ARTICLE 1

HEALTH CARE

62A.045 PAYMENTS ON BEHALF OF ENROLLEES IN GOVERNMENT
HEALTH PROGRAMS.

256B.0631 MEDICAL ASSISTANCE CO-PAYMENTS.

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

new text begin [256B.0758] HEALTH CARE DELIVERY PILOT PROGRAM.
new text end

256B.75 HOSPITAL OUTPATIENT REIMBURSEMENT.

256B.762 REIMBURSEMENT FOR HEALTH CARE SERVICES.

256B.766 REIMBURSEMENT FOR BASIC CARE SERVICES.

256B.767 MEDICARE PAYMENT LIMIT.

new text begin REDUCTION IN ADMINISTRATIVE COSTS.
new text end

ARTICLE 2

MINNESOTACARE

ARTICLE 3

MNSURE

new text begin [62V.045] EXECUTIVE DIRECTOR.
new text end

new text begin ESTABLISHMENT OF FEDERALLY FACILITATED
MARKETPLACE.
new text end

ARTICLE 4

CONTINUING CARE

new text begin [245A.081] SETTLEMENT AGREEMENT.
new text end

256.478 HOME AND COMMUNITY-BASED SERVICES TRANSITIONS
GRANTS.

new text begin [256B.4915] DISABILITY WAIVER REIMBURSEMENT RATE
ADJUSTMENTS.
new text end

256B.492 HOME AND COMMUNITY-BASED SETTINGS FOR PEOPLE
WITH DISABILITIES.

new text begin [256Q.01] PLAN ESTABLISHED.
new text end

new text begin [256Q.02] CITATION.
new text end

new text begin [256Q.03] DEFINITIONS.
new text end

new text begin [256Q.04] ABLE PLAN REQUIREMENTS.
new text end

new text begin [256Q.05] ABLE PLAN ADMINISTRATION.
new text end

new text begin [256Q.06] PLAN ACCOUNTS.
new text end

new text begin [256Q.07] INVESTMENT OF ABLE ACCOUNTS.
new text end

new text begin [256Q.08] ACCOUNT DISTRIBUTIONS.
new text end

ARTICLE 5

NURSING FACILITY PAYMENT REFORM AND WORKFORCE
DEVELOPMENT

new text begin [144.1503] HOME AND COMMUNITY-BASED SERVICES
EMPLOYEE SCHOLARSHIP PROGRAM.
new text end

ARTICLE 6

PUBLIC HEALTH AND HEALTH CARE DELIVERY

new text begin [62A.67] SHORT TITLE.
new text end

new text begin [62A.671] DEFINITIONS.
new text end

new text begin [62A.672] COVERAGE OF TELEMEDICINE SERVICES.
new text end

new text begin [144.1506] PRIMARY CARE RESIDENCY EXPANSION GRANT
PROGRAM.
new text end

new text begin [144.586] REQUIREMENTS FOR CERTAIN NOTICES AND
DISCHARGE PLANNING.
new text end

new text begin [144.611] CAPTIONING REQUIRED.
new text end

new text begin [144.999] LIFE-SAVING ALLERGY MEDICATION.
new text end

new text begin [145.417] LICENSURE OF CERTAIN FACILITIES THAT PERFORM
ABORTIONS.
new text end

145.423 ABORTION; LIVE BIRTHS.

new text begin [145.471] PRENATAL TRISOMY DIAGNOSIS AWARENESS ACT.
new text end

new text begin [145.9299] SMILE HEALTHY MINNESOTA 2016 GRANT PROGRAM.
new text end

152.34 deleted text begin NURSINGdeleted text end new text begin HEALTH CAREnew text end FACILITIES.

ARTICLE 7

CHILDREN AND FAMILY SERVICES

new text begin [256E.28] CHILD PROTECTION GRANTS TO ADDRESS CHILD
WELFARE DISPARITIES.
new text end

256I.04 ELIGIBILITY FOR GROUP RESIDENTIAL HOUSING PAYMENT.

new text begin [256M.41] CHILD PROTECTION GRANT ALLOCATION.
new text end

259A.75 REIMBURSEMENT OF CERTAIN AGENCY COSTS; PURCHASE
OF SERVICE CONTRACTSnew text begin AND TRIBAL CUSTOMARY ADOPTIONSnew text end .

260C.203 ADMINISTRATIVE OR COURT REVIEW OF PLACEMENTS.

518A.51 FEES FOR IV-D SERVICES.

new text begin [518A.685] CONSUMER REPORTING AGENCY; REPORTING
ARREARS.
new text end

518C.802 CONDITIONS OF RENDITION.

518C.201 BASES FOR JURISDICTION OVER NONRESIDENT.

518C.206 deleted text begin ENFORCEMENT AND MODIFICATION OF SUPPORT ORDER
BY TRIBUNAL HAVINGdeleted text end CONTINUING JURISDICTIONnew text begin TO ENFORCE CHILD
SUPPORT ORDERnew text end .

518C.207 deleted text begin RECOGNITIONdeleted text end new text begin DETERMINATIONnew text end OF CONTROLLING CHILD
SUPPORT ORDER.

518C.301 PROCEEDINGS UNDER THIS CHAPTER.

518C.303 APPLICATION OF LAW OF THIS STATE.

518C.304 DUTIES OF INITIATING TRIBUNAL.

518C.305 DUTIES AND POWERS OF RESPONDING TRIBUNAL.

518C.310 DUTIES OF STATE INFORMATION AGENCY.

518C.311 PLEADINGS AND ACCOMPANYING DOCUMENTS.

518C.314 LIMITED IMMUNITY OF PETITIONER.

518C.316 SPECIAL RULES OF EVIDENCE AND PROCEDURE.

518C.317 COMMUNICATIONS BETWEEN TRIBUNALS.

518C.319 RECEIPT AND DISBURSEMENT OF PAYMENTS.

518C.604 CHOICE OF LAW.

518C.611 MODIFICATION OF CHILD SUPPORT ORDER OF ANOTHER
STATE.

518C.612 RECOGNITION OF ORDER MODIFIED IN ANOTHER STATE.

ARTICLE 8

CHEMICAL AND MENTAL HEALTH

new text begin [245.735] EXCELLENCE IN MENTAL HEALTH DEMONSTRATION
PROJECT.
new text end

new text begin [256B.7631] CHEMICAL DEPENDENCY PROVIDER RATE
INCREASE.
new text end

ARTICLE 9

DIRECT CARE AND TREATMENT

43A.241 INSURANCE CONTRIBUTIONS; FORMER deleted text begin CORRECTIONS
deleted text end EMPLOYEES.

ARTICLE 10

WITHDRAWAL MANAGEMENT PROGRAMS

new text begin [245F.01] PURPOSE.
new text end

new text begin [245F.02] DEFINITIONS.
new text end

new text begin [245F.03] APPLICATION.
new text end

new text begin [245F.04] PROGRAM LICENSURE.
new text end

new text begin [245F.05] ADMISSION AND DISCHARGE POLICIES.
new text end

new text begin [245F.06] SCREENING AND COMPREHENSIVE ASSESSMENT.
new text end

new text begin [245F.07] STABILIZATION PLANNING.
new text end

new text begin [245F.08] STABILIZATION SERVICES.
new text end

new text begin [245F.09] PROTECTIVE PROCEDURES.
new text end

new text begin [245F.10] PATIENT RIGHTS AND GRIEVANCE PROCEDURES.
new text end

new text begin [245F.11] PATIENT PROPERTY MANAGEMENT.
new text end

new text begin [245F.12] MEDICAL SERVICES.
new text end

new text begin [245F.13] MEDICATIONS.
new text end

new text begin [245F.14] STAFFING REQUIREMENTS AND DUTIES.
new text end

new text begin [245F.15] STAFF QUALIFICATIONS.
new text end

new text begin [245F.16] PERSONNEL POLICIES AND PROCEDURES.
new text end

new text begin [245F.18] POLICY AND PROCEDURES MANUAL.
new text end

new text begin [245F.21] PAYMENT METHODOLOGY.
new text end

ARTICLE 11

HEALTH-RELATED LICENSING BOARDS

148.271 EXEMPTIONS.

148.52 BOARD OF OPTOMETRY.

148.54 BOARD; SEAL.

148.574 PROHIBITIONS RELATING TO LEGEND DRUGSdeleted text begin ;
AUTHORIZING SALES BY PHARMACISTS UNDER CERTAIN CONDITIONSdeleted text end .

148.577 STANDARD OF CARE.

148.59 LICENSE RENEWAL; deleted text begin FEEdeleted text end new text begin LICENSE AND REGISTRATION FEESnew text end .

148.603 deleted text begin FORMS OFdeleted text end new text begin GROUNDS FORnew text end DISCIPLINARY deleted text begin ACTIONSdeleted text end new text begin ACTIONnew text end .

new text begin [148.604] REPORTING OBLIGATIONS.
new text end

new text begin [148.605] IMMUNITY.
new text end

new text begin [148.606] OPTOMETRIST COOPERATION.
new text end

new text begin [148.607] DISCIPLINARY ACTIONS.
new text end

148E.075 deleted text begin INACTIVE LICENSESdeleted text end new text begin ALTERNATE LICENSESnew text end .

150A.31 FEES.

151.02 STATE BOARD OF PHARMACY.

151.102 PHARMACY TECHNICIAN.

214.077 TEMPORARY LICENSE SUSPENSION; IMMINENT RISK OF
new text begin SERIOUS new text end HARM.

ARTICLE 12

PUBLIC ASSISTANCE SIMPLIFICATION

256J.35 AMOUNT OF ASSISTANCE PAYMENT.

256J.40 FAIR HEARINGS.

256P.001 APPLICABILITY.

new text begin [256P.06] INCOME CALCULATIONS.
new text end

new text begin [256P.07] REPORTING OF INCOME AND CHANGES.
new text end

new text begin [256P.08] CORRECTION OF OVERPAYMENTS AND
UNDERPAYMENTS.
new text end

ARTICLE 13

HUMAN SERVICES FORECAST ADJUSTMENTS

ARTICLE 14

HEALTH AND HUMAN SERVICES APPROPRIATIONS

SF 1458

ARTICLE 1

HEALTH CARE

62A.045 PAYMENTS ON BEHALF OF ENROLLEES IN GOVERNMENT HEALTH PROGRAMS.

256B.0631 MEDICAL ASSISTANCE CO-PAYMENTS.

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

new text begin [256B.0758] HEALTH CARE DELIVERY PILOT PROGRAM. new text end

62A.045 PAYMENTS ON BEHALF OF ENROLLEES IN GOVERNMENT
HEALTH PROGRAMS.

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

new text begin [256B.0758] HEALTH CARE DELIVERY PILOT PROGRAM.
new text end

new text begin REDUCTION IN ADMINISTRATIVE COSTS.
new text end

Section 1.

Sec. 2.

Subd. 1b.

Sec. 3.

Subd. 2.

Sec. 4.

Subd. 5.

Sec. 5.

Subd. 2b.

Sec. 6.

Subd. 9.

Sec. 7.

Subd. 5c.

new text begin EFFECTIVE DATE. new text end

Sec. 8.

new text begin Subd. 9b. new text end

Sec. 9.

Subd. 13.

new text begin EFFECTIVE DATE. new text end

Sec. 10.

Subd. 13e.

new text begin EFFECTIVE DATE. new text end

Sec. 11.

Subd. 13h.

Sec. 12.

Subd. 17.

Sec. 13.

Subd. 28a.

Sec. 14.

Subd. 31.

Sec. 15.

Subd. 58.

Sec. 16.

Subdivision 1.

Subd. 2.

Subd. 3.

new text begin EFFECTIVE DATE. new text end

Sec. 17.

new text begin EFFECTIVE DATE. new text end

Sec. 18.

Sec. 19.

Subd. 5a.

Sec. 20.

Subd. 5i.

Sec. 21.

Subd. 9c.

Sec. 22.

Subd. 9d.

Sec. 23.

new text begin Subd. 9e. new text end

Sec. 24.

Sec. 25.

Subdivision 1.

Sec. 26.

Subd. 2.

Sec. 27.

Sec. 28.

Sec. 29.

Sec. 30.

Subd. 5.

Sec. 31.

Sec. 32. new text begin ADVISORY GROUP ON ADMINISTRATIVE EXPENSES.
new text end

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

Sec. 33. new text begin CAPITATION PAYMENT DELAY.
new text end

Sec. 34. new text begin HEALTH AND ECONOMIC ASSISTANCE PROGRAM ELIGIBILITY
VERIFICATION AUDIT SERVICES.
new text end

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

Sec. 35. new text begin REQUEST FOR PROPOSALS.
new text end

new text begin EFFECTIVE DATE. new text end

Sec. 36. new text begin FEDERAL WAIVER OR APPROVAL.
new text end

Section 1.

Subdivision 1.

new text begin EFFECTIVE DATE. new text end

Sec. 2.

Subd. 4.

new text begin EFFECTIVE DATE. new text end

Sec. 3.

Subd. 3a.

new text begin EFFECTIVE DATE. new text end

Sec. 4.

Subd. 5.

new text begin EFFECTIVE DATE. new text end

Sec. 5.

Subd. 5.

new text begin EFFECTIVE DATE. new text end

Sec. 6.

Subd. 1c.

new text begin EFFECTIVE DATE. new text end

Sec. 7.

Subd. 7b.

new text begin EFFECTIVE DATE. new text end

Sec. 8.

Subd. 10.

Sec. 9.

new text begin Subd. 2a. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 10.

Subd. 3.

Sec. 11.

Subd. 3a.

new text begin EFFECTIVE DATE. new text end

Sec. 12.

Subd. 4.

new text begin EFFECTIVE DATE. new text end

Sec. 13.

Subd. 3.

new text begin EFFECTIVE DATE. new text end

Sec. 14.

Subdivision 1.

Sec. 15.

Subd. 5.

new text begin EFFECTIVE DATE. new text end

Sec. 16.

Subdivision 1.

new text begin EFFECTIVE DATE. new text end

Sec. 17. new text begin REVISOR INSTRUCTION.
new text end

new text begin EFFECTIVE DATE. new text end

Sec. 18. new text begin REPEALER.
new text end

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin EFFECTIVE DATE. new text end

Section 1. new text begin EXPANDED ACCESS TO QUALIFIED HEALTH PLANS AND
SUBSIDIES.
new text end

Sec. 2.

Subd. 3.

Sec. 3.

Subd. 2.

Sec. 4.

new text begin Subd. 2a. new text end

Sec. 5.

Subd. 2.

Sec. 6.

Subdivision 1.

Sec. 7.

Subd. 2.

Sec. 8.

Subd. 4.

Sec. 9.

Sec. 10.

Subdivision 1.

Sec. 11.

Subd. 5.

new text begin EFFECTIVE DATE. new text end

Sec. 12.

Subd. 6.

Sec. 13.

new text begin Subd. 11. new text end

Sec. 14.

new text begin Subd. 12. new text end

Sec. 15.

new text begin Subd. 13. new text end

Sec. 16.

Subd. 2.

Sec. 17.

new text begin Subd. 5. new text end

Sec. 18.

new text begin Subd. 10. new text end

Sec. 19.

new text begin Subd. 11. new text end

Sec. 20.

new text begin Subd. 9. new text end

Sec. 21. new text begin TRANSITION.
new text end

Sec. 22. new text begin EXPANDED ACCESS TO THE SMALL BUSINESS HEALTH CARE
TAX CREDIT.
new text end

new text begin EFFECTIVE DATE. new text end

Sec. 23. new text begin CONFIRMATION DEADLINE.
new text end

Sec. 24.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

Sec. 25. new text begin REQUIREMENTS FOR STATE MATCH FOR FEDERAL GRANTS.
new text end

new text begin EFFECTIVE DATE. new text end

Sec. 26. new text begin REPEALER.
new text end

Section 1.

new text begin Subd. 32. new text end

Sec. 2.

new text begin Subd. 1a. new text end

Sec. 3.

Sec. 4.

Subdivision 1.

Sec. 5.

Subd. 2.

Sec. 6.

Subd. 2.

Sec. 7.

new text begin Subd. 37. new text end

Sec. 8.

Subdivision 1.

Sec. 9.

Subd. 2.

Sec. 10.

Subdivision 1.

Sec. 11.

Subd. 2.

Sec. 12.

Subd. 7.

Sec. 13.

Subd. 2.

Sec. 14.

Subd. 5.

Sec. 15.

Subd. 3.

Sec. 16.

Subd. 5.

Sec. 17.

Subd. 4.

Sec. 18.

Subd. 3.

Sec. 19.

Subd. 4.

Sec. 20.

Subd. 5.

Sec. 21.

Subd. 2a.

Sec. 22.

Sec. 23.

Subd. 2.

Sec. 24.

new text begin Subd. 11. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 25.

Subd. 9.

Sec. 26.

Subd. 2.

new text begin EFFECTIVE DATE. new text end

Sec. 27.

Subd. 11.

new text begin EFFECTIVE DATE. new text end

Sec. 28.

new text begin Subd. 12. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 29.

Subd. 3.

Sec. 30.

Subd. 4.

Sec. 31.

Subd. 26.

Sec. 32.

new text begin Subd. 27. new text end

Sec. 33.

Subd. 4a.

Sec. 34.

Subd. 5.

Sec. 35.

Subd. 2.

Sec. 36.

Subd. 6.

Sec. 37.

Subd. 8.

Sec. 38.

Subd. 10.

new text begin EFFECTIVE DATE. new text end

Sec. 39.

Subd. 14.

Sec. 40.

Subd. 15.

Sec. 41.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

Sec. 42.

new text begin EFFECTIVE DATE. new text end

Sec. 43.

new text begin Subd. 17. new text end

Sec. 44.

Sec. 45.

Sec. 46.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

new text begin Subd. 8. new text end

new text begin Subd. 9. new text end

new text begin Subd. 10. new text end

new text begin Subd. 11. new text end

new text begin Subd. 12. new text end

new text begin Subd. 13. new text end

new text begin Subd. 14. new text end

new text begin Subd. 15. new text end

new text begin Subd. 16. new text end

new text begin Subd. 17. new text end

new text begin Subd. 18. new text end

new text begin Subd. 19. new text end

new text begin Subd. 20. new text end

new text begin Subd. 21. new text end

new text begin Subd. 22. new text end

new text begin Subd. 23. new text end

new text begin Subd. 24. new text end

new text begin Subd. 25. new text end

Sec. 47.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

Sec. 48.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

Sec. 49.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

Sec. 50.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

Sec. 51.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

Sec. 52.

Sec. 47. COMMISSIONER TO SEEK AMENDMENT FOR EXCEPTION
TO CONSUMER-DIRECTED COMMUNITY SUPPORTS BUDGET
METHODOLOGY.

Sec. 53. new text begin PROVIDER RATE AND GRANT INCREASES EFFECTIVE JULY
1, 2016.
new text end

Sec. 54. new text begin DIRECTION TO COMMISSIONER; PEDIATRIC HOME CARE
STUDY.
new text end

Sec. 55. new text begin DIRECTION TO COMMISSIONER; REPORTS REQUIRED.
new text end

Sec. 56. new text begin DIRECTION TO COMMISSIONER; DAY TRAINING AND
HABILITATION.
new text end

Sec. 57. new text begin HOME AND COMMUNITY-BASED SERVICES INCENTIVE POOL.
new text end

Section 1.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

new text begin Subd. 8. new text end

Sec. 2.

Subd. 4a.

Sec. 3.

Subd. 4.

Sec. 4.

Subd. 3a.

new text begin EFFECTIVE DATE. new text end

Sec. 5.

Subd. 3e.

new text begin EFFECTIVE DATE. new text end

Sec. 6.

Subd. 3h.

new text begin EFFECTIVE DATE. new text end

Sec. 7.

Subd. 2b.

Sec. 8.

Subd. 36.

Sec. 9.

Subd. 4.

Sec. 10.

new text begin Subd. 4i. new text end

Sec. 11.

Subdivision 1.

Sec. 12.

Subd. 5.

Sec. 13.

Subd. 6.

Sec. 14.

new text begin Subd. 11a. new text end

Sec. 15.

Subd. 13.

Sec. 16.

Subd. 14.

Sec. 17.

Subd. 17.

Sec. 18.

Subd. 30.

Sec. 19.

Subd. 31.

Sec. 20.

Subd. 33.

Sec. 21.

Subd. 35.

Sec. 22.

Subd. 40.

Sec. 23.

Subd. 44.

Sec. 24.

Subd. 46c.

Sec. 25.

new text begin Subd. 46d. new text end

Sec. 26.

Subd. 48.

Sec. 27.

Subd. 50.

Sec. 28.

Subd. 51.

Sec. 29.

Subd. 51a.

Sec. 30.

new text begin Subd. 51b. new text end

Sec. 31.

Subd. 53.

Sec. 32.

Subd. 54.

Sec. 33.

Subd. 55a.

Sec. 34.

Subd. 56.

Sec. 35.

Subd. 63.

Sec. 36.

new text begin Subd. 65. new text end

Sec. 37.

new text begin Subd. 66. new text end

Sec. 38.

new text begin Subd. 67. new text end

Sec. 39.

Subdivision 1.

new text begin EFFECTIVE DATE. new text end

Sec. 40.

Subd. 2.

Sec. 41. new text begin DIRECTION TO COMMISSIONER; NURSING FACILITY PAYMENT
REFORM REPORT.
new text end

Sec. 42. new text begin PROPERTY RATE SETTING.
new text end

Sec. 43. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin EFFECTIVE DATE. new text end

Sec. 44. new text begin REPEALER.
new text end

Section 1.

new text begin EFFECTIVE DATE. new text end

Sec. 2.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

new text begin Subd. 8. new text end

new text begin Subd. 9. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 3.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 4.

Subd. 4.

Sec. 5.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

Sec. 6.

Subd. 5.

new text begin EFFECTIVE DATE. new text end

Sec. 7.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

Sec. 8.

Sec. 9.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

Sec. 10.

Subd. 13.

new text begin EFFECTIVE DATE. new text end

Sec. 11.

new text begin Subd. 5h. new text end

Sec. 12.

Subdivision 1.

Sec. 13.

new text begin Subd. 7. new text end

Sec. 14.

Subdivision 1.

Sec. 15.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

Sec. 16.

Subdivision 1.

Subd. 2.

Subd. 3.

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

new text begin Subd. 8. new text end

new text begin Subd. 9. new text end

Sec. 17.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 18.

Subd. 13.

Sec. 19.

Sec. 20.

Sec. 21.

Subd. 8.

new text begin EFFECTIVE DATE. new text end

Sec. 22.

Subd. 3b.

new text begin EFFECTIVE DATE. new text end

Sec. 23. new text begin COMMUNITY MEDICAL RESPONSE EMERGENCY MEDICAL
TECHNICIAN SERVICES COVERED UNDER THE MEDICAL ASSISTANCE
PROGRAM.
new text end

Sec. 24. new text begin EVALUATION OF COMMUNITY ADVANCED EMERGENCY
MEDICAL TECHNICIAN SERVICES.
new text end

Sec. 25. new text begin PROHIBITION ON USE OF FUNDS.
new text end

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

Section 1.

new text begin Subd. 10. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 2.

new text begin Subd. 11. new text end

Sec. 3.

new text begin Subd. 11. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 4.

new text begin Subd. 12. new text end

Sec. 5.

new text begin Subd. 12a. new text end

Sec. 6.

new text begin Subd. 14c. new text end

Sec. 7.

Subdivision 1.

Sec. 8.

Subdivision 1.

Sec. 9.

Subd. 2.

Sec. 10.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

Sec. 11.

Subd. 2.

Sec. 12.

new text begin Subd. 4a. new text end

Sec. 13.

Subd. 3.

Sec. 14.

Subd. 7.

Sec. 15.

new text begin Subd. 9. new text end

Sec. 16.

new text begin Subd. 10. new text end

Sec. 17.

new text begin Subd. 11. new text end

Sec. 18.

new text begin Subd. 12. new text end

Sec. 19.

new text begin Subd. 13. new text end

Sec. 20.

new text begin Subd. 14. new text end

Sec. 21.

new text begin Subd. 15. new text end

Sec. 22.

Subdivision 1.

Subd. 1a.

Subd. 1b.

Subd. 1c.

Subd. 2.

Subd. 2a.

Subd. 2b.

Subd. 2c.

new text begin Subd. 2d. new text end

new text begin Subd. 2e. new text end

new text begin Subd. 2f. new text end

new text begin Subd. 2g. new text end

Subd. 3.

Subd. 4.

new text begin EFFECTIVE DATE. new text end

Sec. 23.

Subd. 1c.

Sec. 24.

Subd. 1g.

Sec. 25.

Subd. 2.

new text begin EFFECTIVE DATE. new text end

Sec. 26.

Subd. 6.

new text begin EFFECTIVE DATE. new text end

Sec. 27.

Subd. 7.

Sec. 28.

Subd. 8.

new text begin EFFECTIVE DATE. new text end

Sec. 29.

Subd. 1a.

Sec. 30.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

Sec. 31.

Subd. 9.

Sec. 32.

Subd. 10.

Sec. 33.

Subd. 4.

Sec. 34.

Subdivision 1.

Sec. 35.

Subd. 2.

Sec. 36.

Subd. 3.

Sec. 37.

Subd. 5.

Sec. 38.

Subdivision 1.

Subd. 2.

Subd. 3.

Subd. 4.

Subd. 5.

Subd. 6.

new text begin Subd. 7. new text end

Sec. 39.

Subd. 27.

Sec. 40.

Subd. 32.

Sec. 41.

Sec. 42.

Subdivision 1.

Sec. 43.

new text begin Subd. 13. new text end

Sec. 44.

new text begin Subd. 14. new text end

Sec. 45.

Subdivision 1.

Sec. 46.

Subd. 2.

Sec. 47.

Subd. 6.

Sec. 48.

Subd. 5.

Sec. 49.

Subdivision 1.

Sec. 50.

Subd. 2.

Sec. 51.

Subd. 4.

Sec. 52.

Subd. 14.

Sec. 53.

Subd. 2.

Sec. 54.

Subdivision 1.

Sec. 55.

new text begin Subd. 8. new text end

Sec. 56.

Subdivision 1.

Sec. 57.

Subd. 3.

Sec. 58.

Subd. 4.

Sec. 59.

Subd. 14.

Sec. 60.

Subd. 15.

Sec. 61.

new text begin Subd. 1a. new text end

Sec. 62.

Subd. 3.

Sec. 63.

new text begin Subd. 3a. new text end

Sec. 64.

Sec. 65.

Subd. 4.

Sec. 66.

Sec. 67.

Sec. 68.

Subdivision 1.

Sec. 69.

Subd. 2.

Sec. 70.

Subd. 3.

Sec. 71.

Subd. 6a.

Sec. 72.

Subd. 7.

Sec. 73.

new text begin Subd. 7a. new text end

Sec. 74.

Subd. 10.

Sec. 75.

Subd. 10e.

Sec. 76.

Subd. 11c.

Sec. 77.

new text begin Subd. 16. new text end

Sec. 78.

new text begin Subd. 1b. new text end

Sec. 79.

Sec. 5.

Sec. 80.

Sec. 10.

Sec. 81.

Sec. 11.

Sec. 82.

Sec. 16.

Sec. 83.

Sec. 17.

Sec. 84.

Sec. 18.

Sec. 85.

Sec. 19.

Sec. 86.

Sec. 23.

Sec. 87.

Sec. 24.

Sec. 88.

Sec. 27.

Sec. 89.

Sec. 28.

Sec. 90.

Sec. 29.

Sec. 91.

Sec. 31.

Sec. 92.

Sec. 43.

Sec. 93.

Sec. 50.

Sec. 94.

Sec. 51.

Sec. 95.

Sec. 73. EFFECTIVE DATE.

new text begin EFFECTIVE DATE. new text end

Sec. 96. new text begin CHILD SUPPORT WORK GROUP.
new text end

Sec. 97. new text begin INSTRUCTIONS TO COMMISSIONER; SCREENING GUIDELINES.
new text end

Sec. 98. new text begin INSTRUCTIONS TO THE COMMISSIONER; CHILD
MALTREATMENT SCREENING GUIDELINES.
new text end

Sec. 99. new text begin COMMISSIONER'S DUTY TO PROVIDE TRAINING TO CHILD
PROTECTION SUPERVISORS.
new text end

Sec. 100. new text begin CHILD PROTECTION UPDATED FORMULA.
new text end

Sec. 101. new text begin LEGISLATIVE TASK FORCE; CHILD PROTECTION.
new text end

Section 1.

Subd. 2.

Sec. 2.

Subd. 7.

Sec. 3.

Subd. 3.

Sec. 4.

Subd. 5.

Sec. 5.

Subd. 2.

Sec. 6.

Subd. 4.

Sec. 7.

Subd. 6.

Sec. 8.

Subd. 7.

Sec. 9.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

Sec. 10.

new text begin Subd. 45a. new text end

new text begin EFFECTIVE DATE. new text end

Sec. 11.

Sec. 12. new text begin REPORT TO LEGISLATURE; PERFORMANCE MEASURES FOR
CHEMICAL DEPENDENCY TREATMENT SERVICES.
new text end

Sec. 13. new text begin RATE-SETTING METHODOLOGY FOR COMMUNITY-BASED
MENTAL HEALTH SERVICES.
new text end

Sec. 14. new text begin EXCELLENCE IN MENTAL HEALTH DEMONSTRATION PROJECT.
new text end

Sec. 15. new text begin CLUBHOUSE PROGRAM SERVICES.
new text end

Sec. 16. new text begin SPECIAL PROJECTS; INTENSIVE TREATMENT AND SUPPORTS.
new text end

Sec. 17. new text begin INSTRUCTIONS TO THE COMMISSIONER.
new text end

Sec. 18. new text begin MENTAL HEALTH CRISIS SERVICES.
new text end

Sec. 19. new text begin COMPREHENSIVE MENTAL HEALTH CENTER.
new text end

Sec. 20. new text begin REPORT ON INTENSIVE COMMUNITY REHABILITATION
SERVICES.
new text end

Sec. 21. new text begin COMMISSIONER'S DUTIES RELATED TO PEER SPECIALIST
TRAINING AND OUTREACH.
new text end

Sec. 22. new text begin INSTRUCTIONS TO THE COMMISSIONER.
new text end

Section 1.

new text begin EFFECTIVE DATE. new text end

Sec. 2.

Subd. 4c.

Sec. 3.

Subd. 5.

Sec. 4. new text begin CLOSURE OF FACILITY PROHIBITED.
new text end

Sec. 5. new text begin CLOSURE OF FACILITY PROHIBITED.
new text end

Section 1.

Sec. 2.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

new text begin Subd. 8. new text end

new text begin Subd. 9. new text end

new text begin Subd. 10. new text end

new text begin Subd. 11. new text end

new text begin Subd. 12. new text end

new text begin Subd. 13. new text end

new text begin Subd. 14. new text end

new text begin Subd. 15. new text end

new text begin Subd. 16. new text end

new text begin Subd. 17. new text end

new text begin Subd. 18. new text end

new text begin Subd. 19. new text end

new text begin Subd. 20. new text end

new text begin Subd. 21. new text end

new text begin Subd. 22. new text end

new text begin Subd. 23. new text end

new text begin Subd. 24. new text end

new text begin Subd. 25. new text end

Sec. 3.

Sec. 4.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

Sec. 5.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

Sec. 6.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

Sec. 7.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

Sec. 8.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

Sec. 9.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

Sec. 10.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

Sec. 11.

Sec. 12.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

Sec. 13.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

Sec. 14.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

Sec. 15.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

new text begin Subd. 8. new text end

Sec. 16.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

Sec. 17.

Sec. 18.

Section 1.

Subd. 28.

Sec. 2.

Subd. 4.

Sec. 3.

Subd. 6.

Sec. 4.

new text begin Subd. 12. new text end

Sec. 5.

Subdivision 1.

Sec. 6.

Subd. 2.

Sec. 7.

Subdivision 1.

Sec. 8.

Sec. 9.

Sec. 10.

Sec. 11.

Subdivision 1.

Sec. 12.

Subd. 2.

Sec. 13.

new text begin Subd. 5. new text end

Sec. 14.

Sec. 15.

Subd. 2.

Sec. 16.

Sec. 17.

Sec. 18.

Sec. 19.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

Sec. 20.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

Sec. 21.

Sec. 22.

Sec. 23.

Subdivision 1.

new text begin Subd. 1a. new text end

new text begin Subd. 1b. new text end

Subd. 2.

Subd. 3.

deleted text begin Subd. 4. deleted text end

deleted text begin Subd. 5. deleted text end

deleted text begin Subd. 6. deleted text end

deleted text begin Subd. 7. deleted text end

Subd. 8.

Sec. 24.

Subdivision 1.

Sec. 25.

Subd. 2.

Sec. 26.

Subd. 2.

Sec. 27.

Subd. 5.

Sec. 28.

Subd. 4.

Sec. 29.

Subd. 5.

Sec. 30.

Subd. 11.

Sec. 31.

new text begin Subd. 17. new text end

Sec. 32.

new text begin Subd. 18. new text end

Sec. 33.

Sec. 34.

Subd. 15a.

Sec. 35.

Subd. 27.

Sec. 36.

Sec. 37.

Subdivision 1.

Sec. 38.

Subd. 2.

Sec. 39.

Subd. 3.

Sec. 40.

Subd. 4.

Sec. 41.

Subdivision 1.

Subd. 2.

Subd. 3.

Sec. 42.

Sec. 43.

Subd. 2.

Sec. 44.

Subd. 2a.

Sec. 45.

Subd. 6.

Sec. 46. new text begin REPEALER.
new text end

Section 1.

Subd. 15.

Sec. 2.

Subdivision 1.

Sec. 3.

Subd. 4.

Sec. 4.

Subd. 4.

Sec. 5.

Subd. 1a.

Sec. 6.

new text begin Subd. 1a. new text end

Sec. 7.

new text begin Subd. 1b. new text end

Sec. 8.

Subd. 8.

Sec. 9.

Subdivision 1.

Sec. 10.

Subd. 3.

Sec. 11.

new text begin Subd. 1b. new text end

Sec. 12.

Subd. 7.

Sec. 13.

Subdivision 1.

Sec. 14.

Subd. 6.

Sec. 15.

Subd. 26.

Sec. 16.

Subd. 86.

Sec. 17.

Subdivision 1.

Sec. 18.

Subd. 9.

Sec. 19.

Sec. 20.

Sec. 21.

Subd. 19.

Sec. 22.

Sec. 23.

new text begin Subd. 2a. new text end

Sec. 24.

Subd. 3.

Sec. 25.

new text begin Subd. 8. new text end

Sec. 26.

new text begin Subd. 1a. new text end

Sec. 27.

Subdivision 1.

Sec. 28.

Subdivision 1.

Sec. 29.

Subd. 4.

Sec. 30.

Subdivision 1.

Sec. 31.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

Sec. 32.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

Sec. 33.

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

new text begin Subd. 8. new text end

new text begin Subd. 9. new text end

new text begin Subd. 10. new text end

new text begin Subd. 11. new text end

Sec. 34. new text begin REPEALER.
new text end

Sec. 35. new text begin EFFECTIVE DATE.
new text end

Section 1. new text begin DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT.
new text end

Sec. 2. new text begin COMMISSIONER OF HUMAN
SERVICES
new text end

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

Section 1. new text begin HEALTH AND HUMAN SERVICES APPROPRIATIONS.new text end

Sec. 2. new text begin COMMISSIONER OF HUMAN
SERVICES
new text end

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

Sec. 3. new text begin COMMISSIONER OF HEALTH
new text end

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

Sec. 4. new text begin HEALTH-RELATED BOARDS
new text end

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

new text begin Subd. 3. new text end

new text begin Subd. 4. new text end

new text begin Subd. 5. new text end

new text begin Subd. 6. new text end

new text begin Subd. 7. new text end

new text begin Subd. 8. new text end

new text begin Subd. 9. new text end

new text begin Subd. 10. new text end

new text begin Subd. 11. new text end

new text begin Subd. 12. new text end

new text begin Subd. 13. new text end

new text begin Subd. 14. new text end

new text begin Subd. 15. new text end

new text begin Subd. 16. new text end

Sec. 5. new text begin EMERGENCY MEDICAL SERVICES
REGULATORY BOARD
new text end

Sec. 6. new text begin COUNCIL ON DISABILITY
new text end

Sec. 7. new text begin OMBUDSMAN FOR MENTAL
HEALTH AND DEVELOPMENTAL
DISABILITIES
new text end

Sec. 8. new text begin OMBUDSPERSONS FOR FAMILIES
new text end

Sec. 9. new text begin COMMISSIONER OF COMMERCE
new text end

Sec. 10. new text begin APPROPRIATION.
new text end

new text begin EFFECTIVE DATE. new text end

Sec. 11.

new text begin Subd. 40. new text end

Sec. 12. new text begin TRANSFERS.
new text end

new text begin Subdivision 1. new text end

new text begin Subd. 2. new text end

Sec. 13. new text begin INDIRECT COSTS NOT TO FUND PROGRAMS.
new text end

Sec. 14. new text begin EXPIRATION OF UNCODIFIED LANGUAGE.
new text end

Sec. 15. new text begin EFFECTIVE DATE.
new text end

Bill Text Versions

Section 1.

Sec. 2.

Subd. 1b.

Sec. 3.

Subd. 2.

Sec. 4.

Subd. 5.

Sec. 5.

Subd. 2b.

Sec. 6.

Subd. 9.

Sec. 7.

Subd. 5c.

new text begin EFFECTIVE DATE. new text end

Sec. 8.

new text begin Subd. 9b. new text end

Sec. 9.

Subd. 13.

new text begin EFFECTIVE DATE. new text end

Sec. 10.

Subd. 13e.

new text begin EFFECTIVE DATE. new text end

Sec. 11.

Subd. 13h.

Sec. 12.

Subd. 17.

Sec. 13.

Subd. 28a.

Sec. 14.

Subd. 31.

Sec. 15.

Subd. 58.

Sec. 16.

Subdivision 1.

Subd. 2.

Subd. 3.

new text begin EFFECTIVE DATE. new text end

Sec. 17.

new text begin EFFECTIVE DATE. new text end

Sec. 18.

Sec. 19.

Subd. 5a.

Sec. 20.

Subd. 5i.

Sec. 21.

Subd. 9c.

Sec. 22.

Subd. 9d.

Sec. 23.

new text begin Subd. 9e. new text end

Sec. 32. new text begin ADVISORY GROUP ON ADMINISTRATIVE EXPENSES.
new text end

Sec. 33. new text begin CAPITATION PAYMENT DELAY.
new text end

Sec. 34. new text begin HEALTH AND ECONOMIC ASSISTANCE PROGRAM ELIGIBILITY
VERIFICATION AUDIT SERVICES.
new text end

Sec. 35. new text begin REQUEST FOR PROPOSALS.
new text end

Sec. 36. new text begin FEDERAL WAIVER OR APPROVAL.
new text end

Resident dentists.

Definitions.

Operation of automated drug distribution systems.

Hospital payment rates.

Disproportionate numbers of low-income patients served.

Excess income standard.

new text begin Dental services provided by faculty members and resident dentists
at a dental school. new text end

Drugs.

Payment rates.

Medication therapy management services.

Transportation costs.

Licensed physician assistant services.

Medical supplies and equipment.

Early and periodic screening, diagnosis, and treatment services.

Cost-sharing.

Exceptions.

Collection.

Managed care contracts.

Administrative expenses.

Managed care financial reporting.

Financial deleted text begin auditdeleted text end new text begin and quality assurance auditsnew text end .

new text begin Financial audits. new text end

Physician reimbursement.

Dental reimbursement.

Basic Health Care Grants

new text begin Duties. new text end

new text begin Membership. new text end

new text begin Request for proposals. new text end

new text begin Additional vendor criteria. new text end

new text begin Contract required. new text end

new text begin Health and economic assistance program. new text end

Wrongfully obtaining assistance.

Projects.

Family.

Income.

Cost-sharing.

General requirements.

Annual income limits adjustment.

Citizenship requirements.

new text begin Eligibility and coverage. new text end

Effective date of coverage.

deleted text begin Renewaldeleted text end new text begin Redeterminationnew text end of eligibility.

Application processing.

Commissioner's duties and payment.

Competitive process.

Debt.

Disclosure to commissioner of human services.

new text begin MinnesotaCare program. new text end

new text begin Conforming repealers. new text end

Group II salary limits.

Approval.

new text begin Consumer assistance partner. new text end

Application of other law.

Board.

Appointment.

Conflicts of interest.

General.

Health carrier and health plan requirements; new text begin MNsure new text end participation.

Appeals.

new text begin Health carrier notification. new text end

new text begin Purchase of individual health coverage. new text end

new text begin Prohibition on other product lines. new text end

Membership; meetings; compensation.

new text begin Reports to the committee. new text end

new text begin MNsure consumer assistance partners. new text end

new text begin MNsure consumer assistance partners. new text end

new text begin Background studies for consumer assistance partners. new text end

new text begin Establishment. new text end

new text begin Implementation plan; draft legislation. new text end

new text begin Vendor contract. new text end

new text begin Contingent implementation. new text end

new text begin ABLE accounts and designated beneficiaries. new text end

new text begin Correction orders and conditional licenses for programs licensed as
home and community-based services. new text end

Licensed foster care and respite care.

Foster care agency requirements.

Abuse prevention plans.

new text begin Working day. new text end

Health needs.

Medication administration.

Incident response and reporting.

Environment and safety.

Permitted actions and procedures.

Service planning requirements for basic support services.

Service plan review and evaluation.

Staff qualifications.

Annual training.

First aid must be available on site.

Staff ratio requirement for each person receiving services.

Person requiring staff ratio of one to four.

Person requiring staff ratio of one to eight.

Contribution amount.

Duties.

new text begin Regional and local dementia grants. new text end

Employed persons with disabilities.

Distribution of funds; partnerships.

Excess spending.

new text begin Use of waiver allocations. new text end

State Quality Council.

Regional quality councils.

Excess allocations.

new text begin Use of waiver allocations. new text end

Rate stabilization adjustment.

Stakeholder consultationnew text begin and county trainingnew text end .

Definitions.

Payments for residential support services.

Payments for unit-based services with programming.

Updating payment values and additional information.

Exceptions.

County or tribal allocations.

new text begin Historical rate. new text end

new text begin Residential support services. new text end

new text begin Day programs. new text end

new text begin Unit-based services with programming. new text end

new text begin Unit-based services without programming. new text end

new text begin ICF/DD rate increase effective July 1, 2016. new text end

new text begin Scope. new text end

new text begin ABLE account. new text end

new text begin ABLE account plan or plan. new text end

new text begin Account. new text end

new text begin Account owner. new text end

new text begin Annual contribution limit. new text end

new text begin Application. new text end

new text begin Board. new text end

new text begin Commissioner. new text end

new text begin Contribution. new text end

new text begin Department. new text end

new text begin Designated beneficiary or beneficiary. new text end

new text begin Earnings. new text end

new text begin Eligible individual. new text end

new text begin Executive director. new text end

new text begin Internal Revenue Code. new text end

new text begin Investment in the account. new text end

new text begin Member of the family. new text end

new text begin Participation agreement. new text end

new text begin Person. new text end

new text begin Plan administrator. new text end

new text begin Qualified disability expense. new text end

new text begin Qualified distribution. new text end

new text begin Rollover distribution. new text end

new text begin Total account balance. new text end

new text begin State residency requirement. new text end

new text begin Single account requirement. new text end

new text begin Accounts-type plan. new text end

new text begin Contribution and account requirements. new text end

new text begin Limited investment direction. new text end

new text begin Security for loans. new text end

new text begin Plan to comply with federal law. new text end

new text begin Plan rules and procedures. new text end

new text begin Consultation with other state agencies; annual fee. new text end

new text begin Administration. new text end

new text begin Authority to impose fees. new text end

new text begin Federally mandated reporting. new text end

new text begin Data. new text end

new text begin Contributions to an account. new text end

new text begin Contribution and account limitations. new text end

new text begin Authority of account owner. new text end

new text begin Effect of plan changes on participation agreement. new text end

new text begin Special account to hold plan assets in trust. new text end

new text begin State Board of Investment to invest. new text end

new text begin Permitted investments. new text end

new text begin Contracting authority. new text end

new text begin Qualified distribution methods. new text end

new text begin Distributions upon death of beneficiary. new text end

new text begin Nonqualified distribution. new text end

new text begin Creation. new text end

new text begin Provision of grants. new text end

new text begin Eligibility. new text end

new text begin Home and community-based services employee scholarship program.
new text end

new text begin Participating providers. new text end

new text begin Application requirements. new text end

new text begin Selection process. new text end

new text begin Reporting requirements. new text end

Exceptions for replacement beds.

Eligibility for funding for services for nonmedical assistance recipients.

Elderly waiver cost limits.

Customized living service rate.

Service rate limits; 24-hour customized living services.

Operating costs after July 1, 1985.

Employee scholarship costs and training in English as a second
language.

Alternate rates for nursing facilities.

new text begin Construction project rate adjustments for certain nursing facilities.
new text end

deleted text begin Rebasingdeleted text end new text begin Calculationnew text end of nursing facility operating payment
rates.

Administrative costs.

Allowed costs.

new text begin Employer health insurance costs. new text end

External fixed costs.

Facility average case mix index.

Fringe benefit costs.

deleted text begin Peer groupsdeleted text end new text begin Median total care-related cost per diem and other
operating per diem determinednew text end .

Prior system operating cost payment rate.

Rate year.

Reporting period.

Standardized days.

Calculation of a quality score.

Quality improvement incentive system beginning October 1, 2015.

new text begin Performance-based incentive payments. new text end

Calculation of deleted text begin operatingdeleted text end new text begin care-relatednew text end per diems.

Determination of total care-related limit.

Determination of other operating deleted text begin limitdeleted text end new text begin pricenew text end .

Exception deleted text begin allowing contractingdeleted text end for specialized carenew text begin facilitiesnew text end .

new text begin Special dietary needs. new text end

Calculation of payment rate for external fixed costs.

Determination of total payment rates.

Alternative to phase-in for publicly owned nursing facilities.

Hold harmless.

Critical access nursing facilities.

new text begin Nursing facility in Golden Valley. new text end

new text begin Nursing facilities in border cities. new text end

new text begin Nursing facility; contract with insurance provider. new text end

Scope.

Monthly rates; exemptions.

new text begin Applicability. new text end

new text begin Distant site. new text end

new text begin Health care provider. new text end

new text begin Heath carrier. new text end

new text begin Health plan. new text end

new text begin Licensed health care provider. new text end

new text begin Originating site. new text end

new text begin Store-and-forward technology. new text end

new text begin Telemedicine. new text end

new text begin Coverage of telemedicine. new text end

new text begin Parity between telemedicine and in-person services. new text end

new text begin Reimbursement for telemedicine services. new text end

License required.

new text begin Definitions. new text end

new text begin Expansion grant program. new text end

new text begin Applications for expansion grants. new text end

new text begin Consideration of expansion grant applications. new text end

new text begin Program oversight. new text end

Exceptions to consent requirement.

new text begin Observation stay notice. new text end

new text begin Postacute care discharge planning. new text end

new text begin Definitions. new text end

new text begin Commissioner duties. new text end

new text begin Obtaining and storing epinephrine auto-injectors. new text end

new text begin Use of epinephrine auto-injectors. new text end

new text begin Training. new text end

new text begin Good samaritan protections. new text end

Residential hospice facility.

new text begin Community medical response emergency medical technician.
new text end

Definition.

new text begin Community medical response emergency medical technician. new text end

Forms.

new text begin License required for facilities that perform ten or more abortions
per month. new text end

new text begin Inspections; no notice required. new text end

new text begin Licensure fee. new text end

new text begin Suspension, revocation, and refusal to renew. new text end

new text begin Hearing. new text end

new text begin Severability. new text end

Recognition; medical care.

Physician required.

Death.

new text begin Definition of born alive infant. new text end

new text begin Civil and disciplinary actions. new text end

new text begin Protection of privacy in court proceedings. new text end

new text begin Status of born alive infant. new text end

new text begin Severability. new text end

new text begin Short title. new text end

new text begin Short title. new text end

new text begin Definitions. new text end

new text begin Health care practitioner duty. new text end

new text begin Commissioner duties. new text end

deleted text begin Reportdeleted text end new text begin Reportsnew text end .

Lodging establishment.

Telemedicine deleted text begin consultationsdeleted text end new text begin servicesnew text end .

new text begin Use of funds. new text end

new text begin Severability. new text end

new text begin Providers of group residential housing or supplementary services.
new text end

new text begin Child protection workers or social services staff having responsibility
for child protective duties. new text end

new text begin Providers of group residential housing or supplementary services.
new text end

new text begin Child protection workers or social services staff having responsibility
for child protective duties. new text end

new text begin Department of Human Services child fatality and near fatality
review team. new text end

new text begin Early intervention support and services for at-risk American Indian
families. new text end

Authority and purpose.

Definitions.

Assignment of support and maintenance rights.

new text begin Child welfare disparities grant program established. new text end

new text begin State-community partnerships; plan. new text end

new text begin Measurable outcomes. new text end

new text begin Process. new text end

new text begin Grant program criteria. new text end

new text begin Evaluation. new text end

new text begin American Indian child welfare projects. new text end

Definitions.

new text begin Financial coaching. new text end

Group residential housing.

Countable income.

new text begin Direct contact. new text end

new text begin Habitability inspection. new text end

new text begin Long-term homelessness. new text end

new text begin Professional certification. new text end

new text begin Prospective budgeting. new text end

new text begin Qualified professional. new text end

new text begin Supportive housing. new text end

Individual eligibility requirements.

County approval.

Optional state supplements to SSI.

Interim assistance.

Date of eligibility.

License requirednew text begin ; staffing qualificationsnew text end .

Group residential housing agreements.

deleted text begin Crisis sheltersdeleted text end new text begin Background study requirementsnew text end .

new text begin Conditions of payment; commissioner's right to suspend or terminate
agreement. new text end

new text begin Providers holding health or human services licenses. new text end

new text begin Required services. new text end

new text begin Crisis shelters. new text end

Moratorium on development of group residential housing beds.

Rental assistance.

Rate increases.

Supplementary service rate for certain facilities.

Time of payment.

Reports.

Determination of rates.

Amount of group residential housing payment.

Definitions.

new text begin Formula for county staffing funds. new text end

new text begin Prohibition on supplanting existing funds. new text end

new text begin Payments based on performance. new text end

Death new text begin or incapacity new text end of relative custodian or deleted text begin dissolutiondeleted text end new text begin modification
new text end of custody.

Assigning a new text begin successor relative custodian for a new text end child's Northstar
kinship assistance deleted text begin to a court-appointed guardian or custodiandeleted text end .

Extraordinary levels.

Agreement; Northstar kinship assistance; adoption assistance.

State share.

Effect of recognition.

Recognition form.

General information.

new text begin Purchase of service contract new text end child eligibility criteria.

Agency eligibility criteria.

Application and eligibility determination.

Reimbursement process.

Retention of purchase of service records.

new text begin Tribal customary adoptions. new text end

Relative.

Sibling.

Out-of-home placement; plan.

new text begin Protecting missing and runaway children and youth at risk of sex
trafficking. new text end

new text begin Support normalcy for foster children. new text end

Care, examination, or treatment.

Independent living plan.

Reentering foster care and accessing services after age 18.

Permanent custody to agency.

Child in permanent custody of responsible social services agency.

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

Content of review.

Obligor.

Methods.

Authority.

new text begin Medical support-only modification. new text end

Definitions.

Determining appropriate health care coverage.

Ordering health care coverage.

Child support enforcement services.

Enforcement.

new text begin Income disparity between parties. new text end

Contents of pleadings.

new text begin Contents of pleadings for medical support modifications. new text end

Collection services.

Public policy.

Definitions.

Persons mandated to report.

Failure to notify.

Report; information provided to parent.

new text begin Guidance for screening reports. new text end

Duties of local welfare agency and local law enforcement agency upon
receipt of report.

Determinations.

Welfare, court services agency, and school records maintained.

new text begin Commissioner's duty to provide oversight; quality assurance reviews;
annual summary of reviews. new text end

new text begin Background studies. new text end

General.

Mental health data.

Emergency services.

Exceptions to consent requirement.

Community-based programs.

Collection and reporting suicide data.

Restricted access to data.

Restricted access to data.

new text begin Excellence in Mental Health demonstration project. new text end

new text begin Federal proposal. new text end

new text begin Reform projects. new text end

new text begin Public participation. new text end

new text begin Information systems support. new text end

new text begin Psychiatric residential treatment facility services for persons under
21 years of age. new text end

Special review board.

Petition; notice of hearing; attendance; order.

new text begin Scope. new text end

new text begin Administration of medications. new text end

new text begin Alcohol and drug counselor. new text end

new text begin Applicant. new text end

new text begin Care coordination. new text end

new text begin Chemical. new text end

new text begin Clinically managed program. new text end

new text begin Commissioner. new text end

new text begin Department. new text end

new text begin Direct patient contact. new text end

new text begin Discharge plan. new text end

new text begin Licensed practitioner. new text end

new text begin Medical director. new text end

new text begin Medically monitored program. new text end

new text begin Nurse. new text end

new text begin Patient. new text end

new text begin Peer recovery support services. new text end

new text begin Program director. new text end

new text begin Protective procedure. new text end

new text begin Recovery peer. new text end

new text begin Responsible staff person. new text end

new text begin Substance. new text end

new text begin Substance use disorder. new text end

new text begin Technician. new text end

new text begin Withdrawal management program. new text end

new text begin General application and license requirements. new text end

new text begin Contents of application. new text end

new text begin Changes in license terms. new text end

new text begin Variances. new text end

new text begin Admission policy. new text end

new text begin Admission criteria. new text end

new text begin Individuals denied admission by program. new text end

new text begin License holder responsibilities; denying admission or terminating
services. new text end

new text begin Discharge and transfer policies. new text end

new text begin Screening for substance use disorder. new text end

new text begin Comprehensive assessment. new text end

new text begin Stabilization plan. new text end

new text begin Progress notes. new text end

new text begin Discharge plan. new text end

new text begin General. new text end

new text begin Care coordination. new text end

new text begin Peer recovery support services. new text end

new text begin Patient education. new text end

new text begin Mutual aid, self-help, and support groups. new text end

new text begin Use of protective procedures. new text end

new text begin Protective procedures plan. new text end

new text begin Records. new text end

new text begin Use of law enforcement. new text end

new text begin Administrative review. new text end

new text begin Patient rights. new text end

new text begin Grievance procedure. new text end

new text begin Services provided at all programs. new text end

new text begin Services provided at clinically managed programs. new text end

new text begin Services provided at medically monitored programs. new text end

new text begin Administration of medications. new text end

new text begin Control of drugs. new text end

new text begin Program director. new text end

new text begin Responsible staff person. new text end

new text begin Technician required. new text end

new text begin Registered nurse required. new text end

new text begin Medical director required. new text end

new text begin Alcohol and drug counselor. new text end

new text begin Ensuring staff-to-patient ratio. new text end

new text begin Qualifications for all staff who have direct patient contact. new text end

new text begin Continuing employment; no substance use problems. new text end

new text begin Program director qualifications. new text end

new text begin Alcohol and drug counselor qualifications. new text end

new text begin Responsible staff person qualifications. new text end

new text begin Technician qualifications. new text end

new text begin Recovering peer qualifications. new text end

new text begin Personal relationships. new text end

new text begin Policy requirements. new text end

new text begin Staff development. new text end

Supervision.

Licensure requirements.

Licensure term; renewal.

new text begin Required supervised experience. new text end

Proof of age.

Parent or legal guardian consent; prohibitions.

Grounds listed.

Examination.

Endorsement.

new text begin Change of address. new text end

deleted text begin Board certifieddeleted text end new text begin Requirementsnew text end defined.

new text begin Permission to report. new text end

new text begin Institutions. new text end

new text begin Licensed professionals. new text end

new text begin Self-reporting. new text end

new text begin Deadlines; forms; rulemaking. new text end

new text begin Subpoenas. new text end

new text begin Reporting. new text end

new text begin Investigation; indemnification. new text end

deleted text begin Inactive statusdeleted text end new text begin Temporary leave licensenew text end .

new text begin Emeritus inactive license. new text end

new text begin Emeritus active license. new text end

Application.

Fee.

deleted text begin Time limits for temporary leaves. deleted text end

deleted text begin Time limits for emeritus license. deleted text end

deleted text begin Prohibition on practice. deleted text end

deleted text begin Representations of professional status. deleted text end

Disciplinary or other action.

Mailing notices to licensees on temporary leave.

Reactivation from a temporary leave or emeritus status.

License fees.

Late fees.

Annual license fees.

Biennial license or permit fees.

Certificate application fee for anesthesia/sedation.

new text begin Advanced dental therapy examination fee. new text end

new text begin Corporation or professional firm late fee. new text end

Pharmacy technician.

Practice of pharmacy.

Application fees.

Original license fee.

Annual renewal fees.

Miscellaneous fees.

General.

Waivers by board permitted.

Registration fee.

Investigation and hearing.

Proceedings.

Duties of a participating board.

Income.

Factors which must be verified.

Assistance.

Eligibility; annual income; calculation.

Standards.

new text begin Assistance unit. new text end

new text begin Cash assistance benefit. new text end

Income.

Eligibility; amount of assistance.

Reports.

new text begin Assistance unit. new text end

Countable income.

Individual eligibility requirements.

Reports.

Earned income.

Unearned income.

Applicant reporting requirements.

Changes that must be reported.

DWP overpayments and underpayments.

new text begin Assistance unit. new text end

Earned income.

new text begin Unearned income. new text end

new text begin Exemption. new text end

Exempted programs.

Exemption.

Factors to be verified.

Exempted programs.

new text begin Reporting of income. new text end

new text begin Exempted individuals. new text end

new text begin Income inclusions. new text end

new text begin Exempted programs. new text end

new text begin Reporting requirements. new text end

new text begin Changes that must be reported. new text end

new text begin MFIP-specific reporting. new text end

new text begin DWP-specific reporting. new text end

new text begin Child care assistance programs-specific reporting. new text end

new text begin Minnesota supplemental aid-specific reporting. new text end

new text begin Exempted programs. new text end

new text begin Scope of overpayment. new text end

new text begin Notice of overpayment. new text end

new text begin Recovering general assistance and Minnesota supplemental aid
overpayments. new text end

new text begin Recovering MFIP overpayments. new text end

new text begin Recouping overpayments from MFIP participants. new text end

new text begin Recovering automatic teller machine errors. new text end

new text begin Scope of underpayments. new text end

new text begin Identifying the underpayment. new text end

new text begin Issuing corrective payments. new text end

new text begin Appeals. new text end

new text begin Total Appropriation
new text end

new text begin Forecasted Programs
new text end

new text begin Technical Activities
new text end

new text begin Total Appropriation
new text end

new text begin Central Office
new text end

new text begin Forecasted Programs
new text end

new text begin Grant Programs
new text end

new text begin DCT State-Operated Services
new text end

new text begin DCT Minnesota Sex Offender
Program
new text end

new text begin Technical Activities
new text end

new text begin Total Appropriation
new text end

new text begin Health Improvement
new text end

new text begin Health Protection
new text end

new text begin Administrative Support Services
new text end

new text begin Total Appropriation
new text end

new text begin Board of Chiropractic Examiners
new text end

new text begin Board of Dentistry
new text end

new text begin Board of Dietetics and Nutrition
Practice
new text end

new text begin Board of Marriage and Family
Therapy
new text end

new text begin Board of Medical Practice
new text end

new text begin Board of Nursing
new text end

new text begin Board of Nursing Home
Administrators
new text end

new text begin Board of Optometry
new text end

new text begin Board of Pharmacy
new text end

new text begin Board of Physical Therapy
new text end

new text begin Board of Podiatry
new text end

new text begin Board of Psychology
new text end

new text begin Board of Social Work
new text end

new text begin Board of Veterinary Medicine
new text end

new text begin Board of Behavioral Health and
Therapy
new text end

new text begin Nonfederal share transfers. new text end

new text begin Grants. new text end

new text begin Administration. new text end

Resident dentists.

Definitions.

Operation of automated drug distribution systems.

Hospital payment rates.

Disproportionate numbers of low-income patients served.

Excess income standard.

new text begin Dental services provided by faculty members and resident dentists at a dental school. new text end

Drugs.

Payment rates.

Medication therapy management services.

Transportation costs.

Licensed physician assistant services.

Medical supplies and equipment.

Early and periodic screening, diagnosis, and treatment services.

Cost-sharing.

Exceptions.

Collection.

Managed care contracts.

Administrative expenses.

Managed care financial reporting.

Financial deleted text begin auditdeleted text end new text begin and quality assurance auditsnew text end .

new text begin Financial audits. new text end

new text begin Dental services provided by faculty members and resident dentists
at a dental school. new text end

Engrossments
Introduction		Posted on 03/05/2015
1st Engrossment		Posted on 04/23/2015
2nd Engrossment		Posted on 04/24/2015
3rd Engrossment		Posted on 05/27/2015

Unofficial Engrossments
1st Unofficial Engrossment		Posted on 04/29/2015

Conference Committee Reports
CCR-SF1458		Posted on 05/17/2015

A bill for an act
relating to state government; establishing the health and human services
budget; modifying provisions governing health care, MinnesotaCare, MNsure,
continuing care, nursing facility payments and workforce development, public
health and health care delivery, children and family services, chemical and
mental health, direct care and treatment, withdrawal management programs,
and health-related licensing boards; establishing uniform requirements for
public assistance programs related to income calculation, reporting income,
and correcting overpayments and underpayments; making changes to medical
assistance, home and community-based services, Northstar Care for Children,
child protection, group residential housing, child support, and civil commitment;
making changes to and eliminating MinnesotaCare; establishing a federally
facilitated marketplace; providing for certain provider rate and grant increases;
establishing the Minnesota ABLE plan and accounts; modifying requirements
for administrative expenses and audits of certain public health care programs;
providing for protection of born alive infants; regulating certain facilities that
perform abortions; establishing standards for withdrawal management programs;
requiring reports and studies; authorizing rulemaking; making technical changes;
modifying certain fees for health-related licensing boards; making human
services forecast adjustments; appropriating money; amending Minnesota
Statutes 2014, sections 13.46, subdivisions 2, 7; 13.461, by adding a subdivision;
15A.0815, subdivision 3; 43A.241; 62A.02, subdivision 2; 62A.045; 62Q.55,
subdivision 3; 62V.02, by adding a subdivision; 62V.03, subdivision 2; 62V.04,
subdivisions 1, 2, 4; 62V.05, subdivisions 1, 5, 6, by adding subdivisions; 62V.11,
subdivision 2, by adding a subdivision; 103I.205, subdivision 4; 119B.011,
subdivision 15; 119B.025, subdivision 1; 119B.035, subdivision 4; 119B.09,
subdivision 4; 144.293, subdivision 5; 144A.071, subdivision 4a; 144A.75,
subdivision 13; 144E.001, by adding a subdivision; 144E.275, subdivision 1, by
adding a subdivision; 145.4131, subdivision 1; 145.423; 145.56, subdivisions
2, 4; 145.928, subdivision 13; 146B.01, subdivision 28; 146B.03, subdivisions
4, 6, by adding a subdivision; 146B.07, subdivisions 1, 2; 147.091, subdivision
1; 148.271; 148.52; 148.54; 148.57, subdivisions 1, 2, by adding a subdivision;
148.574; 148.575, subdivision 2; 148.577; 148.59; 148.603; 148E.075;
148E.080, subdivisions 1, 2; 148E.180, subdivisions 2, 5; 150A.06, subdivision
1b; 150A.091, subdivisions 4, 5, 11, by adding subdivisions; 150A.31; 151.01,
subdivisions 15a, 27; 151.02; 151.065, subdivisions 1, 2, 3, 4; 151.102;
151.58, subdivisions 2, 5; 152.34; 157.15, subdivision 8; 214.077; 214.10,
subdivisions 2, 2a; 214.32, subdivision 6; 245.467, subdivision 6; 245.4876,
subdivision 7; 245A.06, by adding a subdivision; 245A.155, subdivisions 1, 2;
245A.65, subdivision 2; 245C.03, by adding subdivisions; 245C.10, by adding
subdivisions; 245D.02, by adding a subdivision; 245D.05, subdivisions 1, 2;
245D.06, subdivisions 1, 2, 7; 245D.07, subdivision 2; 245D.071, subdivision
5; 245D.09, subdivisions 3, 5; 245D.22, subdivision 4; 245D.31, subdivisions
3, 4, 5; 252.27, subdivision 2a; 253B.18, subdivisions 4c, 5; 256.01, by
adding subdivisions; 256.017, subdivision 1; 256.478; 256.741, subdivisions
1, 2; 256.962, by adding a subdivision; 256.969, subdivisions 2b, 9; 256.975,
subdivision 2, by adding a subdivision; 256.98, subdivision 1; 256B.021,
subdivision 4; 256B.056, subdivision 5c; 256B.057, subdivision 9; 256B.0625,
subdivisions 3b, 13, 13e, 13h, 17, 28a, 31, 58, by adding subdivisions;
256B.0631; 256B.0644; 256B.0913, subdivision 4; 256B.0915, subdivisions
3a, 3e, 3h; 256B.0916, subdivisions 2, 11, by adding a subdivision; 256B.097,
subdivisions 3, 4; 256B.431, subdivisions 2b, 36; 256B.434, subdivision 4, by
adding a subdivision; 256B.441, subdivisions 1, 5, 6, 13, 14, 17, 30, 31, 33,
35, 40, 44, 46c, 48, 50, 51, 51a, 53, 54, 55a, 56, 63, by adding subdivisions;
256B.49, subdivision 26, by adding a subdivision; 256B.4913, subdivisions 4a,
5; 256B.4914, subdivisions 2, 6, 8, 10, 14, 15; 256B.492; 256B.50, subdivision
1; 256B.5012, by adding a subdivision; 256B.69, subdivisions 5a, 5i, 9c, 9d,
by adding a subdivision; 256B.75; 256B.76, subdivisions 1, 2; 256B.762;
256B.766; 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, 2; 256I.06, subdivisions 2, 6,
7, 8; 256J.08, subdivisions 26, 86; 256J.30, subdivisions 1, 9; 256J.35; 256J.40;
256J.95, subdivision 19; 256K.45, subdivision 1a; 256L.01, subdivisions
3a, 5; 256L.03, subdivision 5; 256L.04, subdivisions 1c, 7b, 10; 256L.05,
subdivisions 3, 3a, 4, by adding a subdivision; 256L.06, subdivision 3; 256L.121,
subdivision 1; 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; 257.75, subdivisions 3, 5;
259A.75; 260C.007, subdivisions 27, 32; 260C.203; 260C.212, subdivision 1,
by adding subdivisions; 260C.331, subdivision 1; 260C.451, subdivisions 2, 6;
260C.515, subdivision 5; 260C.521, subdivisions 1, 2; 260C.607, subdivision
4; 270A.03, subdivision 5; 270B.14, subdivision 1; 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, subdivision
4; 518C.802; 626.556, subdivisions 1, as amended, 2, 3, 6a, 7, as amended,
10, 10e, 11c, by adding subdivisions; 626.559, by adding a subdivision; Laws
2008, chapter 363, article 18, section 3, subdivision 5; Laws 2012, chapter
247, article 4, section 47, as amended; Laws 2014, chapter 189, sections 5; 10;
11; 16; 17; 18; 19; 23; 24; 27; 28; 29; 31; 43; 50; 51; 73; proposing coding
for new law in Minnesota Statutes, chapters 62A; 62V; 144; 145; 148; 245;
245A; 256B; 256E; 256M; 256P; 518A; proposing coding for new law as
Minnesota Statutes, chapters 245F; 256Q; repealing Minnesota Statutes 2014,
sections 13.461, subdivision 26; 13D.08, subdivision 5a; 16A.724, subdivision
3; 62A.046, subdivision 5; 62V.01; 62V.02; 62V.03; 62V.04; 62V.05; 62V.06;
62V.07; 62V.08; 62V.09; 62V.10; 62V.11; 148.57, subdivisions 3, 4; 148.571;
148.572; 148.573, subdivision 1; 148.575, subdivisions 1, 3, 5, 6; 148.576;
148E.060, subdivision 12; 148E.075, subdivisions 4, 5, 6, 7; 214.105; 256.01,
subdivision 35; 256B.434, subdivision 19b; 256B.441, subdivisions 14a, 19, 50a,
52, 55, 58, 62; 256D.0513; 256D.06, subdivision 8; 256D.09, subdivision 6;
256D.49; 256J.38; 256L.01, subdivisions 1, 1a, 1b, 2, 3, 3a, 5, 6, 7; 256L.02,
subdivisions 1, 2, 3, 5, 6; 256L.03, subdivisions 1, 1a, 1b, 2, 3, 3a, 3b, 4, 4a, 5,
6; 256L.04, subdivisions 1, 1a, 1c, 2, 2a, 7, 7a, 7b, 8, 10, 12, 13, 14; 256L.05,
subdivisions 1, 1a, 1b, 1c, 2, 3, 3a, 3c, 4, 5, 6; 256L.06, subdivision 3; 256L.07,
subdivisions 1, 2, 3, 4; 256L.09, subdivisions 1, 2, 4, 5, 6, 7; 256L.10; 256L.11,
subdivisions 1, 2, 2a, 3, 4, 7; 256L.12; 256L.121; 256L.15, subdivisions 1, 1a,
1b, 2; 256L.18; 256L.22; 256L.24; 256L.26; 256L.28; Minnesota Rules, part
3400.0170, subparts 5, 6, 12, 13.

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

Minnesota Statutes 2014, section 62A.045, is amended to read:

(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.

new text begin (f) A health insurer must process a claim made by a state agency for covered
expenses paid under state medical programs within 90 business days of the claim's
submission. If the health insurer needs additional information to process the claim,
the health insurer may be granted an additional 30 business days to process the claim,
provided the health insurer submits the request for additional information to the state
agency within 30 business days after the health insurer received the claim.
new text end

new text begin (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.
new text end

Minnesota Statutes 2014, section 150A.06, subdivision 1b, is amended to read:

A person who is a graduate of a dental school and
is an enrolled graduate student or student of an accredited advanced dental education
program and who is not licensed to practice dentistry in the state shall obtain from the
board a license to practice dentistry as a resident dentist. The license must be designated
"resident dentist license" and authorizes the licensee to practice dentistry only under the
supervision of a licensed dentist. new text begin A University of Minnesota School of Dentistry dental
resident holding a resident dentist license is eligible for enrollment in medical assistance,
as provided under section 256B.0625, subdivision 9b. new text end A resident dentist license must be
renewed annually pursuant to the board's rules. An applicant for a resident dentist license
shall pay a nonrefundable fee set by the board for issuing and renewing the license. The
requirements of sections 150A.01 to 150A.21 apply to resident dentists except as specified
in rules adopted by the board. A resident dentist license does not qualify a person for
licensure under subdivision 1.

Minnesota Statutes 2014, section 151.58, subdivision 2, is amended to read:

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; new text begin a boarding care home licensed under sections 144.50 to 144.58 that is
providing centralized storage of medications; new text end 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.

Minnesota Statutes 2014, section 151.58, subdivision 5, is amended to read:

(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.

(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 systemnew text begin , 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 manufacturernew text end ; 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.

Minnesota Statutes 2014, section 256.969, subdivision 2b, is amended to read:

(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 rebased rates under paragraph (c) 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 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.

new text begin (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. 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:
new text end

new text begin (1) the ratio between the hospital's costs for treating medical assistance patients and
the hospital's charges to the medical assistance program;
new text end

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (4) the statewide average increases in the ratios identified in clauses (1), (2), and (3);
new text end

new text begin (5) the proportion of that hospital's costs that are administrative and trends in
administrative costs; and
new text end

new text begin (6) geographic location.
new text end

Minnesota Statutes 2014, section 256.969, subdivision 9, is amended to read:

(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.

new text begin (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:
new text end

new text begin (1) the medical assistance utilization rate of the hospitals that receive payments
under this subdivision;
new text end

new text begin (2) whether the hospital is located within Minnesota;
new text end

new text begin (3) the difference between a hospital's costs for treating medical assistance patients
and the total amount of payments received from medical assistance;
new text end

new text begin (4) the percentage of uninsured patient days at each qualifying hospital in relation
to the total number of uninsured patient days statewide;
new text end

new text begin (5) the hospital's status as a hospital authorized to make presumptive eligibility
determinations for medical assistance in accordance with section 256B.057, subdivision 12;
new text end

new text begin (6) the hospital's status as a safety net, critical access, children's, rehabilitation, or
long-term hospital;
new text end

new text begin (7) whether the hospital's administrative cost of compiling the necessary DSH
reports exceeds the anticipated value of any calculated DSH payment; and
new text end

new text begin (8) whether the hospital provides specific services designated by the commissioner
to be of particular importance to the medical assistance program.
new text end

new text begin (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 to other
DSH-eligible hospitals in a manner established by the commissioner.
new text end

Minnesota Statutes 2014, section 256B.056, subdivision 5c, is amended to read:

(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) The excess income standard for a person whose eligibility is based on blindness,
disability, or age of 65 or more years shall equal deleted text begin 75deleted text end new text begin 80new text end percent of the federal poverty
guidelines.

new text begin This section is effective July 1, 2016.
new text end

Minnesota Statutes 2014, section 256B.0625, is amended by adding a
subdivision to read:

new text begin (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:
new text end

new text begin (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;
new text end

new text begin (2) will not be listed in the medical assistance or MinnesotaCare provider directory;
and
new text end

new text begin (3) is not required to serve medical assistance and MinnesotaCare enrollees when
providing nonvolunteer services in a private practice.
new text end

new text begin (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.
new text end

Minnesota Statutes 2014, section 256B.0625, subdivision 13, is amended to read:

(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 deleted text begin lowerdeleted text end new text begin lowestnew text end of:

(1) the number of dosage units contained in the manufacturer's original package; deleted text begin anddeleted text end

(2) the number of dosage units required to complete the patient's course of therapynew text begin ; or
new text end

new text begin (3) if applicable, the number of dosage units dispensed from a system using
retrospective billing, as provided under subdivision 13e, paragraph (b)new text end .

(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.

new text begin This section is effective January 1, 2016, or upon federal
approval, whichever is later.
new text end

Minnesota Statutes 2014, section 256B.0625, subdivision 13e, is amended to
read:

(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
new text begin for legend prescription drugsnew text end , 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. new text begin 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. new text end 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) new text begin 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 prescriptions 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 of not less than one calendar month or 30 days.
new text end

new text begin (c) new text end 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. deleted text begin Thedeleted text end new text begin Anew text end pharmacy provider new text begin using packaging
that meets the standards set forth in Minnesota Rules, part 6800.2700, subpart 2, new text end will be
required to credit the department for the actual acquisition cost of all unused drugs that are
eligible for reusenew text begin , unless the pharmacy is using retrospective billingnew text end . The commissioner
may permit the drug clozapine to be dispensed in a quantity that is less than a 30-day supply.

deleted text begin (c)deleted text end new text begin (d)new text end 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.

deleted text begin (d)deleted text end new text begin (e)new text end 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.

deleted text begin (e)deleted text end new text begin (f)new text end 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.

deleted text begin (f)deleted text end new text begin (g)new text end Home infusion therapy services provided by home infusion therapy
pharmacies must be paid at rates according to subdivision 8d.

new text begin This section is effective January 1, 2016, or upon federal
approval, whichever is later.
new text end

Minnesota Statutes 2014, section 256B.0625, subdivision 13h, is amended to
read:

(a) Medical assistance deleted text begin and
deleted text end deleted text begin general assistance medical care coverdeleted text end new text begin coversnew text end medication therapy management services
for a recipient taking deleted text begin three or moredeleted text end prescriptions to treat or prevent one or more chronic
medical conditionsdeleted text begin ; 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-effectivedeleted text end . 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 deleted text begin and general
assistance medical caredeleted text end 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 deleted text begin approved by the commissionerdeleted text end new text begin that meets the
requirements of paragraph (b), clause (3)new text end . The patient must also be located within an
ambulatory care setting deleted text begin approved by the commissionerdeleted text end new text begin that meets the requirements of
paragraph (b), clause (3)new text end . Services provided under this paragraph may not be transmitted
into the patient's residence.

deleted text begin (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.
deleted text end

new text begin (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).
new text end

Minnesota Statutes 2014, section 256B.0625, subdivision 17, is amended to
read:

(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 public transit, as defined in section 174.22, subdivision 7; or

(4) 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 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) 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) 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. The new
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 family 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 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 to a client who has received a
prescreening that has deemed other forms of transportation inappropriate and who requires
a provider 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) deleted text begin In accordance with subdivision 18e, by July 1, 2016,deleted text end 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, deleted text begin once this is adopteddeleted text end new text begin when the commissioner
has developed, made available, and funded the Web-based single administrative structure,
assessment tool, and level of need assessment under subdivision 18enew text end .new text begin The local agency's
financial obligation is limited to funds provided by the state or the federal government.
new text end

(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) 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 transportation services in areas defined under RUCA
to be rural or super rural areas:

(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), clause (1); 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), clause (1).

(m) For purposes of reimbursement rates for special transportation services under
paragraph (c), the zip code of the recipient's place of residence shall determine whether
the urban, rural, or super rural reimbursement rate applies.

(n) 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.

Minnesota Statutes 2014, section 256B.0625, subdivision 28a, is amended to
read:

(a) Medical assistance covers
services performed by a licensed physician assistant if the service is otherwise covered
under this chapter as a physician service and if the service is within the scope of practice
of a licensed physician assistant as defined in section 147A.09.

(b) Licensed physician assistants, who are supervised by a physician certified by
the American Board of Psychiatry and Neurology or eligible for board certification in
psychiatry, may bill for medication management and evaluation and management services
provided to medical assistance enrollees in inpatient hospital settingsnew text begin , and in outpatient
settings after the licensed physician assistant completes 2,000 hours of clinical experience
in the evaluation and treatment of mental healthnew text end , consistent with their authorized scope of
practice, as defined in section 147A.09, with the exception of performing psychotherapy
or diagnostic assessments or providing clinical supervision.

Minnesota Statutes 2014, section 256B.0625, subdivision 31, is amended to
read:

(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.
deleted text begin The commissioner may set reimbursement rates for specified categories of medical
supplies at levels below the Medicare payment rate.
deleted text end

(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.

Minnesota Statutes 2014, section 256B.0625, subdivision 58, is amended to
read:

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 deleted text begin vaccinesdeleted text end new text begin health care services and productsnew text end 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.

Minnesota Statutes 2014, section 256B.0631, is amended to read:

(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) deleted text begin effective January 1, 2012,deleted text end a family deductible equal to deleted text begin the maximum amount
allowed under Code of Federal Regulations, title 42, part 447.54deleted text end new text begin $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 incrementnew text end ; and

(5) deleted text begin for individuals identified by the commissioner with income at or below 100
percent of the federal poverty guidelines,deleted text end 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.
new text begin This paragraph does not apply to premiums charged to individuals described under section
256B.057, subdivision 9.
new text end

(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.

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; deleted text begin and
deleted text end

(10) services, fee-for-service payments subject to volume purchase through
competitive biddingdeleted text begin .deleted text end new text begin ;
new text end

new text begin (11) American Indians who meet the requirements in Code of Federal Regulations,
title 42, section 447.51;
new text end

new text begin (12) persons needing treatment for breast or cervical cancer as described under
section 256B.057, subdivision 10; and
new text end

new text begin (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.
new text end

(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 deleted text begin identified by the commissioner under 100 percent of the federal
poverty guidelinesdeleted text end 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.

new text begin The amendment to subdivision 1, paragraph (a), clause (4), is
effective retroactively from January 1, 2014.
new text end

Minnesota Statutes 2014, section 256B.0644, is amended to read:

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

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

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

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

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

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

(d) A volunteer dentist who has signed a volunteer agreement under section
256B.0625, subdivision 9a, shall not be considered to be participating in medical
assistance or MinnesotaCare for the purpose of this section.

new text begin This section is effective upon receipt of any necessary federal
waiver or approval. The commissioner of human services shall notify the revisor of
statutes if a federal waiver or approval is sought and, if sought, when a federal waiver
or approval is obtained.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

Minnesota Statutes 2014, section 256B.69, subdivision 5a, is amended to read:

(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).

new text begin (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 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 the agreements relate to state public
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.
new text end

Minnesota Statutes 2014, section 256B.69, subdivision 5i, is amended to read:

(a) deleted text begin Managed care plan and county-based
purchasing plandeleted text end Administrative costs deleted text begin for a prepaid health plan provideddeleted text end new text begin paid to managed
care plans and county-based purchasing plansnew text end under this section deleted text begin ordeleted text end new text begin ,new text end section 256B.692new text begin , and
section 256L.12new text end must not exceed deleted text begin by more than fivedeleted text end new text begin 6.6new text end percent deleted text begin 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 revenuedeleted text end new text begin of total payments expected to be made to
all managed care plans and county-based purchasing plans in aggregate across all state
public programs at the beginning of each calendar yearnew text end . deleted text begin 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.deleted text end new text begin 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.
new text end

(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) deleted text begin any portion of an individual's compensation in excess of $200,000 paid by the
managed care plan or county-based purchasing plandeleted text end new text begin compensation of individuals within
the organization, other than the medical director, in excess of $200,000 such that the
allocation of compensation for an individual across all state public programs in total
cannot exceed $200,000new text end ;

(3) any penalties or fines assessed against the managed care plan or county-based
purchasing plan; deleted text begin and
deleted text end

(4) any indirect marketing or advertising expenses of the managed care plan or
county-based purchasing plandeleted text begin .deleted text end new text begin for marketing that does not specifically target state public
programs beneficiaries and that has not been approved by the commissioner;
new text end

new text begin (5) any lobbying and political activities, events, or contributions;
new text end

new text begin (6) administrative expenses related to the provision of services not covered under
the state plan or waiver;
new text end

new text begin (7) alcoholic beverages and related costs;
new text end

new text begin (8) membership in any social, dining, or country club or organization; and
new text end

new text begin (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.
new text end

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.new text begin Contributions include payments for
or to any organization or entity selected by the health maintenance organization 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 programs beneficiaries.
new text end

new text begin (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:
new text end

new text begin (1) employee benefit expenses;
new text end

new text begin (2) sales expenses;
new text end

new text begin (3) general business and office expenses;
new text end

new text begin (4) taxes and assessments;
new text end

new text begin (5) consulting and professional fees; and
new text end

new text begin (6) outsourced services.
new text end

new text begin 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 program when the
cost can be specifically identified with and benefits the individual state public program.
For administrative services expensed to the state's public 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.
new text end

new text begin (d) The administrative expenses requirement of this subdivision also apply to
demonstration providers under section 256B.0755.
new text end

Minnesota Statutes 2014, section 256B.69, subdivision 9c, is amended to read:

(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.

new text begin (d) Managed care plans and county-based purchasing plans shall certify to the
commissioner, for the purpose of managed care financial reporting for state public
health care programs under this subdivision, that costs related to state public health care
programs include only services covered under the state plan and waivers, and related
allowable administrative expenses. Managed care plans and county-based purchasing
plans shall certify and report to the commissioner the dollar value of any unallowable and
nonstate plan services, including both medical and administrative expenditures, for the
purposes of managed care financial reporting under this subdivision.
new text end

new text begin (e) The financial reporting requirements of this subdivision also apply to
demonstration providers under section 256B.0755.
new text end

Minnesota Statutes 2014, section 256B.69, subdivision 9d, is amended to read:

deleted text begin (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.
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (c)deleted text end new text begin (a) new text end 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 deleted text begin auditdeleted text end new text begin audits by the
legislative auditor under subdivision 9enew text end 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 deleted text begin audit firm
deleted text end new text begin vendors new text end contracting with the legislative auditor access to all data required to complete
deleted text begin 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 2deleted text end new text begin audits
under subdivision 9enew text end .

deleted text begin (d)deleted text end new text begin (b) new text end 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. deleted text begin The audit firm under contract to provide
this evaluation must meet the requirements in paragraph (b).
deleted text end

deleted text begin (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.deleted text end new text begin (c)new text end Upon completion
of the evaluation under paragraph deleted text begin (d)deleted text end new text begin (b)new text end , the commissioner shall provide copies of the
report to the legislative auditor and the chairs and ranking minority members of the deleted text begin health
finance committees of the legislaturedeleted text end new text begin legislative committees with jurisdiction over health
care policy and financingnew text end .

deleted text begin (f)deleted text end new text begin (d) new text end 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.

new text begin (e) The commissioner may conduct ad hoc audits of the state public programs
administrative and medical expenses of managed care organizations 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 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.
new text end

deleted text begin (g)deleted text end new text begin (f) new text end Nothing in this subdivision shall allow the release of information that is
nonpublic data pursuant to section 13.02.

new text begin (g) The audit requirements of this subdivision also apply to demonstration providers
under section 256B.0755.
new text end

Minnesota Statutes 2014, section 256B.69, is amended by adding a
subdivision to read:

new text begin (a) The legislative auditor shall contract with vendors
to conduct independent third-party financial audits of the Department of Human Services'
use 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 by the Department of
Human Services with the federal Medicaid rate certification process.
new text end

new text begin (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.
new text end

Minnesota Statutes 2014, section 256B.75, is amended to read:

(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.

(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.

new text begin (g) Effective for services provided on or after July 1, 2015, rates established for
critical access hospitals under paragraph (b) for the applicable payment year shall be the
final payment and shall not be settled to actual costs.
new text end

Minnesota Statutes 2014, section 256B.76, subdivision 1, is amended to read:

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

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

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

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

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

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

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

(e) Effective for services rendered on or after September 1, 2011, through June 30,
2013, payment rates for physician and professional services shall be reduced three percent
from the rates in effect on August 31, 2011. This reduction does not apply to physical
therapy services, occupational therapy services, and speech pathology and related services.

(f) Effective for services rendered on or after September 1, 2014, payment rates for
physician and professional services, including physical therapy, occupational therapy,
speech pathology, and mental health services shall be increased by five percent from the
rates in effect on August 31, 2014. In calculating this rate increase, the commissioner
shall not include in the base rate for August 31, 2014, the rate increase provided under
section 256B.76, subdivision 7. This increase does not apply to federally qualified health
centers, rural health centers, and Indian health services. Payments made to managed
care plans and county-based purchasing plans shall not be adjusted to reflect payments
under this paragraph.

new text begin (g) Effective for services rendered on or after July 1, 2015, payment rates for
physical therapy, occupational therapy, and speech pathology and related services provided
by a hospital meeting the criteria specified in section 62Q.19, subdivision 1, paragraph
(a), clause (4), shall be increased by 90 percent from the rates in effect on June 30, 2015.
Payments made to managed care plans and county-based purchasing plans shall not be
adjusted to reflect payments under this paragraph.
new text end

Minnesota Statutes 2014, section 256B.76, subdivision 2, is amended to read:

(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) 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) 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.

new text begin (k) Effective for services rendered on or after July 1, 2015, payment rates for dental
services shall be increased by five percent from the rates in effect on June 30, 2015. 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, 2016,
payments to managed care plans and county-based purchasing plans under sections
256B.69 and 256B.692 shall reflect the payment increase described in this paragraph.
new text end

Minnesota Statutes 2014, section 256B.762, is amended to read:

new text begin (a) new text end Effective for services provided on or after October 1, 2005, payment rates
for the following services shall be increased by five percent over the rates in effect on
September 30, 2005, when these services are provided as home health services under
section 256B.0625, subdivision 6a:

(1) skilled nursing visit;

(2) physical therapy visit;

(3) occupational therapy visit;

(4) speech therapy visit; and

(5) home health aide visit.

new text begin (b) Effective for services provided on or after July 1, 2015, payment rates for
managed care and fee-for-service visits for the following services shall be increased by
ten percent over the rates in effect on June 30, 2015, when these services are provided as
home health services under section 256B.0625, subdivision 6a:
new text end

new text begin (1) physical therapy;
new text end

new text begin (2) occupational therapy; and
new text end

new text begin (3) speech therapy.
new text end

new text begin The commissioner shall adjust managed care and county-based purchasing plan capitation
rates to reflect the payment rates under this paragraph.
new text end

Minnesota Statutes 2014, section 256B.766, is amended to read:

(a) Effective for services provided on or after July 1, 2009, total payments for basic
care services, shall be reduced by three percent, except that for the period July 1, 2009,
through June 30, 2011, total payments shall be reduced by 4.5 percent for the medical
assistance and general assistance medical care programs, prior to third-party liability and
spenddown calculation. Effective July 1, 2010, the commissioner shall classify physical
therapy services, occupational therapy services, and speech-language pathology and
related services as basic care services. The reduction in this paragraph shall apply to
physical therapy services, occupational therapy services, and speech-language pathology
and related services provided on or after July 1, 2010.

(b) Payments made to managed care plans and county-based purchasing plans shall
be reduced for services provided on or after October 1, 2009, to reflect the reduction
effective July 1, 2009, and payments made to the plans shall be reduced effective October
1, 2010, to reflect the reduction effective July 1, 2010.

(c) Effective for services provided on or after September 1, 2011, through June 30,
2013, total payments for outpatient hospital facility fees shall be reduced by five percent
from the rates in effect on August 31, 2011.

(d) Effective for services provided on or after September 1, 2011, through June
30, 2013, total payments for ambulatory surgery centers facility fees, medical supplies
and durable medical equipment not subject to a volume purchase contract, prosthetics
and orthotics, renal dialysis services, laboratory services, public health nursing services,
physical therapy services, occupational therapy services, speech therapy services,
eyeglasses not subject to a volume purchase contract, hearing aids not subject to a volume
purchase contract, and anesthesia services shall be reduced by three percent from the
rates in effect on August 31, 2011.

(e) Effective for services provided on or after September 1, 2014, payments
for ambulatory surgery centers facility fees, hospice services, renal dialysis services,
laboratory services, public health nursing services, eyeglasses not subject to a volume
purchase contract, and hearing aids not subject to a volume purchase contract shall be
increased by three percent and payments for outpatient hospital facility fees shall be
increased by three percent. Payments made to managed care plans and county-based
purchasing plans shall not be adjusted to reflect payments under this paragraph.

(f) Payments for medical supplies and durable medical equipment not subject to a
volume purchase contract, and prosthetics and orthotics, provided on or after July 1, 2014,
through June 30, 2015, shall be decreased by .33 percent. Payments for medical supplies
and durable medical equipment not subject to a volume purchase contract, and prosthetics
and orthotics, provided on or after July 1, 2015, shall be increased by three percent from
the rates deleted text begin in effect on June 30, 2014deleted text end new text begin as determined under paragraph (i)new text end .

(g)new text begin Effective for services provided on or after July 1, 2015, payments for outpatient
hospital facility fees, medical supplies and durable medical equipment not subject to a
volume purchase contract, prosthetics and orthotics, and laboratory services to a hospital
meeting the criteria specified in section 62Q.19, subdivision 1, paragraph (a), clause (4),
shall be increased by 90 percent from the rates in effect on June 30, 2015. Payments made
to managed care plans and county-based purchasing plans shall not be adjusted to reflect
payments under this paragraph.
new text end

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

new text begin (i) Effective July 1, 2015, the medical assistance payment rate for durable medical
equipment, prosthetics, orthotics, or supplies shall be restored to the January 1, 2008,
medical assistance fee schedule, updated to include subsequent rate increases in the
Medicare and medical assistance fee schedules, and including individually priced
items for the following categories: enteral nutrition and supplies, customized and other
specialized tracheostomy tubes and supplies, electric patient lifts, and durable medical
equipment repair and service. This paragraph does not apply to medical supplies and
durable medical equipment subject to a volume purchase contract, products subject to the
preferred diabetic testing supply program, and items provided to dually eligible recipients
when Medicare is the primary payer for the item.
new text end

Minnesota Statutes 2014, section 256B.767, is amended to read:

(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.

deleted text begin (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.
deleted text end

new text begin (d) Effective July 1, 2015, this section shall not apply to durable medical equipment,
prosthetics, orthotics, or supplies.
new text end

new text begin (e) This section does not apply to physical therapy, occupational therapy, speech
pathology and related services, and basic care services provided by a hospital meeting the
criteria specified in section 62Q.19, subdivision 1, paragraph (a), clause (4).
new text end

Laws 2008, chapter 363, article 18, section 3, subdivision 5, is amended to read:

(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.

deleted text begin 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.
deleted text end

deleted text begin (b) Notwithstanding any law to the contrary,
the commissioner may reduce or eliminate
administrative requirements to meet the
administrative target under paragraph (a).
deleted text end

deleted text begin (c) Notwithstanding any contrary provision
of this article, this rider shall not expire.
deleted text end

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.

(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.

new text begin The commissioner of human services, when contracting with managed care and
county-based purchasing plans for the provision of services under Minnesota Statutes,
sections 256B.69 and 256B.692, for calendar years 2016 and 2017, shall negotiate
reductions in managed care and county-based purchasing plan administrative costs,
sufficient to achieve a state medical assistance savings of $100,000,000 for the biennium
ending June 30, 2017.
new text end

new text begin The commissioner of health shall reconvene the Advisory
Group on Administrative Expenses, established under Laws 2010, First Special Session
chapter 1, article 20, section 3, to develop detailed standards and procedures for examining
the reasonableness of administrative expenses by individual state public programs.
The advisory group shall develop consistent guidelines, definitions, and reporting
requirements, including a common standardized public reporting template for health
maintenance organizations and county-based purchasing plans that participate in state
public 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. The advisory group shall expire on January 1, 2016.
new text end

new text begin The advisory group shall be composed of the following
members, who serve at the pleasure of their appointing authority:
new text end

new text begin (1) the commissioner of health or the commissioner's designee;
new text end

new text begin (2) the commissioner of human services or the commissioner's designee;
new text end

new text begin (3) the commissioner of commerce or the commissioner's designee; and
new text end

new text begin (4) representatives of health maintenance organizations and county-based purchasing
plans appointed by the commissioner of health.
new text end

new text begin (a) The commissioner of human services shall delay $135,000,000 of the medical
assistance capitation payment to managed care plans and county-based purchasing plans
due in May 2017 and the payment due in April 2017 for special needs basic care until
July 1, 2017. The payment shall be made no earlier than July 1, 2017, and no later than
July 31, 2017.
new text end

new text begin (b) The commissioner of human services shall delay $135,000,000 of the medical
assistance capitation payment to managed care plans and county-based purchasing plans
due in the second quarter of calendar year 2019 and the April 2019 payment for special
needs basic care until July 1, 2019. The payment shall be made no earlier than July 1,
2019, and no later than July 31, 2019.
new text end

new text begin By October 1, 2015, the commissioner of
human services shall issue a request for proposals for a contract to provide eligibility
verification audit services for benefits provided through health and economic assistance
programs. The request for proposals must require that the vendor:
new text end

new text begin (1) conduct an eligibility verification audit of all health and economic assistance
program recipients that includes, but is not limited to, appropriate data matching against
relevant state and federal databases;
new text end

new text begin (2) identify any ineligible recipients in these programs and report those findings
to the commissioner; and
new text end

new text begin (3) identify a process for ongoing eligibility verification of health and economic
assistance program recipients and applicants, following the conclusion of the eligibility
verification audit required by this section.
new text end

new text begin The request for proposals must require the
vendor to provide the following minimum capabilities and experience in performing the
services described in subdivision 1:
new text end

new text begin (1) a rules-based process for making objective eligibility determinations;
new text end

new text begin (2) assigned eligibility advocates to assist recipients through the verification process;
new text end

new text begin (3) a formal claims and appeals process; and
new text end

new text begin (4) experience in the performance of eligibility verification audits.
new text end

new text begin (a) By January 1, 2016, the commissioner must enter
into a contract for the services specified in subdivision 1. The contract must:
new text end

new text begin (1) incorporate performance-based vendor financing that compensates the vendor
based on the amount of savings generated by the work performed under the contract;
new text end

new text begin (2) require the vendor to reimburse the commissioner and county agencies for all
reasonable costs incurred in implementing this section, out of savings generated by the
work performed under the contract;
new text end

new text begin (3) require the vendor to comply with enrollee data privacy requirements and to use
encryption to safeguard enrollee identity; and
new text end

new text begin (4) provide penalties for vendor noncompliance.
new text end

new text begin (b) The commissioner may renew the contract for up to three additional one-year
periods. The commissioner may require additional eligibility verification audits, if
the commissioner or the legislative auditor determines that the MNsure information
technology system and agency eligibility determination systems cannot effectively verify
the eligibility of health and economic assistance program recipients.
new text end

new text begin For purposes of this section,
"health and economic assistance program" means the medical assistance program under
Minnesota Statutes, chapter 256B, Minnesota family investment and diversionary
work programs under Minnesota Statutes, chapter 256J, child care assistance programs
under Minnesota Statutes, chapter 119B, general assistance under Minnesota Statutes,
sections 256D.01 to 256D.23, alternative care program under Minnesota Statutes, section
256B.0913, and chemical dependency programs funded under Minnesota Statutes, chapter
254B.
new text end

new text begin (a) The commissioner of human services shall issue a request for proposals
for a contract to use technologically advanced software and services to improve the
identification and rejection or elimination of:
new text end

new text begin (1) improper Medicaid payments before payment is made to the provider; and
new text end

new text begin (2) improper provision of benefits by a health and economic assistance program
to ineligible individuals.
new text end

new text begin (b) The request for proposals must ensure that a system recommended and
implemented by the contractor will:
new text end

new text begin (1) implement a more comprehensive, robust, and technologically advanced
improper payments and benefits identification program;
new text end

new text begin (2) utilize state of the art fraud detection methods and technologies such as predictive
modeling, link analysis, and anomaly and outlier detection;
new text end

new text begin (3) have the ability to identify and report improper claims before the claims are paid;
new text end

new text begin (4) have the ability to identify and report the improper provision of benefits under a
health and economic assistance program;
new text end

new text begin (5) include a mechanism so that the system improves its detection capabilities over
time;
new text end

new text begin (6) leverage technology to make the Medicaid claims evaluation process more
transparent and cost-efficient; and
new text end

new text begin (7) result in increased state savings by reducing or eliminating payouts of wrongful
Medicaid claims and the improper provision of health and economic assistance program
benefits.
new text end

new text begin (c) Based on responses to the request for proposals, the commissioner must enter
into a contract for the services specified in paragraphs (a) and (b) by October 1, 2015. The
contract shall incorporate a performance-based vendor financing option whereby the
vendor shares in the risk of the project's success.
new text end

new text begin (d) For purposes of this section, "health and economic assistance program" means
the medical assistance program under Minnesota Statutes, chapter 256B, Minnesota family
investment and diversionary work programs under Minnesota Statutes, chapter 256J, child
care assistance programs under Minnesota Statutes, chapter 119B, general assistance
under Minnesota Statutes, sections 256D.01 to 256D.23, alternative care program under
Minnesota Statutes, section 256B.0913, and chemical dependency programs funded under
Minnesota Statutes, chapter 254B.
new text end

new text begin This section is effective the day following final enactment.
new text end

new text begin The commissioner of human services shall seek any federal waiver or approval
necessary to implement the amendments to Minnesota Statutes, section 256B.0644.
new text end

Minnesota Statutes 2014, section 256.98, subdivision 1, is amended to read:

A person who commits any of
the following acts or omissions with intent to defeat the purposes of sections 145.891
to 145.897, the MFIP program formerly codified in sections 256.031 to 256.0361, the
AFDC program formerly codified in sections 256.72 to 256.871, chapters 256B, 256D,
256J, 256K, or 256L, and child care assistance programs, is guilty of theft and shall be
sentenced under section 609.52, subdivision 3, clauses (1) to (5):

(1) obtains or attempts to obtain, or aids or abets any person to obtain by means of
a willfully false statement or representation, by intentional concealment of any material
fact, or by impersonation or other fraudulent device, assistance or the continued receipt of
assistance, to include child care assistance or vouchers produced according to sections
145.891 to 145.897 and deleted text begin MinnesotaCare services according to sectionsdeleted text end new text begin premium assistance
under sectionnew text end 256.9365deleted text begin , 256.94, and 256L.01 to 256L.15deleted text end , to which the person is not
entitled or assistance greater than that to which the person is entitled;

(2) knowingly aids or abets in buying or in any way disposing of the property of a
recipient or applicant of assistance without the consent of the county agency; or

(3) obtains or attempts to obtain, alone or in collusion with others, the receipt of
payments to which the individual is not entitled as a provider of subsidized child care, or
by furnishing or concurring in a willfully false claim for child care assistance.

The continued receipt of assistance to which the person is not entitled or greater
than that to which the person is entitled as a result of any of the acts, failure to act, or
concealment described in this subdivision shall be deemed to be continuing offenses from
the date that the first act or failure to act occurred.

new text begin This section is effective January 1, 2016.
new text end

Minnesota Statutes 2014, section 256B.021, subdivision 4, is amended to read:

The commissioner shall request permission and funding to
further the following initiatives.

(a) Health care delivery demonstration projects. This project involves testing
alternative payment and service delivery models in accordance with sections 256B.0755
and 256B.0756. These demonstrations will allow the Minnesota Department of Human
Services to engage in alternative payment arrangements with provider organizations that
provide services to a specified patient population for an agreed upon total cost of care or
risk/gain sharing payment arrangement, but are not limited to these models of care delivery
or payment. Quality of care and patient experience will be measured and incorporated into
payment models alongside the cost of care. Demonstration sites should include Minnesota
health care programs fee-for-services recipients and managed care enrollees and support a
robust primary care model and improved care coordination for recipients.

(b) Promote personal responsibility and encourage and reward healthy outcomes.
This project provides Medicaid funding to provide individual and group incentives to
encourage healthy behavior, prevent the onset of chronic disease, and reward healthy
outcomes. Focus areas may include diabetes prevention and management, tobacco
cessation, reducing weight, lowering cholesterol, and lowering blood pressure.

(c) Encourage utilization of high quality, cost-effective care. This project creates
incentives through Medicaid and MinnesotaCare enrollee cost-sharing and other means to
encourage the utilization of high-quality, low-cost, high-value providers, as determined by
the state's provider peer grouping initiative under section 62U.04.

(d) Adults without children. This proposal includes requesting federal authority to
impose a limit on assets for adults without children in medical assistance, as defined in
section 256B.055, subdivision 15, who have a household income equal to or less than
75 percent of the federal poverty limitdeleted text begin , and to impose a 180-day durational residency
deleted text end deleted text begin requirement in MinnesotaCare, consistent with section 256L.09, subdivision 4, for adults
without children, regardless of incomedeleted text end .

(e) Empower and encourage work, housing, and independence. This project provides
services and supports for individuals who have an identified health or disabling condition
but are not yet certified as disabled, in order to delay or prevent permanent disability,
reduce the need for intensive health care and long-term care services and supports, and to
help maintain or obtain employment or assist in return to work. Benefits may include:

(1) coordination with health care homes or health care coordinators;

(2) assessment for wellness, housing needs, employment, planning, and goal setting;

(3) training services;

(4) job placement services;

(5) career counseling;

(6) benefit counseling;

(7) worker supports and coaching;

(8) assessment of workplace accommodations;

(9) transitional housing services; and

(10) assistance in maintaining housing.

(f) Redesign home and community-based services. This project realigns existing
funding, services, and supports for people with disabilities and older Minnesotans to
ensure community integration and a more sustainable service system. This may involve
changes that promote a range of services to flexibly respond to the following needs:

(1) provide people less expensive alternatives to medical assistance services;

(2) offer more flexible and updated community support services under the Medicaid
state plan;

(3) provide an individual budget and increased opportunity for self-direction;

(4) strengthen family and caregiver support services;

(5) allow persons to pool resources or save funds beyond a fiscal year to cover
unexpected needs or foster development of needed services;

(6) use of home and community-based waiver programs for people whose needs
cannot be met with the expanded Medicaid state plan community support service options;

(7) target access to residential care for those with higher needs;

(8) develop capacity within the community for crisis intervention and prevention;

(9) redesign case management;

(10) offer life planning services for families to plan for the future of their child
with a disability;

(11) enhance self-advocacy and life planning for people with disabilities;

(12) improve information and assistance to inform long-term care decisions; and

(13) increase quality assurance, performance measurement, and outcome-based
reimbursement.

This project may include different levels of long-term supports that allow seniors to
remain in their homes and communities, and expand care transitions from acute care to
community care to prevent hospitalizations and nursing home placement. The levels
of support for seniors may range from basic community services for those with lower
needs, access to residential services if a person has higher needs, and targets access to
nursing home care to those with rehabilitation or high medical needs. This may involve
the establishment of medical need thresholds to accommodate the level of support
needed; provision of a long-term care consultation to persons seeking residential services,
regardless of payer source; adjustment of incentives to providers and care coordination
organizations to achieve desired outcomes; and a required coordination with medical
assistance basic care benefit and Medicare/Medigap benefit. This proposal will improve
access to housing and improve capacity to maintain individuals in their existing home;
adjust screening and assessment tools, as needed; improve transition and relocation
efforts; seek federal financial participation for alternative care and essential community
supports; and provide Medigap coverage for people having lower needs.

(g) Coordinate and streamline services for people with complex needs, including
those with multiple diagnoses of physical, mental, and developmental conditions. This
project will coordinate and streamline medical assistance benefits for people with complex
needs and multiple diagnoses. It would include changes that:

(1) develop community-based service provider capacity to serve the needs of this
group;

(2) build assessment and care coordination expertise specific to people with multiple
diagnoses;

(3) adopt service delivery models that allow coordinated access to a range of services
for people with complex needs;

(4) reduce administrative complexity;

(5) measure the improvements in the state's ability to respond to the needs of this
population; and

(6) increase the cost-effectiveness for the state budget.

(h) Implement nursing home level of care criteria. This project involves obtaining
any necessary federal approval in order to implement the changes to the level of care
criteria in section 144.0724, subdivision 11, and implement further changes necessary to
achieve reform of the home and community-based service system.

(i) Improve integration of Medicare and Medicaid. This project involves reducing
fragmentation in the health care delivery system to improve care for people eligible for
both Medicare and Medicaid, and to align fiscal incentives between primary, acute, and
long-term care. The proposal may include:

(1) requesting an exception to the new Medicare methodology for payment
adjustment for fully integrated special needs plans for dual eligible individuals;

(2) testing risk adjustment models that may be more favorable to capturing the
needs of frail dually eligible individuals;

(3) requesting an exemption from the Medicare bidding process for fully integrated
special needs plans for the dually eligible;

(4) modifying the Medicare bid process to recognize additional costs of health
home services; and

(5) requesting permission for risk-sharing and gain-sharing.

(j) Intensive residential treatment services. This project would involve providing
intensive residential treatment services for individuals who have serious mental illness
and who have other complex needs. This proposal would allow such individuals to remain
in these settings after mental health symptoms have stabilized, in order to maintain their
mental health and avoid more costly or unnecessary hospital or other residential care due
to their other complex conditions. The commissioner may pursue a specialized rate for
projects created under this section.

(k) Seek federal Medicaid matching funds for Anoka Metro Regional Treatment
Center (AMRTC). This project involves seeking Medicaid reimbursement for medical
services provided to patients to AMRTC, including requesting a waiver of United States
Code, title 42, section 1396d, which prohibits Medicaid reimbursement for expenditures
for services provided by hospitals with more than 16 beds that are primarily focused on
the treatment of mental illness. This waiver would allow AMRTC to serve as a statewide
resource to provide diagnostics and treatment for people with the most complex conditions.

(l) Waivers to allow Medicaid eligibility for children under age 21 receiving care
in residential facilities. This proposal would seek Medicaid reimbursement for any
Medicaid-covered service for children who are placed in residential settings that are
determined to be "institutions for mental diseases," under United States Code, title 42,
section 1396d.

new text begin This section is effective January 1, 2016.
new text end

Minnesota Statutes 2014, section 256L.01, subdivision 3a, is amended to read:

(a) new text begin Except as provided in paragraphs (c) and (d), new text end "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.

new text begin (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).
new text end

new text begin (d) For a married couple, "family" has the meaning given in Code of Federal
Regulations, title 42, section 435.603(f)(4).
new text end

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2014, section 256L.01, subdivision 5, is amended to read:

"Income" has the meaning given for modified adjusted gross
income, as defined in Code of Federal Regulations, title 26, section 1.36B-1deleted text begin .deleted text end new text begin , and means a
household's projected annual income for the applicable tax year.
new text end

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2014, section 256L.03, subdivision 5, is amended to read:

(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 deleted text begin the maximum amount allowed under Code of
Federal Regulations, title 42, part 447.54deleted text end deleted text begin .deleted text end new text begin $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.
new text end

(b) Paragraph (a) does not apply to children under the age of 21new text begin and to American
Indians as defined in Code of Federal Regulations, title 42, section 447.51new text end .

(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.

new text begin 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.
new text end

Minnesota Statutes 2014, section 256L.04, subdivision 1c, is amended to read:

To be eligible for deleted text begin coverage underdeleted text end 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.

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2014, section 256L.04, subdivision 7b, is amended to read:

The commissioner shall adjust the
income limits under this section deleted text begin 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,
2009deleted text end new text begin annually on January 1 as provided in Code of Federal Regulations, title 26, section
1.36B-1(h)new text end .

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2014, section 256L.04, subdivision 10, is amended to read:

(a) Eligibility for MinnesotaCare is limited
to citizens or nationals of the United States and lawfully present noncitizens as defined
in Code of Federal Regulations, title deleted text begin 8deleted text end new text begin 45new text end , section deleted text begin 103.12deleted text end new text begin 152.2new text end . Undocumented
noncitizens are ineligible for MinnesotaCare. For purposes of this subdivision, an
undocumented noncitizen is an individual who resides in the United States without the
approval or acquiescence of the United States Citizenship and Immigration Services.
Families with children who are citizens or nationals of the United States must cooperate in
obtaining satisfactory documentary evidence of citizenship or nationality according to the
requirements of the federal Deficit Reduction Act of 2005, Public Law 109-171.

(b) Notwithstanding subdivisions 1 and 7, eligible persons include families and
individuals who are lawfully present and ineligible for medical assistance by reason of
immigration status and who have incomes equal to or less than 200 percent of federal
poverty guidelines.

Minnesota Statutes 2014, section 256L.05, is amended by adding a subdivision
to read:

new text begin 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.
new text end

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2014, section 256L.05, subdivision 3, is amended to read:

(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 deleted text begin verification of American Indian status is received
ordeleted text end eligibility is approveddeleted text begin , whichever is laterdeleted text end .

Minnesota Statutes 2014, section 256L.05, subdivision 3a, is amended to read:

(a) deleted text begin Beginning July 1, 2007,deleted text end An
enrollee's eligibility must be deleted text begin renewed every 12 monthsdeleted text end new text begin redetermined on an annual basisnew text end .
deleted text begin The 12-month period begins in the month after the month the application is approved.deleted text end new text begin 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.
new text end

(b) Each new period of eligibility must take into account any changes in
circumstances that impact eligibility and premium amount. deleted text begin 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
deleted text end new text begin Coverage beginsnew text end as provided in section 256L.06 deleted text begin in order for eligibility to continuedeleted text end .

deleted text begin (c) For children enrolled in MinnesotaCare, the first period of renewal begins the
month the enrollee turns 21 years of age.
deleted text end

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2014, section 256L.05, subdivision 4, is amended to read:

The commissioner of human services shall
determine an applicant's eligibility for MinnesotaCare no more than deleted text begin 30deleted text end new text begin 45new text end days from the
date that the application is received by the Department of Human Servicesnew text begin as set forth in
Code of Federal Regulations, title 42, section 435.911new text end . deleted text begin Beginning January 1, 2000, this
requirement also applies to local county human services agencies that determine eligibility
for MinnesotaCare.
deleted text end

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2014, section 256L.06, subdivision 3, is amended to read:

(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 new text begin following the month new text end for which the premium was due.
Persons disenrolled for nonpayment deleted text begin 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 disenrollmentdeleted text end new text begin may not
reenroll prior to the first day of the month following the payment of an amount equal to
two months' premiumsnew text end .

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2014, section 256L.121, subdivision 1, is amended to read:

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, deleted text begin subdivisions 1deleted text end deleted text begin to 32,deleted text end 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.

Minnesota Statutes 2014, section 270A.03, subdivision 5, is amended to read:

(a) "Debt" means a legal obligation of a natural person to pay a fixed
and certain amount of money, which equals or exceeds $25 and which is due and payable
to a claimant agency. The term includes criminal fines imposed under section 609.10 or
609.125, fines imposed for petty misdemeanors as defined in section 609.02, subdivision
4a, and restitution. A debt may arise under a contractual or statutory obligation, a court
order, or other legal obligation, but need not have been reduced to judgment.

A debt includes any legal obligation of a current recipient of assistance which is
based on overpayment of an assistance grant where that payment is based on a client
waiver or an administrative or judicial finding of an intentional program violation;
or where the debt is owed to a program wherein the debtor is not a client at the time
notification is provided to initiate recovery under this chapter and the debtor is not a
current recipient of food support, transitional child care, or transitional medical assistance.

(b) A debt does not include any legal obligation to pay a claimant agency for medical
care, including hospitalization if the income of the debtor at the time when the medical
care was rendered does not exceed the following amount:

(1) for an unmarried debtor, an income of $8,800 or less;

(2) for a debtor with one dependent, an income of $11,270 or less;

(3) for a debtor with two dependents, an income of $13,330 or less;

(4) for a debtor with three dependents, an income of $15,120 or less;

(5) for a debtor with four dependents, an income of $15,950 or less; and

(6) for a debtor with five or more dependents, an income of $16,630 or less.

(c) The commissioner shall adjust the income amounts in paragraph (b) by the
percentage determined pursuant to the provisions of section 1(f) of the Internal Revenue
Code, except that in section 1(f)(3)(B) the word "1999" shall be substituted for the word
"1992." For 2001, the commissioner shall then determine the percent change from the 12
months ending on August 31, 1999, to the 12 months ending on August 31, 2000, and in
each subsequent year, from the 12 months ending on August 31, 1999, to the 12 months
ending on August 31 of the year preceding the taxable year. The determination of the
commissioner pursuant to this subdivision shall not be considered a "rule" and shall not
be subject to the Administrative Procedure Act contained in chapter 14. The income
amount as adjusted must be rounded to the nearest $10 amount. If the amount ends in
$5, the amount is rounded up to the nearest $10 amount.

(d) Debt also includes an agreement to pay a MinnesotaCare premium, regardless
of the dollar amount of the premium authorized undernew text begin Minnesota Statutes 2014,new text end section
256L.15, subdivision 1a.

new text begin This section is effective January 1, 2016.
new text end

Minnesota Statutes 2014, section 270B.14, subdivision 1, is amended to read:

(a) On the request
of the commissioner of human services, the commissioner shall disclose return information
regarding taxes imposed by chapter 290, and claims for refunds under chapter 290A, to
the extent provided in paragraph (b) and for the purposes set forth in paragraph (c).

(b) Data that may be disclosed are limited to data relating to the identity,
whereabouts, employment, income, and property of a person owing or alleged to be owing
an obligation of child support.

(c) The commissioner of human services may request data only for the purposes of
carrying out the child support enforcement program and to assist in the location of parents
who have, or appear to have, deserted their children. Data received may be used only
as set forth in section 256.978.

(d) The commissioner shall provide the records and information necessary to
administer the supplemental housing allowance to the commissioner of human services.

(e) At the request of the commissioner of human services, the commissioner of
revenue shall electronically match the Social Security numbers and names of participants
in the telephone assistance plan operated under sections 237.69 to 237.71, with those of
property tax refund filers, and determine whether each participant's household income is
within the eligibility standards for the telephone assistance plan.

(f) The commissioner may provide records and information collected under sections
295.50 to 295.59 to the commissioner of human services for purposes of the Medicaid
Voluntary Contribution and Provider-Specific Tax Amendments of 1991, Public Law
102-234. Upon the written agreement by the United States Department of Health and
Human Services to maintain the confidentiality of the data, the commissioner may provide
records and information collected under sections 295.50 to 295.59 to the Centers for
Medicare and Medicaid Services section of the United States Department of Health and
Human Services for purposes of meeting federal reporting requirements.

(g) The commissioner may provide records and information to the commissioner of
human services as necessary to administer the early refund of refundable tax credits.

deleted text begin (h) The commissioner may disclose information to the commissioner of human
services necessary to verify income for eligibility and premium payment under the
MinnesotaCare program, under section 256L.05, subdivision 2.
deleted text end

deleted text begin (i)deleted text end new text begin (h)new text end The commissioner may disclose information to the commissioner of human
services necessary to verify whether applicants or recipients for the Minnesota family
investment program, general assistance, food support, Minnesota supplemental aid
program, and child care assistance have claimed refundable tax credits under chapter 290
and the property tax refund under chapter 290A, and the amounts of the credits.

deleted text begin (j)deleted text end new text begin (i)new text end The commissioner may disclose information to the commissioner of human
services necessary to verify income for purposes of calculating parental contribution
amounts under section 252.27, subdivision 2a.

new text begin This section is effective January 1, 2016.
new text end

new text begin In Minnesota Statutes and Minnesota Rules, the revisor of statutes shall strike
references to Minnesota Statutes, chapter 256L, and to statutory sections within that
chapter, and shall make all necessary grammatical and conforming changes.
new text end

new text begin This section is effective January 1, 2016.
new text end

new text begin Minnesota Statutes 2014, sections
256L.01, subdivisions 1, 1a, 1b, 2, 3, 3a, 5, 6, and 7; 256L.02, subdivisions 1, 2, 3, 5, and
6; 256L.03, subdivisions 1, 1a, 1b, 2, 3, 3a, 3b, 4, 4a, 5, and 6; 256L.04, subdivisions 1,
1a, 1c, 2, 2a, 7, 7a, 7b, 8, 10, 12, 13, and 14; 256L.05, subdivisions 1, 1a, 1b, 1c, 2, 3, 3a,
3c, 4, 5, and 6; 256L.06, subdivision 3; 256L.07, subdivisions 1, 2, 3, and 4; 256L.09,
subdivisions 1, 2, 4, 5, 6, and 7; 256L.10; 256L.11, subdivisions 1, 2, 2a, 3, 4, and 7;
256L.12; 256L.121; 256L.15, subdivisions 1, 1a, 1b, and 2; 256L.18; 256L.22; 256L.24;
256L.26; and 256L.28, new text end new text begin are repealed.
new text end

new text begin Minnesota Statutes 2014, sections 13.461,
subdivision 26; 16A.724, subdivision 3; 62A.046, subdivision 5; and 256.01, subdivision
35, new text end new text begin are repealed.
new text end

new text begin This section is effective January 1, 2016.
new text end

new text begin The commissioner of commerce, in consultation with the Board of Directors of
MNsure and the MNsure Legislative Oversight Committee, shall develop a proposal to
allow individuals to purchase qualified health plans outside of MNsure directly from
health plan companies and to allow eligible individuals to receive advanced premium tax
credits and cost-sharing reductions when purchasing these health plans. The commissioner
shall seek all federal waivers and approvals necessary to implement this proposal.
The commissioner shall submit a draft proposal to the MNsure board and the MNsure
Legislative Oversight Committee at least 30 days before submitting a final proposal to the
federal government and shall notify the board and legislative oversight committee of any
federal decision or action related to the proposal.
new text end

Minnesota Statutes 2014, section 15A.0815, subdivision 3, is amended to read:

The salary for a position listed in this subdivision
shall not exceed 120 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:

Executive director of Gambling Control Board;

Commissioner, Iron Range Resources and Rehabilitation Board;

Commissioner, Bureau of Mediation Services;

Ombudsman for Mental Health and Developmental Disabilities;

Chair, Metropolitan Council;

new text begin Executive Director, MNsure;
new text end

School trust lands director;

Executive director of pari-mutuel racing; and

Commissioner, Public Utilities Commission.

Minnesota Statutes 2014, section 62A.02, subdivision 2, is amended to read:

(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.

new text begin (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.
new text end

Minnesota Statutes 2014, section 62V.02, is amended by adding a subdivision
to read:

new text begin "Consumer assistance partner" means
individuals and entities certified by MNsure to serve as a navigator, in-person assister, or
certified application counselor.
new text end

Minnesota Statutes 2014, section 62V.03, subdivision 2, is amended to read:

(a) MNsure must be reviewed 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
13Ddeleted text begin , except that:deleted text end new text begin .
new text end

deleted text begin (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;
deleted text end

deleted text begin (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
deleted text end

deleted text begin (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.
deleted text end

(d) MNsure and provisions specified under this chapter are exempt fromdeleted text begin :
deleted text end

deleted text begin (1)deleted text end chapter 14, including section 14.386, except as specified in section 62V.05deleted text begin ; anddeleted text end new text begin .
new text end

deleted text begin (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, 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 may enter into an agreement with the commissioner of administration
for other services.
deleted text end

(e) The board and the Web site are 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) Section 3.3005 applies to any federal funds received by MNsure.

deleted text begin (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.
deleted text end

deleted text begin (h)deleted text end new text begin (g)new text end 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.

Minnesota Statutes 2014, section 62V.04, subdivision 1, is amended to read:

MNsure is governed by a board of directors with deleted text begin sevendeleted text end new text begin 11
new text end members.

Minnesota Statutes 2014, section 62V.04, subdivision 2, is amended to read:

(a) Board membership of MNsure consists of the following:

(1) deleted text begin threedeleted text end new text begin sixnew text end members appointed by the governor with the advice and consent of
deleted text begin bothdeleted text end the senate deleted text begin and the house of representatives acting separately in accordance with
paragraph (d)deleted text end , with one member representing the interests of individual consumers eligible
for individual market coverage, one member representing individual consumers eligible
for public health care program coverage, deleted text begin anddeleted text end one member representing small employersnew text begin ,
one member who is an insurance producer, and two members who are county employees
involved in the administration of public health care programsnew text end . Members are appointed to
serve four-year terms following the initial staggered-term lot determination;

(2) three members appointed by the governor with the advice and consent of deleted text begin bothdeleted text end the
senate deleted text begin and the house of representatives acting separately in accordance with paragraph (d)
deleted text end who have demonstrated expertise, leadership, and innovation in the following areas: one
member representing the areas of health administration, health care finance, health plan
purchasing, and health care delivery systems; one member representing the areas of public
health, health disparities, public health care programs, and the uninsured; and one member
representing health policy issues related to the small group and individual markets.
Members are appointed to serve four-year terms following the initial staggered-term lot
determination; deleted text begin and
deleted text end

(3) the commissioner of human services or a designeenew text begin ; and
new text end

new text begin (4) the chief information officer of MN.IT Services or a designeenew text end .

(b) Section 15.0597 shall apply to all appointments, except for the commissioner.

(c) The governor shall make appointments to the board that are consistent with
federal law and regulations regarding its composition and structure. All board members
appointed by the governor must be legal residents of Minnesota.

deleted text begin (d) Upon appointment by the governor, a board member shall exercise duties of
deleted text end deleted text begin office immediately. If both the house of representatives and the senate vote not to confirm
deleted text end deleted text begin an appointment, the appointment terminates on the day following the vote not to confirm
deleted text end deleted text begin in the second body to vote.
deleted text end

deleted text begin (e)deleted text end deleted text begin Initial appointments shall be made by April 30, 2013.
deleted text end

deleted text begin (f)deleted text end new text begin (d)new text end One of the deleted text begin sixdeleted text end new text begin ninenew text end members appointed under paragraph (a), clause (1) or (2),
must have experience in representing the needs of vulnerable populations and persons
with disabilities.

deleted text begin (g)deleted text end new text begin (e)new text end Membership on the board must include representation from outside the
seven-county metropolitan area, as defined in section 473.121, subdivision 2.

Minnesota Statutes 2014, section 62V.04, subdivision 4, is amended to read:

(a) Within one year prior to or at any time during
their appointed term, board members appointed under subdivision 2, paragraph (a),
clauses (1) and (2), shall not be employed by, be a member of the board of directors of, or
otherwise be a representative of a health carrier, institutional health care provider or other
entity providing health care, navigator, deleted text begin insurance producer,deleted text end or other entity in the business
of selling items or services of significant value to or through MNsure. For purposes of this
paragraph, "health care provider or entity" does not include an academic institution.

(b) Board members must recuse themselves from discussion of and voting on
an official matter if the board member has a conflict of interest. new text begin For board members
other than an insurance producer or a county employee, new text end a conflict of interest means an
association including a financial or personal association that has the potential to bias or
have the appearance of biasing a board member's decisions in matters related to MNsure
or the conduct of activities under this chapter.new text begin The board member who is an insurance
producer and the board members who are county employees are subject to section 10A.07.
new text end

(d) No member of the board may currently serve as a lobbyist, as defined under
section 10A.01, subdivision 21.

new text begin The governor shall appoint the executive director of MNsure. The executive director
serves in the unclassified service at the pleasure of the governor.
new text end

Minnesota Statutes 2014, section 62V.05, subdivision 1, is amended to read:

(a) The board shall operate MNsure according to this
chapter and applicable state and federal law.

(b) The board has the power to:

(1) employ personnelnew text begin , subject to the power of the governor to appoint the executive
director,new text end 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 deleted text begin 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 applydeleted text end new text begin . The director of MNsure shall not receive a salary increase on or
after July 1, 2015, unless the increase is approved under the process specified in section
15A.0815, subdivision 5new text end ;

(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) contract for the receipt and provision of goods and services;

(5) 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) 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 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.

Minnesota Statutes 2014, section 62V.05, subdivision 5, is amended to read:

deleted text begin (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.
deleted text end

deleted text begin (b) Paragraph (a) does not apply if by June 1, 2013, the legislature enacts regulatory
requirements that:
deleted text end

deleted text begin (1) apply uniformly to all health carriers and health plans in the individual market;
deleted text end

deleted text begin (2) apply uniformly to all health carriers and health plans in the small group market;
and
deleted text end

deleted text begin (3) satisfy minimum federal certification requirements under section 1311(c)(1) of
the Affordable Care Act, Public Law 111-148.
deleted text end

deleted text begin (c) In accordance with section 1311(e) of the Affordable Care Act, Public Law
111-148, the board shall establish policies and procedures for certification and selection
of health plans to be offered as qualified health plans through MNsure. The board shall
certify and select a health plan as a qualified health plan to be offered through MNsure, if:
deleted text end

deleted text begin (1) the health plan meets the minimum certification requirements established in
paragraph (a) or the market regulatory requirements in paragraph (b);
deleted text end

deleted text begin (2) the board determines that making the health plan available through MNsure is in
the interest of qualified individuals and qualified employers;
deleted text end

deleted text begin (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
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (d) In determining the interests of qualified individuals and employers under
paragraph (c), clause (2), the board 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
may consider:
deleted text end

deleted text begin (1) affordability;
deleted text end

deleted text begin (2) quality and value of health plans;
deleted text end

deleted text begin (3) promotion of prevention and wellness;
deleted text end

deleted text begin (4) promotion of initiatives to reduce health disparities;
deleted text end

deleted text begin (5) market stability and adverse selection;
deleted text end

deleted text begin (6) meaningful choices and access;
deleted text end

deleted text begin (7) alignment and coordination with state agency and private sector purchasing
strategies and payment reform efforts; and
deleted text end

deleted text begin (8) other criteria that the board determines appropriate.
deleted text end

deleted text begin (e) For qualified health plans offered through MNsure on or after January 1, 2015,
the board shall establish policies and procedures under paragraphs (c) and (d) for selection
of health plans to be offered as qualified health plans through MNsure by February 1
of each year, beginning February 1, 2014. The board 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 may use the process
described in subdivision 9.
deleted text end

deleted text begin (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.
deleted text end

new text begin (a) The board shall permit all health plans that meet the applicable certification
requirements to be offered through MNsure.
new text end

deleted text begin (g)deleted text end new text begin (b)new text end Under this subdivision, the board shall have the power to verify that health
carriers and health plans are properly certified to be eligible for participation in MNsure.

deleted text begin (h)deleted text end new text begin (c)new text end The board 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.

deleted text begin (i)deleted text end new text begin (d)new text end 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.

new text begin This section is effective July 1, 2015.
new text end

Minnesota Statutes 2014, section 62V.05, subdivision 6, is amended to read:

(a) The board 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 deleted text begin or selectiondeleted text end determination made by MNsure 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 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 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.

(d) This subdivision does not apply to appeals of determinations where a state
agency hearing is available under section 256.045.

Minnesota Statutes 2014, section 62V.05, is amended by adding a subdivision
to read:

new text begin MNsure shall provide a health carrier with
enrollment information for MNsure enrollees who have selected a qualified health plan
that is offered by that health carrier and who have been determined by MNsure to be
eligible for qualified health plan coverage. The enrollment information must be sufficient
for the health carrier to issue coverage and must be provided within 48 hours of the
determination of eligibility by MNsure.
new text end

Minnesota Statutes 2014, section 62V.05, is amended by adding a subdivision
to read:

new text begin For coverage taking effect on
or after January 1, 2016, the MNsure board shall provide members of a household with the
option of purchasing individual health coverage through MNsure and shall apportion any
advanced premium tax credit available to a household choosing this option between the
separate health plans providing coverage to the household members.
new text end

Minnesota Statutes 2014, section 62V.05, is amended by adding a subdivision
to read:

new text begin MNsure is prohibited from
certifying, selecting, or offering products and policies of coverage that do not meet the
definition of health plan or dental plan as provided in section 62V.02.
new text end

Minnesota Statutes 2014, section 62V.11, subdivision 2, is amended to read:

(a) The Legislative Oversight
Committee shall consist of five members of the senate, three members appointed by
the majority leader of the senate, and two members appointed by the minority leader of
the senate; and five members of the house of representatives, three members appointed
by the speaker of the house, and two members appointed by the minority leader of the
house of representatives.

(b) Appointed legislative members serve at the pleasure of the appointing authority
and shall continue to serve until their successors are appointed.

(c) The first meeting of the committee shall be convened by the chair of the
Legislative Coordinating Commission. Members shall elect a chair at the first meeting.
The chair must convene at least one meeting deleted text begin annuallydeleted text end new text begin each quarter of the yearnew text end , and may
convene other meetings as deemed necessary.

Minnesota Statutes 2014, section 62V.11, is amended by adding a subdivision
to read:

new text begin (a) The board shall submit an enrollment report
to the Legislative Oversight Committee on a monthly basis. The report must include:
new text end

new text begin (1) total enrollment numbers;
new text end

new text begin (2) the number of commercial plans selected;
new text end

new text begin (3) the percentage of the commercial plans for which the first month's premium
has been paid; and
new text end

new text begin (4) the average number of days between a consumer's submission of an application
and transmittal to the health carrier chosen.
new text end

new text begin (b) At each of the committee's quarterly meetings, the board shall present the
following information:
new text end

new text begin (1) at the first quarterly meeting, a progress report on the most recent MNsure
open enrollment period and a progress report on technology upgrades and any proposed
schedule for future technology upgrades;
new text end

new text begin (2) at the second quarterly meeting, the annual budget for MNsure, as required by
subdivision 4;
new text end

new text begin (3) at the third quarterly meeting, a hearing in conjunction with the Department of
Human Services regarding any backlog created by qualifying life events for enrollees in
public or private health plans through MNsure; and
new text end

new text begin (4) at the fourth quarterly meeting, a hearing in conjunction with the Department of
Commerce on the release of premium rates and in conjunction with the Department of
Human Services on reimbursement of MNsure for public program enrollment.
new text end

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

new text begin Effective January 1, 2016, the
commissioner shall conduct background studies on any individual required under section
256.962, subdivision 9, to have a background study completed under this chapter.
new text end

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

new text begin 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.
new text end

Minnesota Statutes 2014, section 256.962, is amended by adding a subdivision
to read:

new text begin Effective January
1, 2016, 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.
new text end

new text begin (a) The commissioner of management and budget must assign the positions of
managerial employees of MNsure, other than the director, to salary ranges and salaries in
the managerial plan, effective the first payroll period beginning on or after July 1, 2015.
new text end

new text begin (b) Of the four additional members of the board appointed under the amendments
to Minnesota Statutes, section 62V.04, one shall have an initial term of two years, two
shall have an initial term of three years, and one shall have an initial term of four years,
determined by lot by the secretary of state.
new text end

new text begin (c) Board members must be appointed by the governor within 30 days of final
enactment of these sections.
new text end

new text begin (a) The commissioner of human services, in consultation with the Board of Directors
of MNsure and the MNsure Legislative Oversight Committee, 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 SHOP 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.
new text end

new text begin (b) The commissioner shall seek all federal waivers and approvals necessary to
implement the proposal in paragraph (a). The commissioner shall submit a draft proposal
to the MNsure board and the MNsure Legislative Oversight Committee at least 30 days
before submitting a final proposal to the federal government, and shall notify the board
and Legislative Oversight Committee of any federal decision or action received regarding
the proposal and submitted waiver.
new text end

new text begin This section is effective the day following final enactment.
new text end

new text begin Members of the MNsure Board on the effective date of this section and new
members appointed as required by the amendments to Minnesota Statutes, section 62V.04,
are subject to confirmation by the senate. If any of these members is not confirmed by the
senate before adjournment sine die of the 2016 regular session, the appointment of that
member to the board terminates on the day following adjournment sine die.
new text end

new text begin The commissioner of commerce, in cooperation
with the secretary of Health and Human Services, shall establish a federally facilitated
marketplace for Minnesota, for coverage beginning January 1, 2017. The federally
facilitated marketplace shall take the place of MNsure, established under Minnesota
Statutes, chapter 62V. In working with the secretary of Health and Human Services to
develop the federally facilitated marketplace, the commissioner of commerce shall:
new text end

new text begin (1) seek to incorporate, where appropriate and cost-effective, elements of the
MNsure eligibility determination system;
new text end

new text begin (2) regularly consult with stakeholder groups, including but not limited to
representatives of state agencies, health care providers, health plan companies, brokers,
and consumers; and
new text end

new text begin (3) seek all available federal grants and funds for state planning and development
costs.
new text end

new text begin The commissioner of commerce,
in consultation with the commissioner of human services, the chief information officer
of MN.IT, and the MNsure Board, shall develop and present to the 2016 legislature an
implementation plan for conversion to a federally facilitated marketplace. The plan must
include draft legislation for any changes in state law necessary to implement a federally
facilitated marketplace, including but not limited to necessary changes to Laws 2013,
chapter 84, and technical and conforming changes related to the repeal of Minnesota
Statutes, chapter 62V.
new text end

new text begin The commissioner of commerce, in consultation with
the commissioner of human services, the chief information officer of MN.IT, and the
MNsure Board, shall contract with a vendor to provide technical assistance in developing
and implementing the plan for conversion to a federally facilitated marketplace.
new text end

new text begin The commissioner shall not implement
this section if the United States Supreme Court rules in King v. Burwell (No. 14-114)
that persons obtaining qualified health plan coverage through a federally facilitated
marketplace are not eligible for advanced premium tax credits.
new text end

new text begin (a) The legislature shall not appropriate or authorize the use of state funds, and the
MNsure Board and the commissioner of human services shall not allocate, authorize the
use of, or expend board or agency funds, as a state match to obtain federal grant funding
for MNsure, including, but not limited to, grants to support the development and operation
of the MNsure eligibility determination system, unless the following conditions are met:
new text end

new text begin (1) 20 percent of the state match and 20 percent of federal grant funds received are
deposited into a premium reimbursement account established by the MNsure Board, for
use as provided in paragraph (b);
new text end

new text begin (2) the commissioner of human services and the legislative auditor have verified
that all persons currently enrolled in medical assistance and MinnesotaCare, who were
enrolled in medical assistance or MinnesotaCare as of September 30, 2013, have had their
eligibility for the program redetermined at least once since September 30, 2013;
new text end

new text begin (3) the administrative costs of MNsure are less than five percent of MNsure's total
operating budget in each year; and
new text end

new text begin (4) verification from the Office of the Legislative Auditor that:
new text end

new text begin (i) all life events or changes in circumstances are being processed in a timely manner
by MNsure and the Department of Human Services; and
new text end

new text begin (ii) MNsure is transmitting electronic enrollment files in a format that conforms with
standards under the federal Health Insurance Portability and Accountability Act of 1996.
new text end

new text begin (b) Funds deposited into the premium reimbursement account shall be used only to
reimburse the first month's premium for health coverage for any individual who submitted
a complete application for qualified health plan coverage through MNsure, but did not
receive their policy card or other appropriate verification of coverage within 20 days of
submittal of the completed application to MNsure. The MNsure Board shall provide this
reimbursement on a first-come, first-served basis, subject to the limits of available funding.
new text end

new text begin This section is effective the day following final enactment.
new text end

new text begin (a) Minnesota Statutes 2014, sections 62V.01; 62V.02; 62V.03; 62V.04; 62V.05;
62V.06; 62V.07; 62V.08; 62V.09; 62V.10; and 62V.11, new text end new text begin are repealed, effective January 1,
2017. This repealer shall not take effect if the United States Supreme Court rules in King
v. Burwell (No. 14-114) that persons obtaining qualified health plan coverage through a
federally facilitated marketplace are not eligible for advanced premium tax credits.
new text end

new text begin (b) new text end new text begin Minnesota Statutes 2014, section 13D.08, subdivision 5a, new text end new text begin is repealed.
new text end

Minnesota Statutes 2014, section 13.461, is amended by adding a
subdivision to read:

new text begin Data on ABLE accounts
and designated beneficiaries of ABLE accounts are classified under section 256Q.05,
subdivision 7.
new text end

Minnesota Statutes 2014, section 245A.06, is amended by adding a subdivision
to read:

new text begin (a) For programs licensed under both this chapter
and chapter 245D, if the license holder operates more than one service site under a single
license governed by chapter 245D, the order issued under this section shall be specific to
the service site or sites at which the violations of applicable law or rules occurred. The
order shall not apply to other service sites governed by chapter 245D and operated by the
same license holder unless the commissioner has included in the order the articulable basis
for applying the order to another service site.
new text end

new text begin (b) If the commissioner has issued more than one license to the license holder under
this chapter, the conditions imposed under this section shall be specific to the license for
the program at which the violations of applicable law or rules occurred and shall not apply
to other licenses held by the same license holder if those programs are being operated in
substantial compliance with applicable law and rules.
new text end

new text begin (a) A license holder who has made a timely appeal pursuant to section 245A.06,
subdivision 4, or 245A.07, subdivision 3, or the commissioner may initiate a discussion
about a possible settlement agreement related to the licensing sanction. For the purposes
of this section, the following conditions apply to a settlement agreement reached by the
parties:
new text end

new text begin (1) if the parties enter into a settlement agreement, the effect of the agreement shall
be that the appeal is withdrawn and the agreement shall constitute the full agreement
between the commissioner and the party who filed the appeal; and
new text end

new text begin (2) the settlement agreement must identify the agreed upon actions the license holder
has taken and will take in order to achieve and maintain compliance with the licensing
requirements that the commissioner determined the license holder had violated.
new text end

new text begin (b) Neither the license holder nor the commissioner is required to initiate a
settlement discussion under this section.
new text end

new text begin (c) If a settlement discussion is initiated by the license holder, the commissioner
shall respond to the license holder within 14 calendar days of receipt of the license
holder's submission.
new text end

new text begin (d) If the commissioner agrees to engage in settlement discussions, the commissioner
may decide at any time not to continue settlement discussions with a license holder.
new text end

Minnesota Statutes 2014, section 245A.155, subdivision 1, is amended to read:

This section applies to
foster care agencies and licensed foster care providers who place, supervise, or care for
individuals who rely on medical monitoring equipment to sustain life or monitor a medical
conditionnew text begin that could become life-threatening without proper use of the medical equipment
new text end in respite care or foster care.

Minnesota Statutes 2014, section 245A.155, subdivision 2, is amended to read:

In order for an agency to place an
individual who relies on medical equipment to sustain life or monitor a medical condition
new text begin that could become life-threatening without proper use of the medical equipmentnew text end with a
foster care provider, the agency must ensure that the foster care provider has received the
training to operate such equipment as observed and confirmed by a qualified source,
and that the provider:

(1) is currently caring for an individual who is using the same equipment in the
foster home; or

(2) has written documentation that the foster care provider has cared for an
individual who relied on such equipment within the past six months; or

(3) has successfully completed training with the individual being placed with the
provider.

Minnesota Statutes 2014, section 245A.65, subdivision 2, is amended to read:

All license holders shall establish and enforce
ongoing written program abuse prevention plans and individual abuse prevention plans as
required under section 626.557, subdivision 14.

(a) The scope of the program abuse prevention plan is limited to the population,
physical plant, and environment within the control of the license holder and the location
where licensed services are provided. In addition to the requirements in section 626.557,
subdivision 14, the program abuse prevention plan shall meet the requirements in clauses
(1) to (5).

(1) The assessment of the population shall include an evaluation of the following
factors: age, gender, mental functioning, physical and emotional health or behavior of the
client; the need for specialized programs of care for clients; the need for training of staff to
meet identified individual needs; and the knowledge a license holder may have regarding
previous abuse that is relevant to minimizing risk of abuse for clients.

(2) The assessment of the physical plant where the licensed services are provided
shall include an evaluation of the following factors: the condition and design of the
building as it relates to the safety of the clients; and the existence of areas in the building
which are difficult to supervise.

(3) The assessment of the environment for each facility and for each site when living
arrangements are provided by the agency shall include an evaluation of the following
factors: the location of the program in a particular neighborhood or community; the type
of grounds and terrain surrounding the building; the type of internal programming; and
the program's staffing patterns.

(4) The license holder shall provide an orientation to the program abuse prevention
plan for clients receiving services. If applicable, the client's legal representative must be
notified of the orientation. The license holder shall provide this orientation for each new
person within 24 hours of admission, or for persons who would benefit more from a later
orientation, the orientation may take place within 72 hours.

(5) The license holder's governing bodynew text begin or the governing body's delegated
representativenew text end shall review the plan at least annually using the assessment factors in the
plan and any substantiated maltreatment findings that occurred since the last review. The
governing bodynew text begin or the governing body's delegated representativenew text end shall revise the plan,
if necessary, to reflect the review results.

(6) A copy of the program abuse prevention plan shall be posted in a prominent
location in the program and be available upon request to mandated reporters, persons
receiving services, and legal representatives.

(b) In addition to the requirements in section 626.557, subdivision 14, the individual
abuse prevention plan shall meet the requirements in clauses (1) and (2).

(1) The plan shall include a statement of measures that will be taken to minimize the
risk of abuse to the vulnerable adult when the individual assessment required in section
626.557, subdivision 14, paragraph (b), indicates the need for measures in addition to the
specific measures identified in the program abuse prevention plan. The measures shall
include the specific actions the program will take to minimize the risk of abuse within
the scope of the licensed services, and will identify referrals made when the vulnerable
adult is susceptible to abuse outside the scope or control of the licensed services. When
the assessment indicates that the vulnerable adult does not need specific risk reduction
measures in addition to those identified in the program abuse prevention plan, the
individual abuse prevention plan shall document this determination.

(2) An individual abuse prevention plan shall be developed for each new person as
part of the initial individual program plan or service plan required under the applicable
licensing rule. The review and evaluation of the individual abuse prevention plan shall
be done as part of the review of the program plan or service plan. The person receiving
services shall participate in the development of the individual abuse prevention plan to the
full extent of the person's abilities. If applicable, the person's legal representative shall be
given the opportunity to participate with or for the person in the development of the plan.
The interdisciplinary team shall document the review of all abuse prevention plans at least
annually, using the individual assessment and any reports of abuse relating to the person.
The plan shall be revised to reflect the results of this review.

Minnesota Statutes 2014, section 245D.02, is amended by adding a subdivision
to read:

new text begin "Working day" means Monday, Tuesday, Wednesday,
Thursday, or Friday, excluding any legal holiday.
new text end

Minnesota Statutes 2014, section 245D.05, subdivision 1, is amended to read:

(a) The license holder is responsible for meeting
health service needs assigned in the coordinated service and support plan or the
coordinated service and support plan addendum, consistent with the person's health needs.
new text begin Unless directed otherwise in the coordinated service and support plan or the coordinated
service and support plan addendum,new text end the license holder is responsible for promptly
notifying the person's legal representative, if any, and the case manager of changes in a
person's physical and mental health needs affecting health service needs assigned to the
license holder in the coordinated service and support plan or the coordinated service
and support plan addendum, when discovered by the license holder, unless the license
holder has reason to know the change has already been reported. The license holder
must document when the notice is provided.

(b) If responsibility for meeting the person's health service needs has been assigned
to the license holder in the coordinated service and support plan or the coordinated service
and support plan addendum, the license holder must maintain documentation on how the
person's health needs will be met, including a description of the procedures the license
holder will follow in order to:

(1) provide medication setup, assistance, or administration according to this chapter.
Unlicensed staff responsible for medication setup or medication administration under this
section must complete training according to section 245D.09, subdivision 4a, paragraph (d);

(2) monitor health conditions according to written instructions from a licensed
health professional;

(3) assist with or coordinate medical, dental, and other health service appointments; or

(4) use medical equipment, devices, or adaptive aides or technology safely and
correctly according to written instructions from a licensed health professional.

Minnesota Statutes 2014, section 245D.05, subdivision 2, is amended to read:

(a) For purposes of this subdivision,
"medication administration" means:

(1) checking the person's medication record;

(2) preparing the medication as necessary;

(3) administering the medication or treatment to the person;

(4) documenting the administration of the medication or treatment or the reason for
not administering the medication or treatment; and

(5) reporting to the prescriber or a nurse any concerns about the medication or
treatment, including side effects, effectiveness, or a pattern of the person refusing to
take the medication or treatment as prescribed. Adverse reactions must be immediately
reported to the prescriber or a nurse.

(b)(1) If responsibility for medication administration is assigned to the license holder
in the coordinated service and support plan or the coordinated service and support plan
addendum, the license holder must implement medication administration procedures to
ensure a person takes medications and treatments as prescribed. The license holder must
ensure that the requirements in clauses (2) and (3) have been met before administering
medication or treatment.

(2) The license holder must obtain written authorization from the person or the
person's legal representative to administer medication or treatment deleted text begin and must obtain
reauthorization annually as neededdeleted text end . This authorization shall remain in effect unless it is
withdrawn in writing and may be withdrawn at any time. If the person or the person's
legal representative refuses to authorize the license holder to administer medication, the
medication must not be administered. The refusal to authorize medication administration
must be reported to the prescriber as expediently as possible.

(3) For a license holder providing intensive support services, the medication or
treatment must be administered according to the license holder's medication administration
policy and procedures as required under section 245D.11, subdivision 2, clause (3).

(c) The license holder must ensure the following information is documented in the
person's medication administration record:

(1) the information on the current prescription label or the prescriber's current
written or electronically recorded order or prescription that includes the person's name,
description of the medication or treatment to be provided, and the frequency and other
information needed to safely and correctly administer the medication or treatment to
ensure effectiveness;

(2) information on any risks or other side effects that are reasonable to expect, and
any contraindications to its use. This information must be readily available to all staff
administering the medication;

(3) the possible consequences if the medication or treatment is not taken or
administered as directed;

(4) instruction on when and to whom to report the following:

(i) if a dose of medication is not administered or treatment is not performed as
prescribed, whether by error by the staff or the person or by refusal by the person; and

(ii) the occurrence of possible adverse reactions to the medication or treatment;

(5) notation of any occurrence of a dose of medication not being administered or
treatment not performed as prescribed, whether by error by the staff or the person or by
refusal by the person, or of adverse reactions, and when and to whom the report was
made; and

(6) notation of when a medication or treatment is started, administered, changed, or
discontinued.

Minnesota Statutes 2014, section 245D.06, subdivision 1, is amended to read:

(a) The license holder must
respond to incidents under section 245D.02, subdivision 11, that occur while providing
services to protect the health and safety of and minimize risk of harm to the person.

(b) The license holder must maintain information about and report incidents to the
person's legal representative or designated emergency contact and case manager within
24 hours of an incident occurring while services are being provided, within 24 hours of
discovery or receipt of information that an incident occurred, unless the license holder
has reason to know that the incident has already been reported, or as otherwise directed
in a person's coordinated service and support plan or coordinated service and support
plan addendum. An incident of suspected or alleged maltreatment must be reported as
required under paragraph (d), and an incident of serious injury or death must be reported
as required under paragraph (e).

(c) When the incident involves more than one person, the license holder must not
disclose personally identifiable information about any other person when making the report
to each person and case manager unless the license holder has the consent of the person.

(d) Within 24 hours of reporting maltreatment as required under section 626.556
or 626.557, the license holder must inform the case manager of the report unless there is
reason to believe that the case manager is involved in the suspected maltreatment. The
license holder must disclose the nature of the activity or occurrence reported and the
agency that received the report.

(e) The license holder must report the death or serious injury of the person as
required in paragraph (b) and to the Department of Human Services Licensing Division,
and the Office of Ombudsman for Mental Health and Developmental Disabilities as
required under section 245.94, subdivision 2a, within 24 hours of the deathnew text begin or serious
injurynew text end , or receipt of information that the deathnew text begin or serious injurynew text end occurred, unless the license
holder has reason to know that the deathnew text begin or serious injurynew text end has already been reported.

(f) When a death or serious injury occurs in a facility certified as an intermediate
care facility for persons with developmental disabilities, the death or serious injury must
be reported to the Department of Health, Office of Health Facility Complaints, and the
Office of Ombudsman for Mental Health and Developmental Disabilities, as required
under sections 245.91 and 245.94, subdivision 2a, unless the license holder has reason to
know that the deathnew text begin or serious injurynew text end has already been reported.

(g) The license holder must conduct an internal review of incident reports of deaths
and serious injuries that occurred while services were being provided and that were not
reported by the program as alleged or suspected maltreatment, for identification of incident
patterns, and implementation of corrective action as necessary to reduce occurrences.
The review must include an evaluation of whether related policies and procedures were
followed, whether the policies and procedures were adequate, whether there is a need for
additional staff training, whether the reported event is similar to past events with the
persons or the services involved, and whether there is a need for corrective action by the
license holder to protect the health and safety of persons receiving services. Based on
the results of this review, the license holder must develop, document, and implement a
corrective action plan designed to correct current lapses and prevent future lapses in
performance by staff or the license holder, if any.

(h) The license holder must verbally report the emergency use of manual restraint
of a person as required in paragraph (b) within 24 hours of the occurrence. The license
holder must ensure the written report and internal review of all incident reports of the
emergency use of manual restraints are completed according to the requirements in section
245D.061 or successor provisions.

Minnesota Statutes 2014, section 245D.06, subdivision 2, is amended to read:

The license holder must:

(1) ensure the following when the license holder is the owner, lessor, or tenant
of the service site:

(i) the service site is a safe and hazard-free environment;

(ii) that toxic substances or dangerous items are inaccessible to persons served by
the program only to protect the safety of a person receiving services when a known safety
threat exists and not as a substitute for staff supervision or interactions with a person who
is receiving services. If toxic substances or dangerous items are made inaccessible, the
license holder must document an assessment of the physical plant, its environment, and its
population identifying the risk factors which require toxic substances or dangerous items
to be inaccessible and a statement of specific measures to be taken to minimize the safety
risk to persons receiving services and to restore accessibility to all persons receiving
services at the service site;

(iii) doors are locked from the inside to prevent a person from exiting only when
necessary to protect the safety of a person receiving services and not as a substitute for
staff supervision or interactions with the person. If doors are locked from the inside, the
license holder must document an assessment of the physical plant, the environment and
the population served, identifying the risk factors which require the use of locked doors,
and a statement of specific measures to be taken to minimize the safety risk to persons
receiving services at the service site; and

(iv) a staff person is available at the service site who is trained in basic first aid and,
when required in a person's coordinated service and support plan or coordinated service
and support plan addendum, cardiopulmonary resuscitation (CPR) whenever persons are
present and staff are required to be at the site to provide direct support service. The CPR
training must include deleted text begin in-persondeleted text end instruction, hands-on practice, and an observed skills
assessment under the direct supervision of a CPR instructor;

(2) maintain equipment, vehicles, supplies, and materials owned or leased by the
license holder in good condition when used to provide services;

(3) follow procedures to ensure safe transportation, handling, and transfers of the
person and any equipment used by the person, when the license holder is responsible for
transportation of a person or a person's equipment;

(4) be prepared for emergencies and follow emergency response procedures to
ensure the person's safety in an emergency; and

(5) follow universal precautions and sanitary practices, including hand washing, for
infection prevention and control, and to prevent communicable diseases.

Minnesota Statutes 2014, section 245D.06, subdivision 7, is amended to read:

(a) Use of the instructional techniques
and intervention procedures as identified in paragraphs (b) and (c) is permitted when used
on an intermittent or continuous basis. When used on a continuous basis, it must be
addressed in a person's coordinated service and support plan addendum as identified in
sections 245D.07 and 245D.071. For purposes of this chapter, the requirements of this
subdivision supersede the requirements identified in Minnesota Rules, part 9525.2720.

(b) Physical contact or instructional techniques must use the least restrictive
alternative possible to meet the needs of the person and may be used:

(1) to calm or comfort a person by holding that person with no resistance from
that person;

(2) to protect a person known to be at risk of injury due to frequent falls as a result
of a medical condition;

(3) to facilitate the person's completion of a task or response when the person does
not resist or the person's resistance is minimal in intensity and duration;

(4) to block or redirect a person's limbs or body without holding the person or
limiting the person's movement to interrupt the person's behavior that may result in injury
to self or others with less than 60 seconds of physical contact by staff; or

(5) to redirect a person's behavior when the behavior does not pose a serious threat
to the person or others and the behavior is effectively redirected with less than 60 seconds
of physical contact by staff.

(1) allow a licensed health care professional to safely conduct a medical examination
or to provide medical treatment ordered by a licensed health care professional deleted text begin to a person
necessary to promote healing or recovery from an acute, meaning short-term, medical
conditiondeleted text end ;

(2) assist in the safe evacuation or redirection of a person in the event of an
emergency and the person is at imminent risk of harm; or

(3) position a person with physical disabilities in a manner specified in the person's
coordinated service and support plan addendum.

Any use of manual restraint as allowed in this paragraph must comply with the restrictions
identified in subdivision 6, paragraph (b).

(d) Use of adaptive aids or equipment, orthotic devices, or other medical equipment
ordered by a licensed health professional to treat a diagnosed medical condition do not in
and of themselves constitute the use of mechanical restraint.

Minnesota Statutes 2014, section 245D.07, subdivision 2, is amended to read:

(a) License
holders providing basic support services must meet the requirements of this subdivision.

(b) Within 15new text begin calendarnew text end days of service initiation the license holder must complete
a preliminary coordinated service and support plan addendum based on the coordinated
service and support plan.

(c) Within 60new text begin calendarnew text end days of service initiation the license holder must review
and revise as needed the preliminary coordinated service and support plan addendum to
document the services that will be provided including how, when, and by whom services
will be provided, and the person responsible for overseeing the delivery and coordination
of services.

(d) The license holder must participate in service planning and support team
meetings for the person following stated timelines established in the person's coordinated
service and support plan or as requested by the person or the person's legal representative,
the support team or the expanded support team.

Minnesota Statutes 2014, section 245D.071, subdivision 5, is amended to read:

(a) The license holder must give the
person or the person's legal representative and case manager an opportunity to participate
in the ongoing review and development of the service plan and the methods used to support
the person and accomplish outcomes identified in subdivisions 3 and 4. The license holder,
in coordination with the person's support team or expanded support team, must meet
with the person, the person's legal representative, and the case manager, and participate
in service plan review meetings following stated timelines established in the person's
coordinated service and support plan or coordinated service and support plan addendum or
within 30 days of a written request by the person, the person's legal representative, or the
case manager, at a minimum of once per year. The purpose of the service plan review
is to determine whether changes are needed to the service plan based on the assessment
information, the license holder's evaluation of progress towards accomplishing outcomes,
or other information provided by the support team or expanded support team.

(b) The license holder must summarize the person's status and progress toward
achieving the identified outcomes and make recommendations and identify the rationale
for changing, continuing, or discontinuing implementation of supports and methods
identified in subdivision 4 in a deleted text begin writtendeleted text end report deleted text begin sent to the person or the person's legal
representative and case manager five working days prior to the review meeting, unless the
person, the person's legal representative, or the case manager requests to receive the report
deleted text end new text begin availablenew text end at the time of thenew text begin progress reviewnew text end meeting.new text begin The report must be sent at least
five working days prior to the progress review meeting if requested by the team in the
coordinated service and support plan or coordinated service and support plan addendum.
new text end

(c) new text begin The license holder must send the coordinated service and support plan addendum
to the person, the person's legal representative, and the case manager by mail within ten
working days of the progress review meeting.new text end Within ten working days of the deleted text begin progress
review meetingdeleted text end new text begin mailing of the coordinated service and support plan addendumnew text end , the license
holder must obtain dated signatures from the person or the person's legal representative
and the case manager to document approval of any changes to the coordinated service and
support plan addendum.

new text begin (d) If, within ten working days of submitting changes to the coordinated service
and support plan and coordinated service and support plan addendum, the person or the
person's legal representative or case manager has not signed and returned to the license
holder the coordinated service and support plan or coordinated service and support plan
addendum or has not proposed written modifications to the license holder's submission, the
submission is deemed approved and the coordinated service and support plan addendum
becomes effective and remains in effect until the legal representative or case manager
submits a written request to revise the coordinated service and support plan addendum.
new text end

Minnesota Statutes 2014, section 245D.09, subdivision 3, is amended to read:

(a) The license holder must ensure that staff providing
direct support, or staff who have responsibilities related to supervising or managing the
provision of direct support service, are competent as demonstrated through skills and
knowledge training, experience, and education relevant to the primary disability of the
person and to meet the person's needs and additional requirements as written in the
coordinated service and support plan or coordinated service and support plan addendum,
or when otherwise required by the case manager or the federal waiver plan. The license
holder must verify and maintain evidence of staff competency, including documentation of:

(1) education and experience qualifications relevant to the job responsibilities
assigned to the staff and to the primary disability of persons served by the program,
including a valid degree and transcript, or a current license, registration, or certification,
when a degree or licensure, registration, or certification is required by this chapter or in the
coordinated service and support plan or coordinated service and support plan addendum;

(2) demonstrated competency in the orientation and training areas required under
this chapter, and when applicable, completion of continuing education required to
maintain professional licensure, registration, or certification requirements. Competency in
these areas is determined by the license holder through knowledge testing or observed
skill assessment conducted by the trainer or instructornew text begin or by an individual who has been
previously deemed competent by the trainer or instructor in the area being assessednew text end ; and

(3) except for a license holder who is the sole direct support staff, periodic
performance evaluations completed by the license holder of the direct support staff
person's ability to perform the job functions based on direct observation.

(b) Staff under 18 years of age may not perform overnight duties or administer
medication.

Minnesota Statutes 2014, section 245D.09, subdivision 5, is amended to read:

A license holder must provide annual training to direct
support staff on the topics identified in subdivision 4, clauses (3) to (10). new text begin If the direct
support staff has a first aid certification, annual training under subdivision 4, clause (9), is
not required as long as the certification remains current. new text end A license holder must provide a
minimum of 24 hours of annual training to direct service staff providing intensive services
and having fewer than five years of documented experience and 12 hours of annual
training to direct service staff providing intensive services and having five or more years
of documented experience in topics described in subdivisions 4 and 4a, paragraphs (a) to
(f). Training on relevant topics received from sources other than the license holder may
count toward training requirements. A license holder must provide a minimum of 12 hours
of annual training to direct service staff providing basic services and having fewer than
five years of documented experience and six hours of annual training to direct service staff
providing basic services and having five or more years of documented experience.

Minnesota Statutes 2014, section 245D.22, subdivision 4, is amended to read:

(a) A staff person trained in first
aid must be available on site and, when required in a person's coordinated service and
support plan or coordinated service and support plan addendum, be able to provide
cardiopulmonary resuscitation, whenever persons are present and staff are required to be
at the site to provide direct service. The CPR training must include deleted text begin in-persondeleted text end instruction,
hands-on practice, and an observed skills assessment under the direct supervision of a
CPR instructor.

(b) A facility must have first aid kits readily available for use by, and that meet
the needs of, persons receiving services and staff. At a minimum, the first aid kit must
be equipped with accessible first aid supplies including bandages, sterile compresses,
scissors, an ice bag or cold pack, an oral or surface thermometer, mild liquid soap,
adhesive tape, and first aid manual.

Minnesota Statutes 2014, section 245D.31, subdivision 3, is amended to read:

The case
manager, in consultation with the interdisciplinary team, must determine at least once each
year which of the ratios in subdivisions 4, 5, and 6 is appropriate for each person receiving
services on the basis of the characteristics described in subdivisions 4, 5, and 6. The ratio
assigned each person and the documentation of how the ratio was arrived at must be kept
in each person's individual service plan. Documentation must include an assessment of the
person with respect to the characteristics in subdivisions 4, 5, and 6 deleted text begin recorded on a standard
assessment form required by the commissionerdeleted text end .

Minnesota Statutes 2014, section 245D.31, subdivision 4, is amended to read:

A person must be assigned a
staff ratio requirement of one to four if:

(1) on a daily basis the person requires total care and monitoring or constant
hand-over-hand physical guidance to successfully complete at least three of the following
activities: toileting, communicating basic needs, eating,new text begin ornew text end ambulating; deleted text begin or is not capable
of taking appropriate action for self-preservation under emergency conditions;deleted text end or

(2) the person engages in conduct that poses an imminent risk of physical harm to
self or others at a documented level of frequency, intensity, or duration requiring frequent
daily ongoing intervention and monitoring as established in the person's coordinated
service and support plan or coordinated service and support plan addendum.

Minnesota Statutes 2014, section 245D.31, subdivision 5, is amended to read:

A person must be assigned a
staff ratio requirement of one to eight if:

(1) the person does not meet the requirements in subdivision 4; and

(2) on a daily basis the person requires verbal prompts or spot checks and minimal
or no physical assistance to successfully complete at least deleted text begin fourdeleted text end new text begin threenew text end of the following
activities: toileting, communicating basic needs, eating, new text begin or new text end ambulatingdeleted text begin , or taking
appropriate action for self-preservation under emergency conditionsdeleted text end .

Minnesota Statutes 2014, section 252.27, subdivision 2a, is amended to read:

(a) The natural or adoptive parents of a minor
child, including a child determined eligible for medical assistance without consideration of
parental income, must contribute to the cost of services used by making monthly payments
on a sliding scale based on income, unless the child is married or has been married, parental
rights have been terminated, or the child's adoption is subsidized according to chapter
259A or through title IV-E of the Social Security Act. The parental contribution is a partial
or full payment for medical services provided for diagnostic, therapeutic, curing, treating,
mitigating, rehabilitation, maintenance, and personal care services as defined in United
States Code, title 26, section 213, needed by the child with a chronic illness or disability.

(b) For households with adjusted gross income equal to or greater than 275 percent
of federal poverty guidelines, the parental contribution shall be computed by applying the
following schedule of rates to the adjusted gross income of the natural or adoptive parents:

(1) if the adjusted gross income is equal to or greater than 275 percent of federal
poverty guidelines and less than or equal to 545 percent of federal poverty guidelines,
the parental contribution shall be determined using a sliding fee scale established by the
commissioner of human services which begins at deleted text begin 2.48deleted text end new text begin 2.23new text end percent of adjusted gross
income at 275 percent of federal poverty guidelines and increases to deleted text begin 6.75deleted text end new text begin 6.08new text end percent of
adjusted gross income for those with adjusted gross income up to 545 percent of federal
poverty guidelines;

(2) if the adjusted gross income is greater than 545 percent of federal poverty
guidelines and less than 675 percent of federal poverty guidelines, the parental
contribution shall be deleted text begin 6.75deleted text end new text begin 6.08new text end percent of adjusted gross income;

(3) if the adjusted gross income is equal to or greater than 675 percent of federal
poverty guidelines and less than 975 percent of federal poverty guidelines, the parental
contribution shall be determined using a sliding fee scale established by the commissioner
of human services which begins at deleted text begin 6.75deleted text end new text begin 6.08new text end percent of adjusted gross income at 675 percent
of federal poverty guidelines and increases to deleted text begin ninedeleted text end new text begin 8.1new text end percent of adjusted gross income
for those with adjusted gross income up to 975 percent of federal poverty guidelines; and

(4) if the adjusted gross income is equal to or greater than 975 percent of federal
poverty guidelines, the parental contribution shall be deleted text begin 11.25deleted text end new text begin 10.13new text end percent of adjusted
gross income.

If the child lives with the parent, the annual adjusted gross income is reduced by
$2,400 prior to calculating the parental contribution. If the child resides in an institution
specified in section 256B.35, the parent is responsible for the personal needs allowance
specified under that section in addition to the parental contribution determined under this
section. The parental contribution is reduced by any amount required to be paid directly to
the child pursuant to a court order, but only if actually paid.

(c) The household size to be used in determining the amount of contribution under
paragraph (b) includes natural and adoptive parents and their dependents, including the
child receiving services. Adjustments in the contribution amount due to annual changes
in the federal poverty guidelines shall be implemented on the first day of July following
publication of the changes.

(d) For purposes of paragraph (b), "income" means the adjusted gross income of the
natural or adoptive parents determined according to the previous year's federal tax form,
except, effective retroactive to July 1, 2003, taxable capital gains to the extent the funds
have been used to purchase a home shall not be counted as income.

(e) The contribution shall be explained in writing to the parents at the time eligibility
for services is being determined. The contribution shall be made on a monthly basis
effective with the first month in which the child receives services. Annually upon
redetermination or at termination of eligibility, if the contribution exceeded the cost of
services provided, the local agency or the state shall reimburse that excess amount to
the parents, either by direct reimbursement if the parent is no longer required to pay a
contribution, or by a reduction in or waiver of parental fees until the excess amount is
exhausted. All reimbursements must include a notice that the amount reimbursed may be
taxable income if the parent paid for the parent's fees through an employer's health care
flexible spending account under the Internal Revenue Code, section 125, and that the
parent is responsible for paying the taxes owed on the amount reimbursed.

(f) The monthly contribution amount must be reviewed at least every 12 months;
when there is a change in household size; and when there is a loss of or gain in income
from one month to another in excess of ten percent. The local agency shall mail a written
notice 30 days in advance of the effective date of a change in the contribution amount.
A decrease in the contribution amount is effective in the month that the parent verifies a
reduction in income or change in household size.

(g) Parents of a minor child who do not live with each other shall each pay the
contribution required under paragraph (a). An amount equal to the annual court-ordered
child support payment actually paid on behalf of the child receiving services shall be
deducted from the adjusted gross income of the parent making the payment prior to
calculating the parental contribution under paragraph (b).

(h) The contribution under paragraph (b) shall be increased by an additional five
percent if the local agency determines that insurance coverage is available but not
obtained for the child. For purposes of this section, "available" means the insurance is a
benefit of employment for a family member at an annual cost of no more than five percent
of the family's annual income. For purposes of this section, "insurance" means health
and accident insurance coverage, enrollment in a nonprofit health service plan, health
maintenance organization, self-insured plan, or preferred provider organization.

Parents who have more than one child receiving services shall not be required
to pay more than the amount for the child with the highest expenditures. There shall
be no resource contribution from the parents. The parent shall not be required to pay
a contribution in excess of the cost of the services provided to the child, not counting
payments made to school districts for education-related services. Notice of an increase in
fee payment must be given at least 30 days before the increased fee is due.

(i) The contribution under paragraph (b) shall be reduced by $300 per fiscal year if,
in the 12 months prior to July 1:

(1) the parent applied for insurance for the child;

(2) the insurer denied insurance;

(3) the parents submitted a complaint or appeal, in writing to the insurer, submitted
a complaint or appeal, in writing, to the commissioner of health or the commissioner of
commerce, or litigated the complaint or appeal; and

(4) as a result of the dispute, the insurer reversed its decision and granted insurance.

For purposes of this section, "insurance" has the meaning given in paragraph (h).

A parent who has requested a reduction in the contribution amount under this
paragraph shall submit proof in the form and manner prescribed by the commissioner or
county agency, including, but not limited to, the insurer's denial of insurance, the written
letter or complaint of the parents, court documents, and the written response of the insurer
approving insurance. The determinations of the commissioner or county agency under this
paragraph are not rules subject to chapter 14.

Minnesota Statutes 2014, section 256.478, is amended to read:

deleted text begin (a)deleted text end 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.

deleted text begin (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.
deleted text end

Minnesota Statutes 2014, section 256.975, subdivision 2, is amended to read:

The deleted text begin boarddeleted text end new text begin Minnesota Board on Agingnew text end shall carry out the following
duties:

(1) to advise the governor and heads of state departments and agencies regarding
policy, programs, and services affecting the aging;

(2) to provide a mechanism for coordinating plans and activities of state departments
and citizens' groups as they pertain to aging;

(3) to create public awareness of the special needs and potentialities of older persons;

(4) to gather and disseminate information about research and action programs,
and to encourage state departments and other agencies to conduct needed research in
the field of aging;

(5) to stimulate, guide, and provide technical assistance in the organization of local
councils on aging;

(6) to provide continuous review of ongoing services, programs and proposed
legislation affecting the elderly in Minnesota;

(7) to administer and to make policy relating to all aspects of the Older Americans
Act of 1965, as amended, including implementation thereof; deleted text begin and
deleted text end

(8) to award grants, enter into contracts, and adopt rules the Minnesota Board on
Aging deems necessary to carry out the purposes of this sectiondeleted text begin .deleted text end new text begin ;
new text end

new text begin (9) develop the criteria and procedures to allocate the grants under subdivision 11,
evaluate all applications on a competitive basis and award the grants, and select qualified
providers to offer technical assistance to grant applicants and grantees. The selected
provider shall provide applicants and grantees assistance with project design, evaluation
methods, materials, and training; and
new text end

new text begin (10) submit by January 15, 2017, and on each January 15 thereafter, a progress
report on the dementia grants programs under subdivision 11 to the chairs and ranking
minority members of the senate and house of representatives committees and divisions
with jurisdiction over health finance and policy. The report shall include:
new text end

new text begin (i) information on each grant recipient;
new text end

new text begin (ii) a summary of all projects or initiatives undertaken with each grant;
new text end

new text begin (iii) the measurable outcomes established by each grantee, an explanation of the
evaluation process used to determine whether the outcomes were met, and the results of
the evaluation;
new text end

new text begin (iv) an accounting of how the grant funds were spent; and
new text end

new text begin (v) the overall impact of the projects and initiatives that were conducted.
new text end

Minnesota Statutes 2014, section 256.975, is amended by adding a subdivision
to read:

new text begin (a) The Minnesota Board on
Aging shall award competitive grants to eligible applicants for regional and local projects
and initiatives targeted to a designated community, which may consist of a specific
geographic area or population, to increase awareness of Alzheimer's disease and other
dementias, increase the rate of cognitive testing in the population at risk for dementias,
promote the benefits of early diagnosis of dementias, or connect caregivers of persons
with dementia to education and resources.
new text end

new text begin (b) The project areas for grants include:
new text end

new text begin (1) local or community-based initiatives to promote the benefits of physician
consultations for all individuals who suspect a memory or cognitive problem;
new text end

new text begin (2) local or community-based initiatives to promote the benefits of early diagnosis of
Alzheimer's disease and other dementias; and
new text end

new text begin (3) local or community-based initiatives to provide informational materials and
other resources to caregivers of persons with dementia.
new text end

new text begin (c) Eligible applicants for local and regional grants may include, but are not limited
to, community health boards, school districts, colleges and universities, community
clinics, tribal communities, nonprofit organizations, and other health care organizations.
new text end

new text begin (d) Applicants must submit proposals for available grants to the Minnesota Board on
Aging by September 1, 2015, and each September 1 thereafter. The application must:
new text end

new text begin (1) describe the proposed initiative, including the targeted community and how the
initiative meets the requirements of this subdivision; and
new text end

new text begin (2) identify the proposed outcomes of the initiative and the evaluation process to be
used to measure these outcomes.
new text end

new text begin (e) In awarding the regional and local dementia grants, the Minnesota Board on
Aging must give priority to applicants who demonstrate that the proposed project:
new text end

new text begin (1) is supported by and appropriately targeted to the community the applicant serves;
new text end

new text begin (2) is designed to coordinate with other community activities related to other health
initiatives, particularly those initiatives targeted at the elderly;
new text end

new text begin (3) is conducted by an applicant able to demonstrate expertise in the project areas;
new text end

new text begin (4) utilizes and enhances existing activities and resources or involves innovative
approaches to achieve success in the project areas; and
new text end

new text begin (5) strengthens community relationships and partnerships in order to achieve the
project areas.
new text end

new text begin (f) The board shall divide the state into specific geographic regions and allocate a
percentage of the money available for the local and regional dementia grants to projects or
initiatives aimed at each geographic region.
new text end

new text begin (g) The board shall award any available grants by October 1, 2015, and each
October 1 thereafter.
new text end

new text begin (h) Each grant recipient shall report to the board on the progress of the initiative at
least once during the grant period, and within two months of the end of the grant period
shall submit a final report to the board that includes the outcome results.
new text end

new text begin This section is effective July 1, 2015.
new text end

Minnesota Statutes 2014, section 256B.057, subdivision 9, is amended to read:

(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.

(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 deleted text begin $65deleted text end new text begin $35new text end 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 deleted text begin fivedeleted text end new text begin one-half of onenew text end 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).

Minnesota Statutes 2014, section 256B.0916, subdivision 2, is amended to read:

(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.

new text begin (f) The commissioner shall manage waiver allocations in such a manner as to fully
use available state and federal waiver appropriations.
new text end

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2014, section 256B.0916, subdivision 11, is amended to
read:

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 commissionernew text begin for approvalnew text end . The plan must
state the actions the agency will take to correct their overspending for the deleted text begin yeardeleted text end new text begin two years
new text end following the period when the overspending occurred. deleted text begin Failure to correct overspending
shall result in recoupment of spending in excess of the allocationdeleted text end new text begin 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 waiversnew text end .
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.

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2014, section 256B.0916, is amended by adding a
subdivision to read:

new text begin 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.
new text end

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2014, section 256B.097, subdivision 3, is amended to read:

(a) There is hereby created a State Quality
Council which must define regional quality councils, and carry out a community-based,
person-directed quality review component, and a comprehensive system for effective
incident reporting, investigation, analysis, and follow-up.

(b) By August 1, 2011, the commissioner of human services shall appoint the
members of the initial State Quality Council. Members shall include representatives
from the following groups:

(1) disability service recipients and their family members;

(2) during the first four years of the State Quality Council, there must be at least
three members from the Region 10 stakeholders. As regional quality councils are formed
under subdivision 4, each regional quality council shall appoint one member;

(3) disability service providers;

(4) disability advocacy groups; and

(5) county human services agencies and staff from the Department of Human
Services and Ombudsman for Mental Health and Developmental Disabilities.

(c) Members of the council who do not receive a salary or wages from an employer
for time spent on council duties may receive a per diem payment when performing council
duties and functions.

(d) The State Quality Council shall:

(1) assist the Department of Human Services in fulfilling federally mandated
obligations by monitoring disability service quality and quality assurance and
improvement practices in Minnesota;

(2) establish state quality improvement priorities with methods for achieving results
and provide an annual report to the legislative committees with jurisdiction over policy
and funding of disability services on the outcomes, improvement priorities, and activities
undertaken by the commission during the previous state fiscal year;

(3) identify issues pertaining to financial and personal risk that impede Minnesotans
with disabilities from optimizing choice of community-based services; and

(4) recommend to the chairs and ranking minority members of the legislative
committees with jurisdiction over human services and civil law by January 15, 2014,
statutory and rule changes related to the findings under clause (3) that promote
individualized service and housing choices balanced with appropriate individualized
protection.

(e) The State Quality Council, in partnership with the commissioner, shall:

(1) approve and direct implementation of the community-based, person-directed
system established in this section;

(2) recommend an appropriate method of funding this system, and determine the
feasibility of the use of Medicaid, licensing fees, as well as other possible funding options;

(3) approve measurable outcomes in the areas of health and safety, consumer
evaluation, education and training, providers, and systems;

(4) establish variable licensure periods not to exceed three years based on outcomes
achieved; and

(5) in cooperation with the Quality Assurance Commission, design a transition plan
for licensed providers from Region 10 into the alternative licensing systemnew text begin by July 1, 2015new text end .

(f) The State Quality Council shall notify the commissioner of human services that a
facility, program, or service has been reviewed by quality assurance team members under
subdivision 4, paragraph deleted text begin (b)deleted text end new text begin (c)new text end , clause (13), and qualifies for a license.

(g) The State Quality Council, in partnership with the commissioner, shall establish
an ongoing review process for the system. The review shall take into account the
comprehensive nature of the system which is designed to evaluate the broad spectrum of
licensed and unlicensed entities that provide services to persons with disabilities. The
review shall address efficiencies and effectiveness of the system.

(h) The State Quality Council may recommend to the commissioner certain
variances from the standards governing licensure of programs for persons with disabilities
in order to improve the quality of services so long as the recommended variances do
not adversely affect the health or safety of persons being served or compromise the
qualifications of staff to provide services.

(i) The safety standards, rights, or procedural protections referenced under
subdivision deleted text begin 2deleted text end new text begin 4new text end , paragraph deleted text begin (c)deleted text end new text begin (d)new text end , shall not be varied. The State Quality Council may
make recommendations to the commissioner or to the legislature in the report required
under paragraph deleted text begin (c)deleted text end new text begin (d)new text end regarding alternatives or modifications to the safety standards,
rights, or procedural protections referenced under subdivision deleted text begin 2deleted text end new text begin (4)new text end , paragraph deleted text begin (c)deleted text end new text begin (d)new text end .

(j) The State Quality Council may hire staff to perform the duties assigned in this
subdivision.

Minnesota Statutes 2014, section 256B.097, subdivision 4, is amended to read:

(a) new text begin By July 1, 2015, new text end the commissioner shall
establishdeleted text begin , as selected by the State Quality Council,deleted text end new text begin or continue the operation of three
new text end regional quality councils of key stakeholders, deleted text begin includingdeleted text end new text begin as selected by the State Quality
Council. One regional quality council shall be established in the Twin Cities metropolitan
area, one shall be established in greater Minnesota, and one shall be the Quality Assurance
Commission established under section 256B.0951. By July 1, 2016, the commissioner
shall establish three additional regional quality councils, as selected by the State Quality
Council. The regional quality councils established under this paragraph shall include
new text end regional representatives of:

(1) disability service recipients and their family members;

(2) disability service providers;

(3) disability advocacy groups; and

(4) county human services agencies and staff from the Department of Human
Services and Ombudsman for Mental Health and Developmental Disabilities.

new text begin (b) In establishing the regional quality councils, the commissioner shall:
new text end

new text begin (1) appoint the members from the groups identified in paragraph (a) by July 1, 2015;
new text end

new text begin (2) designate a chair for each council or prescribe a process for each council to
select a chair from among its members;
new text end

new text begin (3) set term limits for members of the regional quality councils;
new text end

new text begin (4) set the total number or maximum number of members of each regional council;
new text end

new text begin (5) set the number or proportion of members representing each of the groups
identified in paragraph (a);
new text end

new text begin (6) set deadlines and requirements for annual reports to the chair of the State
Quality Council and to the chairs of the legislative committees in the senate and house of
representatives with primary jurisdiction over human services on the status, outcomes,
improvement priorities, and activities in the regions; and
new text end

new text begin (7) convene a first meeting of each regional quality council by July 1, 2016, or
identify a person responsible for convening the first meeting of each regional quality
council and require that the person convene the first meeting by July 1, 2016.
new text end

deleted text begin (b)deleted text end new text begin (c)new text end Each regional quality council shall:

(1) direct and monitor the community-based, person-directed quality assurance
system in this section;

(2) approve a training program for quality assurance team members under clause (13);

(3) review summary reports from quality assurance team reviews and make
recommendations to the State Quality Council regarding program licensure;

(4) make recommendations to the State Quality Council regarding the system;

(5) resolve complaints between the quality assurance teams, counties, providers,
persons receiving services, their families, and legal representatives;

(6) analyze and review quality outcomes and critical incident data reporting
incidents of life safety concerns immediately to the Department of Human Services
licensing division;

(7) provide information and training programs for persons with disabilities and their
families and legal representatives on service options and quality expectations;

(8) disseminate information and resources developed to other regional quality
councils;

(9) respond to state-level priorities;

(10) establish regional priorities for quality improvement;

(11) submit an annual report to the State Quality Council on the status, outcomes,
improvement priorities, and activities in the region;

(12) choose a representative to participate on the State Quality Council and assume
other responsibilities consistent with the priorities of the State Quality Council; and

(13) recruit, train, and assign duties to members of quality assurance teams, taking
into account the size of the service provider, the number of services to be reviewed,
the skills necessary for the team members to complete the process, and ensure that no
team member has a financial, personal, or family relationship with the facility, program,
or service being reviewed or with anyone served at the facility, program, or service.
Quality assurance teams must be comprised of county staff, persons receiving services
or the person's families, legal representatives, members of advocacy organizations,
providers, and other involved community members. Team members must complete
the training program approved by the regional quality council and must demonstrate
performance-based competency. Team members may be paid a per diem and reimbursed
for expenses related to their participation in the quality assurance process.

deleted text begin (c)deleted text end new text begin (d)new text end The commissioner shall monitor the safety standards, rights, and procedural
protections for the monitoring of psychotropic medications and those identified under
sections 245.825; 245.91 to 245.97; 245A.09, subdivision 2, paragraph (c), clauses (2)
and (5); 245A.12; 245A.13; 252.41, subdivision 9; 256B.092, subdivision 1b, clause
(7); 626.556; and 626.557.

deleted text begin (d)deleted text end new text begin (e)new text end The regional quality councils may hire staff to perform the duties assigned
in this subdivision.

deleted text begin (e)deleted text end new text begin (f)new text end The regional quality councils may charge fees for their services.

deleted text begin (f)deleted text end new text begin (g)new text end The quality assurance process undertaken by a regional quality council consists
of an evaluation by a quality assurance team of the facility, program, or service. The
process must include an evaluation of a random sample of persons served. The sample must
be representative of each service provided. The sample size must be at least five percent but
not less than two persons served. All persons must be given the opportunity to be included
in the quality assurance process in addition to those chosen for the random sample.

deleted text begin (g)deleted text end new text begin (h)new text end A facility, program, or service may contest a licensing decision of the regional
quality council as permitted under chapter 245A.

Minnesota Statutes 2014, section 256B.49, subdivision 26, is amended to read:

new text begin (a) Effective through June 30, 2018, new text end county and
tribal agencies will be responsible for authorizations in excess of the new text begin annual new text end 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 commissionernew text begin for approvalnew text end .
The plan must state the actions the agency will take to correct their overspending for
the deleted text begin yeardeleted text end new text begin two years new text end following the period when the overspending occurred. deleted text begin Failure to
correct overauthorizations shall result in recoupment of authorizations in excess of the
allocation.deleted text end new text begin 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. new text end 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.new text begin 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.
new text end

new text begin (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.
new text end

Minnesota Statutes 2014, section 256B.49, is amended by adding a
subdivision to read:

new text begin (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.
new text end

new text begin (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.
new text end

Minnesota Statutes 2014, section 256B.4913, subdivision 4a, is amended to
read:

(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) deleted text begin 1.0deleted text end new text begin 0.5 new text end 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); deleted text begin and
deleted text end

(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)new text begin ; and
new text end

new text begin (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 periodnew text end .

(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.

Minnesota Statutes 2014, section 256B.4913, subdivision 5, is amended to read:

new text begin (a) new text end 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.

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

Minnesota Statutes 2014, section 256B.4914, subdivision 2, is amended to read:

(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 deleted text begin brought in solelydeleted text end 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; new text begin and new text end an assessment tooldeleted text begin ; anddeleted text end new text begin .
new text end Provider observation of an individual's needsnew text begin must also be considerednew text end .

(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.

Minnesota Statutes 2014, section 256B.4914, subdivision 6, is amended to read:

(a) Payments for residential
support services, as defined in sections 256B.092, subdivision 11, and 256B.49,
subdivision 22, must be calculated as follows:

(1) determine the number of shared staffing and individual direct staff hours to meet
a recipient's needs provided on site or through monitoring technology;

(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. This is defined as the direct-care rate;

(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 shared and individual direct staff hours provided on site
or through monitoring technology and nursing hours by the appropriate staff wages in
subdivision 5, paragraph (a), or the customized direct-care rate;

(5) multiply the number of shared and individual direct staff hours provided on site
or through monitoring technology and nursing hours by the product of the supervision
span of control ratio in subdivision 5, paragraph (b), clause (1), and the appropriate
supervision wage in subdivision 5, paragraph (a), clause (16);

(6) combine the results of clauses (4) and (5), excluding any shared and individual
direct staff hours provided through monitoring technology, and multiply the result by one
plus the employee vacation, sick, and training allowance ratio in subdivision 5, paragraph
(b), clause (2). This is defined as the direct staffing cost;

(7) for employee-related expenses, multiply the direct staffing cost, excluding any
shared and individual direct staff hours provided through monitoring technology, by one
plus the employee-related cost ratio in subdivision 5, paragraph (b), clause (3);

(8) for client programming and supports, the commissioner shall add $2,179; and

(9) for transportation, if provided, the commissioner shall add $1,680, or $3,000 if
customized for adapted transport, based on the resident with the highest assessed need.

(b) The total rate must be calculated using the following steps:

(1) subtotal paragraph (a), clauses (7) to (9), and the direct staffing cost of any
shared and individual direct staff hours provided through monitoring technology that
was excluded in clause (7);

(2) sum the standard general and administrative rate, the program-related expense
ratio, and the absence and utilization ratio;

(3) divide the result of clause (1) by one minus the result of clause (2). This is
the total payment amount; and

(4) adjust the result of clause (3) by a factor to be determined by the commissioner
to adjust for regional differences in the cost of providing services.

(c) The payment methodology for customized living, 24-hour customized living, and
residential care services must be the customized living tool. Revisions to the customized
living tool must be made to reflect the services and activities unique to disability-related
recipient needs.

deleted text begin (d) The commissioner shall establish a Monitoring Technology Review Panel to
annually review and approve the plans, safeguards, and rates that include residential
direct care provided remotely through monitoring technology. Lead agencies shall submit
individual service plans that include supervision using monitoring technology to the
Monitoring Technology Review Panel for approval. Individual service plans that include
supervision using monitoring technology as of December 31, 2013, shall be submitted to
the Monitoring Technology Review Panel, but the plans are not subject to approval.
deleted text end

deleted text begin (e)deleted text end new text begin (d)new text end For individuals enrolled prior to January 1, 2014, the days of service
authorized must meet or exceed the days of service used to convert service agreements
in effect on December 1, 2013, and must not result in a reduction in spending or service
utilization due to conversion during the implementation period under section 256B.4913,
subdivision 4a. If during the implementation period, an individual's historical rate,
including adjustments required under section 256B.4913, subdivision 4a, paragraph (c),
is equal to or greater than the rate determined in this subdivision, the number of days
authorized for the individual is 365.

deleted text begin (f)deleted text end new text begin (e)new text end The number of days authorized for all individuals enrolling after January 1,
2014, in residential services must include every day that services start and end.

Minnesota Statutes 2014, section 256B.4914, subdivision 8, is amended to read:

Payments for
unit-based deleted text begin with programdeleted text end servicesnew text begin with programmingnew text end , 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;

(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.

Minnesota Statutes 2014, section 256B.4914, subdivision 10, is amended to
read:

(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 new text begin under
sections 245D.05, 245D.06, 245D.07, 245D.071, 245D.081, and 245D.09, and for services
provided by a license holder new text end 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) deleted text begin values for the facility use rate in day servicesdeleted text end new text begin the weightings used in the day
service ratios and adjustments to those weightingsnew text end ;

(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.

new text begin (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 (1). 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.
new text end

new text begin (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.
new text end

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2014, section 256B.4914, subdivision 14, is amended to
read:

(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.new text begin 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).
new text end

(b) Lead agencies must new text begin act on an exception request within 30 days and notify the
initiator of the request of their recommendation in writing. A lead agency shall new text end submit new text begin all
new text end exception requests new text begin along with its recommendation new text end to the deleted text begin statedeleted text end new text begin commissionernew text end .

(1) an individual has service needs that cannot be met through additional units
of service; deleted text begin or
deleted text end

(2) an individual's rate determined under subdivisions 6, 7, 8, and 9 deleted text begin resultsdeleted text end new text begin is so
insufficient that it has resulted new text end in an individual deleted text begin being dischargeddeleted text end new text begin receiving a notice of
discharge from the individual's provider; or
new text end

new text begin (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 authorizednew text end .

(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;new text begin and
new text end

(4) deleted text begin the duration of the rate exception; and
deleted text end

deleted text begin (5)deleted text end 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 recipientsnew text begin , an interested party, or the license holder
that would receive the rate exception increasenew text end may request that a lead agency submit an
exception request. A lead agency that denies such a request shall notify the individual
waiver recipientnew text begin , interested party, or license holder new text end of its decision and the reasons for
denying the request in writing no later than 30 days after the deleted text begin individual'sdeleted text end request has been
madenew text begin 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)new text end .

(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
recipientnew text begin , the interested party, and the license holdernew text end 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.

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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 the eligibility for an exception will occur as annual
service renewals are completed.
new text end

new text begin (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).
new text end

Minnesota Statutes 2014, section 256B.4914, subdivision 15, is amended to
read:

(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) deleted text begin During the first two years of implementation under section 256B.4913,
deleted text end Lead agencies exceeding their allocations new text begin shall be subject to the provisions new text end under
sections 256B.092 and 256B.49 deleted text begin 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, 2014deleted text end .

new text begin The commissioner of human services shall adjust
the historical rates calculated in section 256B.4913, subdivision 4a, paragraph (b), in
effect during the banding period under section 256B.4913, subdivision 4a, paragraph (a),
for each reimbursement rate increase effective on or after July 1, 2015.
new text end

new text begin The commissioner of human services shall
adjust the rates calculated in section 256B.4914, subdivision 6, paragraphs (b) and (c), for
each reimbursement rate increase effective on or after July 1, 2015.
new text end

new text begin The commissioner of human services shall adjust the rates
calculated in section 256B.4914, subdivision 7, for each reimbursement rate increase
effective on or after July 1, 2015.
new text end

new text begin The commissioner of human
services shall adjust the rate calculated in section 256B.4914, subdivision 8, for each
reimbursement rate increase effective on or after July 1, 2015.
new text end

new text begin The commissioner of human
services shall adjust the rate calculated in section 256B.4914, subdivision 9, for each
reimbursement rate increase effective on or after July 1, 2015.
new text end

Minnesota Statutes 2014, section 256B.492, is amended to read:

(a) Individuals receiving services under a home and community-based waiver under
section 256B.092 or 256B.49 may receive services in the following settings:

(1) deleted text begin an individual's own home or familydeleted text end homenew text begin and community-based settings that
comply with all requirements identified by the federal Centers for Medicare and Medicaid
Services in the Code of Federal Regulations, title 42, section 441.301(c), and with the
requirements of the federally approved transition plan and waiver plans for each home
and community-based services waivernew text end ;new text begin and
new text end

(2) deleted text begin a licensed adult foster care or child foster care setting of up to five people or
community residential setting of up to five people; anddeleted text end new text begin settings required by the Housing
Opportunities for Persons with AIDS Program.
new text end

deleted text begin (3) community living settings as defined in section 256B.49, subdivision 23, where
individuals with disabilities may reside in all of the units in a building of four or fewer units,
and who receive services under a home and community-based waiver occupy no more
than the greater of four or 25 percent of the units in a multifamily building of more than
four units, unless required by the Housing Opportunities for Persons with AIDS Program.
deleted text end

(b) The settings in paragraph (a) must notdeleted text begin :
deleted text end

deleted text begin (1) be located in a building that is a publicly or privately operated facility that
provides institutional treatment or custodial care;
deleted text end

deleted text begin (2) be located in a building on the grounds of or adjacent to a public or private
institution;
deleted text end

deleted text begin (3) be a housing complex designed expressly around an individual's diagnosis or
disability, unless required by the Housing Opportunities for Persons with AIDS Program;
deleted text end

deleted text begin (4) be segregated based on a disability, either physically or because of setting
characteristics, from the larger community; and
deleted text end

deleted text begin (5)deleted text end have the qualities of an institution which include, but are not limited to:
regimented meal and sleep times, limitations on visitors, and lack of privacy. Restrictions
agreed to and documented in the person's individual service plan shall not result in a
residence having the qualities of an institution as long as the restrictions for the person are
not imposed upon others in the same residence and are the least restrictive alternative,
imposed for the shortest possible time to meet the person's needs.

deleted text begin (c) The provisions of paragraphs (a) and (b) do not apply to any setting in which
individuals receive services under a home and community-based waiver as of July 1,
2012, and the setting does not meet the criteria of this section.
deleted text end

deleted text begin (d) Notwithstanding paragraph (c), a program in Hennepin County established as
part of a Hennepin County demonstration project is qualified for the exception allowed
under paragraph (c).
deleted text end

deleted text begin (e) Notwithstanding paragraphs (a) and (b), a program in Hennepin County, located
in the city of Golden Valley, within the city of Golden Valley's Highway 55 West
redevelopment area, that is not a provider-owned or controlled home and community-based
setting, and is scheduled to open by July 1, 2016, is exempt from the restrictions in
paragraphs (a) and (b). If the program fails to comply with the Centers for Medicare and
Medicaid Services rules for home and community-based settings, the exemption is void.
deleted text end

deleted text begin (f) The commissioner shall submit an amendment to the waiver plan no later than
December 31, 2012.
deleted text end

new text begin This section is effective July 1, 2016.
new text end

Minnesota Statutes 2014, section 256B.5012, is amended by adding a
subdivision to read:

new text begin (a) For the rate period from
July 1, 2016, to June 30, 2017, the commissioner shall increase operating payments for
each facility reimbursed under this section equal to five percent of the operating payment
rates in effect on June 30, 2016.
new text end

new text begin (b) For each facility, the commissioner shall apply the rate increase based on
occupied beds, using the percentage specified in this subdivision multiplied by the total
payment rate, including the variable rate but excluding the property-related payment
rate in effect on the preceding date. The total rate increase shall include the adjustment
provided in section 256B.501, subdivision 12.
new text end

new text begin (c) Facilities that receive a rate increase under this subdivision shall use 90 percent
of the additional revenue to increase compensation-related costs for employees directly
employed by the facility on or after the effective date of the rate adjustment in paragraph
(a), except:
new text end

new text begin (1) persons employed in the central office of a corporation or entity that has an
ownership interest in the facility or exercises control over the facility; and
new text end

new text begin (2) persons paid by the facility under a management contract.
new text end

new text begin (d) Compensation-related costs include:
new text end

new text begin (1) wages and salaries;
new text end

new text begin (2) the employer's share of FICA taxes, Medicare taxes, state and federal
unemployment taxes, workers' compensation, and mileage reimbursement;
new text end

new text begin (3) the employer's share of health and dental insurance, life insurance, disability
insurance, long-term care insurance, uniform allowance, pensions, and contributions to
employee retirement accounts; and
new text end

new text begin (4) other benefits provided and workforce needs, including the recruiting and
training of employees as specified in the distribution plan required under paragraph (h).
new text end

new text begin (e) For public employees under a collective bargaining agreement, the increases for
wages and benefits for certain staff are available and pay rates must be increased only to
the extent that the increases comply with laws governing public employees' collective
bargaining. A provider that receives additional revenue for compensation-related cost
increases under paragraph (c), that is a public employer, and whose fiscal year ends on
June 30 of each year, must use the portion of the rate increase specified in paragraph (c)
only for compensation-related cost increases implemented between July 1, 2016, and
August 1, 2016. A provider that receives additional revenue for compensation-related cost
increases under paragraph (c), that is a public employer, and whose fiscal year ends on
December 31 of each year, must use the portion of the compensation-related cost increases
specified in paragraph (c) only for compensation-related cost increases implemented
during the contract period.
new text end

new text begin (f) For a facility that has employees that are represented by an exclusive bargaining
representative, the provider shall obtain a letter of acceptance of the distribution plan
required under paragraph (h), in regard to the members of the bargaining unit, signed by
the exclusive bargaining agent. Upon receipt of the letter of acceptance, the facility shall
be deemed to have met all the requirements of this subdivision in regard to the members
of the bargaining unit. Upon request, the facility shall produce the letter of acceptance for
the commissioner.
new text end

new text begin (g) The commissioner shall amend state grant contracts that include direct
personnel-related grant expenditures to include the allocation for the portion of the
contract related to employee compensation. Grant contracts for compensation-related
services must be amended to pass through the adjustment within 60 days of the effective
date of the increase and must be retroactive to the effective date of the rate adjustment.
new text end

new text begin (h) A facility that receives a rate adjustment under paragraph (a) that is subject to
paragraphs (c) and (d) shall prepare and, upon request, submit to the commissioner a
distribution plan that specifies the amount of money the facility expects to receive that is
subject to the requirements of paragraphs (c) and (d), including how that money will be
distributed to increase compensation for employees.
new text end

new text begin (i) Within six months of the effective date of the rate adjustment, the facility shall
post the distribution plan required under paragraph (h) for a period of at least six weeks in
an area of the facility's operation to which all eligible employees have access and shall
provide instructions for employees who do not believe they have received the wage and
other compensation-related increases specified in the distribution plan. The instructions
must include a mailing address, e-mail address, and telephone number that an employee
may use to contact the commissioner or the commissioner's representative.
new text end

new text begin 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, the Medicaid program under
title XIX of the Social Security Act, the Supplemental Security Income program under
title XVI of the Social Security Act, the beneficiary's employment, and other sources.
new text end

new text begin This chapter may be cited as the "Minnesota Achieving a Better Life Experience
Act" or "Minnesota ABLE Act."
new text end

new text begin For the purposes of this chapter, the terms defined in this
section have the meanings given them.
new text end

new text begin "ABLE account" has the meaning given in section
529A(e)(6) of the Internal Revenue Code.
new text end

new text begin "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.
new text end

new text begin "Account" means the formal record of transactions relating to an
ABLE plan beneficiary.
new text end

new text begin "Account owner" means the designated beneficiary
of the account.
new text end

new text begin "Annual contribution limit" has the meaning
given in section 529A(b)(2) of the Internal Revenue Code.
new text end

new text begin "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.
new text end

new text begin "Board" mans the State Board of Investment.
new text end

new text begin "Commissioner" means the commissioner of human
services.
new text end

new text begin "Contribution" means a payment directly allocated to
an account for the benefit of a beneficiary.
new text end

new text begin "Department" means the Department of Human Services.
new text end

new text begin "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.
new text end

new text begin "Earnings" means the total account balance minus the
investment in the account.
new text end

new text begin "Eligible individual" has the meaning given in
section 529A(e)(1) of the Internal Revenue Code and further defined through regulations
issued under that section.
new text end

new text begin "Executive director" means the executive director of
the State Board of Investment.
new text end

new text begin "Internal Revenue Code" means the Internal
Revenue Code of 1986, as amended.
new text end

new text begin "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.
new text end

new text begin "Member of the family" has the meaning given in
section 529A(e)(4) of the Internal Revenue Code.
new text end

new text begin "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.
new text end

new text begin "Person" means an individual, trust, estate, partnership,
association, company, corporation, or the state.
new text end

new text begin "Plan administrator" means the person selected by
the commissioner and the board to administer the daily operations of the ABLE account
plan and provide record keeping, investment management, and other services for the plan.
new text end

new text begin "Qualified disability expense" has the
meaning given in section 529A(e)(5) of the Internal Revenue Code and further defined
through regulations issued under that section.
new text end

new text begin "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.
new text end

new text begin "Rollover distribution" means a transfer of funds
made:
new text end

new text begin (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
new text end

new text begin (2) from one account to another account for the benefit of an eligible individual who
is a family member of the former designated beneficiary.
new text end

new text begin "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.
new text end

new text begin The designated beneficiary of an
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.
new text end

new text begin No more than one ABLE account shall be
established per beneficiary, except as permitted under section 529A(c)(4) of the Internal
Revenue Code.
new text end

new text begin 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.
new text end

new text begin 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.
new text end

new text begin Designated beneficiaries may not direct
the investment of assets in their accounts more than twice in any calendar year.
new text end

new text begin An interest in an account must not be used as security
for a loan.
new text end

new text begin The commissioner shall ensure
that the plan meets the requirements for an ABLE account under section 529A of the
Internal Revenue Code, including any regulations released after the effective date of this
section. 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.
new text end

new text begin (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.
new text end

new text begin (b) The commissioner shall prescribe the application forms, procedures, and other
requirements that apply to the plan.
new text end

new text begin 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 board 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.
new text end

new text begin 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.
new text end

new text begin The commissioner, or the commissioner's
designee, 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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (b) The commissioner may share or disseminate data classified as private or
nonpublic in this subdivision as follows:
new text end

new text begin (1) with other state or federal agencies, only to the extent necessary to verify the
identity of, determine the eligibility of, or process applications for an eligible individual
participating in the Minnesota ABLE plan; and
new text end

new text begin (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.
new text end

new text begin 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 Internal Revenue Service and
approved by the plan administrator in cooperation with the commissioner and the board.
new text end

new text begin 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.
new text end

new text begin An account owner is the only person
entitled to:
new text end

new text begin (1) request distributions;
new text end

new text begin (2) request rollover distributions; or
new text end

new text begin (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.
new text end

new text begin 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.
new text end

new text begin 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.
new text end

new text begin The State Board of Investment
shall invest the money deposited in accounts in the plan.
new text end

new text begin 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.
new text end

new text begin 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.
new text end

new text begin (a) Qualified distributions may
be made:
new text end

new text begin (1) directly to participating providers of goods and services that are qualified
disability expenses, if purchased for a beneficiary;
new text end

new text begin (2) in the form of a check payable to both the beneficiary and provider of goods or
services that are qualified disability expenses; or
new text end

new text begin (3) directly to the beneficiary, if the beneficiary has already paid qualified disability
expenses.
new text end

new text begin (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.
new text end

new text begin 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.
new text end

new text begin 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.
new text end

Laws 2012, chapter 247, article 4, section 47, as amended by Laws 2014,
chapter 312, article 27, section 72, is amended to read:

deleted text begin By July 1, 2014, if necessary,deleted text end The commissioner shall deleted text begin request an amendment to
the home and community-based services waivers authorized under Minnesota Statutes,
sections 256B.092 and 256B.49, todeleted text end establish an exception to the consumer-directed
community supports budget methodologynew text begin for the home and community-based services
waivers under Minnesota Statutes, sections 256B.092 and 256B.49,new text end to provide up to
20 percent more funds for deleted text begin thosedeleted text end new text begin :
new text end

new text begin (1) consumer-directed community supportsnew text end participants who have deleted text begin their 21st birthday
and graduatedeleted text end new text begin graduatednew text end from high school deleted text begin between 2013 to 2015deleted text end and are authorized deleted text begin fordeleted text end new text begin to
receivenew text end more services under consumer-directed community supports prior to graduation
than the amount they are eligible to receive under the current consumer-directed
community supports budget methodologynew text begin ; and
new text end

new text begin (2) those who are currently using licensed services for employment supports or
services during the day which cost more annually than the person would spend under a
consumer-directed community supports plan for individualized employment supports
or services during the daynew text end . The exception is limited to those who can demonstrate
new text begin either new text end that they will have to leave consumer-directed community supports and use other
waiver services because their need for day or employment supports cannot be met
within the consumer-directed community supports budget limitsnew text begin or they will move to
consumer-directed community supports and their services will cost less than services
currently being usednew text end . deleted text begin The commissioner shall consult with the stakeholder group
authorized under Minnesota Statutes, section 256B.0657, subdivision 11, to implement
this provision.deleted text end The exception process shall be effective deleted text begin upon federal approvaldeleted text end for persons
eligible through June 30, deleted text begin 2017deleted text end new text begin 2019new text end .

new text begin (a) The commissioner of human services shall increase reimbursement rates, grants,
allocations, individual limits, and rate limits, as applicable, by five percent for the rate
period from July 1, 2016, to June 30, 2017, for services rendered on or after those dates.
County or tribal contracts for services specified in this section must be amended to pass
through the rate increase within 60 days of the effective date of the increase.
new text end

new text begin (b) The rate changes described in this section must be provided to:
new text end

new text begin (1) home and community-based waivered services for persons with developmental
disabilities, including consumer-directed community supports, under Minnesota Statutes,
section 256B.092;
new text end

new text begin (2) waivered services under community alternatives for disabled individuals,
including consumer-directed community supports, under Minnesota Statutes, section
256B.49;
new text end

new text begin (3) community alternative care waivered services, including consumer-directed
community supports, under Minnesota Statutes, section 256B.49;
new text end

new text begin (4) brain injury waivered services, including consumer-directed community
supports, under Minnesota Statutes, section 256B.49;
new text end

new text begin (5) home and community-based waivered services for the elderly under Minnesota
Statutes, section 256B.0915;
new text end

new text begin (6) nursing services and home health services under Minnesota Statutes, section
256B.0625, subdivision 6a;
new text end

new text begin (7) personal care services and qualified professional supervision of personal care
services under Minnesota Statutes, section 256B.0625, subdivisions 6a and 19a;
new text end

new text begin (8) home care nursing services under Minnesota Statutes, section 256B.0625,
subdivision 7;
new text end

new text begin (9) community first services and supports under Minnesota Statutes, section 256B.85;
new text end

new text begin (10) essential community supports under Minnesota Statutes, section 256B.0922;
new text end

new text begin (11) day training and habilitation services for adults with developmental disabilities
under Minnesota Statutes, sections 252.41 to 252.46, including the additional cost to
counties of the rate adjustments on day training and habilitation services provided as a
social service;
new text end

new text begin (12) alternative care services under Minnesota Statutes, section 256B.0913;
new text end

new text begin (13) living skills training programs for persons with intractable epilepsy who need
assistance in the transition to independent living under Laws 1988, chapter 689;
new text end

new text begin (14) semi-independent living services (SILS) under Minnesota Statutes, section
252.275;
new text end

new text begin (15) consumer support grants under Minnesota Statutes, section 256.476;
new text end

new text begin (16) family support grants under Minnesota Statutes, section 252.32;
new text end

new text begin (17) housing access grants under Minnesota Statutes, section 256B.0658;
new text end

new text begin (18) self-advocacy grants under Laws 2009, chapter 101;
new text end

new text begin (19) technology grants under Laws 2009, chapter 79;
new text end

new text begin (20) aging grants under Minnesota Statutes, sections 256.975 to 256.977 and
256B.0917;
new text end

new text begin (21) deaf and hard-of-hearing grants, including community support services for deaf
and hard-of-hearing adults with mental illness who use or wish to use sign language as their
primary means of communication under Minnesota Statutes, section 256.01, subdivision 2;
new text end

new text begin (22) deaf and hard-of-hearing grants under Minnesota Statutes, sections 256C.233,
256C.25, and 256C.261;
new text end

new text begin (23) Disability Linkage Line grants under Minnesota Statutes, section 256.01,
subdivision 24;
new text end

new text begin (24) transition initiative grants under Minnesota Statutes, section 256.478;
new text end

new text begin (25) employment support grants under Minnesota Statutes, section 256B.021,
subdivision 6; and
new text end

new text begin (26) grants provided to people who are eligible for the Housing Opportunities for
Persons with AIDS program under Minnesota Statutes, section 256B.492.
new text end

new text begin (c) A managed care plan or county-based purchasing plan receiving state payments
for the services, grants, and programs in paragraph (b) must include the increase in their
payments to providers. For the purposes of this subdivision, entities that provide care
coordination are providers. To implement the rate increase in paragraph (a), capitation rates
paid by the commissioner to managed care plans and county-based purchasing plans under
Minnesota Statutes, section 256B.69, shall reflect a five percent increase for the services,
grants, and programs specified in paragraph (b) for the period beginning July 1, 2016.
new text end

new text begin (d) Counties shall increase the budget for each recipient of consumer-directed
community supports by the amounts in paragraph (a) on the effective date in paragraph (a).
new text end

new text begin (e) Providers that receive a rate increase under paragraph (a) shall use 90 percent
of the additional revenue to increase compensation-related costs for employees directly
employed by the program on or after the effective date of the rate adjustment in paragraph
(a), except:
new text end

new text begin (1) persons employed in the central office of a corporation or entity that has an
ownership interest in the provider or exercises control over the provider; and
new text end

new text begin (2) persons paid by the provider under a management contract.
new text end

new text begin (f) Compensation-related costs include:
new text end

new text begin (1) wages and salaries;
new text end

new text begin (2) the employer's share of FICA taxes, Medicare taxes, state and federal
unemployment taxes, workers' compensation, and mileage reimbursement;
new text end

new text begin (4) other benefits provided and workforce needs, including the recruiting and
training of employees as specified in the distribution plan required under paragraph (k).
new text end

new text begin (g) For public employees under a collective bargaining agreement, the increases for
wages and benefits are available and pay rates must be increased only to the extent that the
increases comply with laws governing public employees' collective bargaining. A provider
that receives additional revenue for compensation-related cost increases under paragraph
(e), that is a public employer, and whose fiscal year ends on June 30 of each year, must use
the portion of the rate increase specified in paragraph (e) only for compensation-related
cost increases implemented between July 1, 2016, and August 1, 2016. A provider that
receives additional revenue for compensation-related cost increases under paragraph (e),
that is a public employer, and whose fiscal year ends on December 31 of each year, must
use the portion of the compensation-related cost increases specified in paragraph (e) only
for compensation-related cost increases implemented during the contract period.
new text end

new text begin (h) For a provider that has employees who are represented by an exclusive bargaining
representative, the provider shall obtain a letter of acceptance of the distribution plan
required under paragraph (k), in regard to the members of the bargaining unit, signed by
the exclusive bargaining agent. Upon receipt of the letter of acceptance, the provider shall
be deemed to have met all the requirements of this section in regard to the members of
the bargaining unit. Upon request, the provider shall produce the letter of acceptance for
the commissioner.
new text end

new text begin (i) The commissioner shall amend state grant contracts that include direct
personnel-related grant expenditures to include the allocation for the portion of the
contract related to employee compensation. Grant contracts for compensation-related
services must be amended to pass through these adjustments within 60 days of the
effective date of the increase under paragraph (a) and must be retroactive to the effective
date of the rate adjustment.
new text end

new text begin (j) The Board on Aging and its area agencies on aging shall amend their grants that
include direct personnel-related grant expenditures to include the rate adjustment for the
portion of the grant related to employee compensation. Grants for compensation-related
services must be amended to pass through these adjustments within 60 days of the
effective date of the increase under paragraph (a) and must be retroactive to the effective
date of the rate adjustment.
new text end

new text begin (k) A provider that receives a rate adjustment under paragraph (a) that is subject to
paragraph (e) shall prepare and, upon request, submit to the commissioner a distribution
plan that specifies the amount of money the provider expects to receive that is subject
to the requirements of paragraph (e), including how that money will be distributed to
increase compensation for employees.
new text end

new text begin (l) Within six months of the effective date of the rate adjustment, the provider shall
post the distribution plan required under paragraph (k) for a period of at least six weeks in
an area of the provider's operation to which all eligible employees have access and shall
provide instructions for employees who do not believe they have received the wage and
other compensation-related increases specified in the distribution plan. The instructions
must include a mailing address, e-mail address, and telephone number that the employee
may use to contact the commissioner or the commissioner's representative.
new text end

new text begin The commissioner of human services shall review the status of delayed discharges of
pediatric patients and determine if an increase in the medical assistance payment rate for
intensive pediatric home care would reduce the number of delayed discharges of pediatric
patients. The commissioner shall report the results of the review 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 by January 15, 2016.
new text end

new text begin 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.
new text end

new text begin For service agreements renewed or entered into on or after January 1, 2016, 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).
new text end

new text begin 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.
new text end

new text begin The home and community-based services employee
scholarship grant program is established for the purpose of assisting qualified provider
applicants to fund employee scholarships for education in nursing and other health care
fields.
new text end

new text begin The commissioner shall make grants available
to qualified providers of older adult services. Grants must be used by home and
community-based service providers to recruit and train staff through the establishment of
an employee scholarship fund.
new text end

new text begin (a) Eligible providers must primarily provide services to
individuals who are 65 years of age and older in home and community-based settings,
including housing with services establishments as defined in section 144D.01, subdivision
4; adult day care as defined in section 245A.02, subdivision 2a; and home care services as
defined in section 144A.43, subdivision 3.
new text end

new text begin (b) Qualifying providers must establish a home and community-based services
employee scholarship program, as specified in subdivision 4. Providers that receive
funding under this section must use the funds to award scholarships to employees who
work an average of at least 16 hours per week for the provider.
new text end

new text begin Each qualifying provider under this section must propose a home and community-based
services employee scholarship program. Providers must establish criteria by which
funds are to be distributed among employees. At a minimum, the scholarship program
must cover employee costs related to a course of study that is expected to lead to career
advancement with the provider or in the field of long-term care, including home care,
care of persons with disabilities, or nursing.
new text end

new text begin The commissioner shall publish a request for
proposals in the State Register, specifying provider eligibility requirements, criteria for
a qualifying employee scholarship program, provider selection criteria, documentation
required for program participation, maximum award amount, and methods of evaluation.
The commissioner must publish additional requests for proposals each year in which
funding is available for this purpose.
new text end

new text begin Eligible providers seeking a grant shall submit
an application to the commissioner. Applications must contain a complete description of
the employee scholarship program being proposed by the applicant, including the need for
the organization to enhance the education of its workforce, the process for determining
which employees will be eligible for scholarships, any other sources of funding for
scholarships, the expected degrees or credentials eligible for scholarships, the amount of
funding sought for the scholarship program, a proposed budget detailing how funds will
be spent, and plans for retaining eligible employees after completion of their scholarship.
new text end

new text begin The commissioner shall determine a maximum
award for grants and make grant selections based on the information provided in the
grant application, including the demonstrated need for an applicant provider to enhance
the education of its workforce, the proposed employee scholarship selection process,
the applicant's proposed budget, and other criteria as determined by the commissioner.
Notwithstanding any law or rule to the contrary, funds awarded to grantees in a grant
agreement do not lapse until the grant agreement expires.
new text end

new text begin Participating providers shall submit an invoice
for reimbursement and a report to the commissioner on a schedule determined by the
commissioner and on a form supplied by the commissioner. The report shall include
the amount spent on scholarships; the number of employees who received scholarships;
and, for each scholarship recipient, the name of the recipient, the current position of
the recipient, the amount awarded, the educational institution attended, the nature of
the educational program, and the expected or actual program completion date. During
the grant period, the commissioner may require and collect from grant recipients other
information necessary to evaluate the program.
new text end

Minnesota Statutes 2014, section 144A.071, subdivision 4a, is amended to read:

It is in the best interest of the state
to ensure that nursing homes and boarding care homes continue to meet the physical
plant licensing and certification requirements by permitting certain construction projects.
Facilities should be maintained in condition to satisfy the physical and emotional needs
of residents while allowing the state to maintain control over nursing home expenditure
growth.

The commissioner of health in coordination with the commissioner of human
services, may approve the renovation, replacement, upgrading, or relocation of a nursing
home or boarding care home, under the following conditions:

(a) to license or certify beds in a new facility constructed to replace a facility or to
make repairs in an existing facility that was destroyed or damaged after June 30, 1987, by
fire, lightning, or other hazard provided:

(i) destruction was not caused by the intentional act of or at the direction of a
controlling person of the facility;

(ii) at the time the facility was destroyed or damaged the controlling persons of the
facility maintained insurance coverage for the type of hazard that occurred in an amount
that a reasonable person would conclude was adequate;

(iii) the net proceeds from an insurance settlement for the damages caused by the
hazard are applied to the cost of the new facility or repairs;

(iv) the number of licensed and certified beds in the new facility does not exceed the
number of licensed and certified beds in the destroyed facility; and

(v) the commissioner determines that the replacement beds are needed to prevent an
inadequate supply of beds.

Project construction costs incurred for repairs authorized under this clause shall not be
considered in the dollar threshold amount defined in subdivision 2;

(b) to license or certify beds that are moved from one location to another within a
nursing home facility, provided the total costs of remodeling performed in conjunction
with the relocation of beds does not exceed $1,000,000;

(d) to license or certify beds that are moved from an existing state nursing home to
a different state facility, provided there is no net increase in the number of state nursing
home beds;

(e) to certify and license as nursing home beds boarding care beds in a certified
boarding care facility if the beds meet the standards for nursing home licensure, or in a
facility that was granted an exception to the moratorium under section 144A.073, and if
the cost of any remodeling of the facility does not exceed $1,000,000. If boarding care
beds are licensed as nursing home beds, the number of boarding care beds in the facility
must not increase beyond the number remaining at the time of the upgrade in licensure.
The provisions contained in section 144A.073 regarding the upgrading of the facilities
do not apply to facilities that satisfy these requirements;

(f) to license and certify up to 40 beds transferred from an existing facility owned and
operated by the Amherst H. Wilder Foundation in the city of St. Paul to a new unit at the
same location as the existing facility that will serve persons with Alzheimer's disease and
other related disorders. The transfer of beds may occur gradually or in stages, provided
the total number of beds transferred does not exceed 40. At the time of licensure and
certification of a bed or beds in the new unit, the commissioner of health shall delicense
and decertify the same number of beds in the existing facility. As a condition of receiving
a license or certification under this clause, the facility must make a written commitment
to the commissioner of human services that it will not seek to receive an increase in its
property-related payment rate as a result of the transfers allowed under this paragraph;

(g) to license and certify nursing home beds to replace currently licensed and certified
boarding care beds which may be located either in a remodeled or renovated boarding care
or nursing home facility or in a remodeled, renovated, newly constructed, or replacement
nursing home facility within the identifiable complex of health care facilities in which the
currently licensed boarding care beds are presently located, provided that the number of
boarding care beds in the facility or complex are decreased by the number to be licensed
as nursing home beds and further provided that, if the total costs of new construction,
replacement, remodeling, or renovation exceed ten percent of the appraised value of
the facility or $200,000, whichever is less, the facility makes a written commitment to
the commissioner of human services that it will not seek to receive an increase in its
property-related payment rate by reason of the new construction, replacement, remodeling,
or renovation. The provisions contained in section 144A.073 regarding the upgrading of
facilities do not apply to facilities that satisfy these requirements;

(h) to license as a nursing home and certify as a nursing facility a facility that is
licensed as a boarding care facility but not certified under the medical assistance program,
but only if the commissioner of human services certifies to the commissioner of health that
licensing the facility as a nursing home and certifying the facility as a nursing facility will
result in a net annual savings to the state general fund of $200,000 or more;

(i) to certify, after September 30, 1992, and prior to July 1, 1993, existing nursing
home beds in a facility that was licensed and in operation prior to January 1, 1992;

(j) to license and certify new nursing home beds to replace beds in a facility acquired
by the Minneapolis Community Development Agency as part of redevelopment activities
in a city of the first class, provided the new facility is located within three miles of the site
of the old facility. Operating and property costs for the new facility must be determined
and allowed under section 256B.431 or 256B.434;

(k) to license and certify up to 20 new nursing home beds in a community-operated
hospital and attached convalescent and nursing care facility with 40 beds on April 21,
1991, that suspended operation of the hospital in April 1986. The commissioner of human
services shall provide the facility with the same per diem property-related payment rate
for each additional licensed and certified bed as it will receive for its existing 40 beds;

(l) to license or certify beds in renovation, replacement, or upgrading projects as
defined in section 144A.073, subdivision 1, so long as the cumulative total costs of the
facility's remodeling projects do not exceed $1,000,000;

(m) to license and certify beds that are moved from one location to another for the
purposes of converting up to five four-bed wards to single or double occupancy rooms
in a nursing home that, as of January 1, 1993, was county-owned and had a licensed
capacity of 115 beds;

(n) to allow a facility that on April 16, 1993, was a 106-bed licensed and certified
nursing facility located in Minneapolis to layaway all of its licensed and certified nursing
home beds. These beds may be relicensed and recertified in a newly constructed teaching
nursing home facility affiliated with a teaching hospital upon approval by the legislature.
The proposal must be developed in consultation with the interagency committee on
long-term care planning. The beds on layaway status shall have the same status as
voluntarily delicensed and decertified beds, except that beds on layaway status remain
subject to the surcharge in section 256.9657. This layaway provision expires July 1, 1998;

(o) to allow a project which will be completed in conjunction with an approved
moratorium exception project for a nursing home in southern Cass County and which is
directly related to that portion of the facility that must be repaired, renovated, or replaced,
to correct an emergency plumbing problem for which a state correction order has been
issued and which must be corrected by August 31, 1993;

(p) to allow a facility that on April 16, 1993, was a 368-bed licensed and certified
nursing facility located in Minneapolis to layaway, upon 30 days prior written notice to
the commissioner, up to 30 of the facility's licensed and certified beds by converting
three-bed wards to single or double occupancy. Beds on layaway status shall have the
same status as voluntarily delicensed and decertified beds except that beds on layaway
status remain subject to the surcharge in section 256.9657, remain subject to the license
application and renewal fees under section 144A.07 and shall be subject to a $100 per bed
reactivation fee. In addition, at any time within three years of the effective date of the
layaway, the beds on layaway status may be:

(1) relicensed and recertified upon relocation and reactivation of some or all of
the beds to an existing licensed and certified facility or facilities located in Pine River,
Brainerd, or International Falls; provided that the total project construction costs related to
the relocation of beds from layaway status for any facility receiving relocated beds may
not exceed the dollar threshold provided in subdivision 2 unless the construction project
has been approved through the moratorium exception process under section 144A.073;

(2) relicensed and recertified, upon reactivation of some or all of the beds within the
facility which placed the beds in layaway status, if the commissioner has determined a
need for the reactivation of the beds on layaway status.

The property-related payment rate of a facility placing beds on layaway status
must be adjusted by the incremental change in its rental per diem after recalculating the
rental per diem as provided in section 256B.431, subdivision 3a, paragraph (c). The
property-related payment rate for a facility relicensing and recertifying beds from layaway
status must be adjusted by the incremental change in its rental per diem after recalculating
its rental per diem using the number of beds after the relicensing to establish the facility's
capacity day divisor, which shall be effective the first day of the month following the
month in which the relicensing and recertification became effective. Any beds remaining
on layaway status more than three years after the date the layaway status became effective
must be removed from layaway status and immediately delicensed and decertified;

(q) to license and certify beds in a renovation and remodeling project to convert 12
four-bed wards into 24 two-bed rooms, expand space, and add improvements in a nursing
home that, as of January 1, 1994, met the following conditions: the nursing home was
located in Ramsey County; had a licensed capacity of 154 beds; and had been ranked
among the top 15 applicants by the 1993 moratorium exceptions advisory review panel.
The total project construction cost estimate for this project must not exceed the cost
estimate submitted in connection with the 1993 moratorium exception process;

(r) to license and certify up to 117 beds that are relocated from a licensed and certified
138-bed nursing facility located in St. Paul to a hospital with 130 licensed hospital beds
located in South St. Paul, provided that the nursing facility and hospital are owned by the
same or a related organization and that prior to the date the relocation is completed the
hospital ceases operation of its inpatient hospital services at that hospital. After relocation,
the nursing facility's status shall be the same as it was prior to relocation. The nursing
facility's property-related payment rate resulting from the project authorized in this
paragraph shall become effective no earlier than April 1, 1996. For purposes of calculating
the incremental change in the facility's rental per diem resulting from this project, the
allowable appraised value of the nursing facility portion of the existing health care facility
physical plant prior to the renovation and relocation may not exceed $2,490,000;

(s) to license and certify two beds in a facility to replace beds that were voluntarily
delicensed and decertified on June 28, 1991;

(t) to allow 16 licensed and certified beds located on July 1, 1994, in a 142-bed
nursing home and 21-bed boarding care home facility in Minneapolis, notwithstanding
the licensure and certification after July 1, 1995, of the Minneapolis facility as a 147-bed
nursing home facility after completion of a construction project approved in 1993 under
section 144A.073, to be laid away upon 30 days' prior written notice to the commissioner.
Beds on layaway status shall have the same status as voluntarily delicensed or decertified
beds except that they shall remain subject to the surcharge in section 256.9657. The
16 beds on layaway status may be relicensed as nursing home beds and recertified at
any time within five years of the effective date of the layaway upon relocation of some
or all of the beds to a licensed and certified facility located in Watertown, provided that
the total project construction costs related to the relocation of beds from layaway status
for the Watertown facility may not exceed the dollar threshold provided in subdivision
2 unless the construction project has been approved through the moratorium exception
process under section 144A.073.

The property-related payment rate of the facility placing beds on layaway status must
be adjusted by the incremental change in its rental per diem after recalculating the rental per
diem as provided in section 256B.431, subdivision 3a, paragraph (c). The property-related
payment rate for the facility relicensing and recertifying beds from layaway status must be
adjusted by the incremental change in its rental per diem after recalculating its rental per
diem using the number of beds after the relicensing to establish the facility's capacity day
divisor, which shall be effective the first day of the month following the month in which
the relicensing and recertification became effective. Any beds remaining on layaway
status more than five years after the date the layaway status became effective must be
removed from layaway status and immediately delicensed and decertified;

(u) to license and certify beds that are moved within an existing area of a facility or
to a newly constructed addition which is built for the purpose of eliminating three- and
four-bed rooms and adding space for dining, lounge areas, bathing rooms, and ancillary
service areas in a nursing home that, as of January 1, 1995, was located in Fridley and had
a licensed capacity of 129 beds;

(v) to relocate 36 beds in Crow Wing County and four beds from Hennepin County
to a 160-bed facility in Crow Wing County, provided all the affected beds are under
common ownership;

(w) to license and certify a total replacement project of up to 49 beds located in
Norman County that are relocated from a nursing home destroyed by flood and whose
residents were relocated to other nursing homes. The operating cost payment rates for
the new nursing facility shall be determined based on the interim and settle-up payment
provisions of Minnesota Rules, part 9549.0057, and the reimbursement provisions of
section 256B.431. Property-related reimbursement rates shall be determined under section
256B.431, taking into account any federal or state flood-related loans or grants provided
to the facility;

(x) to license and certify deleted text begin a totaldeleted text end new text begin to the licensee of a nursing home in Polk County
that was destroyed by flood in 1997new text end replacement deleted text begin projectdeleted text end new text begin projects with a totalnew text end of up to 129
bedsnew text begin , with at least 25 beds to benew text end located in Polk County deleted text begin that are relocated from a nursing
home destroyed by flood and whose residents were relocated to other nursing homes.deleted text end new text begin and
up to 104 beds distributed among up to three other counties. These beds may only be
distributed to counties with fewer than the median number of age intensity adjusted beds
per thousand, as most recently published by the commissioner of human services. If the
licensee chooses to distribute beds outside of Polk County under this paragraph, prior to
distributing the beds, the commissioner of health must approve the location in which the
licensee plans to distribute the beds. The commissioner of health shall consult with the
commissioner of human services prior to approving the location of the proposed beds.
The licensee may combine these beds with beds relocated from other nursing facilities
as provided in section 144A.073, subdivision 3c.new text end The operating deleted text begin costdeleted text end payment rates for
the new nursing deleted text begin facilitydeleted text end new text begin facilitiesnew text end shall be determined based on the interim and settle-up
payment provisions ofnew text begin section 256B.431, 256B.434, or 256B.441 ornew text end Minnesota Rules, deleted text begin part
9549.0057, and the reimbursement provisions of section 256B.431, except that subdivision
26, paragraphs (a) and (b), shall not apply until the second rate year after the settle-up cost
report is filed. Property-related reimbursement rates shall be determined under section
256B.431, taking into account any federal or state flood-related loans or grants provided to
the facility;deleted text end new text begin parts 9549.0010 to 9549.0080. Property-related reimbursement rates shall
be determined under section 256B.431, 256B.434, or 256B.441. If the replacement beds
permitted under this paragraph are combined with beds from other nursing facilities, the
rates shall be calculated as the weighted average of rates determined as provided in this
paragraph and section 256B.441, subdivision 60;
new text end

(y) to license and certify beds in a renovation and remodeling project to convert 13
three-bed wards into 13 two-bed rooms and 13 single-bed rooms, expand space, and
add improvements in a nursing home that, as of January 1, 1994, met the following
conditions: the nursing home was located in Ramsey County, was not owned by a hospital
corporation, had a licensed capacity of 64 beds, and had been ranked among the top 15
applicants by the 1993 moratorium exceptions advisory review panel. The total project
construction cost estimate for this project must not exceed the cost estimate submitted in
connection with the 1993 moratorium exception process;

(z) to license and certify up to 150 nursing home beds to replace an existing 285
bed nursing facility located in St. Paul. The replacement project shall include both the
renovation of existing buildings and the construction of new facilities at the existing
site. The reduction in the licensed capacity of the existing facility shall occur during the
construction project as beds are taken out of service due to the construction process. Prior
to the start of the construction process, the facility shall provide written information to the
commissioner of health describing the process for bed reduction, plans for the relocation
of residents, and the estimated construction schedule. The relocation of residents shall be
in accordance with the provisions of law and rule;

(aa) to allow the commissioner of human services to license an additional 36 beds
to provide residential services for the physically disabled under Minnesota Rules, parts
9570.2000 to 9570.3400, in a 198-bed nursing home located in Red Wing, provided that
the total number of licensed and certified beds at the facility does not increase;

(bb) to license and certify a new facility in St. Louis County with 44 beds
constructed to replace an existing facility in St. Louis County with 31 beds, which has
resident rooms on two separate floors and an antiquated elevator that creates safety
concerns for residents and prevents nonambulatory residents from residing on the second
floor. The project shall include the elimination of three- and four-bed rooms;

(cc) to license and certify four beds in a 16-bed certified boarding care home in
Minneapolis to replace beds that were voluntarily delicensed and decertified on or
before March 31, 1992. The licensure and certification is conditional upon the facility
periodically assessing and adjusting its resident mix and other factors which may
contribute to a potential institution for mental disease declaration. The commissioner of
human services shall retain the authority to audit the facility at any time and shall require
the facility to comply with any requirements necessary to prevent an institution for mental
disease declaration, including delicensure and decertification of beds, if necessary;

(dd) to license and certify 72 beds in an existing facility in Mille Lacs County with
80 beds as part of a renovation project. The renovation must include construction of
an addition to accommodate ten residents with beginning and midstage dementia in a
self-contained living unit; creation of three resident households where dining, activities,
and support spaces are located near resident living quarters; designation of four beds
for rehabilitation in a self-contained area; designation of 30 private rooms; and other
improvements;

(ee) to license and certify beds in a facility that has undergone replacement or
remodeling as part of a planned closure under section 256B.437;

(ff) to license and certify a total replacement project of up to 124 beds located
in Wilkin County that are in need of relocation from a nursing home significantly
damaged by flood. The operating cost payment rates for the new nursing facility shall be
determined based on the interim and settle-up payment provisions of Minnesota Rules,
part 9549.0057, and the reimbursement provisions of section 256B.431. Property-related
reimbursement rates shall be determined under section 256B.431, taking into account any
federal or state flood-related loans or grants provided to the facility;

(gg) to allow the commissioner of human services to license an additional nine beds
to provide residential services for the physically disabled under Minnesota Rules, parts
9570.2000 to 9570.3400, in a 240-bed nursing home located in Duluth, provided that the
total number of licensed and certified beds at the facility does not increase;

(hh) to license and certify up to 120 new nursing facility beds to replace beds in a
facility in Anoka County, which was licensed for 98 beds as of July 1, 2000, provided the
new facility is located within four miles of the existing facility and is in Anoka County.
Operating and property rates shall be determined and allowed under section 256B.431 and
Minnesota Rules, parts 9549.0010 to 9549.0080, or section 256B.434 or 256B.441; or

(ii) to transfer up to 98 beds of a 129-licensed bed facility located in Anoka County
that, as of March 25, 2001, is in the active process of closing, to a 122-licensed bed nonprofit
nursing facility located in the city of Columbia Heights or its affiliate. The transfer is
effective when the receiving facility notifies the commissioner in writing of the number of
beds accepted. The commissioner shall place all transferred beds on layaway status held in
the name of the receiving facility. The layaway adjustment provisions of section 256B.431,
subdivision 30, do not apply to this layaway. The receiving facility may only remove the
beds from layaway for recertification and relicensure at the receiving facility's current
site, or at a newly constructed facility located in Anoka County. The receiving facility
must receive statutory authorization before removing these beds from layaway status, or
may remove these beds from layaway status if removal from layaway status is part of a
moratorium exception project approved by the commissioner under section 144A.073.

Minnesota Statutes 2014, section 256B.0913, subdivision 4, is amended to read:

(a) Funding for services under the alternative care program is available to persons who
meet the following criteria:

(1) the person has been determined by a community assessment under section
256B.0911 to be a person who would require the level of care provided in a nursing
facility, as determined under section 256B.0911, subdivision 4e, but for the provision of
services under the alternative care program;

(2) the person is age 65 or older;

(3) the person would be eligible for medical assistance within 135 days of admission
to a nursing facility;

(4) the person is not ineligible for the payment of long-term care services by the
medical assistance program due to an asset transfer penalty under section 256B.0595 or
equity interest in the home exceeding $500,000 as stated in section 256B.056;

(5) the person needs long-term care services that are not funded through other
state or federal funding, or other health insurance or other third-party insurance such as
long-term care insurance;

(6) except for individuals described in clause (7), the monthly cost of the alternative
care services funded by the program for this person does not exceed 75 percent of the
monthly limit described under section 256B.0915, subdivision 3a. This monthly limit
does not prohibit the alternative care client from payment for additional services, but in no
case may the cost of additional services purchased under this section exceed the difference
between the client's monthly service limit defined under section 256B.0915, subdivision
3, and the alternative care program monthly service limit defined in this paragraph. If
care-related supplies and equipment or environmental modifications and adaptations are or
will be purchased for an alternative care services recipient, the costs may be prorated on a
monthly basis for up to 12 consecutive months beginning with the month of purchase.
If the monthly cost of a recipient's other alternative care services exceeds the monthly
limit established in this paragraph, the annual cost of the alternative care services shall be
determined. In this event, the annual cost of alternative care services shall not exceed 12
times the monthly limit described in this paragraph;

(7) for individuals assigned a case mix classification A as described under section
256B.0915, subdivision 3a, paragraph (a), with (i) no dependencies in activities of daily
living, or (ii) up to two dependencies in bathing, dressing, grooming, walking, and eating
when the dependency score in eating is three or greater as determined by an assessment
performed under section 256B.0911, the monthly cost of alternative care services funded
by the program cannot exceed $593 per month for all new participants enrolled in
the program on or after July 1, 2011. This monthly limit shall be applied to all other
participants who meet this criteria at reassessment. This monthly limit shall be increased
annually as described in section 256B.0915, subdivision 3a, deleted text begin paragraphdeleted text end new text begin paragraphsnew text end (a)new text begin and
(e)new text end . This monthly limit does not prohibit the alternative care client from payment for
additional services, but in no case may the cost of additional services purchased exceed the
difference between the client's monthly service limit defined in this clause and the limit
described in clause (6) for case mix classification A; and

(8) the person is making timely payments of the assessed monthly fee.

A person is ineligible if payment of the fee is over 60 days past due, unless the person
agrees to:

(i) the appointment of a representative payee;

(ii) automatic payment from a financial account;

(iii) the establishment of greater family involvement in the financial management of
payments; or

(iv) another method acceptable to the lead agency to ensure prompt fee payments.

The lead agency may extend the client's eligibility as necessary while making
arrangements to facilitate payment of past-due amounts and future premium payments.
Following disenrollment due to nonpayment of a monthly fee, eligibility shall not be
reinstated for a period of 30 days.

(b) Alternative care funding under this subdivision is not available for a person who
is a medical assistance recipient or who would be eligible for medical assistance without a
spenddown or waiver obligation. A person whose initial application for medical assistance
and the elderly waiver program is being processed may be served under the alternative care
program for a period up to 60 days. If the individual is found to be eligible for medical
assistance, medical assistance must be billed for services payable under the federally
approved elderly waiver plan and delivered from the date the individual was found eligible
for the federally approved elderly waiver plan. Notwithstanding this provision, alternative
care funds may not be used to pay for any service the cost of which: (i) is payable by
medical assistance; (ii) is used by a recipient to meet a waiver obligation; or (iii) is used to
pay a medical assistance income spenddown for a person who is eligible to participate in the
federally approved elderly waiver program under the special income standard provision.

(c) Alternative care funding is not available for a person who resides in a licensed
nursing home, certified boarding care home, hospital, or intermediate care facility, except
for case management services which are provided in support of the discharge planning
process for a nursing home resident or certified boarding care home resident to assist with
a relocation process to a community-based setting.

(d) Alternative care funding is not available for a person whose income is greater
than the maintenance needs allowance under section 256B.0915, subdivision 1d, but equal
to or less than 120 percent of the federal poverty guideline effective July 1 in the fiscal
year for which alternative care eligibility is determined, who would be eligible for the
elderly waiver with a waiver obligation.

Minnesota Statutes 2014, section 256B.0915, subdivision 3a, is amended to read:

(a) deleted text begin The monthly limit for the cost of
waivered services to an individual elderly waiver client except for individuals described
in paragraphs (b) and (d) shall be the weighted average monthly nursing facility rate of
the case mix resident class to which the elderly waiver client would be assigned under
Minnesota Rules, parts 9549.0050 to 9549.0059, less the recipient's maintenance needs
allowance as described in subdivision 1d, paragraph (a), until the first day of the state
fiscal year in which the resident assessment system as described in section 256B.438 for
nursing home rate determination is implemented.deleted text end Effective on the first day of the state
fiscal year in which the resident assessment system as described in section 256B.438 for
nursing home rate determination is implemented and the first day of each subsequent state
fiscal year, the monthly limit for the cost of waivered services to an individual elderly
waiver client shall be the deleted text begin ratedeleted text end new text begin monthly limitnew text end of the case mix resident class to which the
waiver client would be assigned under Minnesota Rules, parts 9549.0050 to 9549.0059, in
effect on the last day of the previous state fiscal year, adjusted by any legislatively adopted
home and community-based services percentage rate adjustment.

(b) The monthly limit for the cost of waivered servicesnew text begin under paragraph (a)new text end to an
individual elderly waiver client assigned to a case mix classification A deleted text begin under paragraph
(a)deleted text end with:

(1) no dependencies in activities of daily living; or

(2) up to two dependencies in bathing, dressing, grooming, walking, and eating
when the dependency score in eating is three or greater as determined by an assessment
performed under section 256B.0911 shall be $1,750 per month effective on July 1, 2011,
for all new participants enrolled in the program on or after July 1, 2011. This monthly
limit shall be applied to all other participants who meet this criteria at reassessment. This
monthly limit shall be increased annually as described in deleted text begin paragraphdeleted text end new text begin paragraphsnew text end (a)new text begin and (e)new text end .

(c) If extended medical supplies and equipment or environmental modifications are
or will be purchased for an elderly waiver client, the costs may be prorated for up to
12 consecutive months beginning with the month of purchase. If the monthly cost of a
recipient's waivered services exceeds the monthly limit established in paragraph (a) deleted text begin ordeleted text end new text begin ,
new text end (b),new text begin (d), or (e),new text end the annual cost of all waivered services shall be determined. In this event,
the annual cost of all waivered services shall not exceed 12 times the monthly limit of
waivered services as described in paragraph (a) deleted text begin ordeleted text end new text begin , new text end (b)new text begin , (d), or (e)new text end .

(d) Effective July 1, 2013, the monthly cost limit of waiver services, including
any necessary home care services described in section 256B.0651, subdivision 2, for
individuals who meet the criteria as ventilator-dependent given in section 256B.0651,
subdivision 1, paragraph (g), shall be the average of the monthly medical assistance
amount established for home care services as described in section 256B.0652, subdivision
7, and the annual average contracted amount established by the commissioner for nursing
facility services for ventilator-dependent individuals. This monthly limit shall be increased
annually as described in deleted text begin paragraphdeleted text end new text begin paragraphsnew text end (a)new text begin and (e)new text end .

new text begin (e) Effective July 1, 2016, and each July 1 thereafter, the monthly cost limits for
elderly waiver services in effect on the previous June 30 shall be adjusted by the greater of
the difference between any legislatively adopted home and community-based provider
rate increase effective on July 1 and the average statewide percentage increase in nursing
facility operating payment rates under sections 256B.431, 256B.434, and 256B.441,
effective the previous January 1.
new text end

new text begin This section is effective July 1, 2016.
new text end

Minnesota Statutes 2014, section 256B.0915, subdivision 3e, is amended to read:

(a) Payment for customized living
services shall be a monthly rate authorized by the lead agency within the parameters
established by the commissioner. The payment agreement must delineate the amount of
each component service included in the recipient's customized living service plan. The
lead agency, with input from the provider of customized living services, shall ensure that
there is a documented need within the parameters established by the commissioner for all
component customized living services authorized.

(b) The payment rate must be based on the amount of component services to be
provided utilizing component rates established by the commissioner. Counties and tribes
shall use tools issued by the commissioner to develop and document customized living
service plans and rates.

(c) Component service rates must not exceed payment rates for comparable elderly
waiver or medical assistance services and must reflect economies of scale. Customized
living services must not include rent or raw food costs.

(d) With the exception of individuals described in subdivision 3a, paragraph (b), the
individualized monthly authorized payment for the customized living service plan shall not
exceed 50 percent of the greater of either the statewide or any of the geographic groups'
weighted average monthly nursing facility rate of the case mix resident class to which the
elderly waiver eligible client would be assigned under Minnesota Rules, parts 9549.0050 to
9549.0059, less the maintenance needs allowance as described in subdivision 1d, paragraph
(a)deleted text begin , until the July 1 of the state fiscal year in which the resident assessment system as
described in section 256B.438 for nursing home rate determination is implementeddeleted text end .
Effective on July 1 of the state fiscal year in which the resident assessment system as
described in section 256B.438 for nursing home rate determination is implemented and
July 1 of each subsequent state fiscal year, the individualized monthly authorized payment
for the services described in this clause shall not exceed the limit which was in effect on
June 30 of the previous state fiscal year updated annually based on legislatively adopted
changes to all service rate maximums for home and community-based service providers.

(e) Effective July 1, 2011, the individualized monthly payment for the customized
living service plan for individuals described in subdivision 3a, paragraph (b), must be the
monthly authorized payment limit for customized living for individuals classified as case
mix A, reduced by 25 percent. This rate limit must be applied to all new participants
enrolled in the program on or after July 1, 2011, who meet the criteria described in
subdivision 3a, paragraph (b). This monthly limit also applies to all other participants who
meet the criteria described in subdivision 3a, paragraph (b), at reassessment.

(f) Customized living services are delivered by a provider licensed by the
Department of Health as a class A or class F home care provider and provided in a
building that is registered as a housing with services establishment under chapter 144D.
Licensed home care providers are subject to section 256B.0651, subdivision 14.

(g) A provider may not bill or otherwise charge an elderly waiver participant or their
family for additional units of any allowable component service beyond those available
under the service rate limits described in paragraph (d), nor for additional units of any
allowable component service beyond those approved in the service plan by the lead agency.

new text begin (h) Effective July 1, 2016, and each July 1 thereafter, individualized service rate
limits for customized living services under this subdivision shall be adjusted by the greater
of the difference between any legislatively adopted home and community-based provider
rate increase effective on July 1 and the average statewide percentage increase in nursing
facility operating payment rates under sections 256B.431, 256B.434, and 256B.441,
effective the previous January 1.
new text end

new text begin This section is effective July 1, 2016.
new text end

Minnesota Statutes 2014, section 256B.0915, subdivision 3h, is amended to read:

(a) The
payment rate for 24-hour customized living services is a monthly rate authorized by the
lead agency within the parameters established by the commissioner of human services.
The payment agreement must delineate the amount of each component service included
in each recipient's customized living service plan. The lead agency, with input from
the provider of customized living services, shall ensure that there is a documented need
within the parameters established by the commissioner for all component customized
living services authorized. The lead agency shall not authorize 24-hour customized living
services unless there is a documented need for 24-hour supervision.

(b) For purposes of this section, "24-hour supervision" means that the recipient
requires assistance due to needs related to one or more of the following:

(1) intermittent assistance with toileting, positioning, or transferring;

(2) cognitive or behavioral issues;

(3) a medical condition that requires clinical monitoring; or

(4) for all new participants enrolled in the program on or after July 1, 2011, and
all other participants at their first reassessment after July 1, 2011, dependency in at
least three of the following activities of daily living as determined by assessment under
section 256B.0911: bathing; dressing; grooming; walking; or eating when the dependency
score in eating is three or greater; and needs medication management and at least 50
hours of service per month. The lead agency shall ensure that the frequency and mode
of supervision of the recipient and the qualifications of staff providing supervision are
described and meet the needs of the recipient.

(c) The payment rate for 24-hour customized living services must be based on the
amount of component services to be provided utilizing component rates established by the
commissioner. Counties and tribes will use tools issued by the commissioner to develop
and document customized living plans and authorize rates.

(d) Component service rates must not exceed payment rates for comparable elderly
waiver or medical assistance services and must reflect economies of scale.

(e) The individually authorized 24-hour customized living payments, in combination
with the payment for other elderly waiver services, including case management, must not
exceed the recipient's community budget cap specified in subdivision 3a. Customized
living services must not include rent or raw food costs.

(f) The individually authorized 24-hour customized living payment rates shall not
exceed the 95 percentile of statewide monthly authorizations for 24-hour customized
living services in effect and in the Medicaid management information systems on March
31, 2009, for each case mix resident class under Minnesota Rules, parts 9549.0050
to 9549.0059, to which elderly waiver service clients are assigned. When there are
fewer than 50 authorizations in effect in the case mix resident class, the commissioner
shall multiply the calculated service payment rate maximum for the A classification by
the standard weight for that classification under Minnesota Rules, parts 9549.0050 to
9549.0059, to determine the applicable payment rate maximum. deleted text begin Service payment rate
maximums shall be updated annually based on legislatively adopted changes to all service
rates for home and community-based service providers.
deleted text end

(g) Notwithstanding the requirements of paragraphs (d) and (f), the commissioner
may establish alternative payment rate systems for 24-hour customized living services in
housing with services establishments which are freestanding buildings with a capacity of
16 or fewer, by applying a single hourly rate for covered component services provided
in either:

(1) licensed corporate adult foster homes; or

(2) specialized dementia care units which meet the requirements of section 144D.065
and in which:

(i) each resident is offered the option of having their own apartment; or

(ii) the units are licensed as board and lodge establishments with maximum capacity
of eight residents, and which meet the requirements of Minnesota Rules, part 9555.6205,
subparts 1, 2, 3, and 4, item A.

(h) Twenty-four-hour customized living services are delivered by a provider licensed
by the Department of Health as a class A or class F home care provider and provided in a
building that is registered as a housing with services establishment under chapter 144D.
Licensed home care providers are subject to section 256B.0651, subdivision 14.

(i) A provider may not bill or otherwise charge an elderly waiver participant or their
family for additional units of any allowable component service beyond those available
under the service rate limits described in paragraph (e), nor for additional units of any
allowable component service beyond those approved in the service plan by the lead agency.

new text begin (j) Effective July 1, 2016, and each July 1 thereafter, individualized service rate
limits for 24-hour customized living services under this subdivision shall be adjusted by
the greater of the difference between any legislatively adopted home and community-based
provider rate increase effective on July 1 and the average statewide percentage increase
in nursing facility operating payment rates under sections 256B.431, 256B.434, and
256B.441, effective the previous January 1.
new text end

new text begin This section is effective July 1, 2016.
new text end

Minnesota Statutes 2014, section 256B.431, subdivision 2b, is amended to read:

(a) For rate years beginning on or
after July 1, 1985, the commissioner shall establish procedures for determining per diem
reimbursement for operating costs.

(b) The commissioner shall contract with an econometric firm with recognized
expertise in and access to national economic change indices that can be applied to the
appropriate cost categories when determining the operating cost payment rate.

(c) The commissioner shall analyze and evaluate each nursing facility's cost report
of allowable operating costs incurred by the nursing facility during the reporting year
immediately preceding the rate year for which the payment rate becomes effective.

(d) The commissioner shall establish limits on actual allowable historical operating
cost per diems based on cost reports of allowable operating costs for the reporting year
that begins October 1, 1983, taking into consideration relevant factors including resident
needs, geographic location, and size of the nursing facility. In developing the geographic
groups for purposes of reimbursement under this section, the commissioner shall ensure
that nursing facilities in any county contiguous to the Minneapolis-St. Paul seven-county
metropolitan area are included in the same geographic group. The limits established by
the commissioner shall not be less, in the aggregate, than the 60th percentile of total
actual allowable historical operating cost per diems for each group of nursing facilities
established under subdivision 1 based on cost reports of allowable operating costs in the
previous reporting year. For rate years beginning on or after July 1, 1989, facilities located
in geographic group I as described in Minnesota Rules, part 9549.0052, on January 1,
1989, may choose to have the commissioner apply either the care related limits or the
other operating cost limits calculated for facilities located in geographic group II, or
both, if either of the limits calculated for the group II facilities is higher. The efficiency
incentive for geographic group I nursing facilities must be calculated based on geographic
group I limits. The phase-in must be established utilizing the chosen limits. For purposes
of these exceptions to the geographic grouping requirements, the definitions in Minnesota
Rules, parts 9549.0050 to 9549.0059 (Emergency), and 9549.0010 to 9549.0080, apply.
The limits established under this paragraph remain in effect until the commissioner
establishes a new base period. Until the new base period is established, the commissioner
shall adjust the limits annually using the appropriate economic change indices established
in paragraph (e). In determining allowable historical operating cost per diems for purposes
of setting limits and nursing facility payment rates, the commissioner shall divide the
allowable historical operating costs by the actual number of resident days, except that
where a nursing facility is occupied at less than 90 percent of licensed capacity days, the
commissioner may establish procedures to adjust the computation of the per diem to
an imputed occupancy level at or below 90 percent. The commissioner shall establish
efficiency incentives as appropriate. The commissioner may establish efficiency incentives
for different operating cost categories. The commissioner shall consider establishing
efficiency incentives in care related cost categories. The commissioner may combine one
or more operating cost categories and may use different methods for calculating payment
rates for each operating cost category or combination of operating cost categories. For the
rate year beginning on July 1, 1985, the commissioner shall:

(1) allow nursing facilities that have an average length of stay of 180 days or less in
their skilled nursing level of care, 125 percent of the care related limit and 105 percent
of the other operating cost limit established by rule; and

(2) exempt nursing facilities licensed on July 1, 1983, by the commissioner to
provide residential services for the physically disabled under Minnesota Rules, parts
9570.2000 to 9570.3600, from the care related limits and allow 105 percent of the other
operating cost limit established by rule.

For the purpose of calculating the other operating cost efficiency incentive for
nursing facilities referred to in clause (1) or (2), the commissioner shall use the other
operating cost limit established by rule before application of the 105 percent.

(e) The commissioner shall establish a composite index or indices by determining
the appropriate economic change indicators to be applied to specific operating cost
categories or combination of operating cost categories.

(f) Each nursing facility shall receive an operating cost payment rate equal to the sum
of the nursing facility's operating cost payment rates for each operating cost category. The
operating cost payment rate for an operating cost category shall be the lesser of the nursing
facility's historical operating cost in the category increased by the appropriate index
established in paragraph (e) for the operating cost category plus an efficiency incentive
established pursuant to paragraph (d) or the limit for the operating cost category increased
by the same index. If a nursing facility's actual historic operating costs are greater than the
prospective payment rate for that rate year, there shall be no retroactive cost settle up. In
establishing payment rates for one or more operating cost categories, the commissioner may
establish separate rates for different classes of residents based on their relative care needs.

(g) The commissioner shall include the reported actual real estate tax liability or
payments in lieu of real estate tax of each nursing facility as an operating cost of that
nursing facility. Allowable costs under this subdivision for payments made by a nonprofit
nursing facility that are in lieu of real estate taxes shall not exceed the amount which the
nursing facility would have paid to a city or township and county for fire, police, sanitation
services, and road maintenance costs had real estate taxes been levied on that property
for those purposes. For rate years beginning on or after July 1, 1987, the reported actual
real estate tax liability or payments in lieu of real estate tax of nursing facilities shall be
adjusted to include an amount equal to one-half of the dollar change in real estate taxes
from the prior year. The commissioner shall include a reported actual special assessment,
and reported actual license fees required by the Minnesota Department of Health, for each
nursing facility as an operating cost of that nursing facility. For rate years beginning
on or after July 1, 1989, the commissioner shall include a nursing facility's reported
Public Employee Retirement Act contribution for the reporting year as apportioned to the
care-related operating cost categories and other operating cost categories multiplied by
the appropriate composite index or indices established pursuant to paragraph (e) as costs
under this paragraph. Total adjusted real estate tax liability, payments in lieu of real
estate tax, actual special assessments paid, the indexed Public Employee Retirement Act
contribution, and license fees paid as required by the Minnesota Department of Health,
for each nursing facility (1) shall be divided by actual resident days in order to compute
the operating cost payment rate for this operating cost category, (2) shall not be used to
compute the care-related operating cost limits or other operating cost limits established
by the commissioner, and (3) shall not be increased by the composite index or indices
established pursuant to paragraph (e), unless otherwise indicated in this paragraph.

deleted text begin (h) For rate years beginning on or after July 1, 1987, the commissioner shall adjust
the rates of a nursing facility that meets the criteria for the special dietary needs of its
residents and the requirements in section 31.651. The adjustment for raw food cost shall
be the difference between the nursing facility's allowable historical raw food cost per
diem and 115 percent of the median historical allowable raw food cost per diem of the
corresponding geographic group.
deleted text end

deleted text begin The rate adjustment shall be reduced by the applicable phase-in percentage as
provided under subdivision 2h.
deleted text end

Minnesota Statutes 2014, section 256B.431, subdivision 36, is amended to read:

(a) For the period between July 1, 2001, and June 30, 2003, the commissioner
shall provide to each nursing facility reimbursed under this section, section 256B.434, or
any other section, a scholarship per diem of 25 cents to the total operating payment ratenew text begin .
For the two rate years beginning on or after October 1, 2015, through September 30, 2017,
the commissioner shall allow a scholarship per diem of up to 25 cents for each nursing
facility with no scholarship per diem that is requesting a scholarship per diem to be added
to the external fixed payment ratenew text end to be used:

(1) for employee scholarships that satisfy the following requirements:

(i) scholarships are available to all employees who work an average of at least deleted text begin 20
deleted text end new text begin tennew text end hours per week at the facility except the administrator, deleted text begin department supervisors, and
registered nursesdeleted text end new text begin and to reimburse student loan expenses for newly hired and recently
graduated registered nurses and licensed practical nurses, and training expenses for
nursing assistants as defined in section 144A.61, subdivision 2, who are newly hired and
have graduated within the last 12 monthsnew text end ; and

(ii) the course of study is expected to lead to career advancement with the facility or
in long-term care, including medical care interpreter services and social work; and

(2) to provide job-related training in English as a second language.

(b) deleted text begin A facility receivingdeleted text end new text begin All facilities may annually requestnew text end a rate adjustment under
this subdivision deleted text begin may submitdeleted text end new text begin by submitting informationnew text end to the commissioner on a schedule
deleted text begin determined by the commissionerdeleted text end and deleted text begin ondeleted text end new text begin innew text end a form supplied by the commissioner deleted text begin a
calculation of the scholarship per diem, including: the amount received from this rate
adjustment; the amount used for training in English as a second language; the number of
persons receiving the training; the name of the person or entity providing the training;
and for each scholarship recipient, the name of the recipient, the amount awarded, the
educational institution attended, the nature of the educational program, the program
completion date, and a determination of the per diem amount of these costs based on
actual resident daysdeleted text end .new text begin The commissioner shall allow a scholarship payment rate equal to
the reported and allowable costs divided by resident days.
new text end

(c) deleted text begin On July 1, 2003, the commissioner shall remove the 25 cent scholarship per diem
from the total operating payment rate of each facility.
deleted text end

deleted text begin (d) For rate years beginning after June 30, 2003, the commissioner shall provide to
each facility the scholarship per diem determined in paragraph (b).deleted text end In calculating the per
diem under paragraph (b), the commissioner shall allow deleted text begin onlydeleted text end costs related to tuition deleted text begin anddeleted text end new text begin ,
new text end direct educational expensesnew text begin , and reasonable costs as defined by the commissioner for child
care costs and transportation expenses related to direct educational expensesnew text end .

new text begin (d) The rate increase under this subdivision is an optional rate add-on that the facility
must request from the commissioner in a manner prescribed by the commissioner. The
rate increase must be used for scholarships as specified in this subdivision.
new text end

new text begin (e) Nursing facilities that close beds during a rate year may request to have their
scholarship adjustment under paragraph (b) recalculated by the commissioner for the
remainder of the rate year to reflect the reduction in resident days compared to the cost
report year.
new text end

Minnesota Statutes 2014, section 256B.434, subdivision 4, is amended to read:

deleted text begin (a) For nursing facilities which
have their payment rates determined under this section rather than section 256B.431, the
commissioner shall establish a rate under this subdivision. The nursing facility must enter
into a written contract with the commissioner.
deleted text end

deleted text begin (b) A nursing facility's case mix payment rate for the first rate year of a facility's
contract under this section is the payment rate the facility would have received under
section 256B.431.
deleted text end

deleted text begin (c)deleted text end A nursing facility's case mix payment rates for the second and subsequent years
of a facility's contract under this section are the previous rate year's contract payment rates
plus an inflation adjustment and, for facilities reimbursed under this section or section
256B.431, an adjustment to include the cost of any increase in Health Department licensing
fees for the facility taking effect on or after July 1, 2001. The index for the inflation
adjustment must be based on the change in the Consumer Price Index-All Items (United
States City average) (CPI-U) forecasted by the commissioner of management and budget's
national economic consultant, as forecasted in the fourth quarter of the calendar year
preceding the rate year. The inflation adjustment must be based on the 12-month period
from the midpoint of the previous rate year to the midpoint of the rate year for which the
rate is being determined. For the rate years beginning on July 1, 1999, July 1, 2000, July
1, 2001, July 1, 2002, July 1, 2003, July 1, 2004, July 1, 2005, July 1, 2006, July 1, 2007,
July 1, 2008, October 1, 2009, and October 1, 2010, this paragraph shall apply only to the
property-related payment rate. For the rate years beginning on October 1, 2011, October 1,
2012, October 1, 2013, October 1, 2014, October 1, 2015, deleted text begin and Octoberdeleted text end new text begin Januarynew text end 1, 2016, new text begin and
January 1, 2017, new text end the rate adjustment under this paragraph shall be suspended. Beginning
in 2005, adjustment to the property payment rate under this section and section 256B.431
shall be effective on October 1. In determining the amount of the property-related payment
rate adjustment under this paragraph, the commissioner shall determine the proportion of
the facility's rates that are property-related based on the facility's most recent cost report.

deleted text begin (d) The commissioner shall develop additional incentive-based payments of up to
five percent above a facility's operating payment rate for achieving outcomes specified
in a contract. The commissioner may solicit contract amendments and implement those
which, on a competitive basis, best meet the state's policy objectives. The commissioner
shall limit the amount of any incentive payment and the number of contract amendments
under this paragraph to operate the incentive payments within funds appropriated for this
purpose. The contract amendments may specify various levels of payment for various
levels of performance. Incentive payments to facilities under this paragraph may be in the
form of time-limited rate adjustments or onetime supplemental payments. In establishing
the specified outcomes and related criteria, the commissioner shall consider the following
state policy objectives:
deleted text end

deleted text begin (1) successful diversion or discharge of residents to the residents' prior home or other
community-based alternatives;
deleted text end

deleted text begin (2) adoption of new technology to improve quality or efficiency;
deleted text end

deleted text begin (3) improved quality as measured in the Nursing Home Report Card;
deleted text end

deleted text begin (4) reduced acute care costs; and
deleted text end

deleted text begin (5) any additional outcomes proposed by a nursing facility that the commissioner
finds desirable.
deleted text end

deleted text begin (e) Notwithstanding the threshold in section 256B.431, subdivision 16, facilities that
take action to come into compliance with existing or pending requirements of the life
safety code provisions or federal regulations governing sprinkler systems must receive
reimbursement for the costs associated with compliance if all of the following conditions
are met:
deleted text end

deleted text begin (1) the expenses associated with compliance occurred on or after January 1, 2005,
and before December 31, 2008;
deleted text end

deleted text begin (2) the costs were not otherwise reimbursed under subdivision 4f or section
144A.071 or 144A.073; and
deleted text end

deleted text begin (3) the total allowable costs reported under this paragraph are less than the minimum
threshold established under section 256B.431, subdivision 15, paragraph (e), and
subdivision 16.
deleted text end

deleted text begin The commissioner shall use money appropriated for this purpose to provide to qualifying
nursing facilities a rate adjustment beginning October 1, 2007, and ending September 30,
2008. Nursing facilities that have spent money or anticipate the need to spend money
to satisfy the most recent life safety code requirements by (1) installing a sprinkler
system or (2) replacing all or portions of an existing sprinkler system may submit to the
commissioner by June 30, 2007, on a form provided by the commissioner the actual
costs of a completed project or the estimated costs, based on a project bid, of a planned
project. The commissioner shall calculate a rate adjustment equal to the allowable
costs of the project divided by the resident days reported for the report year ending
September 30, 2006. If the costs from all projects exceed the appropriation for this
purpose, the commissioner shall allocate the money appropriated on a pro rata basis to the
qualifying facilities by reducing the rate adjustment determined for each facility by an
equal percentage. Facilities that used estimated costs when requesting the rate adjustment
shall report to the commissioner by January 31, 2009, on the use of this money on a
form provided by the commissioner. If the nursing facility fails to provide the report, the
commissioner shall recoup the money paid to the facility for this purpose. If the facility
reports expenditures allowable under this subdivision that are less than the amount received
in the facility's annualized rate adjustment, the commissioner shall recoup the difference.
deleted text end

Minnesota Statutes 2014, section 256B.434, is amended by adding a
subdivision to read:

new text begin (a) This subdivision applies to nursing facilities with at least 120 active beds as of January
1, 2015, that have projects approved in 2015 under the nursing facility moratorium
exception process in section 144A.073. When each facility's moratorium exception
construction project is completed, the facility must receive the rate adjustment allowed
under subdivision 4f. In addition to that rate adjustment, facilities with at least 120
active beds, but not more than 149 active beds, as of January 1, 2015, must have their
construction project rate adjustment increased by an additional $4; and facilities with at
least 150 active beds, but not more than 160 active beds, as of January 1, 2015, must have
their construction project rate adjustment increased by an additional $12.50.
new text end

new text begin (b) Notwithstanding any other law to the contrary, money available under section
144A.073, subdivision 11, after the completion of the moratorium exception approval
process in 2015 under section 144A.073, subdivision 3, shall be used to reduce the fiscal
impact to the medical assistance budget for the increases allowed in this subdivision.
new text end

Minnesota Statutes 2014, section 256B.441, subdivision 1, is amended to read:

(a) The commissioner shall deleted text begin rebase nursing facility operating payment rates to align
payments to facilities with the cost of providing care. The rebaseddeleted text end new text begin calculatenew text end operating
payment rates deleted text begin shall be calculateddeleted text end using the statistical and cost report filed by each nursing
facility for the report period ending one year prior to the rate year.

(b) The deleted text begin newdeleted text end operating payment rates based on this section shall take effect deleted text begin beginning
deleted text end with the rate year beginning deleted text begin October 1, 2008, and shall be phased in over eight rate years
through October 1, 2015. For each year of the phase-in, the operating payment rates shall
be calculated using the statistical and cost report filed by each nursing facility for the
report period ending one year prior to the rate yeardeleted text end new text begin January 1, 2016new text end .

deleted text begin (c) Operating payment rates shall be rebased on October 1, 2016, and every two
years after that date.
deleted text end

deleted text begin (d)deleted text end new text begin (c)new text end Each cost reporting year shall begin on October 1 and end on the following
September 30. deleted text begin Beginning in 2014,deleted text end A statistical and cost report shall be filed by each
nursing facility by February 1new text begin in a form and manner specified by the commissionernew text end .
Notice of rates shall be distributed by deleted text begin Augustdeleted text end new text begin Novembernew text end 15 and the rates shall go into
effect on deleted text begin Octoberdeleted text end new text begin Januarynew text end 1 for one year.

deleted text begin (e) Effective October 1, 2014, property rates shall be rebased in accordance with
section 256B.431 and Minnesota Rules, chapter 9549. The commissioner shall determine
what the property payment rate for a nursing facility would be had the facility not had its
property rate determined under section 256B.434. The commissioner shall allow nursing
facilities to provide information affecting this rate determination that would have been
filed annually under Minnesota Rules, chapter 9549, and nursing facilities shall report
information necessary to determine allowable debt. The commissioner shall use this
information to determine the property payment rate.
deleted text end

Minnesota Statutes 2014, section 256B.441, subdivision 5, is amended to read:

"Administrative costs" means the direct costs for
administering the overall activities of the nursing home. These costs include salaries and
wages of the administrator, assistant administrator, business office employees, security
guards, and associated fringe benefits and payroll taxes, fees, contracts, or purchases
related to business office functions, licenses, and permits except as provided in the
external fixed costs category, employee recognition, travel including meals and lodging,
all training except as specified in subdivision 11, voice and data communication or
transmission, office supplies,new text begin property andnew text end liability insurance and other forms of insurance
not designated to other areas, personnel recruitment, legal services, accounting services,
management or business consultants, data processing, information technology, Web
site, central or home office costs, business meetings and seminars, postage, fees for
professional organizations, subscriptions, security services, advertising, board of director's
fees, working capital interest expense, and bad debts and bad debt collection fees.

Minnesota Statutes 2014, section 256B.441, subdivision 6, is amended to read:

new text begin (a) new text end "Allowed costs" means the amounts reported by the
facility which are necessary for the operation of the facility and the care of residents
and which are reviewed by the department for accuracy; reasonableness, in accordance
with the requirements set forth in title XVIII of the federal Social Security Act and the
interpretations in the provider reimbursement manual; and compliance with this section
and generally accepted accounting principles. All references to costs in this section shall
be assumed to refer to allowed costs.

new text begin (b) For facilities where employees are represented by collective bargaining agents,
costs related to the salaries and wages, payroll taxes, and employer's share of fringe benefit
costs, except employer health insurance costs, for facility employees who are members of
the bargaining unit are allowed costs only if:
new text end

new text begin (1) these costs are incurred pursuant to a collective bargaining agreement. The
commissioner shall allow until March 1 following the date on which the cost report was
required to be submitted for a collective bargaining agent to notify the commissioner if
a collective bargaining agreement, effective on the last day of the cost reporting year,
was in effect; or
new text end

new text begin (2) the collective bargaining agent notifies the commissioner by October 1 following
the date on which the cost report was required to be submitted that these costs are
incurred pursuant to an agreement or understanding between the facility and the collective
bargaining agent.
new text end

new text begin (c) In any year when a portion of a facility's reported costs are not allowed costs
under paragraph (b), when calculating the operating payment rate for the facility, the
commissioner shall use the facility's allowed costs from the facility's second most recent
cost report in place of the nonallowed costs. For the purpose of setting the price for other
operating costs under subdivision 51, the price shall be reduced by the difference between
the nonallowed costs and the allowed costs from the facility's second most recent cost
report.
new text end

Minnesota Statutes 2014, section 256B.441, is amended by adding a
subdivision to read:

new text begin "Employer health insurance costs"
means premium expenses for group coverage and reinsurance, actual expenses incurred
for self-insured plans, and employer contributions to employee health reimbursement and
health savings accounts. Premium and expense costs and contributions are allowable for
employees who meet the definition of full-time employees and their families under the
federal Affordable Care Act, Public Law 111-148, and part-time employees.
new text end

Minnesota Statutes 2014, section 256B.441, subdivision 13, is amended to read:

"External fixed costs" means costs related to the
nursing home surcharge under section 256.9657, subdivision 1; licensure fees under
section 144.122; deleted text begin until September 30, 2013, long-term care consultation fees under
section 256B.0911, subdivision 6;deleted text end family advisory council fee under section 144A.33;
scholarships under section 256B.431, subdivision 36; planned closure rate adjustments
under section 256B.437; deleted text begin ordeleted text end single bed room incentives under section 256B.431,
subdivision 42; property taxes deleted text begin and property insurancedeleted text end new text begin , assessments, and payments in
lieu of taxes; employer health insurance costs; quality improvement incentive payment
rate adjustments under subdivision 46c; performance-based incentive payments under
subdivision 46d; special dietary needs under subdivision 51bnew text end ; and PERA.

Minnesota Statutes 2014, section 256B.441, subdivision 14, is amended to read:

"Facility average case mix index"
or "CMI" means a numerical deleted text begin valuedeleted text end score that describes the relative resource use for
all residents within the groups under the resource utilization group deleted text begin (RUG-III)deleted text end new text begin (RUG)
new text end classification system prescribed by the commissioner based on an assessment of each
resident. The facility average CMI shall be computed as the standardized days divided by
total days for all residents in the facility. The RUG's weights used deleted text begin in this section shall be
as follows for each RUG's class: SE3 1.605; SE2 1.247; SE1 1.081; RAD 1.509; RAC
1.259; RAB 1.109; RAA 0.957; SSC 1.453; SSB 1.224; SSA 1.047; CC2 1.292; CC1
1.200; CB2 1.086; CB1 1.017; CA2 0.908; CA1 0.834; IB2 0.877; IB1 0.817; IA2 0.720;
IA1 0.676; BB2 0.956; BB1 0.885; BA2 0.716; BA1 0.673; PE2 1.199; PE1 1.104; PD2
1.023; PD1 0.948; PC2 0.926; PC1 0.860; PB2 0.786; PB1 0.734; PA2 0.691; PA1 0.651;
BC1 0.651; and DDF 1.000deleted text end new text begin shall be based on the system prescribed in section 256B.438new text end .

Minnesota Statutes 2014, section 256B.441, subdivision 17, is amended to read:

"Fringe benefit costs" means the costs for group life,
deleted text begin health,deleted text end dental, workers' compensation, and other employee insurances and pension, new text begin except
for the Public Employees Retirement Association and employer health insurance costs;
new text end profit sharingdeleted text begin ,deleted text end new text begin ;new text end and retirement plans for which the employer pays all or a portion of the costs.

Minnesota Statutes 2014, section 256B.441, subdivision 30, is amended to read:

deleted text begin Facilities shall be classified into three groups by county.
The groups shall consist of:
deleted text end

deleted text begin (1) group one: facilities in Anoka, Benton, Carlton, Carver, Chisago, Dakota,
Dodge, Goodhue, Hennepin, Isanti, Mille Lacs, Morrison, Olmsted, Ramsey, Rice, Scott,
Sherburne, St. Louis, Stearns, Steele, Wabasha, Washington, Winona, or Wright County;
deleted text end

deleted text begin (2) group two: facilities in Aitkin, Beltrami, Blue Earth, Brown, Cass, Clay,
Cook, Crow Wing, Faribault, Fillmore, Freeborn, Houston, Hubbard, Itasca, Kanabec,
Koochiching, Lake, Lake of the Woods, Le Sueur, Martin, McLeod, Meeker, Mower,
Nicollet, Norman, Pine, Roseau, Sibley, Todd, Wadena, Waseca, Watonwan, or Wilkin
County; and
deleted text end

deleted text begin (3) group three: facilities in all other countiesdeleted text end new text begin (a) The commissioner shall determine
the median total care-related per diem to be used in subdivision 50 and the median other
operating per diem to be used in subdivision 51 using the cost reports from nursing
facilities in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington Countiesnew text end .

new text begin (b) The median total care-related per diem shall be equal to the median direct care
cost for a RUG's weight of 1.00 for facilities located in the counties listed in paragraph (a).
new text end

new text begin (c) The median other operating per diem shall be equal to the median other
operating per diem for facilities located in the counties listed in paragraph (a). The other
operating per diem shall be the sum of each facility's administrative costs, dietary costs,
housekeeping costs, laundry costs, and maintenance and plant operations costs divided
by each facility's resident days.
new text end

Minnesota Statutes 2014, section 256B.441, subdivision 31, is amended to read:

"Prior system operating
cost payment rate" means the operating cost payment rate in effect on deleted text begin September 30,
2008deleted text end new text begin December 31, 2015new text end , under Minnesota Rules and Minnesota Statutesdeleted text begin , not including
planned closure rate adjustments under section 256B.437 or single bed room incentives
under section 256B.431, subdivision 42deleted text end .

Minnesota Statutes 2014, section 256B.441, subdivision 33, is amended to read:

"Rate year" means the 12-month period beginning on deleted text begin October
deleted text end new text begin Januarynew text end 1 following the second most recent reporting year.

Minnesota Statutes 2014, section 256B.441, subdivision 35, is amended to read:

"Reporting period" means the one-year period
beginning on October 1 and ending on the following September 30 during which incurred
costs are accumulated and then reported on the statistical and cost report.new text begin If a facility is
reporting for an interim or settle-up period, the reporting period beginning date may be a
date other than October 1. An interim or settle-up report must cover at least five months,
but no more than 17 months, and must always end on September 30.
new text end

Minnesota Statutes 2014, section 256B.441, subdivision 40, is amended to read:

"Standardized days" means the sum of resident days
by case mix category multiplied by the RUG index for each category.new text begin When a facility has
resident days at a penalty classification, these days shall be reported as resident days at the
RUG class established immediately after the penalty period, if available, and otherwise, at
the RUG class in effect before the penalty began.
new text end

Minnesota Statutes 2014, section 256B.441, subdivision 44, is amended to read:

(a) The commissioner shall determine
a quality score for each nursing facility using quality measures established in section
256B.439, according to methods determined by the commissioner in consultation with
stakeholders and expertsnew text begin , and using data as provided in the Minnesota Nursing Home
Report Cardnew text end . These methods shall be exempt from the rulemaking requirements under
chapter 14.

(b) For each quality measure, a score shall be determined with deleted text begin a maximumdeleted text end new text begin the new text end number
of points deleted text begin available and number of pointsdeleted text end assigned as determined by the commissioner
using the methodology established according to this subdivision. deleted text begin The scores determined
for all quality measures shall be totaled.deleted text end The determination of the quality measures to be
used and the methods of calculating scores may be revised annually by the commissioner.

(c) deleted text begin For the initial rate year under the new payment system, the quality measures
shall include:
deleted text end

deleted text begin (1) staff turnover;
deleted text end

deleted text begin (2) staff retention;
deleted text end

deleted text begin (3) use of pool staff;
deleted text end

deleted text begin (4) quality indicators from the minimum data set; and
deleted text end

deleted text begin (5) survey deficiencies.
deleted text end

deleted text begin (d)deleted text end Beginning deleted text begin July 1, 2013deleted text end new text begin January 1, 2016new text end , the quality score shall deleted text begin be a value
between zero and 100, using data as provided in the Minnesota nursing home report
card, withdeleted text end new text begin include up to new text end 50 deleted text begin percent derived fromdeleted text end new text begin points related to new text end the Minnesota quality
indicators score, new text begin up to new text end 40 deleted text begin percent derived fromdeleted text end new text begin points related to new text end the resident quality of life
score, andnew text begin up to new text end ten deleted text begin percent derived fromdeleted text end new text begin points related to new text end the state inspection results score.

deleted text begin (e)deleted text end new text begin (d) new text end The commissioner, in cooperation with the commissioner of health, may
adjust the formula in paragraph deleted text begin (d)deleted text end new text begin (c)new text end , or the methodology for computing the total quality
score, effective July 1 of any year beginning in deleted text begin 2014deleted text end new text begin 2017new text end , with five months advance
public notice. In changing the formula, the commissioner shall consider quality measure
priorities registered by report card users, advice of stakeholders, and available research.

Minnesota Statutes 2014, section 256B.441, subdivision 46c, is amended to
read:

The commissioner shall develop a quality improvement incentive program in consultation
with stakeholders. The annual funding pool available for quality improvement incentive
payments shall be equal to 0.8 percent of all operating payments, not including any rate
components resulting from equitable cost-sharing for publicly owned nursing facility
program participation under subdivision 55a, critical access nursing facility program
participation under subdivision 63, or performance-based incentive payment program
participation under section 256B.434, subdivision 4, paragraph (d). new text begin For the period from
October 1, 2015, to December 31, 2016, rate adjustments provided under this subdivision
shall be effective for 15 months. new text end Beginning deleted text begin October 1, 2015deleted text end new text begin January 1, 2017new text end , annual
rate adjustments provided under this subdivision shall be effective for one year, starting
deleted text begin Octoberdeleted text end new text begin January new text end 1 and ending the following deleted text begin September 30deleted text end new text begin December 31. The increase in
this subdivision shall be included in the external fixed payment rate under subdivisions
13 and 53new text end .

Minnesota Statutes 2014, section 256B.441, is amended by adding a
subdivision to read:

new text begin The commissioner shall
develop additional incentive-based payments of up to five percent above a facility's
operating payment rate for achieving outcomes specified in a contract. The commissioner
may solicit proposals and select those which, on a competitive basis, best meet the state's
policy objectives. The commissioner shall limit the amount of any incentive payment
and the number of contract amendments under this subdivision to operate the incentive
payments within funds appropriated for this purpose. The commissioner shall approve
proposals through a memorandum of understanding which shall specify various levels of
payment for various levels of performance. Incentive payments to facilities under this
subdivision shall be in the form of time-limited rate adjustments which shall be included
in the external fixed payment rate under subdivisions 13 and 53. In establishing the
specified outcomes and related criteria, the commissioner shall consider the following
state policy objectives:
new text end

new text begin (1) successful diversion or discharge of residents to the residents' prior home or other
community-based alternatives;
new text end

new text begin (2) adoption of new technology to improve quality or efficiency;
new text end

new text begin (3) improved quality as measured in the Minnesota Nursing Home Report Card;
new text end

new text begin (4) reduced acute care costs; and
new text end

new text begin (5) any additional outcomes proposed by a nursing facility that the commissioner
finds desirable.
new text end

Minnesota Statutes 2014, section 256B.441, subdivision 48, is amended to read:

The direct care per
diem for each facility shall be the facility's direct care costs divided by its standardized
days. The other care-related per diem shall be the sum of the facility's activities costs,
other direct care costs, raw food costs, therapy costs, and social services costs, divided by
the facility's resident days. deleted text begin The other operating per diem shall be the sum of the facility's
administrative costs, dietary costs, housekeeping costs, laundry costs, and maintenance
and plant operations costs divided by the facility's resident days.
deleted text end

Minnesota Statutes 2014, section 256B.441, subdivision 50, is amended to read:

(a) The deleted text begin limit on thedeleted text end new text begin median
new text end total care-related per diem shall be determined deleted text begin for each peer group and facility type group
combination. A facility's total care-related per diems shall be limited to 120 percent of the
median for the facility's peer and facility type group. The facility-specific direct care costs
used in making this comparison and in the calculation of the median shall be based on a
RUG's weight of 1.00. A facility that is above that limit shall have its total care-related per
diem reduced to the limit. If a reduction of the total care-related per diem is necessary
because of this limit, the reduction shall be made proportionally to both the direct care per
diem and the other care-related per diemdeleted text end new text begin according to subdivision 30new text end .

(b) deleted text begin Beginning with rates determined for October 1, 2016, thedeleted text end new text begin A facility'snew text end total
care-related limit shall be a variable amount based on each facility's quality score, as
determined under subdivision 44, in accordance with clauses (1) to deleted text begin (4)deleted text end new text begin (3)new text end :

(1) deleted text begin for each facility, the commissioner shall determine the quality score, subtract 40,
divide by 40, and convert to a percentagedeleted text end new text begin the quality score shall be multiplied by 0.5625new text end ;

(2) deleted text begin if the value determined in clause (1) is less than zero, the total care-related limit
shall be 105 percent of the median for the facility's peer and facility type groupdeleted text end new text begin add 89.375
to the amount determined in clause (1), and divide the total by 100new text end ;new text begin and
new text end

(3) deleted text begin if the value determined in clause (1) is greater than 100 percent, the total
care-related limit shall be 125 percent of the median for the facility's peer and facility type
group; anddeleted text end new text begin multiply the amount determined in clause (2) by the median total care-related
per diem determined in subdivision 30, paragraph (b).
new text end

deleted text begin (4) if the value determined in clause (1) is greater than zero and less than 100
percent, the total care-related limit shall be 105 percent of the median for the facility's peer
and facility type group plus one-fifth of the percentage determined in clause (1).
deleted text end

new text begin (c) A RUG's weight of 1.00 shall be used in the calculation of the median total
care-related per diem, and in comparisons of facility-specific direct care costs to the median.
new text end

new text begin (d) A facility that is above its total care-related limit as determined according to
paragraph (b) shall have its total care-related per diem reduced to its limit. If a reduction
of the total care-related per diem is necessary due to this limit, the reduction shall be made
proportionally to both the direct care per diem and the other care-related per diem.
new text end

Minnesota Statutes 2014, section 256B.441, subdivision 51, is amended to read:

deleted text begin The limit on thedeleted text end new text begin A price
fornew text end other operating deleted text begin per diemdeleted text end new text begin costsnew text end shall be determined deleted text begin for each peer groupdeleted text end . deleted text begin A facility's
other operating per diem shall be limited todeleted text end new text begin The price shall be calculated asnew text end 105 percent
of the median deleted text begin for its peer groupdeleted text end new text begin other operating per diem described in subdivision 30,
paragraph (c)new text end . deleted text begin A facility that is above that limit shall have its other operating per diem
reduced to the limit.
deleted text end

Minnesota Statutes 2014, section 256B.441, subdivision 51a, is amended to
read:

(a)
For rate years beginning on or after deleted text begin Octoberdeleted text end new text begin Januarynew text end 1, 2016, deleted text begin the commissioner may
negotiate increases to the care-related limit for nursing facilities that provide specialized
care, at a cost to the general fund not to exceed $600,000 per year. The commissioner
shall publish a request for proposals annually, and may negotiate increases to the limits
that shall apply for either one or two years before the increase shall be subject to a new
proposal and negotiation.deleted text end the care-related limit deleted text begin maydeleted text end new text begin for specialized care facilities shall
new text end be increased by deleted text begin up todeleted text end 50 percent.

(b) deleted text begin In selecting facilities with which to negotiate, the commissioner shall consider:
deleted text end new text begin "Specialized care facilities" are defined as a facility having a program licensed under
chapter 245A and Minnesota Rules, chapter 9570, or a facility with 96 beds on January 1,
2015, located in Robbinsdale that specializes in the treatment of Huntington's Disease.
new text end

deleted text begin (1) the diagnoses or other circumstances of residents in the specialized program that
require care that costs substantially more than the RUG's rates associated with those
residents;
deleted text end

deleted text begin (2) the nature of the specialized program or programs offered to meet the needs
of these individuals; and
deleted text end

deleted text begin (3) outcomes achieved by the specialized program.
deleted text end

Minnesota Statutes 2014, section 256B.441, is amended by adding a
subdivision to read:

new text begin The commissioner shall adjust the rates of a
nursing facility that meets the criteria for the special dietary needs of its residents and the
requirements in section 31.651. The adjustment for raw food cost shall be the difference
between the nursing facility's most recently reported allowable raw food cost per diem and
115 percent of the median allowable raw food cost per diem. For rate years beginning
on or after January 1, 2016, this amount shall be removed from allowable raw food per
diem costs under operating costs and included in the external fixed per diem rate under
subdivisions 13 and 53.
new text end

Minnesota Statutes 2014, section 256B.441, subdivision 53, is amended to read:

The commissioner
shall calculate a payment rate for external fixed costs.

(a) For a facility licensed as a nursing home, the portion related to section 256.9657
shall be equal to $8.86. For a facility licensed as both a nursing home and a boarding care
home, the portion related to section 256.9657 shall be equal to $8.86 multiplied by the
result of its number of nursing home beds divided by its total number of licensed beds.

(b) The portion related to the licensure fee under section 144.122, paragraph (d),
shall be the amount of the fee divided by actual resident days.

(c) new text begin The portion related to development and education of resident and family advisory
councils under section 144A.33 shall be $5 divided by 365.
new text end

new text begin (d) new text end The portion related to scholarships shall be determined under section 256B.431,
subdivision 36.

deleted text begin (d) Until September 30, 2013, the portion related to long-term care consultation shall
be determined according to section 256B.0911, subdivision 6.
deleted text end

deleted text begin (e) The portion related to development and education of resident and family advisory
councils under section 144A.33 shall be $5 divided by 365.
deleted text end

deleted text begin (f)deleted text end new text begin (e)new text end The portion related to planned closure rate adjustments shall be as determined
under section 256B.437, subdivision 6, and Minnesota Statutes 2010, section 256B.436.
deleted text begin Planned closure rate adjustments that take effect before October 1, 2014, shall no longer
be included in the payment rate for external fixed costs beginning October 1, 2016.
Planned closure rate adjustments that take effect on or after October 1, 2014, shall no
longer be included in the payment rate for external fixed costs beginning on October 1 of
the first year not less than two years after their effective date.
deleted text end

new text begin (f) The single bed room incentives shall be as determined under section 256B.431,
subdivision 42.
new text end

(g) The portions related to deleted text begin property insurance,deleted text end real estate taxes, special assessments,
and payments made in lieu of real estate taxes directly identified or allocated to the nursing
facility shall be the actual amounts divided by actual resident days.

(h) new text begin The portion related to employer health insurance costs shall be the allowable
costs divided by resident days.
new text end

new text begin (i) new text end The portion related to the Public Employees Retirement Association shall be
actual costs divided by resident days.

deleted text begin (i) The single bed room incentives shall be as determined under section 256B.431,
subdivision 42. Single bed room incentives that take effect before October 1, 2014, shall
no longer be included in the payment rate for external fixed costs beginning October 1,
2016. Single bed room incentives that take effect on or after October 1, 2014, shall no
longer be included in the payment rate for external fixed costs beginning on October 1 of
the first year not less than two years after their effective date.
deleted text end

new text begin (j) The portion related to quality improvement incentive payment rate adjustments
shall be as determined under subdivision 46c.
new text end

new text begin (k) The portion related to performance-based incentive payments shall be as
determined under subdivision 46d.
new text end

new text begin (l) The portion related to special dietary needs shall be the per diem amount
determined under subdivision 51b.
new text end

deleted text begin (j)deleted text end new text begin (m)new text end The payment rate for external fixed costs shall be the sum of the amounts in
paragraphs (a) to deleted text begin (i)deleted text end new text begin (l)new text end .

Minnesota Statutes 2014, section 256B.441, subdivision 54, is amended to read:

deleted text begin In rate years when rates are
rebased,deleted text end new text begin The total care-related per diem, other operating price, and external fixed per
diem for each facility shall be converted to payment rates.new text end The total payment rate for
a RUG's weight of 1.00 shall be the sum of the total care-related payment rate, other
operating payment rate, deleted text begin efficiency incentive,deleted text end external fixed cost rate, and the property rate
determined under section 256B.434. To determine a total payment rate for each RUG's
level, the total care-related payment rate shall be divided into the direct care payment rate
and the other care-related payment rate, and the direct care payment rate multiplied by the
RUG's weight for each RUG's level deleted text begin using the weights in subdivision 14deleted text end .

Minnesota Statutes 2014, section 256B.441, subdivision 55a, is amended to
read:

(a) For
operating payment rates implemented between October 1, 2011, and the day before deleted text begin the
phase-in under subdivision 55 is completedeleted text end new text begin operating payment rates are determined under
this sectionnew text end , the commissioner shall allow nursing facilities whose physical plant is owned
or whose license is held by a city, county, or hospital district to apply for a higher payment
rate under this section if the local governmental entity agrees to pay a specified portion
of the nonfederal share of medical assistance costs. Nursing facilities that apply shall be
eligible to select an operating payment rate, with a weight of 1.00, up to the rate calculated
in subdivision 54, without application of the phase-in under subdivision 55. The rates for
the other RUGs shall be computed as provided under subdivision 54.

(b) For operating payment rates implemented beginning the day when the deleted text begin phase-in
under subdivision 55 is completedeleted text end new text begin operating payment rates are determined under this
sectionnew text end , the commissioner shall allow nursing facilities whose physical plant is owned or
whose license is held by a city, county, or hospital district to apply for a higher payment
rate under this section if the local governmental entity agrees to pay a specified portion of
the nonfederal share of medical assistance costs. Nursing facilities that apply are eligible
to select an operating payment rate with a weight of 1.00, up to an amount determined by
the commissioner to be allowable under the Medicare upper payment limit test. The rates
for the other RUGs shall be computed under subdivision 54. The rate increase allowed in
this paragraph shall take effect only upon federal approval.

(c) Rates determined under this subdivision shall take effect beginning October 1,
2011, based on cost reports for the reporting year ending September 30, 2010, and in
future rate years, rates determined for nursing facilities participating under this subdivision
shall take effect on October 1 of each year, based on the most recent available cost report.

(d) Eligible nursing facilities that wish to participate under this subdivision shall
make an application to the commissioner by August 31, 2011, or by June 30 of any
subsequent year.

(e) For each participating nursing facility, the public entity that owns the physical
plant or is the license holder of the nursing facility shall pay to the state the entire
nonfederal share of medical assistance payments received as a result of the difference
between the nursing facility's payment rate under paragraph (a) or (b), and the rates that
the nursing facility would otherwise be paid without application of this subdivision under
subdivision 54 deleted text begin or 55deleted text end as determined by the commissioner.

(f) The commissioner may, at any time, reduce the payments under this subdivision
based on the commissioner's determination that the payments shall cause nursing facility
rates to exceed the state's Medicare upper payment limit or any other federal limitation. If
the commissioner determines a reduction is necessary, the commissioner shall reduce all
payment rates for participating nursing facilities by a percentage applied to the amount of
increase they would otherwise receive under this subdivision and shall notify participating
facilities of the reductions. If payments to a nursing facility are reduced, payments under
section 256B.19, subdivision 1e, shall be reduced accordingly.

Minnesota Statutes 2014, section 256B.441, subdivision 56, is amended to read:

new text begin (a) new text end For the rate years beginning deleted text begin October 1, 2008,
to Octoberdeleted text end new text begin on or after Januarynew text end 1, 2016, no nursing facility shall receive an operating
cost payment rate less than itsnew text begin prior systemnew text end operating cost payment rate deleted text begin under section
256B.434. For rate years beginning between October 1, 2009, and October 1, 2015, no
nursing facility shall receive an operating payment rate less than its operating payment
rate in effect on September 30, 2009deleted text end . The comparison of operating payment rates under
this section shall be made for a RUG's rate with a weight of 1.00.

new text begin (b) For rate years beginning on or after January 1, 2016, no facility shall be subject
to a care-related payment rate limit reduction greater than five percent of the median
determined in subdivision 30.
new text end

Minnesota Statutes 2014, section 256B.441, subdivision 63, is amended to read:

(a) The commissioner, in consultation
with the commissioner of health, may designate certain nursing facilities as critical access
nursing facilities. The designation shall be granted on a competitive basis, within the
limits of funds appropriated for this purpose.

(b) The commissioner shall request proposals from nursing facilities every
two years. Proposals must be submitted in the form and according to the timelines
established by the commissioner. In selecting applicants to designate, the commissioner,
in consultation with the commissioner of health, and with input from stakeholders, shall
develop criteria designed to preserve access to nursing facility services in isolated areas,
rebalance long-term care, and improve quality. Beginning in fiscal year 2015, to the
extent practicable, the commissioner shall ensure an even distribution of designations
across the state.

(c) The commissioner shall allow the benefits in clauses (1) to (5) for nursing
facilities designated as critical access nursing facilities:

(1) partial rebasing, with the commissioner allowing a designated facility operating
payment rates being the sum of up to 60 percent of the operating payment rate determined
in accordance with subdivision 54 and at least 40 percent, with the sum of the two portions
being equal to 100 percent, of the operating payment rate that would have been allowed
had the facility not been designated. The commissioner may adjust these percentages by
up to 20 percent and may approve a request for less than the amount allowed;

(2) enhanced payments for leave days. Notwithstanding section 256B.431,
subdivision 2r, upon designation as a critical access nursing facility, the commissioner
shall limit payment for leave days to 60 percent of that nursing facility's total payment rate
for the involved resident, and shall allow this payment only when the occupancy of the
nursing facility, inclusive of bed hold days, is equal to or greater than 90 percent;

(3) two designated critical access nursing facilities, with up to 100 beds in active
service, may jointly apply to the commissioner of health for a waiver of Minnesota
Rules, part 4658.0500, subpart 2, in order to jointly employ a director of nursing. The
commissioner of health will consider each waiver request independently based on the
criteria under Minnesota Rules, part 4658.0040;

(4) the minimum threshold under section 256B.431, subdivision 15, paragraph (e),
shall be 40 percent of the amount that would otherwise apply; and

(5) deleted text begin notwithstanding subdivision 58, beginning October 1, 2014,deleted text end the quality-based
rate limits under subdivision 50 shall apply to designated critical access nursing facilities.

(d) Designation of a critical access nursing facility shall be for a period of two
years, after which the benefits allowed under paragraph (c) shall be removed. Designated
facilities may apply for continued designation.

new text begin (e) This subdivision is suspended and no state or federal funding shall be
appropriated or allocated for the purposes of this subdivision from January 1, 2016, to
December 31, 2017.
new text end

Minnesota Statutes 2014, section 256B.441, is amended by adding a
subdivision to read:

new text begin Effective for the rate year beginning
January 1, 2016, and all subsequent rate years, the operating payment rate for a facility
located in the city of Golden Valley at 3915 Golden Valley Road with 44 licensed
rehabilitation beds as of January 7, 2015, must be calculated without the application of
subdivisions 50 and 51.
new text end

Minnesota Statutes 2014, section 256B.441, is amended by adding a
subdivision to read:

new text begin Effective for the rate year beginning
January 1, 2016, and annually thereafter, operating payment rates of a nonprofit nursing
facility that exists on January 1, 2015, is located anywhere within the boundaries of the
city of Breckenridge, and is reimbursed under this section, section 256B.431, or section
256B.434, shall be adjusted to be equal to the median RUG's rates, including comparable
rate components as determined by the commissioner, for the equivalent RUG's weight of
the nonprofit nursing facility or facilities located in an adjacent city in another state and
in cities contiguous to the adjacent city. The Minnesota facility's operating payment rate
with a weight of 1.0 shall be computed by dividing the adjacent city's nursing facilities
median operating payment rate with a weight of 1.02 by 1.02. If the adjustments under
this subdivision result in a rate that exceeds the limits in subdivisions 50 and 51 in a given
rate year, the facility's rate shall not be subject to those limits for that rate year. This
subdivision shall apply only if it results in a rate increase.
new text end

Minnesota Statutes 2014, section 256B.441, is amended by adding a
subdivision to read:

new text begin Within the projected
cost of nursing facility payment reform under this section, for a facility that did not provide
employee health insurance coverage as of May 1, 2015, if the facility has a signed contract
with a health insurance provider to begin providing employee health insurance coverage
by January 1, 2016, the facility shall be paid for the employer health insurance costs
portion of external fixed costs under subdivisions 13 and 53 beginning January 1, 2016.
new text end

Minnesota Statutes 2014, section 256B.50, subdivision 1, is amended to read:

A provider may appeal from a determination of a payment
rate established pursuant to this chapternew text begin or allowed costs under section 256B.441new text end and
reimbursement rules of the commissioner if the appeal, if successful, would result in
a change to the provider's payment rate or to the calculation of maximum charges to
therapy vendors as provided by section 256B.433, subdivision 3. Appeals must be filed
in accordance with procedures in this section. This section does not apply to a request
from a resident or long-term care facility for reconsideration of the classification of a
resident under section 144.0722.

new text begin This section is effective July 1, 2015, and applies to appeals
filed on or after that date.
new text end

Minnesota Statutes 2014, section 256I.05, subdivision 2, is amended to read:

This subdivision applies to a residence
that on August 1, 1984, was licensed by the commissioner of health only as a boarding
care home, certified by the commissioner of health as an intermediate care facility, and
licensed by the commissioner of human services under Minnesota Rules, parts 9520.0500
to 9520.0690. Notwithstanding the provisions of subdivision 1c, the rate paid to a
facility reimbursed under this subdivision shall be determined under section 256B.431,
deleted text begin or under sectiondeleted text end 256B.434new text begin , or 256B.441,new text end if the facility is accepted by the commissioner
for participation in the alternative payment demonstration project. The rate paid to this
facility shall also include adjustments to the group residential housing rate according to
subdivision 1, and any adjustments applicable to supplemental service rates statewide.

new text begin By January 1, 2017, the commissioner of human services shall evaluate and report to
the house of representatives and senate committees and divisions with jurisdiction over
nursing facility payment rates on:
new text end

new text begin (1) the impact of using cost report data to set rates without accounting for cost
report to rate year inflation;
new text end

new text begin (2) the impact of the quality adjusted care limits;
new text end

new text begin (3) the ability of nursing facilities to attract and retain employees, including how rate
increases are being passed through to employees, under the new payment system;
new text end

new text begin (4) the efficacy of the critical access nursing facility program under Minnesota
Statutes, section 256B.441, subdivision 63, given the new nursing facility payment system;
new text end

new text begin (5) creating a process for the commissioner to designate certain facilities as
specialized care facilities for difficult-to-serve populations; and
new text end

new text begin (6) limiting the hold harmless in Minnesota Statutes, section 256B.441, subdivision
56.
new text end

new text begin The commissioner shall conduct a study, in consultation with stakeholders and
experts, of property rate setting, based on a rental value approach for Minnesota nursing
facilities, and shall report the findings to the house of representatives and senate
committees and divisions with jurisdiction over nursing facility payment rates by March 1,
2016, for a system implementation date of January 1, 2017. The commissioner shall:
new text end

new text begin (1) contract with at least two firms to conduct appraisals of all nursing facilities in
the medical assistance program. Each firm shall conduct appraisals of approximately
equal portions of all nursing facilities assigned to them at random. The appraisals shall
determine the value of the land, building, and equipment of each nursing facility, taking
into account the quality of construction and current condition of the building;
new text end

new text begin (2) use the information from the appraisals to complete the design of a fair rental
value system and calculate a replacement value and an effective age for each nursing
facility. Nursing facilities may request an appraisal by a second firm which shall be
assigned randomly by the commissioner. The commissioner shall use the findings of
the second appraisal. If the second firm increases the appraisal value by more than five
percent, the state shall pay for the second appraisal. Otherwise, the nursing facility shall
pay the cost of the appraisal. Results of appraisals are not otherwise subject to appeal
under section 256B.50; and
new text end

new text begin (3) include in the report required under this section the following items:
new text end

new text begin (i) a description of the proposed rental value system;
new text end

new text begin (ii) options for adjusting the system parameters that vary the cost of implementing
the new property rate system and an analysis of individual nursing facilities under the
current property payment rate and the rates under various approaches to calculating rates
under the rental value system;
new text end

new text begin (iii) recommended steps for transition to the rental value system;
new text end

new text begin (iv) an analysis of the expected long-term incentives of the rental value system for
nursing facilities to maintain and replace buildings, including how the current exceptions to
the moratorium process under Minnesota Statutes, section 144A.073, may be adapted; and
new text end

new text begin (v) bill language for implementation of the rental value system.
new text end

new text begin The revisor of statutes, in consultation with the House Research Department, Office
of Senate Counsel, Research, and Fiscal Analysis, Department of Human Services, and
stakeholders, shall prepare legislation for the 2016 legislative session to recodify laws
governing nursing home payments and rates in Minnesota Statutes, chapter 256B, and in
Minnesota Rules, chapter 9549.
new text end

new text begin This section is effective the day following final enactment.
new text end

new text begin Minnesota Statutes 2014, sections 256B.434, subdivision 19b; and 256B.441,
subdivisions 14a, 19, 50a, 52, 55, 58, and 62, new text end new text begin are repealed.
new text end

new text begin Sections 62A.67 to 62A.672 may be cited as the "Minnesota Telemedicine Act."
new text end

new text begin This section is effective January 1, 2017, and applies to
coverage offered, sold, issued, or renewed on or after that date.
new text end

new text begin For purposes of sections 62A.67 to 62A.672, the
terms defined in this section have the meanings given.
new text end

new text begin "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.
new text end

new text begin "Health care provider" has the meaning provided
in section 62A.63, subdivision 2.
new text end

new text begin "Health carrier" has the meaning provided in section
62A.011, subdivision 2.
new text end

new text begin "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.
new text end

new text begin "Licensed health care provider" means a
health care provider who is:
new text end

new text begin (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 a vendor of medical care as defined in section 256B.02, subdivision
7; and
new text end

new text begin (2) authorized within their respective scope of practice to provide the particular
service with no supervision or under general supervision.
new text end

new text begin "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.
new text end

new text begin "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.
new text end

new text begin "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.
new text end

new text begin This section is effective January 1, 2017, and applies to
coverage offered, sold, issued, or renewed on or after that date.
new text end

new text begin (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.
new text end

new text begin (b) Nothing in this section shall be construed to:
new text end

new text begin (1) require a health carrier to provide coverage for services that are not medically
necessary;
new text end

new text begin (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
new text end

new text begin (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.
new text end

new text begin 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.
new text end

new text begin (a) A health carrier shall
reimburse the distant site licensed health care provider for covered services delivered
via telemedicine commensurate with the cost of delivering health care services through
telemedicine. The distant site provider is responsible for reimbursing any fees to the
originating site.
new text end

new text begin (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.
new text end

new text begin This section is effective January 1, 2017, and applies to
coverage offered, sold, issued, or renewed on or after that date.
new text end

Minnesota Statutes 2014, section 103I.205, subdivision 4, is amended to read:

(a) Except as provided in paragraph (b), (c), (d), or (e),
section 103I.401, subdivision 2, or section 103I.601, subdivision 2, a person may not
drill, construct, repair, or seal a well or boring unless the person has a well contractor's
license in possession.

(b) A person may construct, repair, and seal a monitoring well if the person:

(1) is a professional engineer licensed under sections 326.02 to 326.15 in the
branches of civil or geological engineering;

(2) is a hydrologist or hydrogeologist certified by the American Institute of
Hydrology;

(3) is a professional geoscientist licensed under sections 326.02 to 326.15;

(4) is a geologist certified by the American Institute of Professional Geologists; or

(5) meets the qualifications established by the commissioner in rule.

A person must register with the commissioner as a monitoring well contractor on
forms provided by the commissioner.

(c) A person may do the following work with a limited well/boring contractor's
license in possession. A separate license is required for each of the six activities:

(1) installing or repairing well screens or pitless units or pitless adaptors and well
casings from the pitless adaptor or pitless unit to the upper termination of the well casing;

(2) constructing, repairing, and sealing drive point wells or dug wells;

(3) installing well pumps or pumping equipment;

(4) sealing wells;

(5) constructing, repairing, or sealing dewatering wells; or

(6) constructing, repairing, or sealing bored geothermal heat exchangers.

(d) A person may construct, repair, and seal an elevator boring with an elevator
boring contractor's license.

(e) Notwithstanding other provisions of this chapter requiring a license or
registration, a license or registration is not required for a person who complies with the
other provisions of this chapter if the person is:

(1) an individual who constructs a well on land that is owned or leased by the
individual and is used by the individual for farming or agricultural purposes or as the
individual's place of abode;

(2) an individual who performs labor or services for a contractor licensed or
registered under the provisions of this chapter in connection with the construction, sealing,
or repair of a well or boring at the direction and under the personal supervision of a
contractor licensed or registered under the provisions of this chapter; or

(3) a licensed plumber who is repairing submersible pumps or water pipes associated
with well water systems ifnew text begin :
new text end

new text begin (i)new text end the repair location is within an area where there is no licensed or registered
well contractor within deleted text begin 25deleted text end new text begin 50new text end milesnew text begin ; and
new text end

new text begin (ii) the licensed plumber complies with all of the requirements of this chapter and
all relevant sections of the plumbing codenew text end .

new text begin For purposes of this section, the following definitions
apply:
new text end

new text begin (1) "eligible primary care residency program" means a program that meets the
following criteria:
new text end

new text begin (i) is located in Minnesota;
new text end

new text begin (ii) trains medical residents in the specialties of family medicine, general internal
medicine, general pediatrics, psychiatry, geriatrics, or general surgery; and
new text end

new text begin (iii) is accredited by the Accreditation Council for Graduate Medical Education or
presents a credible plan to obtain accreditation;
new text end

new text begin (2) "eligible project" means a project to establish a new eligible primary care
residency program or create at least one new residency slot in an existing eligible primary
care residency program; and
new text end

new text begin (3) "new residency slot" means the creation of a new residency position and the
execution of a contract with a new resident in a residency program.
new text end

new text begin (a) The commissioner of health shall award
primary care residency expansion grants to eligible primary care residency programs to
plan and implement new residency slots. A planning grant shall not exceed $75,000, and a
training grant shall not exceed $150,000 per new residency slot for the first year, $100,000
for the second year, and $50,000 for the third year of the new residency slot.
new text end

new text begin (b) Funds may be spent to cover the costs of:
new text end

new text begin (1) planning related to establishing an accredited primary care residency program;
new text end

new text begin (2) obtaining accreditation by the Accreditation Council for Graduate Medical
Education or another national body that accredits residency programs;
new text end

new text begin (3) establishing new residency programs or new resident training slots;
new text end

new text begin (4) recruitment, training, and retention of new residents and faculty;
new text end

new text begin (5) travel and lodging for new residents;
new text end

new text begin (6) faculty, new resident, and preceptor salaries related to new residency slots;
new text end

new text begin (7) training site improvements, fees, equipment, and supplies required for new
family medicine resident training slots; and
new text end

new text begin (8) supporting clinical education in which trainees are part of a primary care team
model.
new text end

new text begin Eligible primary care residency
programs seeking a grant shall apply to the commissioner. Applications must include the
number of new family medicine residency slots planned or under contract; attestation that
funding will be used to support an increase in the number of available residency slots;
a description of the training to be received by the new residents, including the location
of training; a description of the project, including all costs associated with the project;
all sources of funds for the project; detailed uses of all funds for the project; the results
expected; and a plan to maintain the new residency slot after the grant period. The
applicant must describe achievable objectives, a timetable, and roles and capabilities of
responsible individuals in the organization.
new text end

new text begin The commissioner shall
review each application to determine whether or not the residency program application
is complete and whether the proposed new residency program and any new residency
slots are eligible for a grant. The commissioner shall award grants to support up to six
family medicine, general internal medicine, or general pediatrics residents; four psychiatry
residents; two geriatrics residents; and two general surgery residents. If insufficient
applications are received from any eligible specialty, funds may be redistributed to
applications from other eligible specialties.
new text end

new text begin During the grant period, the commissioner may
require and collect from grantees any information necessary to evaluate the program.
Appropriations made to the program do not cancel and are available until expended.
new text end

Minnesota Statutes 2014, section 144.293, subdivision 5, is amended to read:

new text begin (a) new text end This section does not prohibit the
release of health records:

(1) for a medical emergency when the provider is unable to obtain the patient's
consent due to the patient's condition or the nature of the medical emergency;

(2) to other providers within related health care entities when necessary for the
current treatment of the patient; or

(3) to a health care facility licensed by this chapter, chapter 144A, or to the same
types of health care facilities licensed by this chapter and chapter 144A that are licensed
in another state when a patient:

(i) is returning to the health care facility and unable to provide consent; or

(ii) who resides in the health care facility, has services provided by an outside
resource under Code of Federal Regulations, title 42, section 483.75(h), and is unable
to provide consent.

new text begin (b) A provider may release a deceased patient's health care records to another provider
for the purposes of diagnosing or treating the deceased patient's surviving adult child.
new text end

new text begin This section is effective the day following final enactment.
new text end

new text begin (a) Each hospital, as defined under
section 144.50, subdivision 2, shall provide oral and written notice to each patient that
the hospital places in observation status of such placement not later than 24 hours after
such placement. The oral and written notices must include:
new text end

new text begin (1) a statement that the patient is not admitted to the hospital but is under observation
status;
new text end

new text begin (2) a statement that observation status may affect the patient's Medicare coverage for:
new text end

new text begin (i) hospital services, including medications and pharmaceutical supplies; or
new text end

new text begin (ii) home or community-based care or care at a skilled nursing facility upon the
patient's discharge; and
new text end

new text begin (3) a recommendation that the patient contact the patient's health insurance provider
or the Office of the Ombudsman for Long-Term Care or Office of the Ombudsman for
State Managed Health Care Programs or the Beneficiary and Family Centered Care
Quality Improvement Organization to better understand the implications of placement in
observation status.
new text end

new text begin (b) The hospital shall document the date in the patient's record that the notice
required in paragraph (a) was provided to the patient, the patient's designated
representative such as the patient's health care agent, legal guardian, conservator, or
another person acting as the patient's representative.
new text end

new text begin Each hospital, including hospitals
designated as critical access hospitals, must comply with the federal hospital requirements
for discharge planning which include:
new text end

new text begin (1) conducting a discharge planning evaluation that includes an evaluation of:
new text end

new text begin (i) the likelihood of the patient needing posthospital services and of the availability
of those services; and
new text end

new text begin (ii) the patient's capacity for self-care or the possibility of the patient being cared for
in the environment from which the patient entered the hospital;
new text end

new text begin (2) timely completion of the discharge planning evaluation under clause (1) by
hospital personnel so that appropriate arrangements for posthospital care are made before
discharge, and to avoid unnecessary delays in discharge;
new text end

new text begin (3) including the discharge planning evaluation under clause (1) in the patient's
medical record for use in establishing an appropriate discharge plan. The hospital must
discuss the results of the evaluation with the patient or individual acting on behalf of the
patient. The hospital must reassess the patient's discharge plan if the hospital determines
that there are factors that may affect continuing care needs or the appropriateness of
the discharge plan; and
new text end

new text begin (4) providing counseling, as needed, for the patient and family members or interested
persons to prepare them for posthospital care. The hospital must provide a list of available
Medicare-eligible home care agencies or skilled nursing facilities that serve the patient's
geographic area, or other area requested by the patient if such care or placement is
indicated and appropriate. Once the patient has designated their preferred providers, the
hospital will assist the patient in securing care covered by their health plan or within the
care network. The hospital must not specify or otherwise limit the qualified providers that
are available to the patient. The hospital must document in the patient's record that the list
was presented to the patient or to the individual acting on the patient's behalf.
new text end

new text begin (a) This section applies to health care facilities licensed under this chapter.
new text end

new text begin (b) Any television in a waiting room provided for use by the general public, or by
individuals using or requesting services, must have a closed captioning feature activated at
all times, if the television includes a captioning feature. A health care facility must make
reasonable efforts to prevent members of the general public and individuals using or
requesting services from independently deactivating a captioning feature.
new text end

new text begin (c) It is not a violation of this section if the captioning feature is deactivated by a
member of the general public or an individual using or requesting services, so long as
the captioning is reactivated as soon as possible by a member of the facility staff upon
knowledge that the deactivation has occurred.
new text end

new text begin (d) Failure to provide captioning consistent with this section is a violation of section
363A.11.
new text end

new text begin (a) For purposes of this section, the following terms
have the meanings given.
new text end

new text begin (b) "Administer" means the direct application of an epinephrine auto-injector to
the body of an individual.
new text end

new text begin (c) "Authorized entity" means entities that fall in the categories of recreation camps,
colleges and universities, preschools and day cares, and any other category of entities or
organizations that the commissioner authorizes to obtain and administer epinephrine
auto-injectors pursuant to this section. This definition does not include a school covered
under section 121A.2207.
new text end

new text begin (d) "Commissioner" means the commissioner of health.
new text end

new text begin (e) "Epinephrine auto-injector" means a single-use device used for the automatic
injection of a premeasured dose of epinephrine into the human body.
new text end

new text begin (f) "Provide" means to supply one or more epinephrine auto-injectors to an
individual or the individual's parent, legal guardian, or caretaker.
new text end

new text begin 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.
new text end

new text begin (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 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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (a) An owner, manager, employee, or
agent of an authorized entity who has completed the training required under subdivision 5
may:
new text end

new text begin (1) provide an epinephrine auto-injector for immediate administration to an
individual or the individual's parent, legal guardian, or caregiver if the 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
new text end

new text begin (2) administer an epinephrine auto-injector to an individual who the 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.
new text end

new text begin (b) Nothing in this section shall be construed to require any authorized entity to
maintain a stock of epinephrine auto-injectors.
new text end

new text begin (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:
new text end

new text begin (1) how to recognize signs and symptoms of severe allergic reactions, including
anaphylaxis;
new text end

new text begin (2) standards and procedures for the storage and administration of an epinephrine
auto-injector; and
new text end

new text begin (3) emergency follow-up procedures.
new text end

new text begin (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.
new text end

new text begin 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.
new text end

Minnesota Statutes 2014, section 144A.75, subdivision 13, is amended to read:

new text begin (a) new text end "Residential hospice facility" means
a facility that resembles a single-family home located in a residential area that directly
provides 24-hour residential and support services in a home-like setting for hospice patients
as an integral part of the continuum of home care provided by a hospice and that houses:

(1) no more than eight hospice patients; or

(2) at least nine and no more than 12 hospice patients with the approval of the local
governing authority, notwithstanding section 462.357, subdivision 8.

new text begin (b) Residential hospice facility also means a facility that directly provides 24-hour
residential and support services for hospice patients and that:
new text end

new text begin (1) houses no more than 21 hospice patients;
new text end

new text begin (2) meets hospice certification regulations adopted pursuant to title XVIII of the
federal Social Security Act, United States Code, title 42, section 1395, et seq.; and
new text end

new text begin (3) is located on St. Anthony Avenue in St. Paul, Minnesota, and was licensed as a
40-bed non-Medicare certified nursing home as of January 1, 2015.
new text end

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2014, section 144E.001, is amended by adding a
subdivision to read:

new text begin "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 this chapter, and who meets the requirements for
additional certification as a CEMT as specified in section 144E.275, subdivision 7.
new text end

Minnesota Statutes 2014, section 144E.275, subdivision 1, is amended to read:

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.new text begin Medical response
units may, subject to requirements specified elsewhere in this chapter and only when
requested by the patient's primary physician, advanced practice registered nurse, physician
assistant, or care team, provide, at the direction of a medical director, episodic population
health support, episodic individual patient education, and prevention education programs.
new text end

(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.

Minnesota Statutes 2014, section 144E.275, is amended by adding a
subdivision to read:

new text begin (a) To be
eligible for certification by the board as a CEMT, an individual shall:
new text end

new text begin (1) be currently certified as an EMT or AEMT;
new text end

new text begin (2) have two years of service as an EMT or AEMT;
new text end

new text begin (3) be a member of a registered medical response unit as defined in this chapter;
new text end

new text begin (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; and
new text end

new text begin (5) complete a board-approved application form.
new text end

new text begin (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.
new text end

new text begin (c) A CEMT may provide services as approved by the medical response unit medical
director.
new text end

new text begin (d) A CEMT may provide episodic individual patient education and prevention
education 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 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.
new text end

new text begin (e) A CEMT is subject to all certification, disciplinary, complaint, and other
regulatory requirements that apply to EMTs under this chapter.
new text end

new text begin (f) A CEMT may not provide services defined in section 144A.471, subdivisions 6
and 7, except a CEMT may provide verbal or visual reminders to the patient to:
new text end

new text begin (1) take a regularly scheduled medication, but not to provide or bring the patient
medication; and
new text end

new text begin (2) follow regularly scheduled treatment or exercise plans.
new text end

Minnesota Statutes 2014, section 145.4131, subdivision 1, is amended to read:

(a) Within 90 days of July 1, 1998, the commissioner shall
prepare a reporting form for use by physicians or facilities performing abortions. A copy
of this section shall be attached to the form. A physician or facility performing an abortion
shall obtain a form from the commissioner.

(b) The form shall require the following information:

(1) the number of abortions performed by the physician in the previous calendar
year, reported by month;

(2) the method used for each abortion;

(3) the approximate gestational age expressed in one of the following increments:

(i) less than nine weeks;

(ii) nine to ten weeks;

(iii) 11 to 12 weeks;

(iv) 13 to 15 weeks;

(v) 16 to 20 weeks;

(vi) 21 to 24 weeks;

(vii) 25 to 30 weeks;

(viii) 31 to 36 weeks; or

(ix) 37 weeks to term;

(4) the age of the woman at the time the abortion was performed;

(5) the specific reason for the abortion, including, but not limited to, the following:

(i) the pregnancy was a result of rape;

(ii) the pregnancy was a result of incest;

(iii) economic reasons;

(iv) the woman does not want children at this time;

(v) the woman's emotional health is at stake;

(vi) the woman's physical health is at stake;

(vii) the woman will suffer substantial and irreversible impairment of a major bodily
function if the pregnancy continues;

(viii) the pregnancy resulted in fetal anomalies; or

(ix) unknown or the woman refused to answer;

(6) the number of prior induced abortions;

(7) the number of prior spontaneous abortions;

(8) whether the abortion was paid for by:

(i) private coverage;

(ii) public assistance health coverage; or

(iii) self-pay;

(9) whether coverage was under:

(i) a fee-for-service plan;

(ii) a capitated private plan; or

(iii) other;

(10) complications, if any, for each abortion and for the aftermath of each abortion.
Space for a description of any complications shall be available on the form; deleted text begin and
deleted text end

(11) the medical specialty of the physician performing the abortionnew text begin ;
new text end

new text begin (12) whether the abortion resulted in a born alive infant, as defined in section
145.423, subdivision 4, and:
new text end

new text begin (i) any medical actions taken to preserve the life of the born alive infant;
new text end

new text begin (ii) whether the born alive infant survived; and
new text end

new text begin (iii) the status of the born alive infant, should the infant survive, if knownnew text end .

new text begin (a) A clinic, health center, or other facility in which the pregnancies of ten or
more women known to be pregnant are willfully terminated or aborted each month shall
be licensed by the commissioner of health and, notwithstanding Minnesota Rules, part
4675.0100, subparts 8 and 9, subject to the licensure requirements provided in Minnesota
Rules, chapter 4675. The commissioner shall not require a facility licensed as a hospital or
as an outpatient surgical center, pursuant to sections 144.50 to 144.56, to obtain a separate
license under this section, but may subject these facilities to inspections and investigations
as permitted under subdivision 2.
new text end

new text begin (b) The commissioner of health, the attorney general, an appropriate county attorney,
or a woman upon whom an abortion has been performed or attempted to be performed
at an unlicensed facility may seek an injunction in district court against the continued
operation of the facility. Proceedings for securing an injunction may be brought by the
attorney general or by the appropriate county attorney.
new text end

new text begin (c) Sanctions provided in this subdivision do not restrict other available sanctions.
new text end

new text begin No more than two times per year,
the commissioner of health shall perform routine and comprehensive inspections and
investigations of facilities described under subdivision 1. Every clinic, health center,
or other facility described under subdivision 1, and any other premise proposed to be
conducted as a facility by an applicant for a license, shall be open at all reasonable times
to inspection authorized in writing by the commissioner of health. No notice need be
given to any person prior to any inspection.
new text end

new text begin (a) The annual license fee for facilities required to be
licensed under this section is $3,712.
new text end

new text begin (b) Fees shall be collected and deposited according to section 144.122.
new text end

new text begin The commissioner of
health may refuse to grant or renew, or may suspend or revoke a license on any of the
following grounds:
new text end

new text begin (1) violation of any of the provisions of this section or Minnesota Rules, chapter 4675;
new text end

new text begin (2) permitting, aiding, or abetting the commission of any illegal act in the facility;
new text end

new text begin (3) conduct or practices detrimental to the welfare of the patient;
new text end

new text begin (4) obtaining or attempting to obtain a license by fraud or misrepresentation; or
new text end

new text begin (5) if there is a pattern of conduct that involves one or more physicians in the
facility who have a financial or economic interest in the facility, as defined in section
144.6521, subdivision 3, and who have not provided notice and disclosure of the financial
or economic interest as required by section 144.6521.
new text end

new text begin Prior to any suspension, revocation, or refusal to renew a license,
the licensee shall be entitled to notice and a hearing as provided by sections 14.57 to
14.69. At each hearing, the commissioner of health shall have the burden of establishing
that a violation described in subdivision 4 has occurred. If a license is revoked, suspended,
or not renewed, a new application for license may be considered by the commissioner if
the conditions upon which revocation, suspension, or refusal to renew was based have
been corrected and evidence of this fact has been satisfactorily furnished. A new license
may be granted after proper inspection has been made and all provisions of this section
and Minnesota Rules, chapter 4675, have been complied with and a recommendation
for licensure has been made by the commissioner or by an inspector as an agent of the
commissioner.
new text end

new text begin If any one or more provision, section, subdivision, sentence,
clause, phrase, or word of this section or the application of it to any person or circumstance
is found to be unconstitutional, it is declared to be severable and the balance of this section
shall remain effective notwithstanding such unconstitutionality. The legislature intends
that it would have passed this section, and each provision, section, subdivision, sentence,
clause, phrase, or word, regardless of the fact that any one provision, section, subdivision,
sentence, clause, phrase, or word is declared unconstitutional.
new text end

Minnesota Statutes 2014, section 145.423, is amended to read:

A deleted text begin live child borndeleted text end new text begin born alive infantnew text end as a
result of an abortion shall be fully recognized as a human person, and accorded immediate
protection under the law. All reasonable measures consistent with good medical practice,
including the compilation of appropriate medical records, shall be takennew text begin by the responsible
medical personnelnew text end to preserve the life and health of the deleted text begin childdeleted text end new text begin born alive infantnew text end .

When an abortion is performed after the twentieth
week of pregnancy, a physician, other than the physician performing the abortion, shall
be immediately accessible to take all reasonable measures consistent with good medical
practice, including the compilation of appropriate medical records, to preserve the life and
health of any deleted text begin live birthdeleted text end new text begin born alive infantnew text end that is the result of the abortion.

If a deleted text begin childdeleted text end new text begin born alive infantnew text end described in subdivision 1 dies after
birth, the body shall be disposed of in accordance with the provisions of section 145.1621.

new text begin (a) In determining the meaning of
any Minnesota statute, or of any ruling, regulation, or interpretation of the various
administrative bureaus and agencies of Minnesota, the words "person," "human being,"
"child," and "individual" shall include every infant member of the species Homo sapiens
who is born alive at any stage of development.
new text end

new text begin (b) As used in this section, the term "born alive," with respect to a member of the
species Homo sapiens, means the complete expulsion or extraction from his or her mother
of that member, at any stage of development, who, after such expulsion or extraction,
breathes or has a beating heart, pulsation of the umbilical cord, or definite movement of
voluntary muscles, regardless of whether the umbilical cord has been cut, and regardless
of whether the expulsion or extraction occurs as a result of a natural or induced labor,
cesarean section, or induced abortion.
new text end

new text begin (c) Nothing in this section shall be construed to affirm, deny, expand, or contract any
legal status or legal right applicable to any member of the species Homo sapiens at any
point prior to being born alive, as defined in this section.
new text end

new text begin (a) Any person upon whom an abortion
has been performed, or the parent or guardian of the mother if the mother is a minor,
and the abortion results in the infant having been born alive, may maintain an action for
death of or injury to the born alive infant against the person who performed the abortion
if the death or injury was a result of simple negligence, gross negligence, wantonness,
willfulness, intentional conduct, or another violation of the legal standard of care.
new text end

new text begin (b) Any responsible medical personnel that does not take all reasonable measures
consistent with good medical practice to preserve the life and health of the born alive
infant, as required by subdivision 1, may be subject to the suspension or revocation of that
person's professional license by the professional board with authority over that person.
Any person who has performed an abortion and against whom judgment has been rendered
pursuant to paragraph (a) shall be subject to an automatic suspension of the person's
professional license for at least one year and said license shall be reinstated only after the
person's professional board requires compliance with this section by all board licensees.
new text end

new text begin (c) Nothing in this subdivision shall be construed to hold the mother of the born alive
infant criminally or civilly liable for the actions of a physician, nurse, or other licensed
health care provider in violation of this section to which the mother did not give her consent.
new text end

new text begin In every civil action
brought under this section, the court shall rule whether the anonymity of any female
upon whom an abortion has been performed or attempted shall be preserved from public
disclosure if she does not give her consent to such disclosure. The court, upon motion or
sua sponte, shall make such a ruling and, upon determining that her anonymity should
be preserved, shall issue orders to the parties, witnesses, and counsel and shall direct the
sealing of the record and exclusion of individuals from courtrooms or hearing rooms to
the extent necessary to safeguard her identity from public disclosure. Each order must be
accompanied by specific written findings explaining why the anonymity of the female
should be preserved from public disclosure, why the order is essential to that end, how the
order is narrowly tailored to serve that interest, and why no reasonable, less restrictive
alternative exists. This section may not be construed to conceal the identity of the plaintiff
or of witnesses from the defendant.
new text end

new text begin Unless the abortion is performed to save the
life of the woman or fetus, or, unless one or both of the parents of the born alive infant
agree within 30 days of the birth to accept the parental rights and responsibilities for the
child, the child shall be an abandoned ward of the state and the parents shall have no
parental rights or obligations as if the parental rights had been terminated pursuant to
section 260C.301. The child shall be provided for pursuant to chapter 256J.
new text end

new text begin This act may be cited as the "Born Alive Infants Protection Act."
new text end

new text begin This section shall be known and may be cited as the
"Prenatal Trisomy Diagnosis Awareness Act."
new text end

new text begin For purposes of this section, the following terms have the
meanings given them:
new text end

new text begin (1) "commissioner" means the commissioner of health;
new text end

new text begin (2) "deliver" means providing information to an expectant parent and, if appropriate,
other family members, in a written format;
new text end

new text begin (3) "health care practitioner" means a medical professional that provides prenatal or
postnatal care and administers or requests administration of a diagnostic or screening test
to a pregnant woman that detects for trisomy conditions; and
new text end

new text begin (4) "trisomy conditions" means trisomy 13, otherwise known as Patau syndrome;
trisomy 18, otherwise known as Edwards syndrome; and trisomy 21, otherwise known
as Down syndrome.
new text end

new text begin A health care practitioner who orders tests
for a pregnant woman to screen for trisomy conditions shall provide the information in
subdivision 4 to the pregnant woman if the test reveals a positive result for any of the
trisomy conditions.
new text end

new text begin (a) The commissioner shall make the following
information available to health care practitioners:
new text end

new text begin (1) up-to-date and evidence-based information about the trisomy conditions that has
been reviewed by medical experts and national trisomy organizations. The information
must be provided in a written or an alternative format and must include the following:
new text end

new text begin (i) expected physical, developmental, educational, and psychosocial outcomes;
new text end

new text begin (ii) life expectancy;
new text end

new text begin (iii) the clinical course description;
new text end

new text begin (iv) expected intellectual and functional development; and
new text end

new text begin (v) treatment options available for the particular syndrome for which the test was
positive; and
new text end

new text begin (2) contact information for nonprofit organizations that provide information and
support services for trisomy conditions.
new text end

new text begin (b) The commissioner shall post the information in paragraph (a) on the Department
of Health Web site.
new text end

new text begin (c) The commissioner shall follow existing department practice to ensure that the
information is culturally and linguistically appropriate for all recipients.
new text end

new text begin (d) Any local or national organization that provides education or services related
to trisomy conditions may request that the commissioner include the organization's
informational material and contact information on the Department of Health Web site.
Once a request is made, the commissioner may add the information to the Web site.
new text end

new text begin This section is effective August 1, 2015.
new text end

Minnesota Statutes 2014, section 145.928, subdivision 13, is amended to read:

new text begin (a) new text end The commissioner shall submit a biennial report
to the legislature on the local community projects, tribal government, and community
health board prevention activities funded under this section. These reports must include
information on grant recipients, activities that were conducted using grant funds,
evaluation data, and outcome measures, if available. These reports are due by January 15
of every other year, beginning in the year 2003.

new text begin (b) The commissioner shall submit an annual report to the chairs and ranking
minority members of the house of representatives and senate committees with jurisdiction
over public health on grants made under subdivision 7 to decrease racial and ethnic
disparities in infant mortality rates. The report must provide specific information on the
amount of each grant awarded to each agency or organization, the population served
by each agency or organization, outcomes of the programs funded by each grant, and
the amount of the appropriation retained by the commissioner for administrative and
associated expenses. The commissioner shall issue a report each January 15 for the
previous fiscal year beginning January 15, 2016.
new text end

new text begin (a) The commissioner of health shall establish the Smile Healthy Minnesota 2016
grant program to provide access to dental care for at-risk children, adolescents, adults,
and seniors in rural areas of Minnesota. The grant is available to nonprofit agencies that
provide mobile dental care through the use of portable dental equipment. To be eligible
for a grant, a provider agency must:
new text end

new text begin (1) encourage early screening and preventative care by providing dental exams for
children one year of age;
new text end

new text begin (2) provide dental services to at-risk children, adolescents, adults, and seniors in
a health professional shortage area as defined under Code of Federal Regulations, title
42, part 5, and United States Code, title 42, section 254E, that is located outside the
seven-county metropolitan area; and
new text end

new text begin (3) provide preventative dental care including fluoride monitoring, screenings, and
minor dental treatment; and general dental care, education, and information.
new text end

new text begin (b) Grantees must report their dental health outcomes to the commissioner by
December 31, 2018.
new text end

new text begin (c) Grant recipients must be organized as a nonprofit entity in Minnesota.
new text end

new text begin (d) A grantee is prohibited from billing for preventative screenings until the
comprehensive oral health services are completed.
new text end

Minnesota Statutes 2014, section 152.34, is amended to read:

deleted text begin Nursingdeleted text end new text begin Health carenew text end facilities licensed under chapter 144A, boarding care homes
licensed under section 144.50, deleted text begin anddeleted text end assisted living facilitiesnew text begin , and facilities owned,
controlled, managed, or under common control with hospitals licensed under chapter 144
new text end may adopt reasonable restrictions on the use of medical cannabis by a patient enrolled in
the registry program who resides at new text begin or is actively receiving treatment or care at new text end the facility.
The restrictions may include a provision that the facility will not store or maintain the
patient's supply of medical cannabis, that the facility is not responsible for providing the
medical cannabis for patients, and that medical cannabis be used only in a place specified
by the facility. Nothing contained in this section shall require the facilities to adopt such
restrictions and no facility shall unreasonably limit a patient's access to or use of medical
cannabis to the extent that use is authorized by the patient under sections 152.22 to 152.37.

Minnesota Statutes 2014, section 157.15, subdivision 8, is amended to read:

"Lodging establishment" meansnew text begin : (1)new text end a building,
structure, enclosure, or any part thereof used as, maintained as, advertised as, or held out to
be a place where sleeping accommodations are furnished to the public as regular roomers,
for periods of one week or more, and having five or more beds to let to the publicdeleted text begin .deleted text end new text begin ; or (2) a
building, structure, or enclosure or any part thereof located within ten miles distance from
a hospital or medical center and maintained as, advertised as, or held out to be a place
where sleeping accommodations are furnished exclusively to patients, their families, and
caregivers while the patient is receiving or waiting to receive health care treatments or
procedures for periods of one week or more, and where no supportive services, as defined
under section 157.17, subdivision 1, paragraph (a), or health supervision services, as
defined under section 157.17, subdivision 1, paragraph (b), or home care services, as
defined under section 144A.471, subdivisions 6 and 7, are provided.
new text end

new text begin This section is effective the day following final enactment.
new text end

Minnesota Statutes 2014, section 256B.0625, subdivision 3b, is amended to
read:

new text begin (a) new text end Medical assistance covers
new text begin medically necessary services and consultations delivered by a licensed health care provider
vianew text end telemedicine deleted text begin 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
consultationdeleted text end new text begin in the same manner as if the service or consultation was delivered in personnew text end .
Coverage is limited to three telemedicine deleted text begin consultationsdeleted text end new text begin servicesnew text end per deleted text begin recipientdeleted text end new text begin enrolleenew text end per
calendar week. Telemedicine deleted text begin consultationsdeleted text end new text begin servicesnew text end shall be paid at the full allowable rate.

new text begin (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:
new text end

new text begin (1) has identified the categories or types of services the health care provider will
provide via telemedicine;
new text end

new text begin (2) has written policies and procedures specific to telemedicine services that are
regularly reviewed and updated;
new text end

new text begin (3) has policies and procedures that adequately address patient safety before, during,
and after the telemedicine service is rendered;
new text end

new text begin (4) has established protocols addressing how and when to discontinue telemedicine
services; and
new text end

new text begin (5) has an established quality assurance process related to telemedicine services.
new text end

new text begin (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, chapter 9505.2175, subparts 1 and 2,
and must document:
new text end

new text begin (1) the type of service provided by telemedicine;
new text end

new text begin (2) the time the service began and the time the service ended, including an a.m. and
p.m. designation;
new text end

new text begin (3) documentation of the licensed health care provider's basis for determining that
telemedicine is an appropriate and effective means for delivering the service to the enrollee;
new text end

new text begin (4) the mode of transmission of the telemedicine service and records evidencing that
a particular mode of transmission was utilized;
new text end

new text begin (5) the location of the originating site and the distant site;
new text end

new text begin (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
new text end

new text begin (7) documentation of compliance with the criteria attested to by the health care
provider in accordance with paragraph (b).
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (f) The criteria described in section 256B.0625, subdivision 3b, paragraph (b), shall
not apply to managed care organizations and county-based purchasing plans, which may
establish criteria as described in section 62A.672, subdivision 1, paragraph (b), clause (2),
for the coverage of telemedicine services.
new text end

new text begin This section is effective January 1, 2017, and applies to
coverage offered, sold, issued, or renewed on or after that date.
new text end

new text begin (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 may include interventions intended to prevent avoidable
ambulance transportation or hospital emergency department use, care coordination,
diagnosis-related patient education, and population-based preventive education.
new text end

new text begin (b) In order to be eligible for payment, services provided by a community medical
response emergency medical technician must be:
new text end

new text begin (1) ordered by a medical response unit medical director;
new text end

new text begin (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
new text end

new text begin (3) billed by an eligible medical assistance-enrolled provider that employs or
contracts with the community medical response emergency medical technician.
new text end

new text begin 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.
new text end

new text begin (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 finance
by February 15, 2016. These services shall not be covered by medical assistance until
legislation providing coverage for the services is enacted in law.
new text end

new text begin If legislation is enacted to cover community advanced 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 finance 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.
new text end

new text begin Funding for state-sponsored health programs shall not
be used for funding abortions, except to the extent necessary for continued participation in
a federal program. This subdivision applies only to state-sponsored health programs that
are administered by the commissioner of human services. For purposes of this section,
abortion has the meaning given in Minnesota Statutes, section 144.343, subdivision 3.
new text end

new text begin If any one or more provision, section, subdivision, sentence,
clause, phrase, or word of this section or the application of it to any person or circumstance
is found to be unconstitutional, it is declared to be severable and the balance of this section
shall remain effective notwithstanding such unconstitutionality. The legislature intends
that it would have passed this section, and each provision, section, subdivision, sentence,
clause, phrase, or word irrespective of the fact that any one provision, section, subdivision,
sentence, clause, phrase, or word is declared unconstitutional.
new text end

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

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

new text begin This section is effective July 1, 2016.
new text end

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

new text begin The commissioner shall conduct background studies of any
individual employed by a county social services agency or by a local welfare agency who
performs child protection duties.
new text end

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

new text begin 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.
new text end

new text begin This section is effective July 1, 2016.
new text end

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

new text begin The commissioner shall recover the cost of background
studies performed on county employees who perform child protective duties 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.
new text end

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

new text begin 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.
new text end

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

new text begin (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.
new text end

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

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

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 assistancenew text begin , group residential housingnew text end ,
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.

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

(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; deleted text begin MinnesotaCare under chapter 256L;deleted text end and
foster care as provided under title IV-E of the Social Security Act.new text begin MinnesotaCare and
plans supplemented by tax credits are not considered public assistance for purposes of
a child support referral.
new text end

(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.

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

(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 assistancedeleted text begin ,
including MinnesotaCare,deleted text end 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 deleted text begin or MinnesotaCaredeleted text end eligibility.

(2) Any medical support arrears that accrue while an individual is receiving public
assistance in the form of medical assistancedeleted text begin , including MinnesotaCare,deleted text end 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 deleted text begin or MinnesotaCaredeleted text end .

(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.

new text begin The
commissioner may award grants to eligible entities for the development, implementation,
and evaluation of activities to address racial disparities and disproportionality in the child
welfare system by:
new text end

new text begin (1) identifying and addressing structural factors that contribute to inequities in
outcomes;
new text end

new text begin (2) identifying and implementing strategies to reduce racial disparities in treatment
and outcomes;
new text end

new text begin (3) using cultural values, beliefs, and practices of families, communities, and tribes
for case planning, service design, and decision-making processes;
new text end

new text begin (4) using placement and reunification strategies to maintain and support relationships
and connections between parents, siblings, children, kin, significant others, and tribes; and
new text end

new text begin (5) supporting families in the context of their communities and tribes to safely divert
them from the child welfare system, whenever possible.
new text end

new text begin The commissioner, in partnership
with the culturally based community organizations; the Indian Affairs Council under
section 3.922; the Council on Affairs of Chicano/Latino People under section 3.9223;
the Council on Black Minnesotans under section 3.9225; the Council on Asian-Pacific
Minnesotans under section 3.9226; the American Indian Child Welfare Advisory Council
under section 260.835; counties; and tribal governments, shall develop and implement a
comprehensive, coordinated plan to award funds under this section for the priority areas
identified in subdivision 1. In developing and implementing this plan, the commissioner
shall consult with the legislative task force on child protection.
new text end

new text begin The commissioner, in consultation with the
community partners listed in subdivision 2 and the legislative task force on child protection,
shall establish measurable outcomes to achieve the goals specified in subdivision 1 and to
determine the effectiveness of the grants and other activities funded under this section in
reducing disparities identified in subdivision 1. The development of measurable outcomes
must be completed before any funds are distributed under this section.
new text end

new text begin (a) The commissioner, in consultation with the community
partners listed in subdivision 2 and the legislative task force on child protection, shall
develop the criteria and procedures to allocate competitive grants under this section. In
developing the criteria, the commissioner shall establish an administrative cost limit for
grant recipients. A county awarded a grant shall not spend more than three percent of the
grant on administrative costs. When a grant is awarded, the commissioner must provide a
grant recipient with information on the outcomes established according to subdivision 3.
new text end

new text begin (b) A grant recipient must coordinate its activities with other entities receiving funds
under this section that are in the grant recipient's service area.
new text end

new text begin (c) Grant funds must not be used to supplant any state or federal funds received
for child welfare services.
new text end

new text begin (a) The commissioner, in consultation with
the legislative task force on child protection, shall award competitive grants to eligible
applicants for local or regional projects and initiatives directed at reducing disparities in
the child welfare system.
new text end

new text begin (b) The commissioner may award up to 20 percent of the funds available as planning
grants. Planning grants must be used to address such areas as community assessment,
coordination activities, and development of community supported strategies.
new text end

new text begin (c) Eligible applicants may include, but are not limited to, faith-based organizations,
social service organizations, community nonprofit organizations, counties, and tribal
governments. Applicants must submit proposals to the commissioner. A proposal must
specify the strategies to be implemented to address one or more of the priority areas in
subdivision 1 and must be targeted to achieve the outcomes established according to
subdivision 3.
new text end

new text begin (d) The commissioner shall give priority to applicants who demonstrate that their
proposed project or initiative:
new text end

new text begin (1) is supported by the community the applicant will serve;
new text end

new text begin (2) is evidence-based;
new text end

new text begin (3) is designed to complement other related community activities;
new text end

new text begin (4) utilizes strategies that positively impact priority areas;
new text end

new text begin (5) reflects culturally appropriate approaches; or
new text end

new text begin (6) will be implemented through or with community-based organizations that reflect
the culture of the population to be reached.
new text end

new text begin (a) Using the outcomes established according to subdivision
3, the commissioner shall conduct a biennial evaluation of the grant program funded under
this section. Grant recipients shall cooperate with the commissioner in the evaluation and
shall provide the commissioner with the information needed to conduct the evaluation.
new text end

new text begin (b) The commissioner shall consult with the legislative task force on child protection
during the evaluation process and shall submit a biennial evaluation report to the task
force and to the chairs and ranking minority members of the house of representatives and
senate committees with jurisdiction over child protection funding.
new text end

new text begin Of the amount appropriated for
purposes of this section, the commissioner shall award $75,000 to each tribe authorized to
provide tribal delivery of child welfare services under section 256.01, subdivision 14b. To
receive funds under this subdivision, a participating tribe is not required to apply to the
commissioner for grant funds. Participating tribes are also eligible for competitive grant
funds under this section.
new text end

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

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

new text begin (b) "Eligible educational institution" means the following:
new text end

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

new text begin (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.
new text end

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

deleted text begin (c)deleted text end new text begin (d)new text end "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.

new text begin (e) new text end new text begin "Financial coach" means a person who:
new text end

new text begin (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;
new text end

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

new text begin (3) provides financial coaching to program participants under subdivision 4a.
new text end

deleted text begin (d)deleted text end new text begin (f)new text end "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.

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

deleted text begin (e)deleted text end new text begin (h)new text end "Permissible use" means:

(1) postsecondary educational expenses at an eligible educational institution as
defined in paragraph deleted text begin (g)deleted text end new text begin (b)new text end , 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.

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

deleted text begin (g) "Eligible educational institution" means the following:
deleted text end

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

deleted text begin (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.
deleted text end

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

new text begin Within available appropriations, a financial coach
shall provide the following to program participants:
new text end

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

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

new text begin (3) financial stability education and training to improve and sustain financial security.
new text end

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

"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. deleted text begin This definition includes foster care
settings or community residential settings for a single adult.deleted text end To receive payment for a
group residence rate, the residence must meet the requirements under section 256I.04,
deleted text begin subdivisiondeleted text end new text begin subdivisionsnew text end 2anew text begin to 2fnew text end .

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

"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 deleted text begin in a GRHdeleted text end new text begin a recipient of group residential housingnew text end , less the
medical assistance personal needs allowancenew text begin under section 256B.35new text end . If the SSI limit
deleted text begin has beendeleted text end new text begin or benefit isnew text end reduced for a person due to events deleted text begin occurring prior to the persons
entering the GRH settingdeleted text end new text begin other than receipt of additional incomenew text end , countable income means
actual income less any applicable exclusions and disregards.

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

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

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

new text begin "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.
new text end

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

new text begin "Long-term homelessness" means lacking a
permanent place to live:
new text end

new text begin (1) continuously for one year or more; or
new text end

new text begin (2) at least four times in the past three years.
new text end

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

new text begin "Professional certification" 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:
new text end

new text begin (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;
new text end

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

new text begin (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
new text end

new text begin (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.
new text end

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

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

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

new text begin "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.
new text end

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

new text begin "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.
new text end

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

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),new text begin clauses (1), (3), (5) to (9), and (14), and paragraph (b), if applicable,new text end 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.

(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 deleted text begin county agency
has developed or approveddeleted text end new text begin individual hasnew text end a deleted text begin plan for the individual which specifies that:
deleted text end

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

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

deleted text begin 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 aidedeleted text end new text begin professional certification under section 256I.03,
subdivision 12new text end .

(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.

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

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

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.

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.

deleted text begin A countydeleted text end new text begin (a) Except
as provided in paragraph (b), annew text end 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; deleted text begin a residential care home;deleted text end 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) deleted text begin a residencedeleted text end 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;new text begin or
new text end

(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 establishmentdeleted text begin ; ordeleted text end new text begin .
new text end

deleted text begin (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.
deleted text end

new text begin (b) new text end The requirements under deleted text begin clauses (1) to (4)deleted text end new text begin paragraph (a)new text end do not apply to
establishments exempt from state licensure because they arenew text begin :
new text end

new text begin (1)new text end located on Indian reservations and subject to tribal health and safety
requirementsdeleted text begin .deleted text end new text begin ; or
new text end

new text begin (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.
new text end

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

new text begin (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:
new text end

new text begin (1) have skills and knowledge acquired through one or more of the following:
new text end

new text begin (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;
new text end

new text begin (ii) one year of experience with the target population served;
new text end

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

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

new text begin (2) hold a current Minnesota driver's license appropriate to the vehicle driven
if transporting recipients;
new text end

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

new text begin (4) complete group residential housing orientation training offered by the
commissioner.
new text end

new text begin (a) new text end Agreements between
deleted text begin countydeleted text end agencies and providers of group residential housing must be in writingnew text begin on a
form developed and approved by the commissionernew text end 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 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.

new text begin (b) Providers are required to verify the following minimum requirements in the
agreement:
new text end

new text begin (1) current license or registration, including authorization if managing or monitoring
medications;
new text end

new text begin (2) all staff who have direct contact with recipients meet the staff qualifications;
new text end

new text begin (3) the provision of group residential housing;
new text end

new text begin (4) the provision of supplementary services, if applicable;
new text end

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

new text begin (6) submission of residency requirements that could result in recipient eviction.
new text end

deleted text begin Group residential housingdeleted text end new text begin (c)new text end Agreements may be terminated with or without cause by
deleted text begin eitherdeleted text end the deleted text begin countydeleted text end new text begin commissioner, the agency,new text end or the provider with two calendar months prior
notice.new text begin The commissioner may immediately terminate an agreement under subdivision 2d.
new text end

deleted text begin Secure crisis shelters
for battered women and their children designated by the Minnesota Department of
Corrections are not group residences under this chapter. deleted text end new text begin (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:
new text end

new text begin (1) controlling individuals as defined in section 245A.02;
new text end

new text begin (2) managerial officials as defined in section 245A.02; and
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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:
new text end

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

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

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

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

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

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

new text begin (3) housekeeping, including cleaning and lavatory supplies or service; and
new text end

new text begin (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.
new text end

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

(a)
deleted text begin Countydeleted text end 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) deleted text begin A countydeleted text end new text begin Annew text end 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 deleted text begin countydeleted text end new text begin agencynew text end to
another can only occur by the agreement of both deleted text begin countiesdeleted text end new text begin agenciesnew text end .

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. deleted text begin 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.
deleted text end

new text begin Subdivision 1, paragraph (b), is effective September 1, 2015.
new text end

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

deleted text begin A countydeleted text end new text begin Annew text end 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) deleted text begin A countydeleted text end new text begin An agencynew text end 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) deleted text begin A countydeleted text end new text begin Annew text end 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. deleted text begin County
deleted text end 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, deleted text begin a countydeleted text end new text begin annew text end 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.

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

deleted text begin On or after July 1,
2005, a countydeleted text end new text begin Annew text end agency may negotiate a supplementary service rate for recipients of
assistance under section 256I.04, subdivision 1, paragraphnew text begin (a) ornew text end (b), who deleted text begin relocate from a
homeless shelter licensed and registered prior to December 31, 1996, by the Minnesota
Department of Health under section 157.17, todeleted text end new text begin have experienced long-term homelessness
and who live innew text end a supportive housing establishment deleted text begin 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 $456.75deleted text end new text begin under
section 256I.04, subdivision 2a, paragraph (b), clause (2)new text end .

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

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 deleted text begin and who does not
expect to receive countable earned income during the month for which the payment is
madedeleted text end . 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. deleted text begin 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.
deleted text end

new text begin This section is effective April 1, 2016.
new text end

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

Recipients must report changes in circumstances that affect
eligibility or group residential housing payment amountsnew text begin , other than changes in earned
income,new text end within ten days of the change. Recipients with countable earned income must
complete a deleted text begin monthlydeleted text end household report formnew text begin at least once every six monthsnew text end . 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.

new text begin This section is effective April 1, 2016.
new text end

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

Thenew text begin agency in thenew text end county in which a deleted text begin group
deleted text end residence is located deleted text begin willdeleted text end new text begin shallnew text end determine the amount of group residential housing rate to
be paid on behalf of an individual in the deleted text begin groupdeleted text end residence regardless of the individual's
deleted text begin countydeleted text end new text begin agencynew text end of financial responsibility.

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

new text begin (a) new text end 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).

new text begin (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.
new text end

new text begin Paragraph (b) is effective April 1, 2016.
new text end

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

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

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

(c) "Homeless youth" means a person deleted text begin 21deleted text end new text begin 24new text end 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 deleted text begin 21deleted text end new text begin 24 new text end 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.

new text begin 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:
new text end

new text begin (1) 25 percent must be distributed on the basis of the number of screened-out
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;
new text end

new text begin (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
new text end

new text begin (3) 50 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.
new text end

new text begin 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.
new text end

new text begin (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).
new text end

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

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

new text begin (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
new text end

new text begin (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.
new text end

new text begin (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.
new text end

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

The Northstar kinship assistance agreement ends upon death or deleted text begin dissolution
deleted text end new text begin incapacity of the relative custodian or modification new text end of new text begin the order for new text end permanent legal and
physical custody deleted text begin 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
individualdeleted text end new text begin in which legal or physical custody is removed from the relative custodiannew text end .
new text begin In the case of a relative custodian's death or incapacity, new text end Northstar kinship assistance
eligibility may be continued according to subdivision 10.

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

(a) deleted text begin Northstar kinship
assistance may be continued with the written consent of the commissioner todeleted text end new text begin 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.
new text end

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

new text begin (1) meet the background study requirements in subdivision 4;
new text end

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

new text begin (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
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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 tonew text end 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.

deleted text begin (b)deleted text end new text begin (e)new text end Temporary assignment of Northstar kinship assistance may be approved
for a maximum of six consecutive months from the death new text begin or incapacity new text end of the relative
custodian or custodians as provided in paragraph (a) and must adhere to the policies deleted text begin anddeleted text end new text begin ,
new text end proceduresnew text begin , requirements, and deadlines under section 256N.28, subdivision 2, that are
new text end 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.

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

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

(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, new text begin in a foster residence setting, new text end 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.

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

(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 2new text begin and
renegotiated under subdivision 3, if applicablenew text end .

(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; deleted text begin and
deleted text end

(8) the effective date of the agreementnew text begin ; and
new text end

new text begin (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 3new text end .

(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.

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

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. deleted text begin The commissioner may transfer funds into the
account if a deficit occurs.
deleted text end

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

new text begin (a) new text end 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 deleted text begin andeleted text end new text begin a temporary or permanent
new text end order is entered granting custody to another, the mother has sole custody.

new text begin (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.
new text end

new text begin (c) new text end The recognition is:

(1) a basis for bringing an action new text begin for the following:
new text end

new text begin (i) new text end to award new text begin temporary custody or parenting time pursuant to section 518.131;
new text end

new text begin (ii) to award permanent new text end custody or parenting time to either parentdeleted text begin ,deleted text end new text begin ;
new text end

new text begin (iii) new text end establishing a child support obligation which may include up to the two years
immediately preceding the commencement of the actiondeleted text begin ,deleted text end new text begin ;
new text end

new text begin (iv)new text end ordering a contribution by a parent under section 256.87deleted text begin , ordeleted text end new text begin ;
new text end

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

new text begin (vi) new text end 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.

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

new text begin (a) new text end 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, deleted text begin anddeleted text end the benefits and responsibilities of establishing paternitynew text begin , and
the limitations of the recognition of parentage for purposes of exercising and enforcing
custody or parenting timenew text end are clear and understandable. deleted text begin 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.
deleted text end

new text begin (b) The form must include the following:
new text end

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

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (4) a notice that the recognition of parentage is a basis for:
new text end

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

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

new text begin (iii) ordering a contribution by a parent under section 256.87;
new text end

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

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

new text begin (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.
new text end

new text begin (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.
new text end

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

(a) Subject to the procedures required by
the commissioner and the provisions of this section, a Minnesota county deleted text begin or tribal social
services agencydeleted text end 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 reimbursenew text begin a Minnesota county or tribal social servicesnew text end placing deleted text begin agenciesdeleted text end new text begin agency
new text end 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.

(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).

(a) A Minnesota county deleted text begin or tribaldeleted text end 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.

(a) A county deleted text begin or tribaldeleted text end 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.

(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.

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.

new text begin (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.
new text end

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

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

"Relative" means a person related to the child by blood,
marriage, or adoptiondeleted text begin ,deleted text end new text begin ; the legal parent, guardian, or custodian of the child's siblings;new text end 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.

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

"Sibling" means one of two or more individuals who have one or
both parents in common through blood, marriage, or adoptiondeleted text begin , includingdeleted text end new text begin . This includes
new text end siblings as defined by the child's tribal code or custom.new text begin 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.
new text end

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

(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 deleted text begin 16deleted text end new text begin 14new text end 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 deleted text begin (11)deleted text end new text begin (12)new text end , 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 deleted text begin 16deleted text end new text begin 14new text end 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, new text begin tribal enrollment identification card, new text end 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.

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

(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. new text begin 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. new text end 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 new text begin adoption as new text end the permanency plan for the childdeleted text begin , including: (i)deleted text end new text begin through
new text end 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); deleted text begin and
deleted text end

deleted text begin (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; deleted text end new text begin (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;
new text end

deleted text begin (7)deleted text end new text begin (8)new text end 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;

deleted text begin (8)deleted text end new text begin (9)new text end 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;

deleted text begin (9)deleted text end new text begin (10)new text end 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;

deleted text begin (10)deleted text end new text begin (11)new text end 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;

deleted text begin (11)deleted text end new text begin (12)new text end an independent living plan for a child age deleted text begin 16deleted text end new text begin 14new text end 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; deleted text begin and
deleted text end

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

new text begin (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
new text end

deleted text begin (12)deleted text end new text begin (13)new text end 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.

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

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

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

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

new text begin 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.
new text end

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

(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 deleted text begin (11)deleted text end new text begin (12)new text end , 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).

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

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 deleted text begin (11)deleted text end new text begin (12)new text end , 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.

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

(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 deleted text begin (b)deleted text end new text begin (c)new text end , clause deleted text begin (11)deleted text end new text begin (12)new text end , 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.

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

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 deleted text begin 12deleted text end new text begin 16 and has been asked about the child's desired
permanency outcomenew text end ;

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

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

(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; deleted text begin and
deleted text end

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

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

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

new text begin (a) new text end 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.

new text begin (b) 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
kinship placement agreement under section 256N.22, subdivision 2, 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 shall
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.
new text end

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

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

(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 deleted text begin 16deleted text end new text begin 14new text end 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 deleted text begin (11)deleted text end new text begin (12)new text end . The court shall use the review
requirements of section 260C.203 in any review conducted under this paragraph.

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

"Obligor" means a person obligated to pay maintenance or
support. deleted text begin 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.deleted text end 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.

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

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 deleted text begin full timedeleted text end new text begin 30 hours per weeknew text end at
deleted text begin 150deleted text end new text begin 100new text end percent of the current federal or state minimum wage, whichever is higher.

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

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 moneynew text begin or medical supportnew text end , 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.

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

new text begin (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:
new text end

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

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

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

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

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

new text begin (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.
new text end

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

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

new text begin (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.
new text end

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

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 deleted text begin or MinnesotaCare under chapter 256Ldeleted text end .new text begin Public coverage
does not include MinnesotaCare or federally tax-subsidized medical plans.
new text end

(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.

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

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 carenew text begin ; or if it meets the minimum essential coverage definition in United States
Code, title 26, section 5000A(f)new text end . 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.

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

(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 deleted text begin schedule for public coveragedeleted text end new text begin scale
for MinnesotaCare under section 256L.15, subdivision 2, paragraph (c)new text end . If the noncustodial
parent's PICS meets the eligibility requirements for deleted text begin public coveragedeleted text end new text begin MinnesotaCarenew text end , 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 deleted text begin for public coveragedeleted text end , the
contribution is the amount of the premium for the highest eligible income on the deleted text begin appropriate
deleted text end premium deleted text begin schedule for public coveragedeleted text end new text begin scale for MinnesotaCare under section 256L.15,
subdivision 2, paragraph (c)new text end . 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 deleted text begin or 256L.deleted text end new text begin ; or
new text end

new text begin (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.
new text end

(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.

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

The public authority must take
necessary steps to establish deleted text begin and enforcedeleted text end new text begin , enforce, and modifynew text end 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.

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

(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 deleted text begin adeleted text end new text begin medicalnew text end support deleted text begin orderdeleted text end under section 518A.39,
subdivision deleted text begin 2deleted text end new text begin 8, unless it meets the presumption in section 518A.39, subdivision 2new text end .

(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.

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

new text begin 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.
new text end

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

(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,
deleted text begin MinnesotaCare,deleted text end 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.

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

new text begin (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:
new text end

new text begin (1) names, addresses, and dates of birth of the parties;
new text end

new text begin (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;
new text end

new text begin (3) a copy of the full support order being modified;
new text end

new text begin (4) names and addresses of the parties' employers;
new text end

new text begin (5) gross income of the parties as stated in the order being modified;
new text end

new text begin (6) health insurance coverage of the parties; and
new text end

new text begin (7) any other information relevant to the determination of the medical support
obligation under section 518A.41.
new text end

new text begin (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:
new text end

new text begin (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;
new text end

new text begin (2) a statement of the amount of medical assistance received by the parties; and
new text end

new text begin (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.
new text end

new text begin 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.
new text end

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

(a) When a recipient of IV-D services is no longer receiving assistance under the
state's title IV-A, IV-E foster care,new text begin ornew text end medical assistancedeleted text begin , or MinnesotaCaredeleted text end 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.

deleted text begin (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.
deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end 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.

deleted text begin (d)deleted text end new text begin (c)new text end 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,new text begin or
new text end medical assistancedeleted text begin , or MinnesotaCaredeleted text end 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.

deleted text begin (e)deleted text end new text begin (d)new text end 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.

deleted text begin (f)deleted text end new text begin (e)new text end 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.

deleted text begin (g)deleted text end new text begin (f)new text end Federal collections fees collected under paragraph deleted text begin (c)deleted text end new text begin (b)new text end and cost recovery
fees collected under paragraphsnew text begin (c) andnew text end (d) deleted text begin and (e)deleted text end 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 deleted text begin (i)deleted text end new text begin (h)new text end . The commissioner of human services must
elect to recover costs based on either actual or standardized costs.

deleted text begin (h)deleted text end new text begin (g)new text end 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.

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

deleted text begin (j)deleted text end new text begin (i)new text end 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.

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

deleted text begin (l)deleted text end new text begin (k)new text end The commissioner of human services shall distribute quarterly any of the
funds dedicated to the counties under paragraphsnew text begin (i) andnew text end (j) deleted text begin and (k)deleted text end 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.

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

(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. deleted text begin 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.
deleted text end

(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.

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

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

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

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

new text begin (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:
new text end

new text begin (1) pay the arrears in full; or
new text end

new text begin (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.
new text end

new text begin (d) If the 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.
new text end

new text begin (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.
new text end

new text begin (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).
new text end

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

(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, deleted text begin the Uniform
Reciprocal Enforcement of Support Act, or the Revised Uniform Reciprocal Enforcement
of Support Act,deleted text end 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.

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

(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 be of
paramount concern. Intervention and prevention efforts shall 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; deleted text begin to require
a family assessment, when appropriate, as the preferred response to reports not alleging
substantial child endangerment;deleted text end

(3) require an investigation when the report allegesnew text begin sexual abuse ornew text end substantial child
endangermentnew text begin , as defined in subdivision 2, paragraph (c)new text end ;

new text begin (4) provide a family assessment when there is no alleged substantial child
endangerment; new text end and

deleted text begin (4)deleted text end new text begin (5)new text end provide protective, family support, and family preservation services when
needed in appropriate cases.

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

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

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

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

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

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

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

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

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

(13) 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 deleted text begin that are done in anger or without regard to the
safety of the childdeleted text end :

(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 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 received by the local welfare agency, police
department, county sheriff, or agency responsible for assessing or investigating
maltreatment pursuant to this section.

(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.

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

(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, deleted text begin upon receiving a report,deleted text end shall
immediately notify the local police department or the county sheriff orally and in writing
new text begin when a report is received, including reports that are not accepted for investigation or
assessmentnew text end . 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 reportdeleted text begin , upon
receiving a report,deleted text end shall immediately notify the local police department or the county
sheriff orally and in writingnew text begin when a report is received, including reports that are not
accepted for investigation or assessmentnew text end .

(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.

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

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

If a local welfare agency receives a report under
subdivision deleted text begin 3deleted text end new text begin 10new text end , paragraph (a) deleted text begin or (b)deleted text end , and fails to notify the local police department or
county sheriff as required by subdivision deleted text begin 3deleted text end new text begin 10new text end , paragraph (a) deleted text begin or (b)deleted text end , 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), 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.

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

(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 deleted text begin assessing ordeleted text end investigating new text begin or assessing new text end the report, or
the local welfare agency.

new text begin (b) The local welfare agency shall immediately notify local law enforcement when a
report is received, including reports that are not accepted for investigation or assessment.
new text end

new text begin (c) new text end The local welfare agency shall determine if the report is accepted for an
deleted text begin assessment ordeleted text end investigation new text begin or assessment new text end as soon as possible but in no event longer
than 24 hours after the report is received.

deleted text begin (b)deleted text end new text begin (d)new text end 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.

deleted text begin (c)deleted text end new text begin (e)new text end 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.

new text begin (f) A local welfare agency or agency responsible for investigating or assessing a
report may use a screened-out report for making an offer of social services to the subjects
of the screened-out report. A local welfare agency or agency responsible for evaluating a
report alleging maltreatment of a child shall consider prior reports, including screened-out
reports, to determine whether an investigation or family assessment must be conducted. A
screened-out report must be maintained in accordance with subdivision 11c, paragraph (a).
new text end

deleted text begin (d)deleted text end new text begin (g)new text end 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.

deleted text begin (e)deleted text end new text begin (h)new text end 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.

deleted text begin (f)deleted text end new text begin (i)new text end 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.

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

new text begin (a) Child protection staff, supervisors,
and others involved in child protection screening shall follow the guidance provided
in the child maltreatment screening guidelines issued by the commissioner of human
services and, when notified by the commissioner, shall immediately implement updated
procedures and protocols.
new text end

new text begin (b) In consultation with the county attorney, the county social service agency may
elect to adopt a standard consistent with state law that permits the county to accept reports
that are not required to be screened in under the child maltreatment screening guidelines.
new text end

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

(a) 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.new text begin The local welfare agency must notify local
law enforcement when a report is received, including reports that are not accepted for
investigation or assessment.new text end The local welfare agency:

(1) shall conduct an investigation on reports involvingnew text begin sexual abuse ornew text end 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 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 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. 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) 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) 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) 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) 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) Before making an order under paragraph (e), 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) 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) 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 agedeleted text begin ,deleted text end new text begin ;new text end prior reports of maltreatment,new text begin including any
maltreatment reports that were screened out and not accepted for assessment or
investigation; new text end information relating to developmental functioningdeleted text begin ,deleted text end new text begin ;new text end credibility of the child's
statementdeleted text begin ,deleted text end new text begin ;new text end 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) 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 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) 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) 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), (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 (k), and subdivision 3d.

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

(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.

deleted text begin (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.
deleted text end

Minnesota Statutes 2014, section 626.556, subdivision 11c, is amended to read:

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) by the responsible authority.

(a) For new text begin reports alleging child maltreatment that were not accepted for assessment
or investigation, new text end family assessment casesnew text begin ,new text end and cases where an investigation results in no
determination of maltreatment or the need for child protective services, the deleted text begin assessment or
investigationdeleted text end records must be maintained for a period of deleted text begin fourdeleted text end new text begin fivenew text end years after the datenew text begin the
report was not accepted for assessment or investigation ornew text end of the final entry in the case
record. new text begin Records of reports that were not accepted must contain sufficient information to
identify the subjects of the report, the nature of the alleged maltreatment, and the reasons
as to why the report was not accepted. new text end Records under this paragraph may not be used for
employment, background checks, or purposes other than to assist in future new text begin screening
decisions and new text end 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), 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.

deleted text begin (e) For reports alleging child maltreatment that were not accepted for assessment
or investigation, counties shall maintain sufficient information to identify repeat reports
alleging maltreatment of the same child or children for 365 days from the date the report
was screened out. The commissioner of human services shall specify to the counties the
minimum information needed to accomplish this purpose. Counties shall enter this data
into the state social services information system.
deleted text end

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

new text begin (a) The commissioner shall develop a plan to perform
quality assurance reviews of local welfare agency screening practices and decisions.
The commissioner shall provide oversight and guidance to counties to ensure consistent
application of screening guidelines, thorough and appropriate screening decisions, and
correct documentation and maintenance of reports. Quality assurance reviews must begin
no later than September 30, 2015.
new text end

new text begin (b) The commissioner shall produce an annual report of the summary results of the
reviews. The report must only contain aggregate data and may not include any data that
could be used to personally identify any subject whose data is included in the report. 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.
new text end

Minnesota Statutes 2014, section 626.559, is amended by adding a subdivision
to read:

new text begin (a) Effective July 1, 2016, all newly employed
county employees who have responsibility for child protective duties are required to
undergo a background study according to the requirements of chapter 245C.
new text end

new text begin (b) No later than August 31, 2016, all county employees who have responsibility
for child protective duties and who were employed prior to July 1, 2016, must undergo a
background study according to the requirements of chapter 245C.
new text end

Laws 2014, chapter 189, section 5, is amended to read:

Minnesota Statutes 2012, section 518C.201, is amended to read:

(a) In a proceeding to establishdeleted text begin ,deleted text end new text begin ornew text end enforcedeleted text begin , or modifydeleted text end 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.

Laws 2014, chapter 189, section 10, is amended to read:

Minnesota Statutes 2012, section 518C.206, is amended to read:

(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 deleted text begin this chapter or a law
substantially similar to this chapterdeleted text end new text begin the Uniform Interstate Family Support Actnew text end ; 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 continuingdeleted text begin , exclusivedeleted text end jurisdiction over a support
order may act as a responding tribunal to enforce the order.

Laws 2014, chapter 189, section 11, is amended to read:

Minnesota Statutes 2012, section 518C.207, is amended to read:

(a) If a proceeding is brought under this chapter and only one tribunal has issued a
child support order, the order of that tribunal deleted text begin is controllingdeleted text end new text begin controlsnew text end 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 deleted text begin is controllingdeleted text end new text begin controlsnew text end .

(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.

Laws 2014, chapter 189, section 16, is amended to read:

Minnesota Statutes 2012, section 518C.301, is amended to read:

(a) Except as otherwise provided in this chapter, sections 518C.301 to 518C.319
apply to all proceedings under this chapter.

deleted text begin (b) This chapter provides for the following proceedings:
deleted text end

deleted text begin (1) establishment of an order for spousal support or child support pursuant to
section 518C.401;
deleted text end

deleted text begin (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;
deleted text end

deleted text begin (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;
deleted text end

deleted text begin (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;
deleted text end

deleted text begin (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;
deleted text end

deleted text begin (6) determination of parentage of a child pursuant to section 518C.701; and
deleted text end

deleted text begin (7) assertion of jurisdiction over nonresidents pursuant to sections 518C.201 and
518C.202.
deleted text end

deleted text begin (c)deleted text end new text begin (b)new text end 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.

Laws 2014, chapter 189, section 17, is amended to read:

Minnesota Statutes 2012, section 518C.303, is amended to read:

Except as otherwise provided by this chapter, a responding tribunal of this state shall:

(1) apply the procedural and substantive lawdeleted text begin , including the rules on choice of law,
deleted text end 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.

Laws 2014, chapter 189, section 18, is amended to read:

Minnesota Statutes 2012, section 518C.304, is amended to read:

(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, new text begin upon request new text end 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.

Laws 2014, chapter 189, section 19, is amended to read:

Minnesota Statutes 2012, section 518C.305, is amended to read:

(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 deleted text begin (c)
deleted text end new text begin (b)new text end , 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 deleted text begin otherwise authorized bydeleted text end new text begin not
prohibited by othernew text end 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.

Laws 2014, chapter 189, section 23, is amended to read:

Minnesota Statutes 2012, section 518C.310, is amended to read:

(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 new text begin names and addresses of new text end 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.

Laws 2014, chapter 189, section 24, is amended to read:

Minnesota Statutes 2012, section 518C.311, is amended to read:

(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 obligeenew text begin or parent and alleged parentnew text end , and the name, sex, residential address, Social
Security number, and date of birth of each child for whom support is sought or whose
deleted text begin parenthooddeleted text end new text begin parentagenew text end is to be determined. new text begin Unless filed at the time of registration, new text end the
petition must be accompanied by a deleted text begin certifieddeleted text end copy of any support order deleted text begin in effectdeleted text end new text begin known
to have been issued by another tribunalnew text end . 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.

Laws 2014, chapter 189, section 27, is amended to read:

Minnesota Statutes 2012, section 518C.314, is amended to read:

(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 new text begin physically
new text end present in this state to participate in the proceeding.

Laws 2014, chapter 189, section 28, is amended to read:

Minnesota Statutes 2012, section 518C.316, is amended to read:

(a) The physical presence of deleted text begin the petitionerdeleted text end new text begin a nonresident party who is an individual
new text end in a deleted text begin respondingdeleted text end 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) deleted text begin A verified petition,deleted text end new text begin Annew text end affidavit, new text begin a new text end document substantially complying with
federally mandated forms, deleted text begin anddeleted text end new text begin ornew text end 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 deleted text begin oathdeleted text end new text begin penalty of perjurynew text end 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.

Laws 2014, chapter 189, section 29, is amended to read:

Minnesota Statutes 2012, section 518C.317, is amended to read:

A tribunal of this state may communicate with a tribunal outside this state in
deleted text begin writing, by e-mail, ordeleted text end new text begin a record, ornew text end by telephonenew text begin , electronic mail,new text end 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.

Laws 2014, chapter 189, section 31, is amended to read:

Minnesota Statutes 2012, section 518C.319, is amended to read:

(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, deleted text begin notdeleted text end new text begin nornew text end 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.

Laws 2014, chapter 189, section 43, is amended to read:

Minnesota Statutes 2012, section 518C.604, is amended to read:

(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 arrearagesnew text begin under a registered support ordernew text end , 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.

Laws 2014, chapter 189, section 50, is amended to read:

Minnesota Statutes 2012, section 518C.611, is amended to read:

(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 deleted text begin writtendeleted text end consents in a record in the issuing tribunal for a tribunal of this state to
modify the support order and assume continuing, exclusive jurisdiction deleted text begin over the orderdeleted text end .

(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 new text begin by a tribunal of this state new text end 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 deleted text begin (d)deleted text end new text begin (e)new text end 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.

Laws 2014, chapter 189, section 51, is amended to read:

Minnesota Statutes 2012, section 518C.612, is amended to read:

If a child support order issued by a tribunal of this state is modified by a tribunal of
another state which assumed jurisdiction deleted text begin according to this chapter or a law substantially
similar to this chapterdeleted text end new text begin pursuant to the Uniform Interstate Family Support Act,new text end 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.

Laws 2014, chapter 189, section 73, is amended to read:

This act deleted text begin becomesdeleted text end new text begin isnew text end effective deleted text begin 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 Lawdeleted text end new text begin July 1, 2015new text end .

new text begin This section is effective July 1, 2015.
new text end

new text begin (a) A child support work group is established to review the parenting expense
adjustment in Minnesota Statutes, section 518A.36, and to identify and recommend
changes to the parenting expense adjustment.
new text end

new text begin (b) Members of the work group shall include:
new text end

new text begin (1) two members of the house of representatives, one appointed by the speaker of the
house and one appointed by the minority leader;
new text end

new text begin (2) two members of the senate, one appointed by the majority leader and one
appointed by the minority leader;
new text end

new text begin (3) the commissioner of human services or a designee;
new text end

new text begin (4) one staff member from the Child Support Division of the Department of Human
Services, appointed by the commissioner;
new text end

new text begin (5) one representative of the Minnesota State Bar Association, Family Law section,
appointed by the section;
new text end

new text begin (6) one representative of the Minnesota County Attorney's Association, appointed
by the association;
new text end

new text begin (7) one representative of the Minnesota Legal Services Coalition, appointed by
the coalition;
new text end

new text begin (8) one representative of the Minnesota Family Support and Recovery Council,
appointed by the council; and
new text end

new text begin (9) two representatives from parent advocacy groups, one representing custodial
parents and one representing noncustodial parents, appointed by the commissioner of
human services.
new text end

new text begin The commissioner, or the commissioner's designee, shall appoint the work group chair.
new text end

new text begin (c) The work group shall be authorized to retain the services of an economist to help
create an equitable parenting expense adjustment formula. The work group may hire an
economist by use of a sole-source contract.
new text end

new text begin (d) The work group shall issue a report to the chairs and ranking minority members
of the legislative committees with jurisdiction over civil law, judiciary, and health and
human services by January 15, 2016. The report must include recommendations for
changes to the computation of child support and recommendations on the composition
of a permanent child support task force.
new text end

new text begin (e) Terms, compensation, and removal of members and the filling of vacancies are
governed by Minnesota Statutes, section 15.059.
new text end

new text begin (f) The work group expires January 16, 2016.
new text end

new text begin (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
screened-out reports when determining whether a new report will be screened out or will
be accepted for investigation or assessment. 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 must consult with county attorneys while developing the updated guidelines.
new text end

new text begin (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.
new text end

new text begin (c) Agency staff must implement the guidelines on October 1, 2015.
new text end

new text begin (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.
new text end

new text begin (c) Agency staff must implement the guidelines by October 1, 2015.
new text end

new text begin The commissioner shall establish requirements for competency-based initial
training, support, and continuing education for child protection supervisors. This includes
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.
new text end

new text begin The commissioner of human services shall evaluate the formulas in Minnesota
Statutes, section 256M.41, and recommend an updated equitable distribution formula
beginning in fiscal year 2018, for funding child protection staffing and expanded services
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.
new text end

new text begin (a) A legislative task force is created to:
new text end

new text begin (1) review the efforts being made to implement the recommendations of the
Governor's Task Force on the Protection of Children;
new text end

new text begin (2) expand the efforts into related areas of the child welfare system;
new text end

new text begin (3) work with the commissioner and community partners to establish and evaluate
child protection grants to address disparities in child welfare pursuant to Minnesota
Statutes, section 256E.28; and
new text end

new text begin (4) identify additional areas within the child welfare system that need to be addressed
by the legislature.
new text end

new text begin (b) The four legislative members of the governor's task force shall be the members
of the legislative task force. They may appoint up to eight legislators as ex officio
members of the task force.
new text end

new text begin (c) The task force may provide oversight and monitoring of:
new text end

new text begin (1) the efforts by the Department of Human Services, counties, and tribes to
implement laws related to child protection;
new text end

new text begin (2) efforts by the Department of Human Services, counties, and tribes to implement
the recommendations of the Governor's Task Force on the Protection of Children;
new text end

new text begin (3) efforts by agencies, including but not limited to the Minnesota Department
of Education, the Minnesota Housing Finance Agency, the Minnesota Department of
Corrections, and the Minnesota Department of Public Safety, to work with the Department
of Human Services to assure safety and well-being for children at risk of harm or children
in the child welfare system;
new text end

new text begin (4) efforts by the Department of Human Services, other agencies, counties, and
tribes to implement best practices to ensure every child is protected from maltreatment
and neglect and to ensure every child has the opportunity for healthy development.
new text end

new text begin (d) The task force, in cooperation with the commissioner of human services, shall
issue a report to the legislature and governor February 1, 2016, and February 1, 2017.
The report must contain information on the progress toward implementation of changes
to the child protection system; recommendations for additional legislative changes and
procedures affecting child protection and child welfare; and funding needs to implement
recommended changes.
new text end

new text begin (e) The task force shall convene upon enactment of this act and shall continue until
the last day of the 2017 legislative session.
new text end

Minnesota Statutes 2014, section 13.46, subdivision 2, is amended to read:

(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; new text begin coordinate services for an individual or
family; new text end 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; deleted text begin or
deleted text end

(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 lawdeleted text begin .deleted text end new text begin ; or
new text end

new text begin (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, if the patient has provided annual consent, consistent
with section 144.293, subdivisions 2 and 4.
new text end

(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.

Minnesota Statutes 2014, section 13.46, subdivision 7, is amended to read:

(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; deleted text begin or
deleted text end

(4) new text begin 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, if
the patient has provided annual consent, consistent with section 144.293, subdivisions
2 and 4;
new text end

new text begin (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, if the patient has provided annual consent, consistent with
section 144.293, subdivisions 2 and 4; or
new text end

new text begin (6) new text end 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.

Minnesota Statutes 2014, section 62Q.55, subdivision 3, is amended to read:

As used in this section, "emergency services" means,
with respect to an emergency medical condition:

(1) a medical screening examination, as required under section 1867 of the Social
Security Act, that is within the capability of the emergency department of a hospital,
including ancillary services routinely available to the emergency department to evaluate
such emergency medical condition; deleted text begin and
deleted text end

(2) within the capabilities of the staff and facilities available at the hospital, such
further medical examination and treatment as are required under section 1867 of the Social
Security Act to stabilize the patientnew text begin ; and
new text end

new text begin (3) emergency services as defined in sections 245.462, subdivision 11, and 245.4871,
subdivision 14new text end .

Minnesota Statutes 2014, section 144.293, subdivision 5, is amended to read:

This section does not prohibit the
release of health records:

(1) for a medical emergency when the provider is unable to obtain the patient's
consent due to the patient's condition or the nature of the medical emergency;

(2) to other providers within related health care entities when necessary for the
current treatment of the patient; deleted text begin or
deleted text end

(i) is returning to the health care facility and unable to provide consent; or

(ii) who resides in the health care facility, has services provided by an outside
resource under Code of Federal Regulations, title 42, section 483.75(h), and is unable to
provide consentdeleted text begin .deleted text end new text begin ; or
new text end

new text begin (4) to a program in the welfare system, as defined in section 13.46, upon written
documentation that access to the data is necessary to coordinate services for an individual
who is receiving services from the welfare system.
new text end

Minnesota Statutes 2014, section 145.56, subdivision 2, is amended to read:

To the extent funds are appropriated for the
purposes of this subdivision, the commissioner shall establish a grant program to fund:

(1) community-based programs to provide education, outreach, and advocacy
services to populations who may be at risk for suicide;

(2) community-based programs that educate community helpers and gatekeepers,
such as family members, spiritual leaders, coaches, and business owners, employers, and
coworkers on how to prevent suicide by encouraging help-seeking behaviors;

(3) community-based programs that educate populations at risk for suicide and
community helpers and gatekeepers that must include information on the symptoms
of depression and other psychiatric illnesses, the warning signs of suicide, skills for
preventing suicides, and making or seeking effective referrals to intervention and
community resources; deleted text begin and
deleted text end

(4) community-based programs to provide evidence-based suicide prevention and
intervention education to school staff, parents, and students in grades kindergarten through
12, and for students attending Minnesota colleges and universitiesnew text begin ;
new text end

new text begin (5) community-based programs to provide evidence-based suicide prevention and
intervention to public school nurses, teachers, administrators, coaches, school social
workers, peace officers, firefighters, emergency medical technicians, advanced emergency
medical technicians, paramedics, primary care providers, and others; and
new text end

new text begin (6) community-based, evidence-based postvention training to mental health
professionals and practitioners in order to provide technical assistance to communities
after a suicide and to prevent suicide clusters and contagionnew text end .

Minnesota Statutes 2014, section 145.56, subdivision 4, is amended to read:

new text begin (a) new text end The commissioner shall
coordinate with federal, regional, local, and other state agencies to collect, analyze, and
annually issue a public report on Minnesota-specific data on suicide and suicidal behaviors.

new text begin (b) The commissioner, in consultation with stakeholders, shall submit a detailed
plan identifying proposed methods to improve the timeliness, usefulness, and quality of
suicide-related data so that the data can help identify the scope of the suicide problem,
identify high-risk groups, set priority prevention activities, and monitor the effects of
suicide prevention programs. The report shall include how to improve external cause
of injury coding, progress on implementing the Minnesota Violent Death Reporting
System, how to obtain and release data in a timely manner, and how to support the use of
psychological autopsies.
new text end

new text begin (c) The written report must be provided to the chairs and ranking minority members
of the house of representatives and senate finance and policy divisions and committees
with jurisdiction over health and human services by February 1, 2016.
new text end

Minnesota Statutes 2014, section 245.467, subdivision 6, is amended to read:

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; deleted text begin and
deleted text end

(2) staff who provide treatment services or case management and their clinical
supervisorsdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (3) personnel of the welfare system or health care providers who have access to the
data under section 13.46, subdivision 7.
new text end

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.

new text begin Only persons acting consistent with section 13.05 may enter, update, or access mental
health data on individuals submitted under subdivisions 4 and 5. The ability of authorized
persons 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 person, and the statutory
authorization that grants access for that purpose. For data submitted under subdivisions 4
and 5 and stored in an information system not operated by a state agency, all queries and
all actions in which records are viewed, accessed, accepted, or exited must be recorded in
a data audit trail. Data contained in the audit trail are public data, to the extent that the
data are not otherwise classified by law. The authorization of any person determined to
have willfully entered, updated, accessed, shared, or disseminated data in violation of this
section, or any other provision of law, must be immediately revoked and investigated. If a
person is determined to have willfully gained access to data without explicit authorization,
the person is subject to civil and criminal liability under sections 13.08 and 13.09.
new text end

Minnesota Statutes 2014, section 245.4876, subdivision 7, is amended to read:

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; deleted text begin and
deleted text end

(2) staff who provide treatment services or case management and their clinical
supervisorsdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (3) personnel of the welfare system or health care providers who have access to the
data under section 13.46, subdivision 7.
new text end

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.

new text begin Only persons acting consistent with section 13.05 may enter, update, or access mental
health data on individuals submitted under subdivisions 5 and 6. The ability of authorized
persons 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 person, and the statutory
authorization that grants access for that purpose. For data submitted under subdivisions 5
and 6 and stored in an information system not operated by a state agency, all queries and
all actions in which records are viewed, accessed, accepted, or exited must be recorded in
a data audit trail. Data contained in the audit trail are public data, to the extent that the
data are not otherwise classified by law. The authorization of any person determined to
have willfully entered, updated, accessed, shared, or disseminated data in violation of this
section, or any other provision of law, must be immediately revoked and investigated. If a
person is determined to have willfully gained access to data without explicit authorization,
the person is subject to civil and criminal liability under sections 13.08 and 13.09.
new text end

new text begin The
commissioner may develop and execute projects to reform the mental health system by
participating in the Excellence in Mental Health demonstration project.
new text end

new text begin The commissioner may 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 3.
new text end

new text begin (a) The commissioner may establish standards for
state certification of a clinic as a certified community behavioral health clinic, 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:
new text end

new text begin (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;
new text end

new text begin (2) clinic services are available and accessible and crisis management services
are available 24 hours per day;
new text end

new text begin (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;
new text end

new text begin (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; and
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin In developing the projects under subdivision 3, the
commissioner shall consult with mental health providers, advocacy organizations, licensed
mental health professionals, and Minnesota health care program enrollees who receive
mental health services and their families.
new text end

new text begin The commissioner and the state chief
information officer shall provide information systems support to the projects as necessary
to comply with federal requirements.
new text end

Minnesota Statutes 2014, section 256B.0625, is amended by adding a
subdivision to read:

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (c) The commissioner shall develop admissions and discharge procedures and
establish rates consistent with guidelines from the federal Centers for Medicare and
Medicaid Services.
new text end

new text begin (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.
new text end

new text begin This section is effective July 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.
new text end

new text begin 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 2.5 percent over
the rates in effect on January 1, 2014, for vendors who meet the requirements of section
254B.05.
new text end

new text begin The commissioner of human services, in consultation with members of the
Minnesota State Substance Abuse Strategy and representatives of counties, tribes, health
plan companies, and chemical dependency treatment providers, shall develop performance
measures to assess the outcomes of chemical dependency treatment services. The
commissioner shall report these performance measures to the members of the health and
human services policy and finance committees in the house of representatives and senate
on or before January 15, 2016.
new text end

new text begin 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 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.
new text end

new text begin 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 3.
new text end

new text begin The commissioner of human services, in consultation with stakeholders, may
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 may
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.
new text end

new text begin (a) The commissioner shall fund special projects to:
new text end

new text begin (1) provide intensive treatment and supports to adolescents and young adults 26
years of age and younger who are experiencing their first psychotic or manic episode; and
new text end

new text begin (2) conduct outreach, training, and guidance, in the project's region, to mental health
and health care professionals, including postsecondary health clinics, on early psychosis
symptoms, screening tools, and best practices.
new text end

new text begin (b) Intensive treatment and supports includes medication management,
psychoeducation for the individual and family, care coordination, employment supports,
education supports, cognitive behavioral approaches, cognitive remediation, social skills
training, peer support, crisis planning, and stress management.
new text end

new text begin The commissioner of human services shall, in consultation with stakeholders, develop
recommendations on funding for children's mental health crisis residential services that will
allow for timely access without requiring county authorization or child welfare placement.
new text end

new text begin The commissioner of human services shall increase access to mental health crisis
services for children and adults. In order to increase access, the commissioner must:
new text end

new text begin (1) develop a central phone number where calls can be routed to the appropriate
crisis services;
new text end

new text begin (2) provide telephone consultation 24 hours a day to mobile crisis teams who are
serving people with traumatic brain injury or intellectual disabilities who are experiencing
a mental health crisis;
new text end

new text begin (3) expand crisis services across the state, including rural areas of the state and
examining access per population;
new text end

new text begin (4) establish and implement state standards for crisis services; and
new text end

new text begin (5) provide grants to adult mental health initiatives, counties, tribes, or community
mental health providers to establish new mental health crisis residential service capacity.
new text end

new text begin Priority will be given to regions that do not have a mental health crisis residential
services program, do not have an inpatient psychiatric unit within the region, do not have
an inpatient psychiatric unit within 90 miles, or have a demonstrated need based on the
number of crisis residential or intensive residential treatment beds available to meet the
needs of the residents in the region. At least 50 percent of the funds must be distributed to
programs in rural Minnesota. Grant funds may be used for start-up costs, including but not
limited to renovations, furnishings, and staff training. Grant applications shall provide
details on how the intended service will address identified needs and shall demonstrate
collaboration with crisis teams, other mental health providers, hospitals, and police.
new text end

new text begin (a) To the extent funds are appropriated for the purposes of this section, the
commissioner of human services shall establish a grant for Beltrami County to fund the
planning and development of a comprehensive mental health center for individuals who
are under arrest or subject to arrest, individuals who are experiencing a mental health
crisis, or individuals who are under a transport hold under Minnesota Statutes, section
253B.05, subdivision 2, in Beltrami County and northwestern Minnesota. The program
must be a sustainable, integrated care model for the provision of mental health and
substance use disorder treatment for the population served 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.
new text end

new text begin (b) The program shall maintain data on the extent to which the center reduces
incarceration and hospitalization rates for individuals with mental illness or co-occurring
disorders, and the extent to which the center impacts service utilization for these
individuals. In order to have the capacity to be replicated in other areas of the state, the
center must report outcomes to the commissioner, at a time and in a manner determined
by the commissioner. The commissioner shall use the data to evaluate the effect the
program has on incarceration rates and services utilization, and report to the chairs and
ranking minority members of the senate and house of representatives committees having
jurisdiction over health and human services and corrections issues every two years,
beginning February 1, 2017.
new text end

new text begin (c) The commissioner shall encourage the commissioners of the Minnesota Housing
Finance Agency, corrections, and health to provide technical assistance and support to this
program. The commissioner, together with the commissioner of health, shall determine
the most appropriate model for licensure of the proposed services and which agency
will regulate the services of the center. The commissioners of the Minnesota Housing
Finance Agency and human services shall work with the center to provide short-term
and long-term housing for individuals served by the center within the limits of existing
appropriations available for low-income housing or homelessness.
new text end

new text begin (a) The commissioner of human services shall issue a report to the chairs and
ranking minority members of the house and senate committees with jurisdiction over
health and human services programs that contains recommendations on the intensive
community rehabilitation services program, including options for sustainable funding
models. The report shall:
new text end

new text begin (1) analyze how the intensive community rehabilitation services program provides
needed mental health services and supports that are not currently covered by medical
assistance;
new text end

new text begin (2) identify similar program models that are used in other states to fill similar service
gaps and the program funding sources used by those states;
new text end

new text begin (3) analyze how the intensive community rehabilitation services model differs
between rural and metro areas;
new text end

new text begin (4) make recommendations for expanding services; and
new text end

new text begin (5) analyze potential sources for sustainable funding, including inclusion as a
medical assistance benefit.
new text end

new text begin (b) The commissioner shall include stakeholders in developing recommendations
and developing the legislative report. The commissioner shall submit the report no later
than January 15, 2016.
new text end

new text begin The commissioner shall collaborate with the Minnesota State Colleges and
Universities system to identify coursework to fulfill the peer specialist training
requirements. In addition, the commissioner shall provide outreach to community mental
health providers to increase their knowledge on how peer specialists can be utilized, best
practices on hiring peer specialists, how peer specialist activities can be billed, and the
benefits of hiring peer specialists.
new text end

new text begin The commissioner shall determine the number of individuals who were determined
to be ineligible to receive community first services and supports because they did not
require constant supervision and cuing in order to accomplish activities of daily living.
The commissioner shall issue a report with these findings to the chairs and ranking
minority members of the house and senate committees with jurisdiction over human
services programs.
new text end

Minnesota Statutes 2014, section 43A.241, is amended to read:

(a) This section applies to a person who:

(1) was employed by the commissioner of the Department of Corrections deleted text begin 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;deleted text end new text begin or by the Department
of Human Services;
new text end

(2) new text begin 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;
new text end

new text begin (3) while employed under clause (1), new text end was assaulted by deleted text begin an inmate at a state institution
under control of the commissioner of the Department of Corrections; anddeleted text end new text begin :
new text end

new text begin (i) a person under correctional supervision for a criminal offense; or
new text end

new text begin (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
new text end

deleted text begin (3)deleted text end new text begin (4) as a direct result of the assault under clause (3), new text end was determined to be totally
and permanently 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 new text begin or the commissioner of the Department of Human Services new text end must continue
to make the employer contribution for deleted text begin hospital,deleted text end medicaldeleted text begin ,deleted text end 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.

new text begin 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.
new text end

Minnesota Statutes 2014, section 253B.18, subdivision 4c, is amended to read:

(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) new text begin 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.
new text end

new text begin (c) new text end 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.

Minnesota Statutes 2014, section 253B.18, subdivision 5, is amended to read:

(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. new text begin 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. new text end 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.

new text begin The commissioner of human services shall not close, or otherwise terminate services
at, the Community Addiction Recovery Enterprise program located in Fergus Falls earlier
than July 1, 2019.
new text end

new text begin The commissioner of human services shall not close, or otherwise terminate services
at, the Child and Adolescent Behavioral Health Services program in Willmar without
legislative approval.
new text end

new text begin 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.
new text end

new text begin The terms used in this chapter have the meanings given
them in this section.
new text end

new text begin "Administration of medications" means
performing a task to provide medications to a patient, and includes the following tasks
performed in the following order:
new text end

new text begin (1) checking the patient's medication record;
new text end

new text begin (2) preparing the medication for administration;
new text end

new text begin (3) administering the medication to the patient;
new text end

new text begin (4) documenting administration of the medication or the reason for not administering
the medication as prescribed; and
new text end

new text begin (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.
new text end

new text begin "Alcohol and drug counselor" means an
individual qualified under Minnesota Rules, part 9530.6450, subpart 5.
new text end

new text begin "Applicant" means an individual, partnership, voluntary
association, corporation, or other public or private organization that submits an application
for licensure under this chapter.
new text end

new text begin "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.
new text end

new text begin "Chemical" means alcohol, solvents, controlled substances as
defined in section 152.01, subdivision 4, and other mood-altering substances.
new text end

new text begin "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.
An individual who meets the qualification requirements of a medical director 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.
new text end

new text begin "Commissioner" means the commissioner of human
services or the commissioner's designated representative.
new text end

new text begin "Department" means the Department of Human Services.
new text end

new text begin "Direct patient contact" has the meaning given
for "direct contact" in section 245C.02, subdivision 11.
new text end

new text begin "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.
new text end

new text begin "Licensed practitioner" means a practitioner as
defined in section 151.01, subdivision 23, who is authorized to prescribe.
new text end

new text begin "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.
new text end

new text begin "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.
new text end

new text begin "Nurse" means a person licensed and currently registered to
practice practical or professional nursing as defined in section 148.171, subdivisions
14 and 15.
new text end

new text begin "Patient" means an individual who presents or is presented for
admission to a withdrawal management program that meets the criteria in section 245F.05.
new text end

new text begin "Peer recovery support services"
means mentoring and education, advocacy, and nonclinical recovery support provided
by a recovery peer.
new text end

new text begin "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.
new text end

new text begin "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:
new text end

new text begin (1) seclusion, which means the temporary placement of a patient, without the
patient's consent, in an environment to prevent social contact; and
new text end

new text begin (2) physical restraint, which means the restraint of a patient by use of physical holds
intended to limit movement of the body.
new text end

new text begin "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.
new text end

new text begin "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.
new text end

new text begin "Substance" means "chemical" as defined in subdivision 6.
new text end

new text begin "Substance use disorder" means a pattern of
substance use as defined in the current edition of the Diagnostic and Statistical Manual of
Mental Disorders.
new text end

new text begin "Technician" means a person who meets the qualifications in
section 245F.15, subdivision 6.
new text end

new text begin "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.
new text end

new text begin (a) This chapter establishes minimum standards for withdrawal management
programs licensed by the commissioner that serve one or more unrelated persons.
new text end

new text begin (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.
new text end

new text begin 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, chapter 4665.
new text end

new text begin Prior to the issuance of a license, an applicant
must submit, on forms provided by the commissioner, documentation demonstrating
the following:
new text end

new text begin (1) compliance with this section;
new text end

new text begin (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;
new text end

new text begin (3) completion of an assessment of need for a new or expanded program as required
by Minnesota Rules, part 9530.6800; and
new text end

new text begin (4) insurance coverage, including bonding, sufficient to cover all patient funds,
property, and interests.
new text end

new text begin (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:
new text end

new text begin (1) a change in the Department of Health's licensure of the program;
new text end

new text begin (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;
new text end

new text begin (3) a change in program capacity; or
new text end

new text begin (4) a change in location.
new text end

new text begin (b) A license holder must notify the commissioner and apply for a new license
when a change in program ownership occurs.
new text end

new text begin The commissioner may grant variances to the requirements of
this chapter under section 245A.04, subdivision 9.
new text end

new text begin 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.
new text end

new text begin 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:
new text end

new text begin (1) are impaired as the result of intoxication;
new text end

new text begin (2) are experiencing physical, mental, or emotional problems due to intoxication or
withdrawal from alcohol or other drugs;
new text end

new text begin (3) are being held under apprehend and hold orders under section 253B.07,
subdivision 2b;
new text end

new text begin (4) have been committed under chapter 253B and need temporary placement;
new text end

new text begin (5) are held under emergency holds or peace and health officer holds under section
253B.05, subdivision 1 or 2; or
new text end

new text begin (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.
new text end

new text begin (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:
new text end

new text begin (1) individuals whose pregnancy, in combination with their presenting problem,
requires services not provided by the program; and
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin 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:
new text end

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (3) procedures staff must follow when discharging a patient under each of the
following circumstances:
new text end

new text begin (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;
new text end

new text begin (ii) the patient is in imminent danger of harming self or others and is beyond the
license holder's capacity to ensure safety;
new text end

new text begin (iii) the patient was admitted under chapter 253B; or
new text end

new text begin (iv) the patient is leaving against staff or medical advice; and
new text end

new text begin (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.
new text end

new text begin 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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin 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:
new text end

new text begin (1) identify medical needs and goals to be achieved while the patient is receiving
services;
new text end

new text begin (2) specify stabilization services to address the identified medical needs and goals,
including amount and frequency of services;
new text end

new text begin (3) specify the participation of others in the stabilization planning process and
specific services where appropriated; and
new text end

new text begin (4) document the patient's participation in developing the content of the stabilization
plan and any updates.
new text end

new text begin 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:
new text end

new text begin (1) include documentation of the patient's involvement in the stabilization services,
including the type and amount of each stabilization service;
new text end

new text begin (2) include the monitoring and observations of the patient's medical needs;
new text end

new text begin (3) include documentation of referrals made to other services or agencies;
new text end

new text begin (4) specify the participation of others; and
new text end

new text begin (5) be legible, signed, and dated by the staff person completing the documentation.
new text end

new text begin 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:
new text end

new text begin (1) referrals made to other services or agencies at the time of transition;
new text end

new text begin (2) the patient's plan for follow-up, aftercare, or other poststabilization services;
new text end

new text begin (3) documentation of the patient's participation in the development of the transition
plan;
new text end

new text begin (4) any service that will continue after discharge under the direction of the license
holder; and
new text end

new text begin (5) a stabilization summary and final evaluation of the patient's progress toward
treatment objectives.
new text end

new text begin 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 rationale is documented:
new text end

new text begin (1) individual or group motivational counseling sessions;
new text end

new text begin (2) individual advocacy and case management services;
new text end

new text begin (3) medical services as required in section 245F.12;
new text end

new text begin (4) care coordination provided according to subdivision 2;
new text end

new text begin (5) peer recovery support services provided according to subdivision 3;
new text end

new text begin (6) patient education provided according to subdivision 4; and
new text end

new text begin (7) referrals to mutual aid, self-help, and support groups.
new text end

new text begin 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:
new text end

new text begin (1) coordination with significant others to assist in the stabilization planning process
whenever possible;
new text end

new text begin (2) coordination with and follow-up to appropriate medical services as identified by
the nurse or licensed practitioner;
new text end

new text begin (3) referral to substance use disorder services as indicated by the comprehensive
assessment;
new text end

new text begin (4) referral to mental health services as identified in the comprehensive assessment;
new text end

new text begin (5) referrals to economic assistance, social services, and prenatal care in accordance
with the patient's needs;
new text end

new text begin (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;
new text end

new text begin (7) documentation of the provision of care coordination services in the patient's
file; and
new text end

new text begin (8) addressing cultural and socioeconomic factors affecting the patient's access to
services.
new text end

new text begin (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.
new text end

new text begin (b) Peer recovery support services are provided by a recovery peer and must be
supervised by the responsible staff person.
new text end

new text begin A license holder must provide education to each
patient on the following:
new text end

new text begin (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;
new text end

new text begin (2) tuberculosis and reporting known cases of tuberculosis disease to health care
authorities according to section 144.4804;
new text end

new text begin (3) Hepatitis C treatment and prevention;
new text end

new text begin (4) HIV as required in section 245A.19, paragraphs (b) and (c);
new text end

new text begin (5) nicotine cessation options, if applicable;
new text end

new text begin (6) opioid tolerance and overdose risks, if applicable; and
new text end

new text begin (7) long-term withdrawal issues related to use of barbiturates and benzodiazepines,
if applicable.
new text end

new text begin 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.
new text end

new text begin (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.
new text end

new text begin (b) Protective procedures may not be used:
new text end

new text begin (1) for disciplinary purposes;
new text end

new text begin (2) to enforce program rules;
new text end

new text begin (3) for the convenience of staff;
new text end

new text begin (4) as a part of any patient's health monitoring plan; or
new text end

new text begin (5) for any reason except in response to specific, current behaviors which create an
imminent danger of harm to the patient or others.
new text end

new text begin 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:
new text end

new text begin (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;
new text end

new text begin (2) which protective procedures the license holder will use to prevent patients from
imminent danger of harming self or others;
new text end

new text begin (3) the emergency conditions under which the protective procedures are permitted
to be used, if any;
new text end

new text begin (4) the patient's health conditions that limit the specific procedures that may be used
and alternative means of ensuring safety;
new text end

new text begin (5) emergency resources the program staff must contact when a patient's behavior
cannot be controlled by the procedures established in the policy;
new text end

new text begin (6) the training that staff must have before using any protective procedure;
new text end

new text begin (7) documentation of approved therapeutic holds;
new text end

new text begin (8) the use of law enforcement personnel as described in subdivision 4;
new text end

new text begin (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:
new text end

new text begin (i) seclusion must be employed solely for the purpose of preventing a patient from
imminent danger of harming self or others;
new text end

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (iv) patients must not be placed in seclusion for more than 12 hours at any one time;
new text end

new text begin (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;
new text end

new text begin (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
new text end

new text begin (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
new text end

new text begin (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:
new text end

new text begin (i) physical holds must be employed solely for preventing a patient from imminent
danger of harming self or others;
new text end

new text begin (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;
new text end

new text begin (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
new text end

new text begin (iv) only approved holds may be utilized. Prone holds are not allowed and must
not be authorized.
new text end

new text begin Each use of a protective procedure must be documented in the
patient record. The patient record must include:
new text end

new text begin (1) a description of specific patient behavior precipitating a decision to use a
protective procedure, including date, time, and program staff present;
new text end

new text begin (2) the specific means used to limit the patient's behavior;
new text end

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (7) a description of the physical holds used in escorting a patient; and
new text end

new text begin (8) any injury to the patient that occurred during the use of a protective procedure.
new text end

new text begin The program must maintain a central log
documenting each incident involving use of law enforcement, including:
new text end

new text begin (1) the date and time law enforcement arrived at and left the program;
new text end

new text begin (2) the reason for the use of law enforcement;
new text end

new text begin (3) if law enforcement used force or a protective procedure and which protective
procedure was used; and
new text end

new text begin (4) whether any injuries occurred.
new text end

new text begin (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:
new text end

new text begin (1) the required documentation was recorded for each use of a protective procedure;
new text end

new text begin (2) the protective procedure was used according to the policy and procedures;
new text end

new text begin (3) the staff who implemented the protective procedure was properly trained; and
new text end

new text begin (4) the behavior met the standards for imminent danger of harming self or others.
new text end

new text begin (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:
new text end

new text begin (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;
new text end

new text begin (2) any injuries resulting from the use of protective procedures;
new text end

new text begin (3) whether law enforcement was involved in the use of a protective procedure;
new text end

new text begin (4) actions needed to correct deficiencies in the program's implementation of
protective procedures;
new text end

new text begin (5) an assessment of opportunities missed to avoid the use of protective procedures;
and
new text end

new text begin (6) proposed actions to be taken to minimize the use of protective procedures.
new text end

new text begin 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.
new text end

new text begin Upon admission, the license holder must explain
the grievance procedure to the patient or patient's representative. 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:
new text end

new text begin (1) staff assistance in developing and processing the grievance;
new text end

new text begin (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
new text end

new text begin (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.
new text end

new text begin A license holder must meet the requirements for handling patient funds and property
in section 245A.04, subdivision 13, except:
new text end

new text begin (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;
new text end

new text begin (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
new text end

new text begin (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:
new text end

new text begin (i) drugs, drug paraphernalia, and drug containers that are forfeited under section
609.5316 must be destroyed by staff or given over to the custody of a local law
enforcement agency, according to Code of Federal Regulations, title 42, sections 2.1 to
2.67, and title 45, parts 160 to 164; and
new text end

new text begin (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.
new text end

new text begin Withdrawal management
programs must have:
new text end

new text begin (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
new text end

new text begin (2) written procedures for a nurse to assess and monitor patient health within the
nurse's scope of practice. The procedures must:
new text end

new text begin (i) be approved by the medical director;
new text end

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (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
new text end

new text begin (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.
new text end

new text begin In addition to the
services listed in subdivision 1, clinically managed programs must:
new text end

new text begin (1) have a licensed practical nurse on site 24 hours a day and a medical director;
new text end

new text begin (2) provide an initial health assessment conducted by a nurse upon admission;
new text end

new text begin (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;
new text end

new text begin (4) have an individual who meets the qualification requirements of a medical director
available by telephone or in person for consultation 24 hours a day; and
new text end

new text begin (5) have appropriately licensed staff available to administer medications according
to prescriber-approved orders.
new text end

new text begin 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:
new text end

new text begin (1) an initial health assessment conducted by a registered nurse upon admission;
new text end

new text begin (2) the availability of a medical evaluation and consultation with a registered nurse
24 hours a day;
new text end

new text begin (3) the availability of a licensed professional who meets the qualification requirements
of a medical director by telephone or in person for consultation 24 hours a day;
new text end

new text begin (4) the ability to be seen within 24 hours or sooner by an individual who meets the
qualification requirements of a medical director if the initial health assessment indicates
the need to be seen;
new text end

new text begin (5) the availability of on-site monitoring of patient care seven days a week by an
individual who meets the qualification requirements of a medical director; and
new text end

new text begin (6) appropriately licensed staff available to administer medications according to
prescriber-approved orders.
new text end

new text begin 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:
new text end

new text begin (1) a provision that patients may carry emergency medication such as nitroglycerin
as instructed by their prescriber;
new text end

new text begin (2) requirements for recording the patient's use of medication, including staff
signatures with date and time;
new text end

new text begin (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
new text end

new text begin (4) procedures for acceptance, documentation, and implementation of prescriptions,
whether written, oral, telephonic, or electronic.
new text end

new text begin 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:
new text end

new text begin (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;
new text end

new text begin (2) a system for accounting for all scheduled drugs each shift;
new text end

new text begin (3) a procedure for recording a patient's use of medication, including staff signatures
with time and date;
new text end

new text begin (4) a procedure for destruction of discontinued, outdated, or deteriorated medications;
new text end

new text begin (5) a statement that only authorized personnel are permitted to have access to the
keys to the locked drug compartments; and
new text end

new text begin (6) a statement that no legend drug supply for one patient may be given to another
patient.
new text end

new text begin 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.
new text end

new text begin 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.
new text end

new text begin 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.
new text end

new text begin 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:
new text end

new text begin (1) establishing and implementing procedures for the provision of nursing care and
delegated medical care, including:
new text end

new text begin (i) a health monitoring plan;
new text end

new text begin (ii) a medication control plan;
new text end

new text begin (iii) training and competency evaluations for staff performing delegated medical and
nursing functions;
new text end

new text begin (iv) handling serious illness, accident, or injury to patients;
new text end

new text begin (v) an infection control program; and
new text end

new text begin (vi) a first aid kit;
new text end

new text begin (2) delegating nursing functions to other staff consistent with their education,
competence, and legal authorization;
new text end

new text begin (3) assigning, supervising, and evaluating the performance of nursing tasks; and
new text end

new text begin (4) implementing condition-specific protocols in compliance with section 151.37,
subdivision 2.
new text end

new text begin 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:
new text end

new text begin (1) admission, discharge, and transfer criteria and procedures;
new text end

new text begin (2) a health services plan;
new text end

new text begin (3) physical indicators for a referral to a physician, registered nurse, or hospital, and
procedures for referral;
new text end

new text begin (4) procedures to follow in case of accident, injury, or death of a patient;
new text end

new text begin (5) formulation of condition-specific protocols regarding the medications that
require a withdrawal regimen that will be administered to patients;
new text end

new text begin (6) an infection control program;
new text end

new text begin (7) protective procedures; and
new text end

new text begin (8) a medication control plan.
new text end

new text begin A withdrawal management program must
provide one full-time equivalent alcohol and drug counselor for every 16 patients served
by the program.
new text end

new text begin 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.
new text end

new text begin (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).
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin 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.
new text end

new text begin A program director must:
new text end

new text begin (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;
new text end

new text begin (2) have a baccalaureate degree or three years of work experience in administration
or personnel supervision in human services; and
new text end

new text begin (3) know and understand the implications of this chapter and chapters 245A and
245C, and sections 253B.04, 253B.05, 626.556, 626.557, and 626.5572.
new text end

new text begin An alcohol and drug
counselor must meet the requirements in Minnesota Rules, part 9530.6450, subpart 5.
new text end

new text begin Each responsible staff person
must know and understand the implications 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 practiced 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.
new text end

new text begin A technician employed by a program must
demonstrate competency, prior to direct patient contact, in the following areas:
new text end

new text begin (1) knowledge of the client bill of rights in section 148F.165 and staff responsibilities
in sections 144.651 and 253B.03;
new text end

new text begin (2) knowledge of and the ability to perform basic health screening procedures with
intoxicated patients that consist of:
new text end

new text begin (i) blood pressure, pulse, temperature, and respiration readings;
new text end

new text begin (ii) interviewing to obtain relevant medical history and current health complaints; and
new text end

new text begin (iii) visual observation of a patient's health status, including monitoring a patient's
behavior as it relates to health status;
new text end

new text begin (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
new text end

new text begin (4) knowledge of and ability to perform basic activities of daily living and personal
hygiene.
new text end

new text begin Recovery peers must:
new text end

new text begin (1) be at least 21 years of age and have a high school diploma or its equivalent;
new text end

new text begin (2) have a minimum of one year in recovery from substance use disorder;
new text end

new text begin (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
new text end

new text begin (4) receive supervision in areas specific to the domains of their role by qualified
supervisory staff.
new text end

new text begin A license holder must have a written policy
addressing personal relationships between patients and staff who have direct patient
contact. The policy must:
new text end

new text begin (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;
new text end

new text begin (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
new text end

new text begin (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.
new text end

new text begin A license holder must have written personnel
policies and must make them available to staff members at all times. The personnel
policies must:
new text end

new text begin (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;
new text end

new text begin (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;
new text end

new text begin (3) provide for written job performance evaluations for staff members of the license
holder at least annually;
new text end

new text begin (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:
new text end

new text begin (i) receiving treatment for substance use disorder within the period specified for the
position in the staff qualification requirements;
new text end

new text begin (ii) substance use that has a negative impact on the staff member's job performance;
new text end

new text begin (iii) substance use that affects the credibility of treatment services with patients,
referral sources, or other members of the community; and
new text end

new text begin (iv) symptoms of intoxication or withdrawal on the job;
new text end

new text begin (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;
new text end

new text begin (6) include a chart or description of organizational structure indicating the lines
of authority and responsibilities;
new text end

new text begin (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
new text end

new text begin (8) include a policy on the confidentiality of patient information.
new text end

new text begin (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.
new text end

new text begin (b) Within 72 hours of beginning employment, all staff having direct patient contact
must be provided orientation on the following:
new text end

new text begin (1) specific license holder and staff responsibilities for patient confidentiality;
new text end

new text begin (2) standards governing the use of protective procedures;
new text end

new text begin (3) patient ethical boundaries and patient rights, including the rights of patients
admitted under chapter 253B;
new text end

new text begin (4) infection control procedures;
new text end

new text begin (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;
new text end

new text begin (6) HIV minimum standards as required in section 245A.19;
new text end

new text begin (7) motivational counseling techniques and identifying stages of change; and
new text end

new text begin (8) eight hours of training on the program's protective procedures policy required in
section 245F.09, including:
new text end

new text begin (i) approved therapeutic holds;
new text end

new text begin (ii) protective procedures used to prevent patients from imminent danger of harming
self or others;
new text end

new text begin (iii) the emergency conditions under which the protective procedures may be used, if
any;
new text end

new text begin (iv) documentation standards for using protective procedures;
new text end

new text begin (v) how to monitor and respond to patient distress; and
new text end

new text begin (vi) person-centered planning and trauma-informed care.
new text end

new text begin (c) All staff having direct patient contact must be provided annual training on the
following:
new text end

new text begin (1) infection control procedures;
new text end

new text begin (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;
new text end

new text begin (3) HIV minimum standards as required in section 245A.19; and
new text end

new text begin (4) motivational counseling techniques and identifying stages of change.
new text end

new text begin (d) All staff having direct patient contact must be provided training every two
years on the following:
new text end

new text begin (1) specific license holder and staff responsibilities for patient confidentiality;
new text end

new text begin (2) standards governing use of protective procedures, including:
new text end

new text begin (i) approved therapeutic holds;
new text end

new text begin (ii) protective procedures used to prevent patients from imminent danger of harming
self or others;
new text end

new text begin (iii) the emergency conditions under which the protective procedures may be used, if
any;
new text end

new text begin (iv) documentation standards for using protective procedures;
new text end

new text begin (v) how to monitor and respond to patient distress; and
new text end

new text begin (vi) person-centered planning and trauma-informed care; and
new text end

new text begin (3) patient ethical boundaries and patient rights, including the rights of patients
admitted under chapter 253B.
new text end

new text begin (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.
new text end

new text begin 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:
new text end

new text begin (1) a description of patient education services as required in section 245F.06;
new text end

new text begin (2) personnel policies that comply with section 245F.16;
new text end

new text begin (3) admission information and referral and discharge policies that comply with
section 245F.05;
new text end

new text begin (4) a health monitoring plan that complies with section 245F.12;
new text end

new text begin (5) a protective procedures policy that complies with section 245F.09, if the program
elects to use protective procedures;
new text end

new text begin (6) policies and procedures for assuring appropriate patient-to-staff ratios that
comply with section 245F.14;
new text end

new text begin (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;
new text end

new text begin (8) procedures for mandatory reporting as required by sections 245A.65, 626.556,
and 626.557;
new text end

new text begin (9) a medication control plan that complies with section 245F.13; and
new text end

new text begin (10) policies and procedures regarding HIV that meet the minimum standards
under section 245A.19.
new text end

new text begin 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.
new text end

Minnesota Statutes 2014, section 146B.01, subdivision 28, is amended to
read:

"Supervision" means the physical presence of a technician
licensed under this chapter while a body art procedure is being performeddeleted text begin .deleted text end new text begin and includes:
new text end

new text begin (1) direct supervision, which means the constant physical presence of a technician
licensed under this chapter within five feet and the line of sight of the temporary technician
who is performing a body art procedure; and
new text end

new text begin (2) indirect supervision, which means the constant physical presence of a technician
licensed under this chapter in the establishment while a body art procedure is being
performed by a temporary technician.
new text end

Minnesota Statutes 2014, section 146B.03, subdivision 4, is amended to read:

new text begin (a) new text end An applicant for licensure under this section
shall submit to the commissioner on a form provided by the commissioner:

(1) proof that the applicant is over the age of 18;

(2) the type of license the applicant is applying for;

(3) all fees required under section 146B.10;

(4) proof of completing a minimum of 200 hours of supervised experience within
each area for which the applicant is seeking a license, and must include an affidavit from
the supervising licensed technician;

(5) proof of having satisfactorily completed coursework within the year preceding
application and approved by the commissioner on bloodborne pathogens, the prevention
of disease transmission, infection control, and aseptic technique. Courses to be considered
for approval by the commissioner may include, but are not limited to, those administered
by one of the following:

(i) the American Red Cross;

(ii) United States Occupational Safety and Health Administration (OSHA); or

(iii) the Alliance of Professional Tattooists; and

(6) any other relevant information requested by the commissioner.

new text begin The licensure requirements of this paragraph are effective for all applicants for new
licenses issued before January 1, 2016.
new text end

new text begin (b) An applicant for licensure under this section shall submit to the commissioner
on a form provided by the commissioner:
new text end

new text begin (1) proof that the applicant is over the age of 18;
new text end

new text begin (2) the type of license the applicant is applying for;
new text end

new text begin (3) all fees required under section 146B.10;
new text end

new text begin (4) a log showing completion of the supervised experience as specified in
subdivision 12;
new text end

new text begin (5) a signed affidavit from each licensed technician who the applicant listed as
providing supervision for each required activity;
new text end

new text begin (6) proof of having satisfactorily completed a minimum of five hours of coursework,
within the year preceding application and approved by the commissioner, on bloodborne
pathogens, the prevention of disease transmission, infection control, and aseptic technique.
Courses to be considered for approval by the commissioner may include, but are not
limited to, those administered by one of the following:
new text end

new text begin (i) the American Red Cross;
new text end

new text begin (ii) the United States Occupational Safety and Health Administration (OSHA); or
new text end

new text begin (iii) the Alliance of Professional Tattooists; and
new text end

new text begin (7) any other relevant information requested by the commissioner.
new text end

new text begin The licensure requirements of this paragraph shall be effective for all applicants for new
licenses issued on or after January 1, 2016.
new text end

Minnesota Statutes 2014, section 146B.03, subdivision 6, is amended to read:

(a) A technician's license is valid for two
years from the date of issuance and may be renewed upon payment of the renewal fee
established under section 146B.10.

(b) At renewal, a licensee must submit proof of continuing education approved by
the commissioner in the areas identified in subdivision 4, new text begin paragraph (b), new text end clause deleted text begin (5)deleted text end new text begin (6)new text end .

new text begin (c) The commissioner shall notify the technician of the pending expiration of a
technician license at least 90 days prior to license expiration.
new text end

Minnesota Statutes 2014, section 146B.03, is amended by adding a subdivision
to read:

new text begin An applicant for a body art technician
license shall complete the following minimum supervised experience for licensure:
new text end

new text begin (1) an applicant for a tattoo technician license or a dual body art technician license
must complete a minimum of 200 hours of tattoo experience under supervision; and
new text end

new text begin (2) an applicant for a body piercing technician license or a dual body art technician
license must perform 250 body piercings under direct supervision and 250 body piercings
under indirect supervision.
new text end

Minnesota Statutes 2014, section 146B.07, subdivision 1, is amended to read:

(a) A technician shall require proof of agenew text begin from clients
who state they are 18 years of age or oldernew text end before performing any body art procedure on a
client. Proof of age must be established by one of the following methods:

(1) a valid driver's license or identification card issued by the state of Minnesota or
another state that includes a photograph and date of birth of the individual;

(2) a valid military identification card issued by the United States Department of
Defense;

(3) a valid passport;

(4) a resident alien card; or

(5) a tribal identification card.

(b) Before performing any body art procedure, the technician must provide the client
with a disclosure and authorization form that indicates whether the client has:

(1) diabetes;

(2) a history of hemophilia;

(3) a history of skin diseases, skin lesions, or skin sensitivities to soap or disinfectants;

(4) a history of epilepsy, seizures, fainting, or narcolepsy;

(5) any condition that requires the client to take medications such as anticoagulants
that thin the blood or interfere with blood clotting; or

(6) any other information that would aid the technician in the body art procedure
process evaluation.

(c) The form must include a statement informing the client that the technician shall
not perform a body art procedure if the client fails to complete or sign the disclosure and
authorization form, and the technician may decline to perform a body art procedure if the
client has any identified health conditions.

(d) The technician shall ask the client to sign and date the disclosure and
authorization form confirming that the information listed on the form is accurate.

(e) Before performing any body art procedure, the technician shall offer and make
available to the client personal draping, as appropriate.

Minnesota Statutes 2014, section 146B.07, subdivision 2, is amended to read:

(a) A technician may
perform body piercings on an individual under the age of 18 deleted text begin ifdeleted text end new text begin when:
new text end

new text begin (1) new text end the individual's parent or legal guardian is present deleted text begin anddeleted text end new text begin ;
new text end

new text begin (2) the parent or legal guardian provides personal identification as provided in
subdivision 1, paragraph (a), clauses (1) to (5);
new text end

new text begin (3) the individual under age 18 provides proof of identification and age as provided
in subdivision 1, paragraph (a), clauses (1) to (5), by a current student identification,
or by another method that includes a photograph and the name of the individual from
an official source;
new text end

new text begin (4) the parent or legal guardian provides other documentation to reasonably establish
that the individual is the parent or the legal guardian of the individual under age 18 who is
seeking a body piercing;
new text end

new text begin (5) new text end a consent form and the authorization form under subdivision 1, paragraph (b) is
signed by the parent or legal guardian in the presence of the techniciandeleted text begin ,deleted text end new text begin ;new text end and

new text begin (6)new text end the piercing is not prohibited under paragraph (c).

(b) No technician shall tattoo any individual under the age of 18 regardless of
parental or guardian consent.

(c) No nipple or genital piercing, branding, scarification, suspension, subdermal
implantation, microdermal, or tongue bifurcation shall be performed by any technician on
any individual under the age of 18 regardless of parental or guardian consent.

(d) No technician shall perform body art procedures on any individual who appears
to be under the influence of alcohol, controlled substances as defined in section 152.01,
subdivision 4, or hazardous substances as defined in rules adopted under chapter 182.

(e) No technician shall perform body art procedures while under the influence of
alcohol, controlled substances as defined under section 152.01, subdivision 4, or hazardous
substances as defined in the rules adopted under chapter 182.

(f) No technician shall administer anesthetic injections or other medications.

Minnesota Statutes 2014, section 147.091, subdivision 1, is amended to read:

The board may refuse to grant a license, may
refuse to grant registration to perform interstate telemedicine services, or may impose
disciplinary action as described in section 147.141 against any physician. The following
conduct is prohibited and is grounds for disciplinary action:

(a) Failure to demonstrate the qualifications or satisfy the requirements for a license
contained in this chapter or rules of the board. The burden of proof shall be upon the
applicant to demonstrate such qualifications or satisfaction of such requirements.

(b) Obtaining a license by fraud or cheating, or attempting to subvert the licensing
examination process. Conduct which subverts or attempts to subvert the licensing
examination process includes, but is not limited to: (1) conduct which violates the
security of the examination materials, such as removing examination materials from the
examination room or having unauthorized possession of any portion of a future, current, or
previously administered licensing examination; (2) conduct which violates the standard of
test administration, such as communicating with another examinee during administration
of the examination, copying another examinee's answers, permitting another examinee
to copy one's answers, or possessing unauthorized materials; or (3) impersonating an
examinee or permitting an impersonator to take the examination on one's own behalf.

(c) Conviction, during the previous five years, of a felony reasonably related to the
practice of medicine or osteopathy. Conviction as used in this subdivision shall include
a conviction of an offense which if committed in this state would be deemed a felony
without regard to its designation elsewhere, or a criminal proceeding where a finding or
verdict of guilt is made or returned but the adjudication of guilt is either withheld or
not entered thereon.

(d) Revocation, suspension, restriction, limitation, or other disciplinary action
against the person's medical license in another state or jurisdiction, failure to report to the
board that charges regarding the person's license have been brought in another state or
jurisdiction, or having been refused a license by any other state or jurisdiction.

(e) Advertising which is false or misleading, which violates any rule of the board,
or which claims without substantiation the positive cure of any disease, or professional
superiority to or greater skill than that possessed by another physician.

(f) Violating a rule promulgated by the board or an order of the board, a state, or
federal law which relates to the practice of medicine, or in part regulates the practice of
medicine including without limitation sections 604.201, 609.344, and 609.345, or a state
or federal narcotics or controlled substance law.

(g) Engaging in any unethical conduct; conduct likely to deceive, defraud, or harm
the public, or demonstrating a willful or careless disregard for the health, welfare or safety
of a patient; or medical practice which is professionally incompetent, in that it may create
unnecessary danger to any patient's life, health, or safety, in any of which cases, proof
of actual injury need not be established.

(h) Failure to supervise a physician assistant or failure to supervise a physician
under any agreement with the board.

(i) Aiding or abetting an unlicensed person in the practice of medicine, except that
it is not a violation of this paragraph for a physician to employ, supervise, or delegate
functions to a qualified person who may or may not be required to obtain a license or
registration to provide health services if that person is practicing within the scope of that
person's license or registration or delegated authority.

(j) Adjudication as mentally incompetent, mentally ill or developmentally disabled,
or as a chemically dependent person, a person dangerous to the public, a sexually
dangerous person, or a person who has a sexual psychopathic personality by a court of
competent jurisdiction, within or without this state. Such adjudication shall automatically
suspend a license for the duration thereof unless the board orders otherwise.

(k) Engaging in unprofessional conduct. Unprofessional conduct shall include
any departure from or the failure to conform to the minimal standards of acceptable
and prevailing medical practice in which proceeding actual injury to a patient need not
be established.

(l) Inability to practice medicine with reasonable skill and safety to patients by
reason of illness, drunkenness, use of drugs, narcotics, chemicals or any other type of
material or as a result of any mental or physical condition, including deterioration through
the aging process or loss of motor skills.

(m) Revealing a privileged communication from or relating to a patient except when
otherwise required or permitted by law.

(n) Failure by a doctor of osteopathy to identify the school of healing in the
professional use of the doctor's name by one of the following terms: osteopathic physician
and surgeon, doctor of osteopathy, or D.O.

(o) Improper management of medical records, including failure to maintain adequate
medical records, to comply with a patient's request made pursuant to sections 144.291 to
144.298 or to furnish a medical record or report required by law.

(p) Fee splitting, including without limitation:

(1) paying, offering to pay, receiving, or agreeing to receive, a commission, rebate,
or remuneration, directly or indirectly, primarily for the referral of patients or the
prescription of drugs or devices;

(2) dividing fees with another physician or a professional corporation, unless the
division is in proportion to the services provided and the responsibility assumed by each
professional and the physician has disclosed the terms of the division;

(3) referring a patient to any health care provider as defined in sections 144.291 to
144.298 in which the referring physician has a "financial or economic interest," as defined
in section 144.6521, subdivision 3, unless the physician has disclosed the physician's
financial or economic interest in accordance with section 144.6521; and

(4) dispensing for profit any drug or device, unless the physician has disclosed the
physician's own profit interest.

The physician must make the disclosures required in this clause in advance and in writing
to the patient and must include in the disclosure a statement that the patient is free to
choose a different health care provider. This clause does not apply to the distribution
of revenues from a partnership, group practice, nonprofit corporation, or professional
corporation to its partners, shareholders, members, or employees if the revenues consist
only of fees for services performed by the physician or under a physician's direct
supervision, or to the division or distribution of prepaid or capitated health care premiums,
or fee-for-service withhold amounts paid under contracts established under other state law.

(q) Engaging in abusive or fraudulent billing practices, including violations of the
federal Medicare and Medicaid laws or state medical assistance laws.

(r) Becoming addicted or habituated to a drug or intoxicant.

(s) Prescribing a drug or device for other than medically accepted therapeutic or
experimental or investigative purposes authorized by a state or federal agency or referring
a patient to any health care provider as defined in sections 144.291 to 144.298 for services
or tests not medically indicated at the time of referral.

(t) Engaging in conduct with a patient which is sexual or may reasonably be
interpreted by the patient as sexual, or in any verbal behavior which is seductive or
sexually demeaning to a patient.

(u) Failure to make reports as required by section 147.111 or to cooperate with an
investigation of the board as required by section 147.131.

(v) Knowingly providing false or misleading information that is directly related
to the care of that patient unless done for an accepted therapeutic purpose such as the
administration of a placebo.

(w) Aiding suicide or aiding attempted suicide in violation of section 609.215 as
established by any of the following:

(1) a copy of the record of criminal conviction or plea of guilty for a felony in
violation of section 609.215, subdivision 1 or 2;

(2) a copy of the record of a judgment of contempt of court for violating an
injunction issued under section 609.215, subdivision 4;

(3) a copy of the record of a judgment assessing damages under section 609.215,
subdivision 5; or

(4) a finding by the board that the person violated section 609.215, subdivision
1 or 2. The board shall investigate any complaint of a violation of section 609.215,
subdivision 1 or 2.

(x) Practice of a board-regulated profession under lapsed or nonrenewed credentials.

deleted text begin (y) Failure to repay a state or federally secured student loan in accordance with
the provisions of the loan.
deleted text end

deleted text begin (z)deleted text end new text begin (y)new text end Providing interstate telemedicine services other than according to section
147.032.

Minnesota Statutes 2014, section 148.271, is amended to read:

The provisions of sections 148.171 to 148.285 shall not prohibit:

(1) The furnishing of nursing assistance in an emergency.

(2) The practice of advanced practice, professional, or practical nursing by any
legally qualified advanced practice, registered, or licensed practical nurse of another state
who is employed by the United States government or any bureau, division, or agency
thereof while in the discharge of official duties.

(3) The practice of any profession or occupation licensed by the state, other than
advanced practice, professional, or practical nursing, by any person duly licensed to
practice the profession or occupation, or the performance by a person of any acts properly
coming within the scope of the profession, occupation, or license.

(4) The provision of a nursing or nursing-related service by an unlicensed assistive
person who has been delegated or assigned the specific function and is supervised by a
registered nurse or monitored by a licensed practical nurse.

(5) The care of the sick with or without compensation when done in a nursing home
covered by the provisions of section 144A.09, subdivision 1.

(6) Professional nursing practice or advanced practice registered nursing practice by
a registered nurse or practical nursing practice by a licensed practical nurse licensed in
another state or territory who is in Minnesota as a student enrolled in a formal, structured
course of study, such as a course leading to a higher degree, certification in a nursing
specialty, or to enhance skills in a clinical field, while the student is practicing in the course.

(7) Professional or practical nursing practice by a student practicing under the
supervision of an instructor while the student is enrolled in a nursing program approved by
the board under section 148.251.

(8) Advanced practice registered nursing as defined in section 148.171, subdivisions
5, 10, 11, 13, and 21, by a registered nurse who is licensed and currently registered in
Minnesota or another United States jurisdiction and who is enrolled as a student in a
formal graduate education program leading to eligibility for certification and licensure
as an advanced practice registered nurse.

new text begin (9) Professional nursing practice or advanced practice registered nursing practice by
a registered nurse or advanced practice registered nurse licensed in another state, territory,
or jurisdiction who is in Minnesota temporarily:
new text end

new text begin (i) providing continuing or in-service education;
new text end

new text begin (ii) serving as a guest lecturer;
new text end

new text begin (iii) presenting at a conference; or
new text end

new text begin (iv) teaching didactic content via distance education to a student located in
Minnesota who is enrolled in a formal, structured course of study, such as a course leading
to a higher degree or certification in a nursing specialty.
new text end

Minnesota Statutes 2014, section 148.52, is amended to read:

The Board of Optometry shall consist of two public members as defined by section
214.02 and five deleted text begin qualifieddeleted text end new text begin Minnesota licensednew text end optometrists appointed by the governor.
Membership terms, compensation of members, removal of members, the filling of
membership vacancies, and fiscal year and reporting requirements shall be as provided in
sections 214.07 to 214.09.

The provision of staff, administrative services and office space; the review and
processing of complaints; the setting of board fees; and other provisions relating to board
operations shall be as provided in chapter 214.

Minnesota Statutes 2014, section 148.54, is amended to read:

The Board of Optometry shall elect from among its members a presidentnew text begin , vice
president, and secretarynew text end and may adopt a seal.

Minnesota Statutes 2014, section 148.57, subdivision 1, is amended to read:

(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 deleted text begin in an amount of $87deleted text end new text begin established by the board, not to exceed the amount specified in
section 148.59new text end . 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 deleted text begin 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 refundeddeleted text end .

Minnesota Statutes 2014, section 148.57, subdivision 2, is amended to read:

new text begin (a) new text end 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 deleted text begin of $87deleted text end new text begin established by the board, not to exceed the amount specified in section 148.59new text end .
The application fee shall be for the use of the board and in no case shall be refunded.

new text begin (b)new text end 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 deleted text begin for board certificationdeleted text end 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.

new text begin (c) new text end 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.

Minnesota Statutes 2014, section 148.57, is amended by adding a subdivision
to read:

new text begin A person regulated by the board shall maintain a
current name and address with the board and shall notify the board in writing within 30
days of any change in name or address. If a name change only is requested, the regulated
person must request revised credentials and return the current credentials to the board.
The board may require the regulated person to substantiate the name change by submitting
official documentation from a court of law or agency authorized under law to receive and
officially record a name change. If an address change only is requested, no request for
revised credentials is required. If the regulated person's current credentials have been lost,
stolen, or destroyed, the person shall provide a written explanation to the board.
new text end

Minnesota Statutes 2014, section 148.574, is amended to read:

deleted text begin An optometrist shall not purchase, possess, administer, prescribe or give any legend
drug as defined in section 151.01 or 152.02 to any person except as is expressly authorized
by sections 148.571 to 148.577. Nothing in chapter 151 shall prevent a pharmacist from
selling topical ocular drugs to an optometrist authorized to use such drugs according to
sections 148.571 to 148.577.deleted text end Notwithstanding sections 151.37 and 152.12, an optometrist
is prohibited from dispensing legend drugs at retail, unless the legend drug is within the
scope designated in section 148.56, subdivision 1, and is administered to the eye through
an ophthalmic good as defined in section 145.711, subdivision 4.

Minnesota Statutes 2014, section 148.575, subdivision 2, is amended to read:

deleted text begin "Board certified" means thatdeleted text end A
licensed optometrist deleted text begin has been issued a certificate by the Board of Optometry certifying
that the optometrist has complieddeleted text end new text begin shall complynew text end with the following requirements for the use
of legend drugs deleted text begin described in section 148.576deleted text end :

deleted text begin (1) successful completion of at least 60 hours of study in general and ocular
pharmacology emphasizing drugs used for examination or treatment purposes, their
systemic effects and management or referral of adverse reactions;
deleted text end

deleted text begin (2)deleted text end new text begin (1)new text end successful completion of at least 100 hours of study in the examination,
diagnosis, and treatment of conditions of the human eye with legend drugs;

deleted text begin (3)deleted text end new text begin (2)new text end successful completion of two years of supervised clinical experience in
differential diagnosis of eye disease or disorders as part of optometric training or one year
of that experience and ten years of actual clinical experience as a licensed optometrist; and

deleted text begin (4)deleted text end new text begin (3)new text end successful completion of a nationally standardized examination approved or
administered by the board on the subject of treatment and management of ocular disease.

Minnesota Statutes 2014, section 148.577, is amended to read:

A licensed optometrist deleted text begin who is board certified under section 148.575deleted text end is held to the
same standard of care in the use of those legend drugs as physicians licensed by the state
of Minnesota.

Minnesota Statutes 2014, section 148.59, is amended to read:

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.new text begin 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:
new text end

new text begin (1) optometry licensure application, $160;
new text end

new text begin (2) optometry annual licensure renewal, $135;
new text end

new text begin (3) optometry late penalty fee, $75;
new text end

new text begin (4) annual license renewal card, $10;
new text end

new text begin (5) continuing education provider application, $45;
new text end

new text begin (6) emeritus registration, $10;
new text end

new text begin (7) endorsement/reciprocity application, $160;
new text end

new text begin (8) replacement of initial license, $12; and
new text end

new text begin (9) license verification, $50.
new text end

Minnesota Statutes 2014, section 148.603, is amended to read:

deleted text begin When grounds exist under section 148.57, subdivision 3, or other statute or rule
which the board is authorized to enforce, the board may take one or more of the following
disciplinary actions, provided that disciplinary or corrective action may not be imposed
by the board on any regulated person except after a contested case hearing conducted
pursuant to chapter 14 or by consent of the parties:
deleted text end

deleted text begin (1) deny an application for a credential;
deleted text end

deleted text begin (2) revoke the regulated person's credential;
deleted text end

deleted text begin (3) suspend the regulated person's credential;
deleted text end

deleted text begin (4) impose limitations on the regulated person's credential;
deleted text end

deleted text begin (5) impose conditions on the regulated person's credential;
deleted text end

deleted text begin (6) censure or reprimand the regulated person;
deleted text end

deleted text begin (7) impose a civil penalty not exceeding $10,000 for each separate violation, the
amount of the civil penalty to be fixed so as to deprive the person of any economic
advantage gained by reason of the violation or to discourage similar violations or to
reimburse the board for the cost of the investigation and proceeding. For purposes of
this section, the cost of the investigation and proceeding may include, but is not limited
to, fees paid for services provided by the Office of Administrative Hearings, legal and
investigative services provided by the Office of the Attorney General, court reporters,
witnesses, reproduction of records, board members' per diem compensation, board staff
time, and travel costs and expenses incurred by board staff and board members; or
deleted text end

deleted text begin (8) when grounds exist under section 148.57, subdivision 3, or a board rule, enter
into an agreement with the regulated person for corrective action which may include
requiring the regulated person:
deleted text end

deleted text begin (i) to complete an educational course or activity;
deleted text end

deleted text begin (ii) to submit to the executive director or designated board member a written
protocol or reports designed to prevent future violations of the same kind;
deleted text end

deleted text begin (iii) to meet with a board member or board designee to discuss prevention of future
violations of the same kind; or
deleted text end

deleted text begin (iv) to perform other action justified by the facts.
deleted text end

deleted text begin Listing the measures in clause (8) does not preclude the board from including
them in an order for disciplinary action. deleted text end new text begin The board may refuse to grant a license or
may impose disciplinary action as described in section 148.607 against any optometrist
for the following:
new text end

new text begin (1) failure to demonstrate the qualifications or satisfy the requirements for a license
contained in this chapter or in rules of the board. The burden of proof shall be on the
applicant to demonstrate the qualifications or the satisfaction of the requirements;
new text end

new text begin (2) obtaining a license by fraud or cheating, or attempting to subvert the licensing
examination process. Conduct which subverts or attempts to subvert the licensing
examination process includes, but is not limited to: (i) conduct which violates the
security of the examination materials, such as removing examination materials from the
examination room or having unauthorized possession of any portion of a future, current, or
previously administered licensing examination; (ii) conduct which violates the standard of
test administration, such as communicating with another examinee during administration
of the examination, copying another examinee's answers, permitting another examinee
to copy one's answers, or possessing unauthorized materials; or (iii) impersonating an
examinee or permitting an impersonator to take the examination on one's own behalf;
new text end

new text begin (3) conviction, during the previous five years, of a felony or gross misdemeanor,
reasonably related to the practice of optometry. Conviction as used in this section shall
include a conviction of an offense which if committed in this state would be deemed a
felony or gross misdemeanor without regard to its designation elsewhere, or a criminal
proceeding where a finding or verdict of guilt is made or returned but the adjudication of
guilt is either withheld or not entered thereon;
new text end

new text begin (4) revocation, suspension, restriction, limitation, or other disciplinary action against
the person's optometry license in another state or jurisdiction, failure to report to the
board that charges regarding the person's license have been brought in another state or
jurisdiction, or having been refused a license by any other state or jurisdiction;
new text end

new text begin (5) advertising which is false or misleading, which violates any rule of the board, or
which claims without substantiation the positive cure of any disease;
new text end

new text begin (6) violating a rule adopted by the board or an order of the board, a state or federal
law, which relates to the practice of optometry, or a state or federal narcotics or controlled
substance law;
new text end

new text begin (7) engaging in any unethical conduct; conduct likely to deceive, defraud, or harm
the public, or demonstrating a willful or careless disregard for the health, welfare, or
safety of a patient; or practice of optometry which is professionally incompetent, in that
it may create unnecessary danger to any patient's life, health, or safety, which in any of
the cases, proof of actual injury need not be established;
new text end

new text begin (8) failure to supervise an optometrist's assistant or failure to supervise an
optometrist under any agreement with the board;
new text end

new text begin (9) aiding or abetting an unlicensed person in the practice of optometry, except that
it is not a violation of this section for an optometrist to employ, supervise, or delegate
functions to a qualified person who may or may not be required to obtain a license or
registration to provide health services if that person is practicing within the scope of that
person's license or registration or delegated authority;
new text end

new text begin (10) adjudication as mentally incompetent, mentally ill, or developmentally
disabled, or as a chemically dependent person, a person dangerous to the public, a sexually
dangerous person, or a person who has a sexual psychopathic personality by a court of
competent jurisdiction, within or without this state. Such adjudication shall automatically
suspend a license for the duration of the license unless the board orders otherwise;
new text end

new text begin (11) engaging in unprofessional conduct which includes any departure from or the
failure to conform to the minimal standards of acceptable and prevailing practice in which
case actual injury to a patient need not be established;
new text end

new text begin (12) inability to practice optometry with reasonable skill and safety to patients
by reason of illness, use of alcohol, drugs, narcotics, chemicals, or any other type of
material or as a result of any mental or physical condition, including deterioration through
the aging process or loss of motor skills;
new text end

new text begin (13) revealing a privileged communication from or relating to a patient except when
otherwise required or permitted by law;
new text end

new text begin (14) improper management of medical records, including failure to maintain
adequate medical records, to comply with a patient's request made pursuant to sections
144.291 to 144.298 or to furnish a medical record or report required by law;
new text end

new text begin (15) fee splitting, including without limitation:
new text end

new text begin (i) paying, offering to pay, receiving, or agreeing to receive a commission, rebate, or
remuneration, directly or indirectly, primarily for the referral of patients or the prescription
of drugs or devices; and
new text end

new text begin (ii) dividing fees with another optometrist, other health care provider, or a
professional corporation, unless the division is in proportion to the services provided
and the responsibility assumed by each professional and the optometrist has disclosed
the terms of the division;
new text end

new text begin (16) engaging in abusive or fraudulent billing practices, including violations of the
federal Medicare and Medicaid laws or state medical assistance laws;
new text end

new text begin (17) becoming addicted or habituated to a drug or intoxicant;
new text end

new text begin (18) prescribing a drug or device for other than accepted therapeutic or experimental
or investigative purposes authorized by the state or a federal agency;
new text end

new text begin (19) engaging in conduct with a patient which is sexual or may reasonably be
interpreted by the patient as sexual, or in any verbal behavior which is seductive or
sexually demeaning to a patient;
new text end

new text begin (20) failure to make reports as required by section 148.604 or to cooperate with an
investigation of the board as required by section 148.606;
new text end

new text begin (21) knowingly providing false or misleading information that is directly related to
the care of a patient; and
new text end

new text begin (22) practice of a board-regulated profession under lapsed or nonrenewed credentials.
new text end

new text begin A person who has knowledge of any conduct
constituting grounds for discipline under sections 148.52 to 148.62 may report the
violation to the board.
new text end

new text begin Any hospital, clinic, prepaid medical plan, or other health
care institution or organization located in this state shall report to the board any action
taken by the institution or organization or any of its administrators or medical or other
committees to revoke, suspend, restrict, or condition an optometrist's privilege to practice
or treat patients in the institution, or as part of the organization, any denial of privileges,
or any other disciplinary action. The institution or organization shall also report the
resignation of any optometrist prior to the conclusion of any disciplinary proceeding, or
prior to the commencement of formal charges but after the optometrist had knowledge
that formal charges were contemplated or in preparation. Each report made under this
subdivision must state the nature of the action taken, state in detail the reasons for
the action, and identify the specific patient medical records upon which the action was
based. No report shall be required of an optometrist voluntarily limiting the practice of
the optometrist at a hospital provided that the optometrist notifies all hospitals where the
optometrist has privileges of the voluntary limitation and the reasons for it.
new text end

new text begin A licensed optometrist shall report to the board
personal knowledge of any conduct by any optometrist which the person reasonably
believes constitutes grounds for disciplinary action under sections 148.52 to 148.62,
including any conduct indicating that the person may be incompetent, may have engaged
in unprofessional conduct, or may be physically unable to safely engage in the practice
of optometry.
new text end

new text begin An optometrist shall report to the board any personal
action which would require that a report be filed with the board by any person, health care
facility, business, or organization pursuant to subdivisions 2 and 3.
new text end

new text begin Reports required by subdivisions 2 to
4 must be submitted not later than 30 days after the occurrence of the reportable event
or transaction. The board may provide forms for the submission of reports required by
this section, may require that reports be submitted on the forms provided, and may adopt
rules necessary to ensure prompt and accurate reporting.
new text end

new text begin The board may issue subpoenas for the production of any
reports required by subdivisions 2 to 4 or any related documents.
new text end

new text begin Any person, health care facility, business, or organization
is immune from civil liability or criminal prosecution for submitting a report to the
board pursuant to section 148.604 or for otherwise reporting to the board violations or
alleged violations of section 148.603, if they are acting in good faith and in the exercise
of reasonable care.
new text end

new text begin (a) Members of the board, persons
employed by the board, and consultants retained by the board for the purpose of
investigation of violations, the preparation of charges, and management of board orders on
behalf of the board are immune from civil liability and criminal prosecution for any actions,
transactions, or publications in the execution of, or relating to, their duties under sections
148.52 to 148.62, if they are acting in good faith and in the exercise of reasonable care.
new text end

new text begin (b) Members of the board and persons employed by the board or engaged in
maintaining records and making reports regarding adverse health care events are immune
from civil liability and criminal prosecution for any actions, transactions, or publications
in the execution of, or relating to, their duties under sections 148.52 to 148.62, if they are
acting in good faith and in the exercise of reasonable care.
new text end

new text begin (c) For purposes of this section, a member of the board or a consultant described in
paragraph (a) is considered a state employee under section 3.736, subdivision 9.
new text end

new text begin An optometrist who is the subject of an investigation by or on behalf of the board
shall cooperate fully with the investigation. Cooperation includes responding fully and
promptly to any question raised by or on behalf of the board relating to the subject of the
investigation and providing copies of patient medical records, as reasonably requested
by the board, to assist the board in its investigation. If the board does not have written
consent from a patient permitting access to the patient's records, the optometrist shall
delete any data in the record which identifies the patient before providing it to the board.
The board shall maintain any records obtained pursuant to this section as investigative
data pursuant to chapter 13.
new text end

new text begin When the board finds that a licensed optometrist under section 148.57 has violated a
provision or provisions of sections 148.52 to 148.62, it may do one or more of the following:
new text end

new text begin (1) revoke the license;
new text end

new text begin (2) suspend the license;
new text end

new text begin (3) impose limitations or conditions on the optometrist's practice of optometry,
including the limitation of scope of practice to designated field specialties; the imposition
of retraining or rehabilitation requirements; the requirement of practice under supervision;
or the conditioning of continued practice on demonstration of knowledge or skills by
appropriate examination or other review of skill and competence;
new text end

new text begin (4) impose a civil penalty not exceeding $10,000 for each separate violation, the
amount of the civil penalty to be fixed so as to deprive the optometrist of any economic
advantage gained by reason of the violation charged or to reimburse the board for the cost
of the investigation and proceeding; and
new text end

new text begin (5) censure or reprimand the licensed optometrist.
new text end

Minnesota Statutes 2014, section 148E.075, is amended to read:

(a) deleted text begin A licensee qualifies
for inactive status under either of the circumstances described in paragraph (b) or (c).
deleted text end

deleted text begin (b) A licensee qualifies for inactive status when the licensee is granted temporary
leave from active practice.deleted text end 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.

new text begin (b) A licensee may maintain a temporary leave license for no more than four
consecutive years.
new text end

deleted text begin (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:
deleted text end

deleted text begin (1) the licensee is retired from social work practice; and
deleted text end

deleted text begin (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.
deleted text end

deleted text begin A licensee who possesses an emeritus license may reactivate the license according to
section 148E.080.
deleted text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (a) A licensee qualifies for an emeritus inactive
license if the licensee demonstrates to the satisfaction of the board that the licensee is:
new text end

new text begin (1) retired from social work practice; and
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (a) A licensee qualifies for an emeritus active
license if the applicant demonstrates to the satisfaction of the board that the licensee is:
new text end

new text begin (1) retired from social work practice; and
new text end

new text begin (2) in compliance with the supervised practice requirements, as applicable, under
sections 148E.100 to 148E.125.
new text end

new text begin (b) A licensee who is issued an emeritus active license is only authorized to engage in:
new text end

new text begin (1) pro bono or unpaid social work practice as specified in section 148E.010,
subdivisions 6 and 11; or
new text end

new text begin (2) paid social work practice not to exceed 240 clock hours per calendar year, for the
exclusive purpose to provide licensing supervision as specified in sections 148E.100 to
148E.125; and
new text end

new text begin (3) the authorized scope of practice specified in section 148E.050.
new text end

new text begin (c) An emeritus active license must be renewed according to the requirements
specified in section 148E.070, subdivisions 1, 2, 3, 4, and 5.
new text end

new text begin (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:
new text end

new text begin (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
new text end

new text begin (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.
new text end

new text begin (e) Independent study hours must not consist of more than eight clock hours of
continuing education per renewal term.
new text end

new text begin (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.
new text end

new text begin (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.
new text end

new text begin (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 to provide licensing supervision
as specified in sections 148E.100 to 148E.125.
new text end

new text begin (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.
new text end

A licensee may apply for deleted text begin inactive statusdeleted text end new text begin temporary leave
license, emeritus inactive license, or emeritus active licensenew text end :

(1) at any time new text begin when currently licensed under section 148E.055, 148E.0555,
148E.0556, or 148E.0557, or when licensed as specified in section 148E.075, new text end by
submitting an application deleted text begin for a temporary leave from active practice or for an emeritus
licensedeleted text end new text begin form required by the boardnew text end ; or

(2) as an alternative to applying for the renewal of a license by so recording on the
application deleted text begin for license renewaldeleted text end new text begin form required by the boardnew text end 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.

(a) Regardless of when the application for deleted text begin inactive statusdeleted text end new text begin temporary
leave license or emeritus inactive licensenew text end is submitted, the temporary leave new text begin license new text end or
emeritus new text begin inactive new text end license fee specified in section 148E.180, whichever is applicable, must
accompany the application. A licensee who is approved for deleted text begin inactive statusdeleted text end new text begin temporary
leave license or emeritus inactive licensenew text end 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 leavenew text begin or emeritus active licensenew text end 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.

new text begin (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.
new text end

deleted text begin 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.
deleted text end

deleted text begin 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.
deleted text end

deleted text begin (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.
deleted text end

deleted text begin (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.
deleted text end

deleted text begin 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.
deleted text end

The board may resolve any pending
complaints against a licensee before approving an application for deleted text begin inactive statusdeleted text end new text begin an
alternate license specified in this sectionnew text end . The board may take action according to sections
148E.255 to 148E.270 against a licensee deleted text begin whose license is inactivedeleted text end new text begin who is issued an
alternate license specified in this sectionnew text end based on conduct occurring before the license is
inactive or conduct occurring while the license is deleted text begin inactivedeleted text end new text begin effectivenew text end .

Minnesota Statutes 2014, section 148E.080, subdivision 1, is amended to read:

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 deleted text begin 4deleted text end new text begin 1new text end . 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.

Minnesota Statutes 2014, section 148E.080, subdivision 2, is amended to read:

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 deleted text begin 4 and 5deleted text end new text begin 1, 1a, and 1bnew text end :

(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 deleted text begin an inactive licenseedeleted text end new text begin a licensenew text end 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.

Minnesota Statutes 2014, section 148E.180, subdivision 2, is amended to read:

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 new text begin inactive new text end license, $43.20; deleted text begin and
deleted text end

(6) new text begin for an emeritus active license, one-half of the renewal fee specified in subdivision
3; and
new text end

new text begin (7) new text end 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.

Minnesota Statutes 2014, section 148E.180, subdivision 5, is amended to read:

Late fees are as follows:

(1) renewal late fee, one-fourth of the renewal fee specified in subdivision 3; deleted text begin and
deleted text end

(2) supervision plan late fee, $40deleted text begin .deleted text end new text begin ; and
new text end

new text begin (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.
new text end

Minnesota Statutes 2014, section 150A.091, subdivision 4, is amended to read:

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, deleted text begin $59deleted text end new text begin $85new text end .

Minnesota Statutes 2014, section 150A.091, subdivision 5, is amended to read:

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, deleted text begin $336deleted text end new text begin $475new text end ;

(2) dental therapist, deleted text begin $180deleted text end new text begin $300new text end ;

(3) dental hygienist, deleted text begin $118deleted text end new text begin $200new text end ;

(4) licensed dental assistant, deleted text begin $80deleted text end new text begin $150new text end ; and

(5) dental assistant with a permit as described in Minnesota Rules, part 3100.8500,
subpart 3, $24.

Minnesota Statutes 2014, section 150A.091, subdivision 11, is amended to read:

Each dentist
shall submit with a general anesthesia or moderate sedation application deleted text begin ordeleted text end new text begin ,new text end a contracted
sedation provider applicationnew text begin , or biennial renewal, new text end a fee as established by the board not to
exceed the following amounts:

(1) for both a general anesthesia and moderate sedation application, deleted text begin $250deleted text end new text begin $400new text end ;

(2) for a general anesthesia application only, deleted text begin $250deleted text end new text begin $400new text end ;

(3) for a moderate sedation application only, deleted text begin $250deleted text end new text begin $400new text end ; and

(4) for a contracted sedation provider application, deleted text begin $250deleted text end new text begin $400new text end .

Minnesota Statutes 2014, section 150A.091, is amended by adding a
subdivision to read:

new text begin 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.
new text end

Minnesota Statutes 2014, section 150A.091, is amended by adding a
subdivision to read:

new text begin 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.
new text end

Minnesota Statutes 2014, section 150A.31, is amended to read:

(a) The initial biennial registration fee is $50.

(b) The biennial renewal registration fee is deleted text begin $25deleted text end new text begin not to exceed $80new text end .

(c) The fees specified in this section are nonrefundable and shall be deposited in
the state government special revenue fund.

Minnesota Statutes 2014, section 151.01, subdivision 15a, is amended to read:

"Pharmacy technician" means a person not
licensed as a pharmacist or new text begin registered as new text end a pharmacist intern, who deleted text begin assists the pharmacist
in the preparation and dispensing of medications by performing computer entry of
prescription data and other manipulative tasks. A pharmacy technician shall not perform
tasks specifically reserved to a licensed pharmacist or requiringdeleted text end new text begin has been trained in
pharmacy tasks that do not require thenew text end professional judgmentnew text begin of a licensed pharmacist. A
pharmacy technician may not perform tasks specifically reserved to a licensed pharmacistnew text end .

Minnesota Statutes 2014, section 151.01, subdivision 27, is amended to read:

"Practice of pharmacy" means:

(1) interpretation and evaluation of prescription drug orders;

(2) compounding, labeling, and dispensing drugs and devices (except labeling by
a manufacturer or packager of nonprescription drugs or commercially packaged legend
drugs and devices);

(3) participation in clinical interpretations and monitoring of drug therapy for
assurance of safe and effective use of drugs, including the performance of laboratory tests
that are waived under the federal Clinical Laboratory Improvement Act of 1988, United
States Code, title 42, section 263a et seq., provided that a pharmacist may interpret the
results of laboratory tests but may modify drug therapy only pursuant to a protocol or
collaborative practice agreement;

(4) participation in drug and therapeutic device selection; drug administration for first
dosage and medical emergencies; drug regimen reviews; and drug or drug-related research;

(5) participation in administration of influenza vaccines to all eligible individuals deleted text begin ten
deleted text end new text begin sixnew text end years of age and older and all other vaccines to patients deleted text begin 18deleted text end new text begin 13new text end years of age and older
by written protocol with a physician licensed under chapter 147, a physician assistant
authorized to prescribe drugs under chapter 147A, or an advanced practice registered
nurse authorized to prescribe drugs under section 148.235, provided that:

(i) the protocol includes, at a minimum:

(A) the name, dose, and route of each vaccine that may be given;

(B) the patient population for whom the vaccine may be given;

(D) the procedure for handling an adverse reaction;

(E) the name, signature, and address of the physician, physician assistant, or
advanced practice registered nurse;

(F) a telephone number at which the physician, physician assistant, or advanced
practice registered nurse can be contacted; and

(G) the date and time period for which the protocol is valid;

(ii) the pharmacist has successfully completed a program approved by the
Accreditation Council for Pharmacy Education specifically for the administration of
immunizations or a program approved by the board;

(iii) new text begin the pharmacist utilizes the Minnesota Immunization Information Connection
to assess the immunization status of individuals prior to the administration of vaccines,
except when administering influenza vaccines to individuals age nine and older;
new text end

new text begin (iv) new text end the pharmacist reports the administration of the immunization deleted text begin to the patient's
primary physician or clinic ordeleted text end to the Minnesota Immunization Information Connection; and

deleted text begin (iv)deleted text end new text begin (v)new text end the pharmacist complies with guidelines for vaccines and immunizations
established by the federal Advisory Committee on Immunization Practices, except that a
pharmacist does not need to comply with those portions of the guidelines that establish
immunization schedules when administering a vaccine pursuant to a valid, patient-specific
order issued by a physician licensed under chapter 147, a physician assistant authorized to
prescribe drugs under chapter 147A, or an advanced practice nurse authorized to prescribe
drugs under section 148.235, provided that the order is consistent with the United States
Food and Drug Administration approved labeling of the vaccine;

(6) participation in the initiation, management, modification, and discontinuation
of drug therapy according to a written protocol or collaborative practice agreement
between: (i) one or more pharmacists and one or more dentists, optometrists, physicians,
podiatrists, or veterinarians; or (ii) one or more pharmacists and one or more physician
assistants authorized to prescribe, dispense, and administer under chapter 147A, or
advanced practice nurses authorized to prescribe, dispense, and administer under section
148.235. Any changes in drug therapy made pursuant to a protocol or collaborative
practice agreement must be documented by the pharmacist in the patient's medical record
or reported by the pharmacist to a practitioner responsible for the patient's care;

(7) participation in the storage of drugs and the maintenance of records;

(8) patient counseling on therapeutic values, content, hazards, and uses of drugs
and devices; and

(9) offering or performing those acts, services, operations, or transactions necessary
in the conduct, operation, management, and control of a pharmacy.

Minnesota Statutes 2014, section 151.02, is amended to read:

The Minnesota State Board of Pharmacy shall consist of deleted text begin twodeleted text end new text begin threenew text end public members
as defined by section 214.02 and deleted text begin fivedeleted text end new text begin sixnew text end pharmacists actively engaged in the practice of
pharmacy in this state. Each of said pharmacists shall have had at least five consecutive
years of practical experience as a pharmacist immediately preceding appointment.

Minnesota Statutes 2014, section 151.065, subdivision 1, is amended to read:

Application fees for licensure and registration
are as follows:

(1) pharmacist licensed by examination, deleted text begin $130deleted text end new text begin $145new text end ;

(2) pharmacist licensed by reciprocity, deleted text begin $225deleted text end new text begin $240new text end ;

(3) pharmacy intern, deleted text begin $30deleted text end new text begin $37.50new text end ;

(4) pharmacy technician, deleted text begin $30deleted text end new text begin $37.50new text end ;

(5) pharmacy, deleted text begin $190deleted text end new text begin $225new text end ;

(6) drug wholesaler, legend drugs only, deleted text begin $200deleted text end new text begin $235new text end ;

(7) drug wholesaler, legend and nonlegend drugs, deleted text begin $200deleted text end new text begin $235new text end ;

(8) drug wholesaler, nonlegend drugs, veterinary legend drugs, or both, deleted text begin $175deleted text end new text begin $210new text end ;

(9) drug wholesaler, medical gases, deleted text begin $150deleted text end new text begin $175new text end ;

(10) drug wholesaler, also licensed as a pharmacy in Minnesota, deleted text begin $125deleted text end new text begin $150new text end ;

(11) drug manufacturer, legend drugs only, deleted text begin $200deleted text end new text begin $235new text end ;

(12) drug manufacturer, legend and nonlegend drugs, deleted text begin $200deleted text end new text begin $235new text end ;

(13) drug manufacturer, nonlegend or veterinary legend drugs, deleted text begin $175deleted text end new text begin $210new text end ;

(14) drug manufacturer, medical gases, deleted text begin $150deleted text end new text begin $185new text end ;

(15) drug manufacturer, also licensed as a pharmacy in Minnesota, deleted text begin $125deleted text end new text begin $150new text end ;

(16) medical gas distributor, deleted text begin $75deleted text end new text begin $110new text end ;

(17) controlled substance researcher, deleted text begin $50deleted text end new text begin $75new text end ; and

(18) pharmacy professional corporation, deleted text begin $100deleted text end new text begin $125new text end .

Minnesota Statutes 2014, section 151.065, subdivision 2, is amended to read:

The pharmacist original licensure fee, deleted text begin $130deleted text end new text begin $145new text end .

Minnesota Statutes 2014, section 151.065, subdivision 3, is amended to read:

Annual licensure and registration renewal fees
are as follows:

(1) pharmacist, deleted text begin $130deleted text end new text begin $145new text end ;

(2) pharmacy technician, deleted text begin $30deleted text end new text begin $37.50new text end ;

(3) pharmacy, deleted text begin $190deleted text end new text begin $225new text end ;

(4) drug wholesaler, legend drugs only, deleted text begin $200deleted text end new text begin $235new text end ;

(5) drug wholesaler, legend and nonlegend drugs, deleted text begin $200deleted text end new text begin $235new text end ;

(6) drug wholesaler, nonlegend drugs, veterinary legend drugs, or both, deleted text begin $175deleted text end new text begin $210new text end ;

(7) drug wholesaler, medical gases, deleted text begin $150deleted text end new text begin $185new text end ;

(8) drug wholesaler, also licensed as a pharmacy in Minnesota, deleted text begin $125deleted text end new text begin $150new text end ;

(9) drug manufacturer, legend drugs only, deleted text begin $200deleted text end new text begin $235new text end ;

(10) drug manufacturer, legend and nonlegend drugs, deleted text begin $200deleted text end new text begin $235new text end ;

(11) drug manufacturer, nonlegend, veterinary legend drugs, or both, deleted text begin $175deleted text end new text begin $210new text end ;

(12) drug manufacturer, medical gases, deleted text begin $150deleted text end new text begin $185new text end ;

(13) drug manufacturer, also licensed as a pharmacy in Minnesota, deleted text begin $125deleted text end new text begin $150new text end ;

(14) medical gas distributor, deleted text begin $75deleted text end new text begin $110new text end ;

(15) controlled substance researcher, deleted text begin $50deleted text end new text begin $75new text end ; and

(16) pharmacy professional corporation, deleted text begin $45deleted text end new text begin $75new text end .

Minnesota Statutes 2014, section 151.065, subdivision 4, is amended to read:

Fees for issuance of affidavits and duplicate licenses
and certificates are as follows:

(1) intern affidavit, deleted text begin $15deleted text end new text begin $20new text end ;

(2) duplicate small license, deleted text begin $15deleted text end new text begin $20new text end ; and

(3) duplicate large certificate, deleted text begin $25deleted text end new text begin $30new text end .

Minnesota Statutes 2014, section 151.102, is amended to read:

A pharmacy technician may assist a pharmacist in the
practice of pharmacy by performing deleted text begin nonjudgmentaldeleted text end tasks deleted text begin anddeleted text end new text begin that are not reserved to, and
do not require the professional judgment of, a licensed pharmacist. A pharmacy technician
new text end works under the personal and direct supervision of the pharmacist. A pharmacist may
supervise deleted text begin twodeleted text end new text begin up to threenew text end techniciansdeleted text begin , as long as thedeleted text end new text begin . Anew text end pharmacist deleted text begin assumes responsibility
deleted text end new text begin is responsiblenew text end for all the deleted text begin functionsdeleted text end new text begin worknew text end performed by the techniciansnew text begin who are under the
supervision of the pharmacistnew text end . A pharmacy may exceed the ratio of pharmacy technicians
to pharmacists permitted in this subdivision or in rule by a total of one technician at
any given time in the pharmacy, provided at least one technician in the pharmacy
holds a valid certification from the Pharmacy Technician Certification Board or from
another national certification body for pharmacy technicians that requires passage of a
nationally recognized, psychometrically valid certification examination for certification as
determined by the Board of Pharmacy. The Board of Pharmacy may, by rule, set ratios of
technicians to pharmacists greater than deleted text begin twodeleted text end new text begin threenew text end to one for the functions specified in rule.
deleted text begin The delegation of any duties, tasks, or functions by a pharmacist to a pharmacy technician
is subject to continuing review and becomes the professional and personal responsibility of
the pharmacist who directed the pharmacy technician to perform the duty, task, or function.
deleted text end

A pharmacist in charge in a pharmacy may
petition the board for authorization to allow a pharmacist to supervise more than deleted text begin twodeleted text end new text begin three
new text end pharmacy technicians. The pharmacist's petition must include provisions addressing deleted text begin the
maintenance ofdeleted text end new text begin hownew text end patient care and safetynew text begin will be maintainednew text end . A petition filed with the
board under this subdivision shall be deemed approved 90 days after the board receives
the petition, unless the board denies the petition within 90 days of receipt and notifies the
petitioning pharmacist of the petition's denial and the board's reasons for denial.

The board shall not register an individual as a pharmacy
technician unless all applicable fees specified in section 151.065 have been paid.

Minnesota Statutes 2014, section 214.077, is amended to read:

(a) Notwithstanding any provision of a health-related professional practice act,
when a health-related licensing board receives a complaint regarding a regulated person
and has probable cause to believe new text begin that the regulated person has violated a statute or rule
that the health-related licensing board is empowered to enforce, and new text end continued practice
by the regulated person presents an imminent risk of new text begin serious new text end harm, the new text begin health-related
new text end licensing board shall new text begin issue an order new text end temporarily deleted text begin suspenddeleted text end new text begin suspendingnew text end the regulated person's
deleted text begin professional licensedeleted text end new text begin authority to practicenew text end . The new text begin temporary new text end suspension new text begin order new text end shall deleted text begin take
effect upon written notice to the regulated person and shalldeleted text end specify the reason for the
suspensiondeleted text begin .deleted text end new text begin , including the statute or rule alleged to have been violated. The temporary
suspension order shall take effect upon personal service on the regulated person or the
regulated person's attorney, or upon the third calendar day after the order is served by first
class mail to the most recent address provided to the health-related licensing board for the
regulated person or the regulated person's attorney.
new text end

(b) The new text begin temporary new text end suspension shall remain in effect until the deleted text begin appropriate
deleted text end new text begin health-relatednew text end licensing board deleted text begin or the commissionerdeleted text end completes an investigationnew text begin , holds a
contested case hearing pursuant to the Administrative Procedure Act,new text end and issues a final
order in the matter deleted text begin after a hearingdeleted text end new text begin as provided for in this sectionnew text end .

(c) At the time it issues the new text begin temporary new text end suspension deleted text begin noticedeleted text end new text begin ordernew text end , the deleted text begin appropriate
deleted text end new text begin health-relatednew text end licensing board shall schedule a deleted text begin disciplinarydeleted text end new text begin contested casenew text end hearingnew text begin , on the
merits of whether discipline is warranted,new text end to be held deleted text begin before the licensing board ordeleted text end pursuant
to the Administrative Procedure Act. The regulated person shall be provided with at least
ten days' notice of any new text begin contested case new text end hearing held pursuant to this section. The new text begin contested
case new text end hearing shall be scheduled to begin no later than 30 days after deleted text begin issuancedeleted text end new text begin the effective
servicenew text end of the new text begin temporary new text end suspension order.

new text begin (d) The administrative law judge presiding over the contested case hearing shall
issue a report and recommendation to the health-related licensing board no later than 30
days after the final day of the contested case hearing. The health-related licensing board
shall issue a final order pursuant to sections 14.61 and 14.62 within 30 days of receipt
of the administrative law judge's report and recommendations. Except as provided in
paragraph (e), if the health-related licensing board has not issued a final order pursuant to
sections 14.61 and 14.62 within 30 days of receipt of the administrative law judge's report
and recommendations, the temporary suspension shall be lifted.
new text end

deleted text begin (d)deleted text end new text begin (e)new text end If deleted text begin the board has not completed its investigation and issued a final order within
30 days, the temporary suspension shall be lifted, unless the regulated person requests a
delay in the disciplinary proceedings for any reason, upon which the temporary suspension
shall remain in place until the completion of the investigation.deleted text end new text begin the regulated person
requests a delay in the contested case proceedings provided for in paragraphs (c) and (d)
for any reason, the temporary suspension shall remain in effect until the health-related
licensing board issues a final order pursuant to sections 14.61 and 14.62.
new text end

new text begin (f) For the purposes of this section, "health-related licensing board" does not include
the Office of Unlicensed Complementary and Alternative Health Practices.
new text end

Minnesota Statutes 2014, section 214.10, subdivision 2, is amended to read:

The designee of the attorney general providing
legal services to a board shall evaluate the communications forwarded by the board or its
members or staff. If the communication alleges a violation of statute or rule which the
board is to enforce, the designee is empowered to investigate the facts alleged in the
communication. In the process of evaluation and investigation, the designee shall consult
with or seek the assistance of the executive director, executive secretary, or, if the board
determines, a member of the board who has been appointed by the board to assist the
designee. The designee may also consult with or seek the assistance of any other qualified
persons who are not members of the board who the designee believes will materially aid
in the process of evaluation or investigation. The executive director, executive secretary,
or the consulted board member may attempt to correct improper activities and redress
grievances through education, conference, conciliation and persuasion, and in these
attempts may be assisted by the designee of the attorney general. If the attempts at
correction or redress do not produce satisfactory results in the opinion of the executive
director, executive secretary, or the consulted board member, or if after investigation the
designee providing legal services to the board, the executive director, executive secretary,
or the consulted board member believes that the communication and the investigation
suggest illegal or unauthorized activities warranting board action, the person having the
belief shall inform the executive director or executive secretary of the board who shall
schedule a deleted text begin disciplinarydeleted text end new text begin contested casenew text end hearing in accordance with chapter 14. Before
directing the holding of a deleted text begin disciplinarydeleted text end new text begin contested casenew text end hearing, the executive director,
executive secretary, or the designee of the attorney general shall have considered the
recommendations of the consulted board member. Before scheduling a deleted text begin disciplinary
deleted text end new text begin contested casenew text end hearing, the executive director or executive secretary must have received
a verified written complaint from the complaining party. A board member who was
consulted during the course of an investigation may participate at the hearing but may not
vote on any matter pertaining to the case. The executive director or executive secretary
of the board shall promptly inform the complaining party of the final disposition of the
complaint. Nothing in this section shall preclude the board from scheduling, on its own
motion, a deleted text begin disciplinarydeleted text end new text begin contested casenew text end hearing based upon the findings or report of the
board's executive director or executive secretary, a board member or the designee of the
attorney general assigned to the board. Nothing in this section shall preclude a member of
the board, executive director, or executive secretary from initiating a complaint.

Minnesota Statutes 2014, section 214.10, subdivision 2a, is amended to read:

A board shall initiate proceedings to suspend or revoke
a license or shall refuse to renew a license of a person licensed by the board who is
convicted in a court of competent jurisdiction of violating section deleted text begin 609.224, subdivision 2,
deleted text end deleted text begin paragraph (c)deleted text end new text begin 609.2231, subdivision 8new text end , 609.23, 609.231, 609.2325, 609.233, 609.2335,
609.234, 609.465, 609.466, deleted text begin 609.52,deleted text end or 609.72, subdivision 3.

Minnesota Statutes 2014, section 214.32, subdivision 6, is amended to read:

Upon receiving a report from the
program manager in accordance with section 214.33, subdivision 3, deleted text begin that a regulated
person has been discharged from the program due to noncompliance based on allegations
that the regulated person has engaged in conduct that might cause risk to the public,
whendeleted text end new text begin and ifnew text end the participating new text begin health-related licensing new text end board has probable cause to believe
continued practice by the regulated person presents an imminent risk of new text begin serious new text end harm, the
new text begin health-related licensing new text end board shall deleted text begin temporarily suspend the regulated person's professional
license until the completion of a disciplinary investigation. The board must complete the
disciplinary investigation within 30 days of receipt of the report from the program. If the
investigation is not completed by the board within 30 days, the temporary suspension shall
be lifted, unless the regulated person requests a delay in the disciplinary proceedings
for any reason, upon which the temporary suspension shall remain in place until the
completion of the investigationdeleted text end new text begin proceed pursuant to the requirements in section 214.077new text end .

new text begin Minnesota Statutes 2014, sections 148.57, subdivisions 3 and 4; 148.571; 148.572;
148.573, subdivision 1; 148.575, subdivisions 1, 3, 5, and 6; 148.576; 148E.060,
subdivision 12; 148E.075, subdivisions 4, 5, 6, and 7; and 214.105, new text end new text begin are repealed.
new text end

Minnesota Statutes 2014, section 119B.011, subdivision 15, is amended to
read:

"Income" means earned deleted text begin or unearneddeleted text end income deleted text begin received by all
family members, includingdeleted text end new text begin as defined under section 256P.01, subdivision 3, unearned
income as defined under section 256P.01, subdivision 8, and new text end public assistance cash benefits
deleted text begin anddeleted text end new text begin , including the Minnesota family investment program, diversionary work program,
work benefit, Minnesota supplemental aid, general assistance, refugee cash assistance,
new text end at-home infant child care subsidy payments, deleted text begin unless specifically excludeddeleted text end and child support
and maintenance distributed to the family under section 256.741, subdivision 15. The
following are deleted text begin excludeddeleted text end new text begin deducted new text end from income: funds used to pay for health insurance
premiums for family members, deleted text begin 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 256.741deleted text end new text begin 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 countednew text end .

Minnesota Statutes 2014, section 119B.025, subdivision 1, is amended to read:

(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.new text begin 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.
new text end

(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.

Minnesota Statutes 2014, section 119B.035, subdivision 4, is amended to read:

(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
new text begin sections 256P.06 and 256P.07, and new text end 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.

Minnesota Statutes 2014, section 119B.09, subdivision 4, is amended to read:

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.new text begin Included lump sums counted as income under
section 256P.06, subdivision 3, must be annualized over 12 months.new text end 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.

Minnesota Statutes 2014, section 256D.01, subdivision 1a, is amended to read:

(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 methodsdeleted text begin , income deductions,
exclusions, and disregards used when calculating the countable income for a single adult
or childless coupledeleted text end must deleted text begin be useddeleted text end new text begin follow the provisions under section 256P.06new text end .

(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.

Minnesota Statutes 2014, section 256D.02, is amended by adding a subdivision
to read:

new text begin "Assistance unit" means an individual who is, or an
eligible married couple who live together who are, applying for or receiving benefits
under this chapter.
new text end

Minnesota Statutes 2014, section 256D.02, is amended by adding a subdivision
to read:

new text begin "Cash assistance benefit" means any payment
received as a disability benefit, including veterans 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.
new text end

Minnesota Statutes 2014, section 256D.02, subdivision 8, is amended to read:

"Income" means deleted text begin 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.05deleted text end new text begin earned income as defined
under section 256P.01, subdivision 3, and unearned income as defined under section
256P.01, subdivision 8new text end .

deleted text begin 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.
deleted text end

Minnesota Statutes 2014, section 256D.06, subdivision 1, is amended to read:

General assistance shall be
granted in an amount that when added to the deleted text begin nonexemptdeleted text end new text begin countable new text end income new text begin as determined
to be new text end actually available to the assistance unitnew text begin under section 256P.06new text end , 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.

Minnesota Statutes 2014, section 256D.405, subdivision 3, is amended to read:

Participants must report changes in circumstances new text begin according to
section 256P.07 new text end 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.

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

new text begin "Assistance unit" means an individual who is applying
for or receiving benefits under this chapter.
new text end

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

"Countable income" means all income received by an
applicant or recipient new text begin as described under section 256P.06, new text end 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.

Minnesota Statutes 2014, section 256I.04, subdivision 1, is amended to read:

(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 deleted text begin sections
256D.01 to 256D.21deleted text end new text begin section 256P.06new text end , 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.

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

Recipients must report changes in circumstances new text begin according
to section 256P.07 new text end 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.

Minnesota Statutes 2014, section 256J.08, subdivision 26, is amended to read:

"Earned income" deleted text begin 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 activitydeleted text end new text begin has the meaning
given in section 256P.01, subdivision 3new text end .

Minnesota Statutes 2014, section 256J.08, subdivision 86, is amended to read:

"Unearned income" deleted text begin 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 participantdeleted text end new text begin has the meaning given in section
256P.01, subdivision 8new text end .

Minnesota Statutes 2014, section 256J.30, subdivision 1, is amended to read:

An applicant must provide
information on an application form and supplemental forms about the applicant's
circumstances deleted text begin 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
eligibilitydeleted text end new text begin according to section 256P.07new text end .

Minnesota Statutes 2014, section 256J.30, subdivision 9, is amended to read:

A caregiver must report deleted text begin 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:deleted text end new text begin changes as specified under section 256P.07.
new text end

deleted text begin (1) a change in initial employment;
deleted text end

deleted text begin (2) a change in initial receipt of unearned income;
deleted text end

deleted text begin (3) a recurring change in unearned income;
deleted text end

deleted text begin (4) a nonrecurring change of unearned income that exceeds $30;
deleted text end

deleted text begin (5) the receipt of a lump sum;
deleted text end

deleted text begin (6) an increase in assets that may cause the assistance unit to exceed asset limits;
deleted text end

deleted text begin (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;
deleted text end

deleted text begin (8) a change in employment status;
deleted text end

deleted text begin (9) the marriage or divorce of an assistance unit member;
deleted text end

deleted text begin (10) the death of a parent, minor child, or financially responsible person;
deleted text end

deleted text begin (11) a change in address or living quarters of the assistance unit;
deleted text end

deleted text begin (12) the sale, purchase, or other transfer of property;
deleted text end

deleted text begin (13) a change in school attendance of a caregiver under age 20 or an employed child;
deleted text end

deleted text begin (14) filing a lawsuit, a workers' compensation claim, or a monetary claim against a
third party; and
deleted text end

deleted text begin (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.
deleted text end

Minnesota Statutes 2014, section 256J.35, is amended to read:

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
deleted text begin 256J.38, subdivision 4deleted text end new text begin 256P.08, subdivision 6new text end .

(d) An initial assistance payment must not be made to an applicant who is not
eligible on the date payment is made.

Minnesota Statutes 2014, section 256J.40, is amended to read:

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 deleted text begin 256J.38deleted text end new text begin 256P.08new text end 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.

Minnesota Statutes 2014, section 256J.95, subdivision 19, is amended to read:

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 deleted text begin 256J.38,
subdivision 5deleted text end new text begin 256P.08, subdivision 7new text end . Cross program recoupment of overpayments cannot
be assigned to or from DWP.

Minnesota Statutes 2014, section 256P.001, is amended to read:

General assistance and Minnesota supplemental aid under chapter 256Dnew text begin , child care
assistance programs under chapter 119B, new text end and programs governed by chapter 256I or 256J
are subject to the requirements of this chapter, unless otherwise specified or exempted.

Minnesota Statutes 2014, section 256P.01, is amended by adding a subdivision
to read:

new text begin "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.
new text end

Minnesota Statutes 2014, section 256P.01, subdivision 3, is amended to read:

"Earned income" means cash or in-kind income earned
through the receipt of wages, salary, commissions, new text begin bonuses, tips, gratuities, new text end profit from
employment activities, net profit from self-employment activities, payments made by
an employer for regularly accrued vacation or sick leave, deleted text begin and anydeleted text end new text begin 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 new text end other profit from activity deleted text begin earned through
effortdeleted text end new text begin that results from the client's work, service, effort, new text end or labor. The income must be in
return for, or as a result of, legal activity.

Minnesota Statutes 2014, section 256P.01, is amended by adding a subdivision
to read:

new text begin "Unearned income" has the meaning given in section
256P.06, subdivision 3, clause (2).
new text end

Minnesota Statutes 2014, section 256P.02, is amended by adding a subdivision
to read:

new text begin Participants who qualify for child care assistance programs
under chapter 119B are exempt from this section.
new text end

Minnesota Statutes 2014, section 256P.03, subdivision 1, is amended to read:

Participants who qualify for new text begin child care
assistance programs under chapter 119B, new text end Minnesota supplemental aid under chapter
256Dnew text begin ,new text end and deleted text begin fordeleted text end group residential housing under chapter 256I on the basis of eligibility for
Supplemental Security Income are exempt from this section.

Minnesota Statutes 2014, section 256P.04, subdivision 1, is amended to read:

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.new text begin Participants who receive child care assistance under chapter 119B are
exempt from the requirements of this section.
new text end

Minnesota Statutes 2014, section 256P.04, subdivision 4, is amended to read:

(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; deleted text begin and
deleted text end

(10) Social Security numberdeleted text begin .deleted text end new text begin ; and
new text end

new text begin (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.
new text end

(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.

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

Participants who qualify fornew text begin child care
assistance programs under chapter 119B,new text end Minnesota supplemental aid under chapter
256Dnew text begin ,new text end and deleted text begin fordeleted text end group residential housing under chapter 256I on the basis of eligibility for
Supplemental Security Income are exempt from this section.

new text begin 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.
new text end

new text begin 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:
new text end

new text begin (1) children under six years old;
new text end

new text begin (2) caregivers under 20 years of age enrolled at least half time in school; and
new text end

new text begin (3) minors enrolled in school full time.
new text end

new text begin The following must be included in determining the
income of an assistance unit:
new text end

new text begin (1) earned income; and
new text end

new text begin (2) unearned income, which includes:
new text end

new text begin (i) interest and dividends from investments and savings;
new text end

new text begin (ii) capital gains as defined by the Internal Revenue Service from any sale of real
property;
new text end

new text begin (iii) proceeds from rent and contract for deed payments in excess of the principal
and interest portion owed on property;
new text end

new text begin (iv) income from trusts, excluding special needs and supplemental needs trusts;
new text end

new text begin (v) interest income from loans made by the participant or household;
new text end

new text begin (vi) cash prizes and winnings;
new text end

new text begin (vii) unemployment insurance income;
new text end

new text begin (viii) retirement, survivors, and disability insurance payments;
new text end

new text begin (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;
new text end

new text begin (x) retirement benefits;
new text end

new text begin (xi) cash assistance benefits, as defined by each program in chapters 119B, 256D,
256I, and 256J;
new text end

new text begin (xii) tribal per capita payments unless excluded by federal and state law;
new text end

new text begin (xiii) income and payments from service and rehabilitation programs that meet
or exceed the state's minimum wage rate;
new text end

new text begin (xiv) income from members of the United States armed forces unless excluded from
income taxes according to federal or state law; and
new text end

new text begin (xv) child and spousal support.
new text end

new text begin 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.
new text end

new text begin 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.
new text end

new text begin 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:
new text end

new text begin (1) change in earned income of $100 per month or greater;
new text end

new text begin (2) change in unearned income of $50 per month or greater;
new text end

new text begin (3) change in employment status and hours;
new text end

new text begin (4) change in address or residence;
new text end

new text begin (5) change in household composition with the exception of programs under chapter
256I;
new text end

new text begin (6) receipt of a lump-sum payment;
new text end

new text begin (7) increase in assets if over $9,000 with the exception of programs under chapter
119B;
new text end

new text begin (8) change in citizenship or immigration status;
new text end

new text begin (9) change in family status with the exception of programs under chapter 256I;
new text end

new text begin (10) change in disability status of a unit member, with the exception of programs
under chapter 119B;
new text end

new text begin (11) new rent subsidy or a change in rent subsidy; and
new text end

new text begin (12) sale, purchase, or transfer of real property.
new text end

new text begin In addition to subdivision 3, an assistance unit
under chapter 256J, within ten days of the change, must report:
new text end

new text begin (1) a pregnancy not resulting in birth when there are no other minor children; and
new text end

new text begin (2) a change in school attendance of a parent under 20 years of age or of an
employed child.
new text end

new text begin 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:
new text end

new text begin (1) shelter expenses; and
new text end

new text begin (2) utility expenses.
new text end

new text begin In addition to
subdivision 3, an assistance unit under chapter 119B, within ten days of the change, must
report a:
new text end

new text begin (1) change in a parentally responsible individual's visitation schedule or custody
arrangement for any child receiving child care assistance program benefits; and
new text end

new text begin (2) change in authorized activity status.
new text end

new text begin 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.
new text end

new text begin Participants who qualify for child care
assistance programs under chapter 119B or group residential housing under chapter 256I
are exempt from this section.
new text end

new text begin (a) When a participant or former participant
receives an overpayment due to 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:
new text end

new text begin (1) reconstruct each affected budget month and corresponding payment month;
new text end

new text begin (2) use the policies and procedures that were in effect for the payment month; and
new text end

new text begin (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.
new text end

new text begin (b) 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.
new text end

new text begin (c) A participant or former participant is not responsible for overpayments due to
agency error, unless the amount of the overpayment is large enough that a reasonable
person would know it is an error.
new text end

new text begin 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 5 and 6.
new text end

new text begin (a) If an amount of assistance is paid to an assistance unit in excess of the
payment due, it shall be recoverable by the agency. The agency shall give written notice to
the participant of its intention to recover the overpayment.
new text end

new text begin (b) If the individual is no longer receiving assistance, the agency may request
voluntary repayment or pursue civil recovery.
new text end

new text begin (c) If the individual 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:
new text end

new text begin (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
new text end

new text begin (2) ten percent where fraud has occurred in general assistance cases; or
new text end

new text begin (3) the amount of the monthly general assistance or Minnesota supplemental aid
payment, whichever is less.
new text end

new text begin (d) In cases when there is both an overpayment and underpayment, the county
agency shall offset one against the other in correcting the payment.
new text end

new text begin (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.
new text end

new text begin (f) The county agency shall make reasonable efforts to recover overpayments to
individuals no longer on assistance. The agency need not attempt to recover overpayments
of less than $35 paid to an individual no longer on assistance if the individual does not
receive assistance again within three years, unless the individual has been convicted of
violating section 256.98.
new text end

new text begin (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.
new text end

new text begin (h) Residents of licensed residential facilities shall not have overpayments recovered
from their personal needs allowance.
new text end

new text begin (i) Overpayments by another maintenance benefit program shall not be recovered
from the general assistance or Minnesota supplemental aid grant.
new text end

new text begin 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 6.
new text end

new text begin 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 MFIP standard of need or the amount of the monthly assistance
payment, whichever is less.
new text end

new text begin 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.
new text end

new text begin 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 10.
new text end

new text begin 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.
new text end

new text begin 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 participant's income and resources for the month of payment. The county
agency must correct underpayments using the following methods:
new text end

new text begin (1) reconstruct each affected budget month and corresponding payment month; and
new text end

new text begin (2) use the policies and procedures that were in effect for the payment month.
new text end

new text begin A participant may appeal an underpayment, an overpayment,
and a reduction in an assistance payment made to recoup the overpayment under
subdivisions 4 and 6. 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.
new text end

new text begin (a) new text end new text begin Minnesota Statutes 2014, sections 256D.0513; 256D.06, subdivision 8; 256D.09,
subdivision 6; 256D.49; and 256J.38, new text end new text begin are repealed.
new text end

new text begin (b) new text end new text begin Minnesota Rules, part 3400.0170, subparts 5, 6, 12, and 13, new text end new text begin are repealed.
new text end

new text begin Sections 1 to 34 are effective August 1, 2016.
new text end

new text begin 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.
new text end

new text begin $
new text end

(255,104,000)

new text begin Appropriations by Fund new text end
	new text begin 2015 new text end
new text begin General Fund new text end	new text begin (125,910,000) new text end
new text begin Health Care Access new text end	new text begin (123,113,000) new text end
new text begin TANF new text end	new text begin (6,081,000) new text end

(a) MFIP/DWP Grants

new text begin Appropriations by Fund new text end
new text begin General Fund new text end	new text begin (1,977,000) new text end
new text begin TANF new text end	new text begin (7,079,000) new text end

(b) MFIP Child Care Assistance Grants

9,733,000

(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)

new text begin This appropriation is from the health care
access fund.
new text end

(g) Medical Assistance Grants

new text begin Appropriations by Fund new text end
new text begin General Fund new text end	new text begin (124,557,000) new text end
new text begin Health Care Access new text end	new text begin (47,438,000) new text end

(h) Alternative Care Grants

(i) CD Entitlement Grants

(251,000)

998,000

new text begin This appropriation is from the TANF fund.
new text end

new text begin Sections 1 and 2 are effective the day following final enactment.
new text end

new text begin 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.
new text end

new text begin $
new text end

new text begin 6,780,796,000
new text end

new text begin $
new text end

new text begin 6,830,218,000
new text end

new text begin Appropriations by Fund new text end
	new text begin 2016 new text end	new text begin 2017 new text end
new text begin General new text end	new text begin 5,530,458,000 new text end	new text begin 5,953,383,000 new text end
new text begin State Government Special Revenue new text end	new text begin 4,514,000 new text end	new text begin 4,274,000 new text end
new text begin Health Care Access new text end	new text begin 969,037,000 new text end	new text begin 599,313,000 new text end
new text begin Federal TANF new text end	new text begin 274,897,000 new text end	new text begin 271,358,000 new text end
new text begin Lottery Prize new text end	new text begin 1,890,000 new text end	new text begin 1,890,000 new text end

new text begin 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.
new text end

new text begin 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.
new text end

new text begin 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:
new text end

new text begin (1) MFIP cash, diversionary work program,
and food assistance benefits under Minnesota
Statutes, chapter 256J;
new text end

new text begin (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;
new text end

new text begin (3) state and county MFIP administrative
costs under Minnesota Statutes, chapters
256J and 256K;
new text end

new text begin (4) state, county, and tribal MFIP
employment services under Minnesota
Statutes, chapters 256J and 256K;
new text end

new text begin (5) expenditures made on behalf of legal
noncitizen MFIP recipients who qualify for
the MinnesotaCare program under Minnesota
Statutes, chapter 256L;
new text end

new text begin (6) qualifying working family credit
expenditures under Minnesota Statutes,
section 290.0671; and
new text end

new text begin (7) qualifying Minnesota education credit
expenditures under Minnesota Statutes,
section 290.0674.
new text end

new text begin (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.
new text end

new text begin (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 16
percent of the total required under Code of
Federal Regulations, title 45, section 263.1.
new text end

new text begin (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.
new text end

new text begin (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:
new text end

new text begin (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;
new text end

new text begin (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
new text end

new text begin (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).
new text end

new text begin (f) For the purposes of paragraph (e), 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.
new text end

new text begin (g) Notwithstanding any contrary provision
in this article, paragraphs (a) to (f) expire
June 30, 2019.
new text end

new text begin 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.
new text end

new text begin The amounts that may be spent from this
appropriation for each purpose are as follows:
new text end

(a) Operations

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 87,876,000 new text end	new text begin 82,809,000 new text end
new text begin State Government Special Revenue new text end	new text begin 4,389,000 new text end	new text begin 4,149,000 new text end
new text begin Health Care Access new text end	new text begin 12,826,000 new text end	new text begin 12,841,000 new text end
new text begin Federal TANF new text end	new text begin 100,000 new text end	new text begin 100,000 new text end

new text begin Systems Costs. $34,000 in fiscal year 2016
from the general fund is for systems costs
related to the operation of a tribal TANF
program by the Red Lake Nation.
new text end

new text begin 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:
new text end

new text begin (1) Minnesota Statutes, section 125A.744,
subdivision 3;
new text end

new text begin (2) Minnesota Statutes, section 245.495,
paragraph (b);
new text end

new text begin (3) Minnesota Statutes, section 256B.0625,
subdivision 20, paragraph (k);
new text end

new text begin (4) Minnesota Statutes, section 256B.0924,
subdivision 6, paragraph (g);
new text end

new text begin (5) Minnesota Statutes, section 256B.0945,
subdivision 4, paragraph (d); and
new text end

new text begin (6) Minnesota Statutes, section 256F.10,
subdivision 6, paragraph (b).
new text end

new text begin 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.
new text end

(b) Children and Families

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 8,476,000 new text end	new text begin 8,267,000 new text end
new text begin Federal TANF new text end	new text begin 2,582,000 new text end	new text begin 2,582,000 new text end

new text begin 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.
new text end

new text begin Child Support Work Group. $12,000 in
fiscal year 2016 is from the general fund for
facilitation of the duties of the child support
work group.
new text end

new text begin Stearns County Veterans Housing. $85,000
in fiscal year 2016 and $85,000 in fiscal year
2017 are from the general fund 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.
new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 15,932,000 new text end	new text begin 20,036,000 new text end
new text begin Health Care Access new text end	new text begin 24,764,000 new text end	new text begin 24,122,000 new text end

(d) Continuing Care

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 27,585,000 new text end	new text begin 25,786,000 new text end
new text begin State Government Special Revenue new text end	new text begin 125,000 new text end	new text begin 125,000 new text end

new text begin Nursing Facilities. $890,000 in fiscal year
2016 is from the general fund for the nursing
facility property rate setting appraisals and
study. This is a onetime appropriation.
new text end

(e) Chemical and Mental Health

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 4,895,000 new text end	new text begin 5,095,000 new text end
new text begin Lottery Prize new text end	new text begin 157,000 new text end	new text begin 157,000 new text end

new text begin The amounts that may be spent from this
appropriation for each purpose are as follows:
new text end

(a) MFIP/DWP

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 82,355,000 new text end	new text begin 86,086,000 new text end
new text begin Federal TANF new text end	new text begin 93,093,000 new text end	new text begin 88,798,000 new text end

(b) MFIP Child Care Assistance

98,920,000

105,921,000

55,117,000

57,847,000

new text begin 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.
new text end

new text begin 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.
new text end

(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

46,336,000

(g) MinnesotaCare

234,982,000

20,854,000

new text begin This appropriation is from the health care
access fund.
new text end

(h) Medical Assistance

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 4,180,159,000 new text end	new text begin 4,565,620,000 new text end
new text begin Health Care Access new text end	new text begin 692,374,000 new text end	new text begin 537,281,000 new text end

new text begin Contingent Rate Reductions. If the
commissioner determines that contract
negotiations to reduce managed care and
county-based purchasing plan administrative
costs, and implementation of statewide
competitive bidding, will not achieve a state
general fund savings of $150,000,000 for
the biennium beginning July 1, 2015, the
commissioner shall calculate an estimate
of the shortfall in savings, and, for the
fiscal year beginning July 1, 2016, shall
reduce medical assistance provider payment
rates, including but not limited to rates to
individual health care providers and provider
agencies, hospitals, other residential settings,
and capitation rates provided to managed
care and county-based purchasing plans, but
excluding nursing facilities, by the amount
necessary to recoup the shortfall in savings
over that fiscal year.
new text end

new text begin Base Adjustment. The health care
access fund base for medical assistance
is $476,236,000 in fiscal year 2018 and
$275,118,000 in fiscal year 2019.
new text end

(i) Alternative Care

42,704,000

43,421,000

new text begin 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.
new text end

(j) Chemical Dependency Treatment Fund

81,863,000

85,660,000

new text begin The amounts that may be spent from this
appropriation for each purpose are as follows:
new text end

(a) Support Services Grants

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 13,258,000 new text end	new text begin 8,840,000 new text end
new text begin Federal TANF new text end	new text begin 96,311,000 new text end	new text begin 96,311,000 new text end

new text begin Tribal TANF Program; Red Lake Nation.
$125,000 in fiscal year 2016 and $125,000 in
fiscal year 2017 from the general fund are for
transfer to the Red Lake Nation to operate a
tribal TANF program.
new text end

(b) Basic Sliding Fee Child Care Assistance
Grants

44,318,000

47,518,000

1,737,000

(d) Child Support Enforcement Grants

50,000

(e) Children's Services Grants

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 39,015,000 new text end	new text begin 38,665,000 new text end
new text begin Federal TANF new text end	new text begin 140,000 new text end	new text begin 140,000 new text end

new text begin Safe Place for Newborns. $350,000 in
fiscal year 2016 is from the general fund to
distribute information on the Safe Place for
Newborns law in Minnesota. The purpose
of this appropriation is to increase public
awareness of the law.
new text end

new text begin 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
is appropriated to the commissioner
for postadoption services, including a
parent-to-parent support network.
new text end

new text begin Adoption Assistance Incentive Grants.
Federal funds available during fiscal years
2016 and 2017 for adoption incentive grants
are appropriated to the commissioner for
these purposes.
new text end

(f) Children and Community Service Grants

56,301,000

(g) Children and Economic Support Grants

25,281,000

25,291,000

new text begin Homeless Youth Act. $2,000,000 in fiscal
year 2016 and $2,000,000 in fiscal year 2017
are from the general fund for purposes of
Minnesota Statutes, section 256K.45.
new text end

new text begin Mobile Food Shelf Grants. (a) $1,000,000
in fiscal year 2016 and $1,000,000 in fiscal
year 2017 are from the general fund for
transfer to Hunger Solutions. This is a
onetime appropriation and is available until
June 30, 2017.
new text end

new text begin (b) Hunger Solutions shall award grants of
up to $75,000 on a competitive basis. Grant
applications must include:
new text end

new text begin (1) the location of the project;
new text end

new text begin (2) a description of the mobile program,
including size and scope;
new text end

new text begin (3) evidence regarding the unserved or
underserved nature of the community in
which the project is to be located;
new text end

new text begin (4) evidence of community support for the
project;
new text end

new text begin (5) the total cost of the project;
new text end

new text begin (6) the amount of the grant request and how
funds will be used;
new text end

new text begin (7) sources of funding or in-kind
contributions for the project that will
supplement any grant award;
new text end

new text begin (8) a commitment to mobile programs by the
applicant and an ongoing commitment to
maintain the mobile program; and
new text end

new text begin (9) any additional information requested by
Hunger Solutions.
new text end

new text begin (c) Priority may be given to applicants who:
new text end

new text begin (1) serve underserved areas;
new text end

new text begin (2) create a new or expand an existing mobile
program;
new text end

new text begin (3) serve areas where a high amount of need
is identified;
new text end

new text begin (4) provide evidence of strong support for the
project from citizens and other institutions in
the community;
new text end

new text begin (5) leverage funding for the project from
other private and public sources; and
new text end

new text begin (6) commit to maintaining the program on a
multilayer basis.
new text end

new text begin Safe Harbor. (a) $1,000,000 in fiscal year
2016 and $1,000,000 in fiscal year 2017 are
from the general fund for emergency shelter
and transitional and long-term housing beds
for sexually exploited youth and youth at risk
of sexual exploitation.
new text end

new text begin (b) $150,000 in fiscal year 2016 and
$150,000 in fiscal year 2017 are from the
general fund for statewide youth outreach
workers connecting sexually exploited youth
and youth at risk of sexual exploitation with
shelter and services.
new text end

new text begin 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.
new text end

(h) Health Care Grants

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 410,000 new text end	new text begin 410,000 new text end
new text begin Health Care Access new text end	new text begin 3,341,000 new text end	new text begin 3,465,000 new text end

(i) Other Long-Term Grants

1,551,000

3,069,000

(j) Aging and Adult Services Grants

28,463,000

29,407,000

new text begin Dementia Grants. $750,000 in fiscal year
2016 and $750,000 in fiscal year 2017 are
from the general fund for the Minnesota
Board on Aging for regional and local
dementia grants authorized in Minnesota
Statutes, section 256.975, subdivision 11.
This amount shall be added to the base. Up
to one percent of each appropriation may be
used by the board to administer the regional
and local dementia grants.
new text end

(k) Deaf and Hard-of-Hearing Grants

2,875,000

2,961,000

new text begin Deaf and Hard-of-Hearing Services
Division. $650,000 in fiscal year 2016
and $500,000 in fiscal year 2017 are
from the general fund for the Deaf and
Hard-of-Hearing Services Division under
Minnesota Statutes, 256C.233. This
appropriation is added to the base. The funds
must be used:
new text end

new text begin (1) to provide linguistically and culturally
appropriate mental health services;
new text end

new text begin (2) to ensure that each regional advisory
committee meets at least quarterly;
new text end

new text begin (3) to increase the number of deafblind
Minnesotans receiving services;
new text end

new text begin (4) to conduct an analysis of how the regional
offices and staff are operated, in consultation
with the Commission of Deaf, DeafBlind,
and Hard of Hearing Minnesotans;
new text end

new text begin (5) during fiscal year 2016, to provide direct
services to clients and purchase additional
technology for the technology labs; and
new text end

new text begin (6) to conduct an analysis of whether
deafblind services are being provided in the
best and most efficient way possible, with
input from deafblind Minnesotans receiving
services.
new text end

new text begin Grants. $350,000 in fiscal year 2016 and
$500,000 in fiscal year 2017 are from the
general fund for deaf and hard-of-hearing
grants. The funds must be used to increase the
number of deafblind Minnesotans receiving
services under Minnesota Statutes, section
256C.261, and to provide linguistically and
culturally appropriate mental health services
to children who are deaf, deafblind, and
hard-of-hearing.
new text end

(l) Disabilities Grants

20,647,000

22,045,000

(m) Adult Mental Health Grants

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 71,042,000 new text end	new text begin 71,542,000 new text end
new text begin Health Care Access new text end	new text begin 750,000 new text end	new text begin 750,000 new text end
new text begin Lottery Prize new text end	new text begin 1,733,000 new text end	new text begin 1,733,000 new text end

new text begin 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.
new text end

new text begin Comprehensive Mental Health Center.
$1,500,000 for the 2016-2017 biennium is
from the general fund for a grant to Beltrami
County to fund the planning and development
of a comprehensive mental health center.
new text end

new text begin Problem Gambling. $225,000 in fiscal year
2016 and $225,000 in fiscal year 2017 are
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.
new text end

(n) Child Mental Health Grants

23,136,000

23,963,000

new text begin 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.
new text end

new text begin Special Projects. (a) $600,000 in fiscal year
2016 and $500,000 in fiscal year 2017 are
from the general fund to fund special projects
to provide intensive treatment and supports
to adolescents and young adults who are
experiencing their first psychotic or manic
episode. Projects must utilize all available
funding streams.
new text end

new text begin (b) Of the fiscal year 2016 appropriation,
$100,000 must be used by the special projects
to conduct outreach, training, and guidance.
This money is available until spent.
new text end

new text begin Chemical Dependency Prevention.
$150,000 in fiscal year 2016 and $150,000 in
fiscal year 2017 are from the general fund for
grants to nonprofit organizations to provide
chemical dependency prevention programs
in secondary schools. When making
grants, the commissioner must consider the
expertise, prior experience, and outcomes
achieved by applicants that have provided
prevention programming in secondary
education environments. An applicant for the
grant funds must provide verification to the
commissioner that the applicant has available
and will contribute sufficient funds to match
the grant given by the commissioner. Unspent
funds cancel at the end of each fiscal year.
new text end

(o) Chemical Dependency Treatment Support
Grants

1,161,000

new text begin new text begin Transfer Authority for State-Operated
Services.new text end 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.
new text end

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

(a) DCT State-Operated Services Mental
Health

124,319,000

124,290,000

new text begin 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); up to $1,000,000 each year
is available to transfer to the adult mental
health grants budget activity for the purposes
of Minnesota Statutes, section 246.18,
subdivision 8, paragraph (b), clause (2); 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).
new text end

(b) DCT State-Operated Services Enterprise
Services

-0-

385,000

74,750,000

74,756,000

79,745,000

new text begin 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.
new text end

82,671,000

83,427,000

new text begin This appropriation is from the federal TANF
fund.
new text end

new text begin $
new text end

new text begin 156,049,000
new text end

new text begin $
new text end

new text begin 154,243,000
new text end

new text begin Appropriations by Fund new text end
	new text begin 2016 new text end	new text begin 2017 new text end
new text begin General new text end	new text begin 89,192,000 new text end	new text begin 87,953,000 new text end
new text begin State Government Special Revenue new text end	new text begin 51,728,000 new text end	new text begin 51,761,000 new text end
new text begin Health Care Access new text end	new text begin 11,243,000 new text end	new text begin 10,643,000 new text end
new text begin Federal TANF new text end	new text begin 3,886,000 new text end	new text begin 3,886,000 new text end

new text begin The amounts that may be spent for each
purpose are specified in the following
subdivisions.
new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 69,853,000 new text end	new text begin 68,622,000 new text end
new text begin State Government Special Revenue new text end	new text begin 6,199,000 new text end	new text begin 6,114,000 new text end
new text begin Health Care Access new text end	new text begin 11,243,000 new text end	new text begin 10,643,000 new text end
new text begin Federal TANF new text end	new text begin 3,886,000 new text end	new text begin 3,886,000 new text end

new text begin (a) $2,243,000 in fiscal year 2016 and
$2,277,000 in fiscal year 2017 are from the
general fund for the MERC program.
new text end

new text begin (b) $250,000 in the biennium ending June
30, 2017, is from the general fund to
award a grant to a statewide advance care
planning resource organization that has
expertise in convening and coordinating
community-based strategies to encourage
individuals, families, caregivers, and health
care providers to begin conversations
regarding end-of-life care choices that
express an individual's health care values
and preferences and are based on informed
health care decisions. This is a onetime
appropriation.
new text end

new text begin (c) $200,000 in fiscal year 2016 is from the
general fund to provide a grant to the Leech
Lake Band of Ojibwe ambulance service for
equipment upgrades.
new text end

new text begin (d) $800,000 in fiscal year 2016 and $800,000
in fiscal year 2017 are from the general fund
for regional poison information centers under
Minnesota Statutes, section 145.93. This
appropriation is added to the base.
new text end

new text begin (e) $1,000,000 in fiscal year 2016 and
$1,000,000 in fiscal year 2017 are from the
general fund to provide subsidies to federally
qualified health centers under Minnesota
Statutes, section 145.9269. This is a onetime
appropriation.
new text end

new text begin (f) $350,000 in fiscal year 2016 and $350,000
in fiscal year 2017 are from the general fund
for the Minnesota stroke system under the
heart disease and stroke prevention unit
under the Department of Health.
new text end

new text begin (g) $500,000 in fiscal year 2016 and $500,000
in fiscal year 2017 are from the general fund
for the Smile Healthy Minnesota 2016 grant
program under Minnesota Statutes, section
145.9299. The appropriation is available
until expended.
new text end

new text begin (h) $200,000 in fiscal year 2016 is from the
general fund for the purposes of establishing
a grant program used to develop and create
culturally appropriate outreach programs that
provide education about the importance of
organ donation. Grants shall be awarded to
a federally designated organ procurement
organization and hospital system that
performs transplants. This is a onetime
appropriation.
new text end

new text begin (i) $6,500,000 in fiscal year 2016 and
$6,500,000 in fiscal year 2017 are from the
general fund for the purposes of the primary
care residency expansion grant program
under Minnesota Statutes, section 144.1506.
new text end

new text begin (j) $250,000 in fiscal year 2016 is from the
general fund for a grant to a community
health center to partner with a nonprofit
organization that helps Somali women, for
the community health center and nonprofit
organization to do the following:
new text end

new text begin (1) choose a primary care physician;
new text end

new text begin (2) provide high quality, compassionate, and
ethically sound health care services to all;
new text end

new text begin (3) engage in dialogue with patients to
determine their care expectations;
new text end

new text begin (4) counsel patients regarding the benefits of
preventative health care and early screening,
intervention, and treatment; and
new text end

new text begin (5) advocate for increased public awareness
of the benefits of preventative health care
and early screening and intervention.
new text end

new text begin The community health center shall report
the progress of the nonprofit organization to
the commissioner by July 1, 2016. This is a
onetime appropriation.
new text end

new text begin (k) $270,000 in fiscal year 2016 and $20,000
in fiscal year 2017 are from the general fund
to the commissioner of health for grants to
educate emergency medical services persons
on the use of an opiate antagonist in the event
of an opioid of heroin overdose. The funding
must be distributed proportionately to the
eight regional emergency medical services
programs based on the need of the regions,
as determined by the commissioner by using
existing data. The regional emergency
medical services programs must submit an
application for a grant to the commissioner
by September 1, 2015. This is a onetime
appropriation.
new text end

new text begin (l) $1,500,000 in fiscal year 2016 and
$1,500,000 in fiscal year 2017 are from the
general fund for the purposes of the home
and community-based services employee
scholarship program under Minnesota
Statutes, section 144.1503.
new text end

new text begin TANF Appropriations. (a) $1,156,000 of
the TANF funds is appropriated each year of
the biennium to the commissioner for family
planning grants under Minnesota Statutes,
section 145.925.
new text end

new text begin (b) $2,000,000 of the TANF funds is
appropriated each year of the biennium to
the commissioner for decreasing racial and
ethnic disparities in infant mortality rates
under Minnesota Statutes, section 145.928,
subdivision 7.
new text end

new text begin (c) 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.
new text end

new text begin TANF Carryforward. Any unexpended
balance of the TANF appropriation in the
first year of the biennium does not cancel but
is available for the second year.
new text end

new text begin Appropriations by Fund new text end
new text begin General new text end	new text begin 12,381,000 new text end	new text begin 12,381,000 new text end
new text begin State Government Special Revenue new text end	new text begin 45,561,000 new text end	new text begin 45,679,000 new text end

new text begin $32,000 is appropriated in fiscal year 2016
and $32,000 is appropriated in fiscal year
2017 from the state government special
revenue fund for licensing activities under
Minnesota Statutes, section 145.417.
new text end

6,958,000

6,950,000

new text begin $
new text end

new text begin 19,707,000
new text end

new text begin $
new text end

new text begin 19,597,000
new text end

new text begin 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.
new text end

507,000

513,000

2,192,000

2,206,000

new text begin This appropriation includes $864,000 in fiscal
year 2016 and $878,000 in fiscal year 2017
for the health professional services program.
new text end

113,000

115,000

234,000

237,000

3,933,000

3,962,000

4,189,000

4,243,000

2,365,000

2,062,000

new text begin 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.
new text end

new text begin 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.
new text end

new text begin 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.
new text end

new text begin 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.
new text end

138,000

143,000

2,847,000

2,888,000

354,000

359,000

78,000

79,000

874,000

884,000

1,141,000

1,155,000

262,000

265,000

480,000

486,000

new text begin $
new text end

new text begin 2,773,000
new text end

new text begin $
new text end

new text begin 2,772,000
new text end

new text begin Regional Grants. $585,000 in fiscal year
2016 and $585,000 in fiscal year 2017 are
for regional emergency medical services
programs, to be distributed equally to the
eight emergency medical service regions.
new text end

new text begin Cooper/Sams Volunteer Ambulance
Program. (a) $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.
new text end

new text begin (b) 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.
new text end

new text begin (c) 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.
new text end

new text begin Ambulance Training Grants. $361,000 in
fiscal year 2016 and $361,000 in fiscal year
2017 are for training grants.
new text end

new text begin EMSRB Board Operations. $1,095,000 in
fiscal year 2016 and $1,095,000 in fiscal year
2017 are for board operations.
new text end

new text begin $
new text end

new text begin 795,000
new text end

new text begin $
new text end

new text begin 761,000
new text end

new text begin (a) $69,000 each fiscal year is for one
full-time equivalent to coordinate the
Minnesota State Council on Disability's
communication with the disability
community.
new text end

new text begin (b) $78,000 in fiscal years 2016 and 2017 is
from the general fund to provide consultation
services to state agencies, developers, and
the public regarding compliance with the
State Building Code and the Americans with
Disabilities Act.
new text end

new text begin (c) $30,000 in fiscal year 2016 is for a
computer system upgrade and installation
to track agency performance and services
provided to the public.
new text end

new text begin $
new text end

new text begin 1,829,000
new text end

new text begin $
new text end

1,854,000

new text begin $
new text end

334,000

new text begin $
new text end

334,000

new text begin $
new text end

new text begin 210,000
new text end

new text begin $
new text end

new text begin 213,000
new text end

new text begin The commissioner of commerce shall
use existing grants issued by the federal
government for the exchange to establish
a federally facilitated exchange as required
under article 3, section 24.
new text end

new text begin $196,000,000 is appropriated in fiscal year 2015 from the general fund to the
commissioner of human services for transfer to the health care access fund. These funds
do not cancel until June 30, 2017. Notwithstanding any law to the contrary, these funds
are not subject to transfer.
new text end

new text begin This section is effective the day following final enactment.
new text end

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

new text begin The nonfederal share of activities for
which federal administrative reimbursement is appropriated to the commissioner may
be transferred to the special revenue fund.
new text end

new text begin 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.
new text end

new text begin 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.
new text end

new text begin 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.
new text end

new text begin All uncodified language contained in this article expires on June 30, 2017, unless a
different expiration date is explicit.
new text end

new text begin This article is effective July 1, 2015, unless a different effective date is specified.
new text end

new text begin APPROPRIATIONS
new text end

new text begin Available for the Year
new text end

new text begin Ending June 30
new text end

new text begin 2016
new text end

new text begin 2017
new text end