessed, or shared or disseminated outside of MNsure, must be
recorded in a data audit trail. Data contained in the audit trail are public, to the extent that
the data are not otherwise classified by this section.

The board commissioner shall immediately and permanently revoke the
authorization of any individual determined to have willfully entered, updated, accessed,
shared, or disseminated data in violation of this section, or any provision of chapter 13.
If an individual is determined to have willfully gained access to data without explicit
authorization from the board commissioner, the board commissioner shall forward the
matter to the county attorney for prosecution.

(b) This subdivision shall not limit or affect the authority of the legislative auditor
to access data needed to conduct audits, evaluations, or investigations of MNsure or the
obligation of the board commissioner and MNsure employees to comply with section
3.978, subdivision 2.

(c) This subdivision does not apply to actions taken by a MNsure participant to enter,
update, or access data held by MNsure, if the participant is the subject of the data that
is entered, updated, or accessed.

Subd. 9.

Sale of data prohibited.

MNsure The commissioner may not sell any
data collected, created, or maintained by MNsure, regardless of its classification, for
commercial or any other purposes.

Subd. 10.

Gun and firearm ownership.

MNsure The commissioner shall not
collect information that indicates whether or not an individual owns a gun or has a firearm
in the individual's home.

Sec. 12.

Minnesota Statutes 2014, section 62V.07, is amended to read:

62V.07 FUNDS.

(a) The MNsure account is created in the special revenue fund of the state treasury.
All funds received by MNsure shall be deposited in the account. Funds in the account are
appropriated to MNsure for the operation of MNsure. Notwithstanding section 11A.20, all
investment income and all investment losses attributable to the investment of the MNsure
account not currently needed, shall be credited to the MNsure account. All funds received
by MNsure shall be deposited in the state government special revenue fund.

(b) The budget submitted to the legislature under section 16A.11 must include
budget information for MNsure.

Sec. 13.

Minnesota Statutes 2014, section 62V.08, is amended to read:

62V.08 REPORTS.

(a) MNsure The commissioner shall submit a report to the legislature by January 15,
2015 2016, and each January 15 thereafter, on: (1) the performance of MNsure operations;
(2) meeting MNsure responsibilities; (3) an accounting of MNsure budget activities; (4)
practices and procedures that have been implemented to ensure compliance with data
practices laws, and a description of any violations of data practices laws or procedures;
and (5) the effectiveness of the outreach and implementation activities of MNsure in
reducing the rate of uninsurance.

(b) MNsure The commissioner must publish its administrative and operational costs
on a Web site to educate consumers on those costs. The information published must
include: (1) the amount of premiums and federal premium subsidies collected; (2) the
amount and source of revenue received under section 62V.05, subdivision 1, paragraph
(b), clause (3); (3) the amount and source of any other fees collected for purposes of
supporting operations; and (4) any misuse of funds as identified in accordance with section
3.975. The Web site must be updated at least annually.

Sec. 14.

Minnesota Statutes 2014, section 245C.10, is amended by adding a
subdivision to read:

Subd. 12.

MNsure consumer assistance partners.

The commissioner shall recover
the cost of background studies required under section 256.962, subdivision 9, through
a fee of no more than $20 per study. The fees collected under this subdivision are
appropriated to the commissioner for the purpose of conducting background studies.

Sec. 15.

Minnesota Statutes 2014, section 256.962, subdivision 5, is amended to read:

Subd. 5.

Incentive program.

Beginning January 1, 2008, the commissioner shall
establish an incentive program for organizations and licensed insurance producers under
chapter 60K community assistance partners defined under section 62V.02, subdivision
2a, that directly identify and assist potential enrollees in filling out and submitting an
application. For each applicant who is successfully enrolled in MinnesotaCare, or medical
assistance, or general assistance medical care, the commissioner, within the available
appropriation, shall pay the organization or licensed insurance producer community
assistance partner or insurance producer if the insurance producer has completed the
certification training program administered by the commissioner of MNsure in accordance
with section 62V.05, subdivision 3, paragraph (j), a $25 $70 application assistance bonus.
The organization or licensed insurance producer may provide an applicant a gift certificate
or other incentive upon enrollment.

Sec. 16.

Minnesota Statutes 2014, section 256.962, is amended by adding a subdivision
to read:

Subd. 9.

Background studies for consumer assistance partners.

All consumer
assistance partners, as defined in section 62V.02, subdivision 2a, are required to undergo a
background study according to the requirements of chapter 245C.

Sec. 17. EXPANDED ACCESS TO THE SMALL BUSINESS HEALTH CARE
TAX CREDIT.

(a) The commissioner of human services, in consultation with the commissioners
of commerce and MNsure, shall develop a proposal to allow small employers the ability
to receive the small business health care tax credit when the small employer pays the
premiums on behalf of employees enrolled in either a qualified health plan offered through
a small business health options program (SHOP) marketplace or a small group health plan
offered outside of the small business health options program marketplace within MNsure.
To be eligible for the tax credit, the small employer must meet the requirements under
the Affordable Care Act, except that employees may be enrolled in a small group health
plan product offered outside of MNsure.

(b) The commissioner of human services shall seek all federal waivers and approvals
necessary to implement this proposal. The commissioner shall submit a draft proposal
to the legislature at least 30 days before submitting a final proposal to the federal
government, and shall notify the legislature of any federal decision or action received
regarding the proposal and submitted waiver.

EFFECTIVE DATE.

This section is effective the day following final enactment.

Sec. 18. TRANSITION.

The Department of MNsure is a continuation of MNsure as it existed on June 30,
2015. Minnesota Statutes, section 15.039, applies. The chief executive officer of MNsure
on June 30, 2015, is the acting commissioner of MNsure on July 1, 2015, unless the
governor designates a different acting commissioner. Any advisory committee created
under Minnesota Statutes 2014, section 62V.04, subdivision 13, remains in effect, and
current members continue to serve until the end of their terms unless the commissioner
terminates a committee or replaces members.

Sec. 19. REPEALER.

Minnesota Statutes 2014, sections 62V.04; 62V.09; and 62V.11, are repealed.

ARTICLE 12

HEALTH AND HUMAN SERVICES APPROPRIATIONS

Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.

The sums shown in the columns marked "Appropriations" are appropriated to the
agencies and for the purposes specified in this article. The appropriations are from the
general fund, or another named fund, and are available for the fiscal years indicated
for each purpose. The figures "2016" and "2017" used in this article mean that the
appropriations listed under them are available for the fiscal year ending June 30, 2016, or
June 30, 2017, respectively. "The first year" is fiscal year 2016. "The second year" is fiscal
year 2017. "The biennium" is fiscal years 2016 and 2017.

			APPROPRIATIONS
			Available for the Year
			Ending June 30
				2016		2017

Sec. 2. COMMISSIONER OF HUMAN SERVICES

Subdivision 1. Total Appropriation

$

7,243,449,000

$

7,588,935,000

Appropriations by Fund
	2016	2017
General	6,333,550,000	6,609,885,000
State Government Special Revenue	4,514,000	4,274,000
Health Care Access	629,886,000	692,459,000
Federal TANF	273,606,000	280,421,000
Lottery Prize	1,893,000	1,896,000

Receipts for Systems Projects.
Appropriations and federal receipts for
information systems projects for MAXIS,
PRISM, MMIS, ISDS, and SSIS must
be deposited in the state systems account
authorized in Minnesota Statutes, section
256.014. Money appropriated for computer
projects approved by the commissioner
of the Office of MN.IT Services, funded
by the legislature, and approved by the
commissioner of management and budget
may be transferred from one project to
another and from development to operations
as the commissioner of human services
considers necessary. Any unexpended
balance in the appropriation for these
projects does not cancel but is available for
ongoing development and operations.

Nonfederal Share Transfers. The
nonfederal share of activities for which
federal administrative reimbursement is
appropriated to the commissioner may be
transferred to the special revenue fund.

TANF Maintenance of Effort. (a) In order
to meet the basic maintenance of effort
(MOE) requirements of the TANF block grant
specified under Code of Federal Regulations,
title 45, section 263.1, the commissioner may
only report nonfederal money expended for
allowable activities listed in the following
clauses as TANF/MOE expenditures:

(1) MFIP cash, diversionary work program,
and food assistance benefits under Minnesota
Statutes, chapter 256J;

(2) the child care assistance programs
under Minnesota Statutes, sections 119B.03
and 119B.05, and county child care
administrative costs under Minnesota
Statutes, section 119B.15;

(3) state and county MFIP administrative
costs under Minnesota Statutes, chapters
256J and 256K;

(4) state, county, and tribal MFIP
employment services under Minnesota
Statutes, chapters 256J and 256K;

(5) expenditures made on behalf of legal
noncitizen MFIP recipients who qualify for
the MinnesotaCare program under Minnesota
Statutes, chapter 256L;

(6) qualifying working family credit
expenditures under Minnesota Statutes,
section 290.0671; and

(7) qualifying Minnesota education credit
expenditures under Minnesota Statutes,
section 290.0674.

(b) The commissioner shall ensure that
sufficient qualified nonfederal expenditures
are made each year to meet the state's
TANF/MOE requirements. For the activities
listed in paragraph (a), clauses (2) to
(7), the commissioner may only report
expenditures that are excluded from the
definition of assistance under Code of
Federal Regulations, title 45, section 260.31.

(c) For fiscal years beginning with state fiscal
year 2003, the commissioner shall ensure
that the maintenance of effort used by the
commissioner of management and budget
for the February and November forecasts
required under Minnesota Statutes, section
16A.103, contains expenditures under
paragraph (a), clause (1), equal to at least 11
percent in fiscal years 2016 and 2017, and
16 percent beginning in 2018 of the total
required under Code of Federal Regulations,
title 45, section 263.1.

(d) The requirement in Minnesota Statutes,
section 256.011, subdivision 3, that federal
grants or aids secured or obtained under that
subdivision be used to reduce any direct
appropriations provided by law, does not
apply if the grants or aids are federal TANF
funds.

(e) For the federal fiscal years beginning on
or after October 1, 2007, the commissioner
may not claim an amount of TANF/MOE in
excess of the 75 percent standard in Code
of Federal Regulations, title 45, section
263.1(a)(2), except:

(1) to the extent necessary to meet the 80
percent standard under Code of Federal
Regulations, title 45, section 263.1(a)(1),
if it is determined by the commissioner
that the state will not meet the TANF work
participation target rate for the current year;

(2) to provide any additional amounts
under Code of Federal Regulations, title 45,
section 264.5, that relate to replacement of
TANF funds due to the operation of TANF
penalties; and

(3) to provide any additional amounts that
may contribute to avoiding or reducing
TANF work participation penalties through
the operation of the excess MOE provisions
of Code of Federal Regulations, title 45,
section 261.43(a)(2).

For the purposes of clauses (1) to (3),
the commissioner may supplement the
MOE claim with working family credit
expenditures or other qualified expenditures
to the extent such expenditures are otherwise
available after considering the expenditures
allowed in this subdivision, subdivision 2,
and subdivision 3.

(f) Notwithstanding any contrary provision
in this article, paragraphs (a) to (e) expire
June 30, 2019.

Working Family Credit Expenditure
as TANF/MOE. The commissioner may
claim as TANF maintenance of effort up to
$6,707,000 per year of working family credit
expenditures in each fiscal year.

Subd. 2. Working Family Credit to be Claimed for TANF/MOE

The commissioner may count the following
additional amounts of working family credit
expenditures as TANF maintenance of effort:

(1) fiscal year 2016, $0;

(2) fiscal year 2017, $1,283,000;

(3) fiscal year 2018, $0; and

(4) fiscal year 2019, $0.

Notwithstanding any contrary provision in
this article, this subdivision expires June 30,
2019.

Subd. 3. TANF Transfer To Federal Child Care and Development Fund

(a) The following TANF fund amounts
are appropriated to the commissioner for
purposes of MFIP/transition year child care
assistance under Minnesota Statutes, section
119B.05:

(1) fiscal year 2016, $49,235,000;

(2) fiscal year 2017, $51,532,000;

(3) fiscal year 2018, $49,658,000; and

(4) fiscal year 2019, $49,658,000.

(b) The commissioner shall authorize the
transfer of sufficient TANF funds to the
federal child care and development fund to
meet this appropriation and shall ensure that
all transferred funds are expended according
to federal child care and development fund
regulations.

Subd. 4. Central Office

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

(a) Operations

Appropriations by Fund
General	114,038,000	111,936,000
State Government Special Revenue	4,389,000	4,149,000
Health Care Access	14,646,000	13,751,000
Federal TANF	100,000	100,000

MN.IT Reimbursement. The Office
of MN.IT Services shall reimburse the
commissioner of human services $7,200,000
in fiscal year 2016 for excess billings for
shared information technology services.

Return on Taxpayer Investment Study.
$156,000 in fiscal year 2016 and $156,000
in fiscal year 2017 are to the commissioner
of human services for transfer to the
commissioner of management and budget to
develop and implement a return on taxpayer
investment (ROTI) methodology using the
Pew-MacArthur Results First framework
to evaluate corrections and human services
programs administered and funded by state
and county governments. The commissioner
shall engage and work with staff from
Pew-MacArthur Results First and shall
consult with representatives of other state
agencies, counties, legislative staff, the
commissioners of corrections and human
services, and other commissioners of state
agencies and stakeholders to implement the
established methodology. The commissioner
of management and budget shall report
on implementation progress and make
recommendations to the governor and
legislature by January 31, 2017.

Administrative Recovery; Set-Aside. The
commissioner may invoice local entities
through the SWIFT accounting system as an
alternative means to recover the actual cost
of administering the following provisions:

(1) Minnesota Statutes, section 125A.744,
subdivision 3;

(2) Minnesota Statutes, section 245.495,
paragraph (b);

(3) Minnesota Statutes, section 256B.0625,
subdivision 20, paragraph (k);

(4) Minnesota Statutes, section 256B.0924,
subdivision 6, paragraph (g);

(5) Minnesota Statutes, section 256B.0945,
subdivision 4, paragraph (d); and

(6) Minnesota Statutes, section 256F.10,
subdivision 6, paragraph (b).

IT Appropriations Generally. This
appropriation includes funds for information
technology projects, services, and support.
Notwithstanding Minnesota Statutes,
section 16E.0466, funding for information
technology project costs shall be incorporated
into the service level agreement and paid
to the Office of MN.IT Services by the
Department of Human Services under
the rates and mechanism specified in that
agreement.

Continued Development of MNsure
IT System. The following amounts are
appropriated for transfer to the state systems
account under Minnesota Statutes, section
256.014:

(1) $5,180,000 in fiscal year 2016 and
$2,590,000 in fiscal year 2017 are from
the general fund for the state share of
Medicaid-allocated costs for the acceleration
of the MNsure IT system development
project. The general fund base is $3,045,000
each year in fiscal years 2018 and 2019; and

(2) $1,820,000 in fiscal year 2016 and
$910,000 in fiscal year 2017 are from the
health care access fund for the state share
of MinnesotaCare-allocated costs for the
acceleration of the MNsure IT system
development project. The health care access
fund base is $455,000 each year in fiscal
years 2018 and 2019.

Base Level Adjustment. The general fund
base is increased by $473,000 in fiscal years
2018 and 2019. The health care access fund
base is decreased by $455,000 in fiscal years
2018 and 2019.

(b) Children and Families

Appropriations by Fund
General	10,057,000	9,958,000
Federal TANF	2,582,000	2,582,000

Financial Institution Data Match and
Payment of Fees. The commissioner is
authorized to allocate up to $310,000 each
year in fiscal year 2016 and fiscal year
2017 from the PRISM special revenue
account to make payments to financial
institutions in exchange for performing
data matches between account information
held by financial institutions and the public
authority's database of child support obligors
as authorized by Minnesota Statutes, section
13B.06, subdivision 7.

Of the general fund appropriation, $392,000
in fiscal year 2016 and $453,000 in fiscal year
2017 are for the Ombudsperson for Families.

Base Level Adjustment. The general fund
base is increased by $31,000 in fiscal years
2018 and 2019.

(c) Health Care

Appropriations by Fund
General	16,278,000	16,680,000
Health Care Access	30,674,000	30,216,000

Task Force. Of the health care access fund
appropriation, $500,000 in fiscal year 2016 is
for administrative services and support to the
Task Force on Health Care Financing. This
is a onetime appropriation.

Base Level Adjustment. The general fund
base is decreased by $148,000 in fiscal year
2018 and is decreased by $246,000 in fiscal
year 2019. The health care access fund base
is increased by $1,740,000 in fiscal year
2018 only.

(d) Continuing Care

Appropriations by Fund
General	31,339,000	29,036,000
State Government Special Revenue	125,000	125,000

Training of Direct Support Services
Providers. $250,000 in fiscal year 2017
is appropriated for training of individual
providers of direct support services as defined
in Minnesota Statutes, section 256B.0711,
subdivision 1. This appropriation is only
available if the labor agreement between
the state of Minnesota and the Service
Employees International Union Healthcare
Minnesota under Minnesota Statutes, section
179A.54, is approved under Minnesota
Statutes, sections 3.855 and 179A.22.

Base Level Adjustment. The general fund
base is increased by $286,000 in fiscal year
2018 and $226,000 in fiscal year 2019.

(e) Chemical and Mental Health

Appropriations by Fund
General	6,958,000	7,240,000
Lottery Prize	160,000	163,000

Base Level Adjustment. The general fund
base is decreased by $301,000 in fiscal year
2018 and is decreased by $353,000 in fiscal
year 2019.

Subd. 5. Forecasted Programs

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

(a) MFIP/DWP

Appropriations by Fund
General	90,182,000	93,975,000
Federal TANF	115,102,000	119,620,000

(b) MFIP Child Care Assistance

101,541,000

109,263,000

(c) General Assistance

55,117,000

57,847,000

General Assistance Standard. The
commissioner shall set the monthly standard
of assistance for general assistance units
consisting of an adult recipient who is
childless and unmarried or living apart
from parents or a legal guardian at $203.
The commissioner may reduce this amount
according to Laws 1997, chapter 85, article
3, section 54.

Emergency General Assistance. The
amount appropriated for emergency
general assistance is limited to no more
than $6,729,812 in fiscal year 2016 and
$6,729,812 in fiscal year 2017. Funds
to counties shall be allocated by the
commissioner using the allocation method
under Minnesota Statutes, section 256D.06.

(d) Minnesota Supplemental Aid

39,668,000

41,169,000

(e) Group Residential Housing

155,753,000

167,194,000

(f) Northstar Care for Children

41,096,000

46,337,000

(g) MinnesotaCare

383,064,000

433,941,000

This appropriation is from the health care
access fund.

(h) Medical Assistance

Appropriations by Fund
General	4,896,473,000	5,145,071,000
Health Care Access	196,586,000	208,404,000

Critical Access Nursing Facilities.
$1,500,000 each fiscal year is for critical
access nursing facilities under Minnesota
Statutes, section 256B.441, subdivision 63.

Behavioral Health Services. $1,000,000
each fiscal year is for behavioral health
services provided by hospitals identified
under Minnesota Statutes, section 256.969,
subdivision 2b, paragraph (a), clause (4).
The increase in payments shall be made by
increasing the adjustment under Minnesota
Statutes, section 256.969, subdivision 2b,
paragraph (e), clause (2).

(i) Alternative Care

43,997,000

43,222,000

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

(j) Chemical Dependency Treatment Fund

83,210,000

86,639,000

Subd. 6. Grant Programs

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

(a) Support Services Grants

Appropriations by Fund
General	13,258,000	8,840,000
Federal TANF	96,311,000	96,311,000

Base Level Adjustment. The general fund
base is increased by $227,000 in fiscal years
2018 and 2019.

(b) Basic Sliding Fee Child Care Assistance Grants

56,216,000

56,623,000

Basic Sliding Fee Waiting List Allocation.
Notwithstanding Minnesota Statutes, section
119B.03, $10,000,000 in fiscal year 2016
is to reduce the basic sliding fee program
waiting list as follows:

(1) The calendar year 2016 allocation shall
be increased to serve families on the waiting
list. To receive funds appropriated for this
purpose, a county must have:

(i) a waiting list in the most recent published
waiting list month;

(ii) an average of at least ten families on the
most recent six months of published waiting
list; and

(iii) total expenditures in calendar year
2014 that met or exceeded 80 percent of the
county's available final allocation.

(2) Funds shall be distributed proportionately
based on the average of the most recent six
months of published waiting lists to counties
that meet the criteria in clause (1).

(3) Allocations in calendar years 2017
and beyond shall be calculated using the
allocation formula in Minnesota Statutes,
section 119B.03.

(4) The guaranteed floor for calendar year
2017 shall be based on the revised calendar
year 2016 allocation.

Base Level Adjustment. The general fund
base is increased by $2,481,000 in fiscal year
2018 and increased by $2,493,000 in fiscal
year 2019.

(c) Child Care Development Grants

1,737,000

1,737,000

(d) Child Support Enforcement Grants

50,000

50,000

(e) Children's Services Grants

Appropriations by Fund
General	39,750,000	39,600,000
Federal TANF	140,000	140,000

Safe Place for Newborns. $150,000 from
the general fund in fiscal year 2016 is to
distribute information on the Safe Place
for Newborns law in Minnesota to increase
public awareness of the law. This is a
onetime appropriation.

Child Protection. $22,000,000 in fiscal
years 2016 and 2017 is to address child
protection staffing and services under
Minnesota Statutes, section 256M.41. The
base for this purpose is $12,000,000 each
year. $3,000,000 in fiscal years 2016 and
2017 is for child protection supportive
services under Minnesota Statutes, section
256M.42.

Title IV-E Adoption Assistance. Additional
federal reimbursement to the state as a result
of the Fostering Connections to Success
and Increasing Adoptions Act's expanded
eligibility for title IV-E adoption assistance
are appropriated to the commissioner
for postadoption services, including a
parent-to-parent support network.

Adoption Assistance Incentive Grants.
Federal funds available during fiscal years
2016 and 2017 for adoption incentive
grants are appropriated to the commissioner
for postadoption services, including a
parent-to-parent support network.

Base Level Adjustment. The general fund
base is decreased by $9,135,000 in fiscal
years 2018 and 2019.

(f) Children and Community Service Grants

57,701,000

57,701,000

White Earth Band of Ojibwe Human
Services. $1,400,000 in fiscal year 2016 and
$1,400,000 in fiscal year 2017 are for a grant
to the White Earth Band of Ojibwe for the
direct implementation and administrative
costs of the White Earth transfer authorized
under Laws 2011, First Special Session
chapter 9, article 9, section 18. This
appropriation is added to the base.

(g) Children and Economic Support Grants

26,423,000

26,305,000

Healthy Eating Here at Home. $183,000 in
fiscal year 2016 and $193,000 in fiscal year
2017 are for the healthy eating here at home
program.

Homeless Youth Act. Of this appropriation,
at least $500,000 must be awarded to
providers in greater Minnesota, with at least
25 percent of this amount for new applicant
providers. The commissioner shall provide
outreach and technical assistance to greater
Minnesota providers and new providers to
encourage responding to the request for
proposals.

Stearns County Administrative Funding.
$26,000 in fiscal year 2016 and $26,000
in fiscal year 2017 are for a grant to
Stearns County to provide administrative
funding in support of a service provider
serving veterans in Stearns County. The
administrative funding grant may be used to
support group residential housing services,
corrections-related services, veteran services,
and other social services related to the service
provider serving veterans in Stearns County.
This is a onetime appropriation.

Transitional Housing. $321,000 in
fiscal year 2016 is for a grant to an
organization in Ramsey County that
serves African American males who are
experiencing or have experienced some
degree of homelessness. The organization
must provide a comprehensive program,
including services, education, skills training,
and housing, to transition clients from
homelessness to stability in both housing and
employment. The grant under this section is
for transitional housing for up to 34 men who
participate in the program. This is a onetime
appropriation.

Minnesota Food Assistance Program.
Unexpended funds for the Minnesota food
assistance program for fiscal year 2016 do
not cancel but are available for this purpose
in fiscal year 2017.

Base Level Adjustment. The general fund
base is increased by $183,000 in fiscal year
2018 and is increased by $421,000 in fiscal
year 2019.

(h) Health Care Grants

Appropriations by Fund
General	1,932,000	2,904,000
Health Care Access	3,341,000	3,465,000

Base Level Adjustment. The general fund
base is increased by $783,000 in fiscal year
2018 and increased by $354,000 in fiscal
year 2019.

(i) Other Long-Term Care Grants

2,306,000

2,480,000

Transition Populations. $1,551,000 in fiscal
year 2016 and $1,725,000 in fiscal year 2017
are for home and community-based services
transition grants to assist in providing home
and community-based services and treatment
for transition populations under Minnesota
Statutes, section 256.478.

Base Level Adjustment. The general fund
base is decreased by $5,000 in fiscal years
2018 and 2019.

(j) Aging and Adult Services Grants

27,838,000

27,537,000

Base Level Adjustment. The general fund
base is increased by $75,000 in fiscal years
2018 and 2019.

(k) Deaf and Hard-of-Hearing Grants

1,875,000

1,875,000

(l) Disabilities Grants

20,247,000

20,258,000

(m) Adult Mental Health Grants

Appropriations by Fund
General	69,027,000	69,075,000
Health Care Access	1,575,000	2,682,000
Lottery Prize	1,733,000	1,733,000

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

Culturally Specific Mental Health
Services. $100,000 in fiscal year 2016 is for
grants to nonprofit organizations to provide
resources and referrals for culturally specific
mental health services to Southeast Asian
veterans born before 1965 who do not qualify
for services available to veterans formally
discharged from the United States armed
forces.

Problem Gambling. $225,000 in fiscal year
2016 and $225,000 in fiscal year 2017 are
appropriated from the lottery prize fund for a
grant to the state affiliate recognized by the
National Council on Problem Gambling. The
affiliate must provide services to increase
public awareness of problem gambling,
education, and training for individuals and
organizations providing effective treatment
services to problem gamblers and their
families, and research related to problem
gambling.

Sustainability Grants. $2,125,000 in fiscal
year 2016 and $2,125,000 in fiscal year 2017
are for sustainability grants under Minnesota
Statutes, section 256B.0622, subdivision 11.

Base Level Adjustment. The general fund
base is increased by $2,245,000 in fiscal year
2018 and is increased by $2,545,000 in fiscal
year 2019. The health care access fund base
is decreased by $1,932,000 in fiscal years
2018 and 2019.

(n) Child Mental Health Grants

22,421,000

22,853,000

Services and Supports for First Episode
Psychosis. $90,000 in fiscal year 2017 is
for grants under Minnesota Statutes, section
245.4889, to mental health providers to pilot
evidence-based interventions for youth at risk
of developing or experiencing a first episode
of psychosis and for a public awareness
campaign on the signs and symptoms of
psychosis. The base for these grants is
$160,000 in fiscal year 2018 and $225,000 in
fiscal year 2019.

Adverse Childhood Experiences. $363,000
in fiscal year 2018 and $363,000 in fiscal year
2019 are for grants under Minnesota Statutes,
section 245.4889, to children's mental
health and family services collaboratives
for adverse childhood experiences (ACEs)
training grants and for an interactive Web site
connection to support ACEs in Minnesota.

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

Base Level Adjustment. The general fund
base is increased by $235,000 in fiscal year
2018 and is increased by $600,000 in fiscal
year 2019.

(o) Chemical Dependency Treatment Support Grants

1,701,000

1,701,000

Fetal Alcohol Syndrome Grants. $540,000
in fiscal year 2016 and $540,000 in fiscal year
2017 are for grants to be administered by the
Minnesota Organization on Fetal Alcohol
Syndrome to provide comprehensive,
gender-specific, services to pregnant and
parenting women suspected of or known
to use or abuse alcohol or other drugs.
This appropriation is for grants to no fewer
than three eligible recipients. Minnesota
Organization on Fetal Alcohol Syndrome
must report to the commissioner of human
services annually by January 15 on the
grants funded by this appropriation. The
report must include measurable outcomes for
the previous year, including the number of
pregnant women served and the number of
toxic-free babies born.

Subd. 7. DCT State-Operated Services

Transfer Authority for State-Operated
Services. Money appropriated for
state-operated services may be transferred
between fiscal years of the biennium
with the approval of the commissioner of
management and budget.

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

(a) DCT State-Operated Services Mental Health

129,009,000

126,467,000

Child and Adolescent Behavioral Health
Services Program Closure. Closure of the
Child and Adolescent Behavioral Health
Services Inpatient Hospital in Willmar shall
not occur prior to June 30, 2016.

Transfer. Notwithstanding Minnesota
Statutes, section 246.18, subdivision 8,
the commissioner of human services shall
transfer $2,000,000 in fiscal year 2017 from
the account under Minnesota Statutes, section
246.18, subdivision 8, in the special revenue
fund to the general fund. This is a onetime
transfer for repeal of never implemented
grants for mental health specialty treatment
services.

Dedicated Receipts Available. Of the
revenue received under Minnesota Statutes,
section 246.18, subdivision 8, paragraph
(a), up to $1,000,000 each year is available
for the purposes of Minnesota Statutes,
section 246.18, subdivision 8, paragraph (b),
clause (1); and up to $2,713,000 each year
is available for the purposes of Minnesota
Statutes, section 246.18, subdivision 8,
paragraph (b), clause (3).

Transfers from State-Operated Services
Account. (a) If the commissioner of
human services notifies the commissioner
of management and budget by July 31,
2015, that the fiscal year 2015 general
fund expenditures exceed the general fund
appropriation for state-operated services
mental health to the Department of Human
Services, notwithstanding Minnesota
Statutes, section 246.18, subdivision 8,
the commissioner of human services,
with the approval of the commissioner of
management and budget, shall transfer up
to $1,000,000 in fiscal year 2015 from the
account under Minnesota Statutes, section
246.18, subdivision 8, in the special revenue
fund to the general fund. The amount
transferred under this paragraph must
not exceed the amount of the fiscal year
2015 negative balance in the general fund
appropriation for state-operated services
mental health to the Department of Human
Services. The amount transferred under
this paragraph, up to $1,000,000 in fiscal
year 2015, is appropriated from the general
fund to the commissioner of human services
for state-operated services mental health
expenditures. This paragraph is effective the
day following final enactment and expires
on October 1, 2015. Any amount transferred
under this paragraph that is not expended
by September 30, 2015, shall cancel to
the account from which the amount was
transferred.

(b) If the commissioner of human services
notifies the commissioner of management
and budget by July 31, 2015, that the
balance in fiscal year 2015 in the Minnesota
state-operated community services fund is a
negative amount, notwithstanding Minnesota
Statutes, section 246.18, subdivision 8, the
commissioner of human services, with the
approval of the commissioner of management
and budget, shall transfer up to $3,200,000
in fiscal year 2015 from the account
under Minnesota Statutes, section 246.18,
subdivision 8, in the special revenue fund
to the Minnesota state-operated community
services fund. The amount transferred under
this paragraph must not exceed the amount
of the fiscal year 2015 negative balance in
the Minnesota state-operated community
services fund. This paragraph is effective the
day following final enactment and expires
on October 1, 2015. Any amount transferred
under this paragraph that is not expended
by September 30, 2015, shall cancel to
the account from which the amount was
transferred.

Appropriations Retroactive to Fiscal Year
2015. If the commissioner of human services
notifies the commissioner of management and
budget by July 31, 2015, that the fiscal year
2015 general fund expenditures exceed the
general fund appropriation for state-operated
services mental health to the Department of
Human Services, up to $5,000,000 of this
appropriation in fiscal year 2016 may be
used in fiscal year 2015 for state-operated
services mental health expenditures. The
commissioner of human services must
report to the commissioner of management
and budget the purpose and amount of any
expenditures under this paragraph, and the
commissioner of management and budget
must approve the total amount attributable to
this paragraph. This paragraph is effective
the day following final enactment and expires
on October 1, 2015.

Base Level Adjustment. The general fund
base is decreased by $1,074,000 in fiscal
years 2018 and 2019.

(b) DCT State-Operated Services Enterprise Services

8,058,000

5,615,000

Transfers from Consolidated Chemical
Dependency Treatment Fund. (a) If the
commissioner of human services notifies the
commissioner of management and budget by
July 31, 2015, that the balance in fiscal year
2015 in the community addiction recovery
enterprise fund is a negative amount,
notwithstanding Minnesota Statutes, section
254B.06, subdivision 1, the commissioner
of human services, with the approval of the
commissioner of management and budget,
shall transfer $2,000,000 in fiscal year 2015
from the consolidated chemical dependency
treatment fund account in the special revenue
fund to the community addiction recovery
enterprise fund. The amount transferred
under this paragraph must not exceed the
amount of the fiscal year 2015 negative
balance in the community addiction recovery
enterprise fund. This paragraph is effective
the day following final enactment and expires
on October 1, 2015. Any amount transferred
under this paragraph that is not expended
by September 30, 2015, shall cancel to
the account from which the amount was
transferred.

(b) If the commissioner of human services
notifies the commissioner of management
and budget by July 31, 2015, that the
fiscal year 2015 general fund expenditures
exceed the general fund appropriation
for state-operated services mental health
to the Department of Human Services,
notwithstanding Minnesota Statutes, section
254B.06, subdivision 1, the commissioner
of human services, with the approval of the
commissioner of management and budget,
shall transfer $1,500,000 in fiscal year 2015
from the consolidated chemical dependency
treatment fund account in the special revenue
fund to the general fund. $1,500,000 in
fiscal year 2015 is appropriated from the
general fund to the commissioner of human
services for state-operated services mental
health expenditures. The amount transferred
under this paragraph must not exceed the
amount of the fiscal year 2015 negative
balance in the general fund appropriation
for state-operated services mental health to
the Department of Human Services. This
paragraph is effective the day following final
enactment and expires on October 1, 2015.
Any amount transferred under this paragraph
that is not expended by September 30, 2015,
shall cancel to the account from which the
amount was transferred.

(c) DCT State-Operated Services Minnesota Security Hospital

81,821,000

83,233,000

Base Level Adjustment. The general fund
base is increased by $17,000 in fiscal year
2018 and $34,000 in fiscal year 2019.

Subd. 8. DCT Minnesota Sex Offender Program

86,473,000

89,464,000

Individual Evaluations of MSOP Client.
$1,487,000 in fiscal year 2016 and $1,487,000
in fiscal year 2017 are to conduct biennial
individual evaluations of MSOP clients on
statutory criteria for reduction in custody.
This appropriation is added to the base.

Transfer Authority for Minnesota Sex
Offender Program. Money appropriated
for the Minnesota sex offender program
may be transferred between fiscal years
of the biennium with the approval of the
commissioner of management and budget.

Limited Carryforward Allowed.
Notwithstanding any contrary provision
in this article, of this appropriation, up to
$875,000 in fiscal year 2016 and $2,625,000
in fiscal year 2017 are available until June
30, 2019.

Minnesota Sex Offender Program. Any
funds from the appropriation made by Laws
2014, chapter 312, article 30, section 2,
subdivision 6, that are not used for payment
of court-ordered costs in compliance with
the United States District Court order of
February 20, 2014, in the matter of Karsjens
et al. v. Jesson et al., including any funds
returned by the court that had been deposited
with the court but not spent, may be used by
the commissioner of human services to offset
past and future litigation expenses in the
same matter and to comply with any future
orders of the United States District Court.

Base Level Adjustment. The general fund
base is decreased by $2,625,000 in fiscal
years 2018 and 2019.

Subd. 9. Technical Activities

59,371,000

61,668,000

This appropriation is from the federal TANF
fund.

Base Level Adjustment. The TANF fund
appropriation is decreased by $1,874,000 in
fiscal years 2018 and 2019.

Sec. 3. COMMISSIONER OF HEALTH

Subdivision 1. Total Appropriation

$

185,600,000

$

187,544,000

Appropriations by Fund
	2016	2017
General	95,339,000	98,055,000
State Government Special Revenue	55,524,000	55,318,000
Health Care Access	34,737,000	34,171,000

The amounts that may be spent for each
purpose are specified in the following
subdivisions.

Subd. 2. Health Improvement

Appropriations by Fund
General	74,573,000	75,682,000
State Government Special Revenue	6,264,000	6,182,000
Health Care Access	34,737,000	34,171,000

Violence Against Asian Women Working
Group. $200,000 in fiscal year 2016 from
the general fund is for the working group on
violence against Asian women and children.

Poison Information Center Grants.
$750,000 in fiscal year 2016 and $750,000 in
fiscal year 2017 from the general fund are
for regional poison information center grants
under Minnesota Statutes, section 145.93.

Early Dental Prevention Grants. $172,000
in fiscal year 2016 and $140,000 in fiscal year
2017 are for the development and distribution
of the early dental prevention initiative under
Minnesota Statutes, section 144.3875.

International Medical Graduate
Assistance Program. (a) $500,000 in
fiscal year 2016 and $500,000 in fiscal year
2017 are from the health care access fund
for the grant programs under Minnesota
Statutes, section 144.1911, subdivisions 4
and 5. The commissioner may use up to
$133,000 per year of the appropriation for
international medical graduate assistance
program administration duties in Minnesota
Statutes, section 144.1911, subdivisions
3, 9, and 10, and for administering the
grant programs under Minnesota Statutes,
section 144.1911, subdivisions 4, 5,
and 6. The commissioner shall develop
recommendations for any additional funding
required for initiatives needed to achieve the
objectives of Minnesota Statutes, section
144.1911. The commissioner shall report the
funding recommendations to the legislature
by January 15, 2016, in the report required
under Minnesota Statutes, section 144.1911,
subdivision 10. The base for this purpose is
$1,000,000 in fiscal years 2018 and 2019.

(b) $500,000 in fiscal year 2016 and
$500,000 in fiscal year 2017 are from the
health care access fund for transfer to the
revolving international medical graduate
residency account established in Minnesota
Statutes, section 144.1911, subdivision 6.
This is a onetime appropriation.

Somali Women's Health Pilot Program.
(a) The commissioner of health shall
establish a pilot program between one or
more federally qualified health centers, as
defined under Minnesota Statutes, section
145.9269, Isuroon, a Somali-based women's
organization, and the Minnesota Evaluation
Studies Institute, to develop a promising
strategy to address the preventative and
primary health care needs of, and address
health inequities experienced by, first
generation Somali women. The pilot
program must collaboratively develop a
patient flow process for first generation
Somali women by:

(1) addressing and identifying clinical and
cultural barriers to Somali women accessing
preventative and primary care, including,
but not limited to, cervical and breast cancer
screenings;

(2) developing a culturally appropriate health
curriculum for Somali women based on
the outcomes from the community-based
participatory research report "Cultural
Traditions and the Reproductive Health
of Somali Refugees and Immigrants" to
increase the health literacy of Somali women
and develop culturally specific health care
information; and

(3) training the federally qualified health
center's providers and staff to enhance
provider and staff cultural competence
regarding the cultural barriers, including
female genital cutting.

(b) The pilot program must develop a process
that results in increased screening rates
for cervical and breast cancer and can be
replicated by other providers serving ethnic
minorities. The pilot program must conduct
an evaluation of the new patient flow process
used by Somali women to access federally
qualified health centers services.

(c) The pilot program must report the
outcomes to the commissioner by June 30,
2017.

(d) $125,000 in fiscal year 2016 and
$125,000 in fiscal year 2017 are for the
Somali women's health pilot program. This
appropriation is available until June 30,
2017. This is a onetime appropriation.

Menthol Cigarette Study in the
African-American Community. (a) The
commissioner of health, in consultation with
representatives of the African-American
community and other interested stakeholders,
shall evaluate the current attitudes and
beliefs related to menthol-flavored cigarette
usage among African-Americans in
Minnesota and make recommendations
based on this evaluation on ways to reduce
the disproportionately high usage of
cigarettes by African-Americans, especially
the use of menthol-flavored cigarettes,
as well as the disproportionate harm
tobacco use causes in that community.
The commissioner shall engage members
of the African-American community
and community-based organizations in
conducting the evaluation and creating
recommendations on how to address tobacco
use within the African-American community.

(b) The commissioner shall submit the results
of the evaluation and the recommendations
to the chairs and ranking minority members
of the senate and house of representatives
health and human services policy and finance
committees by January 15, 2016.

The health care access fund base for the
statewide health improvement program is
reduced by $200,000 in fiscal year 2016 and
$200,000 from the health care access in fiscal
year 2016 is appropriated for this study.

Targeted Home Visiting System. (a)
$75,000 in fiscal year 2016 is for the
commissioner of health, in consultation
with the commissioners of human services
and education, community health boards,
tribal nations, and other home visiting
stakeholders, to design baseline training
for new home visitors to ensure statewide
coordination across home visiting programs.

(b) $575,000 in fiscal year 2016 and
$1,887,000 fiscal year 2017 are to provide
grants to community health boards and
tribal nations for start-up grants for new
nurse-family partnership programs and
for grants to expand existing programs
to serve first-time mothers, prenatally by
28 weeks gestation until the child is two
years of age, who are eligible for medical
assistance under Minnesota Statutes, chapter
256B, or the federal Special Supplemental
Nutrition Program for Women, Infants, and
Children. The commissioner shall award
grants to community health boards or tribal
nations in metropolitan and rural areas of
the state. Priority for all grants shall be
given to nurse-family partnership programs
that provide services through a Minnesota
health care program-enrolled provider that
accepts medical assistance. Additionally,
priority for grants to rural areas shall be
given to community health boards and tribal
nations that expand services within regional
partnerships that provide the nurse-family
partnership program. Funding available
under this paragraph may only be used to
supplement, not to replace, funds being used
for nurse-family partnership home visiting
services as of June 30, 2015.

Local and Tribal Public Health Grants. (a)
$894,000 in fiscal year 2016 and $894,000 in
fiscal year 2017 are for an increase in local
public health grants for community health
boards under Minnesota Statutes, section
145A.131, subdivision 1, paragraph (e).

(b) $106,000 in fiscal year 2016 and $106,000
in fiscal year 2017 are for an increase in
special grants to tribal governments under
Minnesota Statutes, section 145A.14,
subdivision 2a.

Family Planning Special Projects.
$1,000,000 in fiscal year 2016 and
$1,000,000 in fiscal year 2017 from the
general fund are for family planning special
project grants under Minnesota Statutes,
section 145.925.

Safe Harbor for Sexually Exploited Youth.
$700,000 in fiscal year 2016 and $700,000 in
fiscal year 2017 from the general fund are
for the safe harbor program under Minnesota
Statutes, sections 145.4716 to 145.4718.
Funds shall be used for grants to increase
the number of regional navigators; training
for professionals who engage with exploited
or at-risk youth; implementing statewide
protocols and best practices for effectively
identifying, interacting with, and referring
sexually exploited youth to appropriate
resources; and program operating costs.

Health Care Grants for Uninsured
Individuals. (a) $125,000 of the general fund
appropriation in fiscal years 2016 and 2017
is for dental provider grants in Minnesota
Statutes, section 145.929, subdivision 1.

(b) $437,500 of the general fund
appropriation in fiscal years 2016 and 2017 is
for community mental health program grants
in Minnesota Statutes, section 145.929,
subdivision 2.

(c) $1,500,000 of the general fund
appropriation in fiscal years 2016 and 2017 is
for the emergency medical assistance outlier
grant program in Minnesota Statutes, section
145.929, subdivision 3.

(d) $437,500 of the general fund
appropriation in fiscal years 2016 and 2017
is for community health center grants under
Minnesota Statutes, section 145.9269. A
community health center that receives a grant
from this appropriation is not eligible for a
grant under paragraph (b).

(e) The commissioner may use up to $25,000
of the appropriations for health care grants
for uninsured individuals in fiscal years 2016
and 2017 for grant administration.

Home Visiting and Nutritional Services.
$3,579,000 in fiscal year 2016 and
$3,579,000 in fiscal year 2017 from the
general fund are for home visiting and
nutritional services listed under Minnesota
Statutes, section 145.882, subdivision 7,
clauses (6) and (7). Funds must be distributed
to community health boards according to
Minnesota Statutes, section 145A.131,
subdivision 1, paragraph (a).

Infant Mortality. $2,000,000 in fiscal year
2016 and $2,000,000 in fiscal year 2017 from
the general fund are for decreasing racial and
ethnic disparities in infant mortality rates
under Minnesota Statutes, section 145.928,
subdivision 7.

Family Home Visiting. (a) $4,978,000 in
fiscal year 2016 and $4,978,000 in fiscal
year 2017 from the general fund are for
the family home visiting grant program
according to Minnesota Statutes, section
145A.17. $4,000,000 of the funding must
be distributed to community health boards
according to Minnesota Statutes, section
145A.131, subdivision 1, paragraph (a).
$978,000 of the funding must be distributed
to tribal governments based on Minnesota
Statutes, section 145A.14, subdivision 2a.

(b) The commissioner may use up to 6.23
percent of the funds appropriated each fiscal
year to conduct the ongoing evaluations
required under Minnesota Statutes, section
145A.17, subdivision 7, and training and
technical assistance as required under
Minnesota Statutes, section 145A.17,
subdivisions 4 and 5.

Health Professional Loan Forgiveness.
$3,131,000 in fiscal year 2016 and $3,131,000
in fiscal year 2017 from the general fund
are for the purposes of Minnesota Statutes,
section 144.1501. Of this appropriation, the
commissioner may use up to $131,000 each
year to administer the program.

Minnesota Stroke System. $350,000 in
fiscal year 2016 and $350,000 in fiscal
year 2017 from the general fund are for the
Minnesota stroke system.

Family Planning Grants. $1,156,000 in
fiscal year 2016 and $1,156,000 in fiscal year
2017 from the general fund are for family
planning grants under Minnesota Statutes,
section 145.925.

Regional Grants. $703,000 in fiscal year
2016 and $701,000 in fiscal year 2017
from the general fund are for the regional
emergency medical services programs. Of
this amount, $118,000 each fiscal year may be
used for operating expenses of the program.

Prevention of Violence in Health Care.
$50,000 in fiscal year 2016 is to continue the
prevention of violence in health care program
and creating violence prevention resources
for hospitals and other health care providers
to use in training their staff on violence
prevention. This is a onetime appropriation
and is available until June 30, 2017.

Base Level Adjustments. The general fund
base is decreased by $244,000 in fiscal year
2018 and $242,000 in fiscal year 2019. The
state government special revenue fund base
is increased by $33,000 in fiscal year 2018.
The health care access fund base is increased
by $610,000 in fiscal year 2018 and $23,000
in fiscal year 2019.

Subd. 3. Health Protection

Appropriations by Fund
General	12,556,000	14,149,000
State Government Special Revenue	49,260,000	49,136,000

Base Level Adjustments. The state
government special revenue fund base is
increased by $262,000 in fiscal year 2018 and
is increased by $235,000 in fiscal year 2019.

Subd. 4. Administrative Support Services

8,210,000

8,224,000

Sec. 4. HEALTH-RELATED BOARDS

Subdivision 1. Total Appropriation

$

19,707,000

$

19,597,000

This appropriation is from the state
government special revenue fund. The
amounts that may be spent for each purpose
are specified in the following subdivisions.

Subd. 2. Board of Chiropractic Examiners

507,000

513,000

Subd. 3. Board of Dentistry

2,192,000

2,206,000

This appropriation includes $864,000 in fiscal
year 2016 and $878,000 in fiscal year 2017
for the health professional services program.

Subd. 4. Board of Dietetics and Nutrition Practice

113,000

115,000

Subd. 5. Board of Marriage and Family Therapy

234,000

237,000

Subd. 6. Board of Medical Practice

3,933,000

3,962,000

Subd. 7. Board of Nursing

4,189,000

4,243,000

Subd. 8. Board of Nursing Home Administrators

2,365,000

2,062,000

Administrative Services Unit - Operating
Costs. Of this appropriation, $1,482,000
in fiscal year 2016 and $1,497,000 in
fiscal year 2017 are for operating costs
of the administrative services unit. The
administrative services unit may receive
and expend reimbursements for services
performed by other agencies.

Administrative Services Unit - Volunteer
Health Care Provider Program. Of this
appropriation, $150,000 in fiscal year 2016
and $150,000 in fiscal year 2017 are to pay
for medical professional liability coverage
required under Minnesota Statutes, section
214.40.

Administrative Services Unit - Retirement
Costs. Of this appropriation, $320,000 in
fiscal year 2016 is a onetime appropriation
to the administrative services unit to pay for
the retirement costs of health-related board
employees. This funding may be transferred
to the health board incurring the retirement
costs. These funds are available either year
of the biennium.

Administrative Services Unit - Contested
Cases and Other Legal Proceedings. Of
this appropriation, $200,000 in fiscal year
2016 and $200,000 in fiscal year 2017 are
for costs of contested case hearings and other
unanticipated costs of legal proceedings
involving health-related boards funded
under this section. Upon certification by a
health-related board to the administrative
services unit that the costs will be incurred
and that there is insufficient money available
to pay for the costs out of money currently
available to that board, the administrative
services unit is authorized to transfer money
from this appropriation to the board for
payment of those costs with the approval
of the commissioner of management and
budget. The commissioner of management
and budget must require any board that
has an unexpended balance for an amount
transferred under this paragraph to transfer
the unexpended amount to the administrative
services unit to be deposited in the state
government special revenue fund.

Subd. 9. Board of Optometry

138,000

143,000

Subd. 10. Board of Pharmacy

2,847,000

2,888,000

Subd. 11. Board of Physical Therapy

354,000

359,000

Subd. 12. Board of Podiatry

78,000

79,000

Subd. 13. Board of Psychology

874,000

884,000

Subd. 14. Board of Social Work

1,141,000

1,155,000

Subd. 15. Board of Veterinary Medicine

262,000

265,000

Subd. 16. Board of Behavioral Health and Therapy

480,000

486,000

Sec. 5. EMERGENCY MEDICAL SERVICES REGULATORY BOARD

$

2,287,000

$

2,420,000

Cooper/Sams Volunteer Ambulance
Program. $700,000 in fiscal year 2016 and
$700,000 in fiscal year 2017 are for the
Cooper/Sams volunteer ambulance program
under Minnesota Statutes, section 144E.40.

(a) Of this amount, $611,000 in fiscal year
2016 and $611,000 in fiscal year 2017
are for the ambulance service personnel
longevity award and incentive program under
Minnesota Statutes, section 144E.40.

(b) Of this amount, $89,000 in fiscal year
2016 and $89,000 in fiscal year 2017 are
for the operations of the ambulance service
personnel longevity award and incentive
program under Minnesota Statutes, section
144E.40.

Ambulance Training Grant. $361,000 in
fiscal year 2016 and $361,000 in fiscal year
2017 are for training grants.

EMSRB Board Operations. $1,226,000 in
fiscal year 2016 and $1,360,000 in fiscal year
2017 are for board operations.

Sec. 6. COUNCIL ON DISABILITY

$

730,000

$

707,000

Staffing and Technology. $78,000 in fiscal
years 2016 and 2017 is for one staff person.
$30,000 in fiscal year 2016 only is for a
computer system upgrade.

Sec. 7. OMBUDSMAN FOR MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES

$

2,097,000

$

2,217,000

Sec. 8. MNSURE

$

94,026,000

$

42,865,000

This appropriation is from the state
government special revenue fund.

Base Level Adjustment. The state
government special revenue fund base is
decreased by $148,000 in fiscal years 2018
and 2019.

Sec. 9.

Minnesota Statutes 2014, section 256.01, is amended by adding a subdivision
to read:

Subd. 40.

Nonfederal share transfers.

The nonfederal share of activities for
which federal administrative reimbursement is appropriated to the commissioner may
be transferred to the special revenue fund.

Sec. 10.

Laws 2013, chapter 108, article 14, section 12, as amended by Laws 2014,
chapter 312, article 30, section 11, is amended to read:

Sec. 12. APPROPRIATION ADJUSTMENTS.

(a) The general fund appropriation in section 2, subdivision 5, paragraph (g),
includes up to $53,391,000 in fiscal year 2014; $216,637,000 in fiscal year 2015;
$261,660,000 in fiscal year 2016; and $279,984,000 in fiscal year 2017, for medical
assistance eligibility and administration changes related to:

(1) eligibility for children age two to 18 with income up to 275 percent of the federal
poverty guidelines;

(2) eligibility for pregnant women with income up to 275 percent of the federal
poverty guidelines;

(3) Affordable Care Act enrollment and renewal processes, including elimination
of six-month renewals, ex parte eligibility reviews, preprinted renewal forms, changes
in verification requirements, and other changes in the eligibility determination and
enrollment and renewal process;

(4) automatic eligibility for children who turn 18 in foster care until they reach age 26;

(5) eligibility related to spousal impoverishment provisions for waiver recipients; and

(6) presumptive eligibility determinations by hospitals.

(b) the commissioner of human services shall determine the difference between the
actual or estimated costs to the medical assistance program attributable to the program
changes in paragraph (a), clauses (1) to (6), and the costs of paragraph (a), clauses (1)
to (6), that were estimated during the 2013 legislative session based on data from the
2013 February forecast.

(c) For each fiscal year from 2014 to 2017 2019, the commissioner of human services
shall certify the actual or estimated cost differences to the medical assistance program
determined under paragraph (b), and report the difference in costs to the commissioner of
management and budget at least four weeks prior to a forecast under Minnesota Statutes,
section 16A.103. For fiscal years 2014 to 2017 2019, forecasts under Minnesota Statutes,
section 16A.103, prepared by the commissioner of management and budget shall include
actual or estimated adjustments to the health care access fund appropriation in section 2,
subdivision 5, paragraph (g), according to paragraph (d).

(d) For each fiscal year from 2014 to 2017 2019, the commissioner of management
and budget must adjust the health care access fund appropriation by the cumulative
difference in costs reported by the commissioner of human services under paragraph
(b). If, for any fiscal year, the amount of the cumulative difference in costs determined
under paragraph (b) is positive, no adjustment shall be made to the health care access
fund appropriation.

(e) This section expires on January 1, 2018 2020.

Sec. 11. TRANSFERS.

Subdivision 1.

Grants.

The commissioner of human services, with the approval of
the commissioner of management and budget, may transfer unencumbered appropriation
balances for the biennium ending June 30, 2017, within fiscal years among the MFIP,
general assistance, general assistance medical care under Minnesota Statutes 2009
Supplement, section 256D.03, subdivision 3, medical assistance, MinnesotaCare, MFIP
child care assistance under Minnesota Statutes, section 119B.05, Minnesota supplemental
aid, and group residential housing programs, the entitlement portion of Northstar Care
for Children under Minnesota Statutes, chapter 256N, and the entitlement portion of
the chemical dependency consolidated treatment fund, and between fiscal years of the
biennium. The commissioner shall inform the chairs and ranking minority members of
the senate Health and Human Services Finance Division and the house of representatives
Health and Human Services Finance Committee quarterly about transfers made under
this subdivision.

Subd. 2.

Administration.

Positions, salary money, and nonsalary administrative
money may be transferred within the Departments of Health and Human Services as the
commissioners consider necessary, with the advance approval of the commissioner of
management and budget. The commissioner shall inform the chairs and ranking minority
members of the senate Health and Human Services Finance Division and the house of
representatives Health and Human Services Finance Committee quarterly about transfers
made under this subdivision.

Sec. 12. INDIRECT COSTS NOT TO FUND PROGRAMS.

The commissioners of health and human services shall not use indirect cost
allocations to pay for the operational costs of any program for which they are responsible.

Sec. 13. EXPIRATION OF UNCODIFIED LANGUAGE.

All uncodified language contained in this article expires on June 30, 2017, unless a
different expiration date is explicit.

Sec. 14. EFFECTIVE DATE.

This article is effective July 1, 2015, unless a different effective date is specified.

ARTICLE 13

HUMAN SERVICES FORECAST ADJUSTMENTS

Section 1. DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT.

The dollar amounts shown are added to or, if shown in parentheses, are subtracted
from the appropriations in Laws 2013, chapter 108, article 14, as amended by Laws 2014,
chapter 312, article 30, from the general fund, or any other fund named, to the Department
of Human Services for the purposes specified in this article, to be available for the fiscal
years indicated for each purpose. The figure "2015" used in this article means that the
appropriations listed are available for the fiscal year ending June 30, 2015.

			APPROPRIATIONS
			Available for the Year
			Ending June 30
				2016		2017

Sec. 2. COMMISSIONER OF HUMAN SERVICES

Subdivision 1. Total Appropriation

$

(255,104,000)

Appropriations by Fund
	2015
General Fund	(125,910,000)
Health Care Access	(123,113,000)
TANF	(6,081,000)

Subd. 2. Forecasted Programs
(a) MFIP/DWP Grants

Appropriations by Fund
General Fund	(1,977,000)
TANF	(7,079,000)

(b) MFIP Child Care Assistance Grants

9,733,000

(c) General Assistance Grants

(1,423,000)

(d) Minnesota Supplemental Aid Grants

(1,121,000)

(e) Group Residential Housing Grants

(6,314,000)

(f) MinnesotaCare Grants

(75,675,000)

This appropriation is from the health care
access fund.

(g) Medical Assistance Grants

Appropriations by Fund
General Fund	(124,557,000)
Health Care Access	(47,438,000)

(h) Alternative Care Grants

0

(i) CD Entitlement Grants

(251,000)

Subd. 3. Technical Activities

998,000

This appropriation is from the TANF fund.

Sec. 3. EFFECTIVE DATE.

Sections 1 and 2 are effective the day following final enactment.