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Minnesota Legislature

Office of the Revisor of Statutes

SF 1908

3rd Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

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

Current Version - 3rd Engrossment

  1.1                          A bill for an act 
  1.2             relating to human services; appropriating money; 
  1.3             changing provisions for health care, long-term care 
  1.4             facilities, children's programs, child support 
  1.5             enforcement, continuing care for disabled persons; 
  1.6             creating a demonstration project for persons with 
  1.7             disabilities; changing provisions for marriage; 
  1.8             accelerating state payments; making technical 
  1.9             amendments to welfare reform; amending Minnesota 
  1.10            Statutes 1996, sections 13.46, subdivision 2; 13.99, 
  1.11            by adding a subdivision; 16A.124, subdivision 4b; 
  1.12            62D.04, subdivision 5; 62E.14, by adding a 
  1.13            subdivision; 62J.69, subdivision 2, and by adding a 
  1.14            subdivision; 62N.25, subdivision 2; 103I.101, 
  1.15            subdivision 6; 103I.208; 103I.401, subdivision 1; 
  1.16            144.0721, subdivision 3; 144.121, subdivision 1, and 
  1.17            by adding subdivisions; 144.125; 144.223; 144.226, 
  1.18            subdivision 1, and by adding a subdivision; 144.394; 
  1.19            144A.071, subdivisions 1, 2, and 4a, as amended; 
  1.20            144A.073, subdivision 2, and by adding a subdivision; 
  1.21            145.925, subdivision 9; 151.40; 153A.17; 157.15, by 
  1.22            adding subdivisions; 157.16, subdivision 3; 214.12, by 
  1.23            adding a subdivision; 245.03, subdivision 2; 245.4882, 
  1.24            subdivision 5; 245.493, subdivision 1, and by adding a 
  1.25            subdivision; 245.652, subdivisions 1 and 2; 245.98, by 
  1.26            adding a subdivision; 245A.11, subdivision 2a; 246.02, 
  1.27            subdivision 2; 246.18, by adding a subdivision; 
  1.28            252.025, subdivisions 1, 4, and by adding a 
  1.29            subdivision; 252.28, by adding a subdivision; 252.32, 
  1.30            subdivisions 1a, 3, 3a, 3c, and 5; 254.04; 254A.17, 
  1.31            subdivision 3; 254B.01, subdivision 3; 254B.02, 
  1.32            subdivisions 1 and 3; 254B.03, subdivision 1; 254B.04, 
  1.33            subdivision 1; 254B.09, subdivisions 4, 5, and 7; 
  1.34            256.01, subdivision 2, and by adding a subdivision; 
  1.35            256.025, subdivisions 2 and 4; 256.045, subdivisions 
  1.36            3, 3b, 4, 5, 7, 8, and 10; 256.476, subdivisions 2, 3, 
  1.37            4, and 5; 256.82, subdivision 1, and by adding a 
  1.38            subdivision; 256.87, subdivisions 1, 1a, 3, 5, and by 
  1.39            adding a subdivision; 256.871, subdivision 6; 256.935; 
  1.40            256.9354, subdivision 8, as added; 256.969, 
  1.41            subdivision 1; 256.9695, subdivision 1; 256.9742; 
  1.42            256.9744, subdivision 2; 256.978, subdivisions 1 and 
  1.43            2; 256.9792, subdivisions 1 and 2; 256.998, 
  1.44            subdivisions 1, 6, 7, and by adding subdivisions; 
  1.45            256B.037, subdivision 1a; 256B.04, by adding a 
  1.46            subdivision; 256B.055, subdivision 12; 256B.056, 
  2.1             subdivisions 4 and 5; 256B.057, subdivisions 1, 1b, 
  2.2             and 2; 256B.06, subdivision 5, as added; 256B.0625, 
  2.3             subdivisions 13, 14, and by adding a subdivision; 
  2.4             256B.0626; 256B.0627, subdivision 5, and by adding a 
  2.5             subdivision; 256B.064, subdivisions 1a, 1c, and 2; 
  2.6             256B.0644; 256B.0911, subdivisions 2 and 7; 256B.0912, 
  2.7             by adding a subdivision; 256B.0913, subdivisions 7, 
  2.8             10, 14, 15, and by adding a subdivision; 256B.0915, 
  2.9             subdivisions 1b, 3, and by adding subdivisions; 
  2.10            256B.0917, subdivisions 7 and 8; 256B.19, subdivision 
  2.11            2a; 256B.421, subdivision 1; 256B.431, subdivisions 
  2.12            3f, 25, and by adding a subdivision; 256B.433, by 
  2.13            adding a subdivision; 256B.434, subdivisions 2, 3, 4, 
  2.14            9, and 10; 256B.49, subdivision 1, and by adding a 
  2.15            subdivision; 256B.69, subdivisions 2, 3a, 5, 5b, and 
  2.16            by adding subdivisions; 256D.02, subdivision 12a, as 
  2.17            amended; 256D.03, subdivisions 2, 2a, 3, as amended, 
  2.18            and 6; 256D.05, subdivisions 1, as amended, and 8, as 
  2.19            amended; 256D.36; 256E.06, by adding a subdivision; 
  2.20            256F.04, subdivisions 1 and 2; 256F.05, subdivisions 
  2.21            2, 3, 4, and 8; 256F.06, subdivisions 1 and 2; 
  2.22            256F.11, subdivision 2; 256G.02, subdivision 6; 
  2.23            256G.05, subdivision 2; 256I.05, subdivision 1a, and 
  2.24            by adding a subdivision; 257.62, subdivisions 1 and 2; 
  2.25            257.66, subdivision 3, and by adding a subdivision; 
  2.26            257.70; 257.75, subdivisions 2, 3, 4, 5, and 7; 
  2.27            299C.46, subdivision 3; 326.37, subdivision 1; 327.20, 
  2.28            subdivision 1; 393.07, subdivision 2; 466.01, 
  2.29            subdivision 1; 469.155, subdivision 4; 471.59, 
  2.30            subdivision 11; 508.63; 508A.63; 517.01; 517.03; 
  2.31            517.08, subdivision 1a; 517.20; 518.005, by adding a 
  2.32            subdivision; 518.10; 518.148, subdivision 2; 518.17, 
  2.33            subdivision 1; 518.171, subdivisions 1 and 4; 518.54, 
  2.34            subdivision 6, and by adding a subdivision; 518.551, 
  2.35            subdivisions 12 and 13; 518.5512, subdivision 2, and 
  2.36            by adding subdivisions; 518.575; 518.68, subdivision 
  2.37            2; 518C.101; 518C.205; 518C.207; 518C.304; 518C.305; 
  2.38            518C.310; 518C.401; 518C.501; 518C.603; 518C.605; 
  2.39            518C.608; 518C.611; 518C.612; 518C.701; 548.091, 
  2.40            subdivisions 1a, 2a, 3a, and by adding subdivisions; 
  2.41            550.37, subdivision 24; 626.556, subdivisions 10b, 
  2.42            10d, 10e, 10f, 11c, and by adding a subdivision; 
  2.43            626.558, subdivisions 1 and 2; and 626.559, 
  2.44            subdivision 5; Laws 1995, chapter 207, article 6, 
  2.45            section 115; article 8, section 41, subdivision 2; 
  2.46            Laws 1997, chapter 7, article 1, section 75; Laws 
  2.47            1997, chapter 85, article 1, sections 7, subdivision 
  2.48            2; 8, subdivision 2; 12, subdivision 3; 16, 
  2.49            subdivision 1; 26, subdivision 2; 32, subdivision 5; 
  2.50            33; and 75; article 3, sections 28, subdivision 1; and 
  2.51            42; Laws 1997, chapter 105, section 7; proposing 
  2.52            coding for new law in Minnesota Statutes, chapters 
  2.53            13B; 62J; 145A; 157; 252; 256; 256B; 256J; 257; 325F; 
  2.54            518; 518C; and 552; repealing Minnesota Statutes 1996, 
  2.55            sections 145.9256; 252.32, subdivision 4; 256.026; 
  2.56            256.74, subdivisions 5 and 7; 256.82, subdivision 1; 
  2.57            256.979, subdivision 9; 256B.057, subdivisions 2a and 
  2.58            2b; 256B.0625, subdivision 13b; 256B.501, subdivision 
  2.59            5c; 256F.05, subdivisions 5 and 7; 469.154, 
  2.60            subdivision 6; 518.5511, subdivisions 5, 6, 7, 8, and 
  2.61            9; 518.611; 518.613; 518.645; 518C.9011; and 609.375, 
  2.62            subdivisions 3, 4, and 6; Minnesota Rules, part 
  2.63            9505.1000. 
  2.64  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.65                             ARTICLE 1 
  2.66                           APPROPRIATIONS 
  2.67  Section 1.  [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 
  3.1      The sums shown in the columns marked "APPROPRIATIONS" are 
  3.2   appropriated from the general fund, or any other fund named, to 
  3.3   the agencies and for the purposes specified in the following 
  3.4   sections of this article, to be available for the fiscal years 
  3.5   indicated for each purpose.  The figures "1998" and "1999" where 
  3.6   used in this article, mean that the appropriation or 
  3.7   appropriations listed under them are available for the fiscal 
  3.8   year ending June 30, 1998, or June 30, 1999, respectively.  
  3.9   Where a dollar amount appears in parentheses, it means a 
  3.10  reduction of an appropriation.  
  3.11                          SUMMARY BY FUND 
  3.12  APPROPRIATIONS                                      BIENNIAL
  3.13                            1998          1999           TOTAL
  3.14  General          $2,587,119,000 $2,738,148,000 $5,325,267,000
  3.15  State Government
  3.16  Special Revenue      31,911,000     32,150,000     64,061,000
  3.17  Metropolitan 
  3.18  Landfill Contingency
  3.19  Action Fund             193,000        193,000        386,000
  3.20  Trunk Highway         1,652,000      1,678,000      3,330,000
  3.21  TOTAL            $2,620,875,000 $2,772,169,000 $5,393,044,000
  3.22                                             APPROPRIATIONS 
  3.23                                         Available for the Year 
  3.24                                             Ending June 30 
  3.25                                            1998         1999 
  3.26  Sec. 2.  COMMISSIONER OF 
  3.27  HUMAN SERVICES 
  3.28  Subdivision 1.  Total 
  3.29  Appropriation                     $2,511,210,000 $2,663,931,000
  3.30                Summary by Fund
  3.31  General           2,510,757,000 2,663,469,000
  3.32  State Government
  3.33  Special Revenue         453,000       462,000
  3.34  Subd. 2.  Agency Management 
  3.35  General              25,446,000    24,294,000
  3.36  State Government
  3.37  Special Revenue         342,000       350,000
  3.38  The amounts that may be spent from the 
  3.39  appropriation for each purpose are as 
  3.40  follows: 
  3.41  (a) Financial Operations 
  3.42  General               7,683,000     6,518,000
  4.1   [RECEIPTS FOR SYSTEMS PROJECTS.] 
  4.2   Appropriations and federal receipts for 
  4.3   information system projects for MAXIS, 
  4.4   electronic benefit system, social 
  4.5   services information system, child 
  4.6   support enforcement, and Minnesota 
  4.7   medicaid information system (MMIS II) 
  4.8   must be deposited in the state system 
  4.9   account authorized in Minnesota 
  4.10  Statutes, section 256.014.  Money 
  4.11  appropriated for computer projects 
  4.12  approved by the information policy 
  4.13  office, funded by the legislature, and 
  4.14  approved by the commissioner of finance 
  4.15  may be transferred from one project to 
  4.16  another and from development to 
  4.17  operations as the commissioner of human 
  4.18  services considers necessary.  Any 
  4.19  unexpended balance in the appropriation 
  4.20  for these projects does not cancel but 
  4.21  is available for ongoing development 
  4.22  and operations. 
  4.23  [STATE-OPERATED SERVICES BILLING 
  4.24  SYSTEMS.] Of this appropriation, 
  4.25  $250,000 in fiscal year 1998 is to 
  4.26  modify the current state-operated 
  4.27  services billing and receipting system 
  4.28  to accommodate cost-per-service 
  4.29  charging.  As part of this project, the 
  4.30  commissioner shall develop cost 
  4.31  accounting methods to ensure that 
  4.32  regional treatment center chemical 
  4.33  dependency program charges are based on 
  4.34  actual costs. 
  4.35  (b) Legal & Regulation Operations 
  4.36  General               6,283,000     6,046,000
  4.37  State Government
  4.38  Special Revenue         342,000       350,000
  4.39  [CHILD CARE LICENSING; FIRE MARSHALL 
  4.40  ASSISTANCE.] Of this amount, $200,000 
  4.41  for the biennium is for the 
  4.42  commissioner to add two deputy state 
  4.43  fire marshall positions in the 
  4.44  licensing division.  These positions 
  4.45  are to improve the speed of licensing 
  4.46  child care programs, to provide 
  4.47  technical assistance to applicants and 
  4.48  providers regarding fire safety, and to 
  4.49  improve communication between licensing 
  4.50  staff and fire officials.  The state 
  4.51  fire marshall shall train and supervise 
  4.52  the positions.  The state fire marshall 
  4.53  and the department shall develop an 
  4.54  interagency agreement outlining the 
  4.55  responsibilities and authorities for 
  4.56  these positions, and continuation of 
  4.57  cooperation to inspect programs that 
  4.58  exceed the resources of these two 
  4.59  positions.  Unexpended funds for fiscal 
  4.60  year 1998 do not cancel but are 
  4.61  available to the commissioner for these 
  4.62  purposes for fiscal year 1999. 
  4.63  [MEALS REIMBURSEMENT FOR PROVIDERS.] 
  4.64  The commissioner shall transfer to the 
  4.65  commissioner of children, families, and 
  5.1   learning up to $10,000 in order to 
  5.2   provide reimbursement for meals to 
  5.3   providers licensed under Minnesota 
  5.4   Rules, parts 9502.0300 to 9502.0445, 
  5.5   who were not reimbursed by the 
  5.6   commissioner of children, families, and 
  5.7   learning in 1996 and 1997 under the 
  5.8   child and adult care food program in 
  5.9   title 7 of the Code of Federal 
  5.10  Regulations, subtitle B, chapter II, 
  5.11  subchapter A, part 226, because of 
  5.12  problems experienced with the 
  5.13  department of human services licensing 
  5.14  computer system.  This paragraph is 
  5.15  effective the day following final 
  5.16  enactment. 
  5.17  [AUTHORITY TO WAIVE STATUTES.] (a) In 
  5.18  response to the immediate and long-term 
  5.19  effects on individuals and public and 
  5.20  private entities of the unusually 
  5.21  severe conditions of the winter and 
  5.22  spring of 1997, the commissioner of 
  5.23  human services may waive or grant 
  5.24  variances to provisions in chapters 
  5.25  245A, 252, 256, 256B, 256D, 256E, 256G, 
  5.26  256I, 257, 259, 260, 518, and 626 
  5.27  governing:  the transference of funds 
  5.28  between grant accounts; rate setting or 
  5.29  other funding requirements or limits 
  5.30  for specific services; documentation or 
  5.31  reporting requirements; licensing 
  5.32  requirements; payments, including 
  5.33  MinnesotaCare premiums; emergency 
  5.34  assistance time limits; general 
  5.35  assistance citizenship requirements for 
  5.36  student residents; restrictions on 
  5.37  receipt of emergency general assistance 
  5.38  by AFDC recipients; and other 
  5.39  administrative procedures as needed to 
  5.40  ensure timely and continuous service to 
  5.41  persons receiving or eligible to 
  5.42  receive services administered by the 
  5.43  commissioner or by the counties under 
  5.44  supervision of the commissioner.  In 
  5.45  granting a waiver or variance, the 
  5.46  commissioner shall consider the impact 
  5.47  on the health and safety of vulnerable 
  5.48  persons.  Waivers or variances may be 
  5.49  restricted to specific geographical 
  5.50  areas and specific time periods. 
  5.51  (b) The commissioner shall notify the 
  5.52  chairs of the senate health and family 
  5.53  security committee, health and family 
  5.54  security budget division, human 
  5.55  resources finance committee, the house 
  5.56  health and human services committee, 
  5.57  health and human services finance 
  5.58  division, and ways and means committee 
  5.59  ten days prior to the effective date of 
  5.60  any waiver or variance granted under 
  5.61  paragraph (a). 
  5.62  (c) The appeal rights of applicants 
  5.63  for, or recipients of, public 
  5.64  assistance or a program of social 
  5.65  services under Minnesota Statutes, 
  5.66  section 256.045, are not affected by 
  5.67  this provision.  Counties and other 
  5.68  services providers do not have a right 
  6.1   to appeal the commissioner's decision 
  6.2   on whether to waive or grant a variance 
  6.3   from a statute under this provision. 
  6.4   (d) Expenditures under the waivers or 
  6.5   variances must not exceed the total 
  6.6   appropriation for the commissioner, 
  6.7   including any special appropriations 
  6.8   for flood relief.  The commissioner 
  6.9   shall issue a summary to the chairs of 
  6.10  the senate human resources finance and 
  6.11  house ways and means committees by 
  6.12  January 15, 1998, regarding variances 
  6.13  and waivers granted under the terms 
  6.14  under this provision. 
  6.15  (e) This provision shall be effective 
  6.16  the day following final enactment and 
  6.17  shall expire February 15, 1998. 
  6.18  (c) Management Operations 
  6.19  General              11,480,000    11,730,000
  6.20  [COMMUNICATION COSTS.] The commissioner 
  6.21  shall continue to operate the 
  6.22  department of human services 
  6.23  communication systems account 
  6.24  established in Laws 1993, First Special 
  6.25  Session chapter 1, article 1, section 
  6.26  2, subdivision 2, to manage shared 
  6.27  communication costs necessary for the 
  6.28  operation of the programs the 
  6.29  commissioner supervises.  A 
  6.30  communications account may also be 
  6.31  established for each regional treatment 
  6.32  center which operates communication 
  6.33  systems.  Each account shall be used to 
  6.34  manage shared communication costs 
  6.35  necessary for the operation of programs 
  6.36  the commissioner supervises.  The 
  6.37  commissioner may distribute the costs 
  6.38  of operating and maintaining 
  6.39  communication systems to participants 
  6.40  in a manner that reflects actual 
  6.41  usage.  Costs may include acquisition, 
  6.42  licensing, insurance, maintenance, 
  6.43  repair, staff time, and other costs as 
  6.44  determined by the commissioner.  
  6.45  Nonprofit organizations and state, 
  6.46  county, and local government agencies 
  6.47  involved in the operation of programs 
  6.48  the commissioner supervises may 
  6.49  participate in the use of the 
  6.50  department's communication technology 
  6.51  and share in the cost of operation.  
  6.52  The commissioner may accept on behalf 
  6.53  of the state any gift, bequest, devise, 
  6.54  or personal property of any kind, or 
  6.55  money tendered to the state for any 
  6.56  lawful purpose pertaining to the 
  6.57  communication activities of the 
  6.58  department.  Any money received for 
  6.59  this purpose must be deposited in the 
  6.60  department of human services 
  6.61  communication systems accounts.  Money 
  6.62  collected by the commissioner for the 
  6.63  use of communication systems must be 
  6.64  deposited in the state communication 
  6.65  systems account and is appropriated to 
  6.66  the commissioner for purposes of this 
  7.1   section. 
  7.2   [ISSUANCE OPERATIONS CENTER.] Payments 
  7.3   to the commissioner from other 
  7.4   governmental units and private 
  7.5   enterprises for (1) services performed 
  7.6   by the issuance operations center, or 
  7.7   (2) reports generated by the payment 
  7.8   and eligibility systems must be 
  7.9   deposited in the state systems account 
  7.10  authorized in Minnesota Statutes, 
  7.11  section 256.014.  These payments are 
  7.12  appropriated to the commissioner for 
  7.13  the operation of the issuance center or 
  7.14  system, in accordance with Minnesota 
  7.15  Statutes, section 256.014. 
  7.16  Subd. 3.  Children's Grants
  7.17  General              38,127,000    40,177,000
  7.18  [INDIAN CHILD WELFARE ACT.] Of this 
  7.19  appropriation, $90,000 each year is to 
  7.20  provide grants according to Minnesota 
  7.21  Statutes, section 257.3571, subdivision 
  7.22  2a, to the Indian child welfare defense 
  7.23  corporation to promote statewide 
  7.24  compliance with the Indian Child 
  7.25  Welfare Act. 
  7.26  [CHILDREN'S MENTAL HEALTH.] Of this 
  7.27  appropriation, $600,000 in fiscal year 
  7.28  1998 and $800,000 in fiscal year 1999 
  7.29  is for the commissioner to award grants 
  7.30  to counties for children's mental 
  7.31  health services.  These grants may be 
  7.32  used to provide any of the following 
  7.33  services specified in Minnesota 
  7.34  Statutes, section 245.4871; family 
  7.35  community support services under 
  7.36  subdivision 17; day treatment services 
  7.37  under subdivision 10; case management 
  7.38  services under subdivision 3; 
  7.39  professional home-based family 
  7.40  treatment under subdivision 31; and 
  7.41  outpatient services under subdivision 
  7.42  29.  Grant funds must be used to 
  7.43  provide appropriate personnel and 
  7.44  services according to an individual 
  7.45  family community support plan under 
  7.46  Minnesota Statutes, section 245.4882, 
  7.47  subdivision 4, that must be developed, 
  7.48  evaluated, and changed where needed, 
  7.49  using a process that respects the 
  7.50  consumer's identified cultural 
  7.51  community and enhances consumer 
  7.52  empowerment, best interests and 
  7.53  outcomes which strengthens and supports 
  7.54  children and their families. 
  7.55  In awarding these grants to counties, 
  7.56  the commissioner shall work with the 
  7.57  state advisory council on mental health 
  7.58  to ensure that the process for awarding 
  7.59  funds addresses the unmet need for 
  7.60  services under Minnesota Statutes, 
  7.61  sections 245.487 to 245.4888.  The 
  7.62  commissioner shall also ensure that 
  7.63  these grant funds are not used to 
  7.64  replace existing funds, and that these 
  7.65  grant funds are used to enhance service 
  8.1   capacity at the community level 
  8.2   consistent with Minnesota Statutes, 
  8.3   sections 245.487 to 245.4888. 
  8.4   Subd. 4.  Children's Services Management
  8.5   General               3,541,000     2,072,000
  8.6   [SOCIAL SERVICES INFORMATION SYSTEM.] 
  8.7   Of this appropriation, $1,500,000 in 
  8.8   fiscal year 1998 is for training and 
  8.9   implementation costs related to the 
  8.10  social services information system.  
  8.11  Any unexpended funds shall not cancel 
  8.12  but shall be available for fiscal year 
  8.13  1999.  This appropriation shall not 
  8.14  become part of the base for the 
  8.15  biennium beginning July 1, 1999. 
  8.16  Subd. 5.  Basic Health Care Grants
  8.17                Summary by Fund
  8.18  General             834,098,000   938,504,000
  8.19  The amounts that may be spent from this 
  8.20  appropriation for each purpose are as 
  8.21  follows: 
  8.22  (a) MA Basic Health Care Grants-
  8.23  Families and Children
  8.24  General             322,970,000   367,726,000
  8.25  [NOTICE ON CHANGES IN ASSET TEST.] The 
  8.26  commissioner shall provide a notice by 
  8.27  July 15, 1997, to all recipients 
  8.28  affected by the changes in this act in 
  8.29  asset standards for families with 
  8.30  children notifying them: 
  8.31  (1) what asset limits will apply to 
  8.32  them; 
  8.33  (2) when the new limits will apply; 
  8.34  (3) what options they have to spenddown 
  8.35  assets; and 
  8.36  (4) what options they have to enroll in 
  8.37  MinnesotaCare, including an explanation 
  8.38  of the MinnesotaCare premium structure. 
  8.39  (b) MA Basic Health Care Grants- 
  8.40  Elderly & Disabled
  8.41  General             337,659,000   400,408,000
  8.42  [PUBLIC HEALTH NURSE ASSESSMENT.] The 
  8.43  reimbursement for public health nurse 
  8.44  visits relating to the provision of 
  8.45  personal care services under Minnesota 
  8.46  Statutes, sections 256B.0625, 
  8.47  subdivision 19a, and 256B.0627, is 
  8.48  $204.36 for the initial assessment 
  8.49  visit and $102.18 for each reassessment 
  8.50  visit. 
  8.51  [SURCHARGE COMPLIANCE.] In the event 
  8.52  that federal financial participation in 
  8.53  the Minnesota medical assistance 
  9.1   program is reduced as a result of a 
  9.2   determination that Minnesota is out of 
  9.3   compliance with Public Law Number 
  9.4   102-234 or its implementing regulations 
  9.5   or with any other federal law designed 
  9.6   to restrict provider tax programs or 
  9.7   intergovernmental transfers, the 
  9.8   commissioner shall appeal the 
  9.9   determination to the fullest extent 
  9.10  permitted by law and may ratably reduce 
  9.11  all medical assistance and general 
  9.12  assistance medical care payments to 
  9.13  providers other than the state of 
  9.14  Minnesota in order to eliminate any 
  9.15  shortfall resulting from the reduced 
  9.16  federal funding.  Any amount later 
  9.17  recovered through the appeals process 
  9.18  shall be used to reimburse providers 
  9.19  for any ratable reductions taken. 
  9.20  [BLOOD PRODUCTS LITIGATION.] To the 
  9.21  extent permitted by federal law, 
  9.22  Minnesota Statutes, sections 256.015, 
  9.23  256B.042, 256B.056, and 256B.15 are 
  9.24  waived as necessary for the limited 
  9.25  purpose of resolving the state's claims 
  9.26  in connection with In re Factor VIII or 
  9.27  IX Concentrate Blood Products 
  9.28  Litigation, MDL-986, No. 93-C7452 
  9.29  (N.D.III.). 
  9.30  [DISTRIBUTION TO MEDICAL ASSISTANCE 
  9.31  PROVIDERS.] (a) Of the amount 
  9.32  appropriated to the medical assistance 
  9.33  account in fiscal year 1998, $5,000,000 
  9.34  plus the federal financial 
  9.35  participation amount shall be 
  9.36  distributed to medical assistance 
  9.37  providers according to the distribution 
  9.38  methodology of the medical education 
  9.39  research trust fund established under 
  9.40  Minnesota Statutes, section 62J.69. 
  9.41  (b) In fiscal year 1999, the prepaid 
  9.42  medical assistance and prepaid general 
  9.43  assistance medical care capitation rate 
  9.44  reduction amounts under Minnesota 
  9.45  Statutes, section 256B.69, subdivision 
  9.46  5c, and the federal financial 
  9.47  participation amount associated with 
  9.48  the medical assistance reduction, shall 
  9.49  be distributed to medical assistance 
  9.50  providers according to the distribution 
  9.51  methodology of the trust fund. 
  9.52  [AUGMENTATIVE AND ALTERNATIVE 
  9.53  COMMUNICATION SYSTEMS.] Augmentative 
  9.54  and alternative communication systems 
  9.55  and related components that are prior 
  9.56  authorized by the department through 
  9.57  pass through vendors during the period 
  9.58  from January 1, 1997, until the 
  9.59  augmentative and alternative 
  9.60  communication system purchasing program 
  9.61  or other alternatives are operational 
  9.62  shall be paid under the medical 
  9.63  assistance program at the actual price 
  9.64  charged the pass through vendor plus 20 
  9.65  percent to cover administrative costs 
  9.66  of prior authorization and billing and 
  9.67  shipping charges.  
 10.1   (c) General Assistance Medical Care
 10.2   General             173,469,000   170,370,000
 10.3   [HEALTH CARE ACCESS TRANSFERS TO 
 10.4   GENERAL FUND.] Funds shall be 
 10.5   transferred from the health care access 
 10.6   fund to the general fund in an amount 
 10.7   equal to the projected savings to 
 10.8   general assistance medical care (GAMC) 
 10.9   that would result from the transition 
 10.10  of GAMC parents and adults without 
 10.11  children to MinnesotaCare.  Based on 
 10.12  this projection, for state fiscal year 
 10.13  1998, the amount transferred from the 
 10.14  health care access fund to the general 
 10.15  fund shall be $13,700,000.  The amount 
 10.16  of transfer, if any, necessary for 
 10.17  state fiscal year 1999 shall be 
 10.18  determined on a pro rata basis. 
 10.19  [TUBERCULOSIS COST OF CARE.] Of the 
 10.20  general fund appropriation, $89,000 for 
 10.21  the biennium is for the cost of care 
 10.22  that is required to be paid by the 
 10.23  commissioner under Minnesota Statutes, 
 10.24  section 144.4872, to diagnose or treat 
 10.25  tuberculosis carriers. 
 10.26  Subd. 6.  Basic Health Care Management
 10.27  General              23,502,000    24,518,000
 10.28  [CONSUMER-OWNED HOUSING REVOLVING 
 10.29  ACCOUNT.] Effective the day following 
 10.30  final enactment, for the fiscal year 
 10.31  ending June 30, 1997, the commissioner 
 10.32  of human services may transfer $25,000 
 10.33  of the appropriation for basic health 
 10.34  care management to the commissioner of 
 10.35  the Minnesota housing finance agency to 
 10.36  establish an account to finance the 
 10.37  underwriting requirements of the 
 10.38  federal national mortgage association 
 10.39  pilot program for persons with 
 10.40  disabilities.  The Minnesota housing 
 10.41  finance agency may spend money from the 
 10.42  account for the purpose of assisting in 
 10.43  payment of delinquent mortgage payments 
 10.44  of persons participating in the federal 
 10.45  National Mortgage Association pilot 
 10.46  program for persons with disabilities.  
 10.47  Any unexpended balance in this account 
 10.48  does not cancel, but is available to 
 10.49  the commissioner of the Minnesota 
 10.50  housing finance agency for the ongoing 
 10.51  purposes of the account. 
 10.52  [PROVIDER REIMBURSEMENT FOR HEALTH CARE 
 10.53  SERVICES TO CRIME VICTIMS.] Of this 
 10.54  appropriation $25,000 each year is for 
 10.55  the commissioner to reimburse health 
 10.56  care providers for counseling, testing, 
 10.57  and early intervention services 
 10.58  provided to crime victims who requested 
 10.59  the services and who have experienced 
 10.60  significant exposure to the HIV virus, 
 10.61  as defined in Minnesota Statutes, 
 10.62  section 144.761, subdivision 7, as the 
 10.63  result of a crime. 
 11.1   (a) Health Care Policy Administration
 11.2   General               4,256,000     4,316,000
 11.3   [CONSUMER SATISFACTION SURVEY.] Any 
 11.4   federal matching money received through 
 11.5   the medical assistance program for the 
 11.6   consumer satisfaction survey is 
 11.7   appropriated to the commissioner for 
 11.8   this purpose.  The commissioner may 
 11.9   expend the federal money received for 
 11.10  the consumer satisfaction survey in 
 11.11  either year of the biennium. 
 11.12  (b) Health Care Operations
 11.13  General              19,246,000    20,202,000
 11.14  [PREPAID MEDICAL PROGRAMS.] The 
 11.15  nonfederal share of the prepaid medical 
 11.16  assistance program fund, which has been 
 11.17  appropriated to fund county managed 
 11.18  care advocacy and enrollment operating 
 11.19  costs, shall be disbursed as grants 
 11.20  using either a reimbursement or block 
 11.21  grant mechanism and may also be 
 11.22  transferred between grants and nongrant 
 11.23  administration costs with approval of 
 11.24  the commissioner of finance. 
 11.25  [SYSTEMS CONTINUITY.] In the event of 
 11.26  disruption of technical systems or 
 11.27  computer operations, the commissioner 
 11.28  may use available grant appropriations 
 11.29  to ensure continuity of payments for 
 11.30  maintaining the health, safety, and 
 11.31  well-being of clients served by 
 11.32  programs administered by the department 
 11.33  of human services.  Grant funds must be 
 11.34  used in a manner consistent with the 
 11.35  original intent of the appropriation. 
 11.36  Subd. 7.  State-Operated Services
 11.37  General             207,174,000   203,429,000
 11.38  The amounts that may be spent from this 
 11.39  appropriation for each purpose are as 
 11.40  follows: 
 11.41  (a) RTC Facilities
 11.42  General             193,647,000   188,883,000
 11.43  [MITIGATION RELATED TO DD DOWNSIZING 
 11.44  AND MH PILOTS.] Money appropriated to 
 11.45  finance mitigation expenses related to 
 11.46  the downsizing of regional treatment 
 11.47  center developmental disabilities 
 11.48  programs and the establishment of 
 11.49  mental health pilot projects may be 
 11.50  transferred between fiscal years within 
 11.51  the biennium. 
 11.52  [FUNDING FOR GRAVE MARKERS.] Of this 
 11.53  appropriation, $200,000 for the 
 11.54  biennium ending June 30, 1999, is for 
 11.55  the commissioner to fund markers with 
 11.56  the names of individuals whose graves 
 11.57  are located at regional treatment 
 11.58  centers.  This appropriation is 
 12.1   available only after reasonable efforts 
 12.2   have been made to acquire funds from 
 12.3   private sources to fund the markers, 
 12.4   and after the private funds collected, 
 12.5   if any, have been exhausted.  Of the 
 12.6   $200,000, $5,000 shall be transferred 
 12.7   to Advocating Change Together for a 
 12.8   public awareness campaign to increase 
 12.9   public knowledge of the issues 
 12.10  surrounding developmental disabilities 
 12.11  and to encourage private contributions 
 12.12  to assist in the completion of this 
 12.13  project. 
 12.14  [RTC CHEMICAL DEPENDENCY PROGRAMS.] 
 12.15  When the operations of the regional 
 12.16  treatment center chemical dependency 
 12.17  fund created in Minnesota Statutes, 
 12.18  section 246.18, subdivision 2, are 
 12.19  impeded by projected cash deficiencies 
 12.20  resulting from delays in the receipt of 
 12.21  grants, dedicated income, or other 
 12.22  similar receivables, and when the 
 12.23  deficiencies would be corrected within 
 12.24  the budget period involved, the 
 12.25  commissioner of finance may transfer 
 12.26  general fund cash reserves into this 
 12.27  account as necessary to meet cash 
 12.28  demands.  The cash flow transfers must 
 12.29  be returned to the general fund in the 
 12.30  fiscal year that the transfer was 
 12.31  made.  Any interest earned on general 
 12.32  fund cash flow transfers accrues to the 
 12.33  general fund and not the regional 
 12.34  treatment center chemical dependency 
 12.35  fund. 
 12.36  [SHORT-TERM TREATMENT PROGRAM.] The 
 12.37  commissioner shall report to the 
 12.38  legislature by January 15, 1998, with 
 12.39  recommendations on the establishment of 
 12.40  a short-term treatment program of less 
 12.41  than 45 days to be administered by the 
 12.42  Anoka regional center to serve persons 
 12.43  with mental illness.  The report must 
 12.44  include a plan to qualify the program 
 12.45  for medical assistance reimbursement 
 12.46  and estimates of the capital bonding 
 12.47  and ongoing funding necessary to 
 12.48  operate the program. 
 12.49  [RTC PILOT PROJECTS.] The commissioner 
 12.50  may authorize regional treatment 
 12.51  centers to enter into contracts with 
 12.52  health plans that provide services to 
 12.53  publicly funded clients to provide 
 12.54  services within the diagnostic 
 12.55  categories related to mental illness 
 12.56  and chemical dependency, provided that 
 12.57  the revenue is sufficient to cover 
 12.58  actual costs.  Regional treatment 
 12.59  centers may establish revenue-based 
 12.60  acute care services to be provided 
 12.61  under these contracts, separate from 
 12.62  the appropriation-based services 
 12.63  otherwise provided at the regional 
 12.64  treatment center.  The appropriation to 
 12.65  regional treatment centers may be used 
 12.66  to cover start-up costs related to 
 12.67  these services, offset by revenue.  The 
 12.68  commissioner, in conjunction with the 
 13.1   commissioner of administration, is 
 13.2   authorized to modify state contract 
 13.3   procedures that would otherwise impede 
 13.4   pilot projects in order for the 
 13.5   facility to participate in managed care 
 13.6   activities.  The commissioner may 
 13.7   delegate the execution of these 
 13.8   contracts to the chief executive 
 13.9   officer of the regional treatment 
 13.10  center.  The commissioner shall report 
 13.11  to the legislature by January 15, 1998, 
 13.12  on pilot project development and 
 13.13  implementation. 
 13.14  [CAMBRIDGE REGIONAL HUMAN SERVICES 
 13.15  CENTER.] (a) The commissioner shall 
 13.16  maintain capacity at Cambridge regional 
 13.17  human services center and shall 
 13.18  continue to provide residential and 
 13.19  crisis services at Cambridge for 
 13.20  persons with complex behavioral and 
 13.21  social problems committed by the courts 
 13.22  from the Faribault regional center and 
 13.23  Cambridge regional human services 
 13.24  center catchment areas.  Campus 
 13.25  programs shall operate with the aim of 
 13.26  facilitating the return of individuals 
 13.27  with clinically complex behavior and 
 13.28  social problems to community settings 
 13.29  and shall maintain sufficient support 
 13.30  services on campus as needed by the 
 13.31  programs. 
 13.32  (b) The commissioner shall develop and 
 13.33  present a plan and recommendations to 
 13.34  the legislature by January 15, 1998, 
 13.35  for the second phase of the Minnesota 
 13.36  extended treatment options (METO) 
 13.37  program at Cambridge regional human 
 13.38  services center to serve persons with 
 13.39  developmental disabilities who pose a 
 13.40  public risk.  Phase two shall increase 
 13.41  the on-campus program capacity of METO 
 13.42  by at least 36 additional beds, unless 
 13.43  program configuration changes are 
 13.44  agreed to by the affected exclusive 
 13.45  bargaining representative. 
 13.46  [RTC RESTRUCTURING.] For purposes of 
 13.47  restructuring the regional treatment 
 13.48  centers and state nursing homes, any 
 13.49  regional treatment center or state 
 13.50  nursing home employee whose position is 
 13.51  to be eliminated shall be afforded the 
 13.52  options provided in applicable 
 13.53  collective bargaining agreements.  All 
 13.54  salary and mitigation allocations from 
 13.55  fiscal year 1998 shall be carried 
 13.56  forward into fiscal year 1999.  
 13.57  Provided there is no conflict with any 
 13.58  collective bargaining agreement, any 
 13.59  regional treatment center or state 
 13.60  nursing home position reduction must 
 13.61  only be accomplished through 
 13.62  mitigation, attrition, transfer, and 
 13.63  other measures as provided in state or 
 13.64  applicable collective bargaining 
 13.65  agreements and in Minnesota Statutes, 
 13.66  section 252.50, subdivision 11, and not 
 13.67  through layoff. 
 14.1   [RTC POPULATION.] If the resident 
 14.2   population at the regional treatment 
 14.3   centers is projected to be higher than 
 14.4   the estimates upon which the medical 
 14.5   assistance forecast and budget 
 14.6   recommendations for the 1998-1999 
 14.7   biennium were based, the amount of the 
 14.8   medical assistance appropriation that 
 14.9   is attributable to the cost of services 
 14.10  that would have been provided as an 
 14.11  alternative to regional treatment 
 14.12  center services, including resources 
 14.13  for community placements and waivered 
 14.14  services for persons with mental 
 14.15  retardation and related conditions, is 
 14.16  transferred to the residential 
 14.17  facilities appropriation. 
 14.18  [REPAIRS AND BETTERMENTS.] The 
 14.19  commissioner may transfer unencumbered 
 14.20  appropriation balances between fiscal 
 14.21  years for the state residential 
 14.22  facilities repairs and betterments 
 14.23  account and special equipment. 
 14.24  [PROJECT LABOR.] Wages for project 
 14.25  labor may be paid by the commissioner 
 14.26  of human services out of repairs and 
 14.27  betterments money if the individual is 
 14.28  to be engaged in a construction project 
 14.29  or a repair project of short-term and 
 14.30  nonrecurring nature.  Compensation for 
 14.31  project labor shall be based on the 
 14.32  prevailing wage rates, as defined in 
 14.33  Minnesota Statutes, section 177.42, 
 14.34  subdivision 6.  Project laborers are 
 14.35  excluded from the provisions of 
 14.36  Minnesota Statutes, sections 43A.22 to 
 14.37  43A.30, and shall not be eligible for 
 14.38  state-paid insurance and benefits. 
 14.39  [STATE-OPERATED SERVICES CD 
 14.40  CONSOLIDATION.] Notwithstanding the 
 14.41  provisions of Minnesota Statutes, 
 14.42  section 246.0135, paragraph (a), the 
 14.43  commissioner may consolidate the 
 14.44  extended plus chemical dependency 
 14.45  program operated by Moose Lake Regional 
 14.46  State-Operated Services at Cambridge 
 14.47  and the chemical dependency program 
 14.48  operated by Anoka-Metro Regional 
 14.49  Treatment Center at the Anoka 
 14.50  location.  With the concurrence of the 
 14.51  affected bargaining unit 
 14.52  representatives, this consolidation may 
 14.53  commence upon the date following 
 14.54  enactment. 
 14.55  [DEVELOPMENT OF ADULT MENTAL HEALTH 
 14.56  PILOT PROJECTS.] The commissioner shall 
 14.57  ensure that exclusive bargaining 
 14.58  representatives are informed about and 
 14.59  allowed to participate in all aspects 
 14.60  of the development of adult mental 
 14.61  health pilot projects.  Prior to 
 14.62  authorizing additional funding for any 
 14.63  county adult mental health pilot 
 14.64  project, the commissioner shall give 
 14.65  written assurance to the affected 
 14.66  exclusive bargaining representatives 
 14.67  that the mental health pilot project: 
 15.1   (1) does not infringe on existing 
 15.2   collective bargaining agreements or the 
 15.3   relationships between public employees 
 15.4   and their employers; 
 15.5   (2) will effectively use bargaining 
 15.6   unit employees; and 
 15.7   (3) will foster cooperative and 
 15.8   constructive labor and management 
 15.9   practices under Minnesota Statutes, 
 15.10  chapters 43A and 179A. 
 15.11  [RTC STAFFING LEVELS.] In order to 
 15.12  maintain adequate staffing levels 
 15.13  during reallocations, downsizing, or 
 15.14  transfer of regional center nonfiscal 
 15.15  resources, the commissioner must ensure 
 15.16  that any reallocation of positions 
 15.17  between regional centers does not 
 15.18  reduce required staffing at regional 
 15.19  center programs for adults and 
 15.20  adolescents with mental illness. 
 15.21  Each regional treatment center serving 
 15.22  persons with mental illness must have a 
 15.23  written staffing plan based on program 
 15.24  services and treatment plans that are 
 15.25  required for individuals with mental 
 15.26  illness at the regional center using 
 15.27  standards established by the 
 15.28  commissioner.  The written plan must 
 15.29  include a detailed account of the 
 15.30  staffing needed at the regional center 
 15.31  for the following inpatient and other 
 15.32  psychiatric programs: 
 15.33  (1) acute inpatient; 
 15.34  (2) long-term inpatient; 
 15.35  (3) adolescent programs; and 
 15.36  (4) mobile and other crisis services 
 15.37  and transitional services. 
 15.38  If requested, the regional treatment 
 15.39  center chief executive officer must 
 15.40  provide the exclusive bargaining 
 15.41  representative or any other interested 
 15.42  party with a copy of the staffing plan. 
 15.43  If the exclusive bargaining 
 15.44  representative or another interested 
 15.45  party believes that actual staffing or 
 15.46  planned staffing for a regional 
 15.47  treatment center is not adequate to 
 15.48  provide necessary treatment, they may 
 15.49  request the ombudsman for mental health 
 15.50  and mental retardation to investigate, 
 15.51  report findings, and make 
 15.52  recommendations under Minnesota 
 15.53  Statutes, chapter 245.  If an 
 15.54  investigation is requested in light of 
 15.55  such circumstances, the report and 
 15.56  recommendations must be completed no 
 15.57  less than 30 days before an actual 
 15.58  reallocation, downsizing of staff, or 
 15.59  transfer of nonfiscal resources from a 
 15.60  regional treatment center. 
 16.1   By November 1, 1997, the commissioner 
 16.2   shall begin to develop regional 
 16.3   treatment center staffing plans for 
 16.4   inpatient and other psychiatric 
 16.5   programs.  The commissioner will 
 16.6   consult with representatives of 
 16.7   exclusive bargaining representatives 
 16.8   during the development of these plans.  
 16.9   By February 1, 1998, the commissioner 
 16.10  shall prepare and transmit to the 
 16.11  legislature a report of the staffing 
 16.12  level standards for regional treatment 
 16.13  centers.  The commissioner may also 
 16.14  recommend any changes in statute, 
 16.15  rules, and appropriations needed to 
 16.16  implement the recommendations. 
 16.17  (b) State-Operated Community
 16.18  Services - MI Adults 
 16.19  General               3,907,000     3,976,000
 16.20  (c) State-Operated Community 
 16.21  Services - DD
 16.22  General               9,620,000    10,570,000
 16.23  Subd. 8.  Continuing Care and 
 16.24  Community Support Grants
 16.25  General           1,097,832,000 1,165,926,000
 16.26  The amounts that may be spent from this 
 16.27  appropriation for each purpose are as 
 16.28  follows: 
 16.29  (a) Community Services Block Grants
 16.30      55,641,000     55,641,000 
 16.31  [CSSA TRADITIONAL APPROPRIATION.] 
 16.32  Notwithstanding Minnesota Statutes, 
 16.33  section 256E.06, subdivisions 1 and 2, 
 16.34  the appropriations available under that 
 16.35  section in fiscal years 1998 and 1999 
 16.36  must be distributed to each county 
 16.37  proportionately to the aid received by 
 16.38  the county in calendar year 1996.  The 
 16.39  commissioner, in consultation with 
 16.40  counties, shall study the formula 
 16.41  limitations in subdivision 2 of that 
 16.42  section, and report findings and any 
 16.43  recommendations for revision of the 
 16.44  CSSA formula and its formula limitation 
 16.45  provisions to the legislature by 
 16.46  January 15, 1998. 
 16.47  (b) Consumer Support Grants
 16.48       1,757,000      1,757,000 
 16.49  (c) Aging Adult Service Grants
 16.50       7,900,000      7,928,000 
 16.51  [OMBUDSMAN FOR OLDER MINNESOTANS.] Of 
 16.52  this appropriation, $150,000 in fiscal 
 16.53  year 1998 and $175,000 in fiscal year 
 16.54  1999 is for the board on aging's 
 16.55  ombudsman for older Minnesotans to 
 16.56  expand its activities relating to home 
 17.1   care services and other 
 17.2   noninstitutional services, and to 
 17.3   develop and implement a continuing 
 17.4   education program for ombudsman 
 17.5   volunteers.  This appropriation shall 
 17.6   become part of base-level funding for 
 17.7   the biennium beginning July 1, 1999. 
 17.8   [HEALTH INSURANCE COUNSELING.] (a) Of 
 17.9   this appropriation, $200,000 each year 
 17.10  is for the board on aging for the 
 17.11  purpose of health insurance counseling 
 17.12  and assistance grants to be awarded to 
 17.13  the area agencies on aging. 
 17.14  (b) Of the amount in paragraph (a), 
 17.15  $100,000 per year is for the area 
 17.16  agencies in regions participating in 
 17.17  the current health insurance counseling 
 17.18  pilot program.  The remaining funding 
 17.19  shall be distributed on a competitive 
 17.20  basis to area agencies on aging in 
 17.21  other regions based on criteria 
 17.22  developed jointly by the board on aging 
 17.23  and the area agencies on aging.  
 17.24  (c) The board shall explore 
 17.25  opportunities for obtaining alternative 
 17.26  funding from nonstate sources, 
 17.27  including contributions from 
 17.28  individuals seeking health insurance 
 17.29  counseling services. 
 17.30  [LIVING-AT-HOME/BLOCK NURSE PROGRAMS.] 
 17.31  Of this appropriation, $240,000 each 
 17.32  fiscal year is for the commissioner to 
 17.33  provide funding to 12 additional 
 17.34  living-at-home/block nurse programs; 
 17.35  $70,000 for the biennium is for the 
 17.36  commissioner to increase funding for 
 17.37  certain living-at-home/block nurse 
 17.38  programs so that funding for all 
 17.39  programs is at the same level for each 
 17.40  fiscal year; and $50,000 each fiscal 
 17.41  year is for the commissioner to provide 
 17.42  additional contract funding for the 
 17.43  organization awarded the contract for 
 17.44  the living-at-home/block nurse program. 
 17.45  [CONGREGATE AND HOME-DELIVERED MEALS.] 
 17.46  The supplemental funding for nutrition 
 17.47  programs serving counties where 
 17.48  congregate and home-delivered meals 
 17.49  were locally financed prior to 
 17.50  participation in the nutrition program 
 17.51  of the Older Americans Act shall be 
 17.52  awarded at no less than the same levels 
 17.53  as in fiscal year 1997. 
 17.54  [EPILEPSY LIVING SKILLS.] Of this 
 17.55  appropriation, $30,000 each year is for 
 17.56  the purposes of providing increased 
 17.57  funding for the living skills training 
 17.58  program for persons with intractable 
 17.59  epilepsy who need assistance in the 
 17.60  transition to independent living.  This 
 17.61  amount must be included in the base 
 17.62  amount for this program. 
 17.63  (d) Deaf and Hard-of-Hearing 
 17.64  Services Grants
 18.1        1,524,000      1,424,000 
 18.2   [ASSISTANCE DOGS.] Of this 
 18.3   appropriation, $50,000 for the biennium 
 18.4   is for the commissioner to provide 
 18.5   grants to Minnesota nonprofit 
 18.6   organizations that train or provide 
 18.7   assistance dogs for persons with 
 18.8   disabilities.  This appropriation shall 
 18.9   not become part of the base for the 
 18.10  biennium beginning July 1, 1999. 
 18.11  [GRANT FOR SERVICES TO DEAF-BLIND 
 18.12  CHILDREN AND PERSONS.] Of this 
 18.13  appropriation, $150,000 for the 
 18.14  biennium is for a grant to an 
 18.15  organization that provides services to 
 18.16  deaf-blind persons.  The grant must be 
 18.17  used to provide additional services to 
 18.18  deaf-blind children and their 
 18.19  families.  Such services may include 
 18.20  providing intervenors to assist 
 18.21  deaf-blind children in participating in 
 18.22  their communities, and family education 
 18.23  specialists to teach siblings and 
 18.24  parents skills to support the 
 18.25  deaf-blind child in the family.  The 
 18.26  commissioner shall use a 
 18.27  request-for-proposal process to award 
 18.28  the grants in this paragraph. 
 18.29  Of this appropriation, $150,000 for the 
 18.30  biennium is for a grant to an 
 18.31  organization that provides services to 
 18.32  deaf-blind persons.  The grant must be 
 18.33  used to provide assistance to 
 18.34  deaf-blind persons who are working 
 18.35  towards establishing and maintaining 
 18.36  independence.  The commissioner shall 
 18.37  use a request-for-proposal process to 
 18.38  award the grants in this paragraph. 
 18.39  An organization that receives a grant 
 18.40  under this provision may expend the 
 18.41  grant for any purpose authorized by 
 18.42  this provision, and in either year of 
 18.43  the biennium. 
 18.44  [GRANT FOR SERVICES TO DEAF PERSONS 
 18.45  WITH MENTAL ILLNESS.] Of this 
 18.46  appropriation, $100,000 the first year 
 18.47  and $50,000 the second year is for a 
 18.48  grant to a nonprofit agency that 
 18.49  currently serves deaf and 
 18.50  hard-of-hearing adults with mental 
 18.51  illness through residential programs 
 18.52  and supported housing outreach 
 18.53  activities.  The grant must be used to 
 18.54  continue or maintain community support 
 18.55  services for deaf and hard-of-hearing 
 18.56  adults with mental illness who use or 
 18.57  wish to use sign language as their 
 18.58  primary means of communication. 
 18.59  [ASSESSMENTS FOR DEAF, HARD-OF-HEARING 
 18.60  AND DEAF-BLIND CHILDREN.] Of this 
 18.61  appropriation, $150,000 each year is 
 18.62  for the commissioner to establish a 
 18.63  grant program for deaf, hard-of-hearing 
 18.64  and deaf-blind children in the state.  
 19.1   The grant program shall be used to 
 19.2   provide specialized statewide 
 19.3   psychological and social assessments, 
 19.4   family assessments, and school and 
 19.5   family consultation and training.  
 19.6   Services provided through this program 
 19.7   must be provided in cooperation with 
 19.8   the Minnesota resource center; the 
 19.9   department of children, families, and 
 19.10  learning; the St. Paul-Ramsey health 
 19.11  and wellness program serving deaf and 
 19.12  hard-of-hearing people; and greater 
 19.13  Minnesota community mental health 
 19.14  centers. 
 19.15  (e) Mental Health Grants
 19.16      48,796,000     49,896,000 
 19.17  [ADOLESCENT COMPULSIVE GAMBLING GRANT.] 
 19.18  $125,000 for fiscal year 1998 and 
 19.19  $125,000 for fiscal year 1999 shall be 
 19.20  transferred by the director of the 
 19.21  lottery from the lottery prize fund 
 19.22  created under Minnesota Statutes, 
 19.23  section 349A.10, subdivision 2, to the 
 19.24  general fund.  $125,000 for fiscal year 
 19.25  1998 and $125,000 for fiscal year 1999 
 19.26  is appropriated from the general fund 
 19.27  to the commissioner for the purposes of 
 19.28  a grant to a compulsive gambling 
 19.29  council located in St. Louis county for 
 19.30  a statewide compulsive gambling 
 19.31  prevention and education project for 
 19.32  adolescents. 
 19.33  [CAMP.] Of this appropriation, $30,000 
 19.34  for the biennium is from the mental 
 19.35  health special projects account, for 
 19.36  adults and children with mental illness 
 19.37  from across the state for a camping 
 19.38  program which utilizes the Boundary 
 19.39  Waters Canoe Area and is cooperatively 
 19.40  sponsored by client advocacy, mental 
 19.41  health treatment, and outdoor 
 19.42  recreation agencies. 
 19.43  (f) Developmental Disabilities
 19.44  Support Grants
 19.45       6,448,000      6,398,000 
 19.46  (g) Medical Assistance Long-Term 
 19.47  Care Waivers and Home Care
 19.48     249,512,000    299,186,000 
 19.49  [COUNTY WAIVERED SERVICES RESERVE.] 
 19.50  Notwithstanding the provisions of 
 19.51  Minnesota Statutes, section 256B.092, 
 19.52  subdivision 4, and Minnesota Rules, 
 19.53  part 9525.1830, subpart 2, the 
 19.54  commissioner may approve written 
 19.55  procedures and criteria for the 
 19.56  allocation of home- and community-based 
 19.57  waivered services funding for persons 
 19.58  with mental retardation or related 
 19.59  conditions which enables a county to 
 19.60  maintain a reserve resource account.  
 19.61  The reserve resource account may not 
 19.62  exceed five percent of the county 
 20.1   agency's total annual allocation of 
 20.2   home- and community-based waivered 
 20.3   services funds.  The reserve may be 
 20.4   utilized to ensure the county's ability 
 20.5   to meet the changing needs of current 
 20.6   recipients, to ensure the health and 
 20.7   safety needs of current recipients, or 
 20.8   to provide short-term emergency 
 20.9   intervention care to eligible waiver 
 20.10  recipients. 
 20.11  [REIMBURSEMENT INCREASES.] (a) 
 20.12  Effective for services rendered on or 
 20.13  after July 1, 1997, the commissioner 
 20.14  shall increase reimbursement or 
 20.15  allocation rates by five percent, and 
 20.16  county boards shall adjust provider 
 20.17  contracts as needed, for home and 
 20.18  community-based waiver services for 
 20.19  persons with mental retardation or 
 20.20  related conditions under Minnesota 
 20.21  Statutes, section 256B.501; home and 
 20.22  community-based waiver services for the 
 20.23  elderly under Minnesota Statutes, 
 20.24  section 256B.0915; community 
 20.25  alternatives for disabled individuals 
 20.26  waiver services under Minnesota 
 20.27  Statutes, section 256B.49; community 
 20.28  alternative care waiver services under 
 20.29  Minnesota Statutes, section 256B.49; 
 20.30  traumatic brain injury waiver services 
 20.31  under Minnesota Statutes, section 
 20.32  256B.49; nursing services and home 
 20.33  health services under Minnesota 
 20.34  Statutes, section 256B.0625, 
 20.35  subdivision 6a; personal care services 
 20.36  and nursing supervision of personal 
 20.37  care services under Minnesota Statutes, 
 20.38  section 256B.0625, subdivision 19a; 
 20.39  private duty nursing services under 
 20.40  Minnesota Statutes, section 256B.0625, 
 20.41  subdivision 7; day training and 
 20.42  habilitation services for adults with 
 20.43  mental retardation or related 
 20.44  conditions under Minnesota Statutes, 
 20.45  sections 252.40 to 252.47; physical 
 20.46  therapy services under Minnesota 
 20.47  Statutes, sections 256B.0625, 
 20.48  subdivision 8, and 256D.03, subdivision 
 20.49  4; occupational therapy services under 
 20.50  Minnesota Statutes, sections 256B.0625, 
 20.51  subdivision 8a, and 256D.03, 
 20.52  subdivision 4; speech-language therapy 
 20.53  services under Minnesota Statutes, 
 20.54  section 256D.03, subdivision 4, and 
 20.55  Minnesota Rules, part 9505.0390; 
 20.56  respiratory therapy services under 
 20.57  Minnesota Statutes, section 256D.03, 
 20.58  subdivision 4, and Minnesota Rules, 
 20.59  part 9505.0295; dental services under 
 20.60  Minnesota Statutes, sections 256B.0625, 
 20.61  subdivision 9, and 256D.03, subdivision 
 20.62  4; alternative care services under 
 20.63  Minnesota Statutes, section 256B.0913; 
 20.64  adult residential program grants under 
 20.65  Minnesota Rules, parts 9535.2000 to 
 20.66  9535.3000; adult and family community 
 20.67  support grants under Minnesota Rules, 
 20.68  parts 9535.1700 to 9535.1760; and 
 20.69  semi-independent living services under 
 20.70  Minnesota Statutes, section 252.275, 
 21.1   including SILS funding under county 
 21.2   social services grants formerly funded 
 21.3   under Minnesota Statutes, chapter 
 21.4   256I.  The commissioner shall also 
 21.5   increase prepaid medical assistance 
 21.6   program capitation rates as appropriate 
 21.7   to reflect the rate increases in this 
 21.8   paragraph.  Section 13, sunset of 
 21.9   uncodified language, does not apply to 
 21.10  this paragraph.  
 21.11  (b) It is the intention of the 
 21.12  legislature that the compensation 
 21.13  packages of staff within each service 
 21.14  be increased by five percent.  
 21.15  (h) Medical Assistance Long-Term
 21.16  Care Facilities
 21.17     570,291,000    598,115,000 
 21.18  [ICF/MR AND NURSING FACILITY 
 21.19  INFLATION.] The commissioner shall 
 21.20  grant inflation adjustments for nursing 
 21.21  facilities with rate years beginning 
 21.22  during the biennium according to 
 21.23  Minnesota Statutes, section 256B.431, 
 21.24  and shall grant inflation adjustments 
 21.25  for intermediate care facilities for 
 21.26  persons with mental retardation or 
 21.27  related conditions with rate years 
 21.28  beginning during the biennium according 
 21.29  to Minnesota Statutes, section 256B.501.
 21.30  [MORATORIUM EXCEPTIONS.] Of this 
 21.31  appropriation, $500,000 each year shall 
 21.32  be disbursed for the medical assistance 
 21.33  costs of moratorium exceptions approved 
 21.34  by the commissioner of health under 
 21.35  Minnesota Statutes, section 144A.073.  
 21.36  Unexpended money appropriated for 
 21.37  fiscal year 1998 does not cancel but is 
 21.38  available for fiscal year 1999.  
 21.39  (i) Alternative Care Grants  
 21.40  General              48,355,000    32,278,000
 21.41  [PREADMISSION SCREENING TRANSFER.] 
 21.42  Effective the day following final 
 21.43  enactment, up to $40,000 of the 
 21.44  appropriation for preadmission 
 21.45  screening and alternative care for 
 21.46  fiscal year 1997 may be transferred to 
 21.47  the health care administration account 
 21.48  to pay the state's share of county 
 21.49  claims for conducting nursing home 
 21.50  assessments for persons with mental 
 21.51  illness or mental retardation as 
 21.52  required by Public Law Number 100-203. 
 21.53  [ALTERNATIVE CARE TRANSFER.] Any money 
 21.54  allocated to the alternative care 
 21.55  program that is not spent for the 
 21.56  purposes indicated does not cancel but 
 21.57  shall be transferred to the medical 
 21.58  assistance account. 
 21.59  [PREADMISSION SCREENING AMOUNT.] The 
 21.60  preadmission screening payment to all 
 21.61  counties shall continue at the payment 
 22.1   amount in effect for fiscal year 1997. 
 22.2   [PAS/AC APPROPRIATION.] The 
 22.3   commissioner may expend the money 
 22.4   appropriated for preadmission screening 
 22.5   and the alternative care program for 
 22.6   these purposes in either year of the 
 22.7   biennium. 
 22.8   (j) Group Residential Housing
 22.9   General              65,974,000    69,562,000
 22.10  (k) Chemical Dependency
 22.11  Entitlement Grants
 22.12  General              36,634,000    38,741,000
 22.13  [CHEMICAL DEPENDENCY FUNDS TRANSFER.] 
 22.14  $11,340,000 from the consolidated 
 22.15  chemical dependency general reserve 
 22.16  fund available in fiscal year 1998 is 
 22.17  transferred to the general fund. 
 22.18  (l) Chemical Dependency 
 22.19  Nonentitlement Grants
 22.20  General               5,000,000     5,000,000
 22.21  Subd. 9.  Continuing Care and
 22.22  Community Support Management
 22.23  General              19,219,000    19,145,000
 22.24  State Government
 22.25  Special Revenue         111,000       112,000
 22.26  [REGION 10 QUALITY ASSURANCE 
 22.27  COMMISSION.] Of this appropriation, 
 22.28  $160,000 each year is for the 
 22.29  commissioner to allocate to the region 
 22.30  10 quality assurance commission for the 
 22.31  costs associated with the establishment 
 22.32  and operation of the quality assurance 
 22.33  pilot project, and for the commissioner 
 22.34  to provide grants to counties 
 22.35  participating in the alternative 
 22.36  quality assurance licensing system 
 22.37  under Minnesota Statutes, section 
 22.38  256B.0953.  $10,000 each year is for 
 22.39  the commissioner to contract with an 
 22.40  independent entity to conduct a 
 22.41  financial review under Minnesota 
 22.42  Statutes, section 256B.0955, paragraph 
 22.43  (e); and $5,000 each year is for the 
 22.44  commissioner to establish and implement 
 22.45  an ongoing evaluation process under 
 22.46  Minnesota Statutes, section 256B.0955, 
 22.47  paragraph (d).  This appropriation 
 22.48  shall not become part of base-level 
 22.49  funding for the biennium beginning July 
 22.50  1, 1999.  
 22.51  [JOINT PURCHASER DEMONSTRATION 
 22.52  PROJECT.] Of this appropriation, 
 22.53  $50,000 in fiscal year 1998 is for a 
 22.54  grant to the Goodhue and Wabasha public 
 22.55  health service board to be used for the 
 22.56  development and start-up operational 
 22.57  costs for a joint purchaser 
 22.58  demonstration project described in Laws 
 23.1   1995, chapter 207, article 6, section 
 23.2   119, in Goodhue and Wabasha counties.  
 23.3   This is a one-time appropriation and 
 23.4   shall not become part of the base for 
 23.5   the 2000-2001 biennial budget. 
 23.6   [PILOT PROJECT FOR ASSISTED LIVING 
 23.7   SERVICES FOR SENIOR CITIZENS IN PUBLIC 
 23.8   HOUSING.] Of this appropriation, 
 23.9   $75,000 in fiscal year 1998 is for a 
 23.10  pilot project to provide assisted 
 23.11  living services for unserved and 
 23.12  underserved frail elderly and disabled 
 23.13  persons with a focus on those who 
 23.14  experience language and cultural 
 23.15  barriers.  The project shall offer 
 23.16  frail elderly persons an opportunity to 
 23.17  receive community-based support 
 23.18  services in a public housing setting to 
 23.19  enable them to remain in their homes.  
 23.20  The project shall also serve younger 
 23.21  disabled persons on waiver programs who 
 23.22  live in public housing and would 
 23.23  otherwise be in nursing homes.  The 
 23.24  commissioner shall provide pilot 
 23.25  project funding to Hennepin county to 
 23.26  contract with the Korean service center 
 23.27  at the Cedars high-rises.  The center 
 23.28  shall agree to do the following: 
 23.29  (1) facilitate or provide needed 
 23.30  community support services while taking 
 23.31  advantage of current local, state, and 
 23.32  federal programs that provide services 
 23.33  to senior citizens and handicapped 
 23.34  individuals; 
 23.35  (2) negotiate appropriate agreements 
 23.36  with the Minneapolis public housing 
 23.37  authority and Hennepin county; 
 23.38  (3) ensure that all participants are 
 23.39  screened for eligibility for services 
 23.40  by Hennepin county; 
 23.41  (4) become a licensed home care service 
 23.42  provider or subcontract with a licensed 
 23.43  provider to deliver needed services; 
 23.44  (5) contract for meals to be provided 
 23.45  through its congregate dining program; 
 23.46  and 
 23.47  (6) form other partnerships as needed 
 23.48  to ensure the development of a 
 23.49  successful, culturally sensitive 
 23.50  program for meeting the needs of 
 23.51  Korean, Southeast Asian, and other 
 23.52  frail elderly and disabled persons 
 23.53  living in public housing in southeast 
 23.54  Minneapolis. 
 23.55  [PILOT PROJECT ON WOMEN'S MENTAL HEALTH 
 23.56  CRISIS SERVICES.] (a) Of this 
 23.57  appropriation, $200,000 in fiscal year 
 23.58  1998 is to develop a one-year pilot 
 23.59  project community-based crisis center 
 23.60  for women who are experiencing a mental 
 23.61  health crisis as a result of childhood 
 23.62  physical or sexual abuse.  The 
 23.63  commissioner shall provide pilot 
 24.1   project funding to Hennepin county to 
 24.2   contract with a four-bed adult foster 
 24.3   care facility to provide these services.
 24.4   (b) The commissioner shall apply to the 
 24.5   federal government for all necessary 
 24.6   waivers of medical assistance 
 24.7   requirements for funding of mental 
 24.8   health clinics so that the services in 
 24.9   paragraph (a) may be reimbursed by 
 24.10  medical assistance, upon legislative 
 24.11  approval, effective July 1, 1998. 
 24.12  [SNOW DAYS.] Of this appropriation, 
 24.13  $85,000 in fiscal year 1998 shall be 
 24.14  disbursed to reimburse day training and 
 24.15  habilitation providers for days during 
 24.16  which the provider was closed as a 
 24.17  result of severe weather conditions in 
 24.18  December 1996 to March 1997.  A day 
 24.19  training provider must request the aid 
 24.20  and provide relevant information to the 
 24.21  commissioner, including verfication of 
 24.22  the inability to make up days within 
 24.23  the provider's yearly budget program 
 24.24  calendar.  If the appropriation is 
 24.25  insufficient to reimburse for all 
 24.26  closed days reported by providers, the 
 24.27  commissioner shall disburse the funds 
 24.28  to those providers demonstrating the 
 24.29  greatest need, measured by the amount 
 24.30  of a provider's losses in proportion to 
 24.31  the provider's overall budget.  This 
 24.32  money shall be distributed no later 
 24.33  than September 15, 1997. 
 24.34  [DEVELOPMENTAL DISABILITIES PLANNING 
 24.35  GRANTS.] Of the appropriation for 
 24.36  developmental disabilities 
 24.37  demonstration projects, $125,000 in 
 24.38  fiscal year 1998 is for grants to 
 24.39  additional counties for planning 
 24.40  necessary to participate in the 
 24.41  projects. 
 24.42  Subd. 10.  Economic Support Grants
 24.43  General             223,031,000   208,140,000
 24.44  [GIFTS.] Notwithstanding Minnesota 
 24.45  Statutes, chapter 7, the commissioner 
 24.46  may accept on behalf of the state 
 24.47  additional funding from sources other 
 24.48  than state funds for the purpose of 
 24.49  financing the cost of assistance 
 24.50  program grants or nongrant 
 24.51  administration.  All additional funding 
 24.52  is appropriated to the commissioner for 
 24.53  use as designated by the grantee of 
 24.54  funding. 
 24.55  The amounts that may be spent from this 
 24.56  appropriation for each purpose are as 
 24.57  follows: 
 24.58  (a) Assistance to Families Grants
 24.59  General              89,412,000   110,571,000
 24.60  (b) Work Grants              
 25.1   General              13,966,000    13,892,000
 25.2   [NEW CHANCE PROGRAM.] Of this 
 25.3   appropriation, $280,000 for the 
 25.4   biennium is for a grant to the new 
 25.5   chance program.  The new chance program 
 25.6   shall provide comprehensive services 
 25.7   through a private, nonprofit agency to 
 25.8   young parents in Hennepin county who 
 25.9   have dropped out of school and are 
 25.10  receiving public assistance.  The 
 25.11  program administrator shall report 
 25.12  annually to the commissioner on skills 
 25.13  development, education, job training, 
 25.14  and job placement outcomes for program 
 25.15  participants.  This appropriation is 
 25.16  available for either year of the 
 25.17  biennium.  Base level funding for the 
 25.18  biennium beginning July 1, 1999, for 
 25.19  this program shall be $140,000 per year.
 25.20  (c) Minnesota Family 
 25.21  Investment Plan
 25.22  General              23,704,000       -0-  
 25.23  [WELFARE REFORM CARRYOVER.] Unexpended 
 25.24  grant funds for the statewide 
 25.25  implementation of the Minnesota family 
 25.26  investment program-statewide and 
 25.27  employment and training programs and 
 25.28  for the work first and work focused 
 25.29  pilot programs appropriated in fiscal 
 25.30  year 1998 for the implementation of 
 25.31  welfare reform initiatives do not 
 25.32  cancel and are available to the 
 25.33  commissioner for these purposes in 
 25.34  fiscal year 1999. 
 25.35  (d) Aid to Families With     
 25.36  Dependent Children
 25.37  General               7,695,000       -0- 
 25.38  [AFDC SUPPLEMENTARY GRANTS.] Of the 
 25.39  appropriation for AFDC, the 
 25.40  commissioner shall provide 
 25.41  supplementary grants not to exceed 
 25.42  $200,000 a year for AFDC until the AFDC 
 25.43  program no longer exists.  The 
 25.44  commissioner shall include the 
 25.45  following costs in determining the 
 25.46  amount of the supplementary grants:  
 25.47  major home repairs, repair of major 
 25.48  home appliances, utility recaps, 
 25.49  supplementary dietary needs not covered 
 25.50  by medical assistance, and replacements 
 25.51  of furnishings and essential major 
 25.52  appliances. 
 25.53  [CASH BENEFITS IN ADVANCE.] The 
 25.54  commissioner, with the advance approval 
 25.55  of the commissioner of finance, is 
 25.56  authorized to issue cash assistance 
 25.57  benefits up to three days before the 
 25.58  first day of each month, including 
 25.59  three days before the start of each 
 25.60  state fiscal year.  Of the money 
 25.61  appropriated for cash assistance grants 
 25.62  for each fiscal year, up to three 
 25.63  percent of the annual state 
 26.1   appropriation is available to the 
 26.2   commissioner in the previous fiscal 
 26.3   year.  If that amount is insufficient 
 26.4   for the costs incurred, an additional 
 26.5   amount of the appropriation as needed 
 26.6   may be transferred with the advance 
 26.7   approval of the commissioner of 
 26.8   finance.  This paragraph is effective 
 26.9   the day following final enactment. 
 26.10  (e) Child Support Enforcement
 26.11  General               5,427,000     5,009,000
 26.12  [CHILD SUPPORT PAYMENT CENTER.] 
 26.13  Payments to the commissioner from other 
 26.14  governmental units, private 
 26.15  enterprises, and individuals for 
 26.16  services performed by the child support 
 26.17  payment center must be deposited in the 
 26.18  state systems account authorized under 
 26.19  Minnesota Statutes, section 256.014.  
 26.20  These payments are appropriated to the 
 26.21  commissioner for the operation of the 
 26.22  child support payment center or system, 
 26.23  according to Minnesota Statutes, 
 26.24  section 256.014. 
 26.25  [CHILD SUPPORT PAYMENT CENTER 
 26.26  RECOUPMENT ACCOUNT.] The child support 
 26.27  payment center is authorized to 
 26.28  establish an account to cover checks 
 26.29  issued in error or in cases where 
 26.30  insufficient funds are available to pay 
 26.31  the checks.  All recoupments against 
 26.32  payments from the account must be 
 26.33  deposited in the child support payment 
 26.34  center recoupment account and are 
 26.35  appropriated to the commissioner for 
 26.36  the purposes of the account.  Any 
 26.37  unexpended balance in the account does 
 26.38  not cancel, but is available until 
 26.39  expended.  For the period June 1, 1997, 
 26.40  through June 30, 1997, the commissioner 
 26.41  may transfer fiscal year 1997 general 
 26.42  fund administrative money to the child 
 26.43  support payment center recoupment 
 26.44  account to cover underfinanced and 
 26.45  unfunded checks during this period 
 26.46  only.  This paragraph is effective the 
 26.47  day following final enactment. 
 26.48  [CHILD SUPPORT ENFORCEMENT CARRYOVER.] 
 26.49  Unexpended funds for child support 
 26.50  enforcement grants and county 
 26.51  performance incentives for fiscal year 
 26.52  1998 do not cancel but are available to 
 26.53  the commissioner for these purposes for 
 26.54  fiscal year 1999. 
 26.55  [CHILD SUPPORT ENFORCEMENT 
 26.56  APPROPRIATIONS.] Of this appropriation 
 26.57  for the biennium ending June 30, 1999, 
 26.58  the commissioner shall transfer: 
 26.59  $150,000 to the attorney general for 
 26.60  the continuation of the public 
 26.61  education campaign specified in 
 26.62  Minnesota Statutes, section 8.35; and 
 26.63  $68,000 to the attorney general for the 
 26.64  purposes specified in Minnesota 
 26.65  Statutes, section 518.575.  Any balance 
 27.1   remaining in the first year does not 
 27.2   cancel, but is available in the second 
 27.3   year. 
 27.4   (f) General Assistance
 27.5   General              55,650,000    49,404,000
 27.6   [GA STANDARD.] The commissioner shall 
 27.7   set the monthly standard of assistance 
 27.8   for general assistance units consisting 
 27.9   of an adult recipient who is childless 
 27.10  and unmarried or living apart from his 
 27.11  or her parents or a legal guardian at 
 27.12  $203.  The commissioner may reduce this 
 27.13  amount in accordance with Laws 1997, 
 27.14  chapter 85, article 3, section 54. 
 27.15  (g) Minnesota Supplemental Aid
 27.16  General              25,572,000    27,659,000
 27.17  (h) Refugee Services         
 27.18  General               1,605,000     1,605,000
 27.19  Subd. 11.  Economic Support  
 27.20  Management
 27.21  General              38,787,000    37,264,000
 27.22  The amounts that may be spent from this 
 27.23  appropriation for each purpose are as 
 27.24  follows: 
 27.25  (a) Economic Support Policy  
 27.26  Administration
 27.27  General              10,145,000     8,508,000
 27.28  [COMBINED MANUAL PRODUCTION COSTS.] The 
 27.29  commissioner may increase the fee 
 27.30  charged to, and may retain money 
 27.31  received from, individuals and private 
 27.32  entities in order to recover the 
 27.33  difference between the costs of 
 27.34  producing the department of human 
 27.35  services combined manual and the 
 27.36  subsidized price charged to individuals 
 27.37  and private entities on January 1, 
 27.38  1996.  This provision does not apply to 
 27.39  government agencies and nonprofit 
 27.40  agencies serving the legal or social 
 27.41  service needs of clients. 
 27.42  [PLAN FOR TRIBAL OPERATION OF FAMILY 
 27.43  ASSISTANCE PROGRAM.] Of this 
 27.44  appropriation, $75,000 each year is for 
 27.45  the commissioner to apportion to the 
 27.46  tribes to assist in the development of 
 27.47  a plan for providing state funds in 
 27.48  support of a family assistance program 
 27.49  administered by Indian tribes that have 
 27.50  a reservation in Minnesota and that 
 27.51  have federal approval to operate a 
 27.52  tribal program.  The commissioner and 
 27.53  the tribes shall collaborate in the 
 27.54  development of the plan.  The plan 
 27.55  shall be reported to the legislature no 
 27.56  later than February 15, 1998. 
 28.1   [ELIGIBILITY DETERMINATIONS FUNDING.] 
 28.2   Increased federal funds for the costs 
 28.3   of eligibility determination and other 
 28.4   permitted activities that are available 
 28.5   to the state through section 114 of the 
 28.6   Personal Responsibility and Work 
 28.7   Opportunity Reconciliation Act, Public 
 28.8   Law Number 104-193, are appropriated to 
 28.9   the commissioner. 
 28.10  (b) Economic Support Policy  
 28.11  Operations
 28.12  General              28,642,000    28,756,000
 28.13  [ELECTRONIC BENEFIT TRANSFER (EBT) 
 28.14  COUNTY ALLOCATION.] Of the amount 
 28.15  appropriated for electronic benefit 
 28.16  transfer, an allocation shall be made 
 28.17  each year to counties for EBT-related 
 28.18  expenses. One hundred percent of the 
 28.19  appropriation shall be allocated to 
 28.20  counties based on each county's average 
 28.21  monthly number of food stamp households 
 28.22  as a proportion of statewide average 
 28.23  monthly food stamp households for the 
 28.24  fiscal year ending June 30, 1996. 
 28.25  [FRAUD PREVENTION AND CONTROL FUNDING.] 
 28.26  Unexpended funds appropriated for the 
 28.27  provision of program integrity 
 28.28  activities for fiscal year 1998 are 
 28.29  also available to the commissioner to 
 28.30  fund fraud prevention and control 
 28.31  initiatives, and do not cancel but are 
 28.32  available to the commissioner for these 
 28.33  purposes for fiscal year 1999.  
 28.34  Unexpended funds may be transferred 
 28.35  between the fraud prevention 
 28.36  investigation program and fraud control 
 28.37  programs to promote the provisions of 
 28.38  Minnesota Statutes, sections 256.983 
 28.39  and 256.9861. 
 28.40  [TRIBAL OPERATION OF ASSISTANCE 
 28.41  PROGRAMS; FEASIBILITY CONSIDERED.] The 
 28.42  commissioner of human services, in 
 28.43  consultation with the federally- 
 28.44  recognized Indian tribes, the 
 28.45  commissioner of children, families, and 
 28.46  learning and the commissioner of 
 28.47  economic security, shall explore and 
 28.48  report to the legislature, by February 
 28.49  15, 1998, on the feasibility of having 
 28.50  the federally-recognized Indian tribes 
 28.51  administer or operate state and 
 28.52  federally funded programs such as 
 28.53  MFIP-S, diversionary assistance, food 
 28.54  stamps, general assistance, emergency 
 28.55  assistance, child support enforcement, 
 28.56  and child care assistance. The 
 28.57  exploration shall consider the state 
 28.58  and federal funding needed for the 
 28.59  programs under consideration. 
 28.60  [COUNTY AID FOR SUPPLEMENTAL HOUSING 
 28.61  ASSISTANCE PROGRAM.] (a) $960,000 is 
 28.62  appropriated to the commissioner for 
 28.63  fiscal year 1998 to be allocated to 
 28.64  counties for the county aid for 
 28.65  supplemental assistance program 
 29.1   (CASHAP).  CASHAP is a statewide 
 29.2   program to help meet the housing needs 
 29.3   of legal noncitizens residing in 
 29.4   Minnesota on August 22, 1996, who 
 29.5   qualified for and received a loan 
 29.6   secured by a mortgage on their 
 29.7   principal residence, based in part on 
 29.8   the expectation of continued receipt of 
 29.9   SSI benefits, and who are terminated 
 29.10  from SSI benefits under the Personal 
 29.11  Responsibility and Work Opportunity 
 29.12  Reconciliation Act of 1996, Public Law 
 29.13  Number 104-193. 
 29.14  (b) The appropriation in paragraph (a) 
 29.15  shall be allocated to county social 
 29.16  services agencies based on each 
 29.17  county's proportion of the total 
 29.18  statewide number of legal noncitizens 
 29.19  residing in Minnesota on August 22, 
 29.20  1996, who are terminated from SSI 
 29.21  benefits under Public Law Number 
 29.22  104-193.  County agencies shall use 
 29.23  their allocation of CASHAP funds to 
 29.24  help meet the long-term housing needs 
 29.25  of the legal noncitizens described in 
 29.26  paragraph (a). 
 29.27  (c) If at any time federal SSI benefits 
 29.28  are restored for the legal noncitizens 
 29.29  described in paragraph (a), the 
 29.30  commissioner shall direct the county 
 29.31  agencies to redetermine the eligibility 
 29.32  of those legal noncitizens for SSI 
 29.33  benefits, and convert all legal 
 29.34  noncitizens eligible for SSI benefits 
 29.35  to the SSI program and utilize 
 29.36  available federal funds for those 
 29.37  eligible persons.  Legal noncitizens 
 29.38  who are converted to federal benefit 
 29.39  status are not eligible for assistance 
 29.40  under CASHAP.  Legal noncitizens who 
 29.41  apply for assistance under CASHAP 
 29.42  subsequent to the date that the federal 
 29.43  government restores SSI benefits to 
 29.44  legal noncitizens must first be 
 29.45  screened for federal benefit 
 29.46  eligibility. 
 29.47  (d) Funds appropriated for CASHAP but 
 29.48  not expended in fiscal year 1998 do not 
 29.49  cancel to the general fund, but are 
 29.50  transferred to the MFIP-S/TANF reserve 
 29.51  account created under Minnesota 
 29.52  Statutes, section 256J.03. 
 29.53  Subd. 12.  Federal TANF Funds       
 29.54  [FEDERAL TANF FUNDS.] Federal Temporary 
 29.55  Assistance for Needy Families block 
 29.56  grant funds authorized under title I of 
 29.57  Public Law Number 104-193, the Personal 
 29.58  Responsibility and Work Opportunity 
 29.59  Reconciliation Act of 1996, are 
 29.60  appropriated to the commissioner in 
 29.61  amounts up to $276,741,000 in fiscal 
 29.62  year 1998 and $265,795,000 in fiscal 
 29.63  year 1999.  
 29.64  Sec. 3.  COMMISSIONER OF HEALTH 
 30.1   Subdivision 1.  Total 
 30.2   Appropriation                         72,642,000     71,996,000
 30.3                 Summary by Fund
 30.4   General              50,589,000    49,733,000
 30.5   Metropolitan 
 30.6   Landfill Contingency
 30.7   Action Fund             193,000       193,000
 30.8   State Government
 30.9   Special Revenue      21,860,000    22,070,000
 30.10  Minnesota Resources     150,000       -0-    
 30.11  [LANDFILL CONTINGENCY.] The 
 30.12  appropriation from the metropolitan 
 30.13  landfill contingency action fund is for 
 30.14  monitoring well water supplies and 
 30.15  conducting health assessments in the 
 30.16  metropolitan area. 
 30.17  Subd. 2.  Health Systems
 30.18  and Special Populations               48,517,000     48,233,000
 30.19                Summary by Fund
 30.20  General              39,295,000    38,998,000
 30.21  State Government
 30.22  Special Revenue       9,222,000     9,235,000
 30.23  [FEES; DRUG AND ALCOHOL COUNSELOR 
 30.24  LICENSE.] When setting fees for the 
 30.25  drug and alcohol counselor license, the 
 30.26  department is exempt from Minnesota 
 30.27  Statutes, section 16A.1285, subdivision 
 30.28  2. 
 30.29  [STATE VITAL STATISTICS REDESIGN 
 30.30  PROJECT ACCOUNT.] The amount 
 30.31  appropriated from the state government 
 30.32  special revenue fund for the vital 
 30.33  records redesign project shall be 
 30.34  available until expended for 
 30.35  development and implementation. 
 30.36  [WIC PROGRAM.] Of this appropriation, 
 30.37  $650,000 in 1998 is provided to 
 30.38  maintain services of the program, 
 30.39  $700,000 in 1998 and $700,000 in 1999 
 30.40  is added to the base level funding for 
 30.41  the WIC food program in order to 
 30.42  maintain the existing level of the 
 30.43  program, and $100,000 in 1998 is for 
 30.44  the commissioner to develop and 
 30.45  implement an outreach program to 
 30.46  apprise potential recipients of the WIC 
 30.47  food program of the importance of good 
 30.48  nutrition and the availability of the 
 30.49  program. 
 30.50  [WIC TRANSFERS.] General fund 
 30.51  appropriations for the women, infants, 
 30.52  and children (WIC) food supplement 
 30.53  program are available for either year 
 30.54  of the biennium.  Transfers of 
 30.55  appropriations between fiscal years 
 30.56  must be for the purpose of maximizing 
 30.57  federal funds or minimizing 
 31.1   fluctuations in the number of 
 31.2   participants.  
 31.3   [LOCAL PUBLIC HEALTH FINANCING.] Of the 
 31.4   general fund appropriation, $5,000,000 
 31.5   each year shall be disbursed for local 
 31.6   public health financing and shall be 
 31.7   distributed according to the community 
 31.8   health service subsidy formula in 
 31.9   Minnesota Statutes, section 145A.13.  
 31.10  [MINNESOTA CHILDREN WITH SPECIAL HEALTH 
 31.11  NEEDS CARRYOVER.] General fund 
 31.12  appropriations for treatment services 
 31.13  in the services for children with 
 31.14  special health care needs program are 
 31.15  available for either year of the 
 31.16  biennium. 
 31.17  [HEALTH CARE ASSISTANCE FOR DISABLED 
 31.18  CHILDREN INELIGIBLE FOR SSI.] 
 31.19  Notwithstanding the requirements of 
 31.20  Minnesota Rules, part 4705.0100, 
 31.21  subpart 14, children who:  (a) are 
 31.22  eligible for medical assistance as of 
 31.23  June 30, 1997, and become ineligible 
 31.24  for medical assistance due to changes 
 31.25  in supplemental security income 
 31.26  disability standards for children 
 31.27  enacted in (PRWORA) Public Law Number 
 31.28  104-193; and (b) are not eligible for 
 31.29  MinnesotaCare, are eligible for health 
 31.30  care services through Minnesota 
 31.31  services for children with special 
 31.32  health care needs under Minnesota 
 31.33  Rules, parts 4705.0100 to 4705.1600 for 
 31.34  the fiscal year ending June 30, 1998, 
 31.35  until eligibility for medical 
 31.36  assistance is reestablished.  The 
 31.37  commissioner of health shall report to 
 31.38  the legislature by March 1, 1998, on 
 31.39  the number of children eligible under 
 31.40  this provision, their health care 
 31.41  needs, family income as a percentage of 
 31.42  the federal poverty level, the extent 
 31.43  to which families have employer-based 
 31.44  health coverage, and recommendations on 
 31.45  how to meet the future needs of 
 31.46  children eligible under this provision. 
 31.47  [AMERICAN INDIAN DIABETES.] Of this 
 31.48  appropriation, $90,000 each year shall 
 31.49  be disbursed for a comprehensive 
 31.50  school-based intervention program 
 31.51  designed to reduce the risk factors 
 31.52  associated with diabetes among American 
 31.53  Indian school children in grades 1 
 31.54  through 4. The appropriation for 1998 
 31.55  may be carried forward to 1999.  The 
 31.56  appropriation for fiscal year 1999 is 
 31.57  available only if matched by $1 of 
 31.58  nonstate money for each $1 of the 
 31.59  appropriation and may be expended in 
 31.60  either year of the biennium.  The 
 31.61  commissioner shall convene an American 
 31.62  Indian diabetes prevention advisory 
 31.63  task force.  The task force must 
 31.64  include representatives from the 
 31.65  American Indian tribes located in the 
 31.66  state and urban American Indian 
 31.67  representatives.  The task force shall 
 32.1   advise the commissioner on the 
 32.2   adaptation of curricula and the 
 32.3   dissemination of information designed 
 32.4   to reduce the risk factors associated 
 32.5   with diabetes among American Indian 
 32.6   school children in grades 1 through 4.  
 32.7   The curricula and information must be 
 32.8   sensitive to traditional American 
 32.9   Indian values and culture and must 
 32.10  encourage full participation by the 
 32.11  American Indian community. 
 32.12  [HOME VISITING PROGRAMS.] (a) Of this 
 32.13  appropriation, $140,000 in 1998 and 
 32.14  $870,000 in 1999 is for the home 
 32.15  visiting programs for infant care under 
 32.16  Minnesota Statutes, section 145A.16.  
 32.17  These amounts are available until June 
 32.18  30, 1999. 
 32.19  (b) Of this appropriation, $225,000 in 
 32.20  1998 and $180,000 in 1999 is to 
 32.21  continue funding the home visiting 
 32.22  programs that received one-year funding 
 32.23  under Laws 1995, chapter 480, article 
 32.24  1, section 9.  This amount is available 
 32.25  until expended. 
 32.26  [FETAL ALCOHOL SYNDROME.] Of the 
 32.27  general fund appropriation, $625,000 
 32.28  each year of the biennium shall be 
 32.29  disbursed to prevent and reduce harm 
 32.30  from fetal alcohol syndrome and fetal 
 32.31  alcohol effect.  
 32.32  [COMPLAINT INVESTIGATIONS.] Of the 
 32.33  appropriation, $127,000 each year from 
 32.34  the state government special revenue 
 32.35  fund, and $75,000 each year from the 
 32.36  general fund, is for the commissioner 
 32.37  to conduct complaint investigations of 
 32.38  nursing facilities, hospitals and home 
 32.39  health care providers. 
 32.40  [COMPLEMENTARY MEDICINE STUDY.] (a) Of 
 32.41  the general fund appropriation, $20,000 
 32.42  in fiscal year 1998 shall be disbursed 
 32.43  for the commissioner of health, in 
 32.44  consultation with the commissioner of 
 32.45  commerce, to conduct a study based on 
 32.46  existing literature, information, and 
 32.47  data on the scope of complementary 
 32.48  medicine offered in this state.  The 
 32.49  commissioner shall: 
 32.50  (1) include the types of complementary 
 32.51  medicine therapies available in this 
 32.52  state; 
 32.53  (2) contact national and state 
 32.54  complementary medicine associations for 
 32.55  literature, information, and data; 
 32.56  (3) conduct a general literary review 
 32.57  for information and data on 
 32.58  complementary medicine; 
 32.59  (4) contact the departments of commerce 
 32.60  and human services for information on 
 32.61  existing registrations, licenses, 
 32.62  certificates, credentials, policies, 
 33.1   and regulations; and 
 33.2   (5) determine by sample, if 
 33.3   complementary medicine is currently 
 33.4   covered by health plan companies and 
 33.5   the extent of the coverage. 
 33.6   In conducting this review, the 
 33.7   commissioner shall consult with the 
 33.8   office of alternative medicine through 
 33.9   the National Institute of Health. 
 33.10  (b) The commissioner shall, in 
 33.11  consultation with the advisory 
 33.12  committee, report the study findings to 
 33.13  the legislature by January 15, 1998.  
 33.14  As part of the report, the commissioner 
 33.15  shall make recommendations on whether 
 33.16  the state should credential or regulate 
 33.17  any of the complementary medicine 
 33.18  providers. 
 33.19  (c) The commissioner shall appoint an 
 33.20  advisory committee to provide expertise 
 33.21  and advice on the study.  The committee 
 33.22  must include representation from the 
 33.23  following groups:  health care 
 33.24  providers, including providers of 
 33.25  complementary medicine; health plan 
 33.26  companies; and consumers.  The advisory 
 33.27  committee is governed by Minnesota 
 33.28  Statutes, section 15.059, for 
 33.29  membership terms and removal of members.
 33.30  (d) For purposes of this study, the 
 33.31  term "complementary medicine" includes, 
 33.32  but is not limited to, acupuncture, 
 33.33  homeopathy, manual healing, 
 33.34  macrobiotics, naturopathy, biofeedback, 
 33.35  mind/body control therapies, 
 33.36  traditional and ethnomedicine 
 33.37  therapies, structural manipulations and 
 33.38  energetic therapies, bioelectromagnetic 
 33.39  therapies, and herbal medicine. 
 33.40  [DOWN'S SYNDROME.] Of the general fund 
 33.41  appropriation, $15,000 in fiscal year 
 33.42  1998 shall be disbursed for a grant to 
 33.43  a nonprofit organization that provides 
 33.44  support to individuals with Down's 
 33.45  Syndrome and their families, for the 
 33.46  purpose of providing all obstetricians, 
 33.47  certified nurse-midwives, and family 
 33.48  physicians licensed to practice in this 
 33.49  state with informational packets on 
 33.50  Down's Syndrome.  The packets must 
 33.51  include, at a minimum, a fact sheet on 
 33.52  Down's Syndrome, a list of counseling 
 33.53  and support groups for families with 
 33.54  children with Down's Syndrome, and a 
 33.55  list of special needs adoption 
 33.56  resources.  The informational packets 
 33.57  must be made available to any pregnant 
 33.58  patient who has tested positive for 
 33.59  Down's Syndrome, either through a 
 33.60  screening test or amniocentesis. 
 33.61  [NEWBORN SCREENING FOR HEARING LOSS 
 33.62  PROGRAM IMPLEMENTATION PLAN.] (a) Of 
 33.63  the general fund appropriation, $18,000 
 33.64  in fiscal year 1998 shall be disbursed 
 34.1   to pay the costs of coordinating with 
 34.2   hospitals, the medical community, 
 34.3   audiologists, insurance companies, 
 34.4   parents, and deaf and hard-of-hearing 
 34.5   citizens to establish and implement a 
 34.6   voluntary plan for hospitals and other 
 34.7   health care facilities to screen all 
 34.8   infants for hearing loss. 
 34.9   (b) The plan to achieve universal 
 34.10  screening of infants for hearing loss 
 34.11  on a voluntary basis shall be 
 34.12  formulated by a department work group, 
 34.13  including the following representatives:
 34.14  (1) a representative of the health 
 34.15  insurance industry designated by the 
 34.16  health insurance industry; 
 34.17  (2) a representative of the Minnesota 
 34.18  Hospital and Healthcare Partnership; 
 34.19  (3) a total of two representatives from 
 34.20  the following physician groups 
 34.21  designated by the Minnesota Medical 
 34.22  Association:  pediatrics, family 
 34.23  practice, and ENT; 
 34.24  (4) two audiologists designated by the 
 34.25  Minnesota Speech-Language-Hearing 
 34.26  Association and the Minnesota Academy 
 34.27  of Audiology; 
 34.28  (5) a representative of hospital 
 34.29  neonatal nurseries; 
 34.30  (6) a representative of part H (IDEA) 
 34.31  early childhood special education; 
 34.32  (7) the commissioner of health or a 
 34.33  designee; 
 34.34  (8) a representative of the department 
 34.35  of human services; 
 34.36  (9) a public health nurse; 
 34.37  (10) a parent of a deaf or 
 34.38  hard-of-hearing child; 
 34.39  (11) a deaf or hard-of-hearing person; 
 34.40  and 
 34.41  (12) a representative of the Minnesota 
 34.42  commission serving deaf and 
 34.43  hard-of-hearing people. 
 34.44  Members of the work group shall not 
 34.45  collect a per diem or compensation as 
 34.46  provided in Minnesota Statutes, section 
 34.47  15.0575. 
 34.48  (c) The plan shall include measurable 
 34.49  goals and timetables for the 
 34.50  achievement of universal screening of 
 34.51  infants for hearing loss throughout the 
 34.52  state and shall include the design and 
 34.53  implementation of needed training to 
 34.54  assist hospitals and other health care 
 34.55  facilities screen infants for hearing 
 34.56  loss according to recognized standards 
 35.1   of care. 
 35.2   (d) The work group shall report to the 
 35.3   legislature by January 15, 1998, 
 35.4   concerning progress toward the 
 35.5   achievement of universal screening of 
 35.6   infants in Minnesota for the purpose of 
 35.7   assisting the legislature to determine 
 35.8   whether this goal can be accomplished 
 35.9   on a voluntary basis. 
 35.10  [INFANT HEARING SCREENING PROGRAM.] Of 
 35.11  the general fund appropriation, $25,000 
 35.12  in fiscal year 1998 shall be disbursed 
 35.13  for a grant to a hospital in Staples, 
 35.14  Minnesota, for the infant hearing 
 35.15  screening program. 
 35.16  [NURSING HOMES DAMAGED BY FLOODS.] The 
 35.17  commissioner shall conduct an expedited 
 35.18  process under Minnesota Statutes, 
 35.19  section 144A.073, solely to review 
 35.20  nursing home moratorium exceptions 
 35.21  necessary to repair or replace nursing 
 35.22  facilities damaged by spring flooding 
 35.23  in 1997.  The commissioner may not 
 35.24  issue a request for proposals for 
 35.25  moratorium projects not related to 
 35.26  spring flooding until this expedited 
 35.27  process is completed.  For facilities 
 35.28  that require total replacement and the 
 35.29  relocation of residents to other 
 35.30  facilities during construction, the 
 35.31  operating cost payment rates for the 
 35.32  new facility shall be determined using 
 35.33  the interim and settle-up payment 
 35.34  provisions of Minnesota Rules, part 
 35.35  9549.0057, and the reimbursement 
 35.36  provisions of Minnesota Statutes, 
 35.37  section 256B.431, except that 
 35.38  subdivision 25, paragraphs (b), clause 
 35.39  (3), and (d), shall not apply until the 
 35.40  second rate year after the settle-up 
 35.41  cost report is filed.  Property-related 
 35.42  reimbursement rates shall be determined 
 35.43  under Minnesota Rules, chapter 9549, 
 35.44  taking into account any federal or 
 35.45  state flood-related loans or grants 
 35.46  provided to a facility.  The medical 
 35.47  assistance costs of this paragraph 
 35.48  shall be paid from the amount made 
 35.49  available in section 2 of this article 
 35.50  for moratorium exceptions.  This 
 35.51  paragraph is effective the day 
 35.52  following final enactment and is not 
 35.53  subject to section 13 of this article. 
 35.54  Subd. 3.  Health Protection          20,875,000     20,588,000
 35.55                Summary by Fund
 35.56  General               8,202,000     7,718,000
 35.57  Metro Landfill
 35.58  Contingency             193,000       193,000
 35.59  State Government 
 35.60  Special Revenue      12,480,000    12,677,000
 35.61  [HIV/AIDS PREVENTION.] (a) Of the 
 35.62  general fund appropriation, $500,000 in 
 36.1   fiscal year 1998 shall be disbursed to 
 36.2   provide funding for HIV/AIDS prevention 
 36.3   grants under Minnesota Statutes, 
 36.4   section 145.924.  
 36.5   (b) Of the general fund appropriation, 
 36.6   $100,000 each year shall be disbursed 
 36.7   for activities related to prevention of 
 36.8   perinatal transmission of HIV, a 
 36.9   statewide education campaign for 
 36.10  pregnant women and their health care 
 36.11  providers, and demonstration grants to 
 36.12  providers to develop procedures for 
 36.13  incorporating HIV awareness and 
 36.14  education into perinatal care. 
 36.15  (c) The appropriations in paragraphs 
 36.16  (a) and (b) shall not become part of 
 36.17  base-level funding for the biennium 
 36.18  beginning July 1, 1999. 
 36.19  [PLAN AND EVALUATION REQUIRED.] Of this 
 36.20  appropriation, $100,000 for the 
 36.21  biennium is for the commissioner to 
 36.22  plan for and evaluate the effects of 
 36.23  Minnesota Statutes, sections 151.40, 
 36.24  subdivision 18, paragraph (b), 
 36.25  325F.785, and 145.924.  The 
 36.26  commissioner shall submit an interim 
 36.27  report to the legislature by January 
 36.28  15, 1998, including a plan for 
 36.29  implementing the syringe access 
 36.30  initiative to prevent HIV as authorized 
 36.31  in Minnesota Statutes, sections 151.40, 
 36.32  325F.785, and 145.924.  The plan shall 
 36.33  include, but not be limited to, 
 36.34  strategies for coordinating the efforts 
 36.35  of the commissioner, community health 
 36.36  organizations, community-based HIV 
 36.37  service organizations, pharmacists, and 
 36.38  sellers as defined in Minnesota 
 36.39  Statutes, section 325F.785, and others 
 36.40  to provide information about the 
 36.41  prevention initiative, to maximize 
 36.42  opportunities to make referrals to 
 36.43  health services, to collect used 
 36.44  syringes, and to evaluate the 
 36.45  initiative's impact.  A final report, 
 36.46  including evaluation, is due by January 
 36.47  15, 2002.  The commissioner may seek 
 36.48  funding from federal, local, and 
 36.49  private sources for this purpose.  The 
 36.50  reports shall be presented to the house 
 36.51  judiciary and health and human services 
 36.52  committees and to the senate crime 
 36.53  prevention and health and family 
 36.54  security committees. 
 36.55  Subd. 4.  Management and
 36.56  Support Services                       3,250,000      3,175,000
 36.57                Summary by Fund
 36.58  General               3,092,000     3,017,000
 36.59  State Government
 36.60  Special Revenue         158,000       158,000
 36.61  [HEALTH DEPARTMENT COMPUTER PROJECTS.] 
 36.62  Money appropriated for computer 
 36.63  projects approved by the information 
 37.1   policy office, funded by the 
 37.2   legislature, and approved by the 
 37.3   commissioner of finance does not cancel 
 37.4   but is available for development and 
 37.5   implementation. 
 37.6   [HOSPITAL CONVERSION.] Of the 
 37.7   appropriation from the general fund, 
 37.8   for the fiscal year ending June 30, 
 37.9   1998, the commissioner of health shall 
 37.10  provide $75,000 to a 28-bed hospital 
 37.11  located in Chisago county that is in 
 37.12  the process of closing and converting 
 37.13  to an outpatient and emergency services 
 37.14  facility, for the facility's EMS and 
 37.15  advanced life support services. 
 37.16  Sec. 4.  VETERANS NURSING   
 37.17  HOMES BOARD                           21,489,000     22,272,000 
 37.18  [SPECIAL REVENUE ACCOUNT.] The general 
 37.19  fund appropriations made to the 
 37.20  veterans homes board shall be 
 37.21  transferred to a veterans homes special 
 37.22  revenue account in the special revenue 
 37.23  fund in the same manner as other 
 37.24  receipts are deposited according to 
 37.25  Minnesota Statutes, section 198.34, and 
 37.26  are appropriated to the veterans homes 
 37.27  board of directors for the operation of 
 37.28  board facilities and programs. 
 37.29  [SETTING THE COST OF CARE.] The 
 37.30  veterans homes board may set the cost 
 37.31  of care at the Fergus Falls facility 
 37.32  for fiscal year 1998 based on the cost 
 37.33  of average skilled nursing care 
 37.34  provided to residents of the 
 37.35  Minneapolis veterans home for fiscal 
 37.36  year 1998.  The board may set the cost 
 37.37  of care at the Fergus Falls facilities 
 37.38  for fiscal year 1999 based on the cost 
 37.39  of average skilled nursing care for 
 37.40  residents of the Minneapolis veterans 
 37.41  home for fiscal year 1999. 
 37.42  [LICENSED CAPACITY.] The department of 
 37.43  health shall not reduce the licensed 
 37.44  bed capacity for the Minneapolis 
 37.45  veterans home pending completion of the 
 37.46  project authorized by Laws 1990, 
 37.47  chapter 610, article 1, section 9, 
 37.48  subdivision 3. 
 37.49  [ALLOWANCE FOR FOOD.] The allowance for 
 37.50  food may be adjusted annually to 
 37.51  reflect changes in the producer price 
 37.52  index, as prepared by the United States 
 37.53  Bureau of Labor Statistics, with the 
 37.54  approval of the commissioner of 
 37.55  finance.  Adjustments for fiscal year 
 37.56  1998 and fiscal year 1999 must be based 
 37.57  on the June 1996 and June 1997 producer 
 37.58  price index respectively, but the 
 37.59  adjustment must be prorated if it would 
 37.60  require money in excess of the 
 37.61  appropriation. 
 37.62  Sec. 5.  HEALTH-RELATED BOARDS 
 37.63  Subdivision 1.  Total       
 38.1   Appropriation                          9,598,000      9,618,000 
 38.2   [STATE GOVERNMENT SPECIAL REVENUE 
 38.3   FUND.] The appropriations in this 
 38.4   section are from the state government 
 38.5   special revenue fund. 
 38.6   [NO SPENDING IN EXCESS OF REVENUES.] 
 38.7   The commissioner of finance shall not 
 38.8   permit the allotment, encumbrance, or 
 38.9   expenditure of money appropriated in 
 38.10  this section in excess of the 
 38.11  anticipated biennial revenues or 
 38.12  accumulated surplus revenues from fees 
 38.13  collected by the boards.  Neither this 
 38.14  provision nor Minnesota Statutes, 
 38.15  section 214.06, applies to transfers 
 38.16  from the general contingent account. 
 38.17  Subd. 2.  Board of Chiropractic 
 38.18  Examiners                                332,000        340,000
 38.19  Subd. 3.  Board of Dentistry             742,000        760,000
 38.20  Subd. 4.  Board of Dietetic
 38.21  and Nutrition Practice                    90,000         90,000
 38.22  Subd. 5.  Board of Marriage and 
 38.23  Family Therapy                           103,000        104,000
 38.24  Subd. 6.  Board of Medical  
 38.25  Practice                               3,672,000      3,711,000
 38.26  [HEALTH PROFESSIONAL SERVICES 
 38.27  ACTIVITY.] Of these appropriations, 
 38.28  $291,000 the first year and $296,000 
 38.29  the second year are for the Health 
 38.30  Professional Services Activity. 
 38.31  Subd. 7.  Board of Nursing             2,067,000      2,106,000
 38.32  [DISCIPLINE AND LICENSING SYSTEMS 
 38.33  PROJECT.] Of this appropriation, 
 38.34  $235,000 the first year and $235,000 
 38.35  the second year is to complete the 
 38.36  implementation of the discipline and 
 38.37  licensing systems project. 
 38.38  Subd. 8.  Board of Nursing 
 38.39  Home Administrators                      177,000        181,000
 38.40  Subd. 9.  Board of Optometry              82,000         85,000
 38.41  Subd. 10.  Board of Pharmacy           1,020,000      1,040,000
 38.42  [ADMINISTRATIVE SERVICES UNIT.] Of this 
 38.43  appropriation, $216,000 the first year 
 38.44  and $222,000 the second year are for 
 38.45  the health boards administrative 
 38.46  services unit.  The administrative 
 38.47  services unit may receive and expend 
 38.48  reimbursements for services performed 
 38.49  for other agencies. 
 38.50  Subd. 11.  Board of Podiatry              33,000         33,000
 38.51  Subd. 12.  Board of Psychology           424,000        436,000
 38.52  Subd. 13.  Board of Social Work          715,000        588,000
 38.53  Subd. 14.  Board of Veterinary 
 39.1   Medicine                                 141,000        144,000
 39.2   Sec. 6.  EMERGENCY MEDICAL
 39.3   SERVICES BOARD                         2,494,000      2,262,000 
 39.4                 Summary by Fund
 39.5   General                 842,000       584,000
 39.6   Trunk Highway         1,652,000     1,678,000
 39.7   [COMPREHENSIVE ADVANCED LIFE SUPPORT 
 39.8   (CALS).] Of this appropriation, 
 39.9   $200,000 in fiscal year 1998 shall be 
 39.10  disbursed to implement the 
 39.11  comprehensive advanced life support 
 39.12  (CALS) program or similar program and 
 39.13  $6,000 is for administrative costs of 
 39.14  implementing the CALS program. 
 39.15  [EMS BOARD DATA COLLECTION.] Of this 
 39.16  appropriation, $52,000 for the biennium 
 39.17  ending June 30, 1999, is from the 
 39.18  general fund to the emergency medical 
 39.19  services regulatory to be used as 
 39.20  start-up costs for the financial data 
 39.21  collection system. 
 39.22  Sec. 7.  COUNCIL ON DISABILITY           616,000        631,000
 39.23  Sec. 8.  OMBUDSMAN FOR MENTAL 
 39.24  HEALTH AND MENTAL RETARDATION          1,399,000      1,298,000
 39.25  [CARRYOVER.] $25,000 of the 
 39.26  appropriation from Laws 1995, chapter 
 39.27  207, article 1, section 7, does not 
 39.28  cancel but is available until June 30, 
 39.29  1999. 
 39.30  Sec. 9.  OMBUDSMAN
 39.31  FOR FAMILIES                             157,000        161,000
 39.32  Sec. 10.  TRANSFERS 
 39.33  Subdivision 1.  Grant Programs
 39.34  The commissioner of human services, 
 39.35  with the approval of the commissioner 
 39.36  of finance, and after notification of 
 39.37  the chair of the senate health and 
 39.38  family security budget division and the 
 39.39  chair of the house health and human 
 39.40  services finance division, may transfer 
 39.41  unencumbered appropriation balances for 
 39.42  the biennium ending June 30, 1999, 
 39.43  within fiscal years among the aid to 
 39.44  families with dependent children, 
 39.45  Minnesota family investment 
 39.46  program-statewide, Minnesota family 
 39.47  investment plan, general assistance, 
 39.48  general assistance medical care, 
 39.49  medical assistance, Minnesota 
 39.50  supplemental aid, and group residential 
 39.51  housing programs, and the entitlement 
 39.52  portion of the chemical dependency 
 39.53  consolidated treatment fund, and 
 39.54  between fiscal years of the biennium. 
 39.55  Subd. 2.  Approval Required
 39.56  Positions, salary money, and nonsalary 
 40.1   administrative money may be transferred 
 40.2   within the departments of human 
 40.3   services and health and within the 
 40.4   programs operated by the veterans 
 40.5   nursing homes board as the 
 40.6   commissioners and the board consider 
 40.7   necessary, with the advance approval of 
 40.8   the commissioner of finance.  The 
 40.9   commissioner of finance shall inform 
 40.10  the chairs of the house health and 
 40.11  human services finance division and the 
 40.12  senate health and family security 
 40.13  budget division quarterly about 
 40.14  transfers made under this provision. 
 40.15  Subd. 3.  Transfer 
 40.16  Funding appropriated by the legislature 
 40.17  may not be transferred to a different 
 40.18  department than specified by the 
 40.19  legislature without legislative 
 40.20  authority. 
 40.21  Sec. 11.  PROVISIONS
 40.22  (a) Money appropriated to the 
 40.23  commissioner of human services for the 
 40.24  purchase of provisions within the item 
 40.25  "current expense" must be used solely 
 40.26  for that purpose.  Money provided and 
 40.27  not used for the purchase of provisions 
 40.28  must be canceled into the fund from 
 40.29  which appropriated, except that money 
 40.30  provided and not used for the purchase 
 40.31  of provisions because of population 
 40.32  decreases may be transferred and used 
 40.33  for the purchase of drugs and medical 
 40.34  and hospital supplies and equipment 
 40.35  with written approval of the governor 
 40.36  after consultation with the legislative 
 40.37  advisory commission. 
 40.38  (b) For fiscal year 1998, the allowance 
 40.39  for food may be adjusted to the 
 40.40  equivalent of the 75th percentile of 
 40.41  the comparable raw food costs for 
 40.42  community nursing homes as reported to 
 40.43  the commissioner of human services.  
 40.44  For fiscal year 1999 an adjustment may 
 40.45  be made to reflect the annual change in 
 40.46  the United States Bureau of Labor 
 40.47  Statistics producer price index as of 
 40.48  June 1998 with the approval of the 
 40.49  commissioner of finance.  The 
 40.50  adjustments for either year must be 
 40.51  prorated if they would require money in 
 40.52  excess of this appropriation. 
 40.53  Sec. 12.  CARRYOVER LIMITATION
 40.54  None of the appropriations in this act 
 40.55  which are allowed to be carried forward 
 40.56  from fiscal year 1998 to fiscal year 
 40.57  1999 shall become part of the base 
 40.58  level funding for the 2000-2001 
 40.59  biennial budget, unless specifically 
 40.60  directed by the legislature. 
 40.61  Sec. 13.  SUNSET OF UNCODIFIED LANGUAGE
 40.62  All uncodified language contained in 
 41.1   this article expires on June 30, 1999, 
 41.2   unless a different expiration date is 
 41.3   explicit. 
 41.4   Sec. 14.  COMMISSIONER OF 
 41.5   ADMINISTRATION                         1,270,000          -0- 
 41.6   [VETERANS HOMES IMPROVEMENTS.] Of this 
 41.7   appropriation, $1,270,000 for the 
 41.8   biennium is for the commissioner to 
 41.9   accomplish the repair and replacement 
 41.10  of sanitary sewers, fire protection 
 41.11  water mains, roof drains, and deep 
 41.12  sandstone tunnels at the Minneapolis 
 41.13  veterans home, Minneapolis campus. 
 41.14                             ARTICLE 2 
 41.15                         HEALTH DEPARTMENT 
 41.16     Section 1.  [62J.49] [AMBULANCE SERVICES FINANCIAL DATA.] 
 41.17     Subdivision 1.  [ESTABLISHMENT.] The emergency medical 
 41.18  services regulatory board established under chapter 144 shall 
 41.19  establish a financial data collection system for all ambulance 
 41.20  services licensed in this state.  To establish the financial 
 41.21  database, the emergency medical services regulatory board may 
 41.22  contract with an entity that has experience in ambulance service 
 41.23  financial data collection. 
 41.24     Subd. 2.  [DATA CLASSIFICATION.] All financial data 
 41.25  collected by the emergency medical services regulatory board 
 41.26  shall be classified as nonpublic data under section 13.02, 
 41.27  subdivision 9. 
 41.28     Sec. 2.  Minnesota Statutes 1996, section 62J.69, 
 41.29  subdivision 2, is amended to read: 
 41.30     Subd. 2.  [ALLOCATION AND FUNDING FOR MEDICAL EDUCATION AND 
 41.31  RESEARCH.] (a) The commissioner may establish a trust fund for 
 41.32  the purposes of funding medical education and research 
 41.33  activities in the state of Minnesota. 
 41.34     (b) By January 1, 1997, the commissioner may appoint an 
 41.35  advisory committee to provide advice and oversight on the 
 41.36  distribution of funds from the medical education and research 
 41.37  trust fund.  If a committee is appointed, the commissioner 
 41.38  shall:  (1) consider the interest of all stakeholders when 
 41.39  selecting committee members; (2) select members that represent 
 41.40  both urban and rural interest; and (3) select members that 
 41.41  include ambulatory care as well as inpatient perspectives.  The 
 42.1   commissioner shall appoint to the advisory committee 
 42.2   representatives of the following groups:  medical researchers, 
 42.3   public and private academic medical centers, managed care 
 42.4   organizations, Blue Cross and Blue Shield of Minnesota, 
 42.5   commercial carriers, Minnesota Medical Association, Minnesota 
 42.6   Nurses Association, medical product manufacturers, employers, 
 42.7   and other relevant stakeholders, including consumers.  The 
 42.8   advisory committee is governed by section 15.059, for membership 
 42.9   terms and removal of members and will sunset on June 30, 1999. 
 42.10     (c) Eligible applicants for funds are accredited medical 
 42.11  education teaching institutions, consortia, and 
 42.12  programs operating in Minnesota.  Applications must be submitted 
 42.13  by the sponsoring institution on behalf of the teaching program, 
 42.14  and must be received by September 30 of each year for 
 42.15  distribution by in January 1 of the following year.  An 
 42.16  application for funds must include the following: 
 42.17     (1) the official name and address of the sponsoring 
 42.18  institution, facility, and the official name and address of the 
 42.19  facility or program that is applying for funding program on 
 42.20  whose behalf the institution is applying for funding; 
 42.21     (2) the name, title, and business address of those persons 
 42.22  responsible for administering the funds; 
 42.23     (3) the total number, type, and specialty orientation of 
 42.24  eligible Minnesota-based trainees in each accredited medical 
 42.25  education program applying for which funds are being sought; 
 42.26     (4) audited clinical training costs per trainee for each 
 42.27  medical education program; 
 42.28     (5) a description of current sources of funding for medical 
 42.29  education costs including a description and dollar amount of all 
 42.30  state and federal financial support; 
 42.31     (6) other revenue received for the purposes of clinical 
 42.32  training; 
 42.33     (7) a statement identifying unfunded costs; and 
 42.34     (8) other supporting information the commissioner, with 
 42.35  advice from the advisory committee, determines is necessary for 
 42.36  the equitable distribution of funds. 
 43.1      (d) The commissioner shall distribute medical education 
 43.2   funds to all qualifying applicants based on the following basic 
 43.3   criteria:  (1) total medical education funds available; (2) 
 43.4   total eligible trainees in each eligible education program; and 
 43.5   (3) the statewide average cost per trainee, by type of trainee, 
 43.6   in each medical education program.  Funds distributed shall not 
 43.7   be used to displace current funding appropriations from federal 
 43.8   or state sources.  Funds shall be distributed to the sponsoring 
 43.9   institutions indicating the amount to be paid to each of the 
 43.10  sponsor's medical education programs based on the criteria in 
 43.11  this paragraph.  Sponsoring institutions which receive funds 
 43.12  from the trust fund must distribute approved funds to the 
 43.13  medical education program according to the commissioner's 
 43.14  approval letter.  Further, programs must distribute funds among 
 43.15  the sites of training based on the percentage of total program 
 43.16  training performed at each site. 
 43.17     (e) Medical education programs receiving funds from the 
 43.18  trust fund must submit annual cost and program reports through 
 43.19  the sponsoring institution based on criteria established by the 
 43.20  commissioner.  The reports must include:  
 43.21     (1) the total number of eligible trainees in the program; 
 43.22     (2) the type of programs and residencies funded, the 
 43.23  amounts of trust fund payments to each program, and within each 
 43.24  program, the percentage distributed to each training site; 
 43.25     (3) the average cost per trainee and a detailed breakdown 
 43.26  of the components of those costs; 
 43.27     (4) other state or federal appropriations received for the 
 43.28  purposes of clinical training; 
 43.29     (5) other revenue received for the purposes of clinical 
 43.30  training; and 
 43.31     (6) other information the commissioner, with advice from 
 43.32  the advisory committee, deems appropriate to evaluate the 
 43.33  effectiveness of the use of funds for clinical training.  
 43.34     The commissioner, with advice from the advisory committee, 
 43.35  will provide an annual summary report to the legislature on 
 43.36  program implementation due February 15 of each year. 
 44.1      (f) The commissioner is authorized to distribute funds made 
 44.2   available through: 
 44.3      (1) voluntary contributions by employers or other entities; 
 44.4      (2) allocations for the department of human services to 
 44.5   support medical education and research; and 
 44.6      (3) other sources as identified and deemed appropriate by 
 44.7   the legislature for inclusion in the trust fund. 
 44.8      (g) The advisory committee shall continue to study and make 
 44.9   recommendations on:  
 44.10     (1) the funding of medical research consistent with work 
 44.11  currently mandated by the legislature and under way at the 
 44.12  department of health; and 
 44.13     (2) the costs and benefits associated with medical 
 44.14  education and research. 
 44.15     Sec. 3.  Minnesota Statutes 1996, section 62J.69, is 
 44.16  amended by adding a subdivision to read: 
 44.17     Subd. 3.  [MEDICAL ASSISTANCE AND GENERAL ASSISTANCE 
 44.18  SERVICE.] The commissioner of health, in consultation with the 
 44.19  medical education and research costs advisory committee, shall 
 44.20  develop a system to recognize those teaching programs which 
 44.21  serve higher numbers or high proportions of public program 
 44.22  recipients and shall report to the legislative commission on 
 44.23  health care access by January 15, 1998, on an allocation formula 
 44.24  to implement this system. 
 44.25     Sec. 4.  Minnesota Statutes 1996, section 103I.101, 
 44.26  subdivision 6, is amended to read: 
 44.27     Subd. 6.  [FEES FOR VARIANCES.] The commissioner shall 
 44.28  charge a nonrefundable application fee of $100 $120 to cover the 
 44.29  administrative cost of processing a request for a variance or 
 44.30  modification of rules adopted by the commissioner under this 
 44.31  chapter. 
 44.32     Sec. 5.  Minnesota Statutes 1996, section 103I.208, is 
 44.33  amended to read: 
 44.34     103I.208 [WELL NOTIFICATION FILING FEES AND PERMIT FEES.] 
 44.35     Subdivision 1.  [WELL NOTIFICATION FEE.] The well 
 44.36  notification fee to be paid by a property owner is:  
 45.1      (1) for a new well, $100 $120, which includes the state 
 45.2   core function fee; and 
 45.3      (2) for a well sealing, $20, which includes the state core 
 45.4   function fee; and 
 45.5      (3) for construction of a dewatering well, $100 $120, which 
 45.6   includes the state core function fee, for each well except a 
 45.7   dewatering project comprising five or more wells shall be 
 45.8   assessed a single fee of $500 $600 for the wells recorded on the 
 45.9   notification. 
 45.10     Subd. 1a.  [STATE CORE FUNCTION FEE.] The state core 
 45.11  function fee to be collected by the state and delegated boards 
 45.12  of health and used to support state core functions is: 
 45.13     (1) for a new well, $20; and 
 45.14     (2) for a well sealing, $5.  
 45.15     Subd. 2.  [PERMIT FEE.] The permit fee to be paid by a 
 45.16  property owner is:  
 45.17     (1) for a well that is not in use under a maintenance 
 45.18  permit, $100 annually; 
 45.19     (2) for construction of a monitoring well, $100 $120, which 
 45.20  includes the state core function fee; 
 45.21     (3) for a monitoring well that is unsealed under a 
 45.22  maintenance permit, $100 annually; 
 45.23     (4) for monitoring wells used as a leak detection device at 
 45.24  a single motor fuel retail outlet or petroleum bulk storage site 
 45.25  excluding tank farms, the construction permit fee is $100 $120, 
 45.26  which includes the state core function fee, per site regardless 
 45.27  of the number of wells constructed on the site, and the annual 
 45.28  fee for a maintenance permit for unsealed monitoring wells is 
 45.29  $100 per site regardless of the number of monitoring wells 
 45.30  located on site; 
 45.31     (5) for a groundwater thermal exchange device, in addition 
 45.32  to the notification fee for wells, $100 $120, which includes the 
 45.33  state core function fee; 
 45.34     (6) for a vertical heat exchanger, $100 $120; and 
 45.35     (7) for a dewatering well that is unsealed under a 
 45.36  maintenance permit, $100 annually for each well, except a 
 46.1   dewatering project comprising more than five wells shall be 
 46.2   issued a single permit for $500 annually for wells recorded on 
 46.3   the permit; and 
 46.4      (8) for excavating holes for the purpose of installing 
 46.5   elevator shafts, $120 for each hole. 
 46.6      Sec. 6.  Minnesota Statutes 1996, section 103I.401, 
 46.7   subdivision 1, is amended to read: 
 46.8      Subdivision 1.  [PERMIT REQUIRED.] (a) A person may not 
 46.9   construct an elevator shaft until a permit for the hole or 
 46.10  excavation is issued by the commissioner.  
 46.11     (b) The fee for excavating holes for the purpose of 
 46.12  installing elevator shafts is $100 for each hole. 
 46.13     (c) The elevator shaft permit preempts local permits except 
 46.14  local building permits, and counties and home rule charter or 
 46.15  statutory cities may not require a permit for elevator shaft 
 46.16  holes or excavations. 
 46.17     Sec. 7.  Minnesota Statutes 1996, section 144.121, 
 46.18  subdivision 1, is amended to read: 
 46.19     Subdivision 1.  [REGISTRATION; FEES.] The fee for the 
 46.20  registration for X-ray machines and radium other sources of 
 46.21  ionizing radiation required to be registered under rules adopted 
 46.22  by the state commissioner of health pursuant to section 144.12, 
 46.23  shall be in an amount prescribed by the commissioner as 
 46.24  described in subdivision 1a pursuant to section 144.122.  The 
 46.25  first fee for registration shall be due on January 1, 1975.  The 
 46.26  registration shall expire and be renewed as prescribed by the 
 46.27  commissioner pursuant to section 144.122. 
 46.28     Sec. 8.  Minnesota Statutes 1996, section 144.121, is 
 46.29  amended by adding a subdivision to read: 
 46.30     Subd. 1a.  [FEES FOR X-RAY MACHINES AND OTHER SOURCES OF 
 46.31  IONIZING RADIATION.] A facility with x-ray machines or other 
 46.32  sources of ionizing radiation must biennially pay an initial or 
 46.33  biennial renewal registration fee consisting of a base facility 
 46.34  fee of $132 and an additional fee for each x-ray machine or 
 46.35  other source of ionizing radiation as follows:  
 46.36       (1) medical or veterinary equipment                 $106
 47.1        (2) dental x-ray equipment                          $ 66
 47.2        (3) accelerator                                     $132
 47.3        (4) radiation therapy equipment                     $132
 47.4        (5) x-ray equipment not used on humans or animals   $106
 47.5        (6) devices with sources of ionizing radiation
 47.6            not used on humans or animals                   $106
 47.7        (7) sources of radium                               $198
 47.8      Sec. 9.  Minnesota Statutes 1996, section 144.121, is 
 47.9   amended by adding a subdivision to read: 
 47.10     Subd. 1b.  [PENALTY FEE FOR LATE REGISTRATION.] 
 47.11  Applications for initial or renewal registrations submitted to 
 47.12  the commissioner after the time specified by the commissioner 
 47.13  shall be accompanied by a penalty fee of $20 in addition to the 
 47.14  fees prescribed in subdivision 1a. 
 47.15     Sec. 10.  Minnesota Statutes 1996, section 144.121, is 
 47.16  amended by adding a subdivision to read: 
 47.17     Subd. 1c.  [FEE FOR X-RAY MACHINES AND OTHER SOURCES OF 
 47.18  IONIZING RADIATION REGISTERED DURING LAST 12 MONTHS OF A 
 47.19  BIENNIAL REGISTRATION PERIOD.] The initial registration fee of 
 47.20  x-ray machines or other sources of radiation required to be 
 47.21  registered during the last 12 months of a biennial registration 
 47.22  period will be 50 percent of the applicable registration fee 
 47.23  prescribed in subdivision 1a. 
 47.24     Sec. 11.  Minnesota Statutes 1996, section 144.125, is 
 47.25  amended to read: 
 47.26     144.125 [TESTS OF INFANTS FOR INBORN METABOLIC ERRORS.] 
 47.27     It is the duty of (1) the administrative officer or other 
 47.28  person in charge of each institution caring for infants 28 days 
 47.29  or less of age and (2) the person required in pursuance of the 
 47.30  provisions of section 144.215, to register the birth of a child, 
 47.31  to cause to have administered to every infant or child in its 
 47.32  care tests for hemoglobinopathy, phenylketonuria, and other 
 47.33  inborn errors of metabolism in accordance with rules prescribed 
 47.34  by the state commissioner of health.  In determining which tests 
 47.35  must be administered, the commissioner shall take into 
 47.36  consideration the adequacy of laboratory methods to detect the 
 48.1   inborn metabolic error, the ability to treat or prevent medical 
 48.2   conditions caused by the inborn metabolic error, and the 
 48.3   severity of the medical conditions caused by the inborn 
 48.4   metabolic error.  Testing and the recording and reporting of the 
 48.5   results of the tests shall be performed at the times and in the 
 48.6   manner prescribed by the commissioner of health.  The 
 48.7   commissioner shall charge laboratory service fees for conducting 
 48.8   the tests of infants for inborn metabolic errors so that the 
 48.9   total of fees collected will approximate the costs of conducting 
 48.10  the tests and implementing and maintaining a system to follow-up 
 48.11  infants with inborn metabolic errors.  Costs associated with 
 48.12  capital expenditures and the development of new procedures may 
 48.13  be prorated over a three-year period when calculating the amount 
 48.14  of the fees. 
 48.15     Sec. 12.  Minnesota Statutes 1996, section 144.226, 
 48.16  subdivision 1, is amended to read: 
 48.17     Subdivision 1.  [WHICH SERVICES ARE FOR FEE.] The fees 
 48.18  for any of the following services shall be in the following or 
 48.19  an amount prescribed by rule of the commissioner: 
 48.20     (a) The fee for the issuance of a certified copy or 
 48.21  certification of a vital record, or a certification that the 
 48.22  record cannot be found; is $8.  No fee shall be charged for a 
 48.23  certified birth or death record that is reissued within one year 
 48.24  of the original issue, if the previously issued record is 
 48.25  surrendered. 
 48.26     (b) The fee for the replacement of a birth certificate; 
 48.27  record for all events except adoption is $20. 
 48.28     (c) The fee for the filing of a delayed registration of 
 48.29  birth or death; is $20. 
 48.30     (d) The alteration, correction, or completion fee for the 
 48.31  amendment of any vital record, provided that when requested more 
 48.32  than one year after the filing of the record is $20.  No fee 
 48.33  shall be charged for an alteration, correction, or 
 48.34  completion amendment requested within one year after the filing 
 48.35  of the certificate; and. 
 48.36     (e) The fee for the verification of information from or 
 49.1   noncertified copies of vital records is $8 when the applicant 
 49.2   furnishes the specific information to locate the record.  When 
 49.3   the applicant does not furnish specific information, the fee is 
 49.4   $20 per hour for staff time expended.  Specific information 
 49.5   shall include the correct date of the event and the correct name 
 49.6   of the registrant.  Fees charged shall approximate the costs 
 49.7   incurred in searching and copying the records.  The fee shall be 
 49.8   payable at time of application. 
 49.9      (f) The fee for issuance of a certified or noncertified 
 49.10  copy of any document on file pertaining to a vital record or a 
 49.11  certification that the record cannot be found is $8. 
 49.12     Sec. 13.  Minnesota Statutes 1996, section 144.226, is 
 49.13  amended by adding a subdivision to read: 
 49.14     Subd. 4.  [VITAL RECORDS SURCHARGE.] In addition to any fee 
 49.15  prescribed under subdivision 1, there is a nonrefundable 
 49.16  surcharge of $3 for each certified and noncertified birth or 
 49.17  death record.  The local or state registrar shall forward this 
 49.18  amount to the state treasurer to be deposited into the state 
 49.19  government special revenue fund.  This surcharge shall not be 
 49.20  charged under those circumstances in which no fee for a birth or 
 49.21  death record is permitted under subdivision 1, paragraph (a).  
 49.22  This surcharge requirement expires June 30, 2002. 
 49.23     Sec. 14.  Minnesota Statutes 1996, section 144.394, is 
 49.24  amended to read: 
 49.25     144.394 [SMOKING PREVENTION HEALTH PROMOTION AND 
 49.26  EDUCATION.] 
 49.27     The commissioner may sell at market value, all nonsmoking 
 49.28  or tobacco use prevention advertising health promotion and 
 49.29  health education materials.  Proceeds from the sale of the 
 49.30  advertising materials are appropriated to the department of 
 49.31  health for its nonsmoking the program that developed the 
 49.32  material. 
 49.33     Sec. 15.  Minnesota Statutes 1996, section 145.925, 
 49.34  subdivision 9, is amended to read: 
 49.35     Subd. 9.  [RULES; REGIONAL FUNDING.] Notwithstanding any 
 49.36  rules to the contrary, including rules proposed in the State 
 50.1   Register on April 1, 1991, the commissioner, in allocating grant 
 50.2   funds for family planning special projects, shall not limit the 
 50.3   total amount of funds that can be allocated to an organization 
 50.4   that has submitted applications from more than one region, 
 50.5   except that no more than $75,000 may be allocated to any grantee 
 50.6   within a single region.  For two or more organizations who have 
 50.7   submitted a joint application, that limit is $75,000 for each 
 50.8   organization.  The commissioner shall allocate to an 
 50.9   organization receiving grant funds on July 1, 1997, at least the 
 50.10  same amount of grant funds for the 1998 to 1999 grant cycle as 
 50.11  the organization received for the 1996 to 1997 grant cycle, 
 50.12  provided the organization submits an application that meets 
 50.13  grant funding criteria.  This subdivision does not affect any 
 50.14  procedure established in rule for allocating special project 
 50.15  money to the different regions.  The commissioner shall revise 
 50.16  the rules for family planning special project grants so that 
 50.17  they conform to the requirements of this subdivision.  In 
 50.18  adopting these revisions, the commissioner is not subject to the 
 50.19  rulemaking provisions of chapter 14, but is bound by section 
 50.20  14.38, subdivision 7. 
 50.21     Sec. 16.  [145A.16] [UNIVERSALLY OFFERED HOME VISITING 
 50.22  PROGRAMS FOR INFANT CARE.] 
 50.23     Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
 50.24  establish a grant program to fund universally offered home 
 50.25  visiting programs designed to serve all live births in 
 50.26  designated geographic areas.  The commissioner shall designate 
 50.27  the geographic area to be served by each program.  At least one 
 50.28  program must provide home visiting services to families within 
 50.29  the seven-county metropolitan area, and at least one program 
 50.30  must provide home visiting services to families outside the 
 50.31  metropolitan area.  The purpose of the program is to strengthen 
 50.32  families and to promote positive parenting and healthy child 
 50.33  development.  
 50.34     Subd. 2.  [STEERING COMMITTEE.] The commissioner shall 
 50.35  establish an ad hoc steering committee to develop and implement 
 50.36  a comprehensive plan for the universally offered home visiting 
 51.1   programs.  The members of the ad hoc steering committee shall 
 51.2   include, at a minimum, representatives of local public health 
 51.3   departments, public health nurses, other health care providers, 
 51.4   paraprofessionals, community-based family workers, 
 51.5   representatives of the state councils of color, representatives 
 51.6   of health insurance plans, and other individuals with expertise 
 51.7   in the field of home visiting, early childhood health and 
 51.8   development, and child abuse prevention.  
 51.9      Subd. 3.  [PROGRAM REQUIREMENTS.] The commissioner shall 
 51.10  award grants using a request for proposal system.  Existing home 
 51.11  visiting programs or a family services collaborative established 
 51.12  under section 256F.13 may apply for the grants.  Health 
 51.13  information and assessment, counseling, social support, 
 51.14  educational services, and referral to community resources must 
 51.15  be offered to all families, regardless of need or risk, 
 51.16  beginning prenatally or as soon after birth as possible, and 
 51.17  continuing as needed.  Each program applying for a grant must 
 51.18  have access to adequate community resources to complement the 
 51.19  home visiting services and must be designed to: 
 51.20     (1) identify all newborn infants within the geographic area 
 51.21  served by the program.  Identification may be made prenatally or 
 51.22  at the time of birth; 
 51.23     (2) offer a home visit by a trained home visitor.  The 
 51.24  offer of a home visit must be made in a way that guarantees that 
 51.25  the existence of the pregnancy is not revealed to any other 
 51.26  individual without the written consent of the pregnant female.  
 51.27  If home visiting is accepted, the first visit must occur 
 51.28  prenatally or as soon after birth as possible and must include a 
 51.29  public health nursing assessment by a public health nurse; 
 51.30     (3) offer, at a minimum, information on infant care, child 
 51.31  growth and development, positive parenting, the prevention of 
 51.32  disease and exposure to environmental hazards, and support 
 51.33  services available in the community; 
 51.34     (4) provide information on and referral to health care 
 51.35  services, if needed, including information on health care 
 51.36  coverage for which the individual or family may be eligible and 
 52.1   information on family planning, pediatric preventive services, 
 52.2   immunizations, and developmental assessments, and information on 
 52.3   the availability of public assistance programs as appropriate; 
 52.4      (5) recruit home visit workers who will represent, to the 
 52.5   extent possible, all the races, cultures, and languages spoken 
 52.6   by eligible families in the designated geographic areas; and 
 52.7      (6) train and supervise home visitors in accordance with 
 52.8   the requirements established under subdivision 5.  
 52.9      Subd. 4.  [COORDINATION.] To minimize duplication, a 
 52.10  program receiving a grant must establish a coalition that 
 52.11  includes parents, health care providers who provide services to 
 52.12  families with young children in the service area, and 
 52.13  representatives of local schools, governmental and nonprofit 
 52.14  agencies, community-based organizations, health insurance plans, 
 52.15  and local hospitals.  A program may use a family services 
 52.16  collaborative as the coalition if a collaborative is established 
 52.17  in the area served by the program.  The coalition must designate 
 52.18  the roles of all provider agencies, family identification 
 52.19  methods, referral mechanisms, and payment responsibilities 
 52.20  appropriate for the existing systems in the program's service 
 52.21  area.  The coalition must also coordinate with other programs 
 52.22  offered by school boards under section 121.882, subdivision 2b, 
 52.23  and programs offered under section 145A.15.  
 52.24     Subd. 5.  [TRAINING.] The commissioner shall establish 
 52.25  training requirements for home visitors and minimum requirements 
 52.26  for supervision by a public health nurse.  The requirements for 
 52.27  nurses must be consistent with chapter 148.  Training must 
 52.28  include child development, positive parenting techniques, and 
 52.29  diverse cultural practices in child rearing and family systems.  
 52.30  A program may use grant money to train home visitors. 
 52.31     Subd. 6.  [EVALUATION.] (a) The commissioner shall evaluate 
 52.32  the effectiveness of the home visiting programs, taking into 
 52.33  consideration the following goals:  
 52.34     (1) appropriate child growth, development, and access to 
 52.35  health care; 
 52.36     (2) appropriate utilization of preventive health care and 
 53.1   medical care for acute illnesses; 
 53.2      (3) lower rates of substantiated child abuse and neglect; 
 53.3      (4) up-to-date immunizations; 
 53.4      (5) a reduction in unintended pregnancies; 
 53.5      (6) increasing families' understanding of lead poisoning 
 53.6   prevention; 
 53.7      (7) lower rates of unintentional injuries; and 
 53.8      (8) fewer hospitalizations and emergency room visits.  
 53.9      (b) The commissioner shall compare overall outcomes of 
 53.10  universally offered home visiting programs with targeted home 
 53.11  visiting programs and report the findings to the legislature.  
 53.12  The report must also include information on how home visiting 
 53.13  programs will coordinate activities and preventive services 
 53.14  provided by health plans and other organizations. 
 53.15     (c) The commissioner shall report to the legislature by 
 53.16  February 15, 1998, on the comprehensive plan for the universally 
 53.17  offered home visiting programs and recommend any draft 
 53.18  legislation needed to implement the plan.  The commissioner 
 53.19  shall report to the legislature biennially beginning December 
 53.20  15, 2001, on the effectiveness of the universally offered home 
 53.21  visiting programs.  In the report due December 15, 2001, the 
 53.22  commissioner shall include recommendations on the feasibility 
 53.23  and cost of expanding the program statewide.  
 53.24     Subd. 7.  [TECHNICAL ASSISTANCE.] The commissioner shall 
 53.25  provide administrative and technical assistance to each program, 
 53.26  including assistance conducting short- and long-term evaluations 
 53.27  of the home visiting program required under subdivision 6.  The 
 53.28  commissioner may request research and evaluation support from 
 53.29  the University of Minnesota.  
 53.30     Subd. 8.  [MATCHING FUNDS.] The commissioner and the grant 
 53.31  programs shall seek to supplement any state funding with private 
 53.32  and other nonstate funding sources, including other grants and 
 53.33  insurance coverage for services provided.  Program funding may 
 53.34  be used only to supplement, not to replace, existing funds being 
 53.35  used for home visiting.  
 53.36     Subd. 9.  [PAYMENT FOR HOME VISITING SERVICES.] Any health 
 54.1   plan that provides services to families or individuals enrolled 
 54.2   in medical assistance, general assistance medical care, or the 
 54.3   MinnesotaCare program must contract with the programs receiving 
 54.4   grants under this section and the programs established under 
 54.5   section 145A.15 that are providing home visiting services in the 
 54.6   area served by the health plan to provide home visiting services 
 54.7   covered under medical assistance, general assistance medical 
 54.8   care, or the MinnesotaCare program to their enrollees.  A health 
 54.9   plan may require a home visiting program to comply with the 
 54.10  health plan's requirements on the same basis as the health 
 54.11  plan's other participating providers. 
 54.12     Sec. 17.  Minnesota Statutes 1996, section 151.40, is 
 54.13  amended to read: 
 54.14     151.40 [POSSESSION AND SALE OF HYPODERMIC SYRINGES AND 
 54.15  NEEDLES.] 
 54.16     Subdivision 1.  [GENERALLY.] Except as otherwise provided 
 54.17  in subdivision 2, it shall be is unlawful for any person to 
 54.18  possess, control, manufacture, sell, furnish, dispense, or 
 54.19  otherwise dispose of hypodermic syringes or needles or any 
 54.20  instrument or implement which can be adapted for subcutaneous 
 54.21  injections, except by the following persons when acting in the 
 54.22  course of their practice or employment: licensed practitioners, 
 54.23  registered pharmacies and their employees or agents, licensed 
 54.24  pharmacists, licensed doctors of veterinary medicine or their 
 54.25  assistants, registered nurses, registered medical technologists, 
 54.26  medical interns, licensed drug wholesalers, their employees or 
 54.27  agents, licensed hospitals, licensed nursing homes, bona fide 
 54.28  hospitals where animals are treated, licensed morticians, 
 54.29  syringe and needle manufacturers, their dealers and agents, 
 54.30  persons engaged in animal husbandry, clinical laboratories, 
 54.31  persons engaged in bona fide research or education or industrial 
 54.32  use of hypodermic syringes and needles provided such persons 
 54.33  cannot use hypodermic syringes and needles for the 
 54.34  administration of drugs to human beings unless such drugs are 
 54.35  prescribed, dispensed, and administered by a person lawfully 
 54.36  authorized to do so, persons who administer drugs pursuant to an 
 55.1   order or direction of a licensed doctor of medicine or of a 
 55.2   licensed doctor of osteopathy duly licensed to practice medicine.
 55.3      Subd. 2.  [SALES OF LIMITED QUANTITIES OF CLEAN NEEDLES AND 
 55.4   SYRINGES.] (a) A registered pharmacy or its agent or a licensed 
 55.5   pharmacist may sell, without a prescription, unused hypodermic 
 55.6   needles and syringes in quantities of ten or fewer, provided the 
 55.7   pharmacy or pharmacist complies with all of the requirements of 
 55.8   this subdivision. 
 55.9      (b) At any location where hypodermic needles and syringes 
 55.10  are kept for retail sale under this subdivision, the needles and 
 55.11  syringes shall be stored in a manner that makes them available 
 55.12  only to authorized personnel and not openly available to 
 55.13  customers. 
 55.14     (c) No registered pharmacy or licensed pharmacist may 
 55.15  advertise to the public the availability for retail sale, 
 55.16  without a prescription, of hypodermic needles or syringes in 
 55.17  quantities of ten or fewer. 
 55.18     (d) A registered pharmacy or licensed pharmacist that sells 
 55.19  hypodermic needles or syringes under this subdivision may give 
 55.20  the purchaser the materials developed by the commissioner of 
 55.21  health under section 325F.785. 
 55.22     (e) A registered pharmacy or licensed pharmacist that sells 
 55.23  hypodermic needles or syringes must certify to the commissioner 
 55.24  of health participation in an activity, including but not 
 55.25  limited to those developed under section 325F.785, that supports 
 55.26  proper disposal of used hypodermic needles or syringes. 
 55.27     Sec. 18.  Minnesota Statutes 1996, section 153A.17, is 
 55.28  amended to read: 
 55.29     153A.17 [EXPENSES; FEES.] 
 55.30     The expenses for administering the certification 
 55.31  requirements including the complaint handling system for hearing 
 55.32  aid dispensers in sections 153A.14 and 153A.15 and the consumer 
 55.33  information center under section 153A.18 must be paid from 
 55.34  initial application and examination fees, renewal fees, 
 55.35  penalties, and fines.  All fees are nonrefundable.  The 
 55.36  certificate application fee is $280 $165 for audiologists 
 56.1   registered under section 148.511 and $490 for all others, the 
 56.2   examination fee is $200 for the written portion and $200 for the 
 56.3   practical portion each time one or the other is taken, and the 
 56.4   trainee application fee is $100, except that the certification 
 56.5   application fee for a registered audiologist is $280 minus the 
 56.6   audiologist registration fee of $101.  In addition, both 
 56.7   certification and examination fees are subject to 
 56.8   Notwithstanding the policy set forth in section 16A.1285, 
 56.9   subdivision 2, a surcharge of $60 $165 for audiologists 
 56.10  registered under section 148.511 and $330 for all others shall 
 56.11  be paid at the time of application or renewal until June 30, 
 56.12  2003, to recover, over a five-year period, the commissioner's 
 56.13  accumulated direct expenditures for administering the 
 56.14  requirements of this chapter, but not registration of hearing 
 56.15  instrument dispensers under section 214.13, before November 1, 
 56.16  1994.  The penalty fee for late submission of a renewal 
 56.17  application is $70 $200.  All fees, penalties, and fines 
 56.18  received must be deposited in the state government special 
 56.19  revenue fund.  The commissioner may prorate the certification 
 56.20  fee for new applicants based on the number of quarters remaining 
 56.21  in the annual certification period. 
 56.22     Sec. 19.  Minnesota Statutes 1996, section 157.15, is 
 56.23  amended by adding a subdivision to read: 
 56.24     Subd. 16.  [CRITICAL CONTROL POINT.] "Critical control 
 56.25  point" means a point or procedure in a specific food system 
 56.26  where loss of control may result in an unacceptable health risk. 
 56.27     Sec. 20.  Minnesota Statutes 1996, section 157.15, is 
 56.28  amended by adding a subdivision to read: 
 56.29     Subd. 17.  [HACCP PLAN.] "Hazard analysis critical control 
 56.30  point (HACCP) plan" means a written document that delineates the 
 56.31  formal procedures for following the HACCP principles developed 
 56.32  by the National Advisory Committee on Microbiological Criteria 
 56.33  for Foods. 
 56.34     Sec. 21.  Minnesota Statutes 1996, section 157.15, is 
 56.35  amended by adding a subdivision to read: 
 56.36     Subd. 18.  [HAZARD.] "Hazard" means any biological, 
 57.1   chemical, or physical property that may cause an unacceptable 
 57.2   consumer health risk.  
 57.3      Sec. 22.  Minnesota Statutes 1996, section 157.16, 
 57.4   subdivision 3, is amended to read: 
 57.5      Subd. 3.  [ESTABLISHMENT FEES; DEFINITIONS.] (a) The 
 57.6   following fees are required for food and beverage service 
 57.7   establishments, hotels, motels, lodging establishments, and 
 57.8   resorts licensed under this chapter.  Food and beverage service 
 57.9   establishments must pay the highest applicable fee under 
 57.10  paragraph (e), clause (1), (2), (3), or (4), and establishments 
 57.11  serving alcohol must pay the highest applicable fee under 
 57.12  paragraph (e), clause (6) or (7). 
 57.13     (b) All food and beverage service establishments, except 
 57.14  special event food stands, and all hotels, motels, lodging 
 57.15  establishments, and resorts shall pay an annual base fee of $100.
 57.16     (c) A special event food stand shall pay a flat fee of $60 
 57.17  annually.  "Special event food stand" means a fee category where 
 57.18  food is prepared or served in conjunction with celebrations, 
 57.19  county fairs, or special events from a special event food stand 
 57.20  as defined in section 157.15. 
 57.21     (d) A special event food stand-limited shall pay a flat fee 
 57.22  of $30. 
 57.23     (e) In addition to the base fee in paragraph (b), each food 
 57.24  and beverage service establishment, other than a special event 
 57.25  food stand, and each hotel, motel, lodging establishment, and 
 57.26  resort shall pay an additional annual fee for each fee category 
 57.27  as specified in this paragraph: 
 57.28     (1) Limited food menu selection, $30.  "Limited food menu 
 57.29  selection" means a fee category that provides one or more of the 
 57.30  following: 
 57.31     (i) prepackaged food that receives heat treatment and is 
 57.32  served in the package; 
 57.33     (ii) frozen pizza that is heated and served; 
 57.34     (iii) a continental breakfast such as rolls, coffee, juice, 
 57.35  milk, and cold cereal; 
 57.36     (iv) soft drinks, coffee, or nonalcoholic beverages; or 
 58.1      (v) cleaning for eating, drinking, or cooking utensils, 
 58.2   when the only food served is prepared off site. 
 58.3      (2) Small menu selection with limited equipment 
 58.4   establishment, including boarding establishments, $55.  
 58.5   "Small menu selection with limited equipment establishment" 
 58.6   means a fee category that has no salad bar and meets one or more 
 58.7   of the following: 
 58.8      (i) possesses food service equipment that consists of no 
 58.9   more than a deep fat fryer, a grill, two hot holding containers, 
 58.10  and one or more microwave ovens; 
 58.11     (ii) serves dipped ice cream or soft serve frozen desserts; 
 58.12     (iii) serves breakfast in an owner-occupied bed and 
 58.13  breakfast establishment; or 
 58.14     (iv) is a boarding establishment; or 
 58.15     (v) meets the equipment criteria in clause (3), item (i) or 
 58.16  (ii), and has a maximum patron seating capacity of not more than 
 58.17  50.  
 58.18     (3) Small Medium establishment with full menu selection, 
 58.19  $150.  "Small Medium establishment with full menu selection" 
 58.20  means a fee category that meets one or more of the following: 
 58.21     (i) possesses food service equipment that includes a range, 
 58.22  oven, steam table, salad bar, or salad preparation area; 
 58.23     (ii) possesses food service equipment that includes more 
 58.24  than one deep fat fryer, one grill, or two hot holding 
 58.25  containers; or 
 58.26     (iii) is an establishment where food is prepared at one 
 58.27  location and served at one or more separate locations. 
 58.28     Establishments meeting criteria in clause (2), item (v), 
 58.29  are not included in this fee category.  
 58.30     (4) Large establishment with full menu selection, $250.  
 58.31  "Large establishment with full menu selection" means either: 
 58.32     (i) a fee category that (A) meets the criteria in clause 
 58.33  (3), items (i) or (ii), for a small medium establishment with 
 58.34  full menu selection, (B) seats more than 175 people, and (C) 
 58.35  offers the full menu selection an average of five or more days a 
 58.36  week during the weeks of operation; or 
 59.1      (ii) a fee category that (A) meets the criteria in clause 
 59.2   (3), item (iii), for a small medium establishment with full menu 
 59.3   selection, and (B) prepares and serves 500 or more meals per day.
 59.4      (5) Other food and beverage service, including food carts, 
 59.5   mobile food units, seasonal temporary food stands, and seasonal 
 59.6   permanent food stands, $30. 
 59.7      (6) Beer or wine table service, $30.  "Beer or wine table 
 59.8   service" means a fee category where the only alcoholic beverage 
 59.9   service is beer or wine, served to customers seated at tables. 
 59.10     (7) Alcoholic beverage service, other than beer or wine 
 59.11  table service, $75. 
 59.12     "Alcohol beverage service, other than beer or wine table 
 59.13  service" means a fee category where alcoholic mixed drinks are 
 59.14  served or where beer or wine are served from a bar. 
 59.15     (8) Lodging per sleeping accommodation unit, $4, including 
 59.16  hotels, motels, lodging establishments, and resorts, up to a 
 59.17  maximum of $400.  "Lodging per sleeping accommodation unit" 
 59.18  means a fee category including the number of guest rooms, 
 59.19  cottages, or other rental units of a hotel, motel, lodging 
 59.20  establishment, or resort; or the number of beds in a dormitory. 
 59.21     (9) First public swimming pool, $100; each additional 
 59.22  public swimming pool, $50.  "Public swimming pool" means a fee 
 59.23  category that has the meaning given in Minnesota Rules, part 
 59.24  4717.0250, subpart 8. 
 59.25     (10) First spa, $50; each additional spa, $25.  "Spa pool" 
 59.26  means a fee category that has the meaning given in Minnesota 
 59.27  Rules, part 4717.0250, subpart 9. 
 59.28     (11) Private sewer or water, $30.  "Individual private 
 59.29  water" means a fee category with a water supply other than a 
 59.30  community public water supply as defined in Minnesota Rules, 
 59.31  chapter 4720.  "Individual private sewer" means a fee category 
 59.32  with an individual sewage treatment system which uses subsurface 
 59.33  treatment and disposal. 
 59.34     (f) A fee is not required for a food and beverage service 
 59.35  establishment operated by a school as defined in sections 120.05 
 59.36  and 120.101. 
 60.1      (g) A fee of $150 for review of the construction plans must 
 60.2   accompany the initial license application for food and beverage 
 60.3   service establishments, hotels, motels, lodging establishments, 
 60.4   or resorts. 
 60.5      (h) When existing food and beverage service establishments, 
 60.6   hotels, motels, lodging establishments, or resorts are 
 60.7   extensively remodeled, a fee of $150 must be submitted with the 
 60.8   remodeling plans. 
 60.9      (i) Seasonal temporary food stands, special event food 
 60.10  stands, and special event food stands-limited are not required 
 60.11  to submit construction or remodeling plans for review. 
 60.12     Sec. 23.  [157.215] [PILOT PROJECT.] 
 60.13     The commissioner of health is authorized to issue a request 
 60.14  for participation to the regulated food and beverage service 
 60.15  establishment industry and to select up to 25 pilot projects 
 60.16  utilizing HACCP quality assurance principles for monitoring risk.
 60.17     Sec. 24.  Minnesota Statutes 1996, section 214.12, is 
 60.18  amended by adding a subdivision to read: 
 60.19     Subd. 3.  [FETAL ALCOHOL SYNDROME.] The board of medical 
 60.20  practice and the board of nursing shall require by rule that 
 60.21  family practitioners, pediatricians, obstetricians and 
 60.22  gynecologists, and other licensees who have primary 
 60.23  responsibility for diagnosing and treating fetal alcohol 
 60.24  syndrome in pregnant women or children receive education on the 
 60.25  subject of fetal alcohol syndrome and fetal alcohol effects, 
 60.26  including how to:  (1) screen pregnant women for alcohol abuse; 
 60.27  (2) identify affected children; and (3) provide referral 
 60.28  information on needed services. 
 60.29     Sec. 25.  Minnesota Statutes 1996, section 256B.0625, 
 60.30  subdivision 14, is amended to read: 
 60.31     Subd. 14.  [DIAGNOSTIC, SCREENING, AND PREVENTIVE 
 60.32  SERVICES.] (a) Medical assistance covers diagnostic, screening, 
 60.33  and preventive services.  
 60.34     (b) "Preventive services" include services related to 
 60.35  pregnancy, including: 
 60.36     (1) services for those conditions which may complicate a 
 61.1   pregnancy and which may be available to a pregnant woman 
 61.2   determined to be at risk of poor pregnancy outcome; 
 61.3      (2) prenatal HIV risk assessment, education, counseling, 
 61.4   and testing; and 
 61.5      (3) alcohol abuse assessment, education, and counseling on 
 61.6   the effects of alcohol usage while pregnant.  Preventive 
 61.7   services available to a woman at risk of poor pregnancy outcome 
 61.8   may differ in an amount, duration, or scope from those available 
 61.9   to other individuals eligible for medical assistance. 
 61.10     (c) "Screening services" include, but are not limited to, 
 61.11  blood lead tests. 
 61.12     Sec. 26.  Minnesota Statutes 1996, section 256B.69, is 
 61.13  amended by adding a subdivision to read: 
 61.14     Subd. 5c.  [MEDICAL EDUCATION AND RESEARCH TRUST FUND.] (a) 
 61.15  Beginning in January 1999 and each year thereafter: 
 61.16     (1) the commissioner of human services shall transfer an 
 61.17  amount equal to the reduction in the prepaid medical assistance 
 61.18  and prepaid general assistance medical care payments resulting 
 61.19  from clause (2), excluding nursing facility and elderly waiver 
 61.20  payments, to the medical education and research trust fund 
 61.21  established under section 62J.69; 
 61.22     (2) the county medical assistance and general assistance 
 61.23  medical care capitation base rate prior to plan specific 
 61.24  adjustments shall be reduced 6.3 percent for Hennepin county, 
 61.25  two percent for the remaining metropolitan counties, and 1.6 
 61.26  percent for nonmetropolitan Minnesota counties; and 
 61.27     (3) the amount calculated under clause (1) shall not be 
 61.28  adjusted for subsequent changes to the capitation payments for 
 61.29  periods already paid.  
 61.30     (b) This subdivision shall be effective upon approval of a 
 61.31  federal waiver which allows federal financial participation in 
 61.32  the medical education and research trust fund. 
 61.33     Sec. 27.  [325F.785] [SALES OF HIV HOME COLLECTION KITS AND 
 61.34  HYPODERMIC SYRINGES AND NEEDLES.] 
 61.35     Subdivision 1.  [INFORMATION TO PURCHASERS.] A seller may 
 61.36  provide each purchaser of an HIV home collection kit or 
 62.1   hypodermic syringes and needles as authorized in section 151.40, 
 62.2   at the time of purchase, with written information about the 
 62.3   telephone numbers for public HIV counseling and testing sites, 
 62.4   the state's HIV hotline, disposal of used syringes, and general 
 62.5   HIV prevention and care. 
 62.6      Subd. 2.  [ASSISTANCE FOR SELLERS.] The commissioner of 
 62.7   health shall provide technical assistance and materials to 
 62.8   pharmacies and to sellers related to compliance with sections 
 62.9   151.40 and 325F.785.  The commissioner, in consultation with 
 62.10  organizations specializing in HIV prevention, shall provide 
 62.11  printed materials, including the written information described 
 62.12  under subdivision 1, at no charge to pharmacies that sell 
 62.13  hypodermic needles or syringes under section 151.40, and sellers 
 62.14  of HIV home collection kits under this section.  A pharmacy or 
 62.15  seller may request and the commissioner may authorize use of 
 62.16  other methods for providing written information to purchasers.  
 62.17  The commissioner may use funds appropriated under section 
 62.18  145.924, to provide technical assistance and materials. 
 62.19     Sec. 28.  Minnesota Statutes 1996, section 326.37, 
 62.20  subdivision 1, is amended to read: 
 62.21     Subdivision 1.  [RULES.] The state commissioner of health 
 62.22  may, by rule, prescribe minimum standards which shall be 
 62.23  uniform, and which standards shall thereafter be effective for 
 62.24  all new plumbing installations, including additions, extensions, 
 62.25  alterations, and replacements connected with any water or sewage 
 62.26  disposal system owned or operated by or for any municipality, 
 62.27  institution, factory, office building, hotel, apartment 
 62.28  building, or any other place of business regardless of location 
 62.29  or the population of the city or town in which located.  
 62.30  Notwithstanding the provisions of Minnesota Rules, part 
 62.31  4715.3130, as they apply to review of plans and specifications, 
 62.32  the commissioner may allow plumbing construction, alteration, or 
 62.33  extension to proceed without approval of the plans or 
 62.34  specifications by the commissioner. 
 62.35     The commissioner shall administer the provisions of 
 62.36  sections 326.37 to 326.45 and for such purposes may employ 
 63.1   plumbing inspectors and other assistants. 
 63.2      Sec. 29.  Minnesota Statutes 1996, section 327.20, 
 63.3   subdivision 1, is amended to read: 
 63.4      Subdivision 1.  [RULES.] No domestic animals or house pets 
 63.5   of occupants of manufactured home parks or recreational camping 
 63.6   areas shall be allowed to run at large, or commit any nuisances 
 63.7   within the limits of a manufactured home park or recreational 
 63.8   camping area.  Each manufactured home park or recreational 
 63.9   camping area licensed under the provisions of sections 327.10, 
 63.10  327.11, 327.14 to 327.28 shall, among other things, provide for 
 63.11  the following, in the manner hereinafter specified: 
 63.12     (1) A responsible attendant or caretaker shall be in charge 
 63.13  of every manufactured home park or recreational camping area at 
 63.14  all times, who shall maintain the park or area, and its 
 63.15  facilities and equipment in a clean, orderly and sanitary 
 63.16  condition.  In any manufactured home park containing more than 
 63.17  50 lots, the attendant, caretaker, or other responsible park 
 63.18  employee, shall be readily available at all times in case of 
 63.19  emergency.  
 63.20     (2) All manufactured home parks shall be well drained and 
 63.21  be located so that the drainage of the park area will not 
 63.22  endanger any water supply.  No waste water from manufactured 
 63.23  homes or recreational camping vehicles shall be deposited on the 
 63.24  surface of the ground.  All sewage and other water carried 
 63.25  wastes shall be discharged into a municipal sewage system 
 63.26  whenever available.  When a municipal sewage system is not 
 63.27  available, a sewage disposal system acceptable to the state 
 63.28  commissioner of health shall be provided. 
 63.29     (3) No manufactured home shall be located closer than three 
 63.30  feet to the side lot lines of a manufactured home park, if the 
 63.31  abutting property is improved property, or closer than ten feet 
 63.32  to a public street or alley.  Each individual site shall abut or 
 63.33  face on a driveway or clear unoccupied space of not less than 16 
 63.34  feet in width, which space shall have unobstructed access to a 
 63.35  public highway or alley.  There shall be an open space of at 
 63.36  least ten feet between the sides of adjacent manufactured homes 
 64.1   including their attachments and at least three feet between 
 64.2   manufactured homes when parked end to end.  The space between 
 64.3   manufactured homes may be used for the parking of motor vehicles 
 64.4   and other property, if the vehicle or other property is parked 
 64.5   at least ten feet from the nearest adjacent manufactured home 
 64.6   position.  The requirements of this paragraph shall not apply to 
 64.7   recreational camping areas and variances may be granted by the 
 64.8   state commissioner of health in manufactured home parks when the 
 64.9   variance is applied for in writing and in the opinion of the 
 64.10  commissioner the variance will not endanger the health, safety, 
 64.11  and welfare of manufactured home park occupants. 
 64.12     (4) An adequate supply of water of safe, sanitary quality 
 64.13  shall be furnished at each manufactured home park or 
 64.14  recreational camping area.  The source of the water supply shall 
 64.15  first be approved by the state department of health.  
 64.16     (5) All plumbing shall be installed in accordance with the 
 64.17  rules of the state commissioner of health and the provisions of 
 64.18  the Minnesota plumbing code. 
 64.19     (6) In the case of a manufactured home park with less than 
 64.20  ten manufactured homes, a plan for the sheltering or the safe 
 64.21  evacuation to a safe place of shelter of the residents of the 
 64.22  park in times of severe weather conditions, such as tornadoes, 
 64.23  high winds, and floods.  The shelter or evacuation plan shall be 
 64.24  developed with the assistance and approval of the municipality 
 64.25  where the park is located and shall be posted at conspicuous 
 64.26  locations throughout the park.  The park owner shall provide 
 64.27  each resident with a copy of the approved shelter or evacuation 
 64.28  plan, as provided by section 327C.01, subdivision 1c.  Nothing 
 64.29  in this paragraph requires the department of health to review or 
 64.30  approve any shelter or evacuation plan developed by a park.  
 64.31  Failure of a municipality to approve a plan submitted by a park 
 64.32  shall not be grounds for action against the park by the 
 64.33  department of health if the park has made a good faith effort to 
 64.34  develop the plan and obtain municipal approval.  
 64.35     (7) A manufactured home park with ten or more manufactured 
 64.36  homes, licensed prior to March 1, 1988, shall provide a safe 
 65.1   place of shelter for park residents or a plan for the evacuation 
 65.2   of park residents to a safe place of shelter within a reasonable 
 65.3   distance of the park for use by park residents in times of 
 65.4   severe weather, including tornadoes and high winds.  The shelter 
 65.5   or evacuation plan must be approved by the municipality by March 
 65.6   1, 1989.  The municipality may require the park owner to 
 65.7   construct a shelter if it determines that a safe place of 
 65.8   shelter is not available within a reasonable distance from the 
 65.9   park.  A copy of the municipal approval and the plan shall be 
 65.10  submitted by the park owner to the department of health.  The 
 65.11  park owner shall provide each resident with a copy of the 
 65.12  approved shelter or evacuation plan, as provided by section 
 65.13  327C.01, subdivision 1c.  
 65.14     (8) A manufactured home park with ten or more manufactured 
 65.15  homes, receiving a primary license after March 1, 1988, must 
 65.16  provide the type of shelter required by section 327.205, except 
 65.17  that for manufactured home parks established as temporary, 
 65.18  emergency housing in a disaster area declared by the President 
 65.19  of the United States or the governor, an approved evacuation 
 65.20  plan may be provided in lieu of a shelter for a period not 
 65.21  exceeding 18 months. 
 65.22     (9) For the purposes of this subdivision, "park owner" and 
 65.23  "resident" have the meaning given them in section 327C.01. 
 65.24     Sec. 30.  [GRANT PROGRAM FOR JUVENILE ASSESSMENT CENTERS.] 
 65.25     Subdivision 1.  [PROGRAM DESCRIBED.] The commissioner of 
 65.26  health shall administer a pilot project grant program to award 
 65.27  grants to no more than three judicial districts to develop and 
 65.28  implement plans to create juvenile assessment centers.  A 
 65.29  juvenile assessment center is a 24-hour centralized receiving, 
 65.30  processing, and intervention facility for children who are 
 65.31  accused of committing delinquent acts or status offenses or who 
 65.32  are alleged to have been victims of abuse or neglect. 
 65.33     Subd. 2.  [WORKING GROUPS AUTHORIZED; PLANS REQUIRED.] The 
 65.34  chief judge of a judicial district or the judge's designee may 
 65.35  convene a working group consisting of individuals experienced in 
 65.36  providing services to children.  A working group shall consist 
 66.1   of, but is not limited to, representatives from substance abuse 
 66.2   programs, domestic abuse programs, child protection agencies, 
 66.3   mental health providers, mental health collaboratives, law 
 66.4   enforcement agencies, schools, health service providers, and 
 66.5   higher education institutions.  The working group shall 
 66.6   cooperatively develop a plan to create a juvenile assessment 
 66.7   center in the judicial district.  Juvenile assessment centers 
 66.8   must provide initial screening for children, including intake 
 66.9   and needs assessments, substance abuse screening, physical and 
 66.10  mental health screening, fetal alcohol syndrome and fetal 
 66.11  alcohol exposure screening, and diagnostic educational testing, 
 66.12  as appropriate.  The entities involved in the assessment center 
 66.13  shall make the resources for the provision of these assessments 
 66.14  available at the same level to which they are available to the 
 66.15  general public.  The plan must include, but is not limited to, 
 66.16  recommended screening tools to assess children to determine 
 66.17  their needs and assets; protocols to determine how children 
 66.18  should enter the center, what will happen at the center, and 
 66.19  what will happen after the child leaves the center; methods to 
 66.20  share information in a manner consistent with existing law; and 
 66.21  information on how the center will collaborate with a higher 
 66.22  educational institution that has expertise in the research, 
 66.23  programming, and evaluation of children's services.  The plan 
 66.24  may also address the provision of services to children. 
 66.25     Subd. 3.  [COOPERATION WITH WORKING GROUPS.] The 
 66.26  commissioner may provide technical assistance to the working 
 66.27  groups and judicial districts.  If the working groups identify 
 66.28  any necessary changes in data privacy laws that would facilitate 
 66.29  the operation of the assessment centers, the commissioner may 
 66.30  recommend these changes to the legislature. 
 66.31     Subd. 4.  [AWARDING OF GRANTS.] By January 1, 1998, the 
 66.32  commissioner shall award grants under this section to judicial 
 66.33  districts to develop plans to create juvenile assessment 
 66.34  centers.  Each district awarded a planning grant shall submit 
 66.35  its plan to the commissioner.  The commissioner shall review the 
 66.36  plans and award grants to districts whose plans have been 
 67.1   approved to develop an assessment center. 
 67.2      Subd. 5.  [REPORT.] By January 15, 1999, the commissioner 
 67.3   shall report to the legislature on the planning and 
 67.4   implementation grants awarded under this section. 
 67.5      Sec. 31.  [FUNDING SOURCES FOR THE MEDICAL EDUCATION AND 
 67.6   RESEARCH TRUST FUND.] 
 67.7      (a) The commissioner of health, in consultation with the 
 67.8   medical education and research costs advisory committee, shall 
 67.9   continue to consider additional broad-based funding sources, and 
 67.10  shall recommend potential sources of funding to the legislature 
 67.11  by February 15, 1998. 
 67.12     (b) The commissioner of health, in consultation with the 
 67.13  commissioner of human services, shall examine the 
 67.14  appropriateness of transferring an educational component from 
 67.15  the MinnesotaCare rates to the medical education and research 
 67.16  trust fund, and the appropriate amount and timing of any such 
 67.17  transfer.  The commissioner shall report recommendations on the 
 67.18  feasibility of including MinnesotaCare funding in the trust fund 
 67.19  to the legislature by February 15, 1998. 
 67.20     Sec. 32.  [RULE CHANGE; RADIOGRAPHIC ABSORPTIONMETRY.] 
 67.21     Upon review and recommendation by the health technology 
 67.22  advisory committee regarding the impact on patients the 
 67.23  commissioner of health shall examine the appropriateness of, and 
 67.24  if appropriate, may amend Minnesota Rules, part 4730.1210, 
 67.25  subpart 2, item G, to permit the use of direct exposure x-ray 
 67.26  film in radiographic absorptionmetry for the diagnosis and 
 67.27  management of osteoporosis.  The commissioner may use the 
 67.28  rulemaking procedures under Minnesota Statutes, section 14.388. 
 67.29     Sec. 33.  [MINORITY HEALTH INITIATIVE.] 
 67.30     Subdivision 1.  [PURPOSE.] The purpose of this section is 
 67.31  to plan for the expansion and increase of information and 
 67.32  statistical research on minority health in Minnesota.  The plan 
 67.33  must build upon the recommendations of the 1997 populations of 
 67.34  color in Minnesota health status report. 
 67.35     Subd. 2.  [REPORT TO THE LEGISLATURE.] (a) The commissioner 
 67.36  of health, through the office of minority health, shall prepare 
 68.1   and transmit to the legislature, according to Minnesota 
 68.2   Statutes, section 3.195, and no later than January 15, 1998, a 
 68.3   written report addressing the following: 
 68.4      (1) identifying the legal and administrative barriers that 
 68.5   hinder the sharing of information on minority health issues 
 68.6   among executive branch agencies, and recommending remedies to 
 68.7   these barriers; 
 68.8      (2) assessing the current database of information on 
 68.9   minority health issues, evaluating data collection standards and 
 68.10  procedures in the department of health, identifying minority 
 68.11  health issues that should be given priority for increased 
 68.12  research to close the gaps and disparities including cancer 
 68.13  incidence among populations of color, and recommending methods 
 68.14  for expanding the current database of information on minority 
 68.15  health; and 
 68.16     (3) planning a grant program targeted at supporting 
 68.17  minority health and wellness programs that focus on prevention 
 68.18  of illness and disease, health education, and health promotion. 
 68.19     (b) As part of the report in paragraph (a), the 
 68.20  commissioner, through the office of minority health, shall study 
 68.21  how the department of health could be better organized to 
 68.22  accomplish the tasks specified in paragraph (a) and shall 
 68.23  propose an organizational structure to accomplish these tasks. 
 68.24     (c) The commissioner, through the office of minority 
 68.25  health, may appoint advisory committees as appropriate to 
 68.26  accomplish the tasks in paragraphs (a) and (b).  The terms, 
 68.27  compensation, and removal of members are governed by Minnesota 
 68.28  Statutes, section 15.059, except that members do not receive per 
 68.29  diem compensation. 
 68.30     Sec. 34.  [STUDY OF HIV AND HBV PREVENTION PROGRAM.] 
 68.31     The commissioner of health shall evaluate the effectiveness 
 68.32  of the HIV and HBV prevention program established under 
 68.33  Minnesota Statutes, sections 214.17 to 214.25.  The commissioner 
 68.34  shall evaluate the effectiveness of the program in maintaining 
 68.35  public confidence in the safety of health care provider 
 68.36  settings, educating the public about HIV infection risk in such 
 69.1   settings, prevention of HIV and HBV infections, and fairly and 
 69.2   efficiently working with affected health care providers.  The 
 69.3   results in Minnesota shall be compared to similar efforts in 
 69.4   other states.  The commissioner shall present recommendations to 
 69.5   the legislature by January 15, 1998, on whether the program 
 69.6   should be continued, and whether modifications to the program 
 69.7   are necessary if a recommendation is made to continue the 
 69.8   program. 
 69.9      Sec. 35.  [REPORT REQUIRED; CALS PROGRAM.] 
 69.10     The emergency medical services regulatory board, by 
 69.11  December 1, 1999, shall report to the chairs of the house health 
 69.12  and human services finance division and the senate health and 
 69.13  family security budget division on the implementation of the 
 69.14  comprehensive advanced life support (CALS) program or similar 
 69.15  program. 
 69.16     Sec. 36.  [FAMILY PLANNING GRANT REVIEW.] 
 69.17     The commissioner of health shall conduct a review of the 
 69.18  family planning special projects grant process and shall report 
 69.19  the results of its review to the legislature by February 15, 
 69.20  1998. 
 69.21     Sec. 37.  [REPEALER.] 
 69.22     Minnesota Statutes 1996, section 145.9256, is repealed. 
 69.23     Sec. 38.  [EFFECTIVE DATE.] 
 69.24     Sections 4 to 6, 17, and 27, subdivision 1 are effective 
 69.25  July 1, 1998. 
 69.26                             ARTICLE 3 
 69.27                     LONG-TERM CARE FACILITIES
 69.28     Section 1.  Minnesota Statutes 1996, section 144A.071, 
 69.29  subdivision 1, is amended to read: 
 69.30     Subdivision 1.  [FINDINGS.] The legislature declares that a 
 69.31  moratorium on the licensure and medical assistance certification 
 69.32  of new nursing home beds and construction projects that exceed 
 69.33  the lesser of $500,000 or 25 percent of a facility's appraised 
 69.34  value $750,000 is necessary to control nursing home expenditure 
 69.35  growth and enable the state to meet the needs of its elderly by 
 69.36  providing high quality services in the most appropriate manner 
 70.1   along a continuum of care.  
 70.2      Sec. 2.  Minnesota Statutes 1996, section 144A.071, 
 70.3   subdivision 2, is amended to read: 
 70.4      Subd. 2.  [MORATORIUM.] The commissioner of health, in 
 70.5   coordination with the commissioner of human services, shall deny 
 70.6   each request for new licensed or certified nursing home or 
 70.7   certified boarding care beds except as provided in subdivision 3 
 70.8   or 4a, or section 144A.073.  "Certified bed" means a nursing 
 70.9   home bed or a boarding care bed certified by the commissioner of 
 70.10  health for the purposes of the medical assistance program, under 
 70.11  United States Code, title 42, sections 1396 et seq.  
 70.12     The commissioner of human services, in coordination with 
 70.13  the commissioner of health, shall deny any request to issue a 
 70.14  license under section 252.28 and chapter 245A to a nursing home 
 70.15  or boarding care home, if that license would result in an 
 70.16  increase in the medical assistance reimbursement amount.  
 70.17     In addition, the commissioner of health must not approve 
 70.18  any construction project whose cost exceeds $500,000, or 25 
 70.19  percent of the facility's appraised value, whichever is less, 
 70.20  $750,000 unless: 
 70.21     (a) any construction costs exceeding the lesser of $500,000 
 70.22  or 25 percent of the facility's appraised value $750,000 are not 
 70.23  added to the facility's appraised value and are not included in 
 70.24  the facility's payment rate for reimbursement under the medical 
 70.25  assistance program; or 
 70.26     (b) the project: 
 70.27     (1) has been approved through the process described in 
 70.28  section 144A.073; 
 70.29     (2) meets an exception in subdivision 3 or 4a; 
 70.30     (3) is necessary to correct violations of state or federal 
 70.31  law issued by the commissioner of health; 
 70.32     (4) is necessary to repair or replace a portion of the 
 70.33  facility that was damaged by fire, lightning, groundshifts, or 
 70.34  other such hazards, including environmental hazards, provided 
 70.35  that the provisions of subdivision 4a, clause (a), are met; 
 70.36     (5) as of May 1, 1992, the facility has submitted to the 
 71.1   commissioner of health written documentation evidencing that the 
 71.2   facility meets the "commenced construction" definition as 
 71.3   specified in subdivision 1a, clause (d), or that substantial 
 71.4   steps have been taken prior to April 1, 1992, relating to the 
 71.5   construction project.  "Substantial steps" require that the 
 71.6   facility has made arrangements with outside parties relating to 
 71.7   the construction project and include the hiring of an architect 
 71.8   or construction firm, submission of preliminary plans to the 
 71.9   department of health or documentation from a financial 
 71.10  institution that financing arrangements for the construction 
 71.11  project have been made; or 
 71.12     (6) is being proposed by a licensed nursing facility that 
 71.13  is not certified to participate in the medical assistance 
 71.14  program and will not result in new licensed or certified beds. 
 71.15     Prior to the final plan approval of any construction 
 71.16  project, the commissioner of health shall be provided with an 
 71.17  itemized cost estimate for the project construction costs.  If a 
 71.18  construction project is anticipated to be completed in phases, 
 71.19  the total estimated cost of all phases of the project shall be 
 71.20  submitted to the commissioner and shall be considered as one 
 71.21  construction project.  Once the construction project is 
 71.22  completed and prior to the final clearance by the commissioner, 
 71.23  the total project construction costs for the construction 
 71.24  project shall be submitted to the commissioner.  If the final 
 71.25  project construction cost exceeds the dollar threshold in this 
 71.26  subdivision, the commissioner of human services shall not 
 71.27  recognize any of the project construction costs or the related 
 71.28  financing costs in excess of this threshold in establishing the 
 71.29  facility's property-related payment rate. 
 71.30     The dollar thresholds for construction projects are as 
 71.31  follows:  for construction projects other than those authorized 
 71.32  in clauses (1) to (6), the dollar threshold is $500,000 or 25 
 71.33  percent of appraised value, whichever is less $750,000.  For 
 71.34  projects authorized after July 1, 1993, under clause (1), the 
 71.35  dollar threshold is the cost estimate submitted with a proposal 
 71.36  for an exception under section 144A.073, plus inflation as 
 72.1   calculated according to section 256B.431, subdivision 3f, 
 72.2   paragraph (a).  For projects authorized under clauses (2) to 
 72.3   (4), the dollar threshold is the itemized estimate project 
 72.4   construction costs submitted to the commissioner of health at 
 72.5   the time of final plan approval, plus inflation as calculated 
 72.6   according to section 256B.431, subdivision 3f, paragraph (a). 
 72.7      The commissioner of health shall adopt rules to implement 
 72.8   this section or to amend the emergency rules for granting 
 72.9   exceptions to the moratorium on nursing homes under section 
 72.10  144A.073.  
 72.11     Sec. 3.  Minnesota Statutes 1996, section 144A.073, 
 72.12  subdivision 2, is amended to read: 
 72.13     Subd. 2.  [REQUEST FOR PROPOSALS.] At the authorization by 
 72.14  the legislature of additional medical assistance expenditures 
 72.15  for exceptions to the moratorium on nursing homes, the 
 72.16  interagency committee shall publish in the State Register a 
 72.17  request for proposals for nursing home projects to be licensed 
 72.18  or certified under section 144A.071, subdivision 4a, clause 
 72.19  (c).  The public notice of this funding and the request for 
 72.20  proposals must specify how the approval criteria will be 
 72.21  prioritized by the advisory review panel, the interagency 
 72.22  long-term care planning committee, and the commissioner.  The 
 72.23  notice must describe the information that must accompany a 
 72.24  request and state that proposals must be submitted to the 
 72.25  interagency committee within 90 days of the date of 
 72.26  publication.  The notice must include the amount of the 
 72.27  legislative appropriation available for the additional costs to 
 72.28  the medical assistance program of projects approved under this 
 72.29  section.  If no money is appropriated for a year, the 
 72.30  interagency committee shall publish a notice to that effect, and 
 72.31  no proposals shall be requested.  If money is appropriated, the 
 72.32  interagency committee shall initiate the application and review 
 72.33  process described in this section at least twice each biennium 
 72.34  and up to four times each biennium, according to dates 
 72.35  established by rule.  Authorized funds shall be allocated 
 72.36  proportionally to the number of processes.  Funds not encumbered 
 73.1   by an earlier process within a biennium shall carry forward to 
 73.2   subsequent iterations of the process.  Authorization for 
 73.3   expenditures does not carry forward into the following 
 73.4   biennium.  To be considered for approval, a proposal must 
 73.5   include the following information: 
 73.6      (1) whether the request is for renovation, replacement, 
 73.7   upgrading, conversion, or relocation; 
 73.8      (2) a description of the problem the project is designed to 
 73.9   address; 
 73.10     (3) a description of the proposed project; 
 73.11     (4) an analysis of projected costs of the nursing facility 
 73.12  proposal, which are not required to exceed the cost threshold 
 73.13  referred to in section 144A.071, subdivision 1, to be considered 
 73.14  under this section, including initial construction and 
 73.15  remodeling costs; site preparation costs; financing costs, 
 73.16  including the current estimated long-term financing costs of the 
 73.17  proposal, which consists of estimates of the amount and sources 
 73.18  of money, reserves if required under the proposed funding 
 73.19  mechanism, annual payments schedule, interest rates, length of 
 73.20  term, closing costs and fees, insurance costs, and any completed 
 73.21  marketing study or underwriting review; and estimated operating 
 73.22  costs during the first two years after completion of the 
 73.23  project; 
 73.24     (5) for proposals involving replacement of all or part of a 
 73.25  facility, the proposed location of the replacement facility and 
 73.26  an estimate of the cost of addressing the problem through 
 73.27  renovation; 
 73.28     (6) for proposals involving renovation, an estimate of the 
 73.29  cost of addressing the problem through replacement; 
 73.30     (7) the proposed timetable for commencing construction and 
 73.31  completing the project; 
 73.32     (8) a statement of any licensure or certification issues, 
 73.33  such as certification survey deficiencies; 
 73.34     (9) the proposed relocation plan for current residents if 
 73.35  beds are to be closed so that the department of human services 
 73.36  can estimate the total costs of a proposal; and 
 74.1      (10) other information required by permanent rule of the 
 74.2   commissioner of health in accordance with subdivisions 4 and 8. 
 74.3      Sec. 4.  Minnesota Statutes 1996, section 144A.073, is 
 74.4   amended by adding a subdivision to read: 
 74.5      Subd. 9.  [BUDGET REQUEST.] The commissioner of human 
 74.6   services, in consultation with the commissioner of finance, 
 74.7   shall include in each biennial budget request a line item for 
 74.8   the nursing home moratorium exception process.  If the 
 74.9   commissioner of human services does not request funding for this 
 74.10  item, the commissioner of human services must justify the 
 74.11  decision in the budget pages. 
 74.12     Sec. 5.  Minnesota Statutes 1996, section 252.28, is 
 74.13  amended by adding a subdivision to read: 
 74.14     Subd. 3a.  [LICENSING EXCEPTION.] Notwithstanding the 
 74.15  provisions of subdivision 3, the commissioner may license 
 74.16  service sites, each accommodating up to six residents moving 
 74.17  from a 48-bed intermediate care facility for persons with mental 
 74.18  retardation or related conditions located in Dakota county that 
 74.19  is closing under section 252.292. 
 74.20     Sec. 6.  Minnesota Statutes 1996, section 256B.421, 
 74.21  subdivision 1, is amended to read: 
 74.22     Subdivision 1.  [SCOPE.] For the purposes of this section 
 74.23  and sections 256B.41, 256B.411, 256B.431, 256B.432, 
 74.24  256B.433, 256B.434, 256B.47, 256B.48, 256B.50, and 256B.502, the 
 74.25  following terms and phrases shall have the meaning given to them.
 74.26     Sec. 7.  Minnesota Statutes 1996, section 256B.431, 
 74.27  subdivision 25, is amended to read: 
 74.28     Subd. 25.  [CHANGES TO NURSING FACILITY REIMBURSEMENT 
 74.29  BEGINNING JULY 1, 1995.] The nursing facility reimbursement 
 74.30  changes in paragraphs (a) to (h) shall apply in the sequence 
 74.31  specified to Minnesota Rules, parts 9549.0010 to 9549.0080, and 
 74.32  this section, beginning July 1, 1995. 
 74.33     (a) The eight-cent adjustment to care-related rates in 
 74.34  subdivision 22, paragraph (e), shall no longer apply. 
 74.35     (b) For rate years beginning on or after July 1, 1995, the 
 74.36  commissioner shall limit a nursing facility's allowable 
 75.1   operating per diem for each case mix category for each rate year 
 75.2   as in clauses (1) to (3). 
 75.3      (1) For the rate year beginning July 1, 1995, the 
 75.4   commissioner shall group nursing facilities into two groups, 
 75.5   freestanding and nonfreestanding, within each geographic group, 
 75.6   using their operating cost per diem for the case mix A 
 75.7   classification.  A nonfreestanding nursing facility is a nursing 
 75.8   facility whose other operating cost per diem is subject to the 
 75.9   hospital attached, short length of stay, or the rule 80 limits.  
 75.10  All other nursing facilities shall be considered freestanding 
 75.11  nursing facilities.  The commissioner shall then array all 
 75.12  nursing facilities in each grouping by their allowable case mix 
 75.13  A operating cost per diem.  In calculating a nursing facility's 
 75.14  operating cost per diem for this purpose, the commissioner shall 
 75.15  exclude the raw food cost per diem related to providing special 
 75.16  diets that are based on religious beliefs, as determined in 
 75.17  subdivision 2b, paragraph (h).  For those nursing facilities in 
 75.18  each grouping whose case mix A operating cost per diem: 
 75.19     (i) is at or below the median minus 1.0 standard deviation 
 75.20  of the array, the commissioner shall limit the nursing 
 75.21  facility's allowable operating cost per diem for each case mix 
 75.22  category to the lesser of the prior reporting year's allowable 
 75.23  operating cost per diems plus the inflation factor as 
 75.24  established in paragraph (f), clause (2), increased by six 
 75.25  percentage points, or the current reporting year's corresponding 
 75.26  allowable operating cost per diem; 
 75.27     (ii) is between minus .5 standard deviation and minus 1.0 
 75.28  standard deviation below the median of the array, the 
 75.29  commissioner shall limit the nursing facility's allowable 
 75.30  operating cost per diem for each case mix category to the lesser 
 75.31  of the prior reporting year's allowable operating cost per diems 
 75.32  plus the inflation factor as established in paragraph (f), 
 75.33  clause (2), increased by four percentage points, or the current 
 75.34  reporting year's corresponding allowable operating cost per 
 75.35  diem; or 
 75.36     (iii) is equal to or above minus .5 standard deviation 
 76.1   below the median of the array, the commissioner shall limit the 
 76.2   nursing facility's allowable operating cost per diem for each 
 76.3   case mix category to the lesser of the prior reporting year's 
 76.4   allowable operating cost per diems plus the inflation factor as 
 76.5   established in paragraph (f), clause (2), increased by three 
 76.6   percentage points, or the current reporting year's corresponding 
 76.7   allowable operating cost per diem. 
 76.8      (2) For the rate year beginning on July 1, 1996, the 
 76.9   commissioner shall limit the nursing facility's allowable 
 76.10  operating cost per diem for each case mix category to the lesser 
 76.11  of the prior reporting year's allowable operating cost per diems 
 76.12  plus the inflation factor as established in paragraph (f), 
 76.13  clause (2), increased by one percentage point or the current 
 76.14  reporting year's corresponding allowable operating cost per 
 76.15  diems; and 
 76.16     (3) For rate years beginning on or after July 1, 1997, the 
 76.17  commissioner shall limit the nursing facility's allowable 
 76.18  operating cost per diem for each case mix category to the lesser 
 76.19  of the reporting year prior to the current reporting year's 
 76.20  allowable operating cost per diems plus the inflation factor as 
 76.21  established in paragraph (f), clause (2), or the current 
 76.22  reporting year's corresponding allowable operating cost per 
 76.23  diems. 
 76.24     (c) For rate years beginning on July 1, 1995, the 
 76.25  commissioner shall limit the allowable operating cost per diems 
 76.26  for high cost nursing facilities.  After application of the 
 76.27  limits in paragraph (b) to each nursing facility's operating 
 76.28  cost per diems, the commissioner shall group nursing facilities 
 76.29  into two groups, freestanding or nonfreestanding, within each 
 76.30  geographic group.  A nonfreestanding nursing facility is a 
 76.31  nursing facility whose other operating cost per diems are 
 76.32  subject to hospital attached, short length of stay, or rule 80 
 76.33  limits.  All other nursing facilities shall be considered 
 76.34  freestanding nursing facilities.  The commissioner shall then 
 76.35  array all nursing facilities within each grouping by their 
 76.36  allowable case mix A operating cost per diems.  In calculating a 
 77.1   nursing facility's operating cost per diem for this purpose, the 
 77.2   commissioner shall exclude the raw food cost per diem related to 
 77.3   providing special diets that are based on religious beliefs, as 
 77.4   determined in subdivision 2b, paragraph (h).  For those nursing 
 77.5   facilities in each grouping whose case mix A operating cost per 
 77.6   diem exceeds 1.0 standard deviation above the median, the 
 77.7   commissioner shall reduce their allowable operating cost per 
 77.8   diems by two percent.  For those nursing facilities in each 
 77.9   grouping whose case mix A operating cost per diem exceeds 0.5 
 77.10  standard deviation above the median but is less than or equal to 
 77.11  1.0 standard deviation above the median, the commissioner shall 
 77.12  reduce their allowable operating cost per diems by one percent. 
 77.13     (d) For rate years beginning on or after July 1, 1996, the 
 77.14  commissioner shall limit the allowable operating cost per diems 
 77.15  for high cost nursing facilities.  After application of the 
 77.16  limits in paragraph (b) to each nursing facility's operating 
 77.17  cost per diems, the commissioner shall group nursing facilities 
 77.18  into two groups, freestanding or nonfreestanding, within each 
 77.19  geographic group.  A nonfreestanding nursing facility is a 
 77.20  nursing facility whose other operating cost per diems are 
 77.21  subject to hospital attached, short length of stay, or rule 80 
 77.22  limits.  All other nursing facilities shall be considered 
 77.23  freestanding nursing facilities.  The commissioner shall then 
 77.24  array all nursing facilities within each grouping by their 
 77.25  allowable case mix A operating cost per diems.  In calculating a 
 77.26  nursing facility's operating cost per diem for this purpose, the 
 77.27  commissioner shall exclude the raw food cost per diem related to 
 77.28  providing special diets that are based on religious beliefs, as 
 77.29  determined in subdivision 2b, paragraph (h).  In those nursing 
 77.30  facilities in each grouping whose case mix A operating cost per 
 77.31  diem exceeds 1.0 standard deviation above the median, the 
 77.32  commissioner shall reduce their allowable operating cost per 
 77.33  diems by three percent.  For those nursing facilities in each 
 77.34  grouping whose case mix A operating cost per diem exceeds 0.5 
 77.35  standard deviation above the median but is less than or equal to 
 77.36  1.0 standard deviation above the median, the commissioner shall 
 78.1   reduce their allowable operating cost per diems by two percent. 
 78.2      (e) For rate years beginning on or after July 1, 1995, the 
 78.3   commissioner shall determine a nursing facility's efficiency 
 78.4   incentive by first computing the allowable difference, which is 
 78.5   the lesser of $4.50 or the amount by which the facility's other 
 78.6   operating cost limit exceeds its nonadjusted other operating 
 78.7   cost per diem for that rate year.  The commissioner shall 
 78.8   compute the efficiency incentive by: 
 78.9      (1) subtracting the allowable difference from $4.50 and 
 78.10  dividing the result by $4.50; 
 78.11     (2) multiplying 0.20 by the ratio resulting from clause 
 78.12  (1), and then; 
 78.13     (3) adding 0.50 to the result from clause (2); and 
 78.14     (4) multiplying the result from clause (3) times the 
 78.15  allowable difference. 
 78.16     The nursing facility's efficiency incentive payment shall 
 78.17  be the lesser of $2.25 or the product obtained in clause (4). 
 78.18     (f) For rate years beginning on or after July 1, 1995, the 
 78.19  forecasted price index for a nursing facility's allowable 
 78.20  operating cost per diems shall be determined under clauses (1) 
 78.21  to (3) using the change in the Consumer Price Index-All Items 
 78.22  (United States city average) (CPI-U) or the change in the 
 78.23  Nursing Home Market Basket, both as forecasted by Data Resources 
 78.24  Inc., whichever is applicable.  The commissioner shall use the 
 78.25  indices as forecasted in the fourth quarter of the calendar year 
 78.26  preceding the rate year, subject to subdivision 2l, paragraph 
 78.27  (c).  If, as a result of federal legislative or administrative 
 78.28  action, the methodology used to calculate the Consumer Price 
 78.29  Index-All Items (United States city average) (CPI-U) changes, 
 78.30  the commissioner shall develop a conversion factor or other 
 78.31  methodology to convert the CPI-U index factor that results from 
 78.32  the new methodology to an index factor that approximates, as 
 78.33  closely as possible, the index factor that would have resulted 
 78.34  from application of the original CPI-U methodology prior to any 
 78.35  changes in methodology.  The commissioner shall use the 
 78.36  conversion factor or other methodology to calculate an adjusted 
 79.1   inflation index.  The adjusted inflation index must be used to 
 79.2   calculate payment rates under this section instead of the CPI-U 
 79.3   index specified in paragraph (d).  If the commissioner is 
 79.4   required to develop an adjusted inflation index, the 
 79.5   commissioner shall report to the legislature as part of the next 
 79.6   budget submission the fiscal impact of applying this index. 
 79.7      (1) The CPI-U forecasted index for allowable operating cost 
 79.8   per diems shall be based on the 21-month period from the 
 79.9   midpoint of the nursing facility's reporting year to the 
 79.10  midpoint of the rate year following the reporting year. 
 79.11     (2) The Nursing Home Market Basket forecasted index for 
 79.12  allowable operating costs and per diem limits shall be based on 
 79.13  the 12-month period between the midpoints of the two reporting 
 79.14  years preceding the rate year. 
 79.15     (3) For rate years beginning on or after July 1, 1996, the 
 79.16  forecasted index for operating cost limits referred to in 
 79.17  subdivision 21, paragraph (b), shall be based on the CPI-U for 
 79.18  the 12-month period between the midpoints of the two reporting 
 79.19  years preceding the rate year. 
 79.20     (g) After applying these provisions for the respective rate 
 79.21  years, the commissioner shall index these allowable operating 
 79.22  costs per diems by the inflation factor provided for in 
 79.23  paragraph (f), clause (1), and add the nursing facility's 
 79.24  efficiency incentive as computed in paragraph (e). 
 79.25     (h)(1) A nursing facility licensed for 302 beds on 
 79.26  September 30, 1993, that was approved under the moratorium 
 79.27  exception process in section 144A.073 for a partial replacement, 
 79.28  and completed the replacement project in December 1994, is 
 79.29  exempt from paragraphs (b) to (d) for rate years beginning on or 
 79.30  after July 1, 1995. 
 79.31     (2) For the rate year beginning July 1, 1997, after 
 79.32  computing this nursing facility's payment rate according to 
 79.33  section 256B.434, the commissioner shall make a one-year rate 
 79.34  adjustment of $8.62 to the facility's contract payment rate for 
 79.35  the rate effect of operating cost changes associated with the 
 79.36  facility's 1994 downsizing project. 
 80.1      (3) For rate years beginning on or after July 1, 1997, the 
 80.2   commissioner shall add 35 cents to the facility's base property 
 80.3   related payment rate for the rate effect of reducing its 
 80.4   licensed capacity to 290 beds from 302 beds and shall add 83 
 80.5   cents to the facility's real estate tax and special assessment 
 80.6   payment rate for payments in lieu of real estate taxes.  The 
 80.7   adjustments in this clause shall remain in effect for the 
 80.8   duration of the facility's contract under section 256B.434. 
 80.9      (i) Notwithstanding Laws 1996, chapter 451, article 3, 
 80.10  section 11, paragraph (h), for the rate years beginning on July 
 80.11  1, 1996, July 1, 1997, and July 1, 1998, a nursing facility 
 80.12  licensed for 40 beds effective May 1, 1992, with a subsequent 
 80.13  increase of 20 Medicare/Medicaid certified beds, effective 
 80.14  January 26, 1993, in accordance with an increase in licensure is 
 80.15  exempt from paragraphs (b) to (d). 
 80.16     Sec. 8.  Minnesota Statutes 1996, section 256B.431, is 
 80.17  amended by adding a subdivision to read: 
 80.18     Subd. 26.  [CHANGES TO NURSING FACILITY REIMBURSEMENT 
 80.19  BEGINNING JULY 1, 1997.] The nursing facility reimbursement 
 80.20  changes in paragraphs (a) to (f) shall apply in the sequence 
 80.21  specified in Minnesota Rules, parts 9549.0010 to 9549.0080, and 
 80.22  this section, beginning July 1, 1997. 
 80.23     (a) For rate years beginning on or after July 1, 1997, the 
 80.24  commissioner shall limit a nursing facility's allowable 
 80.25  operating per diem for each case mix category for each rate year.
 80.26  The commissioner shall group nursing facilities into two groups, 
 80.27  freestanding and nonfreestanding, within each geographic group, 
 80.28  using their operating cost per diem for the case mix A 
 80.29  classification.  A nonfreestanding nursing facility is a nursing 
 80.30  facility whose other operating cost per diem is subject to the 
 80.31  hospital attached, short length of stay, or the rule 80 limits.  
 80.32  All other nursing facilities shall be considered freestanding 
 80.33  nursing facilities.  The commissioner shall then array all 
 80.34  nursing facilities in each grouping by their allowable case mix 
 80.35  A operating cost per diem.  In calculating a nursing facility's 
 80.36  operating cost per diem for this purpose, the commissioner shall 
 81.1   exclude the raw food cost per diem related to providing special 
 81.2   diets that are based on religious beliefs, as determined in 
 81.3   subdivision 2b, paragraph (h).  For those nursing facilities in 
 81.4   each grouping whose case mix A operating cost per diem: 
 81.5      (1) is at or below the median of the array, the 
 81.6   commissioner shall limit the nursing facility's allowable 
 81.7   operating cost per diem for each case mix category to the lesser 
 81.8   of the prior reporting year's allowable operating cost per diem 
 81.9   as specified in Laws 1996, chapter 451, article 3, section 11, 
 81.10  paragraph (h), plus the inflation factor as established in 
 81.11  paragraph (d), clause (2), increased by two percentage points, 
 81.12  or the current reporting year's corresponding allowable 
 81.13  operating cost per diem; or 
 81.14     (2) is above the median of the array, the commissioner 
 81.15  shall limit the nursing facility's allowable operating cost per 
 81.16  diem for each case mix category to the lesser of the prior 
 81.17  reporting year's allowable operating cost per diem as specified 
 81.18  in Laws 1996, chapter 451, article 3, section 11, paragraph (h), 
 81.19  plus the inflation factor as established in paragraph (d), 
 81.20  clause (2), increased by one percentage point, or the current 
 81.21  reporting year's corresponding allowable operating cost per diem.
 81.22     (b) For rate years beginning on or after July 1, 1997, the 
 81.23  commissioner shall limit the allowable operating cost per diem 
 81.24  for high cost nursing facilities.  After application of the 
 81.25  limits in paragraph (a) to each nursing facility's operating 
 81.26  cost per diem, the commissioner shall group nursing facilities 
 81.27  into two groups, freestanding or nonfreestanding, within each 
 81.28  geographic group.  A nonfreestanding nursing facility is a 
 81.29  nursing facility whose other operating cost per diem are subject 
 81.30  to hospital attached, short length of stay, or rule 80 limits.  
 81.31  All other nursing facilities shall be considered freestanding 
 81.32  nursing facilities.  The commissioner shall then array all 
 81.33  nursing facilities within each grouping by their allowable case 
 81.34  mix A operating cost per diem.  In calculating a nursing 
 81.35  facility's operating cost per diem for this purpose, the 
 81.36  commissioner shall exclude the raw food cost per diem related to 
 82.1   providing special diets that are based on religious beliefs, as 
 82.2   determined in subdivision 2b, paragraph (h).  For those nursing 
 82.3   facilities in each grouping whose case mix A operating cost per 
 82.4   diem exceeds 1.0 standard deviation above the median, the 
 82.5   commissioner shall reduce their allowable operating cost per 
 82.6   diem by three percent.  For those nursing facilities in each 
 82.7   grouping whose case mix A operating cost per diem exceeds 0.5 
 82.8   standard deviation above the median but is less than or equal to 
 82.9   1.0 standard deviation above the median, the commissioner shall 
 82.10  reduce their allowable operating cost per diem by two percent.  
 82.11  However, in no case shall a nursing facility's operating cost 
 82.12  per diem be reduced below its grouping's limit established at 
 82.13  0.5 standard deviations above the median. 
 82.14     (c) For rate years beginning on or after July 1, 1997, the 
 82.15  commissioner shall determine a nursing facility's efficiency 
 82.16  incentive by first computing the allowable difference, which is 
 82.17  the lesser of $4.50 or the amount by which the facility's other 
 82.18  operating cost limit exceeds its nonadjusted other operating 
 82.19  cost per diem for that rate year.  The commissioner shall 
 82.20  compute the efficiency incentive by: 
 82.21     (1) subtracting the allowable difference from $4.50 and 
 82.22  dividing the result by $4.50; 
 82.23     (2) multiplying 0.20 by the ratio resulting from clause 
 82.24  (1), and then; 
 82.25     (3) adding 0.50 to the result from clause (2); and 
 82.26     (4) multiplying the result from clause (3) times the 
 82.27  allowable difference. 
 82.28     The nursing facility's efficiency incentive payment shall 
 82.29  be the lesser of $2.25 or the product obtained in clause (4). 
 82.30     (d) For rate years beginning on or after July 1, 1997, the 
 82.31  forecasted price index for a nursing facility's allowable 
 82.32  operating cost per diem shall be determined under clauses (1) 
 82.33  and (2) using the change in the Consumer Price Index-All Items 
 82.34  (United States city average) (CPI-U) as forecasted by Data 
 82.35  Resources, Inc.  The commissioner shall use the indices as 
 82.36  forecasted in the fourth quarter of the calendar year preceding 
 83.1   the rate year, subject to subdivision 2l, paragraph (c).  
 83.2      (1) The CPI-U forecasted index for allowable operating cost 
 83.3   per diem shall be based on the 21-month period from the midpoint 
 83.4   of the nursing facility's reporting year to the midpoint of the 
 83.5   rate year following the reporting year. 
 83.6      (2) For rate years beginning on or after July 1, 1997, the 
 83.7   forecasted index for operating cost limits referred to in 
 83.8   subdivision 21, paragraph (b), shall be based on the CPI-U for 
 83.9   the 12-month period between the midpoints of the two reporting 
 83.10  years preceding the rate year. 
 83.11     (e) After applying these provisions for the respective rate 
 83.12  years, the commissioner shall index these allowable operating 
 83.13  cost per diem by the inflation factor provided for in paragraph 
 83.14  (d), clause (1), and add the nursing facility's efficiency 
 83.15  incentive as computed in paragraph (c). 
 83.16     (f) For rate years beginning on or after July 1, 1997, the 
 83.17  total operating cost payment rates for a nursing facility shall 
 83.18  be the greater of the total operating cost payment rates 
 83.19  determined under this section or the total operating cost 
 83.20  payment rates in effect on June 30, 1997, subject to rate 
 83.21  adjustments due to field audit or rate appeal resolution.  This 
 83.22  provision shall not apply to subsequent field audit adjustments 
 83.23  of the nursing facility's operating cost rates for rate years 
 83.24  beginning on or after July 1, 1997. 
 83.25     (g) For the rate years beginning on July 1, 1997, and July 
 83.26  1, 1998, a nursing facility licensed for 40 beds effective May 
 83.27  1, 1992, with a subsequent increase of 20 Medicare/Medicaid 
 83.28  certified beds, effective January 26, 1993, in accordance with 
 83.29  an increase in licensure is exempt from paragraphs (a) and (b). 
 83.30     (h) For a nursing facility whose construction project was 
 83.31  authorized according to section 144A.073, subdivision 5, 
 83.32  paragraph (g), the operating cost payment rates for the third 
 83.33  location shall be determined based on Minnesota Rules, part 
 83.34  9549.0057.  Paragraphs (a) and (b) shall not apply until the 
 83.35  second rate year after the settle-up cost report is filed.  
 83.36  Notwithstanding subdivision 2b, paragraph (g), real estate taxes 
 84.1   and special assessments payable by the third location, a 
 84.2   501(c)(3) nonprofit corporation, shall be included in the 
 84.3   payment rates determined under this subdivision for all 
 84.4   subsequent rate years. 
 84.5      (i) For the rate year beginning July 1, 1997, the 
 84.6   commissioner shall compute the payment rate for a nursing 
 84.7   facility licensed for 94 beds on September 30, 1996, that 
 84.8   applied in October 1993 for approval of a total replacement 
 84.9   under the moratorium exception process in section 144A.073, and 
 84.10  completed the approved replacement in June 1995, with other 
 84.11  operating cost spend-up limit under paragraph (a), increased by 
 84.12  $3.98, and after computing the facility's payment rate according 
 84.13  to this section, the commissioner shall make a one-year positive 
 84.14  rate adjustment of $3.19 for operating costs related to the 
 84.15  newly constructed total replacement, without application of 
 84.16  paragraphs (a) and (b).  The facility's per diem, before the 
 84.17  $3.19 adjustment, shall be used as the prior reporting year's 
 84.18  allowable operating cost per diem for payment rate calculation 
 84.19  for the rate year beginning July 1, 1998.  A facility described 
 84.20  in this paragraph is exempt from paragraph (b) for the rate 
 84.21  years beginning July 1, 1997, and July 1, 1998. 
 84.22     (j) For the purpose of applying the limit stated in 
 84.23  paragraph (a), a nursing facility in Kandiyohi county licensed 
 84.24  for 86 beds that was granted hospital-attached status on 
 84.25  December 1, 1994, shall have the prior year's allowable 
 84.26  care-related per diem increased by $3.207 and the prior year's 
 84.27  other operating cost per diem increased by $4.777 before adding 
 84.28  the inflation in paragraph (d), clause (2), for the rate year 
 84.29  beginning on July 1, 1997. 
 84.30     (k) For the purpose of applying the limit stated in 
 84.31  paragraph (a), a 117 bed nursing facility located in Pine county 
 84.32  shall have the prior year's allowable other operating cost per 
 84.33  diem increased by $1.50 before adding the inflation in paragraph 
 84.34  (d), clause (2), for the rate year beginning on July 1, 1997. 
 84.35     (l) For the purpose of applying the limit under paragraph 
 84.36  (a), a nursing facility in Hibbing licensed for 192 beds shall 
 85.1   have the prior year's allowable other operating cost per diem 
 85.2   increased by $2.67 before adding the inflation in paragraph (d), 
 85.3   clause (2), for the rate year beginning July 1, 1997. 
 85.4      Sec. 9.  Minnesota Statutes 1996, section 256B.433, is 
 85.5   amended by adding a subdivision to read: 
 85.6      Subd. 3a.  [EXEMPTION FROM REQUIREMENT FOR SEPARATE THERAPY 
 85.7   BILLING.] The provisions of subdivision 3 do not apply to 
 85.8   nursing facilities that are reimbursed according to the 
 85.9   provisions of section 256B.431 and are located in a county 
 85.10  participating in the prepaid medical assistance program. 
 85.11     Sec. 10.  Minnesota Statutes 1996, section 256B.434, 
 85.12  subdivision 3, is amended to read: 
 85.13     Subd. 3.  [DURATION AND TERMINATION OF CONTRACTS.] (a) 
 85.14  Subject to available resources, the commissioner may begin to 
 85.15  execute contracts with nursing facilities November 1, 1995. 
 85.16     (b) All contracts entered into under this section are for a 
 85.17  term of four years one year.  Either party may terminate a 
 85.18  contract effective July 1 of any year by providing written 
 85.19  notice to the other party no later than April 1 of that year at 
 85.20  any time without cause by providing 30 calendar days advance 
 85.21  written notice to the other party.  The decision to terminate a 
 85.22  contract is not appealable.  If neither party provides written 
 85.23  notice of termination by April 1, the contract is automatically 
 85.24  renewed for the next rate year the contract shall be 
 85.25  renegotiated for additional one-year terms, for up to a total of 
 85.26  four consecutive one-year terms.  The provisions of the contract 
 85.27  shall be renegotiated annually by the parties prior to the 
 85.28  expiration date of the contract.  The parties may voluntarily 
 85.29  renegotiate the terms of the contract at any time by mutual 
 85.30  agreement. 
 85.31     (c) If a nursing facility fails to comply with the terms of 
 85.32  a contract, the commissioner shall provide reasonable notice 
 85.33  regarding the breach of contract and a reasonable opportunity 
 85.34  for the facility to come into compliance.  If the facility fails 
 85.35  to come into compliance or to remain in compliance, the 
 85.36  commissioner may terminate the contract.  If a contract is 
 86.1   terminated, the contract payment remains in effect for the 
 86.2   remainder of the rate year in which the contract was terminated, 
 86.3   but in all other respects the provisions of this section do not 
 86.4   apply to that facility effective the date the contract is 
 86.5   terminated.  The contract shall contain a provision governing 
 86.6   the transition back to the cost-based reimbursement system 
 86.7   established under section 256B.431, subdivision 25, and 
 86.8   Minnesota Rules, parts 9549.0010 to 9549.0080.  A contract 
 86.9   entered into under this section may be amended by mutual 
 86.10  agreement of the parties. 
 86.11     Sec. 11.  Minnesota Statutes 1996, section 256B.434, 
 86.12  subdivision 9, is amended to read: 
 86.13     Subd. 9.  [MANAGED CARE CONTRACTS FOR OTHER SERVICES.] 
 86.14  Beginning July 1, 1995, the commissioner may contract with 
 86.15  nursing facilities that have entered into alternative payment 
 86.16  demonstration project contracts under this section to provide 
 86.17  medical assistance services other than nursing facility care to 
 86.18  residents of the facility under a prepaid, managed care payment 
 86.19  system.  For purposes of contracts entered into under this 
 86.20  subdivision, the commissioner may waive one or more of the 
 86.21  requirements for payment for ancillary services in section 
 86.22  256B.433.  Managed care contracts for other services may be 
 86.23  entered into at any time during the duration of a nursing 
 86.24  facility's alternative payment demonstration project contract, 
 86.25  and the terms of the managed care contracts need not coincide 
 86.26  with the terms of the alternative payment demonstration project 
 86.27  contract. 
 86.28     Sec. 12.  Minnesota Statutes 1996, section 256B.434, 
 86.29  subdivision 10, is amended to read: 
 86.30     Subd. 10.  [EXEMPTIONS.] (a) To the extent permitted by 
 86.31  federal law, (1) a facility that has entered into a contract 
 86.32  under this section is not required to file a cost report, as 
 86.33  defined in Minnesota Rules, part 9549.0020, subpart 13, for any 
 86.34  year after the base year that is the basis for the calculation 
 86.35  of the contract payment rate for the first rate year of the 
 86.36  alternative payment demonstration project contract; and (2) a 
 87.1   facility under contract is not subject to audits of historical 
 87.2   costs or revenues, or paybacks or retroactive adjustments based 
 87.3   on these costs or revenues, except audits, paybacks, or 
 87.4   adjustments relating to the cost report that is the basis for 
 87.5   calculation of the first rate year under the contract. 
 87.6      (b) A facility that is under contract with the commissioner 
 87.7   under this section is not subject to the moratorium on licensure 
 87.8   or certification of new nursing home beds in section 144A.071, 
 87.9   unless the project results in a net increase in bed capacity or 
 87.10  involves relocation of beds from one site to another.  Contract 
 87.11  payment rates must not be adjusted to reflect any additional 
 87.12  costs that a nursing facility incurs as a result of a 
 87.13  construction project undertaken under this paragraph.  In 
 87.14  addition, as a condition of entering into a contract under this 
 87.15  section, a nursing facility must agree that any future medical 
 87.16  assistance payments for nursing facility services will not 
 87.17  reflect any additional costs attributable to the sale of a 
 87.18  nursing facility under this section and to construction 
 87.19  undertaken under this paragraph that otherwise would not be 
 87.20  authorized under the moratorium in section 144A.073.  Nothing in 
 87.21  this section prevents a nursing facility participating in the 
 87.22  alternative payment demonstration project under this section 
 87.23  from seeking approval of an exception to the moratorium through 
 87.24  the process established in section 144A.073, and if approved the 
 87.25  facility's rates shall be adjusted to reflect the cost of the 
 87.26  project. 
 87.27     (c) Notwithstanding section 256B.48, subdivision 6, 
 87.28  paragraphs (c), (d), and (e), and pursuant to any terms and 
 87.29  conditions contained in the facility's contract, a nursing 
 87.30  facility that is under contract with the commissioner under this 
 87.31  section is in compliance with section 256B.48, subdivision 6, 
 87.32  paragraph (b), if the facility is Medicare certified. 
 87.33     (d) Notwithstanding paragraph (a), if by April 1, 1996, the 
 87.34  health care financing administration has not approved a required 
 87.35  waiver, or the health care financing administration otherwise 
 87.36  requires cost reports to be filed prior to the waiver's 
 88.1   approval, the commissioner shall require a cost report for the 
 88.2   rate year. 
 88.3      (e) A facility that is under contract with the commissioner 
 88.4   under this section shall be allowed to change therapy 
 88.5   arrangements from an unrelated vendor to a related vendor during 
 88.6   the term of the contract.  The commissioner may develop 
 88.7   reasonable requirements designed to prevent an increase in 
 88.8   therapy utilization for residents enrolled in the medical 
 88.9   assistance program. 
 88.10     Sec. 13.  Minnesota Statutes 1996, section 256I.05, is 
 88.11  amended by adding a subdivision to read: 
 88.12     Subd. 1d.  [SUPPLEMENTARY SERVICE RATES FOR CERTAIN 
 88.13  FACILITIES SERVING PERSONS WITH MENTAL ILLNESS OR CHEMICAL 
 88.14  DEPENDENCY.] Notwithstanding the provisions of subdivisions 1a 
 88.15  and 1c for the fiscal year ending June 30, 1998, a county agency 
 88.16  may negotiate a supplementary service rate in addition to the 
 88.17  board and lodging rate for facilities licensed and registered by 
 88.18  the Minnesota department of health under section 157.17 prior to 
 88.19  December 31, 1994, if the facility meets the following criteria: 
 88.20     (1) at least 75 percent of the residents have a primary 
 88.21  diagnosis of mental illness, chemical dependency, or both, and 
 88.22  have related special needs; 
 88.23     (2) the facility provides 24-hour, on-site, year-round 
 88.24  supportive services by qualified staff capable of intervention 
 88.25  in a crisis of persons with late-state inebriety or mental 
 88.26  illness who are vulnerable to abuse or neglect; 
 88.27     (3) the services at the facility include, but are not 
 88.28  limited to: 
 88.29     (i) secure central storage of medication; 
 88.30     (ii) reminders and monitoring of medication for 
 88.31  self-administration; 
 88.32     (iii) support for developing an individual medical and 
 88.33  social service plan, updating the plan, and monitoring 
 88.34  compliance with the plan; and 
 88.35     (iv) assistance with setting up meetings, appointments, and 
 88.36  transportation to access medical, chemical health, and mental 
 89.1   health service providers; 
 89.2      (4) each resident has a documented need for at least one of 
 89.3   the services provided; 
 89.4      (5) each resident has been offered an opportunity to apply 
 89.5   for admission to a licensed residential treatment program for 
 89.6   mental illness, chemical dependency, or both, have refused that 
 89.7   offer, and the offer and their refusal has been documented to 
 89.8   writing; and 
 89.9      (6) the residents are not eligible for home and 
 89.10  community-based services waivers because of their unique need 
 89.11  for community support. 
 89.12     The total supplementary service rate must not exceed $575. 
 89.13     Sec. 14.  Laws 1997, chapter 7, article 1, section 75, is 
 89.14  amended to read: 
 89.15     Sec. 75.  [REPEALER; SECTION 144A.61, SUBDIVISION 6 NOTE.] 
 89.16     Laws 1989, chapter 282, article 3, section 28, subdivision 
 89.17  6, is repealed. 
 89.18     Sec. 15.  Minnesota Statutes 1996, section 144A.071, 
 89.19  subdivision 4a, as amended by Laws 1997, chapter 105, section 1, 
 89.20  is amended to read: 
 89.21     Subd. 4a.  [EXCEPTIONS FOR REPLACEMENT BEDS.] It is in the 
 89.22  best interest of the state to ensure that nursing homes and 
 89.23  boarding care homes continue to meet the physical plant 
 89.24  licensing and certification requirements by permitting certain 
 89.25  construction projects.  Facilities should be maintained in 
 89.26  condition to satisfy the physical and emotional needs of 
 89.27  residents while allowing the state to maintain control over 
 89.28  nursing home expenditure growth. 
 89.29     The commissioner of health in coordination with the 
 89.30  commissioner of human services, may approve the renovation, 
 89.31  replacement, upgrading, or relocation of a nursing home or 
 89.32  boarding care home, under the following conditions: 
 89.33     (a) to license or certify beds in a new facility 
 89.34  constructed to replace a facility or to make repairs in an 
 89.35  existing facility that was destroyed or damaged after June 30, 
 89.36  1987, by fire, lightning, or other hazard provided:  
 90.1      (i) destruction was not caused by the intentional act of or 
 90.2   at the direction of a controlling person of the facility; 
 90.3      (ii) at the time the facility was destroyed or damaged the 
 90.4   controlling persons of the facility maintained insurance 
 90.5   coverage for the type of hazard that occurred in an amount that 
 90.6   a reasonable person would conclude was adequate; 
 90.7      (iii) the net proceeds from an insurance settlement for the 
 90.8   damages caused by the hazard are applied to the cost of the new 
 90.9   facility or repairs; 
 90.10     (iv) the new facility is constructed on the same site as 
 90.11  the destroyed facility or on another site subject to the 
 90.12  restrictions in section 144A.073, subdivision 5; 
 90.13     (v) the number of licensed and certified beds in the new 
 90.14  facility does not exceed the number of licensed and certified 
 90.15  beds in the destroyed facility; and 
 90.16     (vi) the commissioner determines that the replacement beds 
 90.17  are needed to prevent an inadequate supply of beds. 
 90.18  Project construction costs incurred for repairs authorized under 
 90.19  this clause shall not be considered in the dollar threshold 
 90.20  amount defined in subdivision 2; 
 90.21     (b) to license or certify beds that are moved from one 
 90.22  location to another within a nursing home facility, provided the 
 90.23  total costs of remodeling performed in conjunction with the 
 90.24  relocation of beds does not exceed 25 percent of the appraised 
 90.25  value of the facility or $500,000, whichever is less $750,000; 
 90.26     (c) to license or certify beds in a project recommended for 
 90.27  approval under section 144A.073; 
 90.28     (d) to license or certify beds that are moved from an 
 90.29  existing state nursing home to a different state facility, 
 90.30  provided there is no net increase in the number of state nursing 
 90.31  home beds; 
 90.32     (e) to certify and license as nursing home beds boarding 
 90.33  care beds in a certified boarding care facility if the beds meet 
 90.34  the standards for nursing home licensure, or in a facility that 
 90.35  was granted an exception to the moratorium under section 
 90.36  144A.073, and if the cost of any remodeling of the facility does 
 91.1   not exceed 25 percent of the appraised value of the facility or 
 91.2   $500,000, whichever is less $750,000.  If boarding care beds are 
 91.3   licensed as nursing home beds, the number of boarding care beds 
 91.4   in the facility must not increase beyond the number remaining at 
 91.5   the time of the upgrade in licensure.  The provisions contained 
 91.6   in section 144A.073 regarding the upgrading of the facilities do 
 91.7   not apply to facilities that satisfy these requirements; 
 91.8      (f) to license and certify up to 40 beds transferred from 
 91.9   an existing facility owned and operated by the Amherst H. Wilder 
 91.10  Foundation in the city of St. Paul to a new unit at the same 
 91.11  location as the existing facility that will serve persons with 
 91.12  Alzheimer's disease and other related disorders.  The transfer 
 91.13  of beds may occur gradually or in stages, provided the total 
 91.14  number of beds transferred does not exceed 40.  At the time of 
 91.15  licensure and certification of a bed or beds in the new unit, 
 91.16  the commissioner of health shall delicense and decertify the 
 91.17  same number of beds in the existing facility.  As a condition of 
 91.18  receiving a license or certification under this clause, the 
 91.19  facility must make a written commitment to the commissioner of 
 91.20  human services that it will not seek to receive an increase in 
 91.21  its property-related payment rate as a result of the transfers 
 91.22  allowed under this paragraph; 
 91.23     (g) to license and certify nursing home beds to replace 
 91.24  currently licensed and certified boarding care beds which may be 
 91.25  located either in a remodeled or renovated boarding care or 
 91.26  nursing home facility or in a remodeled, renovated, newly 
 91.27  constructed, or replacement nursing home facility within the 
 91.28  identifiable complex of health care facilities in which the 
 91.29  currently licensed boarding care beds are presently located, 
 91.30  provided that the number of boarding care beds in the facility 
 91.31  or complex are decreased by the number to be licensed as nursing 
 91.32  home beds and further provided that, if the total costs of new 
 91.33  construction, replacement, remodeling, or renovation exceed ten 
 91.34  percent of the appraised value of the facility or $200,000, 
 91.35  whichever is less, the facility makes a written commitment to 
 91.36  the commissioner of human services that it will not seek to 
 92.1   receive an increase in its property-related payment rate by 
 92.2   reason of the new construction, replacement, remodeling, or 
 92.3   renovation.  The provisions contained in section 144A.073 
 92.4   regarding the upgrading of facilities do not apply to facilities 
 92.5   that satisfy these requirements; 
 92.6      (h) to license as a nursing home and certify as a nursing 
 92.7   facility a facility that is licensed as a boarding care facility 
 92.8   but not certified under the medical assistance program, but only 
 92.9   if the commissioner of human services certifies to the 
 92.10  commissioner of health that licensing the facility as a nursing 
 92.11  home and certifying the facility as a nursing facility will 
 92.12  result in a net annual savings to the state general fund of 
 92.13  $200,000 or more; 
 92.14     (i) to certify, after September 30, 1992, and prior to July 
 92.15  1, 1993, existing nursing home beds in a facility that was 
 92.16  licensed and in operation prior to January 1, 1992; 
 92.17     (j) to license and certify new nursing home beds to replace 
 92.18  beds in a facility condemned as part of an economic 
 92.19  redevelopment plan in a city of the first class, provided the 
 92.20  new facility is located within one mile of the site of the old 
 92.21  facility.  Operating and property costs for the new facility 
 92.22  must be determined and allowed under existing reimbursement 
 92.23  rules; 
 92.24     (k) to license and certify up to 20 new nursing home beds 
 92.25  in a community-operated hospital and attached convalescent and 
 92.26  nursing care facility with 40 beds on April 21, 1991, that 
 92.27  suspended operation of the hospital in April 1986.  The 
 92.28  commissioner of human services shall provide the facility with 
 92.29  the same per diem property-related payment rate for each 
 92.30  additional licensed and certified bed as it will receive for its 
 92.31  existing 40 beds; 
 92.32     (l) to license or certify beds in renovation, replacement, 
 92.33  or upgrading projects as defined in section 144A.073, 
 92.34  subdivision 1, so long as the cumulative total costs of the 
 92.35  facility's remodeling projects do not exceed 25 percent of the 
 92.36  appraised value of the facility or $500,000, whichever is less 
 93.1   $750,000; 
 93.2      (m) to license and certify beds that are moved from one 
 93.3   location to another for the purposes of converting up to five 
 93.4   four-bed wards to single or double occupancy rooms in a nursing 
 93.5   home that, as of January 1, 1993, was county-owned and had a 
 93.6   licensed capacity of 115 beds; 
 93.7      (n) to allow a facility that on April 16, 1993, was a 
 93.8   106-bed licensed and certified nursing facility located in 
 93.9   Minneapolis to layaway all of its licensed and certified nursing 
 93.10  home beds.  These beds may be relicensed and recertified in a 
 93.11  newly-constructed teaching nursing home facility affiliated with 
 93.12  a teaching hospital upon approval by the legislature.  The 
 93.13  proposal must be developed in consultation with the interagency 
 93.14  committee on long-term care planning.  The beds on layaway 
 93.15  status shall have the same status as voluntarily delicensed and 
 93.16  decertified beds, except that beds on layaway status remain 
 93.17  subject to the surcharge in section 256.9657.  This layaway 
 93.18  provision expires July 1, 1997 1998; 
 93.19     (o) to allow a project which will be completed in 
 93.20  conjunction with an approved moratorium exception project for a 
 93.21  nursing home in southern Cass county and which is directly 
 93.22  related to that portion of the facility that must be repaired, 
 93.23  renovated, or replaced, to correct an emergency plumbing problem 
 93.24  for which a state correction order has been issued and which 
 93.25  must be corrected by August 31, 1993; 
 93.26     (p) to allow a facility that on April 16, 1993, was a 
 93.27  368-bed licensed and certified nursing facility located in 
 93.28  Minneapolis to layaway, upon 30 days prior written notice to the 
 93.29  commissioner, up to 30 of the facility's licensed and certified 
 93.30  beds by converting three-bed wards to single or double 
 93.31  occupancy.  Beds on layaway status shall have the same status as 
 93.32  voluntarily delicensed and decertified beds except that beds on 
 93.33  layaway status remain subject to the surcharge in section 
 93.34  256.9657, remain subject to the license application and renewal 
 93.35  fees under section 144A.07 and shall be subject to a $100 per 
 93.36  bed reactivation fee.  In addition, at any time within three 
 94.1   years of the effective date of the layaway, the beds on layaway 
 94.2   status may be: 
 94.3      (1) relicensed and recertified upon relocation and 
 94.4   reactivation of some or all of the beds to an existing licensed 
 94.5   and certified facility or facilities located in Pine River, 
 94.6   Brainerd, or International Falls; provided that the total 
 94.7   project construction costs related to the relocation of beds 
 94.8   from layaway status for any facility receiving relocated beds 
 94.9   may not exceed the dollar threshold provided in subdivision 2 
 94.10  unless the construction project has been approved through the 
 94.11  moratorium exception process under section 144A.073; 
 94.12     (2) relicensed and recertified, upon reactivation of some 
 94.13  or all of the beds within the facility which placed the beds in 
 94.14  layaway status, if the commissioner has determined a need for 
 94.15  the reactivation of the beds on layaway status. 
 94.16     The property-related payment rate of a facility placing 
 94.17  beds on layaway status must be adjusted by the incremental 
 94.18  change in its rental per diem after recalculating the rental per 
 94.19  diem as provided in section 256B.431, subdivision 3a, paragraph 
 94.20  (d).  The property-related payment rate for a facility 
 94.21  relicensing and recertifying beds from layaway status must be 
 94.22  adjusted by the incremental change in its rental per diem after 
 94.23  recalculating its rental per diem using the number of beds after 
 94.24  the relicensing to establish the facility's capacity day 
 94.25  divisor, which shall be effective the first day of the month 
 94.26  following the month in which the relicensing and recertification 
 94.27  became effective.  Any beds remaining on layaway status more 
 94.28  than three years after the date the layaway status became 
 94.29  effective must be removed from layaway status and immediately 
 94.30  delicensed and decertified; 
 94.31     (q) to license and certify beds in a renovation and 
 94.32  remodeling project to convert 13 three-bed wards into 13 two-bed 
 94.33  rooms and 13 single-bed rooms, expand space, and add 
 94.34  improvements in a nursing home that, as of January 1, 1994, met 
 94.35  the following conditions:  the nursing home was located in 
 94.36  Ramsey county; was not owned by a hospital corporation; had a 
 95.1   licensed capacity of 64 beds; and had been ranked among the top 
 95.2   15 applicants by the 1993 moratorium exceptions advisory review 
 95.3   panel.  The total project construction cost estimate for this 
 95.4   project must not exceed the cost estimate submitted in 
 95.5   connection with the 1993 moratorium exception process; 
 95.6      (r) to license and certify beds in a renovation and 
 95.7   remodeling project to convert 12 four-bed wards into 24 two-bed 
 95.8   rooms, expand space, and add improvements in a nursing home 
 95.9   that, as of January 1, 1994, met the following conditions:  the 
 95.10  nursing home was located in Ramsey county; had a licensed 
 95.11  capacity of 154 beds; and had been ranked among the top 15 
 95.12  applicants by the 1993 moratorium exceptions advisory review 
 95.13  panel.  The total project construction cost estimate for this 
 95.14  project must not exceed the cost estimate submitted in 
 95.15  connection with the 1993 moratorium exception process; 
 95.16     (s) (r) to license and certify up to 117 beds that are 
 95.17  relocated from a licensed and certified 138-bed nursing facility 
 95.18  located in St. Paul to a hospital with 130 licensed hospital 
 95.19  beds located in South St. Paul, provided that the nursing 
 95.20  facility and hospital are owned by the same or a related 
 95.21  organization and that prior to the date the relocation is 
 95.22  completed the hospital ceases operation of its inpatient 
 95.23  hospital services at that hospital.  After relocation, the 
 95.24  nursing facility's status under section 256B.431, subdivision 
 95.25  2j, shall be the same as it was prior to relocation.  The 
 95.26  nursing facility's property-related payment rate resulting from 
 95.27  the project authorized in this paragraph shall become effective 
 95.28  no earlier than April 1, 1996.  For purposes of calculating the 
 95.29  incremental change in the facility's rental per diem resulting 
 95.30  from this project, the allowable appraised value of the nursing 
 95.31  facility portion of the existing health care facility physical 
 95.32  plant prior to the renovation and relocation may not exceed 
 95.33  $2,490,000; 
 95.34     (t) (s) to license and certify two beds in a facility to 
 95.35  replace beds that were voluntarily delicensed and decertified on 
 95.36  June 28, 1991; 
 96.1      (u) (t) to allow 16 licensed and certified beds located on 
 96.2   July 1, 1994, in a 142-bed nursing home and 21-bed boarding care 
 96.3   home facility in Minneapolis, notwithstanding the licensure and 
 96.4   certification after July 1, 1995, of the Minneapolis facility as 
 96.5   a 147-bed nursing home facility after completion of a 
 96.6   construction project approved in 1993 under section 144A.073, to 
 96.7   be laid away upon 30 days' prior written notice to the 
 96.8   commissioner.  Beds on layaway status shall have the same status 
 96.9   as voluntarily delicensed or decertified beds except that they 
 96.10  shall remain subject to the surcharge in section 256.9657.  The 
 96.11  16 beds on layaway status may be relicensed as nursing home beds 
 96.12  and recertified at any time within five years of the effective 
 96.13  date of the layaway upon relocation of some or all of the beds 
 96.14  to a licensed and certified facility located in Watertown, 
 96.15  provided that the total project construction costs related to 
 96.16  the relocation of beds from layaway status for the Watertown 
 96.17  facility may not exceed the dollar threshold provided in 
 96.18  subdivision 2 unless the construction project has been approved 
 96.19  through the moratorium exception process under section 144A.073. 
 96.20     The property-related payment rate of the facility placing 
 96.21  beds on layaway status must be adjusted by the incremental 
 96.22  change in its rental per diem after recalculating the rental per 
 96.23  diem as provided in section 256B.431, subdivision 3a, paragraph 
 96.24  (d).  The property-related payment rate for the facility 
 96.25  relicensing and recertifying beds from layaway status must be 
 96.26  adjusted by the incremental change in its rental per diem after 
 96.27  recalculating its rental per diem using the number of beds after 
 96.28  the relicensing to establish the facility's capacity day 
 96.29  divisor, which shall be effective the first day of the month 
 96.30  following the month in which the relicensing and recertification 
 96.31  became effective.  Any beds remaining on layaway status more 
 96.32  than five years after the date the layaway status became 
 96.33  effective must be removed from layaway status and immediately 
 96.34  delicensed and decertified; 
 96.35     (v) (u) to license and certify beds that are moved within 
 96.36  an existing area of a facility or to a newly-constructed 
 97.1   addition which is built for the purpose of eliminating three- 
 97.2   and four-bed rooms and adding space for dining, lounge areas, 
 97.3   bathing rooms, and ancillary service areas in a nursing home 
 97.4   that, as of January 1, 1995, was located in Fridley and had a 
 97.5   licensed capacity of 129 beds; 
 97.6      (w) (v) to relocate 36 beds in Crow Wing county and four 
 97.7   beds from Hennepin county to a 160-bed facility in Crow Wing 
 97.8   county, provided all the affected beds are under common 
 97.9   ownership; 
 97.10     (x) (w) to license and certify a total replacement project 
 97.11  of up to 49 beds located in Norman county that are relocated 
 97.12  from a nursing home destroyed by flood and whose residents were 
 97.13  relocated to other nursing homes.  The operating cost payment 
 97.14  rates for the new nursing facility shall be determined based on 
 97.15  the interim and settle-up payment provisions of Minnesota Rules, 
 97.16  part 9549.0057, and the reimbursement provisions of section 
 97.17  256B.431, except that subdivision 25 26, paragraphs (a) and (b), 
 97.18  clause (3), and (d), shall not apply until the second rate year 
 97.19  after the settle-up cost report is filed.  Property-related 
 97.20  reimbursement rates shall be determined under section 256B.431, 
 97.21  taking into account any federal or state flood-related loans or 
 97.22  grants provided to the facility; or 
 97.23     (y) (x) to license and certify a total replacement project 
 97.24  of up to 129 beds located in Polk county that are relocated from 
 97.25  a nursing home destroyed by flood and whose residents were 
 97.26  relocated to other nursing homes.  The operating cost payment 
 97.27  rates for the new nursing facility shall be determined based on 
 97.28  the interim and settle-up payment provisions of Minnesota Rules, 
 97.29  part 9549.0057, and the reimbursement provisions of section 
 97.30  256B.431, except that subdivision 25 26, paragraphs (a) and (b), 
 97.31  clause (3), and (d), shall not apply until the second rate year 
 97.32  after the settle-up cost report is filed.  Property-related 
 97.33  reimbursement rates shall be determined under section 256B.431, 
 97.34  taking into account any federal or state flood-related loans or 
 97.35  grants provided to the facility; or 
 97.36     (y) to license and certify beds in a renovation and 
 98.1   remodeling project to convert 13 three-bed wards into 13 two-bed 
 98.2   rooms and 13 single-bed rooms, expand space, and add 
 98.3   improvements in a nursing home that, as of January 1, 1994, met 
 98.4   the following conditions:  the nursing home was located in 
 98.5   Ramsey county, was not owned by a hospital corporation, had a 
 98.6   licensed capacity of 64 beds, and had been ranked among the top 
 98.7   15 applicants by the 1993 moratorium exceptions advisory review 
 98.8   panel.  The total project construction cost estimate for this 
 98.9   project must not exceed the cost estimate submitted in 
 98.10  connection with the 1993 moratorium exception process. 
 98.11     Sec. 16.  Laws 1997, chapter 105, section 7, is amended to 
 98.12  read: 
 98.13     Sec. 7.  [FLOOD-RELATED DISASTER APPROPRIATION.] 
 98.14     (a) $20,000,000 is appropriated from the budget reserve in 
 98.15  the general fund to the commissioner of public safety for:  (1) 
 98.16  the state costs associated with the total replacement projects 
 98.17  in Norman and Polk counties specified in section 1; and (2) 
 98.18  reimbursements to counties, cities, and towns and to individuals 
 98.19  or families for individual/family grants which may be used for 
 98.20  costs related to flooding in 1997.  This appropriation is added 
 98.21  to the $3,000,000 appropriation in Laws 1997, chapter 12, for 
 98.22  flood-related purposes. 
 98.23     (b) Of this amount, the commissioner of public safety shall 
 98.24  transfer to the commissioner of human services the amount needed 
 98.25  to pay the state costs associated with the projects in Norman 
 98.26  and Polk counties specified in section 1, not to exceed $492,700.
 98.27     Sec. 17.  [STUDY OF NURSING FACILITY CONVERSION.] 
 98.28     The commissioner, in consultation with the commissioner of 
 98.29  health, shall report to the legislature by January 15, 1998, 
 98.30  with recommendations for the establishment of a project to 
 98.31  reduce the number of nursing facilities and the number of 
 98.32  nursing facility beds in Minnesota.  The report shall include:  
 98.33  (1) goals for the number of facility and bed reductions; (2) 
 98.34  strategies for voluntary and involuntary bed closures; and (3) 
 98.35  criteria for selecting nursing facilities as candidates for 
 98.36  closure.  In developing the recommendations, the commissioner 
 99.1   shall consult with an advisory task force that includes nursing 
 99.2   industry representatives, nursing facility resident advocates, 
 99.3   county representatives, and other interested parties. 
 99.4      Sec. 18.  [RATE CLARIFICATION.] 
 99.5      For the rate years beginning October 1, 1997, and October 
 99.6   1, 1998, the commissioner of human services shall exempt 
 99.7   intermediate care facilities for persons with mental retardation 
 99.8   (ICF/MR) from reductions to the payment rates under Minnesota 
 99.9   Statutes, section 256B.501, subdivision 5b, paragraph (d), 
 99.10  clause (6), if the facility: 
 99.11     (1) has had a settle-up payment rate established in the 
 99.12  reporting year preceding the rate year for the one-time rate 
 99.13  adjustment; 
 99.14     (2) is a newly established facility; 
 99.15     (3) is an A to B conversion that has been converted under 
 99.16  Minnesota Statutes, section 252.292, since rate year 1990; 
 99.17     (4) has a payment rate subject to a community conversion 
 99.18  project under Minnesota Statutes, section 252.292; 
 99.19     (5) has a payment rate established under Minnesota 
 99.20  Statutes, section 245A.12 or 245A.13; or 
 99.21     (6) is a facility created by the relocation of more than 25 
 99.22  percent of the capacity of a related facility during the 
 99.23  reporting year. 
 99.24     Sec. 19.  [ICF/MR REIMBURSEMENT OCTOBER 1, 1997, TO OCTOBER 
 99.25  1, 1999.] 
 99.26     (a) Notwithstanding any contrary provision in Minnesota 
 99.27  Statutes, section 256B.501, for the rate years beginning October 
 99.28  1, 1997, and October 1, 1998, the commissioner of human services 
 99.29  shall, for purposes of the spend-up limit, array facilities 
 99.30  within each grouping established under Minnesota Statutes, 
 99.31  section 256B.501, subdivision 5b, paragraph (d), clause (4), by 
 99.32  each facility's cost per resident day.  A facility's cost per 
 99.33  resident day shall be determined by dividing its allowable 
 99.34  historical general operating cost for the reporting year by the 
 99.35  facility's resident days for the reporting year.  Facilities 
 99.36  with a cost per resident day at or above the median shall be 
100.1   limited to the lesser of: 
100.2      (1) the current reporting year's cost per resident day; or 
100.3      (2) the prior report year's cost per resident day plus the 
100.4   inflation factor established under Minnesota Statutes, section 
100.5   256B.501, subdivision 3c, clause (2), increased by three 
100.6   percentage points. 
100.7   In no case shall the amount of this reduction exceed:  three 
100.8   percent for a facility with a licensed capacity greater than 16 
100.9   beds; two percent for a facility with a licensed capacity of 
100.10  nine to 16 beds; and one percent for a facility with a licensed 
100.11  capacity of eight or fewer beds. 
100.12     (b) The commissioner shall not apply the limits established 
100.13  under Minnesota Statutes, section 256B.501, subdivision 5b, 
100.14  paragraph (d), clause (8), for the rate years beginning October 
100.15  1, 1997, and October 1, 1998. 
100.16     Sec. 20.  [EFFECTIVE DATE.] 
100.17     Section 16 is effective the day following final enactment. 
100.18                             ARTICLE 4 
100.19                            HEALTH CARE 
100.20     Section 1.  Minnesota Statutes 1996, section 62D.04, 
100.21  subdivision 5, is amended to read: 
100.22     Subd. 5.  [PARTICIPATION; GOVERNMENT PROGRAMS.] Health 
100.23  maintenance organizations shall, as a condition of receiving and 
100.24  retaining a certificate of authority, participate in the medical 
100.25  assistance, general assistance medical care, and MinnesotaCare 
100.26  programs.  A health maintenance organization is required to 
100.27  submit proposals in good faith that meet the requirements of the 
100.28  request for proposal provided that the requirements can be 
100.29  reasonably met by a health maintenance organization to serve 
100.30  individuals eligible for the above programs in a geographic 
100.31  region of the state if, at the time of publication of a request 
100.32  for proposal, the percentage of recipients in the public 
100.33  programs in the region who are enrolled in the health 
100.34  maintenance organization is less than the health maintenance 
100.35  organization's percentage of the total number of individuals 
100.36  enrolled in health maintenance organizations in the same 
101.1   region.  Geographic regions shall be defined by the commissioner 
101.2   of human services in the request for proposals. 
101.3      Sec. 2.  Minnesota Statutes 1996, section 62N.25, 
101.4   subdivision 2, is amended to read: 
101.5      Subd. 2.  [LICENSURE REQUIREMENTS GENERALLY.] To be 
101.6   licensed and to operate as a community integrated service 
101.7   network, an applicant must satisfy the requirements of chapter 
101.8   62D, and all other legal requirements that apply to entities 
101.9   licensed under chapter 62D, except as exempted or modified in 
101.10  this section.  Community networks must, as a condition of 
101.11  licensure, comply with rules adopted under section 256B.0644 
101.12  that apply to entities governed by chapter 62D section 62D.04, 
101.13  subdivision 5.  A community integrated service network that 
101.14  phases in its net worth over a three-year period is not required 
101.15  to respond to requests for proposals under section 256B.0644 
101.16  62D.04, subdivision 5, during the first 12 months of licensure.  
101.17  These community networks are not prohibited from responding to 
101.18  requests for proposals, however, if they choose to do so during 
101.19  that time period.  After the initial 12 months of licensure, 
101.20  these community networks are required to respond to the requests 
101.21  for proposals as required under section 256B.0644 62D.04, 
101.22  subdivision 5.  
101.23     Sec. 3.  Minnesota Statutes 1996, section 144.0721, 
101.24  subdivision 3, is amended to read: 
101.25     Subd. 3.  [LEVEL OF CARE CRITERIA; MODIFICATIONS.] The 
101.26  commissioner shall seek appropriate federal waivers to implement 
101.27  this subdivision.  Notwithstanding any laws or rules to the 
101.28  contrary, effective July 1, 1996 1998, Minnesota's level of care 
101.29  criteria for admission of any person to a nursing facility 
101.30  licensed under chapter 144A, or a boarding care home licensed 
101.31  under sections 144.50 to 144.56, are modified as follows: 
101.32     (1) the resident reimbursement classifications and 
101.33  terminology established by rule under sections 256B.41 to 
101.34  256B.48 are the basis for applying the level of care criteria 
101.35  changes; 
101.36     (2) an applicant to a certified nursing facility or 
102.1   certified boarding care home who is dependent in zero, one, or 
102.2   two case mix activities of daily living, is classified as a case 
102.3   mix A, and is independent in orientation and self-preservation, 
102.4   is reclassified as a high function class A person and is not 
102.5   eligible for admission to Minnesota certified nursing facilities 
102.6   or certified boarding care homes; 
102.7      (3) applicants in clause (2) who are dependent in one or 
102.8   two case mix activities of daily living, who are eligible for 
102.9   assistance as determined under sections 256B.055 and 256B.056 or 
102.10  meet eligibility criteria for section 256B.0913 are eligible for 
102.11  a service allowance under section 256B.0913, subdivision 15, and 
102.12  are not eligible for services under sections 256B.0913, 
102.13  subdivisions 1 to 14, and 256B.0915.  Applicants in clause (2) 
102.14  shall have the option of receiving personal care assistant and 
102.15  home health aide services under section 256B.0625, if otherwise 
102.16  eligible, or of receiving the service allowance option, but not 
102.17  both.  Applicants in clause (2) shall have the option of 
102.18  residing in community settings under sections 256I.01 to 
102.19  256I.06, if otherwise eligible, or receiving the services 
102.20  allowance option under section 256B.0913, subdivision 15, but 
102.21  not both; 
102.22     (4) residents of a certified nursing facility or certified 
102.23  boarding care home who were admitted before July 1, 1996 1998, 
102.24  or individuals receiving services under section 256B.0913, 
102.25  subdivisions 1 to 14, or 256B.0915, before July 1, 1996 1998, 
102.26  are not subject to the new level of care criteria unless the 
102.27  resident is discharged home or to another service setting other 
102.28  than a certified nursing facility or certified boarding care 
102.29  home and applies for admission to a certified nursing facility 
102.30  or certified boarding care home after June 30, 1996 1998; 
102.31     (5) the local screening teams under section 256B.0911 shall 
102.32  make preliminary determinations concerning may determine the 
102.33  existence of extraordinary circumstances which render 
102.34  nonadmission to a certified nursing or certified boarding care 
102.35  home a serious threat to the health and safety of applicants in 
102.36  clause (2) and may authorize an admission for a short-term stay 
103.1   at to a certified nursing facility or certified boarding care 
103.2   home in accordance with a treatment and discharge plan for up to 
103.3   30 days per year; and 
103.4      (6) an individual deemed ineligible for admission to 
103.5   Minnesota certified nursing facilities is entitled to an appeal 
103.6   under section 256.045, subdivision 3. 
103.7      If the commissioner determines upon appeal that an 
103.8   applicant in clause (2) presents extraordinary circumstances 
103.9   including but not limited to the absence or inaccessibility of 
103.10  suitable alternatives, contravening family circumstances, and or 
103.11  protective service issues, the applicant may be eligible for 
103.12  admission to Minnesota certified nursing facilities or certified 
103.13  boarding care homes. 
103.14     Sec. 4.  Minnesota Statutes 1996, section 254A.17, 
103.15  subdivision 3, is amended to read: 
103.16     Subd. 3.  [STATEWIDE DETOXIFICATION TRANSPORTATION 
103.17  PROGRAM.] The commissioner shall provide grants to counties, 
103.18  Indian reservations, other nonprofit agencies, or local 
103.19  detoxification programs for provision of transportation of 
103.20  intoxicated individuals to detoxification programs, to open 
103.21  shelters, and to secure shelters as defined in section 254A.085 
103.22  and, shelters serving intoxicated persons, including long-term 
103.23  supportive housing facilities for chronic inebriates, and 
103.24  hospital emergency rooms.  In state fiscal years 1994, 1995, and 
103.25  1996, funds shall be allocated to counties in proportion to each 
103.26  county's allocation in fiscal year 1993.  In subsequent fiscal 
103.27  years, funds shall be allocated among counties annually in 
103.28  proportion to each county's average number of detoxification 
103.29  admissions for the prior two years, except that no county shall 
103.30  receive less than $400.  Unless a county has approved a grant of 
103.31  funds under this section, the commissioner shall make quarterly 
103.32  payments of detoxification funds to a county only after 
103.33  receiving an invoice describing the number of persons 
103.34  transported and the cost of transportation services for the 
103.35  previous quarter.  The commissioner shall make an annual payment 
103.36  to counties for provision of transportation under this section.  
104.1   If appropriations are not sufficient to pay the allowed maximum 
104.2   per trip, the commissioner shall reduce the maximum payment per 
104.3   trip until payments do not exceed the appropriation.  A county 
104.4   must make a good faith effort to provide the transportation 
104.5   service through the most cost-effective community-based agencies 
104.6   or organizations eligible to provide the service.  The program 
104.7   administrator and all staff of the program must report to the 
104.8   office of the ombudsman for mental health and mental retardation 
104.9   within 24 hours of its occurrence, any serious injury, as 
104.10  defined in section 245.91, subdivision 6, or the death of a 
104.11  person admitted to the shelter.  The ombudsman shall acknowledge 
104.12  in writing the receipt of all reports made to the ombudsman's 
104.13  office under this section.  Acknowledgment must be mailed to the 
104.14  facility and to the county social service agency within five 
104.15  working days of the day the report was made.  In addition, the 
104.16  program administrator and staff of the program must comply with 
104.17  all of the requirements of section 626.557, the vulnerable 
104.18  adults act. 
104.19     Sec. 5.  Minnesota Statutes 1996, section 254B.01, 
104.20  subdivision 3, is amended to read: 
104.21     Subd. 3.  [CHEMICAL DEPENDENCY SERVICES.] "Chemical 
104.22  dependency services" means a planned program of care for the 
104.23  treatment of chemical dependency or chemical abuse to minimize 
104.24  or prevent further chemical abuse by the person.  Diagnostic, 
104.25  evaluation, prevention, referral, detoxification, and aftercare 
104.26  services that are not part of a program of care licensable as a 
104.27  residential or nonresidential chemical dependency treatment 
104.28  program are not chemical dependency services for purposes of 
104.29  this section.  For pregnant and postpartum women, chemical 
104.30  dependency services include halfway house services, after-care 
104.31  services, psychological services, and case management. 
104.32     Sec. 6.  Minnesota Statutes 1996, section 254B.02, 
104.33  subdivision 1, is amended to read: 
104.34     Subdivision 1.  [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 
104.35  The chemical dependency funds appropriated for allocation shall 
104.36  be placed in a special revenue account.  For the fiscal year 
105.1   beginning July 1, 1987, funds shall be transferred to operate 
105.2   the vendor payment, invoice processing, and collections system 
105.3   for one year.  The commissioner shall annually transfer funds 
105.4   from the chemical dependency fund to pay for operation of the 
105.5   drug and alcohol abuse normative evaluation system and to pay 
105.6   for all costs incurred by adding two positions for licensing of 
105.7   chemical dependency treatment and rehabilitation programs 
105.8   located in hospitals for which funds are not otherwise 
105.9   appropriated.  For each year of the biennium ending June 30, 
105.10  1999, the commissioner shall allocate funds to the American 
105.11  Indian chemical dependency tribal account for treatment of 
105.12  American Indians by eligible vendors under section 254B.05, 
105.13  equal to the amount allocated in fiscal year 1997.  The 
105.14  commissioner shall annually divide the money available in the 
105.15  chemical dependency fund that is not held in reserve by counties 
105.16  from a previous allocation, or allocated to the American Indian 
105.17  chemical dependency tribal account.  Twelve Six percent of the 
105.18  remaining money must be reserved for the nonreservation American 
105.19  Indian chemical dependency allocation for treatment of American 
105.20  Indians by eligible vendors under section 254B.05, subdivision 
105.21  1.  The remainder of the money must be allocated among the 
105.22  counties according to the following formula, using state 
105.23  demographer data and other data sources determined by the 
105.24  commissioner: 
105.25     (a) For purposes of this formula, American Indians and 
105.26  children under age 14 are subtracted from the population of each 
105.27  county to determine the restricted population. 
105.28     (b) The amount of chemical dependency fund expenditures for 
105.29  entitled persons for services not covered by prepaid plans 
105.30  governed by section 256B.69 in the previous year is divided by 
105.31  the amount of chemical dependency fund expenditures for entitled 
105.32  persons for all services to determine the proportion of exempt 
105.33  service expenditures for each county. 
105.34     (c) The prepaid plan months of eligibility is multiplied by 
105.35  the proportion of exempt service expenditures to determine the 
105.36  adjusted prepaid plan months of eligibility for each county. 
106.1      (d) The adjusted prepaid plan months of eligibility is 
106.2   added to the number of restricted population fee for service 
106.3   months of eligibility for aid to families with dependent 
106.4   children, general assistance, and medical assistance and divided 
106.5   by the county restricted population to determine county per 
106.6   capita months of covered service eligibility. 
106.7      (e) The number of adjusted prepaid plan months of 
106.8   eligibility for the state is added to the number of fee for 
106.9   service months of eligibility for aid to families with dependent 
106.10  children, general assistance, and medical assistance for the 
106.11  state restricted population and divided by the state restricted 
106.12  population to determine state per capita months of covered 
106.13  service eligibility. 
106.14     (f) The county per capita months of covered service 
106.15  eligibility is divided by the state per capita months of covered 
106.16  service eligibility to determine the county welfare caseload 
106.17  factor. 
106.18     (g) The median married couple income for the most recent 
106.19  three-year period available for the state is divided by the 
106.20  median married couple income for the same period for each county 
106.21  to determine the income factor for each county. 
106.22     (h) The county restricted population is multiplied by the 
106.23  sum of the county welfare caseload factor and the county income 
106.24  factor to determine the adjusted population. 
106.25     (i) $15,000 shall be allocated to each county.  
106.26     (j) The remaining funds shall be allocated proportional to 
106.27  the county adjusted population. 
106.28     Sec. 7.  Minnesota Statutes 1996, section 254B.04, 
106.29  subdivision 1, is amended to read: 
106.30     Subdivision 1.  [ELIGIBILITY.] (a) Persons eligible for 
106.31  benefits under Code of Federal Regulations, title 25, part 20, 
106.32  persons eligible for medical assistance benefits under sections 
106.33  256B.055, 256B.056, and 256B.057, subdivisions 1, 2, 5, and 6, 
106.34  or who meet the income standards of section 256B.056, 
106.35  subdivision 4, and persons eligible for general assistance 
106.36  medical care under section 256D.03, subdivision 3, are entitled 
107.1   to chemical dependency fund services.  State money appropriated 
107.2   for this paragraph must be placed in a separate account 
107.3   established for this purpose. 
107.4      (b) A person not entitled to services under paragraph (a), 
107.5   but with family income that is less than 60 percent of the state 
107.6   median income for a family of like size and composition, shall 
107.7   be eligible to receive chemical dependency fund services within 
107.8   the limit of funds available after persons entitled to services 
107.9   under paragraph (a) have been served.  A county may spend money 
107.10  from its own sources to serve persons under this paragraph.  
107.11  State money appropriated for this paragraph must be placed in a 
107.12  separate account established for this purpose. 
107.13     (c) Persons whose income is between 60 percent and 115 
107.14  percent of the state median income shall be eligible for 
107.15  chemical dependency services on a sliding fee basis, within the 
107.16  limit of funds available, after persons entitled to services 
107.17  under paragraph (a) and persons eligible for services under 
107.18  paragraph (b) have been served.  Persons eligible under this 
107.19  paragraph must contribute to the cost of services according to 
107.20  the sliding fee scale established under subdivision 3.  A county 
107.21  may spend money from its own sources to provide services to 
107.22  persons under this paragraph.  State money appropriated for this 
107.23  paragraph must be placed in a separate account established for 
107.24  this purpose. 
107.25     (d) Notwithstanding the provisions of paragraphs (b) and 
107.26  (c), state funds appropriated to serve persons who are not 
107.27  entitled under the provisions of paragraph (a), shall be 
107.28  expended for chemical dependency treatment services for 
107.29  nonentitled but eligible persons who have children in their 
107.30  household, are pregnant, or are younger than 18 years old.  
107.31  These persons may have household incomes up to 60 percent of the 
107.32  state median income.  Any funds in addition to the amounts 
107.33  necessary to serve the persons identified in this paragraph 
107.34  shall be expended according to the provisions of paragraphs (b) 
107.35  and (c).  
107.36     Sec. 8.  Minnesota Statutes 1996, section 254B.09, 
108.1   subdivision 4, is amended to read: 
108.2      Subd. 4.  [TRIBAL ALLOCATION.] Forty-two and one-half 
108.3   Eighty-five percent of the American Indian chemical dependency 
108.4   tribal account must be allocated to the federally recognized 
108.5   American Indian tribal governing bodies that have entered into 
108.6   an agreement under subdivision 2 as follows:  $10,000 must be 
108.7   allocated to each governing body and the remainder must be 
108.8   allocated in direct proportion to the population of the 
108.9   reservation according to the most recently available estimates 
108.10  from the federal Bureau of Indian Affairs.  When a tribal 
108.11  governing body has not entered into an agreement with the 
108.12  commissioner under subdivision 2, the county may use funds 
108.13  allocated to the reservation to pay for chemical dependency 
108.14  services for a current resident of the county and of the 
108.15  reservation. 
108.16     Sec. 9.  Minnesota Statutes 1996, section 254B.09, 
108.17  subdivision 5, is amended to read: 
108.18     Subd. 5.  [TRIBAL RESERVE ACCOUNT.] The commissioner shall 
108.19  reserve 7.5 15 percent of the American Indian chemical 
108.20  dependency tribal account.  The reserve must be allocated to 
108.21  those tribal units that have used all money allocated under 
108.22  subdivision 4 according to agreements made under subdivision 2 
108.23  and to counties submitting invoices for American Indians under 
108.24  subdivision 1 when all money allocated under subdivision 4 has 
108.25  been used.  An American Indian tribal governing body or a county 
108.26  submitting invoices under subdivision 1 may receive not more 
108.27  than 30 percent of the reserve account in a year.  The 
108.28  commissioner may refuse to make reserve payments for persons not 
108.29  eligible under section 254B.04, subdivision 1, if the tribal 
108.30  governing body responsible for treatment placement has exhausted 
108.31  its allocation.  Money must be allocated as invoices are 
108.32  received. 
108.33     Sec. 10.  Minnesota Statutes 1996, section 254B.09, 
108.34  subdivision 7, is amended to read: 
108.35     Subd. 7.  [NONRESERVATION INDIAN ACCOUNT.] Fifty percent of 
108.36  The nonreservation American Indian chemical dependency 
109.1   allocation must be held in reserve by the commissioner in an 
109.2   account for treatment of Indians not residing on lands of a 
109.3   reservation receiving money under subdivision 4.  This money 
109.4   must be used to pay for services certified by county invoice to 
109.5   have been provided to an American Indian eligible recipient.  
109.6   Money allocated under this subdivision may be used for payments 
109.7   on behalf of American Indian county residents only if, in 
109.8   addition to other placement standards, the county certifies that 
109.9   the placement was appropriate to the cultural orientation of the 
109.10  client.  Any funds for treatment of nonreservation Indians 
109.11  remaining at the end of a fiscal year shall be reallocated under 
109.12  section 254B.02. 
109.13     Sec. 11.  Minnesota Statutes 1996, section 256.045, 
109.14  subdivision 7, is amended to read: 
109.15     Subd. 7.  [JUDICIAL REVIEW.] Except for a prepaid health 
109.16  plan, any party who is aggrieved by an order of the commissioner 
109.17  of human services, or the commissioner of health in appeals 
109.18  within the commissioner's jurisdiction under subdivision 3b, may 
109.19  appeal the order to the district court of the county responsible 
109.20  for furnishing assistance, or, in appeals under subdivision 3b, 
109.21  the county where the maltreatment occurred, by serving a written 
109.22  copy of a notice of appeal upon the commissioner and any adverse 
109.23  party of record within 30 days after the date the commissioner 
109.24  issued the order, the amended order, or order affirming the 
109.25  original order, and by filing the original notice and proof of 
109.26  service with the court administrator of the district court.  
109.27  Service may be made personally or by mail; service by mail is 
109.28  complete upon mailing; no filing fee shall be required by the 
109.29  court administrator in appeals taken pursuant to this 
109.30  subdivision, with the exception of appeals taken under 
109.31  subdivision 3b.  The commissioner may elect to become a party to 
109.32  the proceedings in the district court.  Except for appeals under 
109.33  subdivision 3b, any party may demand that the commissioner 
109.34  furnish all parties to the proceedings with a copy of the 
109.35  decision, and a transcript of any testimony, evidence, or other 
109.36  supporting papers from the hearing held before the human 
110.1   services referee, by serving a written demand upon the 
110.2   commissioner within 30 days after service of the notice of 
110.3   appeal.  Any party aggrieved by the failure of an adverse party 
110.4   to obey an order issued by the commissioner under subdivision 5 
110.5   may compel performance according to the order in the manner 
110.6   prescribed in sections 586.01 to 586.12. 
110.7      Sec. 12.  Minnesota Statutes 1996, section 256.476, 
110.8   subdivision 2, is amended to read: 
110.9      Subd. 2.  [DEFINITIONS.] For purposes of this section, the 
110.10  following terms have the meanings given them: 
110.11     (a) "County board" means the county board of commissioners 
110.12  for the county of financial responsibility as defined in section 
110.13  256G.02, subdivision 4, or its designated representative.  When 
110.14  a human services board has been established under sections 
110.15  402.01 to 402.10, it shall be considered the county board for 
110.16  the purposes of this section. 
110.17     (b) "Family" means the person's birth parents, adoptive 
110.18  parents or stepparents, siblings or stepsiblings, children or 
110.19  stepchildren, grandparents, grandchildren, niece, nephew, aunt, 
110.20  uncle, or spouse.  For the purposes of this section, a family 
110.21  member is at least 18 years of age. 
110.22     (c) "Functional limitations" means the long-term inability 
110.23  to perform an activity or task in one or more areas of major 
110.24  life activity, including self-care, understanding and use of 
110.25  language, learning, mobility, self-direction, and capacity for 
110.26  independent living.  For the purpose of this section, the 
110.27  inability to perform an activity or task results from a mental, 
110.28  emotional, psychological, sensory, or physical disability, 
110.29  condition, or illness. 
110.30     (d) "Informed choice" means a voluntary decision made by 
110.31  the person or the person's legal representative, after becoming 
110.32  familiarized with the alternatives to: 
110.33     (1) select a preferred alternative from a number of 
110.34  feasible alternatives; 
110.35     (2) select an alternative which may be developed in the 
110.36  future; and 
111.1      (3) refuse any or all alternatives. 
111.2      (e) "Local agency" means the local agency authorized by the 
111.3   county board to carry out the provisions of this section. 
111.4      (f) "Person" or "persons" means a person or persons meeting 
111.5   the eligibility criteria in subdivision 3. 
111.6      (g) "Responsible individual" "Authorized representative" 
111.7   means an individual designated by the person or their legal 
111.8   representative to act on their behalf.  This individual may be a 
111.9   family member, guardian, representative payee, or other 
111.10  individual designated by the person or their legal 
111.11  representative, if any, to assist in purchasing and arranging 
111.12  for supports.  For the purposes of this section, a responsible 
111.13  individual an authorized representative is at least 18 years of 
111.14  age. 
111.15     (h) "Screening" means the screening of a person's service 
111.16  needs under sections 256B.0911 and 256B.092. 
111.17     (i) "Supports" means services, care, aids, home 
111.18  modifications, or assistance purchased by the person or the 
111.19  person's family.  Examples of supports include respite care, 
111.20  assistance with daily living, and adaptive aids.  For the 
111.21  purpose of this section, notwithstanding the provisions of 
111.22  section 144A.43, supports purchased under the consumer support 
111.23  program are not considered home care services. 
111.24     (j) "Program of origination" means the program the 
111.25  individual transferred from when approved for the consumer 
111.26  support grant program. 
111.27     Sec. 13.  Minnesota Statutes 1996, section 256.476, 
111.28  subdivision 3, is amended to read: 
111.29     Subd. 3.  [ELIGIBILITY TO APPLY FOR GRANTS.] (a) A person 
111.30  is eligible to apply for a consumer support grant if the person 
111.31  meets all of the following criteria: 
111.32     (1) the person is eligible for and has been approved to 
111.33  receive services under medical assistance as determined under 
111.34  sections 256B.055 and 256B.056 or the person is eligible for and 
111.35  has been approved to receive services under alternative care 
111.36  services as determined under section 256B.0913 or the person has 
112.1   been approved to receive a grant under the developmental 
112.2   disability family support program under section 252.32; 
112.3      (2) the person is able to direct and purchase the person's 
112.4   own care and supports, or the person has a family member, legal 
112.5   representative, or other responsible individual authorized 
112.6   representative who can purchase and arrange supports on the 
112.7   person's behalf; 
112.8      (3) the person has functional limitations, requires ongoing 
112.9   supports to live in the community, and is at risk of or would 
112.10  continue institutionalization without such supports; and 
112.11     (4) the person will live in a home.  For the purpose of 
112.12  this section, "home" means the person's own home or home of a 
112.13  person's family member.  These homes are natural home settings 
112.14  and are not licensed by the department of health or human 
112.15  services. 
112.16     (b) Persons may not concurrently receive a consumer support 
112.17  grant if they are: 
112.18     (1) receiving home and community-based services under 
112.19  United States Code, title 42, section 1396h(c); personal care 
112.20  attendant and home health aide services under section 256B.0625; 
112.21  a developmental disability family support grant; or alternative 
112.22  care services under section 256B.0913; or 
112.23     (2) residing in an institutional or congregate care setting.
112.24     (c) A person or person's family receiving a consumer 
112.25  support grant shall not be charged a fee or premium by a local 
112.26  agency for participating in the program.  A person or person's 
112.27  family is not eligible for a consumer support grant if their 
112.28  income is at a level where they are required to pay a parental 
112.29  fee under sections 252.27, 256B.055, subdivision 12, and 256B.14 
112.30  and rules adopted under those sections for medical assistance 
112.31  services to a disabled child living with at least one parent.  
112.32     (d) The commissioner may limit the participation of nursing 
112.33  facility residents, residents of intermediate care facilities 
112.34  for persons with mental retardation, and the recipients of 
112.35  services from federal waiver programs in the consumer support 
112.36  grant program if the participation of these individuals will 
113.1   result in an increase in the cost to the state. 
113.2      (e) The commissioner shall establish a budgeted 
113.3   appropriation each fiscal year for the consumer support grant 
113.4   program.  The number of individuals participating in the program 
113.5   will be adjusted so the total amount allocated to counties does 
113.6   not exceed the amount of the budgeted appropriation.  The 
113.7   budgeted appropriation will be adjusted annually to accommodate 
113.8   changes in demand for the consumer support grants. 
113.9      Sec. 14.  Minnesota Statutes 1996, section 256.476, 
113.10  subdivision 4, is amended to read: 
113.11     Subd. 4.  [SUPPORT GRANTS; CRITERIA AND LIMITATIONS.] (a) A 
113.12  county board may choose to participate in the consumer support 
113.13  grant program.  If a county board chooses to participate in the 
113.14  program, the local agency shall establish written procedures and 
113.15  criteria to determine the amount and use of support grants.  
113.16  These procedures must include, at least, the availability of 
113.17  respite care, assistance with daily living, and adaptive aids.  
113.18  The local agency may establish monthly or annual maximum amounts 
113.19  for grants and procedures where exceptional resources may be 
113.20  required to meet the health and safety needs of the person on a 
113.21  time-limited basis, however, the total amount awarded to each 
113.22  individual may not exceed the limits established in subdivision 
113.23  5, paragraph (f). 
113.24     (b) Support grants to a person or a person's family may 
113.25  will be provided through a monthly subsidy or lump sum payment 
113.26  basis and be in the form of cash, voucher, or direct county 
113.27  payment to vendor.  Support grant amounts must be determined by 
113.28  the local agency.  Each service and item purchased with a 
113.29  support grant must meet all of the following criteria:  
113.30     (1) it must be over and above the normal cost of caring for 
113.31  the person if the person did not have functional limitations; 
113.32     (2) it must be directly attributable to the person's 
113.33  functional limitations; 
113.34     (3) it must enable the person or the person's family to 
113.35  delay or prevent out-of-home placement of the person; and 
113.36     (4) it must be consistent with the needs identified in the 
114.1   service plan, when applicable. 
114.2      (c) Items and services purchased with support grants must 
114.3   be those for which there are no other public or private funds 
114.4   available to the person or the person's family.  Fees assessed 
114.5   to the person or the person's family for health and human 
114.6   services are not reimbursable through the grant. 
114.7      (d) In approving or denying applications, the local agency 
114.8   shall consider the following factors:  
114.9      (1) the extent and areas of the person's functional 
114.10  limitations; 
114.11     (2) the degree of need in the home environment for 
114.12  additional support; and 
114.13     (3) the potential effectiveness of the grant to maintain 
114.14  and support the person in the family environment or the person's 
114.15  own home. 
114.16     (e) At the time of application to the program or screening 
114.17  for other services, the person or the person's family shall be 
114.18  provided sufficient information to ensure an informed choice of 
114.19  alternatives by the person, the person's legal representative, 
114.20  if any, or the person's family.  The application shall be made 
114.21  to the local agency and shall specify the needs of the person 
114.22  and family, the form and amount of grant requested, the items 
114.23  and services to be reimbursed, and evidence of eligibility for 
114.24  medical assistance or alternative care program. 
114.25     (f) Upon approval of an application by the local agency and 
114.26  agreement on a support plan for the person or person's family, 
114.27  the local agency shall make grants to the person or the person's 
114.28  family.  The grant shall be in an amount for the direct costs of 
114.29  the services or supports outlined in the service agreement.  
114.30     (g) Reimbursable costs shall not include costs for 
114.31  resources already available, such as special education classes, 
114.32  day training and habilitation, case management, other services 
114.33  to which the person is entitled, medical costs covered by 
114.34  insurance or other health programs, or other resources usually 
114.35  available at no cost to the person or the person's family. 
114.36     (h) The state of Minnesota, the county boards participating 
115.1   in the consumer support grant program, or the agencies acting on 
115.2   behalf of the county boards in the implementation and 
115.3   administration of the consumer support grant program shall not 
115.4   be liable for damages, injuries, or liabilities sustained 
115.5   through the purchase of support by the individual, the 
115.6   individual's family, or the authorized representative under this 
115.7   section with funds received through the consumer support grant 
115.8   program.  Liabilities include but are not limited to:  workers' 
115.9   compensation liability, the Federal Insurance Contributions Act 
115.10  (FICA), or the Federal Unemployment Tax Act (FUTA).  For 
115.11  purposes of this section, participating county boards and 
115.12  agencies acting on behalf of county boards are exempt from the 
115.13  provisions of section 268.04. 
115.14     Sec. 15.  Minnesota Statutes 1996, section 256.476, 
115.15  subdivision 5, is amended to read: 
115.16     Subd. 5.  [REIMBURSEMENT, ALLOCATIONS, AND REPORTING.] (a) 
115.17  For the purpose of transferring persons to the consumer support 
115.18  grant program from specific programs or services, such as the 
115.19  developmental disability family support program and alternative 
115.20  care program, personal care attendant, home health aide, or 
115.21  nursing facility services, the amount of funds transferred by 
115.22  the commissioner between the developmental disability family 
115.23  support program account, the alternative care account, the 
115.24  medical assistance account, or the consumer support grant 
115.25  account shall be based on each county's participation in 
115.26  transferring persons to the consumer support grant program from 
115.27  those programs and services. 
115.28     (b) At the beginning of each fiscal year, county 
115.29  allocations for consumer support grants shall be based on: 
115.30     (1) the number of persons to whom the county board expects 
115.31  to provide consumer supports grants; 
115.32     (2) their eligibility for current program and services; 
115.33     (3) the amount of nonfederal dollars expended on those 
115.34  individuals for those programs and services; or, in situations 
115.35  where an individual is unable to obtain the support needed from 
115.36  the program of origination due to the unavailability of service 
116.1   providers at the time or the location where the supports are 
116.2   needed, the allocation will be based on the county's best 
116.3   estimate of the nonfederal dollars that would have been expended 
116.4   if the services had been available; and 
116.5      (4) projected dates when persons will start receiving 
116.6   grants.  County allocations shall be adjusted periodically by 
116.7   the commissioner based on the actual transfer of persons or 
116.8   service openings, and the nonfederal dollars associated with 
116.9   those persons or service openings, to the consumer support grant 
116.10  program. 
116.11     (c) The amount of funds transferred by the commissioner 
116.12  from the alternative care account and the medical assistance 
116.13  account for an individual may be changed if it is determined by 
116.14  the county or its agent that the individual's need for support 
116.15  has changed. 
116.16     (d) The authority to utilize funds transferred to the 
116.17  consumer support grant account for the purposes of implementing 
116.18  and administering the consumer support grant program will not be 
116.19  limited or constrained by the spending authority provided to the 
116.20  program of origination. 
116.21     (e) The commissioner shall use up to five percent of each 
116.22  county's allocation, as adjusted, for payments to that county 
116.23  for administrative expenses, to be paid as a proportionate 
116.24  addition to reported direct service expenditures. 
116.25     (d) (f) Except as provided in this paragraph, the county 
116.26  allocation for each individual or individual's family cannot 
116.27  exceed 80 percent of the total nonfederal dollars expended on 
116.28  the individual by the program of origination except for the 
116.29  developmental disabilities family support grant program which 
116.30  can be approved up to 100 percent of the nonfederal dollars and 
116.31  in situations as described in paragraph (b), clause (3).  In 
116.32  situations where exceptional need exists or the individual's 
116.33  need for support increases, up to 100 percent of the nonfederal 
116.34  dollars expended may be allocated to the county.  Allocations 
116.35  that exceed 80 percent of the nonfederal dollars expended on the 
116.36  individual by the program of origination must be approved by the 
117.1   commissioner.  The remainder of the amount expended on the 
117.2   individual by the program of origination will be used in the 
117.3   following proportions:  half will be made available to the 
117.4   consumer support grant program and participating counties for 
117.5   consumer training, resource development, and other costs, and 
117.6   half will be returned to the state general fund. 
117.7      (g) The commissioner may recover, suspend, or withhold 
117.8   payments if the county board, local agency, or grantee does not 
117.9   comply with the requirements of this section. 
117.10     Sec. 16.  Minnesota Statutes 1996, section 256.969, 
117.11  subdivision 1, is amended to read: 
117.12     Subdivision 1.  [HOSPITAL COST INDEX.] (a) The hospital 
117.13  cost index shall be the change in the Consumer Price Index-All 
117.14  Items (United States city average) (CPI-U) forecasted by Data 
117.15  Resources, Inc.  The commissioner shall use the indices as 
117.16  forecasted in the third quarter of the calendar year prior to 
117.17  the rate year.  The hospital cost index may be used to adjust 
117.18  the base year operating payment rate through the rate year on an 
117.19  annually compounded basis.  
117.20     (b) For fiscal years beginning on or after July 1, 1993, 
117.21  the commissioner of human services shall not provide automatic 
117.22  annual inflation adjustments for hospital payment rates under 
117.23  medical assistance, nor under general assistance medical care, 
117.24  except that the inflation adjustments under paragraph (a) for 
117.25  medical assistance, excluding general assistance medical care, 
117.26  shall apply through calendar year 1997 1999.  The commissioner 
117.27  of finance shall include as a budget change request in each 
117.28  biennial detailed expenditure budget submitted to the 
117.29  legislature under section 16A.11 annual adjustments in hospital 
117.30  payment rates under medical assistance and general assistance 
117.31  medical care, based upon the hospital cost index. 
117.32     Sec. 17.  Minnesota Statutes 1996, section 256.9695, 
117.33  subdivision 1, is amended to read: 
117.34     Subdivision 1.  [APPEALS.] A hospital may appeal a decision 
117.35  arising from the application of standards or methods under 
117.36  section 256.9685, 256.9686, or 256.969, if an appeal would 
118.1   result in a change to the hospital's payment rate or payments.  
118.2   Both overpayments and underpayments that result from the 
118.3   submission of appeals shall be implemented.  Regardless of any 
118.4   appeal outcome, relative values shall not be recalculated.  The 
118.5   appeal shall be heard by an administrative law judge according 
118.6   to sections 14.57 to 14.62, or upon agreement by both parties, 
118.7   according to a modified appeals procedure established by the 
118.8   commissioner and the office of administrative hearings.  In any 
118.9   proceeding under this section, the appealing party must 
118.10  demonstrate by a preponderance of the evidence that the 
118.11  commissioner's determination is incorrect or not according to 
118.12  law. 
118.13     (a) To appeal a payment rate or payment determination or a 
118.14  determination made from base year information, the hospital 
118.15  shall file a written appeal request to the commissioner within 
118.16  60 days of the date the payment rate determination was mailed.  
118.17  The appeal request shall specify:  (i) the disputed items; (ii) 
118.18  the authority in federal or state statute or rule upon which the 
118.19  hospital relies for each disputed item; and (iii) the name and 
118.20  address of the person to contact regarding the appeal.  Facts to 
118.21  be considered in any appeal of base year information are limited 
118.22  to those in existence at the time the payment rates of the first 
118.23  rate year were established from the base year information.  In 
118.24  the case of Medicare settled appeals, the 60-day appeal period 
118.25  shall begin on the mailing date of the notice by the Medicare 
118.26  program or the date the medical assistance payment rate 
118.27  determination notice is mailed, whichever is later. 
118.28     (b) To appeal a payment rate or payment change that results 
118.29  from a difference in case mix between the base year and a rate 
118.30  year, the procedures and requirements of paragraph (a) apply.  
118.31  However, the appeal must be filed with the commissioner within 
118.32  120 days after the end of a rate year.  A case mix appeal must 
118.33  apply to the cost of services to all medical assistance patients 
118.34  that received inpatient services from the hospital during the 
118.35  rate year appealed.  For case mix appeals filed after January 1, 
118.36  1997, the difference in case mix and the corresponding payment 
119.1   adjustment must exceed a threshold of five percent. 
119.2      Sec. 18.  Minnesota Statutes 1996, section 256B.04, is 
119.3   amended by adding a subdivision to read: 
119.4      Subd. 1a.  [COMPREHENSIVE HEALTH SERVICES SYSTEM.] The 
119.5   commissioner shall carry out the duties in this section with the 
119.6   participation of the boards of county commissioners, and with 
119.7   full consideration for the interests of counties, to plan and 
119.8   implement a unified, accountable, comprehensive health services 
119.9   system that: 
119.10     (1) promotes accessible and quality health care for all 
119.11  Minnesotans; 
119.12     (2) assures provision of adequate health care within 
119.13  limited state and county resources; 
119.14     (3) avoids shifting funding burdens to county tax 
119.15  resources; 
119.16     (4) provides statewide eligibility, benefit, and service 
119.17  expectations; 
119.18     (5) manages care, develops risk management strategies, and 
119.19  contains cost in all health and human services; and 
119.20     (6) supports effective implementation of publicly funded 
119.21  health and human services for all areas of the state. 
119.22     Sec. 19.  Minnesota Statutes 1996, section 256B.055, 
119.23  subdivision 12, is amended to read: 
119.24     Subd. 12.  [DISABLED CHILDREN.] (a) A person is eligible 
119.25  for medical assistance if the person is under age 19 and 
119.26  qualifies as a disabled individual under United States Code, 
119.27  title 42, section 1382c(a), and would be eligible for medical 
119.28  assistance under the state plan if residing in a medical 
119.29  institution, and the child requires a level of care provided in 
119.30  a hospital, nursing facility, or intermediate care facility for 
119.31  persons with mental retardation or related conditions, for whom 
119.32  home care is appropriate, provided that the cost to medical 
119.33  assistance under this section is not more than the amount that 
119.34  medical assistance would pay for if the child resides in an 
119.35  institution.  After the child is determined to be eligible under 
119.36  this section, the commissioner shall review the child's 
120.1   disability under United States Code, title 42, section 1382c(a) 
120.2   and level of care defined under this section no more often than 
120.3   annually and may elect, based on the recommendation of health 
120.4   care professionals under contract with the state medical review 
120.5   team, to extend the review of disability and level of care up to 
120.6   a maximum of four years.  The commissioner's decision on the 
120.7   frequency of continuing review of disability and level of care 
120.8   is not subject to administrative appeal under section 256.045.  
120.9   Nothing in this subdivision shall be construed as affecting 
120.10  other redeterminations of medical assistance eligibility under 
120.11  this chapter and annual cost-effective reviews under this 
120.12  section.  
120.13     (b) For purposes of this subdivision, "hospital" means an 
120.14  institution as defined in section 144.696, subdivision 3, 
120.15  144.55, subdivision 3, or Minnesota Rules, part 4640.3600, and 
120.16  licensed pursuant to sections 144.50 to 144.58.  For purposes of 
120.17  this subdivision, a child requires a level of care provided in a 
120.18  hospital if the child is determined by the commissioner to need 
120.19  an extensive array of health services, including mental health 
120.20  services, for an undetermined period of time, whose health 
120.21  condition requires frequent monitoring and treatment by a health 
120.22  care professional or by a person supervised by a health care 
120.23  professional, who would reside in a hospital or require frequent 
120.24  hospitalization if these services were not provided, and the 
120.25  daily care needs are more complex than a nursing facility level 
120.26  of care.  
120.27     A child with serious emotional disturbance requires a level 
120.28  of care provided in a hospital if the commissioner determines 
120.29  that the individual requires 24-hour supervision because the 
120.30  person exhibits recurrent or frequent suicidal or homicidal 
120.31  ideation or behavior, recurrent or frequent psychosomatic 
120.32  disorders or somatopsychic disorders that may become life 
120.33  threatening, recurrent or frequent severe socially unacceptable 
120.34  behavior associated with psychiatric disorder, ongoing and 
120.35  chronic psychosis or severe, ongoing and chronic developmental 
120.36  problems requiring continuous skilled observation, or severe 
121.1   disabling symptoms for which office-centered outpatient 
121.2   treatment is not adequate, and which overall severely impact the 
121.3   individual's ability to function. 
121.4      (c) For purposes of this subdivision, "nursing facility" 
121.5   means a facility which provides nursing care as defined in 
121.6   section 144A.01, subdivision 5, licensed pursuant to sections 
121.7   144A.02 to 144A.10, which is appropriate if a person is in 
121.8   active restorative treatment; is in need of special treatments 
121.9   provided or supervised by a licensed nurse; or has unpredictable 
121.10  episodes of active disease processes requiring immediate 
121.11  judgment by a licensed nurse.  For purposes of this subdivision, 
121.12  a child requires the level of care provided in a nursing 
121.13  facility if the child is determined by the commissioner to meet 
121.14  the requirements of the preadmission screening assessment 
121.15  document under section 256B.0911 and the home care independent 
121.16  rating document under section 256B.0627, subdivision 5, 
121.17  paragraph (f), item (iii), adjusted to address age-appropriate 
121.18  standards for children age 18 and under, pursuant to section 
121.19  256B.0627, subdivision 5, paragraph (d), clause (2). 
121.20     (d) For purposes of this subdivision, "intermediate care 
121.21  facility for persons with mental retardation or related 
121.22  conditions" or "ICF/MR" means a program licensed to provide 
121.23  services to persons with mental retardation under section 
121.24  252.28, and chapter 245A, and a physical plant licensed as a 
121.25  supervised living facility under chapter 144, which together are 
121.26  certified by the Minnesota department of health as meeting the 
121.27  standards in Code of Federal Regulations, title 42, part 483, 
121.28  for an intermediate care facility which provides services for 
121.29  persons with mental retardation or persons with related 
121.30  conditions who require 24-hour supervision and active treatment 
121.31  for medical, behavioral, or habilitation needs.  For purposes of 
121.32  this subdivision, a child requires a level of care provided in 
121.33  an ICF/MR if the commissioner finds that the child has mental 
121.34  retardation or a related condition in accordance with section 
121.35  256B.092, is in need of a 24-hour plan of care and active 
121.36  treatment similar to persons with mental retardation, and there 
122.1   is a reasonable indication that the child will need ICF/MR 
122.2   services. 
122.3      (e) For purposes of this subdivision, a person requires the 
122.4   level of care provided in a nursing facility if the person 
122.5   requires 24-hour monitoring or supervision and a plan of mental 
122.6   health treatment because of specific symptoms or functional 
122.7   impairments associated with a serious mental illness or disorder 
122.8   diagnosis, which meet severity criteria for mental health 
122.9   established by the commissioner based on standards developed for 
122.10  the Wisconsin Katie Beckett program and published in July 1994 
122.11  March 1997 as the Minnesota Mental Health Level of Care for 
122.12  Children and Adolescents with Severe Emotional Disorders. 
122.13     (f) The determination of the level of care needed by the 
122.14  child shall be made by the commissioner based on information 
122.15  supplied to the commissioner by the parent or guardian, the 
122.16  child's physician or physicians, and other professionals as 
122.17  requested by the commissioner.  The commissioner shall establish 
122.18  a screening team to conduct the level of care determinations 
122.19  according to this subdivision. 
122.20     (g) If a child meets the conditions in paragraph (b), (c), 
122.21  (d), or (e), the commissioner must assess the case to determine 
122.22  whether: 
122.23     (1) the child qualifies as a disabled individual under 
122.24  United States Code, title 42, section 1382c(a), and would be 
122.25  eligible for medical assistance if residing in a medical 
122.26  institution; and 
122.27     (2) the cost of medical assistance services for the child, 
122.28  if eligible under this subdivision, would not be more than the 
122.29  cost to medical assistance if the child resides in a medical 
122.30  institution to be determined as follows: 
122.31     (i) for a child who requires a level of care provided in an 
122.32  ICF/MR, the cost of care for the child in an institution shall 
122.33  be determined using the average payment rate established for the 
122.34  regional treatment centers that are certified as ICFs/MR; 
122.35     (ii) for a child who requires a level of care provided in 
122.36  an inpatient hospital setting according to paragraph (b), 
123.1   cost-effectiveness shall be determined according to Minnesota 
123.2   Rules, part 9505.3520, items F and G; and 
123.3      (iii) for a child who requires a level of care provided in 
123.4   a nursing facility according to paragraph (c) or (e), 
123.5   cost-effectiveness shall be determined according to Minnesota 
123.6   Rules, part 9505.3040, except that the nursing facility average 
123.7   rate shall be adjusted to reflect rates which would be paid for 
123.8   children under age 16.  The commissioner may authorize an amount 
123.9   up to the amount medical assistance would pay for a child 
123.10  referred to the commissioner by the preadmission screening team 
123.11  under section 256B.0911. 
123.12     (h) Children eligible for medical assistance services under 
123.13  section 256B.055, subdivision 12, as of June 30, 1995, must be 
123.14  screened according to the criteria in this subdivision prior to 
123.15  January 1, 1996.  Children found to be ineligible may not be 
123.16  removed from the program until January 1, 1996.  
123.17     Sec. 20.  Minnesota Statutes 1996, section 256B.056, 
123.18  subdivision 4, is amended to read: 
123.19     Subd. 4.  [INCOME.] To be eligible for medical assistance, 
123.20  a person must not have, or anticipate receiving, semiannual 
123.21  income in excess of 120 percent of the income standards by 
123.22  family size used in the aid to families with dependent children 
123.23  program, except that families and children may have an income up 
123.24  to 133-1/3 percent of the AFDC income standard.  In computing 
123.25  income to determine eligibility of persons who are not residents 
123.26  of long-term care facilities, the commissioner shall disregard 
123.27  increases in income as required by Public Law Numbers 94-566, 
123.28  section 503; 99-272; and 99-509.  Veterans aid and attendance 
123.29  benefits and Veterans Administration unusual medical expense 
123.30  payments are considered income to the recipient. 
123.31     Sec. 21.  Minnesota Statutes 1996, section 256B.056, 
123.32  subdivision 5, is amended to read: 
123.33     Subd. 5.  [EXCESS INCOME.] A person who has excess income 
123.34  is eligible for medical assistance if the person has expenses 
123.35  for medical care that are more than the amount of the person's 
123.36  excess income, computed by deducting incurred medical expenses 
124.1   from the excess income to reduce the excess to the income 
124.2   standard specified in subdivision 4.  The person shall elect to 
124.3   have the medical expenses deducted at the beginning of a 
124.4   one-month budget period or at the beginning of a six-month 
124.5   budget period.  Until June 30, 1993, or the date the Medicaid 
124.6   Management Information System (MMIS) upgrade is implemented, 
124.7   whichever occurs last, The commissioner shall allow persons 
124.8   eligible for assistance on a one-month spenddown basis under 
124.9   this subdivision to elect to pay the monthly spenddown amount in 
124.10  advance of the month of eligibility to the local state agency in 
124.11  order to maintain eligibility on a continuous basis.  If the 
124.12  recipient does not pay the spenddown amount on or before 
124.13  the 10th 20th of the month, the recipient is ineligible for this 
124.14  option for the following month.  The local agency must deposit 
124.15  spenddown payments into its treasury and issue a monthly payment 
124.16  to the state agency with the necessary individual account 
124.17  information.  The local agency shall code the client eligibility 
124.18  Medicaid Management Information System (MMIS) to indicate that 
124.19  the spenddown obligation has been satisfied for the month 
124.20  paid recipient has elected this option.  The state agency shall 
124.21  convey this information recipient eligibility information 
124.22  relative to the collection of the spenddown to providers through 
124.23  eligibility cards which list no remaining spenddown obligation.  
124.24  After the implementation of the MMIS upgrade, the Electronic 
124.25  Verification System (EVS).  A recipient electing advance payment 
124.26  must pay the state agency the monthly spenddown amount on or 
124.27  before the 10th 20th of the month in order to be eligible for 
124.28  this option in the following month.  
124.29     Sec. 22.  Minnesota Statutes 1996, section 256B.057, 
124.30  subdivision 1, is amended to read: 
124.31     Subdivision 1.  [PREGNANT WOMEN AND INFANTS.] An infant 
124.32  less than one year of age or a pregnant woman who has written 
124.33  verification of a positive pregnancy test from a physician or 
124.34  licensed registered nurse, is eligible for medical assistance if 
124.35  countable family income is equal to or less than 275 percent of 
124.36  the federal poverty guideline for the same family size.  For 
125.1   purposes of this subdivision, "countable family income" means 
125.2   the amount of income considered available using the methodology 
125.3   of the AFDC program, except for the earned income disregard and 
125.4   employment deductions.  An amount equal to the amount of earned 
125.5   income exceeding 275 percent of the federal poverty guideline, 
125.6   up to a maximum of the amount by which the combined total of 185 
125.7   percent of the federal poverty guideline plus the earned income 
125.8   disregards and deductions of the AFDC program exceeds 275 
125.9   percent of the federal poverty guideline will be deducted for 
125.10  pregnant women and infants less than one year of age.  
125.11  Eligibility for a pregnant woman or infant less than one year of 
125.12  age under this subdivision must be determined without regard to 
125.13  asset standards established in section 256B.056, subdivision 3.  
125.14     An infant born on or after January 1, 1991, to a woman who 
125.15  was eligible for and receiving medical assistance on the date of 
125.16  the child's birth shall continue to be eligible for medical 
125.17  assistance without redetermination until the child's first 
125.18  birthday, as long as the child remains in the woman's household. 
125.19     Sec. 23.  Minnesota Statutes 1996, section 256B.057, 
125.20  subdivision 1b, is amended to read: 
125.21     Subd. 1b.  [PREGNANT WOMEN AND INFANTS; EXPANSION.] This 
125.22  subdivision supersedes subdivision 1 as long as the Minnesota 
125.23  health care reform waiver remains in effect.  When the waiver 
125.24  expires, the commissioner of human services shall publish a 
125.25  notice in the State Register and notify the revisor of 
125.26  statutes.  An infant less than two years of age or a pregnant 
125.27  woman who has written verification of a positive pregnancy test 
125.28  from a physician or licensed registered nurse, is eligible for 
125.29  medical assistance if countable family income is equal to or 
125.30  less than 275 percent of the federal poverty guideline for the 
125.31  same family size.  For purposes of this subdivision, "countable 
125.32  family income" means the amount of income considered available 
125.33  using the methodology of the AFDC program, except for the earned 
125.34  income disregard and employment deductions.  An amount equal to 
125.35  the amount of earned income exceeding 275 percent of the federal 
125.36  poverty guideline, up to a maximum of the amount by which the 
126.1   combined total of 185 percent of the federal poverty guideline 
126.2   plus the earned income disregards and deductions of the AFDC 
126.3   program exceeds 275 percent of the federal poverty guideline 
126.4   will be deducted for pregnant women and infants less than two 
126.5   years of age.  Eligibility for a pregnant woman or infant less 
126.6   than two years of age under this subdivision must be determined 
126.7   without regard to asset standards established in section 
126.8   256B.056, subdivision 3.  
126.9      An infant born on or after January 1, 1991, to a woman who 
126.10  was eligible for and receiving medical assistance on the date of 
126.11  the child's birth shall continue to be eligible for medical 
126.12  assistance without redetermination until the child's second 
126.13  birthday, as long as the child remains in the woman's household. 
126.14     Sec. 24.  Minnesota Statutes 1996, section 256B.057, 
126.15  subdivision 2, is amended to read: 
126.16     Subd. 2.  [CHILDREN.] A child one through five years of age 
126.17  in a family whose countable income is less than 133 percent of 
126.18  the federal poverty guidelines for the same family size, is 
126.19  eligible for medical assistance.  A child six through 18 years 
126.20  of age, who was born after September 30, 1983, in a family whose 
126.21  countable income is less than 100 percent of the federal poverty 
126.22  guidelines for the same family size is eligible for medical 
126.23  assistance.  Eligibility for children under this subdivision 
126.24  must be determined without regard to asset standards established 
126.25  in section 256B.056, subdivision 3.  
126.26     Sec. 25.  Minnesota Statutes 1996, section 256B.0625, 
126.27  subdivision 13, is amended to read: 
126.28     Subd. 13.  [DRUGS.] (a) Medical assistance covers drugs, 
126.29  except for fertility drugs when specifically used to enhance 
126.30  fertility, if prescribed by a licensed practitioner and 
126.31  dispensed by a licensed pharmacist, by a physician enrolled in 
126.32  the medical assistance program as a dispensing physician, or by 
126.33  a physician or a nurse practitioner employed by or under 
126.34  contract with a community health board as defined in section 
126.35  145A.02, subdivision 5, for the purposes of communicable disease 
126.36  control.  The commissioner, after receiving recommendations from 
127.1   professional medical associations and professional pharmacist 
127.2   associations, shall designate a formulary committee to advise 
127.3   the commissioner on the names of drugs for which payment is 
127.4   made, recommend a system for reimbursing providers on a set fee 
127.5   or charge basis rather than the present system, and develop 
127.6   methods encouraging use of generic drugs when they are less 
127.7   expensive and equally effective as trademark drugs.  The 
127.8   formulary committee shall consist of nine members, four of whom 
127.9   shall be physicians who are not employed by the department of 
127.10  human services, and a majority of whose practice is for persons 
127.11  paying privately or through health insurance, three of whom 
127.12  shall be pharmacists who are not employed by the department of 
127.13  human services, and a majority of whose practice is for persons 
127.14  paying privately or through health insurance, a consumer 
127.15  representative, and a nursing home representative.  Committee 
127.16  members shall serve three-year terms and shall serve without 
127.17  compensation.  Members may be reappointed once.  
127.18     (b) The commissioner shall establish a drug formulary.  Its 
127.19  establishment and publication shall not be subject to the 
127.20  requirements of the administrative procedure act, but the 
127.21  formulary committee shall review and comment on the formulary 
127.22  contents.  The formulary committee shall review and recommend 
127.23  drugs which require prior authorization.  The formulary 
127.24  committee may recommend drugs for prior authorization directly 
127.25  to the commissioner, as long as opportunity for public input is 
127.26  provided.  Prior authorization may be requested by the 
127.27  commissioner based on medical and clinical criteria before 
127.28  certain drugs are eligible for payment.  Before a drug may be 
127.29  considered for prior authorization at the request of the 
127.30  commissioner:  
127.31     (1) the drug formulary committee must develop criteria to 
127.32  be used for identifying drugs; the development of these criteria 
127.33  is not subject to the requirements of chapter 14, but the 
127.34  formulary committee shall provide opportunity for public input 
127.35  in developing criteria; 
127.36     (2) the drug formulary committee must hold a public forum 
128.1   and receive public comment for an additional 15 days; and 
128.2      (3) the commissioner must provide information to the 
128.3   formulary committee on the impact that placing the drug on prior 
128.4   authorization will have on the quality of patient care and 
128.5   information regarding whether the drug is subject to clinical 
128.6   abuse or misuse.  Prior authorization may be required by the 
128.7   commissioner before certain formulary drugs are eligible for 
128.8   payment.  The formulary shall not include:  
128.9      (i) drugs or products for which there is no federal 
128.10  funding; 
128.11     (ii) over-the-counter drugs, except for antacids, 
128.12  acetaminophen, family planning products, aspirin, insulin, 
128.13  products for the treatment of lice, vitamins for adults with 
128.14  documented vitamin deficiencies, and vitamins for children under 
128.15  the age of seven and pregnant or nursing women;, and 
128.16     (iii) any other over-the-counter drug identified by the 
128.17  commissioner, in consultation with the drug formulary committee, 
128.18  as necessary, appropriate, and cost-effective for the treatment 
128.19  of certain specified chronic diseases, conditions or disorders, 
128.20  and this determination shall not be subject to the requirements 
128.21  of chapter 14; 
128.22     (iv) (iii) anorectics; and 
128.23     (v) (iv) drugs for which medical value has not been 
128.24  established. 
128.25     The commissioner shall publish conditions for prohibiting 
128.26  payment for specific drugs after considering the formulary 
128.27  committee's recommendations.  
128.28     (c) The basis for determining the amount of payment shall 
128.29  be the lower of the actual acquisition costs of the drugs plus a 
128.30  fixed dispensing fee; the maximum allowable cost set by the 
128.31  federal government or by the commissioner plus the fixed 
128.32  dispensing fee; or the usual and customary price charged to the 
128.33  public.  The pharmacy dispensing fee shall be $3.85 $3.65.  
128.34  Actual acquisition cost includes quantity and other special 
128.35  discounts except time and cash discounts.  The actual 
128.36  acquisition cost of a drug shall be estimated by the 
129.1   commissioner, at average wholesale price minus nine percent.  
129.2   The maximum allowable cost of a multisource drug may be set by 
129.3   the commissioner and it shall be comparable to, but no higher 
129.4   than, the maximum amount paid by other third-party payors in 
129.5   this state who have maximum allowable cost programs.  
129.6   Establishment of the amount of payment for drugs shall not be 
129.7   subject to the requirements of the administrative procedure 
129.8   act.  An additional dispensing fee of $.30 may be added to the 
129.9   dispensing fee paid to pharmacists for legend drug prescriptions 
129.10  dispensed to residents of long-term care facilities when a unit 
129.11  dose blister card system, approved by the department, is used.  
129.12  Under this type of dispensing system, the pharmacist must 
129.13  dispense a 30-day supply of drug.  The National Drug Code (NDC) 
129.14  from the drug container used to fill the blister card must be 
129.15  identified on the claim to the department.  The unit dose 
129.16  blister card containing the drug must meet the packaging 
129.17  standards set forth in Minnesota Rules, part 6800.2700, that 
129.18  govern the return of unused drugs to the pharmacy for reuse.  
129.19  The pharmacy provider will be required to credit the department 
129.20  for the actual acquisition cost of all unused drugs that are 
129.21  eligible for reuse.  Over-the-counter medications must be 
129.22  dispensed in the manufacturer's unopened package.  The 
129.23  commissioner may permit the drug clozapine to be dispensed in a 
129.24  quantity that is less than a 30-day supply.  Whenever a 
129.25  generically equivalent product is available, payment shall be on 
129.26  the basis of the actual acquisition cost of the generic drug, 
129.27  unless the prescriber specifically indicates "dispense as 
129.28  written - brand necessary" on the prescription as required by 
129.29  section 151.21, subdivision 2.  
129.30     Sec. 26.  Minnesota Statutes 1996, section 256B.0625, is 
129.31  amended by adding a subdivision to read: 
129.32     Subd. 31a.  [AUGMENTATIVE AND ALTERNATIVE COMMUNICATION 
129.33  SYSTEMS.] (a) Medical assistance covers augmentative and 
129.34  alternative communication systems consisting of electronic or 
129.35  nonelectronic devices and the related components necessary to 
129.36  enable a person with severe expressive communication limitations 
130.1   to produce or transmit messages or symbols in a manner that 
130.2   compensates for that disability. 
130.3      (b) By January 1, 1998, the commissioner, in cooperation 
130.4   with the commissioner of administration, shall establish an 
130.5   augmentative and alternative communication system purchasing 
130.6   program within a state agency or by contract with a qualified 
130.7   private entity.  The purpose of this service is to facilitate 
130.8   ready availability of the augmentative and alternative 
130.9   communication systems needed to meet the needs of persons with 
130.10  severe expressive communication limitations in an efficient and 
130.11  cost-effective manner.  This program shall: 
130.12     (1) coordinate purchase and rental of augmentative and 
130.13  alternative communication systems; 
130.14     (2) negotiate agreements with manufacturers and vendors for 
130.15  purchase of components of these systems, for warranty coverage, 
130.16  and for repair service; 
130.17     (3) when efficient and cost-effective, maintain and 
130.18  refurbish if needed, an inventory of components of augmentative 
130.19  and alternative communication systems for short- or long-term 
130.20  loan to recipients; 
130.21     (4) facilitate training sessions for service providers, 
130.22  consumers, and families on augmentative and alternative 
130.23  communication systems; and 
130.24     (5) develop a recycling program for used augmentative and 
130.25  alternative communications systems to be reissued and used for 
130.26  trials and short-term use, when appropriate. 
130.27     The availability of components of augmentative and 
130.28  alternative communication systems through this program is 
130.29  subject to prior authorization requirements established under 
130.30  subdivision 25. 
130.31     Reimbursement rates established by this purchasing program 
130.32  are not subject to Minnesota Rules, part 9505.0445, item S or T. 
130.33     Sec. 27.  Minnesota Statutes 1996, section 256B.0626, is 
130.34  amended to read: 
130.35     256B.0626 [ESTIMATION OF 50TH PERCENTILE OF PREVAILING 
130.36  CHARGES.] 
131.1      (a) The 50th percentile of the prevailing charge for the 
131.2   base year identified in statute must be estimated by the 
131.3   commissioner in the following situations: 
131.4      (1) there were less than ten five billings in the calendar 
131.5   year specified in legislation governing maximum payment rates; 
131.6      (2) the service was not available in the calendar year 
131.7   specified in legislation governing maximum payment rates; 
131.8      (3) the payment amount is the result of a provider appeal; 
131.9      (4) the procedure code description has changed since the 
131.10  calendar year specified in legislation governing maximum payment 
131.11  rates, and, therefore, the prevailing charge information 
131.12  reflects the same code but a different procedure description; or 
131.13     (5) the 50th percentile reflects a payment which is grossly 
131.14  inequitable when compared with payment rates for procedures or 
131.15  services which are substantially similar. 
131.16     (b) When one of the situations identified in paragraph (a) 
131.17  occurs, the commissioner shall use the following methodology to 
131.18  reconstruct a rate comparable to the 50th percentile of the 
131.19  prevailing rate: 
131.20     (1) refer to information which exists for the first nine 
131.21  four billings in the calendar year specified in legislation 
131.22  governing maximum payment rates; or 
131.23     (2) refer to surrounding or comparable procedure codes; or 
131.24     (3) refer to the 50th percentile of years subsequent to the 
131.25  calendar year specified in legislation governing maximum payment 
131.26  rates, and reduce that amount by applying an appropriate 
131.27  Consumer Price Index formula; or 
131.28     (4) refer to relative value indexes; or 
131.29     (5) refer to reimbursement information from other third 
131.30  parties, such as Medicare. 
131.31     Sec. 28.  Minnesota Statutes 1996, section 256B.0627, 
131.32  subdivision 5, is amended to read: 
131.33     Subd. 5.  [LIMITATION ON PAYMENTS.] Medical assistance 
131.34  payments for home care services shall be limited according to 
131.35  this subdivision.  
131.36     (a)  [LIMITS ON SERVICES WITHOUT PRIOR AUTHORIZATION.] A 
132.1   recipient may receive the following home care services during a 
132.2   calendar year: 
132.3      (1) any initial assessment; and 
132.4      (2) up to two reassessments per year done to determine a 
132.5   recipient's need for personal care services; and 
132.6      (3) up to five skilled nurse visits.  
132.7      (b)  [PRIOR AUTHORIZATION; EXCEPTIONS.] All home care 
132.8   services above the limits in paragraph (a) must receive the 
132.9   commissioner's prior authorization, except when: 
132.10     (1) the home care services were required to treat an 
132.11  emergency medical condition that if not immediately treated 
132.12  could cause a recipient serious physical or mental disability, 
132.13  continuation of severe pain, or death.  The provider must 
132.14  request retroactive authorization no later than five working 
132.15  days after giving the initial service.  The provider must be 
132.16  able to substantiate the emergency by documentation such as 
132.17  reports, notes, and admission or discharge histories; 
132.18     (2) the home care services were provided on or after the 
132.19  date on which the recipient's eligibility began, but before the 
132.20  date on which the recipient was notified that the case was 
132.21  opened.  Authorization will be considered if the request is 
132.22  submitted by the provider within 20 working days of the date the 
132.23  recipient was notified that the case was opened; 
132.24     (3) a third-party payor for home care services has denied 
132.25  or adjusted a payment.  Authorization requests must be submitted 
132.26  by the provider within 20 working days of the notice of denial 
132.27  or adjustment.  A copy of the notice must be included with the 
132.28  request; 
132.29     (4) the commissioner has determined that a county or state 
132.30  human services agency has made an error; or 
132.31     (5) the professional nurse determines an immediate need for 
132.32  up to 40 skilled nursing or home health aide visits per calendar 
132.33  year and submits a request for authorization within 20 working 
132.34  days of the initial service date, and medical assistance is 
132.35  determined to be the appropriate payer. 
132.36     (c)  [RETROACTIVE AUTHORIZATION.] A request for retroactive 
133.1   authorization will be evaluated according to the same criteria 
133.2   applied to prior authorization requests.  
133.3      (d)  [ASSESSMENT AND SERVICE PLAN.] Assessments under 
133.4   section 256B.0627, subdivision 1, paragraph (a), shall be 
133.5   conducted initially, and at least annually thereafter, in person 
133.6   with the recipient and result in a completed service plan using 
133.7   forms specified by the commissioner.  Within 30 days of 
133.8   recipient or responsible party request for home care services, 
133.9   the assessment, the service plan, and other information 
133.10  necessary to determine medical necessity such as diagnostic or 
133.11  testing information, social or medical histories, and hospital 
133.12  or facility discharge summaries shall be submitted to the 
133.13  commissioner.  For personal care services: 
133.14     (1) The amount and type of service authorized based upon 
133.15  the assessment and service plan will follow the recipient if the 
133.16  recipient chooses to change providers.  
133.17     (2) If the recipient's medical need changes, the 
133.18  recipient's provider may assess the need for a change in service 
133.19  authorization and request the change from the county public 
133.20  health nurse.  Within 30 days of the request, the public health 
133.21  nurse will determine whether to request the change in services 
133.22  based upon the provider assessment, or conduct a home visit to 
133.23  assess the need and determine whether the change is appropriate. 
133.24     (3) To continue to receive personal care services when the 
133.25  recipient displays no significant change, the county public 
133.26  health nurse has the option to review with the commissioner, or 
133.27  the commissioner's designee, the service plan on record and 
133.28  receive authorization for up to an additional 12 months at a 
133.29  time for up to three years. 
133.30     (e)  [PRIOR AUTHORIZATION.] The commissioner, or the 
133.31  commissioner's designee, shall review the assessment, the 
133.32  service plan, and any additional information that is submitted.  
133.33  The commissioner shall, within 30 days after receiving a 
133.34  complete request, assessment, and service plan, authorize home 
133.35  care services as follows:  
133.36     (1)  [HOME HEALTH SERVICES.] All home health services 
134.1   provided by a licensed nurse or a home health aide must be prior 
134.2   authorized by the commissioner or the commissioner's designee.  
134.3   Prior authorization must be based on medical necessity and 
134.4   cost-effectiveness when compared with other care options.  When 
134.5   home health services are used in combination with personal care 
134.6   and private duty nursing, the cost of all home care services 
134.7   shall be considered for cost-effectiveness.  The commissioner 
134.8   shall limit nurse and home health aide visits to no more than 
134.9   one visit each per day. 
134.10     (2)  [PERSONAL CARE SERVICES.] (i) All personal care 
134.11  services and registered nurse supervision must be prior 
134.12  authorized by the commissioner or the commissioner's designee 
134.13  except for the assessments established in paragraph (a).  The 
134.14  amount of personal care services authorized must be based on the 
134.15  recipient's home care rating.  A child may not be found to be 
134.16  dependent in an activity of daily living if because of the 
134.17  child's age an adult would either perform the activity for the 
134.18  child or assist the child with the activity and the amount of 
134.19  assistance needed is similar to the assistance appropriate for a 
134.20  typical child of the same age.  Based on medical necessity, the 
134.21  commissioner may authorize: 
134.22     (A) up to two times the average number of direct care hours 
134.23  provided in nursing facilities for the recipient's comparable 
134.24  case mix level; or 
134.25     (B) up to three times the average number of direct care 
134.26  hours provided in nursing facilities for recipients who have 
134.27  complex medical needs or are dependent in at least seven 
134.28  activities of daily living and need physical assistance with 
134.29  eating or have a neurological diagnosis; or 
134.30     (C) up to 60 percent of the average reimbursement rate, as 
134.31  of July 1, 1991, for care provided in a regional treatment 
134.32  center for recipients who have Level I behavior, plus any 
134.33  inflation adjustment as provided by the legislature for personal 
134.34  care service; or 
134.35     (D) up to the amount the commissioner would pay, as of July 
134.36  1, 1991, plus any inflation adjustment provided for home care 
135.1   services, for care provided in a regional treatment center for 
135.2   recipients referred to the commissioner by a regional treatment 
135.3   center preadmission evaluation team.  For purposes of this 
135.4   clause, home care services means all services provided in the 
135.5   home or community that would be included in the payment to a 
135.6   regional treatment center; or 
135.7      (E) up to the amount medical assistance would reimburse for 
135.8   facility care for recipients referred to the commissioner by a 
135.9   preadmission screening team established under section 256B.0911 
135.10  or 256B.092; and 
135.11     (F) a reasonable amount of time for the provision of 
135.12  nursing supervision of personal care services.  
135.13     (ii) The number of direct care hours shall be determined 
135.14  according to the annual cost report submitted to the department 
135.15  by nursing facilities.  The average number of direct care hours, 
135.16  as established by May 1, 1992, shall be calculated and 
135.17  incorporated into the home care limits on July 1, 1992.  These 
135.18  limits shall be calculated to the nearest quarter hour. 
135.19     (iii) The home care rating shall be determined by the 
135.20  commissioner or the commissioner's designee based on information 
135.21  submitted to the commissioner by the county public health nurse 
135.22  on forms specified by the commissioner.  The home care rating 
135.23  shall be a combination of current assessment tools developed 
135.24  under sections 256B.0911 and 256B.501 with an addition for 
135.25  seizure activity that will assess the frequency and severity of 
135.26  seizure activity and with adjustments, additions, and 
135.27  clarifications that are necessary to reflect the needs and 
135.28  conditions of recipients who need home care including children 
135.29  and adults under 65 years of age.  The commissioner shall 
135.30  establish these forms and protocols under this section and shall 
135.31  use an advisory group, including representatives of recipients, 
135.32  providers, and counties, for consultation in establishing and 
135.33  revising the forms and protocols. 
135.34     (iv) A recipient shall qualify as having complex medical 
135.35  needs if the care required is difficult to perform and because 
135.36  of recipient's medical condition requires more time than 
136.1   community-based standards allow or requires more skill than 
136.2   would ordinarily be required and the recipient needs or has one 
136.3   or more of the following: 
136.4      (A) daily tube feedings; 
136.5      (B) daily parenteral therapy; 
136.6      (C) wound or decubiti care; 
136.7      (D) postural drainage, percussion, nebulizer treatments, 
136.8   suctioning, tracheotomy care, oxygen, mechanical ventilation; 
136.9      (E) catheterization; 
136.10     (F) ostomy care; 
136.11     (G) quadriplegia; or 
136.12     (H) other comparable medical conditions or treatments the 
136.13  commissioner determines would otherwise require institutional 
136.14  care.  
136.15     (v) A recipient shall qualify as having Level I behavior if 
136.16  there is reasonable supporting evidence that the recipient 
136.17  exhibits, or that without supervision, observation, or 
136.18  redirection would exhibit, one or more of the following 
136.19  behaviors that cause, or have the potential to cause: 
136.20     (A) injury to the recipient's own body; 
136.21     (B) physical injury to other people; or 
136.22     (C) destruction of property. 
136.23     (vi) Time authorized for personal care relating to Level I 
136.24  behavior in subclause (v), items (A) to (C), shall be based on 
136.25  the predictability, frequency, and amount of intervention 
136.26  required. 
136.27     (vii) A recipient shall qualify as having Level II behavior 
136.28  if the recipient exhibits on a daily basis one or more of the 
136.29  following behaviors that interfere with the completion of 
136.30  personal care services under subdivision 4, paragraph (a): 
136.31     (A) unusual or repetitive habits; 
136.32     (B) withdrawn behavior; or 
136.33     (C) offensive behavior. 
136.34     (viii) A recipient with a home care rating of Level II 
136.35  behavior in subclause (vii), items (A) to (C), shall be rated as 
136.36  comparable to a recipient with complex medical needs under 
137.1   subclause (iv).  If a recipient has both complex medical needs 
137.2   and Level II behavior, the home care rating shall be the next 
137.3   complex category up to the maximum rating under subclause (i), 
137.4   item (B). 
137.5      (3)  [PRIVATE DUTY NURSING SERVICES.] All private duty 
137.6   nursing services shall be prior authorized by the commissioner 
137.7   or the commissioner's designee.  Prior authorization for private 
137.8   duty nursing services shall be based on medical necessity and 
137.9   cost-effectiveness when compared with alternative care options.  
137.10  The commissioner may authorize medically necessary private duty 
137.11  nursing services in quarter-hour units when: 
137.12     (i) the recipient requires more individual and continuous 
137.13  care than can be provided during a nurse visit; or 
137.14     (ii) the cares are outside of the scope of services that 
137.15  can be provided by a home health aide or personal care assistant.
137.16     The commissioner may authorize: 
137.17     (A) up to two times the average amount of direct care hours 
137.18  provided in nursing facilities statewide for case mix 
137.19  classification "K" as established by the annual cost report 
137.20  submitted to the department by nursing facilities in May 1992; 
137.21     (B) private duty nursing in combination with other home 
137.22  care services up to the total cost allowed under clause (2); 
137.23     (C) up to 16 hours per day if the recipient requires more 
137.24  nursing than the maximum number of direct care hours as 
137.25  established in item (A) and the recipient meets the hospital 
137.26  admission criteria established under Minnesota Rules, parts 
137.27  9505.0500 to 9505.0540.  
137.28     The commissioner may authorize up to 16 hours per day of 
137.29  medically necessary private duty nursing services or up to 24 
137.30  hours per day of medically necessary private duty nursing 
137.31  services until such time as the commissioner is able to make a 
137.32  determination of eligibility for recipients who are 
137.33  cooperatively applying for home care services under the 
137.34  community alternative care program developed under section 
137.35  256B.49, or until it is determined by the appropriate regulatory 
137.36  agency that a health benefit plan is or is not required to pay 
138.1   for appropriate medically necessary health care services.  
138.2   Recipients or their representatives must cooperatively assist 
138.3   the commissioner in obtaining this determination.  Recipients 
138.4   who are eligible for the community alternative care program may 
138.5   not receive more hours of nursing under this section than would 
138.6   otherwise be authorized under section 256B.49. 
138.7      (4)  [VENTILATOR-DEPENDENT RECIPIENTS.] If the recipient is 
138.8   ventilator-dependent, the monthly medical assistance 
138.9   authorization for home care services shall not exceed what the 
138.10  commissioner would pay for care at the highest cost hospital 
138.11  designated as a long-term hospital under the Medicare program.  
138.12  For purposes of this clause, home care services means all 
138.13  services provided in the home that would be included in the 
138.14  payment for care at the long-term hospital.  
138.15  "Ventilator-dependent" means an individual who receives 
138.16  mechanical ventilation for life support at least six hours per 
138.17  day and is expected to be or has been dependent for at least 30 
138.18  consecutive days.  
138.19     (f)  [PRIOR AUTHORIZATION; TIME LIMITS.] The commissioner 
138.20  or the commissioner's designee shall determine the time period 
138.21  for which a prior authorization shall be effective.  If the 
138.22  recipient continues to require home care services beyond the 
138.23  duration of the prior authorization, the home care provider must 
138.24  request a new prior authorization.  Under no circumstances, 
138.25  other than the exceptions in paragraph (b), shall a prior 
138.26  authorization be valid prior to the date the commissioner 
138.27  receives the request or for more than 12 months.  A recipient 
138.28  who appeals a reduction in previously authorized home care 
138.29  services may continue previously authorized services, other than 
138.30  temporary services under paragraph (h), pending an appeal under 
138.31  section 256.045.  The commissioner must provide a detailed 
138.32  explanation of why the authorized services are reduced in amount 
138.33  from those requested by the home care provider.  
138.34     (g)  [APPROVAL OF HOME CARE SERVICES.] The commissioner or 
138.35  the commissioner's designee shall determine the medical 
138.36  necessity of home care services, the level of caregiver 
139.1   according to subdivision 2, and the institutional comparison 
139.2   according to this subdivision, the cost-effectiveness of 
139.3   services, and the amount, scope, and duration of home care 
139.4   services reimbursable by medical assistance, based on the 
139.5   assessment, primary payer coverage determination information as 
139.6   required, the service plan, the recipient's age, the cost of 
139.7   services, the recipient's medical condition, and diagnosis or 
139.8   disability.  The commissioner may publish additional criteria 
139.9   for determining medical necessity according to section 256B.04. 
139.10     (h)  [PRIOR AUTHORIZATION REQUESTS; TEMPORARY SERVICES.] 
139.11  The agency nurse, the independently enrolled private duty nurse, 
139.12  or county public health nurse may request a temporary 
139.13  authorization for home care services by telephone.  The 
139.14  commissioner may approve a temporary level of home care services 
139.15  based on the assessment, and service or care plan information, 
139.16  and primary payer coverage determination information as required.
139.17  Authorization for a temporary level of home care services 
139.18  including nurse supervision is limited to the time specified by 
139.19  the commissioner, but shall not exceed 45 days, unless extended 
139.20  because the county public health nurse has not completed the 
139.21  required assessment and service plan, or the commissioner's 
139.22  determination has not been made.  The level of services 
139.23  authorized under this provision shall have no bearing on a 
139.24  future prior authorization. 
139.25     (i)  [PRIOR AUTHORIZATION REQUIRED IN FOSTER CARE SETTING.] 
139.26  Home care services provided in an adult or child foster care 
139.27  setting must receive prior authorization by the department 
139.28  according to the limits established in paragraph (a). 
139.29     The commissioner may not authorize: 
139.30     (1) home care services that are the responsibility of the 
139.31  foster care provider under the terms of the foster care 
139.32  placement agreement and administrative rules.  Requests for home 
139.33  care services for recipients residing in a foster care setting 
139.34  must include the foster care placement agreement and 
139.35  determination of difficulty of care; 
139.36     (2) personal care services when the foster care license 
140.1   holder is also the personal care provider or personal care 
140.2   assistant unless the recipient can direct the recipient's own 
140.3   care, or case management is provided as required in section 
140.4   256B.0625, subdivision 19a; 
140.5      (3) personal care services when the responsible party is an 
140.6   employee of, or under contract with, or has any direct or 
140.7   indirect financial relationship with the personal care provider 
140.8   or personal care assistant, unless case management is provided 
140.9   as required in section 256B.0625, subdivision 19a; 
140.10     (4) home care services when the number of foster care 
140.11  residents is greater than four unless the county responsible for 
140.12  the recipient's foster placement made the placement prior to 
140.13  April 1, 1992, requests that home care services be provided, and 
140.14  case management is provided as required in section 256B.0625, 
140.15  subdivision 19a; or 
140.16     (5) home care services when combined with foster care 
140.17  payments, other than room and board payments that exceed the 
140.18  total amount that public funds would pay for the recipient's 
140.19  care in a medical institution. 
140.20     Sec. 29.  Minnesota Statutes 1996, section 256B.0627, is 
140.21  amended by adding a subdivision to read: 
140.22     Subd. 8.  [PERSONAL CARE ASSISTANT SERVICES.] Recipients of 
140.23  personal care assistant services may share staff and the 
140.24  commissioner shall provide a rate system for shared personal 
140.25  care assistant services.  The rate system shall not exceed 1-1/2 
140.26  the amount paid for providing services to one person, and shall 
140.27  increase incrementally by one-half the cost of serving a single 
140.28  person, for each person served.  A personal care assistant may 
140.29  not serve more than three children in a single setting. 
140.30     Nothing in this subdivision shall be construed to reduce 
140.31  the total number of hours authorized for an individual recipient.
140.32     Sec. 30.  Minnesota Statutes 1996, section 256B.064, 
140.33  subdivision 1a, is amended to read: 
140.34     Subd. 1a.  [GROUNDS FOR MONETARY RECOVERY AND SANCTIONS 
140.35  AGAINST VENDORS.] The commissioner may seek monetary recovery 
140.36  and impose sanctions against vendors of medical care for any of 
141.1   the following:  fraud, theft, or abuse in connection with the 
141.2   provision of medical care to recipients of public assistance; a 
141.3   pattern of presentment of false or duplicate claims or claims 
141.4   for services not medically necessary; a pattern of making false 
141.5   statements of material facts for the purpose of obtaining 
141.6   greater compensation than that to which the vendor is legally 
141.7   entitled; suspension or termination as a Medicare vendor; and 
141.8   refusal to grant the state agency access during regular business 
141.9   hours to examine all records necessary to disclose the extent of 
141.10  services provided to program recipients; and any reason for 
141.11  which a vendor could be excluded from participation in the 
141.12  Medicare program under section 1128, 1128A, or 1866(b)(2) of the 
141.13  Social Security Act.  The determination of services not 
141.14  medically necessary may be made by the commissioner in 
141.15  consultation with a peer advisory task force appointed by the 
141.16  commissioner on the recommendation of appropriate professional 
141.17  organizations.  The task force expires as provided in section 
141.18  15.059, subdivision 5. 
141.19     Sec. 31.  Minnesota Statutes 1996, section 256B.064, 
141.20  subdivision 1c, is amended to read: 
141.21     Subd. 1c.  [METHODS OF MONETARY RECOVERY.] The commissioner 
141.22  may obtain monetary recovery for the conduct described in 
141.23  subdivision 1a by the following from a vendor who has been 
141.24  improperly paid either as a result of conduct described in 
141.25  subdivision 1a or as a result of a vendor or department error, 
141.26  regardless of whether the error was intentional.  The 
141.27  commissioner may obtain monetary recovery using methods, 
141.28  including but not limited to the following:  assessing and 
141.29  recovering money erroneously improperly paid and debiting from 
141.30  future payments any money erroneously improperly paid, except 
141.31  that.  Patterns need not be proven as a precondition to monetary 
141.32  recovery for of erroneous or false claims, duplicate claims, 
141.33  claims for services not medically necessary, or claims based on 
141.34  false statements.  The commissioner may shall charge interest on 
141.35  money to be recovered if the recovery is to be made by 
141.36  installment payments or debits, except when the monetary 
142.1   recovery is of an overpayment that resulted from a department 
142.2   error.  The interest charged shall be the rate established by 
142.3   the commissioner of revenue under section 270.75.  
142.4      Sec. 32.  Minnesota Statutes 1996, section 256B.064, 
142.5   subdivision 2, is amended to read: 
142.6      Subd. 2.  [IMPOSITION OF MONETARY RECOVERY AND SANCTIONS.] 
142.7   (a) The commissioner shall determine monetary amounts to be 
142.8   recovered and the sanction to be imposed upon a vendor of 
142.9   medical care for conduct described by subdivision 1a.  Except in 
142.10  the case of a conviction for conduct described in subdivision 1a 
142.11  as provided in paragraph (b), neither a monetary recovery nor a 
142.12  sanction will be sought imposed by the commissioner without 
142.13  prior notice and an opportunity for a hearing, pursuant 
142.14  according to chapter 14, on the commissioner's proposed action, 
142.15  provided that the commissioner may suspend or reduce payment to 
142.16  a vendor of medical care, except a nursing home or convalescent 
142.17  care facility, after notice and prior to the hearing if in the 
142.18  commissioner's opinion that action is necessary to protect the 
142.19  public welfare and the interests of the program. 
142.20     (b) Except for a nursing home or convalescent care 
142.21  facility, the commissioner may withhold or reduce payments to a 
142.22  vendor of medical care without providing advance notice of such 
142.23  withholding or reduction if either of the following occurs: 
142.24     (1) the vendor is convicted of a crime involving the 
142.25  conduct described in subdivision 1a; or 
142.26     (2) the commissioner receives reliable evidence of fraud or 
142.27  willful misrepresentation by the vendor. 
142.28     (c) The commissioner must send notice of the withholding or 
142.29  reduction of payments under paragraph (b) within five days of 
142.30  taking such action.  The notice must: 
142.31     (1) state that payments are being withheld according to 
142.32  paragraph (b); 
142.33     (2) except in the case of a conviction for conduct 
142.34  described in subdivision 1a, state that the withholding is for a 
142.35  temporary period and cite the circumstances under which 
142.36  withholding will be terminated; 
143.1      (3) identify the types of claims to which the withholding 
143.2   applies; and 
143.3      (4) inform the vendor of the right to submit written 
143.4   evidence for consideration by the commissioner. 
143.5      The withholding or reduction of payments will not continue 
143.6   after the commissioner determines there is insufficient evidence 
143.7   of fraud or willful misrepresentation by the vendor, or after 
143.8   legal proceedings relating to the alleged fraud or willful 
143.9   misrepresentation are completed, unless the commissioner has 
143.10  sent notice of intention to impose monetary recovery or 
143.11  sanctions under paragraph (a). 
143.12     (d) Upon receipt of a notice under paragraph (a) that a 
143.13  monetary recovery or sanction is to be imposed, a vendor may 
143.14  request a contested case, as defined in section 14.02, 
143.15  subdivision 3, by filing with the commissioner a written request 
143.16  of appeal.  The appeal request must be received by the 
143.17  commissioner no later than 30 days after the date the 
143.18  notification of monetary recovery or sanction was mailed to the 
143.19  vendor.  The appeal request must specify: 
143.20     (1) each disputed item, the reason for the dispute, and an 
143.21  estimate of the dollar amount involved for each disputed item; 
143.22     (2) the computation that the vendor believes is correct; 
143.23     (3) the authority in statute or rule upon which the vendor 
143.24  relies for each disputed item; 
143.25     (4) the name and address of the person or entity with whom 
143.26  contacts may be made regarding the appeal; and 
143.27     (5) other information required by the commissioner. 
143.28     Sec. 33.  Minnesota Statutes 1996, section 256B.0644, is 
143.29  amended to read: 
143.30     256B.0644 [PARTICIPATION REQUIRED FOR REIMBURSEMENT UNDER 
143.31  OTHER STATE HEALTH CARE PROGRAMS.] 
143.32     A vendor of medical care, as defined in section 256B.02, 
143.33  subdivision 7, and a health maintenance organization, as defined 
143.34  in chapter 62D, must participate as a provider or contractor in 
143.35  the medical assistance program, general assistance medical care 
143.36  program, and MinnesotaCare as a condition of participating as a 
144.1   provider in health insurance plans and programs or contractor 
144.2   for state employees established under section 43A.18, the public 
144.3   employees insurance program under section 43A.316, for health 
144.4   insurance plans offered to local statutory or home rule charter 
144.5   city, county, and school district employees, the workers' 
144.6   compensation system under section 176.135, and insurance plans 
144.7   provided through the Minnesota comprehensive health association 
144.8   under sections 62E.01 to 62E.16.  The limitations on insurance 
144.9   plans offered to local government employees shall not be 
144.10  applicable in geographic areas where provider participation is 
144.11  limited by managed care contracts with the department of human 
144.12  services.  For providers other than health maintenance 
144.13  organizations, participation in the medical assistance program 
144.14  means that (1) the provider accepts new medical assistance, 
144.15  general assistance medical care, and MinnesotaCare patients or, 
144.16  (2) for providers other than dental services providers, at least 
144.17  20 percent of the provider's patients are covered by medical 
144.18  assistance, general assistance medical care, and MinnesotaCare 
144.19  as their primary source of coverage, or (3) for dental services 
144.20  providers, at least ten percent of the provider's patients are 
144.21  covered by medical assistance, general assistance medical care, 
144.22  and MinnesotaCare as their primary source of coverage.  The 
144.23  commissioner shall establish participation requirements for 
144.24  health maintenance organizations.  The commissioner shall 
144.25  provide lists of participating medical assistance providers on a 
144.26  quarterly basis to the commissioner of employee relations, the 
144.27  commissioner of labor and industry, and the commissioner of 
144.28  commerce.  Each of the commissioners shall develop and implement 
144.29  procedures to exclude as participating providers in the program 
144.30  or programs under their jurisdiction those providers who do not 
144.31  participate in the medical assistance program.  The commissioner 
144.32  of employee relations shall implement this section through 
144.33  contracts with participating health and dental carriers. 
144.34     Sec. 34.  Minnesota Statutes 1996, section 256B.0911, 
144.35  subdivision 7, is amended to read: 
144.36     Subd. 7.  [REIMBURSEMENT FOR CERTIFIED NURSING FACILITIES.] 
145.1   (a) Medical assistance reimbursement for nursing facilities 
145.2   shall be authorized for a medical assistance recipient only if a 
145.3   preadmission screening has been conducted prior to admission or 
145.4   the local county agency has authorized an exemption.  Medical 
145.5   assistance reimbursement for nursing facilities shall not be 
145.6   provided for any recipient who the local screener has determined 
145.7   does not meet the level of care criteria for nursing facility 
145.8   placement or, if indicated, has not had a level II PASARR 
145.9   evaluation completed unless an admission for a recipient with 
145.10  mental illness is approved by the local mental health authority 
145.11  or an admission for a recipient with mental retardation or 
145.12  related condition is approved by the state mental retardation 
145.13  authority.  The county preadmission screening team may deny 
145.14  certified nursing facility admission using the level of care 
145.15  criteria established under section 144.0721 and deny medical 
145.16  assistance reimbursement for certified nursing facility care.  
145.17  Persons receiving care in a certified nursing facility or 
145.18  certified boarding care home who are reassessed by the 
145.19  commissioner of health according to section 144.0722 and 
145.20  determined to no longer meet the level of care criteria for a 
145.21  certified nursing facility or certified boarding care home may 
145.22  no longer remain a resident in the certified nursing facility or 
145.23  certified boarding care home and must be relocated to the 
145.24  community if the persons were admitted on or after July 1, 1996 
145.25  1998.  
145.26     (b) Persons receiving services under section 256B.0913, 
145.27  subdivisions 1 to 14, or 256B.0915 who are reassessed and found 
145.28  to not meet the level of care criteria for admission to a 
145.29  certified nursing facility or certified boarding care home may 
145.30  no longer receive these services if persons were admitted to the 
145.31  program on or after July 1, 1996 1998.  The commissioner shall 
145.32  make a request to the health care financing administration for a 
145.33  waiver allowing screening team approval of Medicaid payments for 
145.34  certified nursing facility care.  An individual has a choice and 
145.35  makes the final decision between nursing facility placement and 
145.36  community placement after the screening team's recommendation, 
146.1   except as provided in paragraphs (b) and (c).  
146.2      (b) (c) The local county mental health authority or the 
146.3   state mental retardation authority under Public Law Numbers 
146.4   100-203 and 101-508 may prohibit admission to a nursing 
146.5   facility, if the individual does not meet the nursing facility 
146.6   level of care criteria or needs specialized services as defined 
146.7   in Public Law Numbers 100-203 and 101-508.  For purposes of this 
146.8   section, "specialized services" for a person with mental 
146.9   retardation or a related condition means "active treatment" as 
146.10  that term is defined in Code of Federal Regulations, title 42, 
146.11  section 483.440(a)(1). 
146.12     (c) (d) Upon the receipt by the commissioner of approval by 
146.13  the Secretary of Health and Human Services of the waiver 
146.14  requested under paragraph (a), the local screener shall deny 
146.15  medical assistance reimbursement for nursing facility care for 
146.16  an individual whose long-term care needs can be met in a 
146.17  community-based setting and whose cost of community-based home 
146.18  care services is less than 75 percent of the average payment for 
146.19  nursing facility care for that individual's case mix 
146.20  classification, and who is either: 
146.21     (i) a current medical assistance recipient being screened 
146.22  for admission to a nursing facility; or 
146.23     (ii) an individual who would be eligible for medical 
146.24  assistance within 180 days of entering a nursing facility and 
146.25  who meets a nursing facility level of care. 
146.26     (d) (e) Appeals from the screening team's recommendation or 
146.27  the county agency's final decision shall be made according to 
146.28  section 256.045, subdivision 3. 
146.29     Sec. 35.  Minnesota Statutes 1996, section 256B.0912, is 
146.30  amended by adding a subdivision to read: 
146.31     Subd. 3.  [RATE CONSOLIDATION AND EQUALIZATION.] (a) The 
146.32  commissioner of human services shall use one maximum 
146.33  reimbursement rate for personal care services rendered after 
146.34  June 30, 1997, regardless of whether the services are provided 
146.35  through the medical assistance program, the alternative care 
146.36  program, and the elderly, the community alternatives for 
147.1   disabled individuals, the community alternative care, and the 
147.2   traumatic brain injury waiver programs.  The maximum 
147.3   reimbursement rate to be paid must be the reimbursement rate 
147.4   paid for personal care services received under the medical 
147.5   assistance program on June 30, 1997. 
147.6      (b) The maximum reimbursement rates for behavior 
147.7   programming and cognitive therapy services provided through the 
147.8   traumatic brain injury waiver must be equivalent to the medical 
147.9   assistance reimbursement rates for mental health services. 
147.10     Sec. 36.  Minnesota Statutes 1996, section 256B.0913, 
147.11  subdivision 7, is amended to read: 
147.12     Subd. 7.  [CASE MANAGEMENT.] The lead agency shall appoint 
147.13  a social worker from the county agency or a registered nurse 
147.14  from the county public health nursing service of the local board 
147.15  of health to be the case manager for any person receiving 
147.16  services funded by the alternative care program. Providers of 
147.17  case management services for persons receiving services funded 
147.18  by the alternative care program must meet the qualification 
147.19  requirements and standards specified in section 256B.0915, 
147.20  subdivision 1b.  The case manager must ensure the health and 
147.21  safety of the individual client and is responsible for the 
147.22  cost-effectiveness of the alternative care individual care 
147.23  plan.  The county may allow a case manager employed by the 
147.24  county to delegate certain aspects of the case management 
147.25  activity to another individual employed by the county provided 
147.26  there is oversight of the individual by the case manager.  The 
147.27  case manager may not delegate those aspects which require 
147.28  professional judgment including assessments, reassessments, and 
147.29  care plan development. 
147.30     Sec. 37.  Minnesota Statutes 1996, section 256B.0913, 
147.31  subdivision 10, is amended to read: 
147.32     Subd. 10.  [ALLOCATION FORMULA.] (a) The alternative care 
147.33  appropriation for fiscal years 1992 and beyond shall cover only 
147.34  180-day eligible clients. 
147.35     (b) Prior to July 1 of each year, the commissioner shall 
147.36  allocate to county agencies the state funds available for 
148.1   alternative care for persons eligible under subdivision 2.  The 
148.2   allocation for fiscal year 1992 shall be calculated using a base 
148.3   that is adjusted to exclude the medical assistance share of 
148.4   alternative care expenditures.  The adjusted base is calculated 
148.5   by multiplying each county's allocation for fiscal year 1991 by 
148.6   the percentage of county alternative care expenditures for 
148.7   180-day eligible clients.  The percentage is determined based on 
148.8   expenditures for services rendered in fiscal year 1989 or 
148.9   calendar year 1989, whichever is greater. 
148.10     (c) If the county expenditures for 180-day eligible clients 
148.11  are 95 percent or more of its adjusted base allocation, the 
148.12  allocation for the next fiscal year is 100 percent of the 
148.13  adjusted base, plus inflation to the extent that inflation is 
148.14  included in the state budget. 
148.15     (d) If the county expenditures for 180-day eligible clients 
148.16  are less than 95 percent of its adjusted base allocation, the 
148.17  allocation for the next fiscal year is the adjusted base 
148.18  allocation less the amount of unspent funds below the 95 percent 
148.19  level. 
148.20     (e) For fiscal year 1992 only, a county may receive an 
148.21  increased allocation if annualized service costs for the month 
148.22  of May 1991 for 180-day eligible clients are greater than the 
148.23  allocation otherwise determined.  A county may apply for this 
148.24  increase by reporting projected expenditures for May to the 
148.25  commissioner by June 1, 1991.  The amount of the allocation may 
148.26  exceed the amount calculated in paragraph (b).  The projected 
148.27  expenditures for May must be based on actual 180-day eligible 
148.28  client caseload and the individual cost of clients' care plans.  
148.29  If a county does not report its expenditures for May, the amount 
148.30  in paragraph (c) or (d) shall be used. 
148.31     (f) Calculations for paragraphs (c) and (d) are to be made 
148.32  as follows:  for each county, the determination of expenditures 
148.33  shall be based on payments for services rendered from April 1 
148.34  through March 31 in the base year, to the extent that claims 
148.35  have been submitted by June 1 of that year.  Calculations for 
148.36  paragraphs (c) and (d) must also include the funds transferred 
149.1   to the consumer support grant program for clients who have 
149.2   transferred to that program from April 1 through March 31 in the 
149.3   base year.  
149.4      Sec. 38.  Minnesota Statutes 1996, section 256B.0913, 
149.5   subdivision 15, is amended to read: 
149.6      Subd. 15.  [SERVICE ALLOWANCE FUND AVAILABILITY.] (a) 
149.7   Effective July 1, 1996 1998, the commissioner may use 
149.8   alternative care funds for services to high function class A 
149.9   persons as defined in section 144.0721, subdivision 3, clause 
149.10  (2).  The county alternative care grant allocation will be 
149.11  supplemented with a special allocation amount based on the 
149.12  projected number of eligible high function class A's and 
149.13  computed on the basis of $240 per month per projected eligible 
149.14  person.  Individual monthly expenditures under the service 
149.15  allowance option are permitted to be either greater or less than 
149.16  the amount of $240 per month based on individual need.  County 
149.17  allocations shall be adjusted periodically based on the actual 
149.18  provision of services to high function class A persons.  The 
149.19  allocation will be distributed by a population based formula and 
149.20  shall not exceed the proportion of projected savings made 
149.21  available under section 144.0721, subdivision 3. 
149.22     (b) Counties shall have the option of providing services, 
149.23  cash service allowances, vouchers, or a combination of these 
149.24  options to high function class A persons defined in section 
149.25  144.0721, subdivision 3, clause (2).  High function class A 
149.26  persons may choose services from among the categories of 
149.27  services listed under subdivision 5, except for case management 
149.28  services. 
149.29     (c) If the special allocation under this section to a 
149.30  county is not sufficient to serve all persons who qualify 
149.31  for alternative care services the service allowance, the county 
149.32  is not required to provide any alternative care services to a 
149.33  high function class A person but shall establish a waiting list 
149.34  to provide services as special allocation funding becomes 
149.35  available. 
149.36     Sec. 39.  Minnesota Statutes 1996, section 256B.0913, is 
150.1   amended by adding a subdivision to read: 
150.2      Subd. 16.  [CONVERSION OF ENROLLMENT.] Upon approval of the 
150.3   elderly waiver amendments described in section 42, persons 
150.4   currently receiving services shall have their eligibility for 
150.5   the elderly waiver program determined under section 256B.0915.  
150.6   Persons currently receiving alternative care services whose 
150.7   income is under the special income standard according to Code of 
150.8   Federal Regulations, title 42, section 435.236, who are eligible 
150.9   for the elderly waiver program shall be transferred to that 
150.10  program and shall receive priority access to elderly waiver 
150.11  slots for six months after implementation of this subdivision.  
150.12  Persons currently enrolled in the alternative care program who 
150.13  are not eligible for the elderly waiver program shall continue 
150.14  to be eligible for the alternative care program as long as 
150.15  continuous eligibility is maintained.  Continued eligibility for 
150.16  the alternative care program shall be reviewed every six 
150.17  months.  Persons who apply for the alternative care program 
150.18  after approval of the elderly waiver amendments in section 42 
150.19  are not eligible for alternative care if they would qualify for 
150.20  the elderly waiver, with or without a spenddown.  
150.21     Sec. 40.  Minnesota Statutes 1996, section 256B.0915, 
150.22  subdivision 1b, is amended to read: 
150.23     Subd. 1b.  [PROVIDER QUALIFICATIONS AND STANDARDS.] The 
150.24  commissioner must enroll qualified providers of elderly case 
150.25  management services under the home and community-based waiver 
150.26  for the elderly under section 1915(c) of the Social Security 
150.27  Act.  The enrollment process shall ensure the provider's ability 
150.28  to meet the qualification requirements and standards in this 
150.29  subdivision and other federal and state requirements of this 
150.30  service.  An elderly case management provider is an enrolled 
150.31  medical assistance provider who is determined by the 
150.32  commissioner to have all of the following characteristics: 
150.33     (1) the legal authority for alternative care program 
150.34  administration under section 256B.0913; 
150.35     (2) the demonstrated capacity and experience to provide the 
150.36  components of case management to coordinate and link community 
151.1   resources needed by the eligible population; 
151.2      (3) (2) administrative capacity and experience in serving 
151.3   the target population for whom it will provide services and in 
151.4   ensuring quality of services under state and federal 
151.5   requirements; 
151.6      (4) the legal authority to provide preadmission screening 
151.7   under section 256B.0911, subdivision 4; 
151.8      (5) (3) a financial management system that provides 
151.9   accurate documentation of services and costs under state and 
151.10  federal requirements; 
151.11     (6) (4) the capacity to document and maintain individual 
151.12  case records under state and federal requirements; and 
151.13     (7) (5) the county may allow a case manager employed by the 
151.14  county to delegate certain aspects of the case management 
151.15  activity to another individual employed by the county provided 
151.16  there is oversight of the individual by the case manager.  The 
151.17  case manager may not delegate those aspects which require 
151.18  professional judgment including assessments, reassessments, and 
151.19  care plan development. 
151.20     Sec. 41.  Minnesota Statutes 1996, section 256B.0915, is 
151.21  amended by adding a subdivision to read: 
151.22     Subd. 1d.  [POSTELIGIBILITY TREATMENT OF INCOME AND 
151.23  RESOURCES FOR ELDERLY WAIVER.] (a) Notwithstanding the 
151.24  provisions of section 256B.056, the commissioner shall make the 
151.25  following amendment to the medical assistance elderly waiver 
151.26  program effective July 1, 1997, or upon federal approval, 
151.27  whichever is later. 
151.28     A recipient's maintenance needs will be an amount equal to 
151.29  the Minnesota supplemental aid equivalent rate as defined in 
151.30  section 256I.03, subdivision 5, plus the medical assistance 
151.31  personal needs allowance as defined in section 256B.35, 
151.32  subdivision 1, paragraph (a), when applying posteligibility 
151.33  treatment of income rules to the gross income of elderly waiver 
151.34  recipients, except for individuals whose income is in excess of 
151.35  the special income standard according to Code of Federal 
151.36  Regulations, title 42, section 435.236. 
152.1      (b) The commissioner of human services shall secure 
152.2   approval of additional elderly waiver slots sufficient to serve 
152.3   persons who will qualify under the revised income standard 
152.4   described in paragraph (a) before implementing section 
152.5   256B.0913, subdivision 16. 
152.6      Sec. 42.  Minnesota Statutes 1996, section 256B.0915, 
152.7   subdivision 3, is amended to read: 
152.8      Subd. 3.  [LIMITS OF CASES, RATES, REIMBURSEMENT, AND 
152.9   FORECASTING.] (a) The number of medical assistance waiver 
152.10  recipients that a county may serve must be allocated according 
152.11  to the number of medical assistance waiver cases open on July 1 
152.12  of each fiscal year.  Additional recipients may be served with 
152.13  the approval of the commissioner. 
152.14     (b) The monthly limit for the cost of waivered services to 
152.15  an individual waiver client shall be the statewide average 
152.16  payment rate of the case mix resident class to which the waiver 
152.17  client would be assigned under the medical assistance case mix 
152.18  reimbursement system.  If medical supplies and equipment or 
152.19  adaptations are or will be purchased for an elderly waiver 
152.20  services recipient, the costs may be prorated on a monthly basis 
152.21  throughout the year in which they are purchased.  If the monthly 
152.22  cost of a recipient's other waivered services exceeds the 
152.23  monthly limit established in this paragraph, the annual cost of 
152.24  the waivered services shall be determined.  In this event, the 
152.25  annual cost of waivered services shall not exceed 12 times the 
152.26  monthly limit calculated in this paragraph.  The statewide 
152.27  average payment rate is calculated by determining the statewide 
152.28  average monthly nursing home rate, effective July 1 of the 
152.29  fiscal year in which the cost is incurred, less the statewide 
152.30  average monthly income of nursing home residents who are age 65 
152.31  or older, and who are medical assistance recipients in the month 
152.32  of March of the previous state fiscal year.  The annual cost 
152.33  divided by 12 of elderly or disabled waivered services for a 
152.34  person who is a nursing facility resident at the time of 
152.35  requesting a determination of eligibility for elderly or 
152.36  disabled waivered services shall not exceed be the greater of 
153.1   the monthly payment for:  (i) the resident class assigned under 
153.2   Minnesota Rules, parts 9549.0050 to 9549.0059, for that resident 
153.3   in the nursing facility where the resident currently resides; or 
153.4   (ii) the statewide average payment of the case mix resident 
153.5   class to which the resident would be assigned under the medical 
153.6   assistance case mix reimbursement system, provided that the 
153.7   limit under this clause only applies to persons discharged from 
153.8   a nursing facility and found eligible for waivered services on 
153.9   or after July 1, 1997.  The following costs must be included in 
153.10  determining the total monthly costs for the waiver client: 
153.11     (1) cost of all waivered services, including extended 
153.12  medical supplies and equipment; and 
153.13     (2) cost of skilled nursing, home health aide, and personal 
153.14  care services reimbursable by medical assistance.  
153.15     (c) Medical assistance funding for skilled nursing 
153.16  services, private duty nursing, home health aide, and personal 
153.17  care services for waiver recipients must be approved by the case 
153.18  manager and included in the individual care plan. 
153.19     (d) For both the elderly waiver and the nursing facility 
153.20  disabled waiver, a county may purchase extended supplies and 
153.21  equipment without prior approval from the commissioner when 
153.22  there is no other funding source and the supplies and equipment 
153.23  are specified in the individual's care plan as medically 
153.24  necessary to enable the individual to remain in the community 
153.25  according to the criteria in Minnesota Rules, part 9505.0210, 
153.26  items A and B.  A county is not required to contract with a 
153.27  provider of supplies and equipment if the monthly cost of the 
153.28  supplies and equipment is less than $250.  
153.29     (e) For the fiscal year beginning on July 1, 1993, and for 
153.30  subsequent fiscal years, the commissioner of human services 
153.31  shall not provide automatic annual inflation adjustments for 
153.32  home and community-based waivered services.  The commissioner of 
153.33  finance shall include as a budget change request in each 
153.34  biennial detailed expenditure budget submitted to the 
153.35  legislature under section 16A.11, annual adjustments in 
153.36  reimbursement rates for home and community-based waivered 
154.1   services, based on the forecasted percentage change in the Home 
154.2   Health Agency Market Basket of Operating Costs, for the fiscal 
154.3   year beginning July 1, compared to the previous fiscal year, 
154.4   unless otherwise adjusted by statute.  The Home Health Agency 
154.5   Market Basket of Operating Costs is published by Data Resources, 
154.6   Inc.  The forecast to be used is the one published for the 
154.7   calendar quarter beginning January 1, six months prior to the 
154.8   beginning of the fiscal year for which rates are set.  The adult 
154.9   foster care rate shall be considered a difficulty of care 
154.10  payment and shall not include room and board. 
154.11     (f) The adult foster care daily rate for the elderly and 
154.12  disabled waivers shall be negotiated between the county agency 
154.13  and the foster care provider.  The rate established under this 
154.14  section shall not exceed the state average monthly nursing home 
154.15  payment for the case mix classification to which the individual 
154.16  receiving foster care is assigned; the rate must allow for other 
154.17  waiver and medical assistance home care services to be 
154.18  authorized by the case manager. 
154.19     (g) The assisted living and residential care service rates 
154.20  for elderly and community alternatives for disabled individuals 
154.21  (CADI) waivers shall be made to the vendor as a monthly rate 
154.22  negotiated with the county agency.  The rate shall not exceed 
154.23  the nonfederal share of the greater of either the statewide or 
154.24  any of the geographic groups' weighted average monthly medical 
154.25  assistance nursing facility payment rate of the case mix 
154.26  resident class to which the elderly or disabled client would be 
154.27  assigned under Minnesota Rules, parts 9549.0050 to 9549.0059.  
154.28  For alternative care assisted living projects established under 
154.29  Laws 1988, chapter 689, article 2, section 256, monthly rates 
154.30  may not exceed 65 percent of the greater of either the statewide 
154.31  or any of the geographic groups' weighted average monthly 
154.32  medical assistance nursing facility payment rate for the case 
154.33  mix resident class to which the elderly or disabled client would 
154.34  be assigned under Minnesota Rules, parts 9549.0050 to 
154.35  9549.0059.  The rate may not cover direct rent or food costs. 
154.36     (h) The county shall negotiate individual rates with 
155.1   vendors and may be reimbursed for actual costs up to the greater 
155.2   of the county's current approved rate or 60 percent of the 
155.3   maximum rate in fiscal year 1994 and 65 percent of the maximum 
155.4   rate in fiscal year 1995 for each service within each program. 
155.5      (i) On July 1, 1993, the commissioner shall increase the 
155.6   maximum rate for home-delivered meals to $4.50 per meal. 
155.7      (j) Reimbursement for the medical assistance recipients 
155.8   under the approved waiver shall be made from the medical 
155.9   assistance account through the invoice processing procedures of 
155.10  the department's Medicaid Management Information System (MMIS), 
155.11  only with the approval of the client's case manager.  The budget 
155.12  for the state share of the Medicaid expenditures shall be 
155.13  forecasted with the medical assistance budget, and shall be 
155.14  consistent with the approved waiver.  
155.15     (k) Beginning July 1, 1991, the state shall reimburse 
155.16  counties according to the payment schedule in section 256.025 
155.17  for the county share of costs incurred under this subdivision on 
155.18  or after January 1, 1991, for individuals who are receiving 
155.19  medical assistance. 
155.20     (l) For the community alternatives for disabled individuals 
155.21  waiver, and nursing facility disabled waivers, county may use 
155.22  waiver funds for the cost of minor adaptations to a client's 
155.23  residence or vehicle without prior approval from the 
155.24  commissioner if there is no other source of funding and the 
155.25  adaptation: 
155.26     (1) is necessary to avoid institutionalization; 
155.27     (2) has no utility apart from the needs of the client; and 
155.28     (3) meets the criteria in Minnesota Rules, part 9505.0210, 
155.29  items A and B.  
155.30  For purposes of this subdivision, "residence" means the client's 
155.31  own home, the client's family residence, or a family foster 
155.32  home.  For purposes of this subdivision, "vehicle" means the 
155.33  client's vehicle, the client's family vehicle, or the client's 
155.34  family foster home vehicle. 
155.35     (m) The commissioner shall establish a maximum rate unit 
155.36  for baths provided by an adult day care provider that are not 
156.1   included in the provider's contractual daily or hourly rate.  
156.2   This maximum rate must equal the home health aide extended rate 
156.3   and shall be paid for baths provided to clients served under the 
156.4   elderly and disabled waivers. 
156.5      Sec. 43.  Minnesota Statutes 1996, section 256B.0915, is 
156.6   amended by adding a subdivision to read: 
156.7      Subd. 7.  [PREPAID ELDERLY WAIVER SERVICES.] An individual 
156.8   for whom a prepaid health plan is liable for nursing home 
156.9   services or elderly waiver services according to section 
156.10  256B.69, subdivision 6a, is not eligible to receive 
156.11  county-administered elderly waiver services under this section. 
156.12     Sec. 44.  Minnesota Statutes 1996, section 256B.0917, 
156.13  subdivision 7, is amended to read: 
156.14     Subd. 7.  [CONTRACT.] (a) The commissioner of human 
156.15  services shall execute a contract with an organization 
156.16  experienced in establishing and operating community-based 
156.17  programs that have used the principles listed in subdivision 8, 
156.18  paragraph (b), in order to meet the independent living and 
156.19  health needs of senior citizens aged 65 and over and provide 
156.20  community-based long-term care for senior citizens in their 
156.21  homes Living at Home/Block Nurse Program, Inc. (LAH/BN, Inc.).  
156.22  The organization contract shall require LAH/BN, Inc. to: 
156.23     (1) assist the commissioner in developing develop criteria 
156.24  for and in awarding award grants to establish community-based 
156.25  organizations that will implement living-at-home/block nurse 
156.26  programs throughout the state; 
156.27     (2) assist the commissioner in awarding award grants to 
156.28  enable current living-at-home/block nurse programs to continue 
156.29  to implement the combined living-at-home/block nurse program 
156.30  model; 
156.31     (3) serve as a state technical assistance center to assist 
156.32  and coordinate the living-at-home/block nurse programs 
156.33  established; and 
156.34     (4) develop the implementation plan required by subdivision 
156.35  10 manage contracts with individual living-at-home/block nurse 
156.36  programs. 
157.1      (b) The contract shall be effective July 1, 1997, and 
157.2   section 16B.17 shall not apply. 
157.3      Sec. 45.  Minnesota Statutes 1996, section 256B.0917, 
157.4   subdivision 8, is amended to read: 
157.5      Subd. 8.  [LIVING-AT-HOME/BLOCK NURSE PROGRAM GRANT.] (a) 
157.6   The commissioner, in cooperation with the organization awarded 
157.7   the contract under subdivision 7, shall develop and administer a 
157.8   grant program to establish or expand up to 15 27 community-based 
157.9   organizations that will implement living-at-home/block nurse 
157.10  programs that are designed to enable senior citizens to live as 
157.11  independently as possible in their homes and in their 
157.12  communities.  At least seven one-half of the programs must be in 
157.13  counties outside the seven-county metropolitan area.  The 
157.14  living-at-home/block nurse program funds shall be available to 
157.15  the four to six SAIL projects established under this section. 
157.16  Nonprofit organizations and units of local government are 
157.17  eligible to apply for grants to establish the community 
157.18  organizations that will implement living-at-home/block nurse 
157.19  programs.  In awarding grants, the commissioner organization 
157.20  awarded the contract under subdivision 7 shall give preference 
157.21  to nonprofit organizations and units of local government from 
157.22  communities that: 
157.23     (1) have high nursing home occupancy rates; 
157.24     (2) have a shortage of health care professionals; and 
157.25     (3) are located in counties adjacent to, or are located in, 
157.26  counties with existing living-at-home/block nurse programs; and 
157.27     (4) meet other criteria established by the commissioner 
157.28  LAH/BN, Inc., in consultation with the organization under 
157.29  contract commissioner. 
157.30     (b) Grant applicants must also meet the following criteria: 
157.31     (1) the local community demonstrates a readiness to 
157.32  establish a community model of care, including the formation of 
157.33  a board of directors, advisory committee, or similar group, of 
157.34  which at least two-thirds is comprised of community citizens 
157.35  interested in community-based care for older persons; 
157.36     (2) the program has sponsorship by a credible, 
158.1   representative organization within the community; 
158.2      (3) the program has defined specific geographic boundaries 
158.3   and defined its organization, staffing and coordination/delivery 
158.4   of services; 
158.5      (4) the program demonstrates a team approach to 
158.6   coordination and care, ensuring that the older adult 
158.7   participants, their families, the formal and informal providers 
158.8   are all part of the effort to plan and provide services; and 
158.9      (5) the program provides assurances that all community 
158.10  resources and funding will be coordinated and that other funding 
158.11  sources will be maximized, including a person's own resources. 
158.12     (c) Grant applicants must provide a minimum of five percent 
158.13  of total estimated development costs from local community 
158.14  funding.  Grants shall be awarded for two-year four-year 
158.15  periods, and the base amount shall not exceed $40,000 $80,000 
158.16  per applicant for the grant period.  The commissioner, in 
158.17  consultation with the organization under contract, may increase 
158.18  the grant amount for applicants from communities that have 
158.19  socioeconomic characteristics that indicate a higher level of 
158.20  need for development assistance.  Subject to the availability of 
158.21  funding, grants and grant renewals awarded or entered into on or 
158.22  after July 1, 1997, shall be renewed by LAH/BN, Inc. every four 
158.23  years, unless LAH/BN, Inc. determines that the grant recipient 
158.24  has not satisfactorily operated the living-at-home/block nurse 
158.25  program in compliance with the requirements of paragraphs (b) 
158.26  and (d).  Grants provided to living-at-home/block nurse programs 
158.27  under this paragraph may be used for both program development 
158.28  and the delivery of services. 
158.29     (d) Each living-at-home/block nurse program shall be 
158.30  designed by representatives of the communities being served to 
158.31  ensure that the program addresses the specific needs of the 
158.32  community residents.  The programs must be designed to: 
158.33     (1) incorporate the basic community, organizational, and 
158.34  service delivery principles of the living-at-home/block nurse 
158.35  program model; 
158.36     (2) provide senior citizens with registered nurse directed 
159.1   assessment, provision and coordination of health and personal 
159.2   care services on a sliding fee basis as an alternative to 
159.3   expensive nursing home care; 
159.4      (3) provide information, support services, homemaking 
159.5   services, counseling, and training for the client and family 
159.6   caregivers; 
159.7      (4) encourage the development and use of respite care, 
159.8   caregiver support, and in-home support programs, such as adult 
159.9   foster care and in-home adult day care; 
159.10     (5) encourage neighborhood residents and local 
159.11  organizations to collaborate in meeting the needs of senior 
159.12  citizens in their communities; 
159.13     (6) recruit, train, and direct the use of volunteers to 
159.14  provide informal services and other appropriate support to 
159.15  senior citizens and their caregivers; and 
159.16     (7) provide coordination and management of formal and 
159.17  informal services to senior citizens and their families using 
159.18  less expensive alternatives.  
159.19     Sec. 46.  Minnesota Statutes 1996, section 256B.431, 
159.20  subdivision 3f, is amended to read: 
159.21     Subd. 3f.  [PROPERTY COSTS AFTER JULY 1, 1988.] (a)  
159.22  [INVESTMENT PER BED LIMIT.] For the rate year beginning July 1, 
159.23  1988, the replacement-cost-new per bed limit must be $32,571 per 
159.24  licensed bed in multiple bedrooms and $48,857 per licensed bed 
159.25  in a single bedroom.  For the rate year beginning July 1, 1989, 
159.26  the replacement-cost-new per bed limit for a single bedroom must 
159.27  be $49,907 adjusted according to Minnesota Rules, part 
159.28  9549.0060, subpart 4, item A, subitem (1).  Beginning January 1, 
159.29  1990, the replacement-cost-new per bed limits must be adjusted 
159.30  annually as specified in Minnesota Rules, part 9549.0060, 
159.31  subpart 4, item A, subitem (1).  Beginning January 1, 1991, the 
159.32  replacement-cost-new per bed limits will be adjusted annually as 
159.33  specified in Minnesota Rules, part 9549.0060, subpart 4, item A, 
159.34  subitem (1), except that the index utilized will be the Bureau 
159.35  of the Census:  Composite fixed-weighted price index as 
159.36  published in the Survey of Current Business C30 Report, Value of 
160.1   New Construction Put in Place. 
160.2      (b)  [RENTAL FACTOR.] For the rate year beginning July 1, 
160.3   1988, the commissioner shall increase the rental factor as 
160.4   established in Minnesota Rules, part 9549.0060, subpart 8, item 
160.5   A, by 6.2 percent rounded to the nearest 100th percent for the 
160.6   purpose of reimbursing nursing facilities for soft costs and 
160.7   entrepreneurial profits not included in the cost valuation 
160.8   services used by the state's contracted appraisers.  For rate 
160.9   years beginning on or after July 1, 1989, the rental factor is 
160.10  the amount determined under this paragraph for the rate year 
160.11  beginning July 1, 1988. 
160.12     (c)  [OCCUPANCY FACTOR.] For rate years beginning on or 
160.13  after July 1, 1988, in order to determine property-related 
160.14  payment rates under Minnesota Rules, part 9549.0060, for all 
160.15  nursing facilities except those whose average length of stay in 
160.16  a skilled level of care within a nursing facility is 180 days or 
160.17  less, the commissioner shall use 95 percent of capacity days.  
160.18  For a nursing facility whose average length of stay in a skilled 
160.19  level of care within a nursing facility is 180 days or less, the 
160.20  commissioner shall use the greater of resident days or 80 
160.21  percent of capacity days but in no event shall the divisor 
160.22  exceed 95 percent of capacity days. 
160.23     (d)  [EQUIPMENT ALLOWANCE.] For rate years beginning on 
160.24  July 1, 1988, and July 1, 1989, the commissioner shall add ten 
160.25  cents per resident per day to each nursing facility's 
160.26  property-related payment rate.  The ten-cent property-related 
160.27  payment rate increase is not cumulative from rate year to rate 
160.28  year.  For the rate year beginning July 1, 1990, the 
160.29  commissioner shall increase each nursing facility's equipment 
160.30  allowance as established in Minnesota Rules, part 9549.0060, 
160.31  subpart 10, by ten cents per resident per day.  For rate years 
160.32  beginning on or after July 1, 1991, the adjusted equipment 
160.33  allowance must be adjusted annually for inflation as in 
160.34  Minnesota Rules, part 9549.0060, subpart 10, item E.  For the 
160.35  rate period beginning October 1, 1992, the equipment allowance 
160.36  for each nursing facility shall be increased by 28 percent.  For 
161.1   rate years beginning after June 30, 1993, the allowance must be 
161.2   adjusted annually for inflation. 
161.3      (e)  [POST CHAPTER 199 RELATED-ORGANIZATION DEBTS AND 
161.4   INTEREST EXPENSE.] For rate years beginning on or after July 1, 
161.5   1990, Minnesota Rules, part 9549.0060, subpart 5, item E, shall 
161.6   not apply to outstanding related organization debt incurred 
161.7   prior to May 23, 1983, provided that the debt was an allowable 
161.8   debt under Minnesota Rules, parts 9510.0010 to 9510.0480, the 
161.9   debt is subject to repayment through annual principal payments, 
161.10  and the nursing facility demonstrates to the commissioner's 
161.11  satisfaction that the interest rate on the debt was less than 
161.12  market interest rates for similar arms-length transactions at 
161.13  the time the debt was incurred.  If the debt was incurred due to 
161.14  a sale between family members, the nursing facility must also 
161.15  demonstrate that the seller no longer participates in the 
161.16  management or operation of the nursing facility.  Debts meeting 
161.17  the conditions of this paragraph are subject to all other 
161.18  provisions of Minnesota Rules, parts 9549.0010 to 9549.0080. 
161.19     (f)  [BUILDING CAPITAL ALLOWANCE FOR NURSING FACILITIES 
161.20  WITH OPERATING LEASES.] For rate years beginning on or after 
161.21  July 1, 1990, a nursing facility with operating lease costs 
161.22  incurred for the nursing facility's buildings shall receive its 
161.23  building capital allowance computed in accordance with Minnesota 
161.24  Rules, part 9549.0060, subpart 8.  
161.25     Sec. 47.  Minnesota Statutes 1996, section 256B.49, is 
161.26  amended by adding a subdivision to read: 
161.27     Subd. 9.  [PREVOCATIONAL AND SUPPORTED EMPLOYMENT 
161.28  SERVICES.] The commissioner shall seek to amend the community 
161.29  alternatives for disabled individuals waivers and the traumatic 
161.30  brain injury waivers to include prevocational and supported 
161.31  employment services. 
161.32     Sec. 48.  Minnesota Statutes 1996, section 256B.69, 
161.33  subdivision 2, is amended to read: 
161.34     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
161.35  the following terms have the meanings given.  
161.36     (a) "Commissioner" means the commissioner of human services.
162.1   For the remainder of this section, the commissioner's 
162.2   responsibilities for methods and policies for implementing the 
162.3   project will be proposed by the project advisory committees and 
162.4   approved by the commissioner.  
162.5      (b) "Demonstration provider" means an individual, agency, 
162.6   organization, or group of these entities a health maintenance 
162.7   organization or community integrated service network authorized 
162.8   and operating under chapter 62D or 62N that participates in the 
162.9   demonstration project according to criteria, standards, methods, 
162.10  and other requirements established for the project and approved 
162.11  by the commissioner.  Notwithstanding the above, Itasca county 
162.12  may continue to participate as a demonstration provider until 
162.13  July 1, 2000. 
162.14     (c) "Eligible individuals" means those persons eligible for 
162.15  medical assistance benefits as defined in sections 256B.055, 
162.16  256B.056, and 256B.06. 
162.17     (d) "Limitation of choice" means suspending freedom of 
162.18  choice while allowing eligible individuals to choose among the 
162.19  demonstration providers.  
162.20     (e) This paragraph supersedes paragraph (c) as long as the 
162.21  Minnesota health care reform waiver remains in effect.  When the 
162.22  waiver expires, this paragraph expires and the commissioner of 
162.23  human services shall publish a notice in the State Register and 
162.24  notify the revisor of statutes.  "Eligible individuals" means 
162.25  those persons eligible for medical assistance benefits as 
162.26  defined in sections 256B.055, 256B.056, and 256B.06.  
162.27  Notwithstanding sections 256B.055, 256B.056, and 256B.06, an 
162.28  individual who becomes ineligible for the program because of 
162.29  failure to submit income reports or recertification forms in a 
162.30  timely manner, shall remain enrolled in the prepaid health plan 
162.31  and shall remain eligible to receive medical assistance coverage 
162.32  through the last day of the month following the month in which 
162.33  the enrollee became ineligible for the medical assistance 
162.34  program. 
162.35     Sec. 49.  Minnesota Statutes 1996, section 256B.69, 
162.36  subdivision 3a, is amended to read: 
163.1      Subd. 3a.  [COUNTY AUTHORITY.] (a) The commissioner, when 
163.2   implementing the general assistance medical care, or medical 
163.3   assistance prepayment program within a county, must include the 
163.4   county board in the process of development, approval, and 
163.5   issuance of the request for proposals to provide services to 
163.6   eligible individuals within the proposed county.  County boards 
163.7   must be given reasonable opportunity to make recommendations 
163.8   regarding the development, issuance, review of responses, and 
163.9   changes needed in the request for proposals.  The commissioner 
163.10  must provide county boards the opportunity to review each 
163.11  proposal based on the identification of community needs under 
163.12  chapters 145A and 256E and county advocacy activities.  If a 
163.13  county board finds that a proposal does not address certain 
163.14  community needs, the county board and commissioner shall 
163.15  continue efforts for improving the proposal and network prior to 
163.16  the approval of the contract.  The county board shall make 
163.17  recommendations regarding the approval of local networks and 
163.18  their operations to ensure adequate availability and access to 
163.19  covered services.  The provider or health plan must respond 
163.20  directly to county advocates and the state prepaid medical 
163.21  assistance ombudsperson regarding service delivery and must be 
163.22  accountable to the state regarding contracts with medical 
163.23  assistance and general assistance medical care funds.  The 
163.24  county board may recommend a maximum number of participating 
163.25  health plans after considering the size of the enrolling 
163.26  population; ensuring adequate access and capacity; considering 
163.27  the client and county administrative complexity; and considering 
163.28  the need to promote the viability of locally developed health 
163.29  plans.  The county board or a single entity representing a group 
163.30  of county boards and the commissioner shall mutually select 
163.31  health plans for participation at the time of initial 
163.32  implementation of the prepaid medical assistance program in that 
163.33  county or group of counties and at the time of contract renewal. 
163.34  The commissioner shall also seek input for contract requirements 
163.35  from the county or single entity representing a group of county 
163.36  boards at each contract renewal and incorporate those 
164.1   recommendations into the contract negotiation process.  The 
164.2   commissioner, in conjunction with the county board, shall 
164.3   actively seek to develop a mutually agreeable timetable prior to 
164.4   the development of the request for proposal, but counties must 
164.5   agree to initial enrollment beginning on or before January 1, 
164.6   1999, in either the prepaid medical assistance and general 
164.7   assistance medical care programs or county-based purchasing 
164.8   under section 256B.692.  At least 90 days before enrollment in 
164.9   the medical assistance and general assistance medical care 
164.10  prepaid programs begins in a county in which the prepaid 
164.11  programs have not been established, the commissioner shall 
164.12  provide a report to the chairs of senate and house committees 
164.13  having jurisdiction over state health care programs which 
164.14  verifies that the commissioner complied with the requirements 
164.15  for county involvement that are specified in this subdivision. 
164.16     (b) The commissioner shall seek a federal waiver to allow a 
164.17  fee-for-service plan option to MinnesotaCare enrollees.  The 
164.18  commissioner shall develop an increase of the premium fees 
164.19  required under section 256.9356 up to 20 percent of the premium 
164.20  fees for the enrollees who elect the fee-for-service option.  
164.21  Prior to implementation, the commissioner shall submit this fee 
164.22  schedule to the chair and ranking minority member of the senate 
164.23  health care committee, the senate health care and family 
164.24  services funding division, the house of representatives health 
164.25  and human services committee, and the house of representatives 
164.26  health and human services finance division. 
164.27     (c) At the option of the county board, the board may 
164.28  develop contract requirements related to the achievement of 
164.29  local public health goals to meet the health needs of medical 
164.30  assistance and general assistance medical care enrollees.  These 
164.31  requirements must be reasonably related to the performance of 
164.32  health plan functions and within the scope of the medical 
164.33  assistance and general assistance medical care benefit sets.  If 
164.34  the county board and the commissioner mutually agree to such 
164.35  requirements, the department shall include such requirements in 
164.36  all health plan contracts governing the prepaid medical 
165.1   assistance and general assistance medical care programs in that 
165.2   county at initial implementation of the program in that county 
165.3   and at the time of contract renewal.  The county board may 
165.4   participate in the enforcement of the contract provisions 
165.5   related to local public health goals. 
165.6      (d) For counties in which prepaid medical assistance and 
165.7   general assistance medical care programs have not been 
165.8   established, the commissioner shall not implement those programs 
165.9   if a county board submits acceptable and timely preliminary and 
165.10  final proposals under section 256B.692, until county-based 
165.11  purchasing is no longer operational in that county.  For 
165.12  counties in which prepaid medical assistance and general 
165.13  assistance medical care programs are in existence on or after 
165.14  September 1, 1997, the commissioner must terminate contracts 
165.15  with health plans according to section 256B.692, subdivision 5, 
165.16  if the county board submits and the commissioner accepts 
165.17  preliminary and final proposals according to that subdivision.  
165.18  The commissioner is not required to terminate contracts that 
165.19  begin on or after September 1, 1997, according to section 
165.20  256B.692 until two years have elapsed from the date of initial 
165.21  enrollment. 
165.22     (e) In the event that a county board or a single entity 
165.23  representing a group of county boards and the commissioner 
165.24  cannot reach agreement regarding:  (i) the selection of 
165.25  participating health plans in that county; (ii) contract 
165.26  requirements; or (iii) implementation and enforcement of county 
165.27  requirements including provisions regarding local public health 
165.28  goals, the commissioner shall resolve all disputes after taking 
165.29  into account the recommendations of a three-person mediation 
165.30  panel.  The panel shall be composed of one designee of the 
165.31  president of the association of Minnesota counties, one designee 
165.32  of the commissioner of human services, and one designee of the 
165.33  commissioner of health. 
165.34     (f) If a county which elects to implement county-based 
165.35  purchasing ceases to implement county-based purchasing, it is 
165.36  prohibited from assuming the responsibility of county-based 
166.1   purchasing for a period of five years from the date it 
166.2   discontinues purchasing. 
166.3      Sec. 50.  Minnesota Statutes 1996, section 256B.69, 
166.4   subdivision 5, is amended to read: 
166.5      Subd. 5.  [PROSPECTIVE PER CAPITA PAYMENT.] The 
166.6   commissioner shall establish the method and amount of payments 
166.7   for services.  The commissioner shall annually contract with 
166.8   demonstration providers to provide services consistent with 
166.9   these established methods and amounts for payment.  
166.10  Notwithstanding section 62D.02, subdivision 1, payments for 
166.11  services rendered as part of the project may be made to 
166.12  providers that are not licensed health maintenance organizations 
166.13  on a risk-based, prepaid capitation basis.  
166.14     If allowed by the commissioner, a demonstration provider 
166.15  may contract with an insurer, health care provider, nonprofit 
166.16  health service plan corporation, or the commissioner, to provide 
166.17  insurance or similar protection against the cost of care 
166.18  provided by the demonstration provider or to provide coverage 
166.19  against the risks incurred by demonstration providers under this 
166.20  section.  The recipients enrolled with a demonstration provider 
166.21  are a permissible group under group insurance laws and chapter 
166.22  62C, the Nonprofit Health Service Plan Corporations Act.  Under 
166.23  this type of contract, the insurer or corporation may make 
166.24  benefit payments to a demonstration provider for services 
166.25  rendered or to be rendered to a recipient.  Any insurer or 
166.26  nonprofit health service plan corporation licensed to do 
166.27  business in this state is authorized to provide this insurance 
166.28  or similar protection.  
166.29     Payments to providers participating in the project are 
166.30  exempt from the requirements of sections 256.966 and 256B.03, 
166.31  subdivision 2.  The commissioner shall complete development of 
166.32  capitation rates for payments before delivery of services under 
166.33  this section is begun.  For payments made during calendar year 
166.34  1990 and later years, the commissioner shall contract with an 
166.35  independent actuary to establish prepayment rates. 
166.36     By January 15, 1996, the commissioner shall report to the 
167.1   legislature on the methodology used to allocate to participating 
167.2   counties available administrative reimbursement for advocacy and 
167.3   enrollment costs.  The report shall reflect the commissioner's 
167.4   judgment as to the adequacy of the funds made available and of 
167.5   the methodology for equitable distribution of the funds.  The 
167.6   commissioner must involve participating counties in the 
167.7   development of the report. 
167.8      Sec. 51.  Minnesota Statutes 1996, section 256B.69, 
167.9   subdivision 5b, is amended to read: 
167.10     Subd. 5b.  [PROSPECTIVE REIMBURSEMENT RATES.] For prepaid 
167.11  medical assistance and general assistance medical care program 
167.12  contract rates set by the commissioner under subdivision 5 and 
167.13  effective on or after January 1, 1997, through December 31, 
167.14  1998, capitation rates for nonmetropolitan counties shall on a 
167.15  weighted average be no less than 85 88 percent of the capitation 
167.16  rates for metropolitan counties, excluding Hennepin county.  The 
167.17  commissioner shall make a pro rata adjustment in capitation 
167.18  rates paid to counties other than nonmetropolitan counties in 
167.19  order to make this provision budget neutral.  
167.20     Sec. 52.  Minnesota Statutes 1996, section 256B.69, is 
167.21  amended by adding a subdivision to read: 
167.22     Subd. 5c.  [MODIFICATION OF PAYMENT DATES EFFECTIVE JANUARY 
167.23  1, 2001.] Effective for services rendered on or after January 1, 
167.24  2001, capitation payments under this section and under section 
167.25  256D.03 shall be made no earlier than the first day after the 
167.26  month of service. 
167.27     Sec. 53.  Minnesota Statutes 1996, section 256B.69, is 
167.28  amended by adding a subdivision to read: 
167.29     Subd. 6a.  [NURSING HOME SERVICES.] (a) Notwithstanding 
167.30  Minnesota Rules, part 9500.1457, subpart 1, item B, nursing 
167.31  facility services as defined in section 256B.0625, subdivision 
167.32  2, which are provided in a nursing facility certified by the 
167.33  Minnesota department of health for services provided and 
167.34  eligible for payment under Medicaid, shall be covered under the 
167.35  prepaid medical assistance program for individuals who are not 
167.36  residing in a nursing facility at the time of enrollment in the 
168.1   prepaid medical assistance program.  Liability for coverage of 
168.2   nursing facility services by a participating health plan is 
168.3   limited to 365 days for any person enrolled under the prepaid 
168.4   medical assistance program. 
168.5      (b) For individuals enrolled in the Minnesota senior health 
168.6   options project authorized under subdivision 23, nursing 
168.7   facility services shall be covered according to the terms and 
168.8   conditions of the federal waiver governing that demonstration 
168.9   project. 
168.10     Sec. 54.  Minnesota Statutes 1996, section 256B.69, is 
168.11  amended by adding a subdivision to read: 
168.12     Subd. 6b.  [ELDERLY WAIVER SERVICES.] Notwithstanding 
168.13  Minnesota Rules, part 9500.1457, subpart 1, item C, elderly 
168.14  waiver services shall be covered under the prepaid medical 
168.15  assistance program for all individuals who are eligible 
168.16  according to section 256B.0915.  For individuals enrolled in the 
168.17  Minnesota senior health options project authorized under 
168.18  subdivision 23, elderly waiver services shall be covered 
168.19  according to the terms and conditions of the federal waiver 
168.20  governing that demonstration project.  
168.21     Sec. 55.  Minnesota Statutes 1996, section 256B.69, is 
168.22  amended by adding a subdivision to read: 
168.23     Subd. 24.  [ENROLLMENT EXEMPTION.] Persons eligible for 
168.24  services under section 256B.0915 who have income in excess of 
168.25  the level permitted under section 256B.056 without a spenddown 
168.26  but below the MSA equivalent rate as defined in section 256I.03, 
168.27  subdivision 5, plus the medical assistance personal needs 
168.28  allowance as defined in section 256B.35, subdivision 1, 
168.29  paragraph (a), shall be exempt from mandatory enrollment in the 
168.30  prepaid medical assistance program under this section unless 
168.31  otherwise directed by the legislature, except for those persons 
168.32  who were initially enrolled in the prepaid medical assistance 
168.33  program while residing in a nursing home or whose income changed 
168.34  after initial enrollment in the prepaid medical assistance 
168.35  program.  Nothing in this subdivision shall require persons who 
168.36  are required to enroll in the prepaid medical assistance program 
169.1   to disenroll from that program or from the Minnesota senior 
169.2   health options project after initial enrollment. 
169.3      Sec. 56.  [256B.692] [COUNTY-BASED PURCHASING.] 
169.4      Subdivision 1.  [IN GENERAL.] County boards or groups of 
169.5   county boards may elect to purchase or provide health care 
169.6   services on behalf of persons eligible for medical assistance 
169.7   and general assistance medical care who would otherwise be 
169.8   required to or may elect to participate in the prepaid medical 
169.9   assistance or prepaid general assistance medical care programs 
169.10  according to sections 256B.69 and 256D.03.  Counties that elect 
169.11  to purchase or provide health care under this section must 
169.12  provide all services included in prepaid managed care programs 
169.13  according to sections 256B.69, subdivisions 1 to 22, and 
169.14  256D.03.  County-based purchasing under this section is governed 
169.15  by section 256B.69, unless otherwise provided for under this 
169.16  section. 
169.17     Subd. 2.  [DUTIES OF THE COMMISSIONER OF HEALTH.] 
169.18  Notwithstanding chapters 62D and 62N, a county that elects to 
169.19  purchase medical assistance and general assistance medical care 
169.20  in return for a fixed sum without regard to the frequency or 
169.21  extent of services furnished to any particular enrollee is not 
169.22  required to obtain a certificate of authority under chapter 62D 
169.23  or 62N.  A county that elects to purchase medical assistance and 
169.24  general assistance medical care services under this section must 
169.25  satisfy the commissioner of health that the requirements of 
169.26  chapter 62D, applicable to health maintenance organizations, or 
169.27  chapter 62N, applicable to community integrated service 
169.28  networks, will be met.  A county must also assure the 
169.29  commissioner of health that the requirements of section 72A.201 
169.30  will be met.  All enforcement and rulemaking powers available 
169.31  under chapters 62D and 62N are hereby granted to the 
169.32  commissioner of health with respect to counties that purchase 
169.33  medical assistance and general assistance medical care services 
169.34  under this section. 
169.35     Subd. 3.  [REQUIREMENTS OF THE COUNTY BOARD.] A county 
169.36  board that intends to purchase or provide health care under this 
170.1   section, which may include purchasing all or part of these 
170.2   services from health plans or individual providers on a 
170.3   fee-for-service basis, or providing these services directly, 
170.4   must demonstrate the ability to follow and agree to the 
170.5   following requirements: 
170.6      (1) purchase all covered services for a fixed payment from 
170.7   the state that does not exceed the estimated state and federal 
170.8   cost that would have occurred under the prepaid medical 
170.9   assistance and general assistance medical care programs; 
170.10     (2) ensure that covered services are accessible to all 
170.11  enrollees and that enrollees have a reasonable choice of 
170.12  providers, health plans, or networks when possible.  If the 
170.13  county is also a provider of service, the county board shall 
170.14  develop a process to ensure that providers employed by the 
170.15  county are not the sole referral source and are not the sole 
170.16  provider of health care services if other providers, which meet 
170.17  the same quality and cost requirements are available; 
170.18     (3) issue payments to participating vendors or networks in 
170.19  a timely manner; 
170.20     (4) establish a process to ensure and improve the quality 
170.21  of care provided; 
170.22     (5) provide appropriate quality and other required data in 
170.23  a format required by the state; 
170.24     (6) provide a system for advocacy, enrollee protection, and 
170.25  complaints and appeals that is independent of care providers or 
170.26  other risk bearers and complies with section 256B.69; 
170.27     (7) for counties within the seven-county metropolitan area, 
170.28  ensure that the implementation and operation of the Minnesota 
170.29  senior health options demonstration project, authorized under 
170.30  section 256B.69, subdivision 23, will not be impeded; 
170.31     (8) ensure that all recipients that are enrolled in the 
170.32  prepaid medical assistance or general assistance medical care 
170.33  program will be transferred to county-based purchasing without 
170.34  utilizing the department's fee-for-service claims payment 
170.35  system; 
170.36     (9) ensure that all recipients who are required to 
171.1   participate in county-based purchasing are given sufficient 
171.2   information prior to enrollment in order to make informed 
171.3   decisions; and 
171.4      (10) ensure that the state and the medical assistance and 
171.5   general assistance medical care recipients will be held harmless 
171.6   for the payment of obligations incurred by the county if the 
171.7   county, or a health plan providing services on behalf of the 
171.8   county, or a provider participating in county-based purchasing 
171.9   becomes insolvent, and the state has made the payments due to 
171.10  the county under this section. 
171.11     Subd. 4.  [PAYMENTS TO COUNTIES.] The commissioner shall 
171.12  pay counties that are purchasing or providing health care under 
171.13  this section a per capita payment for all enrolled recipients.  
171.14  Payments shall not exceed payments that otherwise would have 
171.15  been paid to health plans under medical assistance and general 
171.16  assistance medical care for that county or region.  This payment 
171.17  is in addition to any administrative allocation to counties for 
171.18  education, enrollment, and advocacy.  The state of Minnesota and 
171.19  the United States Department of Health and Human Services are 
171.20  not liable for any costs incurred by a county that exceed the 
171.21  payments to the county made under this subdivision.  A county 
171.22  whose costs exceed the payments made by the state, or any 
171.23  affected enrollees or creditors of that county, shall have no 
171.24  rights under chapter 61B or section 62D.181.  A county may 
171.25  assign risk for the cost of care to a third party. 
171.26     Subd. 5.  [COUNTY PROPOSALS.] (a) On or before September 1, 
171.27  1997, a county board that wishes to purchase or provide health 
171.28  care under this section must submit a preliminary proposal that 
171.29  substantially demonstrates the county's ability to meet all the 
171.30  requirements of this section in response to criteria for 
171.31  proposals issued by the department on or before July 1, 1997.  
171.32  Counties submitting preliminary proposals must establish a local 
171.33  planning process that involves input from medical assistance and 
171.34  general assistance medical care recipients, recipient advocates, 
171.35  providers and representatives of local school districts, labor, 
171.36  and tribal government to advise on the development of a final 
172.1   proposal and its implementation.  
172.2      (b) The county board must submit a final proposal on or 
172.3   before July 1, 1998, that demonstrates the ability to meet all 
172.4   the requirements of this section, including beginning enrollment 
172.5   on January 1, 1999.  
172.6      (c) After January 1, 1999, for a county in which the 
172.7   prepaid medical assistance program is in existence, the county 
172.8   board must submit a preliminary proposal at least 15 months 
172.9   prior to termination of health plan contracts in that county and 
172.10  a final proposal six months prior to the health plan contract 
172.11  termination date in order to begin enrollment after the 
172.12  termination.  Nothing in this section shall impede or delay 
172.13  implementation or continuation of the prepaid medical assistance 
172.14  and general assistance medical care programs in counties for 
172.15  which the board does not submit a proposal, or submits a 
172.16  proposal that is not in compliance with this section. 
172.17     (d) The commissioner is not required to terminate contracts 
172.18  for the prepaid medical assistance and prepaid general 
172.19  assistance medical care programs that begin on or after 
172.20  September 1, 1997, in a county for which a county board has 
172.21  submitted a proposal under this paragraph, until two years have 
172.22  elapsed from the date of initial enrollment in the prepaid 
172.23  medical assistance and prepaid general assistance medical care 
172.24  programs. 
172.25     Subd. 6.  [COMMISSIONER'S AUTHORITY.] The commissioner may: 
172.26     (1) reject any preliminary or final proposal that 
172.27  substantially fails to meet the requirements of this section, or 
172.28  that the commissioner determines would substantially impair the 
172.29  state's ability to purchase health care services in other areas 
172.30  of the state, or would substantially impair an enrollee's choice 
172.31  of care systems when reasonable choice is possible, or would 
172.32  substantially impair the implementation and operation of the 
172.33  Minnesota senior health options demonstration project authorized 
172.34  under section 256B.69, subdivision 23; and 
172.35     (2) assume operation of a county's purchasing of health 
172.36  care for enrollees in medical assistance and general assistance 
173.1   medical care in the event that the contract with the county is 
173.2   terminated. 
173.3      Subd. 7.  [DISPUTE RESOLUTION.] In the event the 
173.4   commissioner rejects a proposal under subdivision 6, the county 
173.5   board may request the recommendation of a three-person mediation 
173.6   panel.  The commissioner shall resolve all disputes after taking 
173.7   into account the recommendations of the mediation panel.  The 
173.8   panel shall be composed of one designee of the president of the 
173.9   association of Minnesota counties, one designee of the 
173.10  commissioner of human services, and one designee of the 
173.11  commissioner of health. 
173.12     Subd. 8.  [APPEALS.] A county that conducts county-based 
173.13  purchasing shall be considered to be a prepaid health plan for 
173.14  purposes of section 256.045. 
173.15     Subd. 9.  [FEDERAL APPROVAL.] The commissioner shall 
173.16  request any federal waivers and federal approval required to 
173.17  implement this section.  County-based purchasing shall not be 
173.18  implemented without obtaining all federal approval required to 
173.19  maintain federal matching funds in the medical assistance 
173.20  program. 
173.21     Subd. 10.  [REPORT TO THE LEGISLATURE.] The commissioner 
173.22  shall submit a report to the legislature by February 1, 1998, on 
173.23  the preliminary proposals submitted on or before September 1, 
173.24  1997. 
173.25     Sec. 57.  Minnesota Statutes 1996, section 256D.03, 
173.26  subdivision 3, is amended to read: 
173.27     Subd. 3.  [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 
173.28  (a) General assistance medical care may be paid for any person 
173.29  who is not eligible for medical assistance under chapter 256B, 
173.30  including eligibility for medical assistance based on a 
173.31  spenddown of excess income according to section 256B.056, 
173.32  subdivision 5, and: 
173.33     (1) who is receiving assistance under section 256D.05, or 
173.34  who is having a payment made on the person's behalf under 
173.35  sections 256I.01 to 256I.06; or 
173.36     (2)(i) who is a resident of Minnesota; and whose equity in 
174.1   assets is not in excess of $1,000 per assistance unit.  No asset 
174.2   test shall be applied to children and their parents living in 
174.3   the same household.  Exempt assets, the reduction of excess 
174.4   assets, and the waiver of excess assets must conform to the 
174.5   medical assistance program in chapter 256B, with the following 
174.6   exception:  the maximum amount of undistributed funds in a trust 
174.7   that could be distributed to or on behalf of the beneficiary by 
174.8   the trustee, assuming the full exercise of the trustee's 
174.9   discretion under the terms of the trust, must be applied toward 
174.10  the asset maximum; and 
174.11     (ii) who has countable income not in excess of the 
174.12  assistance standards established in section 256B.056, 
174.13  subdivision 4, or whose excess income is spent down pursuant to 
174.14  section 256B.056, subdivision 5, using a six-month budget 
174.15  period, except that a one-month budget period must be used for 
174.16  recipients residing in a long-term care facility.  The method 
174.17  for calculating earned income disregards and deductions for a 
174.18  person who resides with a dependent child under age 21 shall be 
174.19  as specified in section 256.74, subdivision 1 follow section 
174.20  256B.056, subdivision 1a.  However, if a disregard of $30 and 
174.21  one-third of the remainder described in section 256.74, 
174.22  subdivision 1, clause (4), has been applied to the wage earner's 
174.23  income, the disregard shall not be applied again until the wage 
174.24  earner's income has not been considered in an eligibility 
174.25  determination for general assistance, general assistance medical 
174.26  care, medical assistance, or aid to families with dependent 
174.27  children, or MFIP-S for 12 consecutive months.  The earned 
174.28  income and work expense deductions for a person who does not 
174.29  reside with a dependent child under age 21 shall be the same as 
174.30  the method used to determine eligibility for a person under 
174.31  section 256D.06, subdivision 1, except the disregard of the 
174.32  first $50 of earned income is not allowed; or 
174.33     (3) who would be eligible for medical assistance except 
174.34  that the person resides in a facility that is determined by the 
174.35  commissioner or the federal health care financing administration 
174.36  to be an institution for mental diseases. 
175.1      (b) Eligibility is available for the month of application, 
175.2   and for three months prior to application if the person was 
175.3   eligible in those prior months.  A redetermination of 
175.4   eligibility must occur every 12 months.  
175.5      (c) General assistance medical care is not available for a 
175.6   person in a correctional facility unless the person is detained 
175.7   by law for less than one year in a county correctional or 
175.8   detention facility as a person accused or convicted of a crime, 
175.9   or admitted as an inpatient to a hospital on a criminal hold 
175.10  order, and the person is a recipient of general assistance 
175.11  medical care at the time the person is detained by law or 
175.12  admitted on a criminal hold order and as long as the person 
175.13  continues to meet other eligibility requirements of this 
175.14  subdivision.  
175.15     (d) General assistance medical care is not available for 
175.16  applicants or recipients who do not cooperate with the county 
175.17  agency to meet the requirements of medical assistance. 
175.18     (e) In determining the amount of assets of an individual, 
175.19  there shall be included any asset or interest in an asset, 
175.20  including an asset excluded under paragraph (a), that was given 
175.21  away, sold, or disposed of for less than fair market value 
175.22  within the 60 months preceding application for general 
175.23  assistance medical care or during the period of eligibility.  
175.24  Any transfer described in this paragraph shall be presumed to 
175.25  have been for the purpose of establishing eligibility for 
175.26  general assistance medical care, unless the individual furnishes 
175.27  convincing evidence to establish that the transaction was 
175.28  exclusively for another purpose.  For purposes of this 
175.29  paragraph, the value of the asset or interest shall be the fair 
175.30  market value at the time it was given away, sold, or disposed 
175.31  of, less the amount of compensation received.  For any 
175.32  uncompensated transfer, the number of months of ineligibility, 
175.33  including partial months, shall be calculated by dividing the 
175.34  uncompensated transfer amount by the average monthly per person 
175.35  payment made by the medical assistance program to skilled 
175.36  nursing facilities for the previous calendar year.  The 
176.1   individual shall remain ineligible until this fixed period has 
176.2   expired.  The period of ineligibility may exceed 30 months, and 
176.3   a reapplication for benefits after 30 months from the date of 
176.4   the transfer shall not result in eligibility unless and until 
176.5   the period of ineligibility has expired.  The period of 
176.6   ineligibility begins in the month the transfer was reported to 
176.7   the county agency, or if the transfer was not reported, the 
176.8   month in which the county agency discovered the transfer, 
176.9   whichever comes first.  For applicants, the period of 
176.10  ineligibility begins on the date of the first approved 
176.11  application. 
176.12     (f)(1) Beginning October 1, 1993, an undocumented alien or 
176.13  a nonimmigrant is ineligible for general assistance medical care 
176.14  other than emergency services.  For purposes of this 
176.15  subdivision, a nonimmigrant is an individual in one or more of 
176.16  the classes listed in United States Code, title 8, section 
176.17  1101(a)(15), and an undocumented alien is an individual who 
176.18  resides in the United States without the approval or 
176.19  acquiescence of the Immigration and Naturalization Service. 
176.20     (2) This subdivision does not apply to a child under age 
176.21  18, to a Cuban or Haitian entrant as defined in Public Law 
176.22  Number 96-422, section 501(e)(1) or (2)(a), or to an alien who 
176.23  is aged, blind, or disabled as defined in United States Code, 
176.24  title 42, section 1382c(a)(1). 
176.25     (3) For purposes of paragraph (f), "emergency services" has 
176.26  the meaning given in Code of Federal Regulations, title 42, 
176.27  section 440.255(b)(1), except that it also means services 
176.28  rendered because of suspected or actual pesticide poisoning. 
176.29     Sec. 58.  Minnesota Statutes 1996, section 256G.02, 
176.30  subdivision 6, is amended to read: 
176.31     Subd. 6.  [EXCLUDED TIME.] "Excluded time" means: 
176.32     (a) any period an applicant spends in a hospital, 
176.33  sanitarium, nursing home, shelter other than an emergency 
176.34  shelter, halfway house, foster home, semi-independent living 
176.35  domicile or services program, residential facility offering 
176.36  care, board and lodging facility or other institution for the 
177.1   hospitalization or care of human beings, as defined in section 
177.2   144.50, 144A.01, or 245A.02, subdivision 14; maternity home, 
177.3   battered women's shelter, or correctional facility; or any 
177.4   facility based on an emergency hold under sections 253B.05, 
177.5   subdivisions 1 and 2, and 253B.07, subdivision 6; 
177.6      (b) any period an applicant spends on a placement basis in 
177.7   a training and habilitation program, including a rehabilitation 
177.8   facility or work or employment program as defined in section 
177.9   268A.01; or receiving personal care assistant services pursuant 
177.10  to section 256B.0627, subdivision 4; semi-independent living 
177.11  services provided under section 252.275, and Minnesota Rules, 
177.12  parts 9525.0500 to 9525.0660; day training and habilitation 
177.13  programs, and community-based services and assisted living 
177.14  services; and 
177.15     (c) any placement for a person with an indeterminate 
177.16  commitment, including independent living.  
177.17     Sec. 59.  Minnesota Statutes 1996, section 256G.05, 
177.18  subdivision 2, is amended to read: 
177.19     Subd. 2.  [NON-MINNESOTA RESIDENTS.] State residence is not 
177.20  required for receiving emergency assistance in the general 
177.21  assistance, general assistance medical care, and Minnesota 
177.22  supplemental aid programs only program.  The receipt of 
177.23  emergency assistance must not be used as a factor in determining 
177.24  county or state residence.  Non-Minnesota residents are not 
177.25  eligible for emergency general assistance medical care, except 
177.26  emergency hospital services, and professional services incident 
177.27  to the hospital services, for the treatment of acute trauma 
177.28  resulting from an accident occurring in Minnesota.  To be 
177.29  eligible under this subdivision a non-Minnesota resident must 
177.30  verify that they are not eligible for coverage under any other 
177.31  health care program, including coverage from a program in their 
177.32  state of residence. 
177.33     Sec. 60.  Minnesota Statutes 1996, section 256I.05, 
177.34  subdivision 1a, is amended to read: 
177.35     Subd. 1a.  [SUPPLEMENTARY RATES.] (a) In addition to the 
177.36  room and board rate specified in subdivision 1, the county 
178.1   agency may negotiate a payment not to exceed $426.37 for other 
178.2   services necessary to provide room and board provided by the 
178.3   group residence if the residence is licensed by or registered by 
178.4   the department of health, or licensed by the department of human 
178.5   services to provide services in addition to room and board, and 
178.6   if the provider of services is not also concurrently receiving 
178.7   funding for services for a recipient under a home and 
178.8   community-based waiver under title XIX of the Social Security 
178.9   Act; or funding from the medical assistance program under 
178.10  section 256B.0627, subdivision 4, for personal care services for 
178.11  residents in the setting; or residing in a setting which 
178.12  receives funding under Minnesota Rules, parts 9535.2000 to 
178.13  9535.3000.  If funding is available for other necessary services 
178.14  through a home and community-based waiver, or personal care 
178.15  services under section 256B.0627, subdivision 4, then the GRH 
178.16  rate is limited to the rate set in subdivision 1.  The 
178.17  registration and licensure requirement does not apply to 
178.18  establishments which are exempt from state licensure because 
178.19  they are located on Indian reservations and for which the tribe 
178.20  has prescribed health and safety requirements.  Service payments 
178.21  under this section may be prohibited under rules to prevent the 
178.22  supplanting of federal funds with state funds.  The commissioner 
178.23  shall pursue the feasibility of obtaining the approval of the 
178.24  Secretary of Health and Human Services to provide home and 
178.25  community-based waiver services under title XIX of the Social 
178.26  Security Act for residents who are not eligible for an existing 
178.27  home and community-based waiver due to a primary diagnosis of 
178.28  mental illness or chemical dependency and shall apply for a 
178.29  waiver if it is determined to be cost-effective.  
178.30     (b) The commissioner is authorized to make cost-neutral 
178.31  transfers from the GRH fund for beds under this section to other 
178.32  funding programs administered by the department after 
178.33  consultation with the county or counties in which the affected 
178.34  beds are located.  The commissioner may also make cost-neutral 
178.35  transfers from the GRH fund to county human service agencies for 
178.36  beds permanently removed from the GRH census under a plan 
179.1   submitted by the county agency and approved by the 
179.2   commissioner.  The commissioner shall report the amount of any 
179.3   transfers under this provision annually to the legislature. 
179.4      (c) The provisions of paragraph (b) do not apply to a 
179.5   facility that has its reimbursement rate established under 
179.6   section 256B.431, subdivision 4, paragraph (c). 
179.7      Sec. 61.  Minnesota Statutes 1996, section 469.155, 
179.8   subdivision 4, is amended to read: 
179.9      Subd. 4.  [REFINANCING HEALTH FACILITIES.] It may issue 
179.10  revenue bonds to pay, purchase, or discharge all or any part of 
179.11  the outstanding indebtedness of a contracting party engaged 
179.12  primarily in the operation of one or more nonprofit hospitals or 
179.13  nursing homes previously incurred in the acquisition or 
179.14  betterment of its existing hospital or nursing home facilities 
179.15  to the extent deemed necessary by the governing body of the 
179.16  municipality or redevelopment agency; this may include any 
179.17  unpaid interest on the indebtedness accrued or to accrue to the 
179.18  date on which the indebtedness is finally paid, and any premium 
179.19  the governing body of the municipality or redevelopment agency 
179.20  determines to be necessary to be paid to pay, purchase, or 
179.21  defease the outstanding indebtedness.  If revenue bonds are 
179.22  issued for this purpose, the refinancing and the existing 
179.23  properties of the contracting party shall be deemed to 
179.24  constitute a project under section 469.153, subdivision 2, 
179.25  clause (d).  Revenue bonds may not be issued pursuant to this 
179.26  subdivision unless the application for approval of the project 
179.27  pursuant to section 469.154 shows that a reduction in debt 
179.28  service charges is estimated to result and will be reflected in 
179.29  charges to patients and third-party payors.  Proceeds of revenue 
179.30  bonds issued pursuant to this subdivision may not be used for 
179.31  any purpose inconsistent with the provisions of chapter 256B.  
179.32  Nothing in this subdivision prohibits the use of revenue bond 
179.33  proceeds to pay outstanding indebtedness of a contracting party 
179.34  to the extent permitted by law on March 28, 1978.  
179.35     Sec. 62.  Laws 1995, chapter 207, article 6, section 115, 
179.36  is amended to read: 
180.1      Sec. 115.  [CONTINUATION OF PILOT PROJECTS.] 
180.2      The alternative care pilot projects authorized in Laws 
180.3   1993, First Special Session chapter 1, article 5, section 133, 
180.4   shall not expire on June 30, 1995, but shall continue until June 
180.5   30, 1997 2001, except that the three percent rate increases 
180.6   authorized in Laws 1993, First Special Session chapter 1, 
180.7   article 1, section 2, subdivision 4, and any subsequent rate 
180.8   increases shall be incorporated in average monthly cost 
180.9   effective July 1, 1995.  Beginning July 1, 1997, a county may 
180.10  spend up to ten percent of grant funds for needed client 
180.11  services that are not listed under Minnesota Statutes, section 
180.12  256B.0913, subdivision 5.  The commissioner shall allow 
180.13  additional counties at their option to implement the alternative 
180.14  care program within the parameters established in Laws 1993, 
180.15  First Special Session chapter 1, article 5, section 133.  If 
180.16  more than five counties exercise this option, the commissioner 
180.17  may require counties to make this change on a phased schedule if 
180.18  necessary in order to implement this provision within the limit 
180.19  of available resources.  For newly participating counties, the 
180.20  previous fiscal year shall be the base year. 
180.21     Sec. 63.  [NEED FOR NONSTANDARD WHEELCHAIRS.] 
180.22     The commissioner of human services, in consultation with 
180.23  the System of Technology to Achieve Results (STAR) program, 
180.24  shall present a report to the legislature by January 1, 1998, on 
180.25  the need for nonstandard wheelchairs for recipients residing in 
180.26  long-term care facilities.  A standard wheelchair is a manual 
180.27  wheelchair that is 16 to 20 inches wide and 18 inches deep with 
180.28  sling seat and back upholstery and a seat height of 19-1/2 
180.29  inches.  The report shall: 
180.30     (1) determine how many medical assistance recipients who 
180.31  reside in long-term care facilities cannot independently operate 
180.32  a standard wheelchair, but can safely and independently operate 
180.33  a power or other nonstandard wheelchair; 
180.34     (2) determine how many medical assistance recipients who 
180.35  reside in long-term care facilities require a wheelchair to be 
180.36  permanently modified by the addition of an item to accommodate 
181.1   their health needs; 
181.2      (3) determine how many medical assistance recipients who 
181.3   reside in long-term care facilities have seating or positioning 
181.4   needs which cannot be accommodated in a standard wheelchair; 
181.5      (4) determine the average cost of a nonstandard wheelchair; 
181.6      (5) determine the capability of long-term care facilities 
181.7   to provide nonstandard wheelchairs to meet medical assistance 
181.8   recipients needs; and 
181.9      (6) determine to what extent in the past four years the 
181.10  department of health has enforced regulations or rules relating 
181.11  to a long-term care facility's obligation to meet the mobility 
181.12  needs of residents. 
181.13     Sec. 64.  [STUDY OF ELDERLY WAIVER EXPANSION.] 
181.14     The commissioner of human services shall appoint a task 
181.15  force that includes representatives of counties, health plans, 
181.16  consumers, and legislators to study the impact of the expansion 
181.17  of the elderly waiver program under section 4 and to make 
181.18  recommendations for any changes in law necessary to facilitate 
181.19  an efficient and equitable relationship between the elderly 
181.20  waiver program and the Minnesota senior health options project.  
181.21  Based on the results of the task force study, the commissioner 
181.22  may seek any federal waivers needed to improve the relationship 
181.23  between the elderly waiver and the Minnesota senior health 
181.24  options project.  The commissioner shall report the results of 
181.25  the task force study to the legislature by January 15, 1998. 
181.26     Sec. 65.  [DEVELOPMENT OF APPEALS PROCESS.] 
181.27     The commissioner of human services, in consultation with 
181.28  elderly advocates and nursing facility representatives, shall 
181.29  develop and present to the legislature by January 15, 1998, an 
181.30  appeals process for persons affected by the changes in nursing 
181.31  facility level of care criteria scheduled to take effect on July 
181.32  1, 1998. 
181.33     Sec. 66.  [PERSONAL CARE SERVICES STUDY.] 
181.34     The commissioner of human services shall formulate 
181.35  recommendations on how to allow recipients of medical assistance 
181.36  who have been diagnosed with autism or other disabilities to use 
182.1   personal care services with more flexibility to meet individual 
182.2   client needs and preferences.  The commissioner may convene an 
182.3   advisory task force as authorized under Minnesota Statutes, 
182.4   section 15.014, subdivision 2, to assist in formulating these 
182.5   recommendations.  If a task force is convened, it shall be 
182.6   comprised of department of human services staff from the adult 
182.7   mental health, children's mental health, home- and 
182.8   community-based services, and developmental disabilities 
182.9   divisions, as well as consumers of personal care services, 
182.10  advocates, and providers of personal care attendant services.  A 
182.11  report with recommendations that outlines how consumer-centered 
182.12  planning and flexible use of funds can be implemented by July 1, 
182.13  1998, must be presented to the legislature by December 15, 1997. 
182.14     Sec. 67.  [INTEGRATION OF MINNESOTACARE WITH COUNTY-BASED 
182.15  PURCHASING.] 
182.16     The commissioner of human services shall develop a plan to 
182.17  integrate the MinnesotaCare program with county-based purchasing.
182.18  The plan must be designed to provide more choice to 
182.19  MinnesotaCare enrollees and to ensure that they have health care 
182.20  options in addition to county-based purchasing.  The plan must 
182.21  permit a county that elects to implement county-based purchasing 
182.22  to elect to purchase or provide health services on behalf of 
182.23  persons eligible for the MinnesotaCare program.  The 
182.24  commissioner shall submit the plan to the legislature by 
182.25  February 1, 1998. 
182.26     Sec. 68.  [OMBUDSPERSON SERVICES.] 
182.27     The commissioner of human services shall make 
182.28  recommendations to the legislature by January 15, 1998, on how 
182.29  the ombudsperson services and prepayment coordinator services 
182.30  established in Minnesota Statutes, section 256B.69, subdivisions 
182.31  20 and 21, could be reorganized to ensure that the ombudsman and 
182.32  county prepayment coordinator are independent of the department 
182.33  of human services, county authorities, health plans, or other 
182.34  health care providers.  The commissioner must seek input from 
182.35  recipients, advocates, and counties in reorganizing the 
182.36  ombudsman and county advocate system. 
183.1      Sec. 69.  [WAIVER REQUEST.] 
183.2      The commissioner of human services shall seek federal 
183.3   approval to amend the health care reform waiver to extend the 
183.4   postpartum period of medical assistance eligibility for chemical 
183.5   dependency after-care services. 
183.6      Sec. 70.  [WAIVER MODIFICATION.] 
183.7      The commissioner of human services shall seek federal 
183.8   approval for any modifications to the health care reform waiver 
183.9   necessary to implement the asset standard changes in sections 21 
183.10  to 23, and 28.  
183.11     Sec. 71.  [REPORT ON RULE 101 CHANGE.] 
183.12     The commissioner shall report to the legislature any 
183.13  increase in participation of dental services providers in the 
183.14  public assistance programs due to the change in the provider 
183.15  participation requirements under the 1997 amendments to 
183.16  Minnesota Statutes, section 256B.0644, by January 15, 1999. 
183.17     Sec. 72.  [SUNSET.] 
183.18     The 1997 amendments to Minnesota Statutes, section 
183.19  256B.0644, in section 33, expire on June 30, 1999. 
183.20     Sec. 73.  [REPEALER.] 
183.21     (a) Minnesota Statutes 1996, sections 256B.057, 
183.22  subdivisions 2a and 2b; and 469.154, subdivision 6, are repealed.
183.23     (b) Minnesota Statutes 1996, section 256B.0625, subdivision 
183.24  13b, is repealed the day following final enactment. 
183.25     (c) Minnesota Rules, part 9505.1000, is repealed. 
183.26     Sec. 74.  [EFFECTIVE DATE.] 
183.27     (a) Sections 12 to 15, 28, and 37 are effective the day 
183.28  following final enactment. 
183.29     (b) Sections 43, 53, and 54 are effective July 1, 1999. 
183.30                             ARTICLE 5 
183.31                        CHILDREN'S PROGRAMS 
183.32     Section 1.  Minnesota Statutes 1996, section 245.4882, 
183.33  subdivision 5, is amended to read: 
183.34     Subd. 5.  [SPECIALIZED RESIDENTIAL TREATMENT SERVICES.] The 
183.35  commissioner of human services shall continue efforts to further 
183.36  interagency collaboration to develop a comprehensive system of 
184.1   services, including family community support and specialized 
184.2   residential treatment services for children.  The services shall 
184.3   be designed for children with emotional disturbance who exhibit 
184.4   violent or destructive behavior and for whom local treatment 
184.5   services are not feasible due to the small number of children 
184.6   statewide who need the services and the specialized nature of 
184.7   the services required.  The services shall be located in 
184.8   community settings.  If no appropriate services are available in 
184.9   Minnesota or within the geographical area in which the residents 
184.10  of the county normally do business, the commissioner is 
184.11  responsible, effective July 1, 1997, for 50 percent of the 
184.12  nonfederal costs of out-of-state treatment of children for whom 
184.13  no appropriate resources are available in Minnesota.  Counties 
184.14  are eligible to receive enhanced state funding under this 
184.15  section only if they have established juvenile screening teams 
184.16  under section 260.151, subdivision 3, and if the out-of-state 
184.17  treatment has been approved by the commissioner.  By January 1, 
184.18  1995, the commissioners of human services and corrections shall 
184.19  jointly develop a plan, including a financing strategy, for 
184.20  increasing the in-state availability of treatment within a 
184.21  secure setting.  By July 1, 1994, the commissioner of human 
184.22  services shall also: 
184.23     (1) conduct a study and develop a plan to meet the needs of 
184.24  children with both a developmental disability and severe 
184.25  emotional disturbance; and 
184.26     (2) study the feasibility of expanding medical assistance 
184.27  coverage to include specialized residential treatment for the 
184.28  children described in this subdivision.  
184.29     Sec. 2.  Minnesota Statutes 1996, section 245.493, 
184.30  subdivision 1, is amended to read: 
184.31     Subdivision 1.  [REQUIREMENTS TO QUALIFY AS A LOCAL 
184.32  CHILDREN'S MENTAL HEALTH COLLABORATIVE.] In order to qualify as 
184.33  a local children's mental health collaborative and be eligible 
184.34  to receive start-up funds, the representatives of the local 
184.35  system of care, including entities provided under section 
184.36  245.4875, subdivision 6, and nongovernmental entities such as 
185.1   parents of children in the target population; parent and 
185.2   consumer organizations; community, civic, and religious 
185.3   organizations; private and nonprofit mental and physical health 
185.4   care providers; culturally specific organizations; local 
185.5   foundations; and businesses, or at a minimum one county, one 
185.6   school district or special education cooperative, and one mental 
185.7   health entity, and, by July 1, 1998, one juvenile justice or 
185.8   corrections entity, must agree to the following: 
185.9      (1) to establish a local children's mental health 
185.10  collaborative and develop an integrated service system; and 
185.11     (2) to commit resources to providing services through the 
185.12  local children's mental health collaborative. 
185.13     Sec. 3.  Minnesota Statutes 1996, section 245.493, is 
185.14  amended by adding a subdivision to read: 
185.15     Subd. 1a.  [DUTIES OF CERTAIN COORDINATING BODIES.] By 
185.16  mutual agreement of the collaborative and a coordinating body 
185.17  listed in this subdivision, a children's mental health 
185.18  collaborative or a collaborative established by the merger of a 
185.19  children's mental health collaborative and a family services 
185.20  collaborative under section 121.8355, may assume the duties of a 
185.21  community transition interagency committee established under 
185.22  section 120.17, subdivision 16; an interagency early 
185.23  intervention committee established under 120.1701, subdivision 
185.24  5; a local advisory council established under section 245.4875, 
185.25  subdivision 5; or a local coordinating council established under 
185.26  section 245.4875, subdivision 6. 
185.27     Sec. 4.  Minnesota Statutes 1996, section 256.01, 
185.28  subdivision 2, is amended to read: 
185.29     Subd. 2.  [SPECIFIC POWERS.] Subject to the provisions of 
185.30  section 241.021, subdivision 2, the commissioner of human 
185.31  services shall: 
185.32     (1) Administer and supervise all forms of public assistance 
185.33  provided for by state law and other welfare activities or 
185.34  services as are vested in the commissioner.  Administration and 
185.35  supervision of human services activities or services includes, 
185.36  but is not limited to, assuring timely and accurate distribution 
186.1   of benefits, completeness of service, and quality program 
186.2   management.  In addition to administering and supervising human 
186.3   services activities vested by law in the department, the 
186.4   commissioner shall have the authority to: 
186.5      (a) require county agency participation in training and 
186.6   technical assistance programs to promote compliance with 
186.7   statutes, rules, federal laws, regulations, and policies 
186.8   governing human services; 
186.9      (b) monitor, on an ongoing basis, the performance of county 
186.10  agencies in the operation and administration of human services, 
186.11  enforce compliance with statutes, rules, federal laws, 
186.12  regulations, and policies governing welfare services and promote 
186.13  excellence of administration and program operation; 
186.14     (c) develop a quality control program or other monitoring 
186.15  program to review county performance and accuracy of benefit 
186.16  determinations; 
186.17     (d) require county agencies to make an adjustment to the 
186.18  public assistance benefits issued to any individual consistent 
186.19  with federal law and regulation and state law and rule and to 
186.20  issue or recover benefits as appropriate; 
186.21     (e) delay or deny payment of all or part of the state and 
186.22  federal share of benefits and administrative reimbursement 
186.23  according to the procedures set forth in section 256.017; and 
186.24     (f) make contracts with and grants to public and private 
186.25  agencies and organizations, both profit and nonprofit, and 
186.26  individuals, using appropriated funds. 
186.27     (2) Inform county agencies, on a timely basis, of changes 
186.28  in statute, rule, federal law, regulation, and policy necessary 
186.29  to county agency administration of the programs. 
186.30     (3) Administer and supervise all child welfare activities; 
186.31  promote the enforcement of laws protecting handicapped, 
186.32  dependent, neglected and delinquent children, and children born 
186.33  to mothers who were not married to the children's fathers at the 
186.34  times of the conception nor at the births of the children; 
186.35  license and supervise child-caring and child-placing agencies 
186.36  and institutions; supervise the care of children in boarding and 
187.1   foster homes or in private institutions; and generally perform 
187.2   all functions relating to the field of child welfare now vested 
187.3   in the state board of control. 
187.4      (4) Administer and supervise all noninstitutional service 
187.5   to handicapped persons, including those who are visually 
187.6   impaired, hearing impaired, or physically impaired or otherwise 
187.7   handicapped.  The commissioner may provide and contract for the 
187.8   care and treatment of qualified indigent children in facilities 
187.9   other than those located and available at state hospitals when 
187.10  it is not feasible to provide the service in state hospitals. 
187.11     (5) Assist and actively cooperate with other departments, 
187.12  agencies and institutions, local, state, and federal, by 
187.13  performing services in conformity with the purposes of Laws 
187.14  1939, chapter 431. 
187.15     (6) Act as the agent of and cooperate with the federal 
187.16  government in matters of mutual concern relative to and in 
187.17  conformity with the provisions of Laws 1939, chapter 431, 
187.18  including the administration of any federal funds granted to the 
187.19  state to aid in the performance of any functions of the 
187.20  commissioner as specified in Laws 1939, chapter 431, and 
187.21  including the promulgation of rules making uniformly available 
187.22  medical care benefits to all recipients of public assistance, at 
187.23  such times as the federal government increases its participation 
187.24  in assistance expenditures for medical care to recipients of 
187.25  public assistance, the cost thereof to be borne in the same 
187.26  proportion as are grants of aid to said recipients. 
187.27     (7) Establish and maintain any administrative units 
187.28  reasonably necessary for the performance of administrative 
187.29  functions common to all divisions of the department. 
187.30     (8) Act as designated guardian of both the estate and the 
187.31  person of all the wards of the state of Minnesota, whether by 
187.32  operation of law or by an order of court, without any further 
187.33  act or proceeding whatever, except as to persons committed as 
187.34  mentally retarded.  For children under the guardianship of the 
187.35  commissioner whose interests would be best served by adoptive 
187.36  placement, the commissioner may contract with a licensed 
188.1   child-placing agency to provide adoption services.  A contract 
188.2   with a licensed child-placing agency must be designed to 
188.3   supplement existing county efforts and may not replace existing 
188.4   county programs, unless the replacement is agreed to by the 
188.5   county board and the appropriate exclusive bargaining 
188.6   representative or the commissioner has evidence that child 
188.7   placements of the county continue to be substantially below that 
188.8   of other counties. 
188.9      (9) Act as coordinating referral and informational center 
188.10  on requests for service for newly arrived immigrants coming to 
188.11  Minnesota. 
188.12     (10) The specific enumeration of powers and duties as 
188.13  hereinabove set forth shall in no way be construed to be a 
188.14  limitation upon the general transfer of powers herein contained. 
188.15     (11) Establish county, regional, or statewide schedules of 
188.16  maximum fees and charges which may be paid by county agencies 
188.17  for medical, dental, surgical, hospital, nursing and nursing 
188.18  home care and medicine and medical supplies under all programs 
188.19  of medical care provided by the state and for congregate living 
188.20  care under the income maintenance programs. 
188.21     (12) Have the authority to conduct and administer 
188.22  experimental projects to test methods and procedures of 
188.23  administering assistance and services to recipients or potential 
188.24  recipients of public welfare.  To carry out such experimental 
188.25  projects, it is further provided that the commissioner of human 
188.26  services is authorized to waive the enforcement of existing 
188.27  specific statutory program requirements, rules, and standards in 
188.28  one or more counties.  The order establishing the waiver shall 
188.29  provide alternative methods and procedures of administration, 
188.30  shall not be in conflict with the basic purposes, coverage, or 
188.31  benefits provided by law, and in no event shall the duration of 
188.32  a project exceed four years.  It is further provided that no 
188.33  order establishing an experimental project as authorized by the 
188.34  provisions of this section shall become effective until the 
188.35  following conditions have been met: 
188.36     (a) The proposed comprehensive plan, including estimated 
189.1   project costs and the proposed order establishing the waiver, 
189.2   shall be filed with the secretary of the senate and chief clerk 
189.3   of the house of representatives at least 60 days prior to its 
189.4   effective date. 
189.5      (b) The secretary of health, education, and welfare of the 
189.6   United States has agreed, for the same project, to waive state 
189.7   plan requirements relative to statewide uniformity. 
189.8      (c) A comprehensive plan, including estimated project 
189.9   costs, shall be approved by the legislative advisory commission 
189.10  and filed with the commissioner of administration.  
189.11     (13) In accordance with federal requirements, establish 
189.12  procedures to be followed by local welfare boards in creating 
189.13  citizen advisory committees, including procedures for selection 
189.14  of committee members. 
189.15     (14) Allocate federal fiscal disallowances or sanctions 
189.16  which are based on quality control error rates for the aid to 
189.17  families with dependent children, medical assistance, or food 
189.18  stamp program in the following manner:  
189.19     (a) One-half of the total amount of the disallowance shall 
189.20  be borne by the county boards responsible for administering the 
189.21  programs.  For the medical assistance and AFDC programs, 
189.22  disallowances shall be shared by each county board in the same 
189.23  proportion as that county's expenditures for the sanctioned 
189.24  program are to the total of all counties' expenditures for the 
189.25  AFDC and medical assistance programs.  For the food stamp 
189.26  program, sanctions shall be shared by each county board, with 50 
189.27  percent of the sanction being distributed to each county in the 
189.28  same proportion as that county's administrative costs for food 
189.29  stamps are to the total of all food stamp administrative costs 
189.30  for all counties, and 50 percent of the sanctions being 
189.31  distributed to each county in the same proportion as that 
189.32  county's value of food stamp benefits issued are to the total of 
189.33  all benefits issued for all counties.  Each county shall pay its 
189.34  share of the disallowance to the state of Minnesota.  When a 
189.35  county fails to pay the amount due hereunder, the commissioner 
189.36  may deduct the amount from reimbursement otherwise due the 
190.1   county, or the attorney general, upon the request of the 
190.2   commissioner, may institute civil action to recover the amount 
190.3   due. 
190.4      (b) Notwithstanding the provisions of paragraph (a), if the 
190.5   disallowance results from knowing noncompliance by one or more 
190.6   counties with a specific program instruction, and that knowing 
190.7   noncompliance is a matter of official county board record, the 
190.8   commissioner may require payment or recover from the county or 
190.9   counties, in the manner prescribed in paragraph (a), an amount 
190.10  equal to the portion of the total disallowance which resulted 
190.11  from the noncompliance, and may distribute the balance of the 
190.12  disallowance according to paragraph (a).  
190.13     (15) Develop and implement special projects that maximize 
190.14  reimbursements and result in the recovery of money to the 
190.15  state.  For the purpose of recovering state money, the 
190.16  commissioner may enter into contracts with third parties.  Any 
190.17  recoveries that result from projects or contracts entered into 
190.18  under this paragraph shall be deposited in the state treasury 
190.19  and credited to a special account until the balance in the 
190.20  account reaches $1,000,000.  When the balance in the account 
190.21  exceeds $1,000,000, the excess shall be transferred and credited 
190.22  to the general fund.  All money in the account is appropriated 
190.23  to the commissioner for the purposes of this paragraph. 
190.24     (16) Have the authority to make direct payments to 
190.25  facilities providing shelter to women and their children 
190.26  pursuant to section 256D.05, subdivision 3.  Upon the written 
190.27  request of a shelter facility that has been denied payments 
190.28  under section 256D.05, subdivision 3, the commissioner shall 
190.29  review all relevant evidence and make a determination within 30 
190.30  days of the request for review regarding issuance of direct 
190.31  payments to the shelter facility.  Failure to act within 30 days 
190.32  shall be considered a determination not to issue direct payments.
190.33     (17) Have the authority to establish and enforce the 
190.34  following county reporting requirements:  
190.35     (a) The commissioner shall establish fiscal and statistical 
190.36  reporting requirements necessary to account for the expenditure 
191.1   of funds allocated to counties for human services programs.  
191.2   When establishing financial and statistical reporting 
191.3   requirements, the commissioner shall evaluate all reports, in 
191.4   consultation with the counties, to determine if the reports can 
191.5   be simplified or the number of reports can be reduced. 
191.6      (b) The county board shall submit monthly or quarterly 
191.7   reports to the department as required by the commissioner.  
191.8   Monthly reports are due no later than 15 working days after the 
191.9   end of the month.  Quarterly reports are due no later than 30 
191.10  calendar days after the end of the quarter, unless the 
191.11  commissioner determines that the deadline must be shortened to 
191.12  20 calendar days to avoid jeopardizing compliance with federal 
191.13  deadlines or risking a loss of federal funding.  Only reports 
191.14  that are complete, legible, and in the required format shall be 
191.15  accepted by the commissioner.  
191.16     (c) If the required reports are not received by the 
191.17  deadlines established in clause (b), the commissioner may delay 
191.18  payments and withhold funds from the county board until the next 
191.19  reporting period.  When the report is needed to account for the 
191.20  use of federal funds and the late report results in a reduction 
191.21  in federal funding, the commissioner shall withhold from the 
191.22  county boards with late reports an amount equal to the reduction 
191.23  in federal funding until full federal funding is received.  
191.24     (d) A county board that submits reports that are late, 
191.25  illegible, incomplete, or not in the required format for two out 
191.26  of three consecutive reporting periods is considered 
191.27  noncompliant.  When a county board is found to be noncompliant, 
191.28  the commissioner shall notify the county board of the reason the 
191.29  county board is considered noncompliant and request that the 
191.30  county board develop a corrective action plan stating how the 
191.31  county board plans to correct the problem.  The corrective 
191.32  action plan must be submitted to the commissioner within 45 days 
191.33  after the date the county board received notice of noncompliance.
191.34     (e) The final deadline for fiscal reports or amendments to 
191.35  fiscal reports is one year after the date the report was 
191.36  originally due.  If the commissioner does not receive a report 
192.1   by the final deadline, the county board forfeits the funding 
192.2   associated with the report for that reporting period and the 
192.3   county board must repay any funds associated with the report 
192.4   received for that reporting period. 
192.5      (f) The commissioner may not delay payments, withhold 
192.6   funds, or require repayment under paragraph (c) or (e) if the 
192.7   county demonstrates that the commissioner failed to provide 
192.8   appropriate forms, guidelines, and technical assistance to 
192.9   enable the county to comply with the requirements.  If the 
192.10  county board disagrees with an action taken by the commissioner 
192.11  under paragraph (c) or (e), the county board may appeal the 
192.12  action according to sections 14.57 to 14.69. 
192.13     (g) Counties subject to withholding of funds under 
192.14  paragraph (c) or forfeiture or repayment of funds under 
192.15  paragraph (e) shall not reduce or withhold benefits or services 
192.16  to clients to cover costs incurred due to actions taken by the 
192.17  commissioner under paragraph (c) or (e). 
192.18     (18) Allocate federal fiscal disallowances or sanctions for 
192.19  audit exceptions when federal fiscal disallowances or sanctions 
192.20  are based on a statewide random sample for the foster care 
192.21  program under title IV-E of the Social Security Act, United 
192.22  States Code, title 42, in direct proportion to each county's 
192.23  title IV-E foster care maintenance claim for that period. 
192.24     Sec. 5.  Minnesota Statutes 1996, section 256.01, is 
192.25  amended by adding a subdivision to read: 
192.26     Subd. 14.  [CHILD WELFARE REFORM PILOTS.] The commissioner 
192.27  of human services shall encourage local reforms in the delivery 
192.28  of child welfare services and is authorized to approve local 
192.29  pilot programs which focus on reforming the child protection and 
192.30  child welfare systems in Minnesota.  Authority to approve pilots 
192.31  includes authority to waive existing state rules as needed to 
192.32  accomplish reform efforts.  Notwithstanding section 626.556, 
192.33  subdivision 10, 10b, or 10d, the commissioner may authorize 
192.34  programs to use alternative methods of investigating and 
192.35  assessing reports of child maltreatment, provided that the 
192.36  programs comply with the provisions of section 626.556 dealing 
193.1   with the rights of individuals who are subjects of reports or 
193.2   investigations, including notice and appeal rights and data 
193.3   practices requirements.  Pilot programs must be required to 
193.4   address responsibility for safety and protection of children, be 
193.5   time limited, and include evaluation of the pilot program. 
193.6      Sec. 6.  Minnesota Statutes 1996, section 256.045, 
193.7   subdivision 3, is amended to read: 
193.8      Subd. 3.  [STATE AGENCY HEARINGS.] (a) State agency 
193.9   hearings are available for the following:  (1) any person 
193.10  applying for, receiving or having received public assistance or 
193.11  a program of social services granted by the state agency or a 
193.12  county agency under sections 252.32, 256.031 to 256.036, and 
193.13  256.72 to 256.879, chapters 256B, 256D, 256E, 261, or the 
193.14  federal Food Stamp Act whose application for assistance is 
193.15  denied, not acted upon with reasonable promptness, or whose 
193.16  assistance is suspended, reduced, terminated, or claimed to have 
193.17  been incorrectly paid; (2) any patient or relative aggrieved by 
193.18  an order of the commissioner under section 252.27; (3) a party 
193.19  aggrieved by a ruling of a prepaid health plan; (4) any 
193.20  individual or facility determined by a lead agency to have 
193.21  maltreated a vulnerable adult under section 626.557 after they 
193.22  have exercised their right to administrative reconsideration 
193.23  under section 626.557; (5) any person whose claim for foster 
193.24  care payment pursuant to a placement of the child resulting from 
193.25  a child protection assessment under section 626.556 is denied or 
193.26  not acted upon with reasonable promptness, regardless of funding 
193.27  source; (6) any person to whom a right of appeal pursuant to 
193.28  this section is given by other provision of law; or (7) an 
193.29  applicant aggrieved by an adverse decision to an application for 
193.30  a hardship waiver under section 256B.15; or (8) an individual or 
193.31  facility determined to have maltreated a minor under section 
193.32  626.556, after the individual or facility has exercised the 
193.33  right to administrative reconsideration under section 626.556.  
193.34  The failure to exercise the right to an administrative 
193.35  reconsideration shall not be a bar to a hearing under this 
193.36  section if federal law provides an individual the right to a 
194.1   hearing to dispute a finding of maltreatment.  Individuals and 
194.2   organizations specified in this section may contest the 
194.3   specified action, decision, or final disposition before the 
194.4   state agency by submitting a written request for a hearing to 
194.5   the state agency within 30 days after receiving written notice 
194.6   of the action, decision, or final disposition, or within 90 days 
194.7   of such written notice if the applicant, recipient, patient, or 
194.8   relative shows good cause why the request was not submitted 
194.9   within the 30-day time limit. 
194.10     The hearing for an individual or facility under clause (4) 
194.11  or (8) is the only administrative appeal to the final lead 
194.12  agency disposition determination specifically, including a 
194.13  challenge to the accuracy and completeness of data under section 
194.14  13.04.  Hearings requested under clause (4) apply only to 
194.15  incidents of maltreatment that occur on or after October 1, 
194.16  1995.  Hearings requested by nursing assistants in nursing homes 
194.17  alleged to have maltreated a resident prior to October 1, 1995, 
194.18  shall be held as a contested case proceeding under the 
194.19  provisions of chapter 14.  Hearings requested under clause (8) 
194.20  apply only to incidents of maltreatment that occur on or after 
194.21  July 1, 1997.  A hearing for an individual or facility under 
194.22  clause (8) is only available when there is no juvenile court or 
194.23  adult criminal action pending.  If such action is filed in 
194.24  either court while an administrative review is pending, the 
194.25  administrative review must be suspended until the judicial 
194.26  actions are completed.  If the juvenile court action or criminal 
194.27  charge is dismissed or the criminal action overturned, the 
194.28  matter may be considered in an administrative hearing. 
194.29     For purposes of this section, bargaining unit grievance 
194.30  procedures are not an administrative appeal. 
194.31     The scope of hearings involving claims to foster care 
194.32  payments under clause (5) shall be limited to the issue of 
194.33  whether the county is legally responsible for a child's 
194.34  placement under court order or voluntary placement agreement 
194.35  and, if so, the correct amount of foster care payment to be made 
194.36  on the child's behalf and shall not include review of the 
195.1   propriety of the county's child protection determination or 
195.2   child placement decision. 
195.3      (b) Except for a prepaid health plan, A vendor of medical 
195.4   care as defined in section 256B.02, subdivision 7, or a vendor 
195.5   under contract with a county agency to provide social services 
195.6   under section 256E.08, subdivision 4, is not a party and may not 
195.7   request a hearing under this section, except if assisting a 
195.8   recipient as provided in subdivision 4. 
195.9      (c) An applicant or recipient is not entitled to receive 
195.10  social services beyond the services included in the amended 
195.11  community social services plan developed under section 256E.081, 
195.12  subdivision 3, if the county agency has met the requirements in 
195.13  section 256E.081. 
195.14     Sec. 7.  Minnesota Statutes 1996, section 256.045, 
195.15  subdivision 3b, is amended to read: 
195.16     Subd. 3b.  [STANDARD OF EVIDENCE FOR MALTREATMENT 
195.17  HEARINGS.] The state human services referee shall determine that 
195.18  maltreatment has occurred if a preponderance of evidence exists 
195.19  to support the final disposition under section sections 626.556 
195.20  and 626.557. 
195.21     The state human services referee shall recommend an order 
195.22  to the commissioner of health or human services, as applicable, 
195.23  who shall issue a final order.  The commissioner shall affirm, 
195.24  reverse, or modify the final disposition.  Any order of the 
195.25  commissioner issued in accordance with this subdivision is 
195.26  conclusive upon the parties unless appeal is taken in the manner 
195.27  provided in subdivision 7.  In any licensing appeal under 
195.28  chapter 245A and sections 144.50 to 144.58 and 144A.02 to 
195.29  144A.46, the commissioner's findings determination as to whether 
195.30  maltreatment occurred is conclusive. 
195.31     Sec. 8.  Minnesota Statutes 1996, section 256.045, 
195.32  subdivision 4, is amended to read: 
195.33     Subd. 4.  [CONDUCT OF HEARINGS.] (a) All hearings held 
195.34  pursuant to subdivision 3, 3a, 3b, or 4a shall be conducted 
195.35  according to the provisions of the federal Social Security Act 
195.36  and the regulations implemented in accordance with that act to 
196.1   enable this state to qualify for federal grants-in-aid, and 
196.2   according to the rules and written policies of the commissioner 
196.3   of human services.  County agencies shall install equipment 
196.4   necessary to conduct telephone hearings.  A state human services 
196.5   referee may schedule a telephone conference hearing when the 
196.6   distance or time required to travel to the county agency offices 
196.7   will cause a delay in the issuance of an order, or to promote 
196.8   efficiency, or at the mutual request of the parties.  Hearings 
196.9   may be conducted by telephone conferences unless the applicant, 
196.10  recipient, former recipient, person, or facility contesting 
196.11  maltreatment objects.  The hearing shall not be held earlier 
196.12  than five days after filing of the required notice with the 
196.13  county or state agency.  The state human services referee shall 
196.14  notify all interested persons of the time, date, and location of 
196.15  the hearing at least five days before the date of the hearing.  
196.16  Interested persons may be represented by legal counsel or other 
196.17  representative of their choice, including a provider of therapy 
196.18  services, at the hearing and may appear personally, testify and 
196.19  offer evidence, and examine and cross-examine witnesses.  The 
196.20  applicant, recipient, former recipient, person, or facility 
196.21  contesting maltreatment shall have the opportunity to examine 
196.22  the contents of the case file and all documents and records to 
196.23  be used by the county or state agency at the hearing at a 
196.24  reasonable time before the date of the hearing and during the 
196.25  hearing.  In cases alleging discharge for maltreatment, In 
196.26  hearings under subdivision 3, paragraph (a), clauses (4) and 
196.27  (8), either party may subpoena the private data relating to the 
196.28  investigation memorandum prepared by the lead agency under 
196.29  section 626.556 or 626.557 that is not otherwise accessible 
196.30  under section 13.04, provided the name identity of the reporter 
196.31  may not be disclosed. 
196.32     (b) The private data obtained by subpoena in a hearing 
196.33  under subdivision 3, paragraph (a), clause (4) or (8), must be 
196.34  subject to a protective order which prohibits its disclosure for 
196.35  any other purpose outside the hearing provided for in this 
196.36  section without prior order of the district court.  Disclosure 
197.1   without court order is punishable by a sentence of not more than 
197.2   90 days imprisonment or a fine of not more than $700, or both.  
197.3   These restrictions on the use of private data do not prohibit 
197.4   access to the data under section 13.03, subdivision 6.  Except 
197.5   for appeals under subdivision 3, paragraph (a), clauses (4), 
197.6   (5), and (8), upon request, the county agency shall provide 
197.7   reimbursement for transportation, child care, photocopying, 
197.8   medical assessment, witness fee, and other necessary and 
197.9   reasonable costs incurred by the applicant, recipient, or former 
197.10  recipient in connection with the appeal, except in appeals 
197.11  brought under subdivision 3b.  All evidence, except that 
197.12  privileged by law, commonly accepted by reasonable people in the 
197.13  conduct of their affairs as having probative value with respect 
197.14  to the issues shall be submitted at the hearing and such hearing 
197.15  shall not be "a contested case" within the meaning of section 
197.16  14.02, subdivision 3.  The agency must present its evidence 
197.17  prior to or at the hearing, and may not submit evidence after 
197.18  the hearing except by agreement of the parties at the hearing, 
197.19  provided the recipient petitioner has the opportunity to respond.
197.20     Sec. 9.  Minnesota Statutes 1996, section 256.045, 
197.21  subdivision 5, is amended to read: 
197.22     Subd. 5.  [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] 
197.23  This subdivision does not apply to appeals under subdivision 
197.24  3b.  A state human services referee shall conduct a hearing on 
197.25  the appeal and shall recommend an order to the commissioner of 
197.26  human services.  The recommended order must be based on all 
197.27  relevant evidence and must not be limited to a review of the 
197.28  propriety of the state or county agency's action.  A referee may 
197.29  take official notice of adjudicative facts.  The commissioner of 
197.30  human services may accept the recommended order of a state human 
197.31  services referee and issue the order to the county agency and 
197.32  the applicant, recipient, former recipient, or prepaid health 
197.33  plan.  The commissioner on refusing to accept the recommended 
197.34  order of the state human services referee, shall notify the 
197.35  county petitioner, the agency and the applicant, recipient, 
197.36  former recipient, or prepaid health plan of that fact and shall 
198.1   state reasons therefor and shall allow each party ten days' time 
198.2   to submit additional written argument on the matter.  After the 
198.3   expiration of the ten-day period, the commissioner shall issue 
198.4   an order on the matter to the county petitioner, the agency and 
198.5   the applicant, recipient, former recipient, or prepaid health 
198.6   plan. 
198.7      A party aggrieved by an order of the commissioner may 
198.8   appeal under subdivision 7, or request reconsideration by the 
198.9   commissioner within 30 days after the date the commissioner 
198.10  issues the order.  The commissioner may reconsider an order upon 
198.11  request of any party or on the commissioner's own motion.  A 
198.12  request for reconsideration does not stay implementation of the 
198.13  commissioner's order.  Upon reconsideration, the commissioner 
198.14  may issue an amended order or an order affirming the original 
198.15  order. 
198.16     Any order of the commissioner issued under this subdivision 
198.17  shall be conclusive upon the parties unless appeal is taken in 
198.18  the manner provided by subdivision 7.  Any order of the 
198.19  commissioner is binding on the parties and must be implemented 
198.20  by the state agency or, a county agency, or a prepaid health 
198.21  plan according to subdivision 3a, until the order is reversed by 
198.22  the district court, or unless the commissioner or a district 
198.23  court orders monthly assistance or aid or services paid or 
198.24  provided under subdivision 10. 
198.25     Except for a prepaid health plan, A vendor of medical care 
198.26  as defined in section 256B.02, subdivision 7, or a vendor under 
198.27  contract with a county agency to provide social services under 
198.28  section 256E.08, subdivision 4, is not a party and may not 
198.29  request a hearing or seek judicial review of an order issued 
198.30  under this section, unless assisting a recipient as provided in 
198.31  subdivision 4.  A prepaid health plan is a party to an appeal 
198.32  under subdivision 3a, but cannot seek judicial review of an 
198.33  order issued under this section. 
198.34     Sec. 10.  Minnesota Statutes 1996, section 256.045, 
198.35  subdivision 8, is amended to read: 
198.36     Subd. 8.  [HEARING.] Any party may obtain a hearing at a 
199.1   special term of the district court by serving a written notice 
199.2   of the time and place of the hearing at least ten days prior to 
199.3   the date of the hearing.  Except for appeals under subdivision 
199.4   3b, The court may consider the matter in or out of chambers, and 
199.5   shall take no new or additional evidence unless it determines 
199.6   that such evidence is necessary for a more equitable disposition 
199.7   of the appeal. 
199.8      Sec. 11.  Minnesota Statutes 1996, section 256.82, is 
199.9   amended by adding a subdivision to read: 
199.10     Subd. 5.  [DIFFICULTY OF CARE ASSESSMENT PILOT 
199.11  PROJECT.] Notwithstanding any law to the contrary, the 
199.12  commissioner of human services shall conduct a two-year 
199.13  statewide pilot project beginning July 1, 1997, to conduct a 
199.14  difficulty of care assessment process which both assesses an 
199.15  individual child's current functioning and identifies needs in a 
199.16  variety of life situations.  The pilot project must take into 
199.17  consideration existing difficulty of care payments so that, to 
199.18  the extent possible, no child for whom a difficulty of care rate 
199.19  is currently established will be adversely affected.  The pilot 
199.20  project must include an evaluation and an interim report to the 
199.21  legislature by January 15, 1999. 
199.22     Sec. 12.  Minnesota Statutes 1996, section 256F.04, 
199.23  subdivision 1, is amended to read: 
199.24     Subdivision 1.  [FAMILY PRESERVATION FUND.] The 
199.25  commissioner shall establish a family preservation fund to 
199.26  assist counties in providing placement prevention and family 
199.27  reunification services.  This fund shall include a basic grant 
199.28  for family preservation services, a placement earnings grant 
199.29  under section 256.8711, subdivision 6b, paragraph (a), and a 
199.30  development grant under section 256.8711, subdivision 6a, to 
199.31  assist counties in developing and expanding their family 
199.32  preservation core services as defined in section 256F.03, 
199.33  subdivision 10.  Beginning with calendar year 1998, after each 
199.34  annual or quarterly calculation, these three component grants 
199.35  shall be added together and treated as a single family 
199.36  preservation grant. 
200.1      Sec. 13.  Minnesota Statutes 1996, section 256F.04, 
200.2   subdivision 2, is amended to read: 
200.3      Subd. 2.  [FORMS AND INSTRUCTIONS.] The commissioner shall 
200.4   provide necessary forms and instructions to the counties for 
200.5   their community social services plan, as required in section 
200.6   256E.09, that incorporate the information necessary to apply for 
200.7   a family preservation fund grant, and to exercise county options 
200.8   under section 256F.05, subdivisions 7, paragraph (a), or 
200.9   subdivision 8, paragraph (c).  
200.10     Sec. 14.  Minnesota Statutes 1996, section 256F.05, 
200.11  subdivision 2, is amended to read: 
200.12     Subd. 2.  [MONEY AVAILABLE FOR THE BASIC GRANT FAMILY 
200.13  PRESERVATION.] Money appropriated for family preservation under 
200.14  sections 256F.04 to 256F.07, together with an amount as 
200.15  determined by the commissioner of title IV-B funds distributed 
200.16  to Minnesota according to the Social Security Act, United States 
200.17  Code, title 42, chapter 7, subchapter IV, part B, section 621, 
200.18  must be distributed to counties on a calendar year basis 
200.19  according to the formula in subdivision 3. 
200.20     Sec. 15.  Minnesota Statutes 1996, section 256F.05, 
200.21  subdivision 3, is amended to read: 
200.22     Subd. 3.  [BASIC GRANT FORMULA.] (a) The amount of money 
200.23  allocated to counties under subdivision 2 shall first be 
200.24  allocated in amounts equal to each county's guaranteed floor 
200.25  according to paragraph (b), and second, any remaining available 
200.26  funds allocated as follows: 
200.27     (1) 90 50 percent of the funds shall be allocated based on 
200.28  the population of the county under age 19 years as compared to 
200.29  the state as a whole as determined by the most recent data from 
200.30  the state demographer's office; and 
200.31     (2) ten 20 percent of funds shall be allocated based on the 
200.32  county's percentage share of the unduplicated number of families 
200.33  who received family preservation services under section 256F.03, 
200.34  subdivision 5, paragraphs (a), (b), (c), and (e), in the most 
200.35  recent calendar year available as determined by the 
200.36  commissioner; 
201.1      (3) ten percent of the funds shall be allocated based on 
201.2   the county's percentage share of the unduplicated number of 
201.3   children in substitute care in the most recent calendar year 
201.4   available as determined by the commissioner; 
201.5      (4) ten percent of the funds shall be allocated based on 
201.6   the county's percentage share of the number of determined 
201.7   maltreatment reports in the most recent calendar year available 
201.8   as determined by the commissioner; 
201.9      (5) five percent of the funds shall be allocated based on 
201.10  the county's percentage share of the number of American Indian 
201.11  children under age 18 residing in the county in the most recent 
201.12  calendar year as determined by the commissioner; and 
201.13     (6) five percent of the funds shall be allocated based on 
201.14  the county's percentage share of the number of minority children 
201.15  of color receiving children's case management services as 
201.16  defined by the commissioner based on the most recent data as 
201.17  determined by the commissioner. 
201.18     (b) Each county's basic grant guaranteed floor shall be 
201.19  calculated as follows: 
201.20     (1) 90 percent of the county's allocation received in the 
201.21  preceding calendar year.  For calendar year 1996 only, the 
201.22  allocation received in the preceding calendar year shall be 
201.23  determined by the commissioner based on the funding previously 
201.24  distributed as separate grants under sections 256F.04 to 256F.07 
201.25  or $25,000, whichever is greater; and 
201.26     (2) when the amounts of funds available for allocation is 
201.27  less than the amount available in the previous year, each 
201.28  county's previous year allocation shall be reduced in proportion 
201.29  to the reduction in the statewide funding, for the purpose of 
201.30  establishing the guaranteed floor. 
201.31     (c) The commissioner shall regularly review the use of 
201.32  family preservation fund allocations by county.  The 
201.33  commissioner may reallocate unexpended or unencumbered money at 
201.34  any time among those counties that have expended or are 
201.35  projected to expend their full allocation. 
201.36     (d) For the period of July 1, 1997, to December 31, 1998, 
202.1   only, each county shall receive an 18-month allocation.  For the 
202.2   purposes of determining the guaranteed floor for this 18-month 
202.3   allocation, the allocation received in the preceding calendar 
202.4   year shall be determined by the commissioner based on the 
202.5   funding previously distributed separately under sections 
202.6   256.8711 and 256F.04. 
202.7      Sec. 16.  Minnesota Statutes 1996, section 256F.05, 
202.8   subdivision 4, is amended to read: 
202.9      Subd. 4.  [PAYMENTS.] The commissioner shall make grant 
202.10  payments to each county whose biennial community social services 
202.11  plan has been approved under section 256F.04, subdivision 2.  
202.12  The basic grant under subdivisions 2 and 3 and the development 
202.13  grant under section 256.8711, subdivision 6a, shall be paid to 
202.14  counties in four installments per year.  The commissioner may 
202.15  certify the payments for the first three months of a calendar 
202.16  year.  Subsequent payments shall be based on reported 
202.17  expenditures and may be adjusted for anticipated spending 
202.18  patterns.  The placement earnings grant under section 256.8711, 
202.19  subdivision 6b, paragraph (a), shall be based on earnings and 
202.20  coordinated with the other payments.  In calendar years 1996 and 
202.21  1997, the placement earnings grant and the development grant 
202.22  shall be distributed separately from the basic grant, except as 
202.23  provided in subdivision 7, paragraph (a).  Beginning with 
202.24  calendar year 1998, after each annual or quarterly calculation, 
202.25  these three component grants shall be added together into a 
202.26  single family preservation fund grant and treated as a single 
202.27  grant. 
202.28     Sec. 17.  Minnesota Statutes 1996, section 256F.05, 
202.29  subdivision 8, is amended to read: 
202.30     Subd. 8.  [USES OF FAMILY PRESERVATION FUND GRANTS.] For 
202.31  both basic grants and single family preservation fund grants:  
202.32  (a) A county which has not demonstrated that year that its 
202.33  family preservation core services are developed as provided in 
202.34  subdivision 1a, must use its family preservation fund grant 
202.35  exclusively for family preservation services defined in section 
202.36  256F.03, subdivision 5, paragraphs (a), (b), (c), and (e). 
203.1      (b) A county which has demonstrated that year that its 
203.2   family preservation core services are developed becomes eligible 
203.3   either to continue using its family preservation fund grant as 
203.4   provided in paragraph (a), or to exercise the expanded service 
203.5   option under paragraph (c). 
203.6      (c) The expanded service option permits an eligible county 
203.7   to use its family preservation fund grant for child welfare 
203.8   preventative preventive services as defined in section 256F.10, 
203.9   subdivision 7, paragraph (d).  For purposes of this section, 
203.10  child welfare preventive services are those services directed 
203.11  toward a specific child or family that further the goals of 
203.12  section 256F.01 and include assessments, family preservation 
203.13  services, service coordination, community-based treatment, 
203.14  crisis nursery services when the parents retain custody and 
203.15  there is no voluntary placement agreement with a child-placing 
203.16  agency, respite care except when it is provided under a medical 
203.17  assistance waiver, home-based services, and other related 
203.18  services.  For purposes of this section, child welfare 
203.19  preventive services shall not include shelter care or other 
203.20  placement services under the authority of the court or public 
203.21  agency to address an emergency.  To exercise this option, an 
203.22  eligible county must notify the commissioner in writing of its 
203.23  intention to do so no later than 30 days into the quarter during 
203.24  which it intends to begin or in its county plan, as provided in 
203.25  section 256F.04, subdivision 2.  Effective with the first day of 
203.26  that quarter, the county must maintain its base level of 
203.27  expenditures for child welfare preventative preventive services 
203.28  and use the family preservation fund to expand them.  The base 
203.29  level of expenditures for a county shall be that established 
203.30  under section 256F.10, subdivision 7.  For counties which have 
203.31  no such base established, a comparable base shall be established 
203.32  with the base year being the calendar year ending at least two 
203.33  calendar quarters before the first calendar quarter in which the 
203.34  county exercises its expanded service option.  The commissioner 
203.35  shall, at the request of the counties, reduce, suspend, or 
203.36  eliminate either or both of a county's obligations to continue 
204.1   the base level of expenditures and to expand child welfare 
204.2   preventative preventive services based on conditions described 
204.3   in section 256F.10, subdivision 7, paragraph (b) or (c) under 
204.4   extraordinary circumstances.  
204.5      (d) Each county's placement earnings and development grant 
204.6   shall be determined under section 256.8711, but after each 
204.7   annual or quarterly calculation, if added to that county's basic 
204.8   grant, the three component grants shall be treated as a single 
204.9   family preservation fund grant. 
204.10     Sec. 18.  Minnesota Statutes 1996, section 256F.06, 
204.11  subdivision 1, is amended to read: 
204.12     Subdivision 1.  [RESPONSIBILITIES.] A county board may, 
204.13  alone or in combination with other county boards, apply for a 
204.14  family preservation fund grant as provided in section 256F.04, 
204.15  subdivision 2.  Upon approval of the grant, the county board may 
204.16  contract for or directly provide family-based and other eligible 
204.17  services.  A county board may contract with or directly provide 
204.18  eligible services to children and families through a local 
204.19  collaborative. 
204.20     Sec. 19.  Minnesota Statutes 1996, section 256F.06, 
204.21  subdivision 2, is amended to read: 
204.22     Subd. 2.  [DEVELOPING FAMILY PRESERVATION CORE SERVICES.] A 
204.23  county board shall endeavor to develop and expand its family 
204.24  preservation core services.  When a county can demonstrate that 
204.25  its family preservation core services are developed as provided 
204.26  in section 256F.05, subdivision 1a, a county board becomes 
204.27  eligible to exercise the expanded service option under section 
204.28  256F.05, subdivision 8, paragraph (c).  For calendar years 1996 
204.29  and 1997, the county board also becomes eligible to request that 
204.30  its basic, placement earnings, and development grants be added 
204.31  into a single grant under section 256F.05, subdivision 7, 
204.32  paragraph (a). 
204.33     Sec. 20.  Minnesota Statutes 1996, section 256F.11, 
204.34  subdivision 2, is amended to read: 
204.35     Subd. 2.  [FUND DISTRIBUTION.] In distributing funds, the 
204.36  commissioner shall give priority consideration to agencies and 
205.1   organizations with experience in working with abused or 
205.2   neglected children and their families, and with children at high 
205.3   risk of abuse and neglect and their families, and serve 
205.4   communities which demonstrate the greatest need for these 
205.5   services.  Funds shall be distributed to crisis nurseries 
205.6   according to a formula developed by the commissioner in 
205.7   consultation with the Minnesota crisis nursery association.  
205.8   This formula shall include funding for all existing crisis 
205.9   nursery programs that meet program requirements as specified in 
205.10  paragraph (a), and consideration of factors reflecting the need 
205.11  for services in each service area, including, but not limited 
205.12  to, the number of children 18 years of age and under living in 
205.13  the service area, the percent of children 18 years of age and 
205.14  under living in poverty in the service area, and factors 
205.15  reflecting the cost of providing services, including, but not 
205.16  limited to, the number of days of service provided in the 
205.17  previous year.  At least 25 percent of available funds for state 
205.18  fiscal year 1998 shall be set aside to accomplish any of the 
205.19  following:  establish new crisis nursery programs; increase 
205.20  statewide availability of crisis nursery services; and enhance 
205.21  or expand services at existing crisis nursery programs. 
205.22     (a) The crisis nurseries must:  
205.23     (1) be available 24 hours a day, seven days a week; 
205.24     (2) provide services for children up to three days at any 
205.25  one time; 
205.26     (3) make referrals for parents to counseling services and 
205.27  other community resources to help alleviate the underlying cause 
205.28  of the precipitating stress or crisis; 
205.29     (4) provide services without a fee for a maximum of 30 days 
205.30  in any year; 
205.31     (5) provide services to children from birth to 12 years of 
205.32  age; 
205.33     (6) provide an initial assessment and intake interview 
205.34  conducted by a skilled professional who will identify the 
205.35  presenting problem and make an immediate referral to an 
205.36  appropriate agency or program to prevent maltreatment and 
206.1   out-of-home placement of children; 
206.2      (7) maintain the clients' confidentiality to the extent 
206.3   required by law, and also comply with statutory reporting 
206.4   requirements which may mandate a report to child protective 
206.5   services; 
206.6      (8) contain a volunteer component; 
206.7      (9) provide preservice training and ongoing training to 
206.8   providers and volunteers; 
206.9      (10) evaluate the services provided by documenting use of 
206.10  services, the result of family referrals made to community 
206.11  resources, and how the services reduced the risk of 
206.12  maltreatment; 
206.13     (11) provide age appropriate programming; 
206.14     (12) provide developmental assessments; 
206.15     (13) provide medical assessments as determined by using a 
206.16  risk screening tool; 
206.17     (14) meet United States Department of Agriculture 
206.18  regulations concerning meals and provide three meals a day and 
206.19  three snacks during a 24-hour period; and 
206.20     (15) provide appropriate sleep and nap arrangements for 
206.21  children.  
206.22     (b) The crisis nurseries are encouraged to provide:  
206.23     (1) on-site support groups for facility model programs, or 
206.24  agency sponsored parent support groups for volunteer family 
206.25  model programs; 
206.26     (2) parent education classes or programs that include 
206.27  parent-child interaction; and 
206.28     (3) opportunities for parents to volunteer, if appropriate, 
206.29  to assist with child care in a supervised setting in order to 
206.30  enhance their parenting skills and self-esteem, in addition to 
206.31  providing them the opportunity to give something back to the 
206.32  program.  
206.33     (c) Parents shall retain custody of their children during 
206.34  placement in a crisis facility.  
206.35     The crisis nurseries are encouraged to include one or more 
206.36  parents who have used the crisis nursery services on the 
207.1   program's multidisciplinary advisory board. 
207.2      Sec. 21.  [257.85] [RELATIVE CUSTODY ASSISTANCE.] 
207.3      Subdivision 1.  [CITATION.] This section may be cited as 
207.4   the "Relative Custody Assistance Act." 
207.5      Subd. 2.  [SCOPE.] The provisions of this section apply to 
207.6   those situations in which the legal and physical custody of a 
207.7   child is established with a relative according to section 
207.8   260.191, subdivision 3b, by a court order issued on or after 
207.9   July 1, 1997.  
207.10     Subd. 3.  [DEFINITIONS.] For purposes of this section, the 
207.11  terms defined in this subdivision have the meanings given them. 
207.12     (a) "AFDC or MFIP standard" means the monthly standard of 
207.13  need used to calculate assistance under the AFDC program, the 
207.14  transitional standard used to calculate assistance under the 
207.15  MFIP-S program, or, if neither of those is applicable, the 
207.16  analogous transitional standard used to calculate assistance 
207.17  under the MFIP or MFIP-R programs. 
207.18     (b) "Local agency" means the local social service agency 
207.19  with legal custody of a child prior to the transfer of permanent 
207.20  legal and physical custody to a relative. 
207.21     (c) "Permanent legal and physical custody" means permanent 
207.22  legal and physical custody ordered by a Minnesota juvenile court 
207.23  under section 260.191, subdivision 3b. 
207.24     (d) "Relative" means an individual, other than a parent, 
207.25  who is related to a child by blood, marriage, or adoption. 
207.26     (e) "Relative custodian" means a relative of a child for 
207.27  whom the relative has permanent legal and physical custody. 
207.28     (f) "Relative custody assistance agreement" means an 
207.29  agreement entered into between a local agency and the relative 
207.30  of a child who has been or will be awarded permanent legal and 
207.31  physical custody of the child. 
207.32     (g) "Relative custody assistance payment" means a monthly 
207.33  cash grant made to a relative custodian pursuant to a relative 
207.34  custody assistance agreement and in an amount calculated under 
207.35  subdivision 7. 
207.36     (h) "Remains in the physical custody of the relative 
208.1   custodian" means that the relative custodian is providing 
208.2   day-to-day care for the child and that the child lives with the 
208.3   relative custodian; absence from the relative custodian's home 
208.4   for a period of more than 120 days raises a presumption that the 
208.5   child no longer remains in the physical custody of the relative 
208.6   custodian. 
208.7      Subd. 4.  [DUTIES OF LOCAL AGENCY.] (a) When a local agency 
208.8   seeks a court order under section 260.191, subdivision 3b, to 
208.9   establish permanent legal and physical custody of a child with a 
208.10  relative, or if such an order is issued by the court, the local 
208.11  agency shall perform the duties in this subdivision. 
208.12     (b) As soon as possible after the local agency determines 
208.13  that it will seek to establish permanent legal and physical 
208.14  custody of the child with a relative or, if the agency did not 
208.15  seek to establish custody, as soon as possible after the 
208.16  issuance of the court order establishing custody, the local 
208.17  agency shall inform the relative about the relative custody 
208.18  assistance program, including eligibility criteria and payment 
208.19  levels.  Anytime prior to, but not later than seven days after, 
208.20  the date the court issues the order establishing permanent legal 
208.21  and physical custody of the child with a relative, the local 
208.22  agency shall determine whether the eligibility criteria in 
208.23  subdivision 6 are met to allow the relative to receive relative 
208.24  custody assistance.  Not later than seven days after determining 
208.25  whether the eligibility criteria are met, the local agency shall 
208.26  inform the relative custodian of its determination and of the 
208.27  process for appealing that determination under subdivision 9. 
208.28     (c) If the local agency determines that the relative 
208.29  custodian is eligible to receive relative custody assistance, 
208.30  the local agency shall prepare the relative custody assistance 
208.31  agreement and ensure that it meets the criteria of subdivision 6.
208.32     (d) The local agency shall make monthly payments to the 
208.33  relative as set forth in the relative custody assistance 
208.34  agreement.  On a quarterly basis and on a form to be provided by 
208.35  the commissioner, the local agency shall make claims for 
208.36  reimbursement from the commissioner for relative custody 
209.1   assistance payments made. 
209.2      (e) For a relative custody assistance agreement that is in 
209.3   place for longer than one year, and as long as the agreement 
209.4   remains in effect, the local agency shall send an annual 
209.5   affidavit form to the relative custodian of the eligible child 
209.6   within the month before the anniversary date of the agreement.  
209.7   The local agency shall monitor whether the annual affidavit is 
209.8   returned by the relative custodian within 30 days following the 
209.9   anniversary date of the agreement.  The local agency shall 
209.10  review the affidavit and any other information in its possession 
209.11  to ensure continuing eligibility for relative custody assistance 
209.12  and that the amount of payment made according to the agreement 
209.13  is correct. 
209.14     (f) When the local agency determines that a relative 
209.15  custody assistance agreement should be terminated or modified, 
209.16  it shall provide notice of the proposed termination or 
209.17  modification to the relative custodian at least ten days before 
209.18  the proposed action along with information about the process for 
209.19  appealing the proposed action. 
209.20     Subd. 5.  [RELATIVE CUSTODY ASSISTANCE AGREEMENT.] (a) A 
209.21  relative custody assistance agreement will not be effective, 
209.22  unless it is signed by the local agency and the relative 
209.23  custodian no later than 30 days after the date of the order 
209.24  establishing permanent legal and physical custody with the 
209.25  relative, except that a local agency may enter into a relative 
209.26  custody assistance agreement with a relative custodian more than 
209.27  30 days after the date of the order if it certifies that the 
209.28  delay in entering the agreement was through no fault of the 
209.29  relative custodian.  There must be a separate agreement for each 
209.30  child for whom the relative custodian is receiving relative 
209.31  custody assistance. 
209.32     (b) Regardless of when the relative custody assistance 
209.33  agreement is signed by the local agency and relative custodian, 
209.34  the effective date of the agreement shall be the first day of 
209.35  the month following the date of the order establishing permanent 
209.36  legal and physical custody or the date that the last party signs 
210.1   the agreement, whichever occurs later. 
210.2      (c) If MFIP-S is not the applicable program for a child at 
210.3   the time that a relative custody assistance agreement is entered 
210.4   on behalf of the child, when MFIP-S becomes the applicable 
210.5   program, if the relative custodian had been receiving custody 
210.6   assistance payments calculated based upon a different program, 
210.7   the amount of relative custody assistance payment under 
210.8   subdivision 7 shall be recalculated under the MFIP-S program. 
210.9      (d) The relative custody assistance agreement shall be in a 
210.10  form specified by the commissioner and shall include provisions 
210.11  relating to the following: 
210.12     (1) the responsibilities of all parties to the agreement; 
210.13     (2) the payment terms, including the financial 
210.14  circumstances of the relative custodian, the needs of the child, 
210.15  the amount and calculation of the relative custody assistance 
210.16  payments, and that the amount of the payments shall be 
210.17  reevaluated annually; 
210.18     (3) the effective date of the agreement, which shall also 
210.19  be the anniversary date for the purpose of submitting the annual 
210.20  affidavit under subdivision 8; 
210.21     (4) that failure to submit the affidavit as required by 
210.22  subdivision 8 will be grounds for terminating the agreement; 
210.23     (5) the agreement's expected duration, which shall not 
210.24  extend beyond the child's eighteenth birthday; 
210.25     (6) any specific known circumstances that could cause the 
210.26  agreement or payments to be modified, reduced, or terminated and 
210.27  the relative custodian's appeal rights under subdivision 9; 
210.28     (7) that the relative custodian must notify the local 
210.29  agency within 30 days of any of the following: 
210.30     (i) a change in the child's status; 
210.31     (ii) a change in the relationship between the relative 
210.32  custodian and the child; 
210.33     (iii) a change in composition or level of income of the 
210.34  relative custodian's family; 
210.35     (iv) a change in eligibility or receipt of benefits under 
210.36  AFDC, MFIP-S, or other assistance program; and 
211.1      (v) any other change that could affect eligibility for or 
211.2   amount of relative custody assistance; 
211.3      (8) that failure to provide notice of a change as required 
211.4   by clause (7) will be grounds for terminating the agreement; 
211.5      (9) that the amount of relative custody assistance is 
211.6   subject to the availability of state funds to reimburse the 
211.7   local agency making the payments; 
211.8      (10) that the relative custodian may choose to temporarily 
211.9   stop receiving payments under the agreement at any time by 
211.10  providing 30 days' notice to the local agency and may choose to 
211.11  begin receiving payments again by providing the same notice but 
211.12  any payments the relative custodian chooses not to receive are 
211.13  forfeit; and 
211.14     (11) that the local agency will continue to be responsible 
211.15  for making relative custody assistance payments under the 
211.16  agreement regardless of the relative custodian's place of 
211.17  residence. 
211.18     Subd. 6.  [ELIGIBILITY CRITERIA.] A local agency shall 
211.19  enter into a relative custody assistance agreement under 
211.20  subdivision 5 if it certifies that the following criteria are 
211.21  met: 
211.22     (1) the juvenile court has determined or is expected to 
211.23  determine that the child, under the former or current custody of 
211.24  the local agency, cannot return to the home of the child's 
211.25  parents; 
211.26     (2) the court, upon determining that it is in the child's 
211.27  best interests, has issued or is expected to issue an order 
211.28  transferring permanent legal and physical custody of the child 
211.29  to the relative; and 
211.30     (3) the child either: 
211.31     (i) is a member of a sibling group to be placed together; 
211.32  or 
211.33     (ii) has a physical, mental, emotional, or behavioral 
211.34  disability that will require financial support. 
211.35     When the local agency bases its certification that the 
211.36  criteria in clause (1) or (2) are met upon the expectation that 
212.1   the juvenile court will take a certain action, the relative 
212.2   custody assistance agreement does not become effective until and 
212.3   unless the court acts as expected. 
212.4      Subd. 7.  [AMOUNT OF RELATIVE CUSTODY ASSISTANCE 
212.5   PAYMENTS.] (a) The amount of a monthly relative custody 
212.6   assistance payment shall be determined according to the 
212.7   provisions of this paragraph. 
212.8      (1) The total maximum assistance rate is equal to the base 
212.9   assistance rate plus, if applicable, the supplemental assistance 
212.10  rate. 
212.11     (i) The base assistance rate is equal to the maximum amount 
212.12  that could be received as basic maintenance for a child of the 
212.13  same age under the adoption assistance program. 
212.14     (ii) The local agency shall determine whether the child has 
212.15  physical, mental, emotional, or behavioral disabilities that 
212.16  require care, supervision, or structure beyond that ordinarily 
212.17  provided in a family setting to children of the same age such 
212.18  that the child would be eligible for supplemental maintenance 
212.19  payments under the adoption assistance program if an adoption 
212.20  assistance agreement were entered on the child's behalf.  If the 
212.21  local agency determines that the child has such a disability, 
212.22  the supplemental assistance rate shall be the maximum amount of 
212.23  monthly supplemental maintenance payment that could be received 
212.24  on behalf of a child of the same age, disabilities, and 
212.25  circumstances under the adoption assistance program. 
212.26     (2) The net maximum assistance rate is equal to the total 
212.27  maximum assistance rate from clause (1) less the following 
212.28  offsets: 
212.29     (i) if the child is or will be part of an assistance unit 
212.30  receiving an AFDC, MFIP-S, or other MFIP grant, the portion of 
212.31  the AFDC or MFIP standard relating to the child; 
212.32     (ii) Supplemental Security Income payments received by or 
212.33  on behalf of the child; 
212.34     (iii) veteran's benefits received by or on behalf of the 
212.35  child; and 
212.36     (iv) any other income of the child, including child support 
213.1   payments made on behalf of the child. 
213.2      (3) The relative custody assistance payment to be made to 
213.3   the relative custodian shall be a percentage of the net maximum 
213.4   assistance rate calculated in clause (2) based upon the gross 
213.5   income of the relative custodian's family, including the child 
213.6   for whom the relative has permanent legal and physical custody.  
213.7   In no case shall the amount of the relative custody assistance 
213.8   payment exceed that which the child could qualify for under the 
213.9   adoption assistance program if an adoption assistance agreement 
213.10  were entered on the child's behalf.  The relative custody 
213.11  assistance payment shall be calculated as follows: 
213.12     (i) if the relative custodian's gross family income is less 
213.13  than or equal to 200 percent of federal poverty guidelines, the 
213.14  relative custody assistance payment shall be the full amount of 
213.15  the net maximum assistance rate; 
213.16     (ii) if the relative custodian's gross family income is 
213.17  greater than 200 percent and less than or equal to 225 percent 
213.18  of federal poverty guidelines, the relative custody assistance 
213.19  payment shall be 80 percent of the net maximum assistance rate; 
213.20     (iii) if the relative custodian's gross family income is 
213.21  greater than 225 percent and less than or equal to 250 percent 
213.22  of federal poverty guidelines, the relative custody assistance 
213.23  payment shall be 60 percent of the net maximum assistance rate; 
213.24     (iv) if the relative custodian's gross family income is 
213.25  greater than 250 percent and less than or equal to 275 percent 
213.26  of federal poverty guidelines, the relative custody assistance 
213.27  payment shall be 40 percent of the net maximum assistance rate; 
213.28     (v) if the relative custodian's gross family income is 
213.29  greater than 275 percent and less than or equal to 300 percent 
213.30  of federal poverty guidelines, the relative custody assistance 
213.31  payment shall be 20 percent of the net maximum assistance rate; 
213.32  or 
213.33     (vi) if the relative custodian's gross family income is 
213.34  greater than 300 percent of federal poverty guidelines, no 
213.35  relative custody assistance payment shall be made. 
213.36     (b) This paragraph specifies the provisions pertaining to 
214.1   the relationship between relative custody assistance and AFDC, 
214.2   MFIP-S, or other MFIP programs: 
214.3      (1) the relative custodian of a child for whom the relative 
214.4   is receiving relative custody assistance is expected to seek 
214.5   whatever assistance is available for the child through the AFDC, 
214.6   MFIP-S, or other MFIP programs.  If a relative custodian fails 
214.7   to apply for assistance through AFDC, MFIP-S, or other MFIP 
214.8   program for which the child is eligible, the child's portion of 
214.9   the AFDC or MFIP standard will be calculated as if application 
214.10  had been made and assistance received; 
214.11     (2) the portion of the AFDC or MFIP standard relating to 
214.12  each child for whom relative custody assistance is being 
214.13  received shall be calculated as follows: 
214.14     (i) determine the total AFDC or MFIP standard for the 
214.15  assistance unit; 
214.16     (ii) determine the amount that the AFDC or MFIP standard 
214.17  would have been if the assistance unit had not included the 
214.18  children for whom relative custody assistance is being received; 
214.19     (iii) subtract the amount determined in item (ii) from the 
214.20  amount determined in item (i); and 
214.21     (iv) divide the result in item (iii) by the number of 
214.22  children for whom relative custody assistance is being received 
214.23  that are part of the assistance unit; or 
214.24     (3) if a child for whom relative custody assistance is 
214.25  being received is not eligible for assistance through the AFDC, 
214.26  MFIP-S, or other MFIP programs, the portion of AFDC or MFIP 
214.27  standard relating to that child shall be equal to zero. 
214.28     Subd. 8.  [ANNUAL AFFIDAVIT.] When a relative custody 
214.29  assistance agreement remains in effect for more than one year, 
214.30  the local agency shall require the relative custodian to 
214.31  annually submit an affidavit in a form to be specified by the 
214.32  commissioner.  The affidavit must be submitted to the local 
214.33  agency each year no later than 30 days after the relative 
214.34  custody assistance agreement's anniversary date.  The affidavit 
214.35  shall document the following: 
214.36     (1) that the child remains in the physical custody of the 
215.1   relative custodian; 
215.2      (2) that there is a continuing need for the relative 
215.3   custody assistance payments due to the child's physical, mental, 
215.4   emotional, or behavioral needs; and 
215.5      (3) the current gross income of the relative custodian's 
215.6   family. 
215.7      The relative custody assistance agreement may be modified 
215.8   based on information or documentation presented to the local 
215.9   agency under this requirement and as required by annual 
215.10  adjustments to the federal poverty guidelines. 
215.11     Subd. 9.  [RIGHT OF APPEAL.] A relative custodian who 
215.12  enters into a relative custody assistance agreement with a local 
215.13  agency has the right to appeal to the commissioner according to 
215.14  section 256.045 when the local agency establishes, denies, 
215.15  terminates, or modifies the agreement.  Upon appeal, the 
215.16  commissioner may review only: 
215.17     (1) whether the local agency has met the legal requirements 
215.18  imposed by this chapter for establishing, denying, terminating, 
215.19  or modifying the agreement; 
215.20     (2) whether the amount of the relative custody assistance 
215.21  payment was correctly calculated under the method in subdivision 
215.22  7; 
215.23     (3) whether the local agency paid for correct time periods 
215.24  under the relative custody assistance agreement; 
215.25     (4) whether the child remains in the physical custody of 
215.26  the relative custodian; 
215.27     (5) whether the local agency correctly calculated the 
215.28  amount of the supplemental assistance rate based on a change in 
215.29  the child's physical, mental, emotional, or behavioral needs, 
215.30  the relative custodian's failure to document the continuing need 
215.31  for the supplemental assistance rate after the local agency has 
215.32  requested such documentation; and 
215.33     (6) whether the local agency correctly calculated or 
215.34  terminated the amount of relative custody assistance based on 
215.35  the relative custodian's failure to provide documentation of the 
215.36  gross income of the relative custodian's family after the local 
216.1   agency has requested such documentation. 
216.2      Subd. 10.  [CHILD'S COUNTY OF RESIDENCE.] For the purposes 
216.3   of the unitary residency act under chapter 256G, time spent by a 
216.4   child in the custody of a relative custodian receiving payments 
216.5   under this section is not excluded time.  A child is a resident 
216.6   of the county where the relative custodian is a resident. 
216.7      Subd. 11.  [FINANCIAL CONSIDERATIONS.] (a) Payment of 
216.8   relative custody assistance under a relative custody assistance 
216.9   agreement is subject to the availability of state funds and 
216.10  payments may be reduced or suspended on order of the 
216.11  commissioner if insufficient funds are available. 
216.12     (b) Upon receipt from a local agency of a claim for 
216.13  reimbursement, the commissioner shall reimburse the local agency 
216.14  in an amount equal to 100 percent of the relative custody 
216.15  assistance payments provided to relative custodians.  The local 
216.16  agency may not seek and the commissioner shall not provide 
216.17  reimbursement for the administrative costs associated with 
216.18  performing the duties described in subdivision 4. 
216.19     (c) For the purposes of determining eligibility or payment 
216.20  amounts under the AFDC, MFIP-S, and other MFIP programs, 
216.21  relative custody assistance payments shall be considered 
216.22  excluded income. 
216.23     Sec. 22.  Minnesota Statutes 1996, section 393.07, 
216.24  subdivision 2, is amended to read: 
216.25     Subd. 2.  [ADMINISTRATION OF PUBLIC WELFARE.] The local 
216.26  social services agency, subject to the supervision of the 
216.27  commissioner of human services, shall administer all forms of 
216.28  public welfare, both for children and adults, responsibility for 
216.29  which now or hereafter may be imposed on the commissioner of 
216.30  human services by law, including general assistance, aid to 
216.31  dependent children, county supplementation, if any, or state aid 
216.32  to recipients of supplemental security income for aged, blind 
216.33  and disabled, child welfare services, mental health services, 
216.34  and other public assistance or public welfare services, provided 
216.35  that the local social services agency shall not employ public 
216.36  health nursing or home health service personnel other than 
217.1   homemaker-home help aides, but shall contract for or purchase 
217.2   the necessary services from existing community agencies.  The 
217.3   duties of the local social services agency shall be performed in 
217.4   accordance with the standards and rules which may be promulgated 
217.5   by the commissioner of human services to achieve the purposes 
217.6   intended by law and in order to comply with the requirements of 
217.7   the federal Social Security Act in respect to public assistance 
217.8   and child welfare services, so that the state may qualify for 
217.9   grants-in-aid available under that act.  To avoid administrative 
217.10  penalties under section 256.017, the local social services 
217.11  agency must comply with (1) policies established by state law 
217.12  and (2) instructions from the commissioner relating (i) to 
217.13  public assistance program policies consistent with federal law 
217.14  and regulation and state law and rule and (ii) to local agency 
217.15  program operations.  The commissioner may enforce local social 
217.16  services agency compliance with the instructions, and may delay, 
217.17  withhold, or deny payment of all or part of the state and 
217.18  federal share of benefits and federal administrative 
217.19  reimbursement, according to the provisions under section 
217.20  256.017.  The local social services agency shall supervise wards 
217.21  of the commissioner and, when so designated, act as agent of the 
217.22  commissioner of human services in the placement of the 
217.23  commissioner's wards in adoptive homes or in other foster care 
217.24  facilities.  The local social services agency shall cooperate as 
217.25  needed when the commissioner contracts with a licensed child 
217.26  placement agency for adoption services for a child under the 
217.27  commissioner's guardianship.  The local social services agency 
217.28  may contract with a bank or other financial institution to 
217.29  provide services associated with the processing of public 
217.30  assistance checks and pay a service fee for these services, 
217.31  provided the fee charged does not exceed the fee charged to 
217.32  other customers of the institution for similar services. 
217.33     Sec. 23.  Minnesota Statutes 1996, section 466.01, 
217.34  subdivision 1, is amended to read: 
217.35     Subdivision 1.  [MUNICIPALITY.] For the purposes of 
217.36  sections 466.01 to 466.15, "municipality" means any city, 
218.1   whether organized under home rule charter or otherwise, any 
218.2   county, town, public authority, public corporation, nonprofit 
218.3   firefighting corporation that has associated with it a relief 
218.4   association as defined in section 424A.001, subdivision 4, 
218.5   special district, school district, however organized, county 
218.6   agricultural society organized pursuant to chapter 38, joint 
218.7   powers board or organization created under section 471.59 or 
218.8   other statute, public library, regional public library system, 
218.9   multicounty multitype library system, family services 
218.10  collaborative established under section 121.8355, children's 
218.11  mental health collaboratives established under sections 245.491 
218.12  to 245.496, or a collaborative established by the merger of a 
218.13  children's mental health collaborative and a family services 
218.14  collaborative, other political subdivision, or community action 
218.15  agency. 
218.16     Sec. 24.  Minnesota Statutes 1996, section 471.59, 
218.17  subdivision 11, is amended to read: 
218.18     Subd. 11.  [JOINT POWERS BOARD.] (a) Two or more 
218.19  governmental units, through action of their governing bodies, by 
218.20  adoption of a joint powers agreement that complies with the 
218.21  provisions of subdivisions 1 to 5, may establish a joint board 
218.22  to issue bonds or obligations under any law by which any of the 
218.23  governmental units establishing the joint board may 
218.24  independently issue bonds or obligations and may use the 
218.25  proceeds of the bonds or obligations to carry out the purposes 
218.26  of the law under which the bonds or obligations are issued.  A 
218.27  joint board established under this section may issue obligations 
218.28  and other forms of indebtedness only in accordance with express 
218.29  authority granted by the action of the governing bodies of the 
218.30  governmental units that established the joint board.  Except as 
218.31  provided in paragraph (b), the joint board established under 
218.32  this subdivision must be composed solely of members of the 
218.33  governing bodies of the governmental unit that established the 
218.34  joint board.  A joint board established under this subdivision 
218.35  may not pledge the full faith and credit or taxing power of any 
218.36  of the governmental units that established the joint board.  The 
219.1   obligations or other forms of indebtedness must be obligations 
219.2   of the joint board issued on behalf of the governmental units 
219.3   creating the joint board.  The obligations or other forms of 
219.4   indebtedness must be issued in the same manner and subject to 
219.5   the same conditions and limitations that would apply if the 
219.6   obligations were issued or indebtedness incurred by one of the 
219.7   governmental units that established the joint board, provided 
219.8   that any reference to a governmental unit in the statute, law, 
219.9   or charter provision authorizing the issuance of the bonds or 
219.10  the incurring of the indebtedness is considered a reference to 
219.11  the joint board. 
219.12     (b) Notwithstanding paragraph (a), one school district, one 
219.13  county, and one public health entity, through action of their 
219.14  governing bodies, may establish a joint board to establish and 
219.15  govern a family services collaborative under section 121.8355.  
219.16  The school district, county, and public health entity may 
219.17  include other governmental entities at their discretion.  The 
219.18  membership of a board established under this paragraph, in 
219.19  addition to members of the governing bodies of the participating 
219.20  governmental units, must include the representation required by 
219.21  section 121.8355, subdivision 1, paragraph (a), selected in 
219.22  accordance with section 121.8355, subdivision 1, paragraph (c). 
219.23     (c) Notwithstanding paragraph (a), counties, school 
219.24  districts, and mental health entities, through action of their 
219.25  governing bodies, may establish a joint board to establish and 
219.26  govern a children's mental health collaborative under sections 
219.27  245.491 to 245.496, or a collaborative established by the merger 
219.28  of a children's mental health collaborative and a family 
219.29  services collaborative under section 121.8355.  The county, 
219.30  school district, and mental health entities may include other 
219.31  entities at their discretion.  The membership of a board 
219.32  established under this paragraph, in addition to members of the 
219.33  governing bodies of the participating governmental units, must 
219.34  include the representation provided by section 245.493, 
219.35  subdivision 1. 
219.36     Sec. 25.  Minnesota Statutes 1996, section 626.556, 
220.1   subdivision 10b, is amended to read: 
220.2      Subd. 10b.  [DUTIES OF COMMISSIONER; NEGLECT OR ABUSE IN A 
220.3   FACILITY.] (a) The commissioner shall immediately investigate if 
220.4   the report alleges that: 
220.5      (1) a child who is in the care of a facility as defined in 
220.6   subdivision 2 is neglected, physically abused, or sexually 
220.7   abused by an individual in that facility, or has been so 
220.8   neglected or abused by an individual in that facility within the 
220.9   three years preceding the report; or 
220.10     (2) a child was neglected, physically abused, or sexually 
220.11  abused by an individual in a facility defined in subdivision 2, 
220.12  while in the care of that facility within the three years 
220.13  preceding the report.  
220.14     The commissioner shall arrange for the transmittal to the 
220.15  commissioner of reports received by local agencies and may 
220.16  delegate to a local welfare agency the duty to investigate 
220.17  reports.  In conducting an investigation under this section, the 
220.18  commissioner has the powers and duties specified for local 
220.19  welfare agencies under this section.  The commissioner or local 
220.20  welfare agency may interview any children who are or have been 
220.21  in the care of a facility under investigation and their parents, 
220.22  guardians, or legal custodians. 
220.23     (b) Prior to any interview, the commissioner or local 
220.24  welfare agency shall notify the parent, guardian, or legal 
220.25  custodian of a child who will be interviewed in the manner 
220.26  provided for in subdivision 10d, paragraph (a).  If reasonable 
220.27  efforts to reach the parent, guardian, or legal custodian of a 
220.28  child in an out-of-home placement have failed, the child may be 
220.29  interviewed if there is reason to believe the interview is 
220.30  necessary to protect the child or other children in the 
220.31  facility.  The commissioner or local agency must provide the 
220.32  information required in this subdivision to the parent, 
220.33  guardian, or legal custodian of a child interviewed without 
220.34  parental notification as soon as possible after the interview.  
220.35  When the investigation is completed, any parent, guardian, or 
220.36  legal custodian notified under this subdivision shall receive 
221.1   the written memorandum provided for in subdivision 10d, 
221.2   paragraph (c). 
221.3      (c) In conducting investigations under this subdivision the 
221.4   commissioner or local welfare agency shall obtain access to 
221.5   information consistent with subdivision 10, paragraphs (h), (i), 
221.6   and (j). 
221.7      (d) Except for foster care and family child care, the 
221.8   commissioner has the primary responsibility for the 
221.9   investigations and notifications required under subdivisions 10d 
221.10  and 10f for reports that allege maltreatment related to the care 
221.11  provided by or in facilities licensed by the commissioner.  The 
221.12  commissioner may request assistance from the local social 
221.13  service agency. 
221.14     Sec. 26.  Minnesota Statutes 1996, section 626.556, 
221.15  subdivision 10d, is amended to read: 
221.16     Subd. 10d.  [NOTIFICATION OF NEGLECT OR ABUSE IN A 
221.17  FACILITY.] (a) When a report is received that alleges neglect, 
221.18  physical abuse, or sexual abuse of a child while in the care of 
221.19  a facility required to be licensed pursuant to sections 245A.01 
221.20  to 245A.16 chapter 245A, the commissioner or local welfare 
221.21  agency investigating the report shall provide the following 
221.22  information to the parent, guardian, or legal custodian of a 
221.23  child alleged to have been neglected, physically abused, or 
221.24  sexually abused: the name of the facility; the fact that a 
221.25  report alleging neglect, physical abuse, or sexual abuse of a 
221.26  child in the facility has been received; the nature of the 
221.27  alleged neglect, physical abuse, or sexual abuse; that the 
221.28  agency is conducting an investigation; any protective or 
221.29  corrective measures being taken pending the outcome of the 
221.30  investigation; and that a written memorandum will be provided 
221.31  when the investigation is completed. 
221.32     (b) The commissioner or local welfare agency may also 
221.33  provide the information in paragraph (a) to the parent, 
221.34  guardian, or legal custodian of any other child in the facility 
221.35  if the investigative agency knows or has reason to believe the 
221.36  alleged neglect, physical abuse, or sexual abuse has occurred. 
222.1   In determining whether to exercise this authority, the 
222.2   commissioner or local welfare agency shall consider the 
222.3   seriousness of the alleged neglect, physical abuse, or sexual 
222.4   abuse; the number of children allegedly neglected, physically 
222.5   abused, or sexually abused; the number of alleged perpetrators; 
222.6   and the length of the investigation.  The facility shall be 
222.7   notified whenever this discretion is exercised. 
222.8      (c) When the commissioner or local welfare agency has 
222.9   completed its investigation, every parent, guardian, or legal 
222.10  custodian notified of the investigation by the commissioner or 
222.11  local welfare agency shall be provided with the following 
222.12  information in a written memorandum:  the name of the facility 
222.13  investigated; the nature of the alleged neglect, physical abuse, 
222.14  or sexual abuse; the investigator's name; a summary of the 
222.15  investigation findings; a statement whether maltreatment was 
222.16  found; and the protective or corrective measures that are being 
222.17  or will be taken.  The memorandum shall be written in a manner 
222.18  that protects the identity of the reporter and the child and 
222.19  shall not contain the name, or to the extent possible, reveal 
222.20  the identity of the alleged perpetrator or of those interviewed 
222.21  during the investigation.  The commissioner or local welfare 
222.22  agency shall also provide the written memorandum to the parent, 
222.23  guardian, or legal custodian of each child in the facility if 
222.24  maltreatment is determined to exist. 
222.25     Sec. 27.  Minnesota Statutes 1996, section 626.556, 
222.26  subdivision 10e, is amended to read: 
222.27     Subd. 10e.  [DETERMINATIONS.] Upon the conclusion of every 
222.28  assessment or investigation it conducts, the local welfare 
222.29  agency shall make two determinations:  first, whether 
222.30  maltreatment has occurred; and second, whether child protective 
222.31  services are needed.  When maltreatment is determined in an 
222.32  investigation involving a facility, the investigating agency 
222.33  shall also determine whether the facility or individual was 
222.34  responsible for the maltreatment using the mitigating factors in 
222.35  paragraph (d).  Determinations under this subdivision must be 
222.36  made based on a preponderance of the evidence. 
223.1      (a) For the purposes of this subdivision, "maltreatment" 
223.2   means any of the following acts or omissions committed by a 
223.3   person responsible for the child's care: 
223.4      (1) physical abuse as defined in subdivision 2, paragraph 
223.5   (d); 
223.6      (2) neglect as defined in subdivision 2, paragraph (c); 
223.7      (3) sexual abuse as defined in subdivision 2, paragraph 
223.8   (a); or 
223.9      (4) mental injury as defined in subdivision 2, paragraph 
223.10  (k). 
223.11     (b) For the purposes of this subdivision, a determination 
223.12  that child protective services are needed means that the local 
223.13  welfare agency has documented conditions during the assessment 
223.14  or investigation sufficient to cause a child protection worker, 
223.15  as defined in section 626.559, subdivision 1, to conclude that a 
223.16  child is at significant risk of maltreatment if protective 
223.17  intervention is not provided and that the individuals 
223.18  responsible for the child's care have not taken or are not 
223.19  likely to take actions to protect the child from maltreatment or 
223.20  risk of maltreatment. 
223.21     (c) This subdivision does not mean that maltreatment has 
223.22  occurred solely because the child's parent, guardian, or other 
223.23  person responsible for the child's care in good faith selects 
223.24  and depends upon spiritual means or prayer for treatment or care 
223.25  of disease or remedial care of the child, in lieu of medical 
223.26  care.  However, if lack of medical care may result in serious 
223.27  danger to the child's health, the local welfare agency may 
223.28  ensure that necessary medical services are provided to the child.
223.29     (d) When determining whether the facility or individual is 
223.30  the responsible party for determined maltreatment in a facility, 
223.31  the investigating agency shall consider at least the following 
223.32  mitigating factors: 
223.33     (1) whether the actions of the facility or the individual 
223.34  caregivers were according to, and followed the terms of, an 
223.35  erroneous physician order, prescription, individual care plan, 
223.36  or directive; however, this is not a mitigating factor when the 
224.1   facility or caregiver was responsible for the issuance of the 
224.2   erroneous order, prescription, individual care plan, or 
224.3   directive or knew or should have known of the errors and took no 
224.4   reasonable measures to correct the defect before administering 
224.5   care; 
224.6      (2) comparative responsibility between the facility, other 
224.7   caregivers, and requirements placed upon an employee, including 
224.8   the facility's compliance with related regulatory standards and 
224.9   the adequacy of facility policies and procedures, facility 
224.10  training, an individual's participation in the training, the 
224.11  caregiver's supervision, and facility staffing levels and the 
224.12  scope of the individual employee's authority and discretion; and 
224.13     (3) whether the facility or individual followed 
224.14  professional standards in exercising professional judgment. 
224.15     Sec. 28.  Minnesota Statutes 1996, section 626.556, 
224.16  subdivision 10f, is amended to read: 
224.17     Subd. 10f.  [NOTICE OF DETERMINATIONS.] Within ten working 
224.18  days of the conclusion of an assessment, the local welfare 
224.19  agency shall notify the parent or guardian of the child, the 
224.20  person determined to be maltreating the child, and if 
224.21  applicable, the director of the facility, of the determination 
224.22  and a summary of the specific reasons for the determination.  
224.23  The notice must also include a certification that the 
224.24  information collection procedures under subdivision 10, 
224.25  paragraphs (h), (i), and (j), were followed and a notice of the 
224.26  right of a data subject to obtain access to other private data 
224.27  on the subject collected, created, or maintained under this 
224.28  section.  In addition, the notice shall include the length of 
224.29  time that the records will be kept under subdivision 11c.  When 
224.30  there is no determination of either maltreatment or a need for 
224.31  services, the notice shall also include the alleged 
224.32  perpetrator's right to have the records destroyed.  The 
224.33  investigating agency shall notify the designee of the child who 
224.34  is the subject of the report, and any person or facility 
224.35  determined to have maltreated a child, of their appeal rights 
224.36  under this section. 
225.1      Sec. 29.  Minnesota Statutes 1996, section 626.556, is 
225.2   amended by adding a subdivision to read: 
225.3      Subd. 10i.  [ADMINISTRATIVE RECONSIDERATION OF THE FINAL 
225.4   DETERMINATION OF MALTREATMENT.] (a) An individual or facility 
225.5   that the commissioner or a local social service agency 
225.6   determines has maltreated a child, or the child's designee, 
225.7   regardless of the determination, who contests the investigating 
225.8   agency's final determination regarding maltreatment, may request 
225.9   the investigating agency to reconsider its final determination 
225.10  regarding maltreatment.  The request for reconsideration must be 
225.11  submitted in writing to the investigating agency within 15 
225.12  calendar days after receipt of notice of the final determination 
225.13  regarding maltreatment. 
225.14     (b) If the investigating agency denies the request or fails 
225.15  to act upon the request within 15 calendar days after receiving 
225.16  the request for reconsideration, the person or facility entitled 
225.17  to a fair hearing under section 256.045 may submit to the 
225.18  commissioner of human services a written request for a hearing 
225.19  under that section. 
225.20     (c) If, as a result of the reconsideration, the 
225.21  investigating agency changes the final determination of 
225.22  maltreatment, that agency shall notify the parties specified in 
225.23  subdivisions 10b, 10d, and 10f. 
225.24     Sec. 30.  Minnesota Statutes 1996, section 626.556, 
225.25  subdivision 11c, is amended to read: 
225.26     Subd. 11c.  [WELFARE, COURT SERVICES AGENCY, AND SCHOOL 
225.27  RECORDS MAINTAINED.] Notwithstanding sections 138.163 and 
225.28  138.17, records maintained or records derived from reports of 
225.29  abuse by local welfare agencies, court services agencies, or 
225.30  schools under this section shall be destroyed as provided in 
225.31  paragraphs (a) to (d) by the responsible authority. 
225.32     (a) If upon assessment or investigation there is no 
225.33  determination of maltreatment or the need for child protective 
225.34  services, the records may be maintained for a period of four 
225.35  years.  After the individual alleged to have maltreated a child 
225.36  is notified under subdivision 10f of the determinations at the 
226.1   conclusion of the assessment or investigation, upon that 
226.2   individual's request, records shall be destroyed within 30 
226.3   days or after the appeal rights under subdivision 10i have been 
226.4   concluded, whichever is later. 
226.5      (b) All records relating to reports which, upon assessment 
226.6   or investigation, indicate either maltreatment or a need for 
226.7   child protective services shall be maintained for at least ten 
226.8   years after the date of the final entry in the case record. 
226.9      (c) All records regarding a report of maltreatment, 
226.10  including any notification of intent to interview which was 
226.11  received by a school under subdivision 10, paragraph (d), shall 
226.12  be destroyed by the school when ordered to do so by the agency 
226.13  conducting the assessment or investigation.  The agency shall 
226.14  order the destruction of the notification when other records 
226.15  relating to the report under investigation or assessment are 
226.16  destroyed under this subdivision. 
226.17     (d) Private or confidential data released to a court 
226.18  services agency under subdivision 10h must be destroyed by the 
226.19  court services agency when ordered to do so by the local welfare 
226.20  agency that released the data.  The local welfare agency shall 
226.21  order destruction of the data when other records relating to the 
226.22  assessment or investigation are destroyed under this subdivision.
226.23     Sec. 31.  Minnesota Statutes 1996, section 626.558, 
226.24  subdivision 1, is amended to read: 
226.25     Subdivision 1.  [ESTABLISHMENT OF THE TEAM.] A county shall 
226.26  establish a multidisciplinary child protection team that may 
226.27  include, but not be limited to, the director of the local 
226.28  welfare agency or designees, the county attorney or designees, 
226.29  the county sheriff or designees, representatives of health and 
226.30  education, representatives of mental health or other appropriate 
226.31  human service or community-based agencies, and parent groups.  
226.32  As used in this section, a "community-based agency" may include, 
226.33  but is not limited to, schools, social service agencies, family 
226.34  service and mental health collaboratives, early childhood and 
226.35  family education programs, Head Start, or other agencies serving 
226.36  children and families. 
227.1      Sec. 32.  Minnesota Statutes 1996, section 626.558, 
227.2   subdivision 2, is amended to read: 
227.3      Subd. 2.  [DUTIES OF TEAM.] A multidisciplinary child 
227.4   protection team may provide public and professional education, 
227.5   develop resources for prevention, intervention, and treatment, 
227.6   and provide case consultation to the local welfare agency to 
227.7   better enable the agency to carry out its child protection 
227.8   functions under section 626.556 and the community social 
227.9   services act. or other interested community-based agencies.  The 
227.10  community-based agencies may request case consultation from the 
227.11  multidisciplinary child protection team regarding a child or 
227.12  family for whom the community-based agency is providing 
227.13  services.  As used in this section, "case consultation" means a 
227.14  case review process in which recommendations are made concerning 
227.15  services to be provided to the identified children and family.  
227.16  Case consultation may be performed by a committee or 
227.17  subcommittee of members representing human services, including 
227.18  mental health and chemical dependency; law enforcement, 
227.19  including probation and parole; the county attorney; health 
227.20  care; education; community-based agencies and other necessary 
227.21  agencies; and persons directly involved in an individual case as 
227.22  designated by other members performing case consultation. 
227.23     Sec. 33.  Minnesota Statutes 1996, section 626.559, 
227.24  subdivision 5, is amended to read: 
227.25     Subd. 5.  [TRAINING REVENUE.] The commissioner of human 
227.26  services shall add the following funds to the funds appropriated 
227.27  under section 626.5591, subdivision 2, to develop and support 
227.28  training: 
227.29     (a) The commissioner of human services shall submit claims 
227.30  for federal reimbursement earned through the activities and 
227.31  services supported through department of human services child 
227.32  protection or child welfare training funds.  Federal revenue 
227.33  earned must be used to improve and expand training services by 
227.34  the department.  The department expenditures eligible for 
227.35  federal reimbursement under this section must not be made from 
227.36  federal funds or funds used to match other federal funds. 
228.1      (b) Each year, the commissioner of human services shall 
228.2   withhold from funds distributed to each county under Minnesota 
228.3   Rules, parts 9550.0300 to 9550.0370, an amount equivalent to 1.5 
228.4   percent of each county's annual Title XX allocation under 
228.5   section 256E.07.  The commissioner must use these funds to 
228.6   ensure decentralization of training. 
228.7      (c) The federal revenue earned under this subdivision is 
228.8   available for these purposes until the funds are expended. 
228.9      Sec. 34.  [EVALUATION REPORT REQUIRED.] 
228.10     The commissioner shall report the results of the evaluation 
228.11  required under section 5 to the chairs of the house of 
228.12  representatives and senate health and human services policy 
228.13  committees by January 15, 1999. 
228.14     Sec. 35.  [UNIFORM CONTRIBUTION SCHEDULE FOR OUT-OF-HOME 
228.15  PLACEMENT; REPORT.] 
228.16     The commissioner of human services shall prepare 
228.17  recommendations and report to the 1998 legislature regarding a 
228.18  uniform relative contribution schedule to reimburse costs 
228.19  associated with out-of-home placement.  The commissioner shall 
228.20  use the child support guidelines in Minnesota Statutes, chapter 
228.21  518, as the basis for the uniform contribution schedule.  The 
228.22  recommendations and report are due December 1, 1997. 
228.23     Sec. 36.  [MALTREATMENT OF MINORS ADVISORY COMMITTEE.] 
228.24     The commissioner of human services, with the cooperation of 
228.25  the commissioners of health and children, families, and learning 
228.26  and the attorney general, shall establish an advisory committee 
228.27  to review the Maltreatment of Minors Act, Minnesota Statutes, 
228.28  section 626.556, to determine whether existing state policy and 
228.29  procedures for protecting children who are at risk of 
228.30  maltreatment in the home, school, or community are effective. 
228.31     The committee shall include consumers, advocacy and 
228.32  provider organizations, county practitioners and administrators, 
228.33  school districts, law enforcement agencies, communities of 
228.34  color, professional associations, labor organizations, office of 
228.35  the ombudsman for mental health and mental retardation, and the 
228.36  commissioners of health, human services, and children, families, 
229.1   and learning. 
229.2      In making recommendations, the advisory committee shall 
229.3   review all services and protections available under existing 
229.4   state and federal laws with the focus on eliminating duplication 
229.5   of effort among various local, state, and federal agencies and 
229.6   minimizing possible conflicts of interest by establishing a 
229.7   statewide process of coordination of responsibilities.  The 
229.8   advisory committee shall submit a report to the legislature by 
229.9   February 15, 1998, that includes a detailed plan with specific 
229.10  law, rule, or administrative procedure changes to implement the 
229.11  recommendations. 
229.12     Sec. 37.  [TRANSFER TO COMMISSIONER OF CHILDREN, FAMILIES, 
229.13  AND LEARNING; REVISOR INSTRUCTION.] 
229.14     Effective July 1, 1997, all duties and funding related to 
229.15  family visitation centers under Minnesota Statutes, section 
229.16  256F.09, are transferred to the commissioner of children, 
229.17  families, and learning.  In the next edition of Minnesota 
229.18  Statutes, the revisor of statutes shall renumber Minnesota 
229.19  Statutes, section 256F.09, in Minnesota Statutes, chapter 119A. 
229.20     Sec. 38.  [REPEALER.] 
229.21     Minnesota Statutes 1996, section 256F.05, subdivisions 5 
229.22  and 7, are repealed. 
229.23                             ARTICLE 6 
229.24                     CHILD SUPPORT ENFORCEMENT 
229.25     Section 1.  Minnesota Statutes 1996, section 13.46, 
229.26  subdivision 2, is amended to read: 
229.27     Subd. 2.  [GENERAL.] (a) Unless the data is summary data or 
229.28  a statute specifically provides a different classification, data 
229.29  on individuals collected, maintained, used, or disseminated by 
229.30  the welfare system is private data on individuals, and shall not 
229.31  be disclosed except:  
229.32     (1) pursuant to section 13.05; 
229.33     (2) pursuant to court order; 
229.34     (3) pursuant to a statute specifically authorizing access 
229.35  to the private data; 
229.36     (4) to an agent of the welfare system, including a law 
230.1   enforcement person, attorney, or investigator acting for it in 
230.2   the investigation or prosecution of a criminal or civil 
230.3   proceeding relating to the administration of a program; 
230.4      (5) to personnel of the welfare system who require the data 
230.5   to determine eligibility, amount of assistance, and the need to 
230.6   provide services of additional programs to the individual; 
230.7      (6) to administer federal funds or programs; 
230.8      (7) between personnel of the welfare system working in the 
230.9   same program; 
230.10     (8) the amounts of cash public assistance and relief paid 
230.11  to welfare recipients in this state, including their names, 
230.12  social security numbers, income, addresses, and other data as 
230.13  required, upon request by the department of revenue to 
230.14  administer the property tax refund law, supplemental housing 
230.15  allowance, early refund of refundable tax credits, and the 
230.16  income tax.  "Refundable tax credits" means the dependent care 
230.17  credit under section 290.067, the Minnesota working family 
230.18  credit under section 290.0671, the property tax refund under 
230.19  section 290A.04, and, if the required federal waiver or waivers 
230.20  are granted, the federal earned income tax credit under section 
230.21  32 of the Internal Revenue Code; 
230.22     (9) to the Minnesota department of economic security for 
230.23  the purpose of monitoring the eligibility of the data subject 
230.24  for reemployment insurance, for any employment or training 
230.25  program administered, supervised, or certified by that agency, 
230.26  or for the purpose of administering any rehabilitation program, 
230.27  whether alone or in conjunction with the welfare system, and to 
230.28  verify receipt of energy assistance for the telephone assistance 
230.29  plan; 
230.30     (10) to appropriate parties in connection with an emergency 
230.31  if knowledge of the information is necessary to protect the 
230.32  health or safety of the individual or other individuals or 
230.33  persons; 
230.34     (11) data maintained by residential programs as defined in 
230.35  section 245A.02 may be disclosed to the protection and advocacy 
230.36  system established in this state pursuant to Part C of Public 
231.1   Law Number 98-527 to protect the legal and human rights of 
231.2   persons with mental retardation or other related conditions who 
231.3   live in residential facilities for these persons if the 
231.4   protection and advocacy system receives a complaint by or on 
231.5   behalf of that person and the person does not have a legal 
231.6   guardian or the state or a designee of the state is the legal 
231.7   guardian of the person; 
231.8      (12) to the county medical examiner or the county coroner 
231.9   for identifying or locating relatives or friends of a deceased 
231.10  person; 
231.11     (13) data on a child support obligor who makes payments to 
231.12  the public agency may be disclosed to the higher education 
231.13  services office to the extent necessary to determine eligibility 
231.14  under section 136A.121, subdivision 2, clause (5); 
231.15     (14) participant social security numbers and names 
231.16  collected by the telephone assistance program may be disclosed 
231.17  to the department of revenue to conduct an electronic data match 
231.18  with the property tax refund database to determine eligibility 
231.19  under section 237.70, subdivision 4a; 
231.20     (15) the current address of a recipient of aid to families 
231.21  with dependent children may be disclosed to law enforcement 
231.22  officers who provide the name and social security number of the 
231.23  recipient and satisfactorily demonstrate that:  (i) the 
231.24  recipient is a fugitive felon, including the grounds for this 
231.25  determination; (ii) the location or apprehension of the felon is 
231.26  within the law enforcement officer's official duties; and (iii) 
231.27  the request is made in writing and in the proper exercise of 
231.28  those duties; 
231.29     (16) the current address of a recipient of general 
231.30  assistance, work readiness, or general assistance medical care 
231.31  may be disclosed to probation officers and corrections agents 
231.32  who are supervising the recipient, and to law enforcement 
231.33  officers who are investigating the recipient in connection with 
231.34  a felony level offense; 
231.35     (17) information obtained from food stamp applicant or 
231.36  recipient households may be disclosed to local, state, or 
232.1   federal law enforcement officials, upon their written request, 
232.2   for the purpose of investigating an alleged violation of the 
232.3   food stamp act, in accordance with Code of Federal Regulations, 
232.4   title 7, section 272.1(c); 
232.5      (18) data on a certain information regarding child support 
232.6   obligor obligors who is are in arrears may be disclosed for 
232.7   purposes of publishing the data pursuant made public according 
232.8   to section 518.575; 
232.9      (19) data on child support payments made by a child support 
232.10  obligor, data on the enforcement actions undertaken by the 
232.11  public authority and the status of those actions, and data on 
232.12  the income of the obligor or obligee may be disclosed to the 
232.13  obligee other party; 
232.14     (20) data in the work reporting system may be disclosed 
232.15  under section 256.998, subdivision 7; 
232.16     (21) to the department of children, families, and learning 
232.17  for the purpose of matching department of children, families, 
232.18  and learning student data with public assistance data to 
232.19  determine students eligible for free and reduced price meals, 
232.20  meal supplements, and free milk pursuant to United States Code, 
232.21  title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to 
232.22  produce accurate numbers of students receiving aid to families 
232.23  with dependent children as required by section 124.175; and to 
232.24  allocate federal and state funds that are distributed based on 
232.25  income of the student's family; or 
232.26     (22) the current address and telephone number of program 
232.27  recipients and emergency contacts may be released to the 
232.28  commissioner of health or a local board of health as defined in 
232.29  section 145A.02, subdivision 2, when the commissioner or local 
232.30  board of health has reason to believe that a program recipient 
232.31  is a disease case, carrier, suspect case, or at risk of illness, 
232.32  and the data are necessary to locate the person; or 
232.33     (23) to other state agencies, statewide systems, and 
232.34  political subdivisions of this state, including the attorney 
232.35  general, and agencies of other states, interstate information 
232.36  networks, federal agencies, and other entities as required by 
233.1   federal regulation or law for the administration of the child 
233.2   support enforcement program. 
233.3      (b) Information on persons who have been treated for drug 
233.4   or alcohol abuse may only be disclosed in accordance with the 
233.5   requirements of Code of Federal Regulations, title 42, sections 
233.6   2.1 to 2.67. 
233.7      (c) Data provided to law enforcement agencies under 
233.8   paragraph (a), clause (15), (16), or (17), or paragraph (b), are 
233.9   investigative data and are confidential or protected nonpublic 
233.10  while the investigation is active.  The data are private after 
233.11  the investigation becomes inactive under section 13.82, 
233.12  subdivision 5, paragraph (a) or (b). 
233.13     (d) Mental health data shall be treated as provided in 
233.14  subdivisions 7, 8, and 9, but is not subject to the access 
233.15  provisions of subdivision 10, paragraph (b). 
233.16     Sec. 2.  Minnesota Statutes 1996, section 13.99, is amended 
233.17  by adding a subdivision to read: 
233.18     Subd. 101d.  [CHILD SUPPORT PARTIES.] Certain data 
233.19  regarding the location of parties in connection with child 
233.20  support proceedings are governed by sections 256.87, subdivision 
233.21  8; 257.70; and 518.005, subdivision 5.  Certain data regarding 
233.22  the suspension of licenses of persons owing child support are 
233.23  governed by section 518.551, subdivision 13a, and certain data 
233.24  on newly hired employees maintained by the public authority for 
233.25  support enforcement are governed by section 256.998. 
233.26     Sec. 3.  [13B.06] [CHILD SUPPORT OR MAINTENANCE OBLIGOR 
233.27  DATA MATCHES.] 
233.28     Subdivision 1.  [DEFINITIONS.] The definitions in this 
233.29  subdivision apply to this section. 
233.30     (a) "Account" means a demand deposit account, checking or 
233.31  negotiable withdraw order account, savings account, time deposit 
233.32  account, or money market mutual fund. 
233.33     (b) "Account information" means the type of account, the 
233.34  account number, whether the account is singly or jointly owned, 
233.35  and in the case of jointly owned accounts the name and address 
233.36  of the nonobligor account owner if available. 
234.1      (c) "Financial institution" means any of the following that 
234.2   do business within the state: 
234.3      (1) federal or state commercial banks and federal or state 
234.4   savings banks, including savings and loan associations and 
234.5   cooperative banks; 
234.6      (2) federal and state chartered credit unions; 
234.7      (3) benefit associations; 
234.8      (4) life insurance companies; 
234.9      (5) safe deposit companies; and 
234.10     (6) money market mutual funds. 
234.11     (d) "Obligor" means an individual who is in arrears in 
234.12  court-ordered child support or maintenance payments, or both, in 
234.13  an amount equal to or greater than three times the obligor's 
234.14  total monthly support and maintenance payments. 
234.15     (e) "Public authority" means the public authority 
234.16  responsible for child support enforcement. 
234.17     Subd. 2.  [DATA MATCH SYSTEM ESTABLISHED.] The commissioner 
234.18  of human services shall establish a process for the comparison 
234.19  of account information data held by financial institutions with 
234.20  the public authority's database of child support obligors.  The 
234.21  commissioner shall inform the financial industry of the 
234.22  requirements of this section and the means by which financial 
234.23  institutions can comply.  The commissioner may contract for 
234.24  services to carry out this section. 
234.25     Subd. 3.  [DUTY TO PROVIDE DATA.] On written request by a 
234.26  public authority, a financial institution shall provide to the 
234.27  public authority on a quarterly basis the name, address, social 
234.28  security number, tax identification number if known, and all 
234.29  account information for each obligor who maintains an account at 
234.30  the financial institution. 
234.31     Subd. 4.  [METHOD TO PROVIDE DATA.] To comply with the 
234.32  requirements of this section, a financial institution may either:
234.33     (1) provide to the public authority a list containing only 
234.34  the names and other necessary personal identifying information 
234.35  of all account holders for the public authority to compare 
234.36  against its list of child support obligors for the purpose of 
235.1   identifying which obligors maintain an account at the financial 
235.2   institution; the names of the obligors who maintain an account 
235.3   at the institution shall then be transmitted to the financial 
235.4   institution which shall provide the public authority with 
235.5   account information on those obligors; or 
235.6      (2) obtain a list of child support obligors from the public 
235.7   authority and compare that data to the data maintained at the 
235.8   financial institution to identify which of the identified 
235.9   obligors maintains an account at the financial institution. 
235.10     A financial institution shall elect either method in 
235.11  writing upon written request of the public authority, and the 
235.12  election remains in effect unless the public authority agrees in 
235.13  writing to a change. 
235.14     Subd. 5.  [MEANS TO PROVIDE DATA.] A financial institution 
235.15  may provide the required data by submitting electronic media in 
235.16  a compatible format, delivering, mailing, or telefaxing a copy 
235.17  of the data, or by other means authorized by the commissioner of 
235.18  human services that will result in timely reporting. 
235.19     Subd. 6.  [ACCESS TO DATA.] (a) With regard to account 
235.20  information on all account holders provided by a financial 
235.21  institution under subdivision 4, clause (1), the commissioner of 
235.22  human services shall retain the reported information only until 
235.23  the account information is compared against the public 
235.24  authority's obligor database.  Notwithstanding section 138.17, 
235.25  all account information that does not pertain to an obligor 
235.26  listed in the public authority's database must be immediately 
235.27  discarded, and no retention or publication may be made of that 
235.28  data by the public authority.  All account information that does 
235.29  pertain to an obligor listed in the public authority's database 
235.30  must be incorporated into the public authority's database.  
235.31  Access to that data is governed by chapter 13. 
235.32     (b) With regard to data on obligors provided by the public 
235.33  authority to a financial institution under subdivision 4, clause 
235.34  (2), the financial institution shall retain the reported 
235.35  information only until the financial institution's database is 
235.36  compared against the public authority's database.  Data that do 
236.1   not pertain to an account holder at the financial institution 
236.2   must be immediately discarded, and no retention or publication 
236.3   may be made of that data by the financial institution. 
236.4      Subd. 7.  [FEES.] A financial institution may charge and 
236.5   collect a fee from the public authority for providing account 
236.6   information to the public authority.  No financial institution 
236.7   shall charge or collect a fee that exceeds its actual costs of 
236.8   complying with this section.  The commissioner, together with an 
236.9   advisory group consisting of representatives of the financial 
236.10  institutions in the state, shall determine a fee structure that 
236.11  minimizes the cost to the state and reasonably meets the needs 
236.12  of the financial institutions, and shall report to the chairs of 
236.13  the judiciary committees in the house of representatives and the 
236.14  senate by February 1, 1998, a recommended fee structure for 
236.15  inclusion in this section. 
236.16     Subd. 8.  [FAILURE TO RESPOND TO REQUEST FOR 
236.17  INFORMATION.] The public authority shall send by certified mail 
236.18  a written notice of noncompliance to a financial institution 
236.19  that fails to respond to a first written request for information 
236.20  under this section.  The notice of noncompliance must explain 
236.21  the requirements of this section and advise the financial 
236.22  institution of the penalty for noncompliance.  A financial 
236.23  institution that receives a second notice of noncompliance is 
236.24  subject to a civil penalty of $1,000 for its failure to comply.  
236.25  A financial institution that continues to fail to comply with 
236.26  this section is subject to a civil penalty of $5,000 for the 
236.27  third and each subsequent failure to comply.  These penalties 
236.28  may be imposed and collected by the public authority. 
236.29     A financial institution that has been served with a notice 
236.30  of noncompliance and incurs a second or subsequent notice of 
236.31  noncompliance has the right to a contested case hearing under 
236.32  chapter 14.  A financial institution has 20 days from the date 
236.33  of the service of the notice of noncompliance to file a request 
236.34  for a contested case hearing with the commissioner.  The order 
236.35  of the administrative law judge constitutes the final decision 
236.36  in the case. 
237.1      Subd. 9.  [IMMUNITY.] A financial institution that provides 
237.2   or reasonably attempts to provide information to the public 
237.3   authority in compliance with this section is not liable to any 
237.4   person for disclosing the information or for taking any other 
237.5   action in good faith as authorized by this section or chapter 
237.6   552. 
237.7      Subd. 10.  [CIVIL ACTION FOR UNAUTHORIZED DISCLOSURE BY 
237.8   FINANCIAL INSTITUTION.] (a) An account holder may bring a civil 
237.9   action in district court against a financial institution for 
237.10  unauthorized disclosure of data received from the public 
237.11  authority under subdivision 4, clause (2).  A financial 
237.12  institution found to have violated this subdivision shall be 
237.13  liable as provided in paragraph (b) or (c). 
237.14     (b) Any financial institution that willfully and 
237.15  maliciously discloses data received from the public authority 
237.16  under subdivision 4 is liable to that account holder in an 
237.17  amount equal to the sum of: 
237.18     (1) any actual damages sustained by the consumer as a 
237.19  result of the disclosure; and 
237.20     (2) in the case of any successful action to enforce any 
237.21  liability under this section, the costs of the action taken plus 
237.22  reasonable attorney's fees as determined by the court. 
237.23     (c) Any financial institution that negligently discloses 
237.24  data received from the public authority under subdivision 4 is 
237.25  liable to that account holder in an amount equal to any actual 
237.26  damages sustained by the account holder as a result of the 
237.27  disclosure. 
237.28     (d) A financial institution may not be held liable in any 
237.29  action brought under this subdivision if the financial 
237.30  institution shows, by a preponderance of evidence, that the 
237.31  disclosure was not intentional and resulted from a bona fide 
237.32  error notwithstanding the maintenance of procedures reasonably 
237.33  adapted to avoid any error. 
237.34     Sec. 4.  Minnesota Statutes 1996, section 144.223, is 
237.35  amended to read: 
237.36     144.223 [REPORT OF MARRIAGE.] 
238.1      Data relating to certificates of marriage registered shall 
238.2   be reported to the state registrar by the local registrars 
238.3   pursuant to the rules of the commissioner.  The information 
238.4   necessary to compile the report shall be furnished by the 
238.5   applicant prior to the issuance of the marriage license.  The 
238.6   report shall contain the following information: 
238.7      A. Personal information on bride and groom: 
238.8      1. Name; 
238.9      2. Residence; 
238.10     3. Date and place of birth; 
238.11     4. Race; 
238.12     5. If previously married, how terminated; 
238.13     6. Signature of applicant and date signed, and social 
238.14  security number. 
238.15     B. Information concerning the marriage: 
238.16     1. Date of marriage; 
238.17     2. Place of marriage; 
238.18     3. Civil or religious ceremony. 
238.19     Sec. 5.  [256.741] [CHILD SUPPORT AND MAINTENANCE.] 
238.20     Subdivision 1.  [PUBLIC ASSISTANCE.] (a) The term "public 
238.21  assistance" as used in this chapter and chapters 257, 518, and 
238.22  518C, includes any form of assistance provided under AFDC, MFIP, 
238.23  and MFIP-R under chapter 256, MFIP-S under chapter 256J, and 
238.24  work first under chapter 256K; child care assistance provided 
238.25  through the child care fund according to chapter 119B; any form 
238.26  of medical assistance under chapter 256B; MinnesotaCare under 
238.27  chapter 256; and foster care as provided under Title IV-E of the 
238.28  Social Security Act. 
238.29     (b) The term "child support agency" as used in this section 
238.30  refers to the public authority responsible for child support 
238.31  enforcement. 
238.32     (c) The term "public assistance agency" as used in this 
238.33  section refers to a public authority providing public assistance 
238.34  to an individual. 
238.35     Subd. 2.  [ASSIGNMENT OF SUPPORT AND MAINTENANCE 
238.36  RIGHTS.] (a) An individual receiving public assistance in the 
239.1   form of assistance under AFDC, MFIP-S, MFIP-R, MFIP, and work 
239.2   first is considered to have assigned to the state at the time of 
239.3   application all rights to child support and maintenance from any 
239.4   other person the applicant or recipient may have in the 
239.5   individual's own behalf or in the behalf of any other family 
239.6   member for whom application for public assistance is made.  An 
239.7   assistance unit is ineligible for aid to families with dependent 
239.8   children or its successor program unless the caregiver assigns 
239.9   all rights to child support and spousal maintenance benefits 
239.10  according to this section. 
239.11     (1) An assignment made according to this section is 
239.12  effective as to: 
239.13     (i) any current child support and current spousal 
239.14  maintenance; and 
239.15     (ii) any accrued child support and spousal maintenance 
239.16  arrears. 
239.17     (2) An assignment made after September 30, 1997, is 
239.18  effective as to: 
239.19     (i) any current child support and current spousal 
239.20  maintenance; 
239.21     (ii) any accrued child support and spousal maintenance 
239.22  arrears collected before October 1, 2000, or the date the 
239.23  individual terminates assistance, whichever is later; and 
239.24     (iii) any accrued child support and spousal maintenance 
239.25  arrears collected under federal tax intercept. 
239.26     (b) An individual receiving public assistance in the form 
239.27  of medical assistance, including MinnesotaCare, is considered to 
239.28  have assigned to the state at the time of application all rights 
239.29  to medical support from any other person the individual may have 
239.30  in the individual's own behalf or in the behalf of any other 
239.31  family member for whom medical assistance is provided. 
239.32     An assignment made after September 30, 1997, is effective 
239.33  as to any medical support accruing after the date of medical 
239.34  assistance or MinnesotaCare eligibility. 
239.35     (c) An individual receiving public assistance in the form 
239.36  of child care assistance under the child care fund pursuant to 
240.1   chapter 119B is considered to have assigned to the state at the 
240.2   time of application all rights to child care support from any 
240.3   other person the individual may have in the individual's own 
240.4   behalf or in the behalf of any other family member for whom 
240.5   child care assistance is provided. 
240.6      An assignment made according to this paragraph is effective 
240.7   as to: 
240.8      (1) any current child care support and any child care 
240.9   support arrears assigned and accruing after the effective date 
240.10  of this section that are collected before October 1, 2000; and 
240.11     (2) any accrued child care support arrears collected under 
240.12  federal tax intercept. 
240.13     Subd. 3.  [EXISTING ASSIGNMENTS.] Assignments based on the 
240.14  receipt of public assistance in existence prior to the effective 
240.15  date of this section are permanently assigned to the state. 
240.16     Subd. 4.  [EFFECT OF ASSIGNMENT.] Assignments in this 
240.17  section take effect upon a determination that the applicant is 
240.18  eligible for public assistance.  The amount of support assigned 
240.19  under this subdivision may not exceed the total amount of public 
240.20  assistance issued or the total support obligation, whichever is 
240.21  less. 
240.22     Subd. 5.  [COOPERATION WITH CHILD SUPPORT 
240.23  ENFORCEMENT.] After notification from a public assistance agency 
240.24  that an individual has applied for or is receiving any form of 
240.25  public assistance, the child support agency shall determine 
240.26  whether the party is cooperating with the agency in establishing 
240.27  paternity, child support, modification of an existing child 
240.28  support order, or enforcement of an existing child support 
240.29  order.  The public assistance agency shall notify each applicant 
240.30  or recipient in writing of the right to claim a good cause 
240.31  exemption from cooperating with the requirements in this 
240.32  section.  A copy of the notice must be furnished to the 
240.33  applicant or recipient, and the applicant or recipient and a 
240.34  representative from the public authority shall acknowledge 
240.35  receipt of the notice by signing and dating a copy of the 
240.36  notice.  The individual shall cooperate with the child support 
241.1   agency by: 
241.2      (1) providing all known information regarding the alleged 
241.3   father or obligor, including name, address, social security 
241.4   number, telephone number, place of employment or school, and the 
241.5   names and addresses of any relatives; 
241.6      (2) appearing at interviews, hearings and legal 
241.7   proceedings; 
241.8      (3) submitting to genetic tests including genetic testing 
241.9   of the child, under a judicial or administrative order; and 
241.10     (4) providing additional information known by the 
241.11  individual as necessary for cooperating in good faith with the 
241.12  child support agency. 
241.13     The caregiver of a minor child must cooperate with the 
241.14  efforts of the public authority to collect support according to 
241.15  this subdivision.  A caregiver must forward to the public 
241.16  authority all support the caregiver receives during the period 
241.17  the assignment of support required under subdivision 2 is in 
241.18  effect.  Support received by a caregiver and not forwarded to 
241.19  the public authority must be repaid to the child support 
241.20  enforcement unit for any month following the date on which 
241.21  initial eligibility is determined, except as provided under 
241.22  subdivision 8, paragraph (b), clause (4). 
241.23     Subd. 6.  [DETERMINATION.] If the individual cannot provide 
241.24  the information required in subdivision 5, before making a 
241.25  determination that the individual is cooperating, the child 
241.26  support agency shall make a finding that the individual could 
241.27  not reasonably be expected to provide the information.  In 
241.28  making this finding, the child support agency shall consider: 
241.29     (1) the age of the child for whom support is being sought; 
241.30     (2) the circumstances surrounding the conception of the 
241.31  child; 
241.32     (3) the age and mental capacity of the parent or caregiver 
241.33  of the child for whom support is being sought; 
241.34     (4) the time period that has expired since the parent or 
241.35  caregiver of the child for whom support is sought last had 
241.36  contact with the alleged father or obligor, or the person's 
242.1   relatives; and 
242.2      (5) statements from the applicant or recipient or other 
242.3   individuals that show evidence of an inability to provide 
242.4   correct information about the alleged father or obligor because 
242.5   of deception by the alleged father or obligor. 
242.6      Subd. 7.  [NONCOOPERATION.] Unless good cause is found to 
242.7   exist under subdivision 10, upon a determination of 
242.8   noncooperation by the child support agency, the agency shall 
242.9   promptly notify the individual and each public assistance agency 
242.10  providing public assistance to the individual that the 
242.11  individual is not cooperating with the child support agency.  
242.12  Upon notice of noncooperation, the individual shall be 
242.13  sanctioned in the amount determined according to the public 
242.14  assistance agency responsible for enforcing the sanction.  
242.15     Subd. 8.  [REFUSAL TO COOPERATE WITH SUPPORT 
242.16  REQUIREMENTS.] (a) Failure by a caregiver to satisfy any of the 
242.17  requirements of subdivision 5 constitutes refusal to cooperate, 
242.18  and the sanctions under paragraph (b) apply.  The IV-D agency 
242.19  must determine whether a caregiver has refused to cooperate 
242.20  according to subdivision 5. 
242.21     (b) Determination by the IV-D agency that a caregiver has 
242.22  refused to cooperate has the following effects: 
242.23     (1) a caregiver is subject to the applicable sanctions 
242.24  under section 256J.46; 
242.25     (2) a caregiver who is not a parent of a minor child in an 
242.26  assistance unit may choose to remove the child from the 
242.27  assistance unit unless the child is required to be in the 
242.28  assistance unit; 
242.29     (3) a parental caregiver who refuses to cooperate is 
242.30  ineligible for medical assistance; and 
242.31     (4) direct support retained by a caregiver must be counted 
242.32  as unearned income when determining the amount of the assistance 
242.33  payment. 
242.34     Subd. 9.  [GOOD CAUSE EXEMPTION FROM COOPERATING WITH 
242.35  SUPPORT REQUIREMENTS.] The IV-A or IV-D agency must notify the 
242.36  caregiver that the caregiver may claim a good cause exemption 
243.1   from cooperating with the requirements in subdivision 5.  Good 
243.2   cause may be claimed and exemptions determined according to 
243.3   subdivisions 10 to 13. 
243.4      Subd. 10.  [GOOD CAUSE EXEMPTION.] (a) Cooperation with the 
243.5   child support agency under subdivision 5 is not necessary if the 
243.6   individual asserts, and both the child support agency and the 
243.7   public assistance agency find, good cause exists under this 
243.8   subdivision for failing to cooperate.  An individual may request 
243.9   a good cause exemption by filing a written claim with the public 
243.10  assistance agency on a form provided by the commissioner of 
243.11  human services.  Upon notification of a claim for good cause 
243.12  exemption, the child support agency shall cease all child 
243.13  support enforcement efforts until the claim for good cause 
243.14  exemption is reviewed and the validity of the claim is 
243.15  determined.  Designated representatives from public assistance 
243.16  agencies and at least one representative from the child support 
243.17  enforcement agency shall review each claim for a good cause 
243.18  exemption and determine its validity. 
243.19     (b) Good cause exists when an individual documents that 
243.20  pursuit of child support enforcement services could reasonably 
243.21  result in: 
243.22     (1) physical or emotional harm to the child for whom 
243.23  support is sought; 
243.24     (2) physical harm to the parent or caregiver with whom the 
243.25  child is living that would reduce the ability to adequately care 
243.26  for the child; or 
243.27     (3) emotional harm to the parent or caregiver with whom the 
243.28  child is living, of such nature or degree that it would reduce 
243.29  the person's ability to adequately care for the child. 
243.30     Physical and emotional harm under this paragraph must be of 
243.31  a serious nature in order to justify a finding of good cause 
243.32  exemption.  A finding of good cause exemption based on emotional 
243.33  harm may only be based upon a demonstration of emotional 
243.34  impairment that substantially affects the individual's ability 
243.35  to function. 
243.36     (c) Good cause also exists when the designated 
244.1   representatives in this subdivision believe that pursuing child 
244.2   support enforcement would be detrimental to the child for whom 
244.3   support is sought and the individual applicant or recipient 
244.4   documents any of the following: 
244.5      (1) the child for whom child support enforcement is sought 
244.6   was conceived as a result of incest or rape; 
244.7      (2) legal proceedings for the adoption of the child are 
244.8   pending before a court of competent jurisdiction; or 
244.9      (3) the parent or caregiver of the child is currently being 
244.10  assisted by a public or licensed private social service agency 
244.11  to resolve the issues of whether to keep the child or place the 
244.12  child for adoption. 
244.13     The parent or caregiver's right to claim a good cause 
244.14  exemption based solely on this paragraph expires if the 
244.15  assistance lasts more than 90 days. 
244.16     (d) The public authority shall consider the best interests 
244.17  of the child in determining good cause. 
244.18     Subd. 11.  [PROOF OF GOOD CAUSE.] (a) An individual seeking 
244.19  a good cause exemption has 20 days from the date the good cause 
244.20  claim was provided to the public assistance agency to supply 
244.21  evidence supporting the claim.  The public assistance agency may 
244.22  extend the time period in this section if it believes the 
244.23  individual is cooperating and needs additional time to submit 
244.24  the evidence required by this section.  Failure to provide this 
244.25  evidence shall result in the child support agency resuming child 
244.26  support enforcement efforts. 
244.27     (b) Evidence supporting a good cause claim includes, but is 
244.28  not limited to: 
244.29     (1) a birth certificate or medical or law enforcement 
244.30  records indicating that the child was conceived as the result of 
244.31  incest or rape; 
244.32     (2) court documents or other records indicating that legal 
244.33  proceedings for adoption are pending before a court of competent 
244.34  jurisdiction; 
244.35     (3) court, medical, criminal, child protective services, 
244.36  social services, domestic violence advocate services, 
245.1   psychological, or law enforcement records indicating that the 
245.2   alleged father or obligor might inflict physical or emotional 
245.3   harm on the child, parent, or caregiver; 
245.4      (4) medical records or written statements from a licensed 
245.5   medical professional indicating the emotional health history or 
245.6   status of the custodial parent, child, or caregiver, or 
245.7   indicating a diagnosis or prognosis concerning their emotional 
245.8   health; 
245.9      (5) a written statement from a public or licensed private 
245.10  social services agency that the individual is deciding whether 
245.11  to keep the child or place the child for adoption; or 
245.12     (6) sworn statements from individuals other than the 
245.13  applicant or recipient that provide evidence supporting the good 
245.14  cause claim. 
245.15     (c) The child support agency and the public assistance 
245.16  agency shall assist an individual in obtaining the evidence in 
245.17  this section upon request of the individual. 
245.18     Subd. 12.  [DECISION.] A good cause exemption must be 
245.19  granted if the individual's claim and the investigation of the 
245.20  supporting evidence satisfy the investigating agencies that the 
245.21  individual has good cause for refusing to cooperate. 
245.22     Subd. 13.  [DURATION.] (a) A good cause exemption may not 
245.23  continue for more than one year without redetermination of 
245.24  cooperation and good cause pursuant to this section.  The child 
245.25  support agency may redetermine cooperation and the designated 
245.26  representatives in subdivision 10 may redetermine the granting 
245.27  of a good cause exemption before the one year expiration in this 
245.28  subdivision. 
245.29     (b) A good cause exemption must be allowed under subsequent 
245.30  applications and redeterminations without additional evidence 
245.31  when the factors that led to the exemption continue to exist.  A 
245.32  good cause exemption must end when the factors that led to the 
245.33  exemption have changed. 
245.34     Subd. 14.  [TRAINING.] The commissioner shall establish 
245.35  domestic violence and sexual abuse training programs for child 
245.36  support agency employees.  The training programs must be 
246.1   developed in consultation with experts on domestic violence and 
246.2   sexual assault.  To the extent possible, representatives of the 
246.3   child support agency involved in making a determination of 
246.4   cooperation under subdivision 6 or reviewing a claim for good 
246.5   cause exemption under subdivision 9 shall receive training in 
246.6   accordance with this subdivision. 
246.7      Sec. 6.  Minnesota Statutes 1996, section 256.87, 
246.8   subdivision 1, is amended to read: 
246.9      Subdivision 1.  [ACTIONS AGAINST PARENTS FOR ASSISTANCE 
246.10  FURNISHED.] A parent of a child is liable for the amount 
246.11  of public assistance, as defined in section 256.741, furnished 
246.12  under sections 256.031 to 256.0361, 256.72 to 256.87, or under 
246.13  Title IV-E of the Social Security Act or medical assistance 
246.14  under chapter 256, 256B, or 256D to and for the benefit of the 
246.15  child, including any assistance furnished for the benefit of the 
246.16  caretaker of the child, which the parent has had the ability to 
246.17  pay.  Ability to pay must be determined according to chapter 
246.18  518.  The parent's liability is limited to the two years 
246.19  immediately preceding the commencement of the action, except 
246.20  that where child support has been previously ordered, the state 
246.21  or county agency providing the assistance, as assignee of the 
246.22  obligee, shall be entitled to judgments for child support 
246.23  payments accruing within ten years preceding the date of the 
246.24  commencement of the action up to the full amount of assistance 
246.25  furnished.  The action may be ordered by the state agency or 
246.26  county agency and shall be brought in the name of the county by 
246.27  the county attorney of the county in which the assistance was 
246.28  granted, or by in the name of the state agency against the 
246.29  parent for the recovery of the amount of assistance granted, 
246.30  together with the costs and disbursements of the action. 
246.31     Sec. 7.  Minnesota Statutes 1996, section 256.87, 
246.32  subdivision 1a, is amended to read: 
246.33     Subd. 1a.  [CONTINUING SUPPORT CONTRIBUTIONS.] In addition 
246.34  to granting the county or state agency a money judgment, the 
246.35  court may, upon a motion or order to show cause, order 
246.36  continuing support contributions by a parent found able to 
247.1   reimburse the county or state agency.  The order shall be 
247.2   effective for the period of time during which the recipient 
247.3   receives public assistance from any county or state agency and 
247.4   thereafter.  The order shall require support according to 
247.5   chapter 518.  An order for continuing contributions is 
247.6   reinstated without further hearing upon notice to the parent by 
247.7   any county or state agency that public assistance, as defined in 
247.8   section 256.741, is again being provided for the child of the 
247.9   parent under sections 256.031 to 256.0361, 256.72 to 256.87, or 
247.10  under Title IV-E of the Social Security Act or medical 
247.11  assistance under chapter 256, 256B, or 256D.  The notice shall 
247.12  be in writing and shall indicate that the parent may request a 
247.13  hearing for modification of the amount of support or maintenance.
247.14     Sec. 8.  Minnesota Statutes 1996, section 256.87, 
247.15  subdivision 3, is amended to read: 
247.16     Subd. 3.  [CONTINUING CONTRIBUTIONS TO FORMER RECIPIENT.] 
247.17  The order for continuing support contributions shall remain in 
247.18  effect following the period after public assistance, as defined 
247.19  in section 256.741, granted under sections 256.72 to 256.87 is 
247.20  terminated unless the former recipient files an affidavit with 
247.21  the court requesting termination of the order.  
247.22     Sec. 9.  Minnesota Statutes 1996, section 256.87, 
247.23  subdivision 5, is amended to read: 
247.24     Subd. 5.  [CHILD NOT RECEIVING ASSISTANCE.] A person or 
247.25  entity having physical custody of a dependent child not 
247.26  receiving public assistance under sections 256.031 to 256.0361, 
247.27  or 256.72 to 256.87 as defined in section 256.741 has a cause of 
247.28  action for child support against the child's absent noncustodial 
247.29  parents.  Upon a motion served on the absent noncustodial 
247.30  parent, the court shall order child support payments, including 
247.31  medical support and child care support, from the 
247.32  absent noncustodial parent under chapter 518.  The absent A 
247.33  noncustodial parent's liability may include up to the two years 
247.34  immediately preceding the commencement of the action.  This 
247.35  subdivision applies only if the person or entity has physical 
247.36  custody with the consent of a custodial parent or approval of 
248.1   the court.  
248.2      Sec. 10.  Minnesota Statutes 1996, section 256.87, is 
248.3   amended by adding a subdivision to read: 
248.4      Subd. 8.  [DISCLOSURE PROHIBITED.] Notwithstanding 
248.5   statutory or other authorization for the public authority to 
248.6   release private data on the location of a party to the action, 
248.7   information on the location of one party may not be released to 
248.8   the other party by the public authority if: 
248.9      (1) the public authority has knowledge that a protective 
248.10  order with respect to the other party has been entered; or 
248.11     (2) the public authority has reason to believe that the 
248.12  release of the information may result in physical or emotional 
248.13  harm to the other party. 
248.14     Sec. 11.  Minnesota Statutes 1996, section 256.978, 
248.15  subdivision 1, is amended to read: 
248.16     Subdivision 1.  [REQUEST FOR INFORMATION.] (a) The 
248.17  commissioner of human services public authority responsible for 
248.18  child support in this state or any other state, in order to 
248.19  locate a person to establish paternity, and child support or to 
248.20  modify or enforce child support, or to enforce a child support 
248.21  obligation in arrears, may request information reasonably 
248.22  necessary to the inquiry from the records of all departments, 
248.23  boards, bureaus, or other agencies of this state, which shall, 
248.24  notwithstanding the provisions of section 268.12, subdivision 
248.25  12, or any other law to the contrary, provide the information 
248.26  necessary for this purpose.  Employers, utility companies, 
248.27  insurance companies, financial institutions, and labor 
248.28  associations doing business in this state shall provide 
248.29  information as provided under subdivision 2 upon written or 
248.30  electronic request by an agency responsible for child support 
248.31  enforcement regarding individuals owing or allegedly owing a 
248.32  duty to support within 30 days of the receipt service of the 
248.33  written request made by the public authority.  Information 
248.34  requested and used or transmitted by the commissioner pursuant 
248.35  according to the authority conferred by this section may be made 
248.36  available only to public officials and agencies of this state 
249.1   and its political subdivisions and other states of the union and 
249.2   their political subdivisions who are seeking to enforce the 
249.3   support liability of parents or to locate parents.  The 
249.4   commissioner may not release the information to an agency or 
249.5   political subdivision of another state unless the agency or 
249.6   political subdivision is directed to maintain the data 
249.7   consistent with its classification in this state.  Information 
249.8   obtained under this section may not be released except to the 
249.9   extent necessary for the administration of the child support 
249.10  enforcement program or when otherwise authorized by law. to 
249.11  other agencies, statewide systems, and political subdivisions of 
249.12  this state, and agencies of other states, interstate information 
249.13  networks, federal agencies, and other entities as required by 
249.14  federal regulation or law for the administration of the child 
249.15  support enforcement program.  
249.16     (b) For purposes of this section, "state" includes the 
249.17  District of Columbia, Puerto Rico, the United States Virgin 
249.18  Islands, and any territory or insular possession subject to the 
249.19  jurisdiction of the United States. 
249.20     Sec. 12.  Minnesota Statutes 1996, section 256.978, 
249.21  subdivision 2, is amended to read: 
249.22     Subd. 2.  [ACCESS TO INFORMATION.] (a) A written request 
249.23  for information by the public authority responsible for child 
249.24  support of this state or any other state may be made to: 
249.25     (1) employers when there is reasonable cause to believe 
249.26  that the subject of the inquiry is or was an employee or 
249.27  independent contractor of the employer.  Information to be 
249.28  released by employers is limited to place of residence, 
249.29  employment status, wage or payment information, benefit 
249.30  information, and social security number; 
249.31     (2) utility companies when there is reasonable cause to 
249.32  believe that the subject of the inquiry is or was a retail 
249.33  customer of the utility company.  Customer information to be 
249.34  released by utility companies is limited to place of residence, 
249.35  home telephone, work telephone, source of income, employer and 
249.36  place of employment, and social security number; 
250.1      (3) insurance companies when there is an arrearage of child 
250.2   support and there is reasonable cause to believe that the 
250.3   subject of the inquiry is or was receiving funds either in the 
250.4   form of a lump sum or periodic payments.  Information to be 
250.5   released by insurance companies is limited to place of 
250.6   residence, home telephone, work telephone, employer, social 
250.7   security number, and amounts and type of payments made to the 
250.8   subject of the inquiry; 
250.9      (4) labor organizations when there is reasonable cause to 
250.10  believe that the subject of the inquiry is or was a member of 
250.11  the labor association.  Information to be released by labor 
250.12  associations is limited to place of residence, home telephone, 
250.13  work telephone, social security number, and current and past 
250.14  employment information; and 
250.15     (5) financial institutions when there is an arrearage of 
250.16  child support and there is reasonable cause to believe that the 
250.17  subject of the inquiry has or has had accounts, stocks, loans, 
250.18  certificates of deposits, treasury bills, life insurance 
250.19  policies, or other forms of financial dealings with the 
250.20  institution.  Information to be released by the financial 
250.21  institution is limited to place of residence, home telephone, 
250.22  work telephone, identifying information on the type of financial 
250.23  relationships, social security number, current value of 
250.24  financial relationships, and current indebtedness of the subject 
250.25  with the financial institution. 
250.26     (b) For purposes of this subdivision, utility companies 
250.27  include telephone companies, radio common carriers, and 
250.28  telecommunications carriers as defined in section 237.01, and 
250.29  companies that provide electrical, telephone, natural gas, 
250.30  propane gas, oil, coal, or cable television services to retail 
250.31  customers.  The term financial institution includes banks, 
250.32  savings and loans, credit unions, brokerage firms, mortgage 
250.33  companies, and insurance companies., benefit associations, safe 
250.34  deposit companies, money market mutual funds, or similar 
250.35  entities authorized to do business in the state. 
250.36     Sec. 13.  Minnesota Statutes 1996, section 256.9792, 
251.1   subdivision 1, is amended to read: 
251.2      Subdivision 1.  [ARREARAGE COLLECTIONS.] Arrearage 
251.3   collection projects are created to increase the revenue to the 
251.4   state and counties, reduce AFDC public assistance expenditures 
251.5   for former public assistance cases, and increase payments of 
251.6   arrearages to persons who are not receiving public assistance by 
251.7   submitting cases for arrearage collection to collection 
251.8   entities, including but not limited to, the department of 
251.9   revenue and private collection agencies. 
251.10     Sec. 14.  Minnesota Statutes 1996, section 256.9792, 
251.11  subdivision 2, is amended to read: 
251.12     Subd. 2.  [DEFINITIONS.] (a) The definitions in this 
251.13  subdivision apply to this section: 
251.14     (b) "Public assistance arrearage case" means a case where 
251.15  current support may be due, no payment, with the exception of 
251.16  tax offset, has been made within the last 90 days, and the 
251.17  arrearages are assigned to the public agency pursuant according 
251.18  to section 256.74, subdivision 5 256.741. 
251.19     (c) "Public authority" means the public authority 
251.20  responsible for child support enforcement. 
251.21     (d) "Nonpublic assistance arrearage case" means a support 
251.22  case where arrearages have accrued that have not been assigned 
251.23  pursuant according to section 256.74, subdivision 5 256.741. 
251.24     Sec. 15.  Minnesota Statutes 1996, section 256.998, 
251.25  subdivision 1, is amended to read: 
251.26     Subdivision 1.  [DEFINITIONS.] (a) The definitions in this 
251.27  subdivision apply to this section. 
251.28     (b) "Date of hiring" means the earlier of:  (1) the first 
251.29  day for which an employee is owed compensation by an employer; 
251.30  or (2) the first day that an employee reports to work or 
251.31  performs labor or services for an employer. 
251.32     (c) "Earnings" means payment owed by an employer for labor 
251.33  or services rendered by an employee. 
251.34     (d) "Employee" means a person who resides or works in 
251.35  Minnesota and, performs services for compensation, in whatever 
251.36  form, for an employer and satisfies the criteria of an employee 
252.1   under chapter 24 of the Internal Revenue Code.  Employee does 
252.2   not include:  
252.3      (1) persons hired for domestic service in the private home 
252.4   of the employer, as defined in the Federal Tax Code.; or 
252.5      (2) an employee of the federal or state agency performing 
252.6   intelligence or counterintelligence functions, if the head of 
252.7   such agency has determined that reporting according to this law 
252.8   would endanger the safety of the employee or compromise an 
252.9   ongoing investigation or intelligence mission. 
252.10     (e) "Employer" means a person or entity located or doing 
252.11  business in this state that employs one or more employees for 
252.12  payment, and satisfies the criteria of an employer under chapter 
252.13  24 of the Internal Revenue Code.  Employer includes a labor 
252.14  organization as defined in paragraph (g).  Employer also 
252.15  includes the state, political or other governmental subdivisions 
252.16  of the state, and the federal government. 
252.17     (f) "Hiring" means engaging a person to perform services 
252.18  for compensation and includes the reemploying or return to work 
252.19  of any previous employee who was laid off, furloughed, 
252.20  separated, granted a leave without pay, or terminated from 
252.21  employment when a period of 90 days elapses from the date of 
252.22  layoff, furlough, separation, leave, or termination to the date 
252.23  of the person's return to work. 
252.24     (g) "Labor organization" means entities located or doing 
252.25  business in this state that meet the criteria of labor 
252.26  organization under section 2(5) of the National Labor Relations 
252.27  Act.  This includes any entity, that may also be known as a 
252.28  hiring hall, used to carry out requirements described in chapter 
252.29  7 of the National Labor Relations Act. 
252.30     (h) "Payor" means a person or entity located or doing 
252.31  business in Minnesota who pays money to an independent 
252.32  contractor according to an agreement for the performance of 
252.33  services. 
252.34     Sec. 16.  Minnesota Statutes 1996, section 256.998, 
252.35  subdivision 6, is amended to read: 
252.36     Subd. 6.  [SANCTIONS.] If an employer fails to report under 
253.1   this section, the commissioner of human services, by certified 
253.2   mail, shall send the employer a written notice of noncompliance 
253.3   requesting that the employer comply with the reporting 
253.4   requirements of this section.  The notice of noncompliance must 
253.5   explain the reporting procedure under this section and advise 
253.6   the employer of the penalty for noncompliance.  An employer who 
253.7   has received a notice of noncompliance and later incurs a second 
253.8   violation is subject to a civil penalty of $50 $25 for each 
253.9   intentionally unreported employee.  An employer who has received 
253.10  a notice of noncompliance and later incurs a third or subsequent 
253.11  violation is subject to a civil penalty of $500 for each 
253.12  intentionally unreported employee, if noncompliance is the 
253.13  result of a conspiracy between an employer and an employee not 
253.14  to supply the required report or to supply a false or incomplete 
253.15  report.  These penalties may be imposed and collected by the 
253.16  commissioner of human services.  An employer who has been served 
253.17  with a notice of noncompliance and incurs a second or subsequent 
253.18  violation resulting in a civil penalty, has the right to a 
253.19  contested case hearing under chapter 14.  An employer has 20 
253.20  days from the date of service of the notice, to file a request 
253.21  for a contested case hearing with the commissioner.  The order 
253.22  of the administrative law judge constitutes the final decision 
253.23  in the case. 
253.24     Sec. 17.  Minnesota Statutes 1996, section 256.998, 
253.25  subdivision 7, is amended to read: 
253.26     Subd. 7.  [ACCESS TO DATA.] The commissioner of human 
253.27  services shall retain the information reported to the work 
253.28  reporting system for a period of six months.  Data in the work 
253.29  reporting system may be disclosed to the public authority 
253.30  responsible for child support enforcement, federal agencies, and 
253.31  state and local agencies of other states for the purposes of 
253.32  enforcing state and federal laws governing child support, and 
253.33  agencies responsible for the administration of programs under 
253.34  Title IV-A of the Social Security Act, the department of 
253.35  economic security, and the department of labor and industry. 
253.36     Sec. 18.  Minnesota Statutes 1996, section 256.998, is 
254.1   amended by adding a subdivision to read: 
254.2      Subd. 10.  [USE OF WORK REPORTING SYSTEM INFORMATION IN 
254.3   DETERMINING ELIGIBILITY FOR PUBLIC ASSISTANCE PROGRAMS.] The 
254.4   commissioner of human services is authorized to use information 
254.5   from the work reporting system to determine eligibility for 
254.6   applicants and recipients of public assistance programs 
254.7   administered by the department of human services.  Data 
254.8   including names, dates of birth, and social security numbers of 
254.9   people applying for or receiving public assistance benefits will 
254.10  be compared to the work reporting system information to 
254.11  determine if applicants or recipients of public assistance are 
254.12  employed.  County agencies will be notified of discrepancies in 
254.13  information obtained from the work reporting system. 
254.14     Sec. 19.  Minnesota Statutes 1996, section 256.998, is 
254.15  amended by adding a subdivision to read: 
254.16     Subd. 11.  [ACTION ON INFORMATION.] Upon receipt of the 
254.17  discrepant information, county agencies will notify clients of 
254.18  the information and request verification of employment status 
254.19  and earnings.  County agencies must attempt to resolve the 
254.20  discrepancy within 45 days of receipt of the information. 
254.21     Sec. 20.  Minnesota Statutes 1996, section 256.998, is 
254.22  amended by adding a subdivision to read: 
254.23     Subd. 12.  [CLIENT NOTIFICATION.] Persons applying for 
254.24  public assistance programs administered by the department of 
254.25  human services will be notified at the time of application that 
254.26  data including their name, date of birth, and social security 
254.27  number will be shared with the work reporting system to 
254.28  determine possible employment.  All current public assistance 
254.29  recipients will be notified of this provision prior to its 
254.30  implementation. 
254.31     Sec. 21.  Minnesota Statutes 1996, section 257.62, 
254.32  subdivision 1, is amended to read: 
254.33     Subdivision 1.  [BLOOD OR GENETIC TESTS REQUIRED.] (a) The 
254.34  court or public authority may, and upon request of a party 
254.35  shall, require the child, mother, or alleged father to submit to 
254.36  blood or genetic tests.  A mother or alleged father requesting 
255.1   the tests shall file with the court an affidavit either alleging 
255.2   or denying paternity and setting forth facts that establish the 
255.3   reasonable possibility that there was, or was not, the requisite 
255.4   sexual contact between the parties. 
255.5      (b) A copy of the test results must be served on the 
255.6   parties as provided in section 543.20 each party by first class 
255.7   mail to the party's last known address.  Any objection to the 
255.8   results of blood or genetic tests must be made in writing no 
255.9   later than 15 days prior to a hearing at which time those test 
255.10  results may be introduced into evidence 30 days after service of 
255.11  the results.  Test results served upon a party must include 
255.12  notice of this right to object.  
255.13     (c) If the alleged father is dead, the court may, and upon 
255.14  request of a party shall, require the decedent's parents or 
255.15  brothers and sisters or both to submit to blood or genetic 
255.16  tests.  However, in a case involving these relatives of an 
255.17  alleged father, who is deceased, the court may refuse to order 
255.18  blood or genetic tests if the court makes an express finding 
255.19  that submitting to the tests presents a danger to the health of 
255.20  one or more of these relatives that outweighs the child's 
255.21  interest in having the tests performed.  Unless the person gives 
255.22  consent to the use, the results of any blood or genetic tests of 
255.23  the decedent's parents, brothers, or sisters may be used only to 
255.24  establish the right of the child to public assistance including 
255.25  but not limited to social security and veterans' benefits.  The 
255.26  tests shall be performed by a qualified expert appointed by the 
255.27  court. 
255.28     Sec. 22.  Minnesota Statutes 1996, section 257.62, 
255.29  subdivision 2, is amended to read: 
255.30     Subd. 2.  The court, upon reasonable request by a party, 
255.31  shall order that independent tests be performed by other 
255.32  qualified experts. Unless otherwise agreed by the parties, a 
255.33  party wanting additional testing must first contest the original 
255.34  tests in subdivision 1, paragraph (b), and must pay in advance 
255.35  for the additional testing.  The additional testing must be 
255.36  performed by another qualified expert. 
256.1      Sec. 23.  Minnesota Statutes 1996, section 257.66, 
256.2   subdivision 3, is amended to read: 
256.3      Subd. 3.  [JUDGMENT; ORDER.] The judgment or order shall 
256.4   contain provisions concerning the duty of support, the custody 
256.5   of the child, the name of the child, the social security number 
256.6   of the mother, father, and child, if known at the time of 
256.7   adjudication, visitation privileges with the child, the 
256.8   furnishing of bond or other security for the payment of the 
256.9   judgment, or any other matter in the best interest of the 
256.10  child.  Custody and visitation and all subsequent motions 
256.11  related to them shall proceed and be determined under section 
256.12  257.541.  The remaining matters and all subsequent motions 
256.13  related to them shall proceed and be determined in accordance 
256.14  with chapter 518.  The judgment or order may direct the 
256.15  appropriate party to pay all or a proportion of the reasonable 
256.16  expenses of the mother's pregnancy and confinement, after 
256.17  consideration of the relevant facts, including the relative 
256.18  financial means of the parents; the earning ability of each 
256.19  parent; and any health insurance policies held by either parent, 
256.20  or by a spouse or parent of the parent, which would provide 
256.21  benefits for the expenses incurred by the mother during her 
256.22  pregnancy and confinement.  Pregnancy and confinement expenses 
256.23  and genetic testing costs, submitted by the public authority, 
256.24  are admissible as evidence without third-party foundation 
256.25  testimony and constitute prima facie evidence of the amounts 
256.26  incurred for those services or for the genetic testing.  
256.27  Remedies available for the collection and enforcement of child 
256.28  support apply to confinement costs and are considered additional 
256.29  child support. 
256.30     Sec. 24.  Minnesota Statutes 1996, section 257.66, is 
256.31  amended by adding a subdivision to read: 
256.32     Subd. 6.  [REQUIRED INFORMATION.] Upon entry of judgment or 
256.33  order, each parent who is a party in a paternity proceeding 
256.34  shall: 
256.35     (1) file with the public authority responsible for child 
256.36  support enforcement the party's social security number, 
257.1   residential and mailing address, telephone number, driver's 
257.2   license number, and name, address, and telephone number of any 
257.3   employer if the party is receiving services from the public 
257.4   authority or begins receiving services from the public 
257.5   authority; 
257.6      (2) file the information in clause (1) with the district 
257.7   court; and 
257.8      (3) notify the court and, if applicable, the public 
257.9   authority responsible for child support enforcement of any 
257.10  change in the information required under this section within ten 
257.11  days of the change. 
257.12     Sec. 25.  Minnesota Statutes 1996, section 257.70, is 
257.13  amended to read: 
257.14     257.70 [HEARINGS AND RECORDS; CONFIDENTIALITY.] 
257.15     (a) Notwithstanding any other law concerning public 
257.16  hearings and records, any hearing or trial held under sections 
257.17  257.51 to 257.74 shall be held in closed court without 
257.18  admittance of any person other than those necessary to the 
257.19  action or proceeding.  All papers and records, other than the 
257.20  final judgment, pertaining to the action or proceeding, whether 
257.21  part of the permanent record of the court or of a file in the 
257.22  state department of human services or elsewhere, are subject to 
257.23  inspection only upon consent of the court and all interested 
257.24  persons, or in exceptional cases only upon an order of the court 
257.25  for good cause shown.  
257.26     (b) In all actions under this chapter in which public 
257.27  assistance is assigned under section 256.741 or the public 
257.28  authority provides services to a party or parties to the action, 
257.29  notwithstanding statutory or other authorization for the public 
257.30  authority to release private data on the location of a party to 
257.31  the action, information on the location of one party may not be 
257.32  released by the public authority to the other party if:  
257.33     (1) the public authority has knowledge that a protective 
257.34  order with respect to the other party has been entered; or 
257.35     (2) the public authority has reason to believe that the 
257.36  release of the information may result in physical or emotional 
258.1   harm to the other party. 
258.2      Sec. 26.  Minnesota Statutes 1996, section 257.75, 
258.3   subdivision 2, is amended to read: 
258.4      Subd. 2.  [REVOCATION OF RECOGNITION.] A recognition may be 
258.5   revoked in a writing signed by the mother or father before a 
258.6   notary public and filed with the state registrar of vital 
258.7   statistics within the earlier of 30 days after the recognition 
258.8   is executed or the date of an administrative or judicial hearing 
258.9   relating to the child in which the revoking party is a party to 
258.10  the related action.  A joinder in a recognition may be revoked 
258.11  in a writing signed by the man who executed the joinder and 
258.12  filed with the state registrar of vital statistics within 30 
258.13  days after the joinder is executed.  Upon receipt of a 
258.14  revocation of the recognition of parentage or joinder in a 
258.15  recognition, the state registrar of vital statistics shall 
258.16  forward a copy of the revocation to the nonrevoking parent, or, 
258.17  in the case of a joinder in a recognition, to the mother and 
258.18  father who executed the recognition.  
258.19     Sec. 27.  Minnesota Statutes 1996, section 257.75, 
258.20  subdivision 3, is amended to read: 
258.21     Subd. 3.  [EFFECT OF RECOGNITION.] Subject to subdivision 2 
258.22  and section 257.55, subdivision 1, paragraph (g) or (h), the 
258.23  recognition has the force and effect of a judgment or order 
258.24  determining the existence of the parent and child relationship 
258.25  under section 257.66.  If the conditions in section 257.55, 
258.26  subdivision 1, paragraph (g) or (h), exist, the recognition 
258.27  creates only a presumption of paternity for purposes of sections 
258.28  257.51 to 257.74.  Once a recognition has been properly executed 
258.29  and filed with the state registrar of vital statistics, if there 
258.30  are no competing presumptions of paternity, a judicial or 
258.31  administrative court may not allow further action to determine 
258.32  parentage regarding the signator of the recognition.  Until an 
258.33  order is entered granting custody to another, the mother has 
258.34  sole custody.  The recognition is: 
258.35     (1) a basis for bringing an action to award custody or 
258.36  visitation rights to either parent, establishing a child support 
259.1   obligation which may include up to the two years immediately 
259.2   preceding the commencement of the action, ordering a 
259.3   contribution by a parent under section 256.87, or ordering a 
259.4   contribution to the reasonable expenses of the mother's 
259.5   pregnancy and confinement, as provided under section 257.66, 
259.6   subdivision 3, or ordering reimbursement for the costs of blood 
259.7   or genetic testing, as provided under section 257.69, 
259.8   subdivision 2; 
259.9      (2) determinative for all other purposes related to the 
259.10  existence of the parent and child relationship; and 
259.11     (3) entitled to full faith and credit in other 
259.12  jurisdictions.  
259.13     Sec. 28.  Minnesota Statutes 1996, section 257.75, 
259.14  subdivision 4, is amended to read: 
259.15     Subd. 4.  [ACTION TO VACATE RECOGNITION.] (a) An action to 
259.16  vacate a recognition of paternity may be brought by the mother, 
259.17  father, husband or former husband who executed a joinder, or the 
259.18  child.  A mother, father, or husband or former husband who 
259.19  executed a joinder must bring the action within one year of the 
259.20  execution of the recognition or within six months after the 
259.21  person bringing the action obtains the results of blood or 
259.22  genetic tests that indicate that the man who executed the 
259.23  recognition is not the father of the child.  A child must bring 
259.24  an action to vacate within six months after the child obtains 
259.25  the result of blood or genetic tests that indicate that the man 
259.26  who executed the recognition is not the father of the child, or 
259.27  within one year of reaching the age of majority, whichever is 
259.28  later.  If the court finds a prima facie basis for vacating the 
259.29  recognition, the court shall order the child, mother, father, 
259.30  and husband or former husband who executed a joinder to submit 
259.31  to blood tests.  If the court issues an order for the taking of 
259.32  blood tests, the court shall require the party seeking to vacate 
259.33  the recognition to make advance payment for the costs of the 
259.34  blood tests.  If the party fails to pay for the costs of the 
259.35  blood tests, the court shall dismiss the action to vacate with 
259.36  prejudice.  The court may also order the party seeking to vacate 
260.1   the recognition to pay the other party's reasonable attorney 
260.2   fees, costs, and disbursements.  If the results of the blood 
260.3   tests establish that the man who executed the recognition is not 
260.4   the father, the court shall vacate the recognition.  If a 
260.5   recognition is vacated, any joinder in the recognition under 
260.6   subdivision 1a is also vacated.  The court shall terminate the 
260.7   obligation of a party to pay ongoing child support based on the 
260.8   recognition.  A modification of child support based on a 
260.9   recognition may be made retroactive with respect to any period 
260.10  during which the moving party has pending a motion to vacate the 
260.11  recognition but only from the date of service of notice of the 
260.12  motion on the responding party. 
260.13     (b) The burden of proof in an action to vacate the 
260.14  recognition is on the moving party.  The moving party must 
260.15  request the vacation on the basis of fraud, duress, or material 
260.16  mistake of fact.  The legal responsibilities in existence at the 
260.17  time of an action to vacate, including child support 
260.18  obligations, may not be suspended during the proceeding, except 
260.19  for good cause shown. 
260.20     Sec. 29.  Minnesota Statutes 1996, section 257.75, 
260.21  subdivision 5, is amended to read: 
260.22     Subd. 5.  [RECOGNITION FORM.] The commissioner of human 
260.23  services shall prepare a form for the recognition of parentage 
260.24  under this section.  In preparing the form, the commissioner 
260.25  shall consult with the individuals specified in subdivision 6.  
260.26  The recognition form must be drafted so that the force and 
260.27  effect of the recognition, the alternatives to executing a 
260.28  recognition, and the benefits and responsibilities of 
260.29  establishing paternity are clear and understandable.  The form 
260.30  must include a notice regarding the finality of a recognition 
260.31  and the revocation procedure under subdivision 2.  The form must 
260.32  include a provision for each parent to verify that the parent 
260.33  has read or viewed the educational materials prepared by the 
260.34  commissioner of human services describing the recognition of 
260.35  paternity.  The individual providing the form to the parents for 
260.36  execution shall provide oral notice of the rights, 
261.1   responsibilities, and alternatives to executing the 
261.2   recognition.  Notice may be provided by audiotape, videotape, or 
261.3   similar means.  Each parent must receive a copy of the 
261.4   recognition. 
261.5      Sec. 30.  Minnesota Statutes 1996, section 257.75, 
261.6   subdivision 7, is amended to read: 
261.7      Subd. 7.  [HOSPITAL AND DEPARTMENT OF HEALTH DISTRIBUTION 
261.8   OF EDUCATIONAL MATERIALS; RECOGNITION FORM.] Hospitals that 
261.9   provide obstetric services and the state registrar of vital 
261.10  statistics shall distribute the educational materials and 
261.11  recognition of parentage forms prepared by the commissioner of 
261.12  human services to new parents and shall assist parents in 
261.13  understanding the recognition of parentage form, including 
261.14  following the provisions for notice under subdivision 5.  On and 
261.15  after January 1, 1994, hospitals may not distribute the 
261.16  declaration of parentage forms. 
261.17     Sec. 31.  Minnesota Statutes 1996, section 299C.46, 
261.18  subdivision 3, is amended to read: 
261.19     Subd. 3.  [AUTHORIZED USE, FEE.] (a) The data 
261.20  communications network shall be used exclusively by:  
261.21     (1) criminal justice agencies in connection with the 
261.22  performance of duties required by law; 
261.23     (2) agencies investigating federal security clearances of 
261.24  individuals for assignment or retention in federal employment 
261.25  with duties related to national security, as required by Public 
261.26  Law Number 99-1691; and 
261.27     (3) other agencies to the extent necessary to provide for 
261.28  protection of the public or property in an emergency or disaster 
261.29  situation; and 
261.30     (4) the public authority responsible for child support 
261.31  enforcement in connection with the performance of its duties.  
261.32     (b) The commissioner of public safety shall establish a 
261.33  monthly network access charge to be paid by each participating 
261.34  criminal justice agency.  The network access charge shall be a 
261.35  standard fee established for each terminal, computer, or other 
261.36  equipment directly addressable by the criminal justice data 
262.1   communications network, as follows:  January 1, 1984 to December 
262.2   31, 1984, $40 connect fee per month; January 1, 1985 and 
262.3   thereafter, $50 connect fee per month.  
262.4      (c) The commissioner of public safety is authorized to 
262.5   arrange for the connection of the data communications network 
262.6   with the criminal justice information system of the federal 
262.7   government, any adjacent state, or Canada. 
262.8      Sec. 32.  Minnesota Statutes 1996, section 508.63, is 
262.9   amended to read: 
262.10     508.63 [REGISTRATION OF INSTRUMENTS CREATING LIENS; 
262.11  JUDGMENTS.] 
262.12     No judgment requiring the payment of money shall be a lien 
262.13  upon registered land, except as herein provided.  Any person 
262.14  claiming such lien shall file with the registrar a certified 
262.15  copy of the judgment, together with a written statement 
262.16  containing a description of each parcel of land in which the 
262.17  judgment debtor has a registered interest and upon which the 
262.18  lien is claimed, and a proper reference to the certificate or 
262.19  certificates of title to such land.  Upon filing such copy and 
262.20  statement, the registrar shall enter a memorial of such judgment 
262.21  upon each certificate designated in such statement, and the 
262.22  judgment shall thereupon be and become a lien upon the judgment 
262.23  debtor's interest in the land described in such certificate or 
262.24  certificates.  At any time after filing the certified copy of 
262.25  such judgment, any person claiming the lien may, by filing a 
262.26  written statement, as herein provided, cause a memorial of such 
262.27  judgment to be entered upon any certificate of title to land in 
262.28  which the judgment debtor has a registered interest and not 
262.29  described in any previous statement and the judgment shall 
262.30  thereupon be and become a lien upon the judgment debtor's 
262.31  interest in such land.  The public authority for child support 
262.32  enforcement may present for filing a notice of judgment lien 
262.33  under section 548.091 with identifying information for a parcel 
262.34  of real property.  Upon receipt of the notice of judgment lien, 
262.35  the registrar shall enter a memorial of it upon each certificate 
262.36  which can reasonably be identified as owned by the judgment 
263.1   debtor on the basis of the information provided.  The judgment 
263.2   shall survive and the lien thereof shall continue for a period 
263.3   of ten years from the date of the judgment and no longer, and 
263.4   the registrar of titles shall not carry forward to a new 
263.5   certificate of title the memorial of the judgment after that 
263.6   period.  In every case where an instrument of any description, 
263.7   or a copy of any writ, order, or decree, is required by law to 
263.8   be filed or recorded in order to create or preserve any lien, 
263.9   writ, or attachment upon unregistered land, such instrument or 
263.10  copy, if intended to affect registered land, shall, in lieu of 
263.11  recording, be filed and registered with the registrar.  In 
263.12  addition to any facts required by law to be stated in such 
263.13  instruments to entitle them to be filed or recorded, they shall 
263.14  also contain a reference to the number of the certificate of 
263.15  title of the land to be affected, and, if the attachment, 
263.16  charge, or lien is not claimed on all the land described in any 
263.17  certificate of title, such instrument shall contain a 
263.18  description sufficient to identify the land. 
263.19     Sec. 33.  Minnesota Statutes 1996, section 508A.63, is 
263.20  amended to read: 
263.21     508A.63 [REGISTRATION OF INSTRUMENTS CREATING LIENS; 
263.22  JUDGMENTS.] 
263.23     No judgment requiring the payment of money shall be a lien 
263.24  upon land registered under sections 508A.01 to 508A.85, except 
263.25  as herein provided.  Any person claiming a lien shall file with 
263.26  the registrar a certified copy of the judgment, together with a 
263.27  written statement containing a description of each parcel of 
263.28  land in which the judgment debtor has a registered interest and 
263.29  upon which the lien is claimed, and a proper reference to the 
263.30  CPT or CPTs to the land.  Upon filing the copy and statement, 
263.31  the registrar shall enter a memorial of the judgment upon each 
263.32  CPT designated in the statement, and the judgment shall then be 
263.33  and become a lien upon the judgment debtor's interest in the 
263.34  land described in CPT or CPTs.  At any time after filing the 
263.35  certified copy of the judgment, any person claiming the lien 
263.36  may, by filing a written statement, as herein provided, cause a 
264.1   memorial of the judgment to be entered upon any CPT to land in 
264.2   which the judgment debtor has a registered interest and not 
264.3   described in any previous statement and the judgment shall then 
264.4   be and become a lien upon the judgment debtor's interest in the 
264.5   land.  The public authority for child support enforcement may 
264.6   present for filing a notice of judgment lien under section 
264.7   548.091 with identifying information for a parcel of real 
264.8   property.  Upon receipt of the notice of judgment lien, the 
264.9   registrar shall enter a memorial of it upon each certificate of 
264.10  possessory title which reasonably can be identified as owned by 
264.11  the judgment debtor on the basis of the information provided.  
264.12  The judgment shall survive and the lien thereof shall continue 
264.13  for a period of ten years from the date of the judgment and no 
264.14  longer; and the registrar shall not carry forward to a new 
264.15  certificate of title the memorial of the judgment after that 
264.16  period.  In every case where an instrument of any description, 
264.17  or a copy of any writ, order, or decree, is required by law to 
264.18  be filed or recorded in order to create or preserve any lien, 
264.19  writ, or attachment upon unregistered land, the instrument or 
264.20  copy, if intended to affect registered land, shall, in lieu of 
264.21  recording, be filed and registered with the registrar.  In 
264.22  addition to any facts required by law to be stated in the 
264.23  instruments to entitle them to be filed or recorded, they shall 
264.24  also contain a reference to the number of the CPT of the land to 
264.25  be affected.  If the attachment, charge, or lien is not claimed 
264.26  on all the land described in any CPT, the instrument shall 
264.27  contain a description sufficient to identify the land. 
264.28     Sec. 34.  Minnesota Statutes 1996, section 517.08, 
264.29  subdivision 1a, is amended to read: 
264.30     Subd. 1a.  Application for a marriage license shall be made 
264.31  upon a form provided for the purpose and shall contain the 
264.32  following information: 
264.33     the full names of the parties, 
264.34     their post office addresses and county and state of 
264.35  residence, 
264.36     their full ages, 
265.1      if either party has previously been married, the party's 
265.2   married name, and the date, place and court in which the 
265.3   marriage was dissolved or annulled or the date and place of 
265.4   death of the former spouse, 
265.5      if either party is a minor, the name and address of the 
265.6   minor's parents or guardian, 
265.7      whether the parties are related to each other, and, if so, 
265.8   their relationship, 
265.9      the name and date of birth of any child of which both 
265.10  parties are parents, born before the making of the application, 
265.11  unless their parental rights and the parent and child 
265.12  relationship with respect to the child have been terminated, 
265.13     address of the bride and groom after the marriage to which 
265.14  the court administrator shall send a certified copy of the 
265.15  marriage certificate, 
265.16     and the full names the parties will have after marriage and 
265.17  the parties' social security numbers.  The social security 
265.18  numbers must be collected for the application but must not 
265.19  appear on the marriage license. 
265.20     Sec. 35.  Minnesota Statutes 1996, section 518.005, is 
265.21  amended by adding a subdivision to read: 
265.22     Subd. 5.  [PROHIBITED DISCLOSURE.] In all proceedings under 
265.23  this chapter in which public assistance is assigned under 
265.24  section 256.741 or the public authority provides services to a 
265.25  party or parties to the proceedings, notwithstanding statutory 
265.26  or other authorization for the public authority to release 
265.27  private data on the location of a party to the action, 
265.28  information on the location of one party may not be released by 
265.29  the public authority to the other party if: 
265.30     (1) the public authority has knowledge that a protective 
265.31  order with respect to the other party has been entered; or 
265.32     (2) the public authority has reason to believe that the 
265.33  release of the information may result in physical or emotional 
265.34  harm to the other party. 
265.35     Sec. 36.  Minnesota Statutes 1996, section 518.10, is 
265.36  amended to read: 
266.1      518.10 [REQUISITES OF PETITION.] 
266.2      The petition for dissolution of marriage or legal 
266.3   separation shall state and allege: 
266.4      (a) The name and, address, and, in circumstances in which 
266.5   child support or spousal maintenance will be addressed, social 
266.6   security number of the petitioner and any prior or other name 
266.7   used by the petitioner; 
266.8      (b) The name and, if known, the address and, in 
266.9   circumstances in which child support or spousal maintenance will 
266.10  be addressed, social security number of the respondent and any 
266.11  prior or other name used by the respondent and known to the 
266.12  petitioner; 
266.13     (c) The place and date of the marriage of the parties; 
266.14     (d) In the case of a petition for dissolution, that either 
266.15  the petitioner or the respondent or both:  
266.16     (1) Has resided in this state for not less than 180 days 
266.17  immediately preceding the commencement of the proceeding, or 
266.18     (2) Has been a member of the armed services and has been 
266.19  stationed in this state for not less than 180 days immediately 
266.20  preceding the commencement of the proceeding, or 
266.21     (3) Has been a domiciliary of this state for not less than 
266.22  180 days immediately preceding the commencement of the 
266.23  proceeding; 
266.24     (e) The name at the time of the petition and any prior or 
266.25  other name, age and date of birth of each living minor or 
266.26  dependent child of the parties born before the marriage or born 
266.27  or adopted during the marriage and a reference to, and the 
266.28  expected date of birth of, a child of the parties conceived 
266.29  during the marriage but not born; 
266.30     (f) Whether or not a separate proceeding for dissolution, 
266.31  legal separation, or custody is pending in a court in this state 
266.32  or elsewhere; 
266.33     (g) In the case of a petition for dissolution, that there 
266.34  has been an irretrievable breakdown of the marriage 
266.35  relationship; 
266.36     (h) In the case of a petition for legal separation, that 
267.1   there is a need for a decree of legal separation; and 
267.2      (i) Any temporary or permanent maintenance, child support, 
267.3   child custody, disposition of property, attorneys' fees, costs 
267.4   and disbursements applied for without setting forth the amounts. 
267.5      The petition shall be verified by the petitioner or 
267.6   petitioners, and its allegations established by competent 
267.7   evidence.  
267.8      Sec. 37.  Minnesota Statutes 1996, section 518.148, 
267.9   subdivision 2, is amended to read: 
267.10     Subd. 2.  [REQUIRED INFORMATION.] The certificate shall 
267.11  include the following information: 
267.12     (1) the full caption and file number of the case and the 
267.13  title "Certificate of Dissolution"; 
267.14     (2) the names and any prior or other names of the parties 
267.15  to the dissolution; 
267.16     (3) the names of any living minor or dependent children as 
267.17  identified in the judgment and decree; 
267.18     (4) that the marriage of the parties is dissolved; and 
267.19     (5) the date of the judgment and decree; and 
267.20     (6) the social security number of the parties to the 
267.21  dissolution and the social security number of any living minor 
267.22  or dependent children identified in the judgment and decree. 
267.23     Sec. 38.  Minnesota Statutes 1996, section 518.171, 
267.24  subdivision 1, is amended to read: 
267.25     Subdivision 1.  [ORDER.] Compliance with this section 
267.26  constitutes compliance with a qualified medical child support 
267.27  order as described in the federal Employee Retirement Income 
267.28  Security Act of 1974 (ERISA) as amended by the federal Omnibus 
267.29  Budget Reconciliation Act of 1993 (OBRA).  
267.30     (a) Every child support order must: 
267.31     (1) expressly assign or reserve the responsibility for 
267.32  maintaining medical insurance for the minor children and the 
267.33  division of uninsured medical and dental costs; and 
267.34     (2) contain the names and, last known addresses, if any and 
267.35  social security number of the custodial parent and noncustodial 
267.36  parent, of the dependents unless the court prohibits the 
268.1   inclusion of an address or social security number and orders the 
268.2   custodial parent to provide the address and social security 
268.3   number to the administrator of the health plan.  The court shall 
268.4   order the party with the better group dependent health and 
268.5   dental insurance coverage or health insurance plan to name the 
268.6   minor child as beneficiary on any health and dental insurance 
268.7   plan that is available to the party on: 
268.8      (i) a group basis; 
268.9      (ii) through an employer or union; or 
268.10     (iii) through a group health plan governed under the ERISA 
268.11  and included within the definitions relating to health plans 
268.12  found in section 62A.011, 62A.048, or 62E.06, subdivision 2.  
268.13  "Health insurance" or "health insurance coverage" as used in 
268.14  this section means coverage that is comparable to or better than 
268.15  a number two qualified plan as defined in section 62E.06, 
268.16  subdivision 2.  "Health insurance" or "health insurance 
268.17  coverage" as used in this section does not include medical 
268.18  assistance provided under chapter 256, 256B, or 256D. 
268.19     (b) If the court finds that dependent health or dental 
268.20  insurance is not available to the obligor or obligee on a group 
268.21  basis or through an employer or union, or that group insurance 
268.22  is not accessible to the obligee, the court may require the 
268.23  obligor (1) to obtain other dependent health or dental 
268.24  insurance, (2) to be liable for reasonable and necessary medical 
268.25  or dental expenses of the child, or (3) to pay no less than $50 
268.26  per month to be applied to the medical and dental expenses of 
268.27  the children or to the cost of health insurance dependent 
268.28  coverage. 
268.29     (c) If the court finds that the available dependent health 
268.30  or dental insurance does not pay all the reasonable and 
268.31  necessary medical or dental expenses of the child, including any 
268.32  existing or anticipated extraordinary medical expenses, and the 
268.33  court finds that the obligor has the financial ability to 
268.34  contribute to the payment of these medical or dental expenses, 
268.35  the court shall require the obligor to be liable for all or a 
268.36  portion of the medical or dental expenses of the child not 
269.1   covered by the required health or dental plan.  Medical and 
269.2   dental expenses include, but are not limited to, necessary 
269.3   orthodontia and eye care, including prescription lenses. 
269.4      (d) Unless otherwise agreed by the parties and approved by 
269.5   the court, if the court finds that the obligee is not receiving 
269.6   public assistance for the child and has the financial ability to 
269.7   contribute to the cost of medical and dental expenses for the 
269.8   child, including the cost of insurance, the court shall order 
269.9   the obligee and obligor to each assume a portion of these 
269.10  expenses based on their proportionate share of their total net 
269.11  income as defined in section 518.54, subdivision 6. 
269.12     (e) Payments ordered under this section are subject to 
269.13  section 518.611.  An obligee who fails to apply payments 
269.14  received to the medical expenses of the dependents may be found 
269.15  in contempt of this order. 
269.16     Sec. 39.  Minnesota Statutes 1996, section 518.171, 
269.17  subdivision 4, is amended to read: 
269.18     Subd. 4.  [EFFECT OF ORDER.] (a) The order is binding on 
269.19  the employer or union and the health and dental insurance plan 
269.20  when service under subdivision 3 has been made.  In the case of 
269.21  an obligor who changes employment and is required to provide 
269.22  health coverage for the child, a new employer that provides 
269.23  health care coverage shall enroll the child in the obligor's 
269.24  health plan upon receipt of an order or notice for health 
269.25  insurance, unless the obligor contests the enrollment.  The 
269.26  obligor may contest the enrollment on the limited grounds that 
269.27  the enrollment is improper due to mistake of fact or that the 
269.28  enrollment meets the requirements of section 518.64, subdivision 
269.29  2.  If the obligor chooses to contest the enrollment, the 
269.30  obligor must do so no later than 15 days after the employer 
269.31  notifies the obligor of the enrollment, by doing all of the 
269.32  following: 
269.33     (1) filing a request for contested hearing according to 
269.34  section 518.5511, subdivision 3a; 
269.35     (2) serving a copy of the request for contested hearing 
269.36  upon the public authority and the obligee; and 
270.1      (3) securing a date for the contested hearing no later than 
270.2   45 days after the notice of enrollment. 
270.3      (b) The enrollment must remain in place during the time 
270.4   period in which the obligor contests the withholding. 
270.5   An employer or union that is included under ERISA may not deny 
270.6   enrollment based on exclusionary clauses described in section 
270.7   62A.048.  Upon receipt of the order, or upon application of the 
270.8   obligor pursuant according to the order or notice, the employer 
270.9   or union and its health and dental insurance plan shall enroll 
270.10  the minor child as a beneficiary in the group insurance plan and 
270.11  withhold any required premium from the obligor's income or 
270.12  wages.  If more than one plan is offered by the employer or 
270.13  union, the child shall be enrolled in the least costly health 
270.14  insurance plan otherwise available to the obligor that is 
270.15  comparable to a number two qualified plan.  If the obligor is 
270.16  not enrolled in a health insurance plan, the employer or union 
270.17  shall also enroll the obligor in the chosen plan if enrollment 
270.18  of the obligor is necessary in order to obtain dependent 
270.19  coverage under the plan.  Enrollment of dependents and the 
270.20  obligor shall be immediate and not dependent upon open 
270.21  enrollment periods.  Enrollment is not subject to the 
270.22  underwriting policies described in section 62A.048.  
270.23     (b) (c) An employer or union that willfully fails to comply 
270.24  with the order is liable for any health or dental expenses 
270.25  incurred by the dependents during the period of time the 
270.26  dependents were eligible to be enrolled in the insurance 
270.27  program, and for any other premium costs incurred because the 
270.28  employer or union willfully failed to comply with the order.  An 
270.29  employer or union that fails to comply with the order is subject 
270.30  to contempt under section 518.615 and is also subject to a fine 
270.31  of $500 to be paid to the obligee or public authority.  Fines 
270.32  paid to the public authority are designated for child support 
270.33  enforcement services. 
270.34     (c) (d) Failure of the obligor to execute any documents 
270.35  necessary to enroll the dependent in the group health and dental 
270.36  insurance plan will not affect the obligation of the employer or 
271.1   union and group health and dental insurance plan to enroll the 
271.2   dependent in a plan.  Information and authorization provided by 
271.3   the public authority responsible for child support enforcement, 
271.4   or by the custodial parent or guardian, is valid for the 
271.5   purposes of meeting enrollment requirements of the health plan.  
271.6   The insurance coverage for a child eligible under subdivision 5 
271.7   shall not be terminated except as authorized in subdivision 5. 
271.8      Sec. 40.  Minnesota Statutes 1996, section 518.54, is 
271.9   amended by adding a subdivision to read: 
271.10     Subd. 4a.  [SUPPORT ORDER.] "Support order" means a 
271.11  judgment, decree, or order, whether temporary, final, or subject 
271.12  to modification, issued by a court or administrative agency of 
271.13  competent jurisdiction, for the support and maintenance of a 
271.14  child, including a child who has attained the age of majority 
271.15  under the law of the issuing state, or a child and the parent 
271.16  with whom the child is living, that provides for monetary 
271.17  support, child care, medical support including expenses for 
271.18  confinement and pregnancy, arrearages, or reimbursement, and 
271.19  that may include related costs and fees, interest and penalties, 
271.20  income withholding, and other relief. This definition applies to 
271.21  orders issued under this chapter and chapters 256, 257, and 518C.
271.22     Sec. 41.  Minnesota Statutes 1996, section 518.54, 
271.23  subdivision 6, is amended to read: 
271.24     Subd. 6.  [INCOME.] (a) "Income" means any form of periodic 
271.25  payment to an individual including, but not limited to, wages, 
271.26  salaries, payments to an independent contractor, workers' 
271.27  compensation, reemployment insurance, annuity, military and 
271.28  naval retirement, pension and disability payments.  Benefits 
271.29  received under sections 256.72 to 256.87 and chapter 256D Title 
271.30  IV-A of the Social Security Act are not income under this 
271.31  section. 
271.32     (b) Income also includes nonperiodic distributions of 
271.33  workers' compensation claims, reemployment claims, personal 
271.34  injury recoveries for lost wages or salary, proceeds from a 
271.35  lawsuit for lost wages or salary, severance pay, and bonuses. 
271.36     Sec. 42.  Minnesota Statutes 1996, section 518.551, 
272.1   subdivision 12, is amended to read: 
272.2      Subd. 12.  [OCCUPATIONAL LICENSE SUSPENSION.] (a) Upon 
272.3   motion of an obligee, if the court finds that the obligor is or 
272.4   may be licensed by a licensing board listed in section 214.01 or 
272.5   other state, county, or municipal agency or board that issues an 
272.6   occupational license and the obligor is in arrears in 
272.7   court-ordered child support or maintenance payments or both in 
272.8   an amount equal to or greater than three times the obligor's 
272.9   total monthly support and maintenance payments and is not in 
272.10  compliance with a written payment agreement regarding both 
272.11  current support and arrearages approved by the court, an 
272.12  administrative law judge, or the public authority, the 
272.13  administrative law judge, or the court shall direct the 
272.14  licensing board or other licensing agency to suspend the license 
272.15  under section 214.101.  The court's order must be stayed for 90 
272.16  days in order to allow the obligor to execute a written payment 
272.17  agreement regarding both current support and arrearages.  The 
272.18  payment agreement must be approved by either the court or the 
272.19  public authority responsible for child support enforcement.  If 
272.20  the obligor has not executed or is not in compliance with a 
272.21  written payment agreement regarding both current support and 
272.22  arrearages after the 90 days expires, the court's order becomes 
272.23  effective.  If the obligor is a licensed attorney, the court 
272.24  shall report the matter to the lawyers professional 
272.25  responsibility board for appropriate action in accordance with 
272.26  the rules of professional conduct.  The remedy under this 
272.27  subdivision is in addition to any other enforcement remedy 
272.28  available to the court. 
272.29     (b) If a public authority responsible for child support 
272.30  enforcement finds that the obligor is or may be licensed by a 
272.31  licensing board listed in section 214.01 or other state, county, 
272.32  or municipal agency or board that issues an occupational license 
272.33  and the obligor is in arrears in court-ordered child support or 
272.34  maintenance payments or both in an amount equal to or greater 
272.35  than three times the obligor's total monthly support and 
272.36  maintenance payments and is not in compliance with a written 
273.1   payment agreement regarding both current support and arrearages 
273.2   approved by the court, an administrative law judge, or the 
273.3   public authority, the court, an administrative law judge, or the 
273.4   public authority shall direct the licensing board or other 
273.5   licensing agency to suspend the license under section 214.101.  
273.6   If the obligor is a licensed attorney, the public authority may 
273.7   report the matter to the lawyers professional responsibility 
273.8   board for appropriate action in accordance with the rules of 
273.9   professional conduct.  The remedy under this subdivision is in 
273.10  addition to any other enforcement remedy available to the public 
273.11  authority. 
273.12     (c) At least 90 days before notifying a licensing authority 
273.13  or the lawyers professional responsibility board under paragraph 
273.14  (b), the public authority shall mail a written notice to the 
273.15  license holder addressed to the license holder's last known 
273.16  address that the public authority intends to seek license 
273.17  suspension under this subdivision and that the license holder 
273.18  must request a hearing within 30 days in order to contest the 
273.19  suspension.  If the license holder makes a written request for a 
273.20  hearing within 30 days of the date of the notice, either a court 
273.21  hearing or a contested administrative proceeding must be held 
273.22  under section 518.5511, subdivision 4.  Notwithstanding any law 
273.23  to the contrary, the license holder must be served with 14 days' 
273.24  notice in writing specifying the time and place of the hearing 
273.25  and the allegations against the license holder.  The notice may 
273.26  be served personally or by mail.  If the public authority does 
273.27  not receive a request for a hearing within 30 days of the date 
273.28  of the notice, and the obligor does not execute a written 
273.29  payment agreement regarding both current support and arrearages 
273.30  approved by the court, an administrative law judge or the public 
273.31  authority within 90 days of the date of the notice, the public 
273.32  authority shall direct the licensing board or other licensing 
273.33  agency to suspend the obligor's license under paragraph (b), or 
273.34  shall report the matter to the lawyers professional 
273.35  responsibility board. 
273.36     (d) The administrative law judge, on behalf of the public 
274.1   authority, or the court shall notify the lawyers professional 
274.2   responsibility board for appropriate action in accordance with 
274.3   the rules of professional responsibility conduct or order the 
274.4   licensing board or licensing agency to suspend the license if 
274.5   the judge finds that: 
274.6      (1) the person is licensed by a licensing board or other 
274.7   state agency that issues an occupational license; 
274.8      (2) the person has not made full payment of arrearages 
274.9   found to be due by the public authority; and 
274.10     (3) the person has not executed or is not in compliance 
274.11  with a payment plan approved by the court, an administrative law 
274.12  judge, or the public authority. 
274.13     (e) Within 15 days of the date on which the obligor either 
274.14  makes full payment of arrearages found to be due by the court or 
274.15  public authority or executes and initiates good faith compliance 
274.16  with a written payment plan approved by the court, an 
274.17  administrative law judge, or the public authority, the court, an 
274.18  administrative law judge, or the public authority responsible 
274.19  for child support enforcement shall notify the licensing board 
274.20  or licensing agency or the lawyers professional responsibility 
274.21  board that the obligor is no longer ineligible for license 
274.22  issuance, reinstatement, or renewal under this subdivision. 
274.23     (f) In addition to the criteria established under this 
274.24  section for the suspension of an obligor's occupational license, 
274.25  a court, an administrative law judge, or the public authority 
274.26  may direct the licensing board or other licensing agency to 
274.27  suspend the license of a party who has failed, after receiving 
274.28  notice, to comply with a subpoena relating to a paternity or 
274.29  child support proceeding. 
274.30     (g) The license of an obligor who fails to remain in 
274.31  compliance with an approved payment agreement may be suspended.  
274.32  Notice to the obligor of an intent to suspend under this 
274.33  paragraph must be served by first class mail at the obligor's 
274.34  last known address and must include a notice of hearing.  The 
274.35  notice must be served upon the obligor not less than ten days 
274.36  before the date of the hearing.  If the obligor appears at the 
275.1   hearing and the judge determines that the obligor has failed to 
275.2   comply with an approved payment agreement, the judge shall 
275.3   notify the occupational licensing board or agency to suspend the 
275.4   obligor's license under paragraph (c).  If the obligor fails to 
275.5   appear at the hearing, the public authority may notify the 
275.6   occupational or licensing board to suspend the obligor's license 
275.7   under paragraph (c). 
275.8      Sec. 43.  Minnesota Statutes 1996, section 518.551, 
275.9   subdivision 13, is amended to read: 
275.10     Subd. 13.  [DRIVER'S LICENSE SUSPENSION.] (a) Upon motion 
275.11  of an obligee, which has been properly served on the obligor and 
275.12  upon which there has been an opportunity for hearing, if a court 
275.13  finds that the obligor has been or may be issued a driver's 
275.14  license by the commissioner of public safety and the obligor is 
275.15  in arrears in court-ordered child support or maintenance 
275.16  payments, or both, in an amount equal to or greater than three 
275.17  times the obligor's total monthly support and maintenance 
275.18  payments and is not in compliance with a written payment 
275.19  agreement regarding both current support and arrearages approved 
275.20  by the court, an administrative law judge, or the public 
275.21  authority, the court shall order the commissioner of public 
275.22  safety to suspend the obligor's driver's license.  The court's 
275.23  order must be stayed for 90 days in order to allow the obligor 
275.24  to execute a written payment agreement regarding both current 
275.25  support and arrearages, which payment agreement must be approved 
275.26  by either the court or the public authority responsible for 
275.27  child support enforcement.  If the obligor has not executed or 
275.28  is not in compliance with a written payment agreement regarding 
275.29  both current support and arrearages after the 90 days expires, 
275.30  the court's order becomes effective and the commissioner of 
275.31  public safety shall suspend the obligor's driver's license.  The 
275.32  remedy under this subdivision is in addition to any other 
275.33  enforcement remedy available to the court.  An obligee may not 
275.34  bring a motion under this paragraph within 12 months of a denial 
275.35  of a previous motion under this paragraph. 
275.36     (b) If a public authority responsible for child support 
276.1   enforcement determines that the obligor has been or may be 
276.2   issued a driver's license by the commissioner of public safety 
276.3   and the obligor is in arrears in court-ordered child support or 
276.4   maintenance payments or both in an amount equal to or greater 
276.5   than three times the obligor's total monthly support and 
276.6   maintenance payments and not in compliance with a written 
276.7   payment agreement regarding both current support and arrearages 
276.8   approved by the court, an administrative law judge, or the 
276.9   public authority, the public authority shall direct the 
276.10  commissioner of public safety to suspend the obligor's driver's 
276.11  license.  The remedy under this subdivision is in addition to 
276.12  any other enforcement remedy available to the public authority. 
276.13     (c) At least 90 days prior to notifying the commissioner of 
276.14  public safety pursuant according to paragraph (b), the public 
276.15  authority must mail a written notice to the obligor at the 
276.16  obligor's last known address, that it intends to seek suspension 
276.17  of the obligor's driver's license and that the obligor must 
276.18  request a hearing within 30 days in order to contest the 
276.19  suspension.  If the obligor makes a written request for a 
276.20  hearing within 30 days of the date of the notice, either a court 
276.21  hearing or a contested administrative proceeding must be held 
276.22  under section 518.5511, subdivision 4.  Notwithstanding any law 
276.23  to the contrary, the obligor must be served with 14 days' notice 
276.24  in writing specifying the time and place of the hearing and the 
276.25  allegations against the obligor.  The notice may be served 
276.26  personally or by mail.  If the public authority does not receive 
276.27  a request for a hearing within 30 days of the date of the 
276.28  notice, and the obligor does not execute a written payment 
276.29  agreement regarding both current support and arrearages approved 
276.30  by the court, an administrative law judge, or the public 
276.31  authority within 90 days of the date of the notice, the public 
276.32  authority shall direct the commissioner of public safety to 
276.33  suspend the obligor's driver's license under paragraph (b). 
276.34     (d) At a hearing requested by the obligor under paragraph 
276.35  (c), and on finding that the obligor is in arrears in 
276.36  court-ordered child support or maintenance payments or both in 
277.1   an amount equal to or greater than three times the obligor's 
277.2   total monthly support and maintenance payments, the district 
277.3   court or the administrative law judge shall order the 
277.4   commissioner of public safety to suspend the obligor's driver's 
277.5   license or operating privileges unless the court or 
277.6   administrative law judge determines that the obligor has 
277.7   executed and is in compliance with a written payment agreement 
277.8   regarding both current support and arrearages approved by the 
277.9   court, an administrative law judge, or the public authority. 
277.10     (e) An obligor whose driver's license or operating 
277.11  privileges are suspended may provide proof to the court or the 
277.12  public authority responsible for child support enforcement that 
277.13  the obligor is in compliance with all written payment agreements 
277.14  regarding both current support and arrearages.  Within 15 days 
277.15  of the receipt of that proof, the court or public authority 
277.16  shall inform the commissioner of public safety that the 
277.17  obligor's driver's license or operating privileges should no 
277.18  longer be suspended. 
277.19     (f) On January 15, 1997, and every two years after that, 
277.20  the commissioner of human services shall submit a report to the 
277.21  legislature that identifies the following information relevant 
277.22  to the implementation of this section: 
277.23     (1) the number of child support obligors notified of an 
277.24  intent to suspend a driver's license; 
277.25     (2) the amount collected in payments from the child support 
277.26  obligors notified of an intent to suspend a driver's license; 
277.27     (3) the number of cases paid in full and payment agreements 
277.28  executed in response to notification of an intent to suspend a 
277.29  driver's license; 
277.30     (4) the number of cases in which there has been 
277.31  notification and no payments or payment agreements; 
277.32     (5) the number of driver's licenses suspended; and 
277.33     (6) the cost of implementation and operation of the 
277.34  requirements of this section. 
277.35     (g) In addition to the criteria established under this 
277.36  section for the suspension of an obligor's driver's license, a 
278.1   court, an administrative law judge, or the public authority may 
278.2   direct the commissioner of public safety to suspend the license 
278.3   of a party who has failed, after receiving notice, to comply 
278.4   with a subpoena relating to a paternity or child support 
278.5   proceeding.  Notice to an obligor of intent to suspend must be 
278.6   served by first class mail at the obligor's last known address.  
278.7   The notice must inform the obligor of the right to request a 
278.8   hearing.  If the obligor makes a written request within ten days 
278.9   of the date of the hearing, a contested administrative 
278.10  proceeding must be held under section 518.5511, subdivision 4.  
278.11  At the hearing, the only issues to be considered are mistake of 
278.12  fact and whether the obligor received the subpoena. 
278.13     (h) The license of an obligor who fails to remain in 
278.14  compliance with an approved payment agreement may be suspended.  
278.15  Notice to the obligor of an intent to suspend under this 
278.16  paragraph must be served by first class mail at the obligor's 
278.17  last known address and must include a notice of hearing.  The 
278.18  notice must be served upon the obligor not less than ten days 
278.19  before the date of the hearing.  If the obligor appears at the 
278.20  hearing and the judge determines that the obligor has failed to 
278.21  comply with an approved payment agreement, the judge shall 
278.22  notify the department of public safety to suspend the obligor's 
278.23  license under paragraph (c).  If the obligor fails to appear at 
278.24  the hearing, the public authority may notify the department of 
278.25  public safety to suspend the obligor's license under paragraph 
278.26  (c). 
278.27     Sec. 44.  Minnesota Statutes 1996, section 518.5512, 
278.28  subdivision 2, is amended to read: 
278.29     Subd. 2.  [PATERNITY.] (a) After service of the notice and 
278.30  proposed order, a nonattorney employee of the public authority 
278.31  may request an administrative law judge or the district court to 
278.32  order the child, mother, or alleged father to submit to blood or 
278.33  genetic tests.  The order is effective when signed by an 
278.34  administrative law judge or the district court.  Failure to 
278.35  comply with the order for blood or genetic tests may result in a 
278.36  default determination of parentage.  
279.1      (b) If parentage is contested at the administrative 
279.2   hearing, the administrative law judge may order temporary child 
279.3   support under section 257.62, subdivision 5, and shall refer the 
279.4   case to the district court. 
279.5      (c) The district court may appoint counsel for an indigent 
279.6   alleged father only after the return of the blood or genetic 
279.7   test results from the testing laboratory. 
279.8      Sec. 45.  Minnesota Statutes 1996, section 518.5512, is 
279.9   amended by adding a subdivision to read: 
279.10     Subd. 6.  [ADMINISTRATIVE AUTHORITY.] (a) In each case in 
279.11  which support rights are assigned under section 256.741, 
279.12  subdivision 2, or where the public authority is providing 
279.13  services under an application for child support services, a 
279.14  nonattorney employee of the public authority may, without 
279.15  requirement of a court order: 
279.16     (1) recognize and enforce orders of child support agencies 
279.17  of other states; 
279.18     (2) compel by subpoena the production of all papers, books, 
279.19  records, documents, or other evidentiary material needed to 
279.20  establish a parentage or child support order or to modify or 
279.21  enforce a child support order; 
279.22     (3) change the payee to the appropriate person, 
279.23  organization, or agency authorized to receive or collect child 
279.24  support or any other person or agency designated as the 
279.25  caretaker of the child by agreement of the legal custodian or by 
279.26  court order; 
279.27     (4) order income withholding of child support under section 
279.28  518.6111; 
279.29     (5) secure assets to satisfy the debt or arrearage in cases 
279.30  in which there is a support debt or arrearage by:  (i) 
279.31  intercepting or seizing periodic or lump sum payments from state 
279.32  or local agencies, including reemployment insurance, workers' 
279.33  compensation payments, judgments, settlements, and lotteries; 
279.34  (ii) attaching and seizing assets of the obligor held in 
279.35  financial institutions or public or private retirement funds; 
279.36  and (iii) imposing liens and, in appropriate cases, forcing the 
280.1   sale of property and the distribution of proceeds; and 
280.2      (6) increase the amount of the monthly support payments to 
280.3   include amounts for debts or arrearages for the purpose of 
280.4   securing overdue support.  
280.5      (b) Subpoenas may be served anywhere within the state and 
280.6   served outside the state in the same manner as prescribed by law 
280.7   for service of process of subpoenas issued by the district court 
280.8   of this state.  When a subpoena under this subdivision is served 
280.9   on a third-party recordkeeper, written notice of the subpoena 
280.10  shall be mailed to the person who is the subject of the 
280.11  subpoenaed material at the person's last known address within 
280.12  three days of the day the subpoena is served.  This notice 
280.13  provision does not apply if there is reasonable cause to believe 
280.14  the giving of the notice may lead to interference with the 
280.15  production of the subpoenaed documents. 
280.16     (c) A person served with a subpoena may make a written 
280.17  objection to the public authority or court before the time 
280.18  specified in the subpoena for compliance.  The public authority 
280.19  or the court shall cancel or modify the subpoena, if 
280.20  appropriate.  The public authority shall pay the reasonable 
280.21  costs of producing the documents, if requested. 
280.22     (d) Subpoenas shall be enforceable in the same manner as 
280.23  subpoenas of the district court, in proceedings initiated by 
280.24  complaint of the public authority in the district court. 
280.25     Sec. 46.  Minnesota Statutes 1996, section 518.5512, is 
280.26  amended by adding a subdivision to read: 
280.27     Subd. 7.  [CONTROLLING ORDER DETERMINATION.] The public 
280.28  authority or a party may request the office of administrative 
280.29  hearings to determine a controlling order according to section 
280.30  518C.207, paragraph (c). 
280.31     Sec. 47.  Minnesota Statutes 1996, section 518.575, is 
280.32  amended to read: 
280.33     518.575 [PUBLICATION OF NAMES OF DELINQUENT CHILD SUPPORT 
280.34  OBLIGORS.] 
280.35     Subdivision 1.  [PUBLICATION OF MAKING NAMES PUBLIC.] Twice 
280.36  each year, At least once each year, the commissioner of human 
281.1   services, in consultation with the attorney general, shall 
281.2   publish a list of the names and last known addresses of each 
281.3   person and other identifying information of no more than 25 
281.4   persons who (1) is a are child support obligor obligors, 
281.5   (2) is are at least $3,000 $10,000 in arrears, and (3) is 
281.6   not in compliance with a written payment agreement regarding 
281.7   both current support and arrearages approved by the court, an 
281.8   administrative law judge, or the public authority.  The 
281.9   commissioner of human services shall publish the name of each 
281.10  obligor in the newspaper or newspapers of widest circulation in 
281.11  the area where the obligor is most likely to be residing.  For 
281.12  each publication, the commissioner shall release the list of all 
281.13  names being published not earlier than the first day on which 
281.14  names appear in any newspaper.  An obligor's name may not be 
281.15  published if the obligor claims in writing, and the commissioner 
281.16  of human services determines, there is good cause for the 
281.17  nonpayment of child support.  Good cause includes the 
281.18  following:  (i) there is a mistake in the obligor's identity or 
281.19  the amount of the obligor's arrears; (ii) arrears are reserved 
281.20  by the court or there is a pending legal action concerning the 
281.21  unpaid child support; or (iii) other circumstances as determined 
281.22  by the commissioner.  The list must be based on the best 
281.23  information available to the state at the time of 
281.24  publication are not in compliance with a written payment 
281.25  agreement regarding both current support and arrearages approved 
281.26  by the court, an administrative law judge, or the public 
281.27  authority, (4) cannot currently be located by the public 
281.28  authority for the purposes of enforcing a support order, and (5) 
281.29  have not made a support payment except tax intercept payments, 
281.30  in the preceding 12 months. 
281.31     Identifying information may include the obligor's name, 
281.32  last known address, amount owed, date of birth, photograph, the 
281.33  number of children for whom support is owed, and any additional 
281.34  information about the obligor that would assist in identifying 
281.35  or locating the obligor.  The commissioner and attorney general 
281.36  may use posters, media presentations, electronic technology, and 
282.1   other means that the commissioner and attorney general determine 
282.2   are appropriate for dissemination of the information, including 
282.3   publication on the Internet.  The commissioner and attorney 
282.4   general may make any or all of the identifying information 
282.5   regarding these persons public.  Information regarding an 
282.6   obligor who meets the criteria in this subdivision will only be 
282.7   made public subsequent to that person's selection by the 
282.8   commissioner and attorney general. 
282.9      Before publishing making public the name of the obligor, 
282.10  the department of human services shall send a notice to the 
282.11  obligor's last known address which states the department's 
282.12  intention to publish the obligor's name and the amount of child 
282.13  support the obligor owes make public information on the 
282.14  obligor.  The notice must also provide an opportunity to have 
282.15  the obligor's name removed from the list by paying the arrearage 
282.16  or by entering into an agreement to pay the arrearage, and or by 
282.17  providing information to the public authority that there is good 
282.18  cause not to make the information public.  The notice must 
282.19  include the final date when the payment or agreement can be 
282.20  accepted. 
282.21     The department of human services shall insert with the 
282.22  notices sent to the obligee, a notice stating the intent to 
282.23  publish the obligor's name, and the criteria used to determine 
282.24  the publication of the obligor's name obtain the written consent 
282.25  of the obligee to make the name of the obligor public. 
282.26     Subd. 2.  [NAMES PUBLISHED IN ERROR.] If the 
282.27  commissioner publishes makes public a name under subdivision 1 
282.28  which is in error, the commissioner must also offer to publish a 
282.29  printed retraction and a public apology acknowledging that the 
282.30  name was published made public in error.  If the person whose 
282.31  name was made public in error elects the public retraction and 
282.32  apology, the retraction and apology must appear in each 
282.33  publication that included the same medium and the same format as 
282.34  the original notice with the name listed in error, and it must 
282.35  appear in the same type size and appear the same number of times 
282.36  as the original notice.  In addition to the right of a public 
283.1   retraction and apology, a person whose name was made public in 
283.2   error has a civil action for damages caused by the error. 
283.3      Sec. 48.  [518.6111] [INCOME WITHHOLDING.] 
283.4      Subdivision 1.  [DEFINITIONS.] (a) For the purpose of this 
283.5   section, the following terms have the meanings provided in this 
283.6   subdivision unless otherwise stated. 
283.7      (b) "Payor of funds" means any person or entity that 
283.8   provides funds to an obligor, including an employer as defined 
283.9   under chapter 24 of the Internal Revenue Code, section 3401(d), 
283.10  an independent contractor, payor of worker's compensation 
283.11  benefits or reemployment insurance, or a financial institution 
283.12  as defined in section 13B.06. 
283.13     (c) "Business day" means a day on which state offices are 
283.14  open for regular business. 
283.15     (d) "Arrears" means amounts owed under a support order that 
283.16  are past due. 
283.17     Subd. 2.  [APPLICATION.] This section applies to all 
283.18  support orders issued by a court or an administrative tribunal 
283.19  and orders for or notices of withholding issued by the public 
283.20  authority according to section 518.5512, subdivision 6, 
283.21  paragraph (a), clause (4). 
283.22     Subd. 3.  [ORDER.] Every support order must address income 
283.23  withholding.  Whenever a support order is initially entered or 
283.24  modified, the full amount of the support order must be withheld 
283.25  from the income of the obligor and forwarded to the public 
283.26  authority.  Every order for support or maintenance shall provide 
283.27  for a conspicuous notice of the provisions of this section that 
283.28  complies with section 518.68, subdivision 2.  An order without 
283.29  this notice remains subject to this section.  This section 
283.30  applies regardless of the source of income of the person 
283.31  obligated to pay the support or maintenance. 
283.32     A payor of funds shall implement income withholding 
283.33  according to this section upon receipt of an order for or notice 
283.34  of withholding.  The notice of withholding shall be on a form 
283.35  provided by the commissioner of human services. 
283.36     Subd. 4.  [COLLECTION SERVICES.] The commissioner of human 
284.1   services shall prepare and make available to the courts a notice 
284.2   of services that explains child support and maintenance 
284.3   collection services available through the public authority, 
284.4   including income withholding.  Upon receiving a petition for 
284.5   dissolution of marriage or legal separation, the court 
284.6   administrator shall promptly send the notice of services to the 
284.7   petitioner and respondent at the addresses stated in the 
284.8   petition. 
284.9      Upon receipt of a support order requiring income 
284.10  withholding, a petitioner or respondent, who is not a recipient 
284.11  of public assistance and does not receive child support services 
284.12  from the public authority, shall apply to the public authority 
284.13  for either full child support collection services or for income 
284.14  withholding only services. 
284.15     For those persons applying for income withholding only 
284.16  services, a monthly service fee of $15 must be charged to the 
284.17  obligor.  This fee is in addition to the amount of the support 
284.18  order and shall be withheld through income withholding.  The 
284.19  public authority shall explain the service options in this 
284.20  section to the affected parties and encourage the application 
284.21  for full child support collection services. 
284.22     Subd. 5.  [PAYOR OF FUNDS RESPONSIBILITIES.] (a) An order 
284.23  for or notice of withholding is binding on a payor of funds upon 
284.24  receipt.  Withholding must begin no later than the first pay 
284.25  period that occurs after 14 days following the date of receipt 
284.26  of the order for or notice of withholding.  In the case of a 
284.27  financial institution, preauthorized transfers must occur in 
284.28  accordance with a court-ordered payment schedule. 
284.29     (b) A payor of funds shall withhold from the income payable 
284.30  to the obligor the amount specified in the order or notice of 
284.31  withholding and amounts specified under subdivisions 6 and 9 and 
284.32  shall remit the amounts withheld to the public authority within 
284.33  seven business days of the date the obligor is paid the 
284.34  remainder of the income.  The payor of funds shall include with 
284.35  the remittance the social security number of the obligor, the 
284.36  case type indicator as provided by the public authority and the 
285.1   date the obligor is paid the remainder of the income.  The 
285.2   obligor is considered to have paid the amount withheld as of the 
285.3   date the obligor received the remainder of the income.  A payor 
285.4   of funds may combine all amounts withheld from one pay period 
285.5   into one payment to each public authority, but shall separately 
285.6   identify each obligor making payment. 
285.7      (c) A payor of funds shall not discharge, or refuse to 
285.8   hire, or otherwise discipline an employee as a result of wage or 
285.9   salary withholding authorized by this section.  A payor of funds 
285.10  shall be liable to the obligee for any amounts required to be 
285.11  withheld.  A payor of funds that fails to withhold or transfer 
285.12  funds in accordance with this section is also liable to the 
285.13  obligee for interest on the funds at the rate applicable to 
285.14  judgments under section 549.09, computed from the date the funds 
285.15  were required to be withheld or transferred.  A payor of funds 
285.16  is liable for reasonable attorney fees of the obligee or public 
285.17  authority incurred in enforcing the liability under this 
285.18  paragraph.  A payor of funds that has failed to comply with the 
285.19  requirements of this section is subject to contempt sanctions 
285.20  under section 518.615.  If the payor of funds is an employer or 
285.21  independent contractor and violates this subdivision, a court 
285.22  may award the obligor twice the wages lost as a result of this 
285.23  violation.  If a court finds a payor of funds violated this 
285.24  subdivision, the court shall impose a civil fine of not less 
285.25  than $500. 
285.26     (d) If a single employee is subject to multiple withholding 
285.27  orders or multiple notices of withholding for the support of 
285.28  more than one child, the payor of funds shall comply with all of 
285.29  the orders or notices to the extent that the total amount 
285.30  withheld from the obligor's income does not exceed the limits 
285.31  imposed under the Consumer Credit Protection Act, Chapter 15 of 
285.32  the United States Code section 1637(b), giving priority to 
285.33  amounts designated in each order or notice as current support as 
285.34  follows: 
285.35     (1) if the total of the amounts designated in the orders 
285.36  for or notices of withholding as current support exceeds the 
286.1   amount available for income withholding, the payor of funds 
286.2   shall allocate to each order or notice an amount for current 
286.3   support equal to the amount designated in that order or notice 
286.4   as current support, divided by the total of the amounts 
286.5   designated in the orders or notices as current support, 
286.6   multiplied by the amount of the income available for income 
286.7   withholding; and 
286.8      (2) if the total of the amounts designated in the orders 
286.9   for or notices of withholding as current support does not exceed 
286.10  the amount available for income withholding, the payor of funds 
286.11  shall pay the amounts designated as current support, and shall 
286.12  allocate to each order or notice an amount for past due support, 
286.13  equal to the amount designated in that order or notice as past 
286.14  due support, divided by the total of the amounts designated in 
286.15  the orders or notices as past due support, multiplied by the 
286.16  amount of income remaining available for income withholding 
286.17  after the payment of current support. 
286.18     (e) When an order for or notice of withholding is in effect 
286.19  and the obligor's employment is terminated, the obligor and the 
286.20  payor of funds shall notify the public authority of the 
286.21  termination within ten days of the termination date.  The 
286.22  termination notice shall include the obligor's home address and 
286.23  the name and address of the obligor's new payor of funds, if 
286.24  known. 
286.25     (f) A payor of funds may deduct one dollar from the 
286.26  obligor's remaining salary for each payment made pursuant to an 
286.27  order for or notice of withholding under this section to cover 
286.28  the expenses of withholding.  
286.29     Subd. 6.  [FINANCIAL INSTITUTIONS.] (a) If income 
286.30  withholding is ineffective due to the obligor's method of 
286.31  obtaining income, the court shall order the obligor to identify 
286.32  a child support deposit account owned solely by the obligor, or 
286.33  to establish an account, in a financial institution located in 
286.34  this state for the purpose of depositing court-ordered child 
286.35  support payments.  The court shall order the obligor to execute 
286.36  an agreement with the appropriate public authority for 
287.1   preauthorized transfers from the obligor's child support account 
287.2   payable to an account of the public authority.  The court shall 
287.3   order the obligor to disclose to the court all deposit accounts 
287.4   owned by the obligor in whole or in part in any financial 
287.5   institution.  The court may order the obligor to disclose to the 
287.6   court the opening or closing of any deposit account owned in 
287.7   whole or in part by the obligor within 30 days of the opening or 
287.8   closing.  The court may order the obligor to execute an 
287.9   agreement with the appropriate public authority for 
287.10  preauthorized transfers from any deposit account owned in whole 
287.11  or in part by the obligor to the obligor's child support deposit 
287.12  account if necessary to satisfy court-ordered child support 
287.13  payments.  The court may order a financial institution to 
287.14  disclose to the court the account number and any other 
287.15  information regarding accounts owned in whole or in part by the 
287.16  obligor.  An obligor who fails to comply with this subdivision, 
287.17  fails to deposit funds in at least one deposit account 
287.18  sufficient to pay court-ordered child support, or stops payment 
287.19  or revokes authorization of any preauthorized transfer is 
287.20  subject to contempt of court procedures under chapter 588. 
287.21     (b) A financial institution shall execute preauthorized 
287.22  transfers for the deposit accounts of the obligor in the amount 
287.23  specified in the order and amounts required under this section 
287.24  as directed by the public authority.  A financial institution is 
287.25  liable to the obligee if funds in any of the obligor's deposit 
287.26  accounts identified in the court order equal the amount stated 
287.27  in the preauthorization agreement but are not transferred by the 
287.28  financial institution in accordance with the agreement. 
287.29     Subd. 7.  [SUBSEQUENT INCOME WITHHOLDING.] (a) This 
287.30  subdivision applies to support orders that do not contain 
287.31  provisions for income withholding. 
287.32     (b) For cases in which the public authority is providing 
287.33  child support enforcement services to the parties, the income 
287.34  withholding under this subdivision shall take effect without 
287.35  prior judicial notice to the obligor and without the need for 
287.36  judicial or administrative hearing.  Withholding shall result 
288.1   when: 
288.2      (1) the obligor requests it in writing to the public 
288.3   authority; 
288.4      (2) the obligee or obligor serves on the public authority a 
288.5   copy of the notice of income withholding, a copy of the court's 
288.6   order, an application, and the fee to use the public authority's 
288.7   collection services; or 
288.8      (3) the public authority commences withholding according to 
288.9   section 518.5512, subdivision 6, paragraph (a), clause (4).  
288.10     (c) For cases in which the public authority is not 
288.11  providing child support services to the parties, income 
288.12  withholding under this subdivision shall take effect when an 
288.13  obligee requests it by making a written motion to the court and 
288.14  the court finds that previous support has not been paid on a 
288.15  timely consistent basis or that the obligor has threatened 
288.16  expressly or otherwise to stop or reduce payments; 
288.17     (d) Within two days after the public authority commences 
288.18  withholding under this subdivision, the public authority shall 
288.19  send to the obligor at the obligor's last known address, notice 
288.20  that withholding has commenced.  The notice shall include the 
288.21  information provided to the payor of funds in the notice of 
288.22  withholding. 
288.23     Subd. 8.  [CONTEST.] (a) The obligor may contest 
288.24  withholding under subdivision 7 on the limited grounds that the 
288.25  withholding or the amount withheld is improper due to mistake of 
288.26  fact.  If the obligor chooses to contest the withholding, the 
288.27  obligor must do so no later than 15 days after the employer 
288.28  commences withholding, by doing all of the following: 
288.29     (1) file a request for contested hearing according to 
288.30  section 518.5511, subdivision 4, and include in the request the 
288.31  alleged mistake of fact; 
288.32     (2) serve a copy of the request for contested hearing upon 
288.33  the public authority and the obligee; and 
288.34     (3) secure a date for the contested hearing no later than 
288.35  45 days after receiving notice that withholding has commenced. 
288.36     (b) The income withholding must remain in place while the 
289.1   obligor contests the withholding. 
289.2      (c) If the court finds a mistake in the amount of the 
289.3   arrearage to be withheld, the court shall continue the income 
289.4   withholding, but it shall correct the amount of the arrearage to 
289.5   be withheld. 
289.6      Subd. 9.  [PRIORITY.] (a) An order for or notice of 
289.7   withholding under this section or execution or garnishment upon 
289.8   a judgment for child support arrearage or preadjudicated 
289.9   expenses shall have priority over an attachment, execution, 
289.10  garnishment, or wage assignment and shall not be subject to the 
289.11  statutory limitations on amounts levied against the income of 
289.12  the obligor.  Amounts withheld from an employee's income must 
289.13  not exceed the maximum permitted under the Consumer Credit 
289.14  Protection Act, title 15 of the United States Code, section 
289.15  1673(b). 
289.16     (b) If more than one order for or notice of withholding 
289.17  exists involving the same obligor and child, the public 
289.18  authority shall enforce the most current order or notice.  An 
289.19  order for or notice of withholding that was previously 
289.20  implemented according to this section shall end as of the date 
289.21  of the most current order.  The public authority shall notify 
289.22  the payor of funds to withhold under the most current 
289.23  withholding order or notice. 
289.24     Subd. 10.  [ARREARAGE ORDER.] (a) This section does not 
289.25  prevent the court from ordering the payor of funds to withhold 
289.26  amounts to satisfy the obligor's previous arrearage in support 
289.27  order payments.  This remedy shall not operate to exclude 
289.28  availability of other remedies to enforce judgments.  The 
289.29  employer or payor of funds shall withhold from the obligor's 
289.30  income an additional amount equal to 20 percent of the monthly 
289.31  child support or maintenance obligation until the arrearage is 
289.32  paid.  
289.33     (b) Notwithstanding any law to the contrary, funds from 
289.34  income sources included in section 518.54, subdivision 6, 
289.35  whether periodic or lump sum, are not exempt from attachment or 
289.36  execution upon a judgment for child support arrearage. 
290.1      (c) Absent an order to the contrary, if an arrearage exists 
290.2   at the time a support order would otherwise terminate, income 
290.3   withholding shall continue in effect or may be implemented in an 
290.4   amount equal to the support order plus an additional 20 percent 
290.5   of the monthly child support obligation, until all arrears have 
290.6   been paid in full. 
290.7      Subd. 11.  [LUMP-SUM PAYMENTS.] Before transmittal to the 
290.8   obligor of a lump-sum payment of $500 or more including, but not 
290.9   limited to, severance pay, accumulated sick pay, vacation pay, 
290.10  bonuses, commissions, or other pay or benefits, a payor of funds:
290.11     (1) who has been served with an order for or notice of 
290.12  income withholding under this section shall: 
290.13     (i) notify the public authority of the lump-sum payment 
290.14  that is to be paid to the obligor; 
290.15     (ii) hold the lump-sum payment for 30 days after the date 
290.16  on which the lump-sum payment would otherwise have been paid to 
290.17  the obligor, notwithstanding sections 176.221, 176.225, 176.521, 
290.18  181.08, 181.101, 181.11, 181.13, and 181.145, and Minnesota 
290.19  Rules, part 1415.2000, subpart 10; and 
290.20     (iii) upon order of the court, and after a showing of past 
290.21  willful nonpayment of support, pay any specified amount of the 
290.22  lump-sum payment to the public authority for future support; or 
290.23     (2) shall pay the lessor of the amount of the lump-sum 
290.24  payment or the total amount of the judgment and arrearages upon 
290.25  service by United States mail of a sworn affidavit from the 
290.26  public authority or a court order that includes the following 
290.27  information: 
290.28     (i) that a judgment entered pursuant to section 548.091, 
290.29  subdivision 1a, exists against the obligor, or that other 
290.30  support arrearages exist; 
290.31     (ii) the current balance of the judgment or arrearage; and 
290.32     (iii) that a portion of the judgment or arrearage remains 
290.33  unpaid. 
290.34     The Consumer Credit Protection Act, title 15 of the United 
290.35  States Code, section 1673(b), does not apply to lump-sum 
290.36  payments. 
291.1      Subd. 12.  [INTERSTATE INCOME WITHHOLDING.] (a) Upon 
291.2   receipt of an order for support entered in another state and the 
291.3   specified documentation from an authorized agency, the public 
291.4   authority shall implement income withholding.  A payor of funds 
291.5   in this state shall withhold income under court orders for 
291.6   withholding issued by other states or territories. 
291.7      (b) An employer receiving an income withholding notice from 
291.8   another state shall withhold and distribute the funds as 
291.9   directed in the withholding notice and shall apply the law of 
291.10  the obligor's principal place of employment when determining: 
291.11     (1) the employer's fee for processing an income withholding 
291.12  notice; 
291.13     (2) the maximum amount permitted to be withheld from the 
291.14  obligor's income; and 
291.15     (3) deadlines for implementing and forwarding the child 
291.16  support payment. 
291.17     (c) An obligor may contest withholding under this 
291.18  subdivision pursuant to section 518C.506. 
291.19     Subd. 13.  [ORDER TERMINATING INCOME WITHHOLDING.] (a) An 
291.20  order terminating income withholding must specify the effective 
291.21  date of the order and reference the initial order or decree that 
291.22  establishes the support obligation and shall be entered once the 
291.23  following conditions have been met: 
291.24     (1) the obligor serves written notice of the application 
291.25  for termination of income withholding by mail upon the obligee 
291.26  at the obligee's last known mailing address, and a duplicate 
291.27  copy of the application is served on the public authority; 
291.28     (2) the application for termination of income withholding 
291.29  specifies the event that terminates the support obligation, the 
291.30  effective date of the termination of the support obligation, and 
291.31  the applicable provisions of the order or decree that 
291.32  established the support obligation; and 
291.33     (3) the application includes the complete name of the 
291.34  obligor's payor of funds, the business mailing address, the 
291.35  court action and court file number, and the support and 
291.36  collections file number, if known. 
292.1      (b) After receipt of the application for termination of 
292.2   income withholding, the obligee or the public authority fails 
292.3   within 20 days to request a contested hearing on the issue of 
292.4   whether income withholding of support should continue clearly 
292.5   specifying the basis for the continued support obligation and, 
292.6   ex parte, to stay the service of the order terminating income 
292.7   withholding upon the obligor's payor of funds, pending the 
292.8   outcome of the contest hearing. 
292.9      Subd. 14.  [TERMINATION BY THE PUBLIC AUTHORITY.] If the 
292.10  public authority determines that income withholding is no longer 
292.11  applicable, the public authority shall notify the obligee and 
292.12  the obligor of intent to terminate income withholding. 
292.13     Five days following notification to the obligee and 
292.14  obligor, the public authority shall issue a notice to the payor 
292.15  of funds terminating income withholding, without a requirement 
292.16  for a court order unless the obligee has requested a contested 
292.17  hearing under section 518.5511, subdivision 4. 
292.18     Subd. 15.  [CONTRACT FOR SERVICE.] To carry out the 
292.19  provisions of this section, the public authority responsible for 
292.20  child support enforcement may contract for services, including 
292.21  the use of electronic funds transfer. 
292.22     Subd. 16.  [WAIVER.] (a) If child support or maintenance is 
292.23  not assigned under section 256.741, the court may waive the 
292.24  requirements of this section if the court finds there is no 
292.25  arrearage in child support and maintenance as of the date of the 
292.26  hearing and: 
292.27     (1) one party demonstrates and the court finds there is 
292.28  good cause to waive the requirements of this section or to 
292.29  terminate an order for or notice of income withholding 
292.30  previously entered under this section; or 
292.31     (2) all parties reach an agreement and the agreement is 
292.32  approved by the court after a finding that the agreement is 
292.33  likely to result in regular and timely payments.  The court's 
292.34  findings waiving the requirements of this paragraph shall 
292.35  include a written explanation of the reasons why income 
292.36  withholding would not be in the best interests of the child. 
293.1      In addition to the other requirements in this subdivision, 
293.2   if the case involves a modification of support, the court shall 
293.3   make a finding that support has been timely made. 
293.4      (b) If the court waives income withholding, the obligee or 
293.5   obligor may at any time request income withholding under 
293.6   subdivision 7. 
293.7      Subd. 17.  [NONLIABILITY; PAYOR OF FUNDS.] A payor of funds 
293.8   who complies with an income withholding order or notice of 
293.9   withholding according to this chapter or chapter 518C, that 
293.10  appears regular on its face shall not be subject to civil 
293.11  liability to any individual or agency for taking action in 
293.12  compliance with the order or notice. 
293.13     Subd. 18.  [ELECTRONIC TRANSMISSION.] Orders or notices for 
293.14  withholding under this section may be transmitted for 
293.15  enforcement purposes by electronic means. 
293.16     Sec. 49.  Minnesota Statutes 1996, section 518.68, 
293.17  subdivision 2, is amended to read: 
293.18     Subd. 2.  [CONTENTS.] The required notices must be 
293.19  substantially as follows: 
293.20                          IMPORTANT NOTICE 
293.21  1.  PAYMENTS TO PUBLIC AGENCY 
293.22     Pursuant According to Minnesota Statutes, section 518.551, 
293.23     subdivision 1, payments ordered for maintenance and support 
293.24     must be paid to the public agency responsible for child 
293.25     support enforcement as long as the person entitled to 
293.26     receive the payments is receiving or has applied for public 
293.27     assistance or has applied for support and maintenance 
293.28     collection services.  MAIL PAYMENTS TO: 
293.29  2.  DEPRIVING ANOTHER OF CUSTODIAL OR PARENTAL RIGHTS -- A 
293.30  FELONY 
293.31     A person may be charged with a felony who conceals a minor 
293.32     child or takes, obtains, retains, or fails to return a 
293.33     minor child from or to the child's parent (or person with 
293.34     custodial or visitation rights), pursuant according to 
293.35     Minnesota Statutes, section 609.26.  A copy of that section 
293.36     is available from any district court clerk. 
294.1   3.  RULES OF SUPPORT, MAINTENANCE, VISITATION 
294.2      (a) Payment of support or spousal maintenance is to be as 
294.3      ordered, and the giving of gifts or making purchases of 
294.4      food, clothing, and the like will not fulfill the 
294.5      obligation. 
294.6      (b) Payment of support must be made as it becomes due, and 
294.7      failure to secure or denial of rights of visitation is NOT 
294.8      an excuse for nonpayment, but the aggrieved party must seek 
294.9      relief through a proper motion filed with the court. 
294.10     (c) Nonpayment of support is not grounds to deny 
294.11     visitation.  The party entitled to receive support may 
294.12     apply for support and collection services, file a contempt 
294.13     motion, or obtain a judgment as provided in Minnesota 
294.14     Statutes, section 548.091.  
294.15     (d) The payment of support or spousal maintenance takes 
294.16     priority over payment of debts and other obligations. 
294.17     (e) A party who accepts additional obligations of support 
294.18     does so with the full knowledge of the party's prior 
294.19     obligation under this proceeding. 
294.20     (f) Child support or maintenance is based on annual income, 
294.21     and it is the responsibility of a person with seasonal 
294.22     employment to budget income so that payments are made 
294.23     throughout the year as ordered. 
294.24     (g) If there is a layoff or a pay reduction, support may be 
294.25     reduced as of the time of the layoff or pay reduction if a 
294.26     motion to reduce the support is served and filed with the 
294.27     court at that time, but any such reduction must be ordered 
294.28     by the court.  The court is not permitted to reduce support 
294.29     retroactively, except as provided in Minnesota Statutes, 
294.30     section 518.64, subdivision 2, paragraph (c).  
294.31  4.  PARENTAL RIGHTS FROM MINNESOTA STATUTES, SECTION 518.17, 
294.32  SUBDIVISION 3 
294.33     Unless otherwise provided by the Court: 
294.34     (a) Each party has the right of access to, and to receive 
294.35     copies of, school, medical, dental, religious training, and 
294.36     other important records and information about the minor 
295.1      children.  Each party has the right of access to 
295.2      information regarding health or dental insurance available 
295.3      to the minor children.  Presentation of a copy of this 
295.4      order to the custodian of a record or other information 
295.5      about the minor children constitutes sufficient 
295.6      authorization for the release of the record or information 
295.7      to the requesting party. 
295.8      (b) Each party shall keep the other informed as to the name 
295.9      and address of the school of attendance of the minor 
295.10     children.  Each party has the right to be informed by 
295.11     school officials about the children's welfare, educational 
295.12     progress and status, and to attend school and parent 
295.13     teacher conferences.  The school is not required to hold a 
295.14     separate conference for each party. 
295.15     (c) In case of an accident or serious illness of a minor 
295.16     child, each party shall notify the other party of the 
295.17     accident or illness, and the name of the health care 
295.18     provider and the place of treatment. 
295.19     (d) Each party has the right of reasonable access and 
295.20     telephone contact with the minor children. 
295.21  5.  WAGE AND INCOME DEDUCTION OF SUPPORT AND MAINTENANCE 
295.22     Child support and/or spousal maintenance may be withheld 
295.23     from income, with or without notice to the person obligated 
295.24     to pay, when the conditions of Minnesota Statutes, sections 
295.25     518.611 and 518.613, have been met.  A copy of those 
295.26     sections is available from any district court clerk. 
295.27  6.  CHANGE OF ADDRESS OR RESIDENCE 
295.28     Unless otherwise ordered, the person responsible to make 
295.29     support or maintenance payments each party shall notify the 
295.30     person entitled to receive the payment other party, the 
295.31     court, and the public authority responsible for collection, 
295.32     if applicable, of a change of address or residence the 
295.33     following information within 60 ten days of the address or 
295.34     residence change any change:  the residential and mailing 
295.35     address, telephone number, driver's license number, social 
295.36     security number, and name, address, and telephone number of 
296.1      the employer. 
296.2   7.  COST OF LIVING INCREASE OF SUPPORT AND MAINTENANCE 
296.3      Child support and/or spousal maintenance may be adjusted 
296.4      every two years based upon a change in the cost of living 
296.5      (using Department of Labor Consumer Price Index .........., 
296.6      unless otherwise specified in this order) when the 
296.7      conditions of Minnesota Statutes, section 518.641, are met. 
296.8      Cost of living increases are compounded.  A copy of 
296.9      Minnesota Statutes, section 518.641, and forms necessary to 
296.10     request or contest a cost of living increase are available 
296.11     from any district court clerk. 
296.12  8.  JUDGMENTS FOR UNPAID SUPPORT 
296.13     If a person fails to make a child support payment, the 
296.14     payment owed becomes a judgment against the person 
296.15     responsible to make the payment by operation of law on or 
296.16     after the date the payment is due, and the person entitled 
296.17     to receive the payment or the public agency may obtain 
296.18     entry and docketing of the judgment WITHOUT NOTICE to the 
296.19     person responsible to make the payment under Minnesota 
296.20     Statutes, section 548.091.  Interest begins to accrue on a 
296.21     payment or installment of child support whenever the unpaid 
296.22     amount due is greater than the current support due, 
296.23     pursuant according to Minnesota Statutes, section 548.091, 
296.24     subdivision 1a.  
296.25  9.  JUDGMENTS FOR UNPAID MAINTENANCE 
296.26     A judgment for unpaid spousal maintenance may be entered 
296.27     when the conditions of Minnesota Statutes, section 548.091, 
296.28     are met.  A copy of that section is available from any 
296.29     district court clerk. 
296.30  10.  ATTORNEY FEES AND COLLECTION COSTS FOR ENFORCEMENT OF CHILD 
296.31  SUPPORT 
296.32     A judgment for attorney fees and other collection costs 
296.33     incurred in enforcing a child support order will be entered 
296.34     against the person responsible to pay support when the 
296.35     conditions of section 518.14, subdivision 2, are met.  A 
296.36     copy of section 518.14 and forms necessary to request or 
297.1      contest these attorney fees and collection costs are 
297.2      available from any district court clerk. 
297.3   11.  VISITATION EXPEDITOR PROCESS 
297.4      On request of either party or on its own motion, the court 
297.5      may appoint a visitation expeditor to resolve visitation 
297.6      disputes under Minnesota Statutes, section 518.1751.  A 
297.7      copy of that section and a description of the expeditor 
297.8      process is available from any district court clerk. 
297.9   12.  VISITATION REMEDIES AND PENALTIES 
297.10     Remedies and penalties for the wrongful denial of 
297.11     visitation rights are available under Minnesota Statutes, 
297.12     section 518.175, subdivision 6.  These include compensatory 
297.13     visitation; civil penalties; bond requirements; contempt; 
297.14     and reversal of custody.  A copy of that subdivision and 
297.15     forms for requesting relief are available from any district 
297.16     court clerk. 
297.17     Sec. 50.  Minnesota Statutes 1996, section 518C.101, is 
297.18  amended to read: 
297.19     518C.101 [DEFINITIONS.] 
297.20     In this chapter: 
297.21     (a) "Child" means an individual, whether over or under the 
297.22  age of majority, who is or is alleged to be owed a duty of 
297.23  support by the individual's parent or who is or is alleged to be 
297.24  the beneficiary of a support order directed to the parent. 
297.25     (b) "Child support order" means a support order for a 
297.26  child, including a child who has attained the age of majority 
297.27  under the law of the issuing state. 
297.28     (c) "Duty of support" means an obligation imposed or 
297.29  imposable by law to provide support for a child, spouse, or 
297.30  former spouse, including an unsatisfied obligation to provide 
297.31  support. 
297.32     (d) "Home state" means the state in which a child lived 
297.33  with a parent or a person acting as parent for at least six 
297.34  consecutive months immediately preceding the time of filing of a 
297.35  petition or comparable pleading for support and, if a child is 
297.36  less than six months old, the state in which the child lived 
298.1   from birth with any of them.  A period of temporary absence of 
298.2   any of them is counted as part of the six-month or other period. 
298.3      (e) "Income" includes earnings or other periodic 
298.4   entitlements to money from any source and any other property 
298.5   subject to withholding for support under the law of this state. 
298.6      (f) "Income-withholding order" means an order or other 
298.7   legal process directed to an obligor's employer or other debtor 
298.8   under section 518.611 or 518.613, to withhold support from the 
298.9   income of the obligor. 
298.10     (g) "Initiating state" means a state in from which a 
298.11  proceeding is forwarded or in which a proceeding is filed for 
298.12  forwarding to a responding state under this chapter or a law or 
298.13  procedure substantially similar to this chapter, or under a law 
298.14  or procedure substantially similar to the uniform reciprocal 
298.15  enforcement of support act, or the revised uniform reciprocal 
298.16  enforcement of support act is filed for forwarding to a 
298.17  responding state. 
298.18     (h) "Initiating tribunal" means the authorized tribunal in 
298.19  an initiating state. 
298.20     (i) "Issuing state" means the state in which a tribunal 
298.21  issues a support order or renders a judgment determining 
298.22  parentage. 
298.23     (j) "Issuing tribunal" means the tribunal that issues a 
298.24  support order or renders a judgment determining parentage. 
298.25     (k) "Law" includes decisional and statutory law and rules 
298.26  and regulations having the force of law. 
298.27     (l) "Obligee" means: 
298.28     (1) an individual to whom a duty of support is or is 
298.29  alleged to be owed or in whose favor a support order has been 
298.30  issued or a judgment determining parentage has been rendered; 
298.31     (2) a state or political subdivision to which the rights 
298.32  under a duty of support or support order have been assigned or 
298.33  which has independent claims based on financial assistance 
298.34  provided to an individual obligee; or 
298.35     (3) an individual seeking a judgment determining parentage 
298.36  of the individual's child. 
299.1      (m) "Obligor" means an individual, or the estate of a 
299.2   decedent: 
299.3      (1) who owes or is alleged to owe a duty of support; 
299.4      (2) who is alleged but has not been adjudicated to be a 
299.5   parent of a child; or 
299.6      (3) who is liable under a support order. 
299.7      (n) "Petition" means a petition or comparable pleading used 
299.8   pursuant to section 518.5511. 
299.9      (o) "Register" means to file a support order or judgment 
299.10  determining parentage in the office of the court administrator. 
299.11     (p) (o) "Registering tribunal" means a tribunal in which a 
299.12  support order is registered. 
299.13     (q) (p) "Responding state" means a state to in which a 
299.14  proceeding is filed or to which a proceeding is forwarded for 
299.15  filing from an initiating state under this chapter or a law or 
299.16  procedure substantially similar to this chapter, or under a law 
299.17  or procedure substantially similar to the uniform reciprocal 
299.18  enforcement of support act, or the revised uniform reciprocal 
299.19  enforcement of support act. 
299.20     (r) (q) "Responding tribunal" means the authorized tribunal 
299.21  in a responding state. 
299.22     (s) (r) "Spousal support order" means a support order for a 
299.23  spouse or former spouse of the obligor. 
299.24     (t) (s) "State" means a state of the United States, the 
299.25  District of Columbia, the Commonwealth of Puerto Rico, the 
299.26  United States Virgin Islands, or any territory or insular 
299.27  possession subject to the jurisdiction of the United States.  
299.28  "State" includes: 
299.29     (1) an Indian tribe; and 
299.30     (2) a foreign jurisdiction that has enacted a law or 
299.31  established procedures for issuance and enforcement of support 
299.32  orders that are substantially similar to the procedures under 
299.33  this chapter or the procedures under the uniform reciprocal 
299.34  enforcement of support act or the revised uniform reciprocal 
299.35  enforcement of support act.  
299.36     (u) (t) "Support enforcement agency" means a public 
300.1   official or agency authorized to: 
300.2      (1) seek enforcement of support orders or laws relating to 
300.3   the duty of support; 
300.4      (2) seek establishment or modification of child support; 
300.5      (3) seek determination of parentage; or 
300.6      (4) locate obligors or their assets. 
300.7      (v) (u) "Support order" means a judgment, decree, or order, 
300.8   whether temporary, final, or subject to modification, for the 
300.9   benefit of a child, spouse, or former spouse, which provides for 
300.10  monetary support, health care, arrearages, or reimbursement, and 
300.11  may include related costs and fees, interest, income 
300.12  withholding, attorney's fees, and other relief. 
300.13     (w) (v) "Tribunal" means a court, administrative agency, or 
300.14  quasi-judicial entity authorized to establish, enforce, or 
300.15  modify support orders or to determine parentage. 
300.16     Sec. 51.  Minnesota Statutes 1996, section 518C.205, is 
300.17  amended to read: 
300.18     518C.205 [CONTINUING, EXCLUSIVE JURISDICTION.] 
300.19     (a) A tribunal of this state issuing a support order 
300.20  consistent with the law of this state has continuing, exclusive 
300.21  jurisdiction over a child support order: 
300.22     (1) as long as this state remains the residence of the 
300.23  obligor, the individual obligee, or the child for whose benefit 
300.24  the support order is issued; or 
300.25     (2) until each individual party has all of the parties who 
300.26  are individuals have filed written consent consents with the 
300.27  tribunal of this state for a tribunal of another state to modify 
300.28  the order and assume continuing, exclusive jurisdiction. 
300.29     (b) A tribunal of this state issuing a child support order 
300.30  consistent with the law of this state may not exercise its 
300.31  continuing jurisdiction to modify the order if the order has 
300.32  been modified by a tribunal of another state pursuant to this 
300.33  chapter or a law substantially similar to this chapter. 
300.34     (c) If a child support order of this state is modified by a 
300.35  tribunal of another state pursuant to this chapter or a law 
300.36  substantially similar to this chapter, a tribunal of this state 
301.1   loses its continuing, exclusive jurisdiction with regard to 
301.2   prospective enforcement of the order issued in this state, and 
301.3   may only: 
301.4      (1) enforce the order that was modified as to amounts 
301.5   accruing before the modification; 
301.6      (2) enforce nonmodifiable aspects of that order; and 
301.7      (3) provide other appropriate relief for violations of that 
301.8   order which occurred before the effective date of the 
301.9   modification. 
301.10     (d) A tribunal of this state shall recognize the 
301.11  continuing, exclusive jurisdiction of a tribunal of another 
301.12  state which has issued a child support order pursuant to this 
301.13  chapter or a law substantially similar to this chapter. 
301.14     (e) A temporary support order issued ex parte or pending 
301.15  resolution of a jurisdictional conflict does not create 
301.16  continuing, exclusive jurisdiction in the issuing tribunal. 
301.17     (f) A tribunal of this state issuing a support order 
301.18  consistent with the law of this state has continuing, exclusive 
301.19  jurisdiction over a spousal support order throughout the 
301.20  existence of the support obligation.  A tribunal of this state 
301.21  may not modify a spousal support order issued by a tribunal of 
301.22  another state having continuing, exclusive jurisdiction over 
301.23  that order under the law of that state. 
301.24     Sec. 52.  Minnesota Statutes 1996, section 518C.207, is 
301.25  amended to read: 
301.26     518C.207 [RECOGNITION OF CONTROLLING CHILD SUPPORT ORDERS 
301.27  ORDER.] 
301.28     (a) If a proceeding is brought under this chapter and only 
301.29  one tribunal has issued a child support order, the order of that 
301.30  tribunal is controlling and must be recognized. 
301.31     (b) If a proceeding is brought under this chapter, and one 
301.32  two or more child support orders have been issued in by 
301.33  tribunals of this state or another state with regard to an the 
301.34  same obligor and a child, a tribunal of this state shall apply 
301.35  the following rules in determining which order to recognize for 
301.36  purposes of continuing, exclusive jurisdiction: 
302.1      (1) If only one tribunal has issued a child support order, 
302.2   the order of that tribunal must be recognized. 
302.3      (2) If two or more tribunals have issued child support 
302.4   orders for the same obligor and child, and only one of the 
302.5   tribunals would have continuing, exclusive jurisdiction under 
302.6   this chapter, the order of that tribunal is controlling and must 
302.7   be recognized. 
302.8      (3) (2) If two or more tribunals have issued child support 
302.9   orders for the same obligor and child, and more than one of the 
302.10  tribunals would have continuing, exclusive jurisdiction under 
302.11  this chapter, an order issued by a tribunal in the current home 
302.12  state of the child must be recognized, but if an order has not 
302.13  been issued in the current home state of the child, the order 
302.14  most recently issued is controlling and must be recognized. 
302.15     (4) (3) If two or more tribunals have issued child support 
302.16  orders for the same obligor and child, and none of the tribunals 
302.17  would have continuing, exclusive jurisdiction under this 
302.18  chapter, the tribunal of this state may having jurisdiction over 
302.19  the parties shall issue a child support order, which is 
302.20  controlling and must be recognized. 
302.21     (c) If two or more child support orders have been issued 
302.22  for the same obligor and child and if the obligor or the 
302.23  individual obligee resides in this state, a party may request a 
302.24  tribunal of this state to determine which order controls and 
302.25  must be recognized under paragraph (b).  The request must be 
302.26  accompanied by a certified copy of every support order in effect.
302.27  The requesting party shall give notice of the request to each 
302.28  party whose rights may be affected by the determination. 
302.29     (b) (d) The tribunal that has issued an the order that 
302.30  must be recognized as controlling under paragraph (a) (b) or (c) 
302.31  is the tribunal having that has continuing, exclusive 
302.32  jurisdiction in accordance with section 518C.205. 
302.33     (e) A tribunal of this state which determines by order the 
302.34  identity of the controlling child support order under paragraph 
302.35  (b), clause (1) or (2), or which issues a new controlling child 
302.36  support order under paragraph (b), clause (3), shall include in 
303.1   that order the basis upon which the tribunal made its 
303.2   determination. 
303.3      (f) Within 30 days after issuance of the order determining 
303.4   the identity of the controlling order, the party obtaining that 
303.5   order shall file a certified copy of it with each tribunal that 
303.6   had issued or registered an earlier order of child support.  A 
303.7   party who obtains the order and fails to file a certified copy 
303.8   is subject to appropriate sanctions by a tribunal in which the 
303.9   issue of failure to file arises.  The failure to file does not 
303.10  affect the validity or enforceability of the controlling order. 
303.11     Sec. 53.  Minnesota Statutes 1996, section 518C.304, is 
303.12  amended to read: 
303.13     518C.304 [DUTIES OF INITIATING TRIBUNAL.] 
303.14     (a) Upon the filing of a petition authorized by this 
303.15  chapter, an initiating tribunal of this state shall forward 
303.16  three copies of the petition and its accompanying documents: 
303.17     (1) to the responding tribunal or appropriate support 
303.18  enforcement agency in the responding state; or 
303.19     (2) if the identity of the responding tribunal is unknown, 
303.20  to the state information agency of the responding state with a 
303.21  request that they be forwarded to the appropriate tribunal and 
303.22  that receipt be acknowledged. 
303.23     (b) If a responding state has not enacted this chapter or a 
303.24  law or procedure substantially similar to this chapter, a 
303.25  tribunal of this state may issue a certificate or other 
303.26  documents and make findings required by the law of the 
303.27  responding state.  If the responding state is a foreign 
303.28  jurisdiction, the tribunal may specify the amount of support 
303.29  sought and provide other documents necessary to satisfy the 
303.30  requirements of the responding state. 
303.31     Sec. 54.  Minnesota Statutes 1996, section 518C.305, is 
303.32  amended to read: 
303.33     518C.305 [DUTIES AND POWERS OF RESPONDING TRIBUNAL.] 
303.34     (a) When a responding tribunal of this state receives a 
303.35  petition or comparable pleading from an initiating tribunal or 
303.36  directly pursuant to section 518C.301, paragraph (c), it shall 
304.1   cause the petition or pleading to be filed and notify the 
304.2   petitioner by first class mail where and when it was filed. 
304.3      (b) A responding tribunal of this state, to the extent 
304.4   otherwise authorized by law, may do one or more of the following:
304.5      (1) issue or enforce a support order, modify a child 
304.6   support order, or render a judgment to determine parentage; 
304.7      (2) order an obligor to comply with a support order, 
304.8   specifying the amount and the manner of compliance; 
304.9      (3) order income withholding; 
304.10     (4) determine the amount of any arrearages, and specify a 
304.11  method of payment; 
304.12     (5) enforce orders by civil or criminal contempt, or both; 
304.13     (6) set aside property for satisfaction of the support 
304.14  order; 
304.15     (7) place liens and order execution on the obligor's 
304.16  property; 
304.17     (8) order an obligor to keep the tribunal informed of the 
304.18  obligor's current residential address, telephone number, 
304.19  employer, address of employment, and telephone number at the 
304.20  place of employment; 
304.21     (9) issue a bench warrant for an obligor who has failed 
304.22  after proper notice to appear at a hearing ordered by the 
304.23  tribunal and enter the bench warrant in any local and state 
304.24  computer systems for criminal warrants; 
304.25     (10) order the obligor to seek appropriate employment by 
304.26  specified methods; 
304.27     (11) award reasonable attorney's fees and other fees and 
304.28  costs; and 
304.29     (12) grant any other available remedy. 
304.30     (c) A responding tribunal of this state shall include in a 
304.31  support order issued under this chapter, or in the documents 
304.32  accompanying the order, the calculations on which the support 
304.33  order is based. 
304.34     (d) A responding tribunal of this state may not condition 
304.35  the payment of a support order issued under this chapter upon 
304.36  compliance by a party with provisions for visitation. 
305.1      (e) If a responding tribunal of this state issues an order 
305.2   under this chapter, the tribunal shall send a copy of the order 
305.3   by first class mail to the petitioner and the respondent and to 
305.4   the initiating tribunal, if any. 
305.5      Sec. 55.  Minnesota Statutes 1996, section 518C.310, is 
305.6   amended to read: 
305.7      518C.310 [DUTIES OF STATE INFORMATION AGENCY.] 
305.8      (a) The unit within the department of human services that 
305.9   receives and disseminates incoming interstate actions under 
305.10  title IV-D of the Social Security Act from section 518C.02, 
305.11  subdivision 1a, is the state information agency under this 
305.12  chapter. 
305.13     (b) The state information agency shall: 
305.14     (1) compile and maintain a current list, including 
305.15  addresses, of the tribunals in this state which have 
305.16  jurisdiction under this chapter and any support enforcement 
305.17  agencies in this state and transmit a copy to the state 
305.18  information agency of every other state; 
305.19     (2) maintain a register of tribunals and support 
305.20  enforcement agencies received from other states; 
305.21     (3) forward to the appropriate tribunal in the place in 
305.22  this state in which the individual obligee or the obligor 
305.23  resides, or in which the obligor's property is believed to be 
305.24  located, all documents concerning a proceeding under this 
305.25  chapter received from an initiating tribunal or the state 
305.26  information agency of the initiating state; and 
305.27     (4) obtain information concerning the location of the 
305.28  obligor and the obligor's property within this state not exempt 
305.29  from execution, by such means as postal verification and federal 
305.30  or state locator services, examination of telephone directories, 
305.31  requests for the obligor's address from employers, and 
305.32  examination of governmental records, including, to the extent 
305.33  not prohibited by other law, those relating to real property, 
305.34  vital statistics, law enforcement, taxation, motor vehicles, 
305.35  driver's licenses, and social security; and 
305.36     (5) determine which foreign jurisdictions and Indian tribes 
306.1   have substantially similar procedures for issuance and 
306.2   enforcement of support orders.  The state information agency 
306.3   shall compile and maintain a list, including addresses, of all 
306.4   these foreign jurisdictions and Indian tribes.  The state 
306.5   information agency shall make this list available to all state 
306.6   tribunals and all support enforcement agencies. 
306.7      Sec. 56.  Minnesota Statutes 1996, section 518C.401, is 
306.8   amended to read: 
306.9      518C.401 [PETITION TO ESTABLISH SUPPORT ORDER.] 
306.10     (a) If a support order entitled to recognition under this 
306.11  chapter has not been issued, a responding tribunal of this state 
306.12  may issue a support order if: 
306.13     (1) the individual seeking the order resides in another 
306.14  state; or 
306.15     (2) the support enforcement agency seeking the order is 
306.16  located in another state. 
306.17     (b) The tribunal may issue a temporary child support order 
306.18  if: 
306.19     (1) the respondent has signed a verified statement 
306.20  acknowledging parentage; 
306.21     (2) the respondent has been determined by or pursuant to 
306.22  law to be the parent; or 
306.23     (3) there is other clear and convincing evidence that the 
306.24  respondent is the child's parent. 
306.25     (c) Upon a finding, after notice and opportunity to be 
306.26  heard, that an obligor owes a duty of support, the tribunal 
306.27  shall issue a support order directed to the obligor and may 
306.28  issue other orders pursuant according to section 518C.305. 
306.29     Sec. 57.  Minnesota Statutes 1996, section 518C.501, is 
306.30  amended to read: 
306.31     518C.501 [RECOGNITION EMPLOYER'S RECEIPT OF 
306.32  INCOME-WITHHOLDING ORDER OF ANOTHER STATE.] 
306.33     (a) An income-withholding order issued in another state may 
306.34  be sent by first class mail to the person or entity defined as 
306.35  the obligor's employer under section 518.611 or 518.613 without 
306.36  first filing a petition or comparable pleading or registering 
307.1   the order with a tribunal of this state.  Upon receipt of the 
307.2   order, the employer shall: 
307.3      (1) treat an income-withholding order issued in another 
307.4   state which appears regular on its face as if it had been issued 
307.5   by a tribunal of this state; 
307.6      (2) immediately provide a copy of the order to the obligor; 
307.7   and 
307.8      (3) distribute the funds as directed in the withholding 
307.9   order. 
307.10     (b) An obligor may contest the validity or enforcement of 
307.11  an income-withholding order issued in another state in the same 
307.12  manner as if the order had been issued by a tribunal of this 
307.13  state.  Section 518C.604 applies to the contest.  The obligor 
307.14  shall give notice of the contest to any support enforcement 
307.15  agency providing services to the obligee and to: 
307.16     (1) the person or agency designated to receive payments in 
307.17  the income-withholding order; or 
307.18     (2) if no person or agency is designated, the obligee. 
307.19     Sec. 58.  [518C.5025] [EMPLOYER'S COMPLIANCE WITH 
307.20  INCOME-WITHHOLDING ORDER OF ANOTHER STATE.] 
307.21     (a) Upon receipt of an income-withholding order, the 
307.22  obligor's employer shall immediately provide a copy of the order 
307.23  to the obligor. 
307.24     (b) The employer shall treat an income-withholding order 
307.25  issued in another state which appears regular on its face as if 
307.26  it had been issued by a tribunal of this state. 
307.27     (c) Except as provided by paragraph (d) and section 
307.28  518C.503, the employer shall withhold and distribute the funds 
307.29  as directed in the withholding order by complying with the terms 
307.30  of the order, as applicable, that specify: 
307.31     (1) the duration and the amount of periodic payments of 
307.32  current child support, stated as a sum certain; 
307.33     (2) the person or agency designated to receive payments and 
307.34  the address to which the payments are to be forwarded; 
307.35     (3) medical support, whether in the form of periodic cash 
307.36  payment, stated as a sum certain, or ordering the obligor to 
308.1   provide health insurance coverage for the child under a policy 
308.2   available through the obligor's employment; 
308.3      (4) the amount of periodic payments of fees and costs for a 
308.4   support enforcement agency, the issuing tribunal, and the 
308.5   obligee's attorney, stated as sums certain; and 
308.6      (5) the amount of periodic payments of arrears and interest 
308.7   on arrears, stated as sums certain. 
308.8      (d) The employer shall comply with the law of the state of 
308.9   the obligor's principal place of employment for withholding from 
308.10  income with respect to: 
308.11     (1) the employer's fee for processing an income-withholding 
308.12  order; 
308.13     (2) the maximum amount permitted to be withheld from the 
308.14  obligor's income; and 
308.15     (3) the time periods within which the employer must 
308.16  implement the withholding order and forward the child support 
308.17  payment. 
308.18     Sec. 59.  [518C.503] [COMPLIANCE WITH MULTIPLE 
308.19  INCOME-WITHHOLDING ORDERS.] 
308.20     If the obligor's employer receives multiple orders to 
308.21  withhold support from the earnings of the same obligor, the 
308.22  employer satisfies the terms of the multiple orders if the 
308.23  employer complies with the law of the state of the obligor's 
308.24  principal place of employment to establish the priorities for 
308.25  withholding and allocating income withheld for multiple child 
308.26  support obligees. 
308.27     Sec. 60.  [518C.504] [IMMUNITY FROM CIVIL LIABILITY.] 
308.28     An employer who complies with an income-withholding order 
308.29  issued in another state in accordance with this chapter is not 
308.30  subject to civil liability to any individual or agency with 
308.31  regard to the employer's withholding child support from the 
308.32  obligor's income. 
308.33     Sec. 61.  [518C.505] [PENALTIES FOR NONCOMPLIANCE.] 
308.34     An employer who willfully fails to comply with an 
308.35  income-withholding order issued by another state and received 
308.36  for enforcement is subject to the same penalties that may be 
309.1   imposed for noncompliance with an order issued by a tribunal of 
309.2   this state. 
309.3      Sec. 62.  [518C.506] [CONTEST BY OBLIGOR.] 
309.4      (a) An obligor may contest the validity or enforcement of 
309.5   an income-withholding order issued in another state and received 
309.6   directly by an employer in this state in the same manner as if 
309.7   the order had been issued by a tribunal of this state.  Section 
309.8   518C.604 applies to the contest. 
309.9      (b) The obligor shall give notice of the contest to: 
309.10     (1) a support enforcement agency providing services to the 
309.11  obligee; 
309.12     (2) each employer which has directly received an 
309.13  income-withholding order; and 
309.14     (3) the person or agency designated to receive payments in 
309.15  the income-withholding order or, if no person or agency is 
309.16  designated, to the obligee. 
309.17     Sec. 63.  [518C.508] [ADMINISTRATIVE ENFORCEMENT OF 
309.18  ORDERS.] 
309.19     (a) A party seeking to enforce a support order or an 
309.20  income-withholding order, or both, issued by a tribunal of 
309.21  another state may send the documents required for registering 
309.22  the order to a support enforcement agency of this state. 
309.23     (b) Upon receipt of the documents, the support enforcement 
309.24  agency, without initially seeking to register the order, shall 
309.25  consider and may use any administrative procedure authorized by 
309.26  the laws of this state to enforce a support order or an 
309.27  income-withholding order, or both.  If the obligor does not 
309.28  contest administrative enforcement, the order need not be 
309.29  registered.  If the obligor contests the validity or 
309.30  administrative enforcement of the order, the support enforcement 
309.31  agency shall register the order under this chapter. 
309.32     Sec. 64.  Minnesota Statutes 1996, section 518C.603, is 
309.33  amended to read: 
309.34     518C.603 [EFFECT OF REGISTRATION FOR ENFORCEMENT.] 
309.35     (a) A support order or income-withholding order issued in 
309.36  another state is registered when the order is filed in the 
310.1   registering tribunal of this state. 
310.2      (b) A registered order issued in another state is 
310.3   enforceable in the same manner and is subject to the same 
310.4   procedures as an order issued by a tribunal of this state. 
310.5      (c) Except as otherwise provided in sections 518C.601 to 
310.6   518C.612 this chapter, a tribunal of this state shall recognize 
310.7   and enforce, but may not modify, a registered order if the 
310.8   issuing tribunal had jurisdiction. 
310.9      Sec. 65.  Minnesota Statutes 1996, section 518C.605, is 
310.10  amended to read: 
310.11     518C.605 [NOTICE OF REGISTRATION OF ORDER.] 
310.12     (a) When a support order or income-withholding order issued 
310.13  in another state is registered, the registering tribunal shall 
310.14  notify the nonregistering party.  Notice must be given by 
310.15  certified or registered mail or by any means of personal service 
310.16  authorized by the law of this state.  The notice must be 
310.17  accompanied by a copy of the registered order and the documents 
310.18  and relevant information accompanying the order. 
310.19     (b) The notice must inform the nonregistering party: 
310.20     (1) that a registered order is enforceable as of the date 
310.21  of registration in the same manner as an order issued by a 
310.22  tribunal of this state; 
310.23     (2) that a hearing to contest the validity or enforcement 
310.24  of the registered order must be requested within 20 days after 
310.25  the date of mailing or personal service of the notice; 
310.26     (3) that failure to contest the validity or enforcement of 
310.27  the registered order in a timely manner will result in 
310.28  confirmation of the order and enforcement of the order and the 
310.29  alleged arrearages and precludes further contest of that order 
310.30  with respect to any matter that could have been asserted; and 
310.31     (4) of the amount of any alleged arrearages. 
310.32     (c) Upon registration of an income-withholding order for 
310.33  enforcement, the registering tribunal shall notify the obligor's 
310.34  employer pursuant to section 518.611 or 518.613. 
310.35     Sec. 66.  Minnesota Statutes 1996, section 518C.608, is 
310.36  amended to read: 
311.1      518C.608 [CONFIRMED ORDER.] 
311.2      If a contesting party has received notice of registration 
311.3   under section 518C.605, Confirmation of a registered order, 
311.4   whether by operation of law or after notice and hearing, 
311.5   precludes further contest of the order based upon facts that 
311.6   were known by the contesting party at the time of registration 
311.7   with respect to any matter that could have been asserted at the 
311.8   time of registration with respect to any matter that could have 
311.9   been asserted at the time of registration. 
311.10     Sec. 67.  Minnesota Statutes 1996, section 518C.611, is 
311.11  amended to read: 
311.12     518C.611 [MODIFICATION OF CHILD SUPPORT ORDER OF ANOTHER 
311.13  STATE.] 
311.14     (a) After a child support order issued in another state has 
311.15  been registered in this state, the responding tribunal of this 
311.16  state may modify that order only if, section 518C.613 does not 
311.17  apply and after notice and hearing, it finds that: 
311.18     (1) the following requirements are met: 
311.19     (i) the child, the individual obligee, and the obligor do 
311.20  not reside in the issuing state; 
311.21     (ii) a petitioner who is a nonresident of this state seeks 
311.22  modification; and 
311.23     (iii) the respondent is subject to the personal 
311.24  jurisdiction of the tribunal of this state; or 
311.25     (2) an individual party or the child, or a party who is an 
311.26  individual, is subject to the personal jurisdiction of the 
311.27  tribunal of this state and all of the individual parties who are 
311.28  individuals have filed a written consent consents in the issuing 
311.29  tribunal providing that for a tribunal of this state may to 
311.30  modify the support order and assume continuing, exclusive 
311.31  jurisdiction over the order.  However, if the issuing state is a 
311.32  foreign jurisdiction that has not enacted a law or established 
311.33  procedures substantially similar to the procedures in this 
311.34  chapter, the consent otherwise required of an individual 
311.35  residing in this state is not required for the tribunal to 
311.36  assume jurisdiction to modify the child support order.  
312.1      (b) Modification of a registered child support order is 
312.2   subject to the same requirements, procedures, and defenses that 
312.3   apply to the modification of an order issued by a tribunal of 
312.4   this state and the order may be enforced and satisfied in the 
312.5   same manner. 
312.6      (c) A tribunal of this state may not modify any aspect of a 
312.7   child support order that may not be modified under the law of 
312.8   the issuing state.  If two or more tribunals have issued child 
312.9   support orders for the same obligor and child, the order that 
312.10  controls and must be recognized under section 518C.207 
312.11  establishes the aspects of the support order which are 
312.12  nonmodifiable. 
312.13     (d) On issuance of an order modifying a child support order 
312.14  issued in another state, a tribunal of this state becomes the 
312.15  tribunal of continuing, exclusive jurisdiction. 
312.16     (e) Within 30 days after issuance of a modified child 
312.17  support order, the party obtaining the modification shall file a 
312.18  certified copy of the order with the issuing tribunal which had 
312.19  continuing, exclusive jurisdiction over the earlier order, and 
312.20  in each tribunal in which the party knows that earlier order has 
312.21  been registered. 
312.22     Sec. 68.  Minnesota Statutes 1996, section 518C.612, is 
312.23  amended to read: 
312.24     518C.612 [RECOGNITION OF ORDER MODIFIED IN ANOTHER STATE.] 
312.25     A tribunal of this state shall recognize a modification of 
312.26  its earlier child support order by a tribunal of another state 
312.27  which assumed jurisdiction pursuant according to this chapter or 
312.28  a law substantially similar to this chapter and, upon request, 
312.29  except as otherwise provided in this chapter, shall: 
312.30     (1) enforce the order that was modified only as to amounts 
312.31  accruing before the modification; 
312.32     (2) enforce only nonmodifiable aspects of that order; 
312.33     (3) provide other appropriate relief only for violations of 
312.34  that order which occurred before the effective date of the 
312.35  modification; and 
312.36     (4) recognize the modifying order of the other state, upon 
313.1   registration, for the purpose of enforcement. 
313.2      Sec. 69.  [518C.613] [JURISDICTION TO MODIFY SUPPORT ORDER 
313.3   OF ANOTHER STATE WHEN INDIVIDUAL PARTIES RESIDE IN THIS STATE.] 
313.4      (a) If all of the parties who are individuals reside in 
313.5   this state and the child does not reside in the issuing state, a 
313.6   tribunal of this state has jurisdiction to enforce and to modify 
313.7   the issuing state's child support order in a proceeding to 
313.8   register that order. 
313.9      (b) A tribunal of this state exercising jurisdiction as 
313.10  provided in this section shall apply sections 518C.101 to 
313.11  518C.209 and 518C.601 to 518C.614 to the enforcement or 
313.12  modification proceeding.  Sections 518C.301 to 518C.507 and 
313.13  518C.701 to 518C.802 do not apply and the tribunal shall apply 
313.14  the procedural and substantive law of this state. 
313.15     Sec. 70.  [518C.614] [NOTICE TO ISSUING TRIBUNAL OF 
313.16  MODIFICATION.] 
313.17     Within 30 days after issuance of a modified child support 
313.18  order, the party obtaining the modification shall file a 
313.19  certified copy of the order with the issuing tribunal that had 
313.20  continuing, exclusive jurisdiction over the earlier order, and 
313.21  in each tribunal in which the party knows the earlier order has 
313.22  been registered.  A party who obtains the order and fails to 
313.23  file a certified copy is subject to appropriate sanctions by a 
313.24  tribunal in which the issue of failure to file arises.  The 
313.25  failure to file does not affect the validity or enforceability 
313.26  of the modified order of the new tribunal having continuing, 
313.27  exclusive jurisdiction. 
313.28     Sec. 71.  Minnesota Statutes 1996, section 518C.701, is 
313.29  amended to read: 
313.30     518C.701 [PROCEEDING TO DETERMINE PARENTAGE.] 
313.31     (a) A tribunal of this state may serve as an initiating or 
313.32  responding tribunal in a proceeding brought under this chapter 
313.33  or a law or procedure substantially similar to this chapter, or 
313.34  under a law or procedure substantially similar to the uniform 
313.35  reciprocal enforcement of support act, or the revised uniform 
313.36  reciprocal enforcement of support act to determine that the 
314.1   petitioner is a parent of a particular child or to determine 
314.2   that a respondent is a parent of that child. 
314.3      (b) In a proceeding to determine parentage, a responding 
314.4   tribunal of this state shall apply the parentage act, sections 
314.5   257.51 to 257.74, and the rules of this state on choice of law. 
314.6      Sec. 72.  Minnesota Statutes 1996, section 548.091, 
314.7   subdivision 1a, is amended to read: 
314.8      Subd. 1a.  [CHILD SUPPORT JUDGMENT BY OPERATION OF LAW.] 
314.9   (a) Any payment or installment of support required by a judgment 
314.10  or decree of dissolution or legal separation, determination of 
314.11  parentage, an order under chapter 518C, an order under section 
314.12  256.87, or an order under section 260.251, that is not paid or 
314.13  withheld from the obligor's income as required under section 
314.14  518.611 or 518.613, or which is ordered as child support by 
314.15  judgment, decree, or order by a court in any other state, is a 
314.16  judgment by operation of law on and after the date it is due and 
314.17  is entitled to full faith and credit in this state and any other 
314.18  state.  Except as otherwise provided by paragraph (b), interest 
314.19  accrues from the date the unpaid amount due is greater than the 
314.20  current support due at the annual rate provided in section 
314.21  549.09, subdivision 1, plus two percent, not to exceed an annual 
314.22  rate of 18 percent.  A payment or installment of support that 
314.23  becomes a judgment by operation of law between the date on which 
314.24  a party served notice of a motion for modification under section 
314.25  518.64, subdivision 2, and the date of the court's order on 
314.26  modification may be modified under that subdivision. 
314.27     (b) Notwithstanding the provisions of section 549.09, upon 
314.28  motion to the court and upon proof by the obligor of 36 
314.29  consecutive months of complete and timely payments of both 
314.30  current support and court-ordered paybacks of a child support 
314.31  debt or arrearage, the court may order interest on the remaining 
314.32  debt or arrearage to stop accruing.  Timely payments are those 
314.33  made in the month in which they are due.  If, after that time, 
314.34  the obligor fails to make complete and timely payments of both 
314.35  current support and court-ordered paybacks of child support debt 
314.36  or arrearage, the public authority or the obligee may move the 
315.1   court for the reinstatement of interest as of the month in which 
315.2   the obligor ceased making complete and timely payments. 
315.3      The court shall provide copies of all orders issued under 
315.4   this section to the public authority.  The commissioner of human 
315.5   services shall prepare and make available to the court and the 
315.6   parties forms to be submitted by the parties in support of a 
315.7   motion under this paragraph. 
315.8      Sec. 73.  Minnesota Statutes 1996, section 548.091, 
315.9   subdivision 2a, is amended to read: 
315.10     Subd. 2a.  [DOCKETING OF CHILD SUPPORT JUDGMENT.] On or 
315.11  after the date an unpaid amount becomes a judgment by operation 
315.12  of law under subdivision 1a, the obligee or the public authority 
315.13  may file with the court administrator, either electronically or 
315.14  by other means: 
315.15     (1) a statement identifying, or a copy of, the judgment or 
315.16  decree of dissolution or legal separation, determination of 
315.17  parentage, order under chapter 518C, an order under section 
315.18  256.87, or an order under section 260.251, or judgment, decree, 
315.19  or order for child support by a court in any other state, which 
315.20  provides for installment or periodic payments installments of 
315.21  child support, or a judgment or notice of attorney fees and 
315.22  collection costs under section 518.14, subdivision 2; 
315.23     (2) an affidavit of default.  The affidavit of default must 
315.24  state the full name, occupation, place of residence, and last 
315.25  known post office address of the obligor, the name and post 
315.26  office address of the obligee, the date or dates payment was due 
315.27  and not received and judgment was obtained by operation of law, 
315.28  and the total amount of the judgments to the date of filing, and 
315.29  the amount and frequency of the periodic installments of child 
315.30  support that will continue to become due and payable subsequent 
315.31  to the date of filing; and 
315.32     (3) an affidavit of service of a notice of entry of 
315.33  judgment or notice of intent to docket judgment and to recover 
315.34  attorney fees and collection costs on the obligor, in person or 
315.35  by mail at the obligor's last known post office address.  
315.36  Service is completed upon mailing in the manner designated. 
316.1   Where applicable, a notice of interstate lien in the form 
316.2   promulgated under United States Code, title 42, section 652(a), 
316.3   is sufficient to satisfy the requirements of clauses (1) and (2).
316.4      Sec. 74.  Minnesota Statutes 1996, section 548.091, 
316.5   subdivision 3a, is amended to read: 
316.6      Subd. 3a.  [ENTRY, DOCKETING, AND SURVIVAL OF CHILD SUPPORT 
316.7   JUDGMENT.] Upon receipt of the documents filed under subdivision 
316.8   2a, the court administrator shall enter and docket the judgment 
316.9   in the amount of the default specified in the affidavit of 
316.10  default unpaid obligation identified in the affidavit of default 
316.11  and note the amount and frequency of the periodic installments 
316.12  of child support that will continue to become due and payable 
316.13  after the date of docketing.  From the time of docketing, the 
316.14  judgment is a lien upon all the real property in the county 
316.15  owned by the judgment debtor, but it is not a lien on registered 
316.16  land unless the obligee or the public authority causes a notice 
316.17  of judgment lien or certified copy of the judgment to be 
316.18  memorialized on the certificate of title or certificate of 
316.19  possessory title under section 508.63 or 508A.63.  The judgment 
316.20  survives and the lien continues for ten years after the date the 
316.21  judgment was docketed.  Child support judgments may be renewed 
316.22  by service of notice upon the debtor.  Service shall be by 
316.23  certified mail at the last known address of the debtor or in the 
316.24  manner provided for the service of civil process.  Upon the 
316.25  filing of the notice and proof of service the court 
316.26  administrator shall renew the judgment for child support without 
316.27  any additional filing fee. 
316.28     Sec. 75.  Minnesota Statutes 1996, section 548.091, is 
316.29  amended by adding a subdivision to read: 
316.30     Subd. 5.  [AUTOMATIC INCREASES; SATISFACTION.] After 
316.31  docketing and until satisfied by the obligee, public authority, 
316.32  or the court administrator, the amount of the docketed judgment 
316.33  automatically increases by the total amount of periodic 
316.34  installments of child support that became due and payable 
316.35  subsequent to the date of docketing, plus attorney's fees and 
316.36  collection costs incurred by the public authority, and less any 
317.1   payment made by the obligor to partially satisfy the docketed 
317.2   judgment.  The court administrator shall not satisfy any child 
317.3   support judgment without first obtaining a written judgment 
317.4   payoff statement from the public authority or obligee.  If no 
317.5   such statement can be obtained within two business days, the 
317.6   court administrator shall only satisfy the judgment if the 
317.7   amount paid to the court administrator equals the judgment 
317.8   amount plus interest and costs, and the amount of the periodic 
317.9   installment times the number of payments due since the date of 
317.10  docketing of the judgment.  
317.11     Sec. 76.  Minnesota Statutes 1996, section 548.091, is 
317.12  amended by adding a subdivision to read: 
317.13     Subd. 6.  [NOTE ON JUDGMENT ROLL.] The court administrator 
317.14  shall note on the judgment roll which judgments are filed 
317.15  pursuant to this section and the amount and frequency of the 
317.16  periodic installment of child support that will continue to 
317.17  become due and payable after the date of docketing.  
317.18     Sec. 77.  Minnesota Statutes 1996, section 548.091, is 
317.19  amended by adding a subdivision to read: 
317.20     Subd. 7.  [FEES.] The public authority is exempt from 
317.21  payment of fees when a judgment is docketed or a certified copy 
317.22  of a judgment is issued by a court administrator, or a notice of 
317.23  judgment lien or a certified copy of a judgment is presented to 
317.24  a registrar of titles for recording.  If a notice or certified 
317.25  copy is recorded by the public authority under this subdivision, 
317.26  the registrar of titles may collect from a party presenting for 
317.27  recording a satisfaction or release of the notice or certified 
317.28  copy the fees for recording and memorializing both the notice or 
317.29  certified copy and the satisfaction or release. 
317.30     Sec. 78.  Minnesota Statutes 1996, section 548.091, is 
317.31  amended by adding a subdivision to read: 
317.32     Subd. 8.  [REGISTERED LAND.] If requested by the public 
317.33  authority and upon the public authority's providing a notice of 
317.34  judgment lien or a certified copy of a judgment for child 
317.35  support debt, together with a street address, tax parcel 
317.36  identifying number, or a legal description for a parcel of real 
318.1   property, the county recorder shall search the registered land 
318.2   records in that county and cause the notice of judgment lien or 
318.3   certified copy of the judgment to be memorialized on every 
318.4   certificate of title or certificate of possessory title of 
318.5   registered land in that county that can be reasonably identified 
318.6   as owned by the obligor who is named on a docketed judgment.  
318.7   The fees for memorializing the lien or judgment must be paid in 
318.8   the manner prescribed by subdivision 7.  The county recorders 
318.9   and their employees and agents are not liable for any loss or 
318.10  damages arising from failure to identify a parcel of registered 
318.11  land owned by the obligor who is named on the docketed judgment. 
318.12     Sec. 79.  Minnesota Statutes 1996, section 548.091, is 
318.13  amended by adding a subdivision to read: 
318.14     Subd. 9.  [PAYOFF STATEMENT.] The public authority shall 
318.15  issue to the obligor, attorneys, lenders, and closers, or their 
318.16  agents, a payoff statement setting forth conclusively the amount 
318.17  necessary to satisfy the lien.  Payoff statements must be issued 
318.18  within three business days after receipt of a request by mail, 
318.19  personal delivery, telefacsimile, or e-mail transmission, and 
318.20  must be delivered to the requester by telefacsimile or e-mail 
318.21  transmission if requested and if appropriate technology is 
318.22  available to the public authority. 
318.23     Sec. 80.  Minnesota Statutes 1996, section 548.091, is 
318.24  amended by adding a subdivision to read: 
318.25     Subd. 10.  [RELEASE OF LIEN.] Upon payment of the amount 
318.26  due under subdivision 5, the public authority shall execute and 
318.27  deliver a satisfaction of the judgment lien within five business 
318.28  days. 
318.29     Sec. 81.  Minnesota Statutes 1996, section 548.091, is 
318.30  amended by adding a subdivision to read: 
318.31     Subd. 11.  [SPECIAL PROCEDURES.] The public authority shall 
318.32  negotiate a release of lien on specific property for less than 
318.33  the full amount due where the proceeds of a sale or financing, 
318.34  less reasonable and necessary closing expenses, are not 
318.35  sufficient to satisfy all encumbrances on the liened property.  
318.36  Partial releases do not release the obligor's personal liability 
319.1   for the amount unpaid. 
319.2      Sec. 82.  Minnesota Statutes 1996, section 548.091, is 
319.3   amended by adding a subdivision to read: 
319.4      Subd. 12.  [CORRECTING ERRORS.] The public authority shall 
319.5   maintain a process to review the identity of the obligor and to 
319.6   issue releases of lien in cases of misidentification.  The 
319.7   public authority shall maintain a process to review the amount 
319.8   of child support determined to be delinquent and to issue 
319.9   amended notices of judgment lien in cases of incorrectly 
319.10  docketed judgments. 
319.11     Sec. 83.  Minnesota Statutes 1996, section 548.091, is 
319.12  amended by adding a subdivision to read: 
319.13     Subd. 13.  [FORMS.] The department of human services, after 
319.14  consultation with registrars of title, shall prescribe the 
319.15  notice of judgment lien.  These forms are not subject to chapter 
319.16  14. 
319.17     Sec. 84.  Minnesota Statutes 1996, section 550.37, 
319.18  subdivision 24, is amended to read: 
319.19     Subd. 24.  [EMPLOYEE BENEFITS.] (a) The debtor's right to 
319.20  receive present or future payments, or payments received by the 
319.21  debtor, under a stock bonus, pension, profit sharing, annuity, 
319.22  individual retirement account, individual retirement annuity, 
319.23  simplified employee pension, or similar plan or contract on 
319.24  account of illness, disability, death, age, or length of service:
319.25     (1) to the extent the plan or contract is described in 
319.26  section 401(a), 403, 408, or 457 of the Internal Revenue Code of 
319.27  1986, as amended, or payments under the plan or contract are or 
319.28  will be rolled over as provided in section 402(a)(5), 403(b)(8), 
319.29  or 408(d)(3) of the Internal Revenue Code of 1986, as amended; 
319.30  or 
319.31     (2) to the extent of the debtor's aggregate interest under 
319.32  all plans and contracts up to a present value of $30,000 and 
319.33  additional amounts under all the plans and contracts to the 
319.34  extent reasonably necessary for the support of the debtor and 
319.35  any spouse or dependent of the debtor.  
319.36     (b) The exemptions in paragraph (a) do not apply when the 
320.1   debt is owed under a support order as defined in section 518.54, 
320.2   subdivision 4a. 
320.3      Sec. 85.  [552.01] [DEFINITIONS.] 
320.4      Subdivision 1.  [SCOPE.] For the purposes of this chapter, 
320.5   the terms defined in this section have the meanings given them. 
320.6      Subd. 2.  [PUBLIC AUTHORITY.] "Public authority" means the 
320.7   public authority responsible for child support enforcement.  
320.8      Subd. 3.  [JUDGMENT DEBTOR.] "Judgment debtor"  means a 
320.9   party against whom the public authority has a judgment for the 
320.10  recovery of money owed pursuant to a support order as defined in 
320.11  section 518.54.  
320.12     Subd. 4.  [THIRD PARTY.] "Third party" means the person or 
320.13  entity upon whom the execution levy is served.  
320.14     Subd. 5.  [CLAIM.] "Claim" means the unpaid balance of the 
320.15  public authority's judgment against the judgment debtor, 
320.16  including all lawful interest and costs incurred. 
320.17     Subd. 6.  [FINANCIAL INSTITUTION.] "Financial institution" 
320.18  means all entities identified in section 13B.06. 
320.19     Sec. 86.  [552.02] [PUBLIC AUTHORITY'S SUMMARY EXECUTION OF 
320.20  SUPPORT JUDGMENT DEBTS; WHEN AUTHORIZED.] 
320.21     The public authority may execute on a money judgment 
320.22  resulting from money owed pursuant to a support order by levying 
320.23  under this chapter on indebtedness owed to the judgment debtor 
320.24  by a third party.  The public authority may execute under this 
320.25  chapter upon service of a notice of support judgment levy for 
320.26  which the seal of the court is not required. 
320.27     Sec. 87.  [552.03] [SCOPE OF GENERAL AND SPECIFIC 
320.28  PROVISIONS.] 
320.29     General provisions relating to the public authority's 
320.30  summary execution as authorized in this chapter are set forth in 
320.31  section 552.04.  Specific provisions relating to summary 
320.32  execution on funds at a financial institution are set forth in 
320.33  section 552.05.  When the public authority levies against funds 
320.34  at a financial institution, the specific provisions of section 
320.35  552.05 must be complied with in addition to the general 
320.36  provisions of section 552.04.  Provisions contained in the 
321.1   statutory forms are incorporated in this chapter and have the 
321.2   same force of law as any other provisions in this chapter.  
321.3      Sec. 88.  [552.04] [GENERAL PROVISIONS.] 
321.4      Subdivision 1.  [RULES OF CIVIL PROCEDURE.] Unless this 
321.5   chapter specifically provides otherwise, the Minnesota Rules of 
321.6   Civil Procedure for the District Courts and section 518.511 
321.7   apply in all proceedings under this chapter.  
321.8      Subd. 2.  [PROPERTY ATTACHABLE BY SERVICE OF LEVY.] Subject 
321.9   to the exemptions provided by subdivision 3 and section 550.37, 
321.10  and any other applicable statute, to the extent the exemptions 
321.11  apply in cases of child support enforcement, the service by the 
321.12  public authority of a notice of support judgment levy under this 
321.13  chapter attaches all nonexempt indebtedness or money due or 
321.14  belonging to the judgment debtor and owing by the third party or 
321.15  in the possession or under the control of the third party at the 
321.16  time of service of the notice of support judgment levy, whether 
321.17  or not the indebtedness or money has become payable.  The third 
321.18  party shall not be compelled to pay or deliver the same before 
321.19  the time specified by any agreement unless the agreement was 
321.20  fraudulently contracted to defeat an execution levy or other 
321.21  collection remedy. 
321.22     Subd. 3.  [PROPERTY NOT ATTACHABLE.] The following property 
321.23  is not subject to attachment by a notice of support judgment 
321.24  levy served under this chapter:  
321.25     (1) any indebtedness or money due to the judgment debtor, 
321.26  unless at the time of the service of the notice of support 
321.27  judgment levy the same is due absolutely or does not depend upon 
321.28  any contingency; 
321.29     (2) any judgment owing by the third party to the judgment 
321.30  debtor, if the third party or the third party's property is 
321.31  liable on an execution levy upon the judgment; 
321.32     (3) any debt owing by the third party to the judgment 
321.33  debtor for which any negotiable instrument has been issued or 
321.34  endorsed by the third party; 
321.35     (4) any indebtedness or money due to the judgment debtor 
321.36  with a cumulative value of less than $10; and 
322.1      (5) any disposable earnings, indebtedness, or money that is 
322.2   exempt under state or federal law to the extent the exemptions 
322.3   apply in cases of child support enforcement.  
322.4      Subd. 4.  [SERVICE OF THIRD PARTY LEVY; NOTICE AND 
322.5   DISCLOSURE FORMS.] When levying upon money owed to the judgment 
322.6   debtor by a third party, the public authority shall serve a copy 
322.7   of the notice of support judgment levy upon the third party 
322.8   either by registered or certified mail, or by personal service.  
322.9   Along with a copy of the notice of support judgment levy, the 
322.10  public authority shall serve upon the third party a notice of 
322.11  support judgment levy and disclosure form that must be 
322.12  substantially in the form set forth below. 
322.13                OFFICE OF ADMINISTRATIVE HEARINGS
322.14                               File No. ...........
322.15  ........ (Public authority)
322.16  against                        NOTICE OF SUPPORT JUDGMENT
322.17  ........ (Judgment Debtor)     LEVY AND DISCLOSURE
322.18  and                            (OTHER THAN EARNINGS)
322.19  ........ (Third Party)
322.20     PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 
322.21  chapters 518 and 522, the undersigned, as representative of the 
322.22  public authority responsible for child support enforcement, 
322.23  makes demand and levies execution upon all money due and owing 
322.24  by you to the judgment debtor for the amount of the judgment 
322.25  specified below.  A copy of the notice of support judgment levy 
322.26  is enclosed.  The unpaid judgment balance is $...... 
322.27     In responding to this levy, you are to complete the 
322.28  attached disclosure form and mail it to the public authority, 
322.29  together with your check payable to the public authority, for 
322.30  the nonexempt amount owed by you to the judgment debtor or for 
322.31  which you are obligated to the judgment debtor, within the time 
322.32  limits in chapter 552. 
322.33                       Public Authority
322.34                        Address
322.35                        (........)
322.36                        Phone number
322.37     
322.38                            DISCLOSURE
322.39     On the ... day of ......, 19..., the time of service of the 
322.40  execution levy herein, there was due and owing the judgment 
323.1   debtor from the third party the following: 
323.2      (1) Money.  Enter on the line below any amounts due and 
323.3   owing the judgment debtor, except earnings, from the third party.
323.4      ......................... 
323.5      (2) Setoff.  Enter on the line below the amount of any 
323.6   setoff, defense, lien, or claim which the third party claims 
323.7   against the amount set forth on line (1).  State the facts by 
323.8   which the setoff, defense, lien, or claim is claimed.  (Any 
323.9   indebtedness to you incurred by the judgment debtor within ten 
323.10  days prior to the receipt of the first execution levy on a debt 
323.11  may not be claimed as a setoff, defense, lien, or claim against 
323.12  the amount set forth on line (1).) 
323.13     ......................... 
323.14     (3) Exemption.  Enter on the line below any amounts or 
323.15  property claimed by the judgment debtor to be exempt from 
323.16  execution. 
323.17     ......................... 
323.18     (4) Adverse Interest.  Enter on the line below any amounts 
323.19  claimed by other persons by reason of ownership or interest in 
323.20  the judgment debtor's property. 
323.21     ......................... 
323.22     (5) Enter on the line below the total of lines (2), (3), 
323.23  and (4). 
323.24     .........................  
323.25     (6) Enter on the line below the difference obtained (never 
323.26  less than zero when line (5) is subtracted from the amount on 
323.27  line (1)).  
323.28     ......................... 
323.29     (7) Enter on the line below 100 percent of the amount of 
323.30  the public authority 's claim which remains unpaid.  
323.31     ......................... 
323.32     (8) Enter on the line below the lesser of line (6) and line 
323.33  (7).  You are instructed to remit this amount only if it is $10 
323.34  or more.  
323.35     ......................... 
323.36                           AFFIRMATION
324.1      I, .......... (person signing Affirmation), am the third 
324.2   party or I am authorized by the third party to complete this 
324.3   nonearnings disclosure, and have done so truthfully and to the 
324.4   best of my knowledge. 
324.5   Dated:..........                Signature
324.6                                    ..........
324.7                                    Title
324.8                                    ..........
324.9                                    Telephone Number
324.10     Subd. 5.  [THIRD PARTY DISCLOSURE AND REMITTANCE.] Within 
324.11  15 days after receipt of the notice of support judgment levy, 
324.12  unless governed by section 552.05, the third party shall 
324.13  disclose and remit to the public authority as much of the amount 
324.14  due as the third party's own debt equals to the judgment debtor. 
324.15     Subd. 6.  [ORAL DISCLOSURE.] Before or after the service of 
324.16  a written disclosure by a third party under subdivision 5, upon 
324.17  a showing by affidavit upon information and belief that an oral 
324.18  examination of the third party would provide a complete 
324.19  disclosure of relevant facts, any party to the execution 
324.20  proceedings may obtain an ex parte order requiring the third 
324.21  party, or a representative of the third party designated by name 
324.22  or by title, to appear for oral examination before the court or 
324.23  a referee appointed by the court.  Notice of the examination 
324.24  must be given to all parties. 
324.25     Subd. 7.  [SUPPLEMENTAL COMPLAINT.] If a third party holds 
324.26  property, money, earnings, or other indebtedness by a title that 
324.27  is void as to the judgment debtor's creditors, the property may 
324.28  be levied on although the judgment debtor would be barred from 
324.29  maintaining an action to recover the property, money, earnings, 
324.30  or other indebtedness.  In this and all other cases where the 
324.31  third party denies liability, the public authority may move the 
324.32  court at any time before the third party is discharged, on 
324.33  notice to both the judgment debtor and the third party for an 
324.34  order making the third party a party to supplemental action and 
324.35  granting the public authority leave to file a supplemental 
324.36  complaint against the third party and the judgment debtor.  The 
324.37  supplemental complaint shall set forth the facts upon which the 
324.38  public authority claims to charge the third party.  If probable 
325.1   cause is shown, the motion shall be granted.  The supplemental 
325.2   complaint shall be served upon the third party and the judgment 
325.3   debtor and any other parties.  The parties served shall answer 
325.4   or respond pursuant to the Minnesota Rules of Civil Procedure 
325.5   for the district courts, and if they fail to do so, judgment by 
325.6   default may be entered against them.  
325.7      Subd. 8.  [JUDGMENT AGAINST THIRD PARTY UPON FAILURE TO 
325.8   DISCLOSE OR REMIT.] Judgment may be entered against a third 
325.9   party who has been served with a notice of support judgment levy 
325.10  and fails to disclose or remit the levied funds as required in 
325.11  this chapter.  Upon order to show cause served on the third 
325.12  party and notice of motion supported by affidavit of facts and 
325.13  affidavit of service upon both the judgment debtor and third 
325.14  party, the court may render judgment against the third party for 
325.15  an amount not exceeding 100 percent of the amount claimed in the 
325.16  execution.  Judgment against the third party under this section 
325.17  shall not bar the public authority from further remedies under 
325.18  this chapter as a result of any subsequent defaults by the third 
325.19  party.  The court upon good cause shown may remove the default 
325.20  and permit the third party to disclose or remit on just terms.  
325.21     Subd. 9.  [SATISFACTION.] Upon expiration, the public 
325.22  authority making the execution may file a partial satisfaction 
325.23  by amount or, if applicable, shall file the total satisfaction 
325.24  with the court administrator without charge.  
325.25     Subd. 10.  [THIRD PARTY GOOD FAITH REQUIREMENT.] The third 
325.26  party is not liable to the judgment debtor, public authority, or 
325.27  other person for wrongful retention if the third party retains 
325.28  or remits disposable earnings, indebtedness, or money of the 
325.29  judgment debtor or any other person, pending the third party's 
325.30  disclosure or consistent with the disclosure the third party 
325.31  makes, if the third party has a good faith belief that the 
325.32  property retained or remitted is subject to the execution.  In 
325.33  addition, the third party may, at any time before or after 
325.34  disclosure, proceed under Rule 67 of the Minnesota rules of 
325.35  civil procedure to make deposit into court.  No third party is 
325.36  liable for damages if the third party complies with the 
326.1   provisions of this chapter.  
326.2      Subd. 11.  [BAD FAITH CLAIM.] If, in a proceeding brought 
326.3   under section 552.05, subdivision 9, or a similar proceeding 
326.4   under this chapter to determine a claim of exemption, the claim 
326.5   of exemption is not upheld, and the court finds that it was 
326.6   asserted in bad faith, the public authority shall be awarded 
326.7   actual damages, costs, reasonable attorney's fees resulting from 
326.8   the additional proceedings, and an amount not to exceed $100.  
326.9   If the claim of exemption is upheld, and the court finds that 
326.10  the public authority disregarded the claim of exemption in bad 
326.11  faith, the judgment debtor shall be awarded actual damages, 
326.12  costs, reasonable attorney's fees resulting from the additional 
326.13  proceedings, and an amount not to exceed $100.  The underlying 
326.14  judgment shall be modified to reflect assessment of damages, 
326.15  costs, and attorney's fees.  However, if the party in whose 
326.16  favor a penalty assessment is made is not actually indebted to 
326.17  that party's attorney for fees, the attorney's fee award shall 
326.18  be made directly to the attorney, and if not paid, an 
326.19  appropriate judgment in favor of the attorney shall be entered.  
326.20  Any action by a public authority made in bad faith and in 
326.21  violation of this chapter renders the execution levy void and 
326.22  the public authority liable to the judgment debtor named in the 
326.23  execution levy in the amount of $100, actual damages, and 
326.24  reasonable attorney's fees and costs.  
326.25     Subd. 12.  [DISCHARGE OF A THIRD PARTY.] Subject to 
326.26  subdivisions 6 and 13, the third party, after disclosure, shall 
326.27  be discharged of any further obligation to the public authority 
326.28  when one of the following conditions is met:  
326.29     (a) The third party discloses that the third party is not 
326.30  indebted to the judgment debtor or does not possess any 
326.31  earnings, property, money, or indebtedness belonging to the 
326.32  judgment debtor that is attachable as defined in subdivision 2.  
326.33  The disclosure is conclusive against the public authority and 
326.34  discharges the third party from any further obligation to the 
326.35  public authority other than to retain and remit all nonexempt 
326.36  disposable earnings, property, indebtedness, or money of the 
327.1   judgment debtor which was disclosed.  
327.2      (b) The third party discloses that the third party is 
327.3   indebted to the judgment debtor as indicated on the execution 
327.4   disclosure form.  The disclosure is conclusive against the 
327.5   public authority and discharges the third party from any further 
327.6   obligation to the public authority other than to retain and 
327.7   remit all nonexempt disposable earnings, property, indebtedness, 
327.8   or money of the judgment debtor that was disclosed. 
327.9      (c) The court may, upon motion of an interested person, 
327.10  discharge the third party as to any disposable earnings, money, 
327.11  property, or indebtedness in excess of the amount that may be 
327.12  required to satisfy the public authority's claim.  
327.13     Subd. 13.  [EXCEPTIONS TO DISCHARGE OF A THIRD PARTY.] The 
327.14  third party is not discharged if:  
327.15     (a) Within 20 days of the service of the third party's 
327.16  disclosure, an interested person serves a motion relating to the 
327.17  execution levy. The hearing on the motion must be scheduled to 
327.18  be heard within 30 days of the service of the motion.  
327.19     (b) The public authority moves the court for leave to file 
327.20  a supplemental complaint against the third party, as provided 
327.21  for in subdivision 7, and the court upon proper showing vacates 
327.22  the discharge of the third party.  
327.23     Subd. 14.  [JOINDER AND INTERVENTION BY PERSONS IN 
327.24  INTEREST.] If it appears that a person, who is not a party to 
327.25  the action, has or claims an interest in any of the disposable 
327.26  earnings, other indebtedness, or money, the court shall permit 
327.27  that person to intervene or join in the execution proceeding 
327.28  under this chapter.  If that person does not appear, the court 
327.29  may summon that person to appear or order the claim barred.  The 
327.30  person so appearing or summoned shall be joined as a party and 
327.31  be bound by the judgment.  
327.32     Subd. 15.  [APPEAL.] A party to an execution proceeding 
327.33  aggrieved by an order or final judgment may appeal as allowed by 
327.34  law.  
327.35     Subd. 16.  [PRIORITY OF LEVY.] Notwithstanding section 
327.36  52.12, a levy by the public authority made under this section on 
328.1   an obligor's funds on deposit in a financial institution located 
328.2   in this state has priority over any unexercised right of setoff 
328.3   of the financial institution to apply the levied funds toward 
328.4   the balance of an outstanding loan or loans owed by the obligor 
328.5   to the financial institution.  A claim by the financial 
328.6   institution that it exercised its right to setoff prior to the 
328.7   levy by the public authority must be substantiated by evidence 
328.8   of the date of the setoff and must be verified by the sworn 
328.9   statement of a responsible corporate officer of the financial 
328.10  institution.  For purposes of determining the priority of a levy 
328.11  made under this section, the levy must be treated as if it were 
328.12  an execution made under chapter 550. 
328.13     Sec. 89.  [552.05] [SUMMARY EXECUTION UPON FUNDS AT A 
328.14  FINANCIAL INSTITUTION.] 
328.15     Subdivision 1.  [PROCEDURE.] In addition to the provisions 
328.16  of section 552.04, when levying upon funds at a financial 
328.17  institution, the public authority must comply with this 
328.18  section.  If the notice of support judgment levy is being used 
328.19  by the public authority to levy funds of a judgment debtor who 
328.20  is a natural person and if the funds to be levied are held on 
328.21  deposit at any financial institution, in lieu of service the 
328.22  public authority shall send with the notice of support judgment 
328.23  levy and disclosure required by section 552.04, subdivision 4, 
328.24  one copy of an exemption and right to hearing notice.  The 
328.25  notice must be substantially in the form determined by the 
328.26  commissioner in accordance with section 552.05, subdivision 10.  
328.27  Failure of the public authority to send the notice renders the 
328.28  execution levy void, and the financial institution shall take no 
328.29  action.  Upon receipt of the notice of support judgment levy and 
328.30  exemption and right to hearing notice, the financial institution 
328.31  shall retain as much of the amount due as the financial 
328.32  institution has on deposit owing to the judgment debtor, but not 
328.33  more than 100 percent of the amount remaining due on the 
328.34  judgment until directed by the public authority or the court to 
328.35  release the funds to the public authority or the judgment debtor 
328.36  in accordance with this chapter. 
329.1      Subd. 2.  [DUTIES OF FINANCIAL INSTITUTION.] Within two 
329.2   business days after receipt of the execution levy and exemption 
329.3   and right to hearing notice, the financial institution shall 
329.4   serve upon the judgment debtor the exemption and right to 
329.5   hearing notice.  The financial institution shall serve the 
329.6   notice by first class mail to the last known address of the 
329.7   judgment debtor.  If no claim of exemption or request for 
329.8   hearing is received by the public authority within 14 days after 
329.9   the notice is mailed to the judgment debtor, the public 
329.10  authority shall notify the financial institution within seven 
329.11  days that the funds remain subject to the execution levy and 
329.12  shall be remitted to the public authority.  If a claim of 
329.13  exemption or a request for hearing is received by the public 
329.14  authority within 14 days after the exemption notice is mailed to 
329.15  the judgment debtor, the public authority shall within seven 
329.16  days notify the financial institution either to release the 
329.17  funds to the judgment debtor or that the funds remain subject to 
329.18  the execution levy pending the determination of an 
329.19  administrative law judge at a requested contested case 
329.20  proceeding.  When notified by the public authority to release 
329.21  the funds, the financial institution shall release the funds to 
329.22  the public authority or to the judgment debtor, as directed by 
329.23  the public authority, within two business days. 
329.24     Subd. 3.  [PROCESS TO CLAIM EXEMPTION.] If the judgment 
329.25  debtor elects to claim an exemption, the judgment debtor shall 
329.26  complete the applicable portion of the exemption and right to 
329.27  hearing notice, sign it under penalty of perjury, and deliver 
329.28  one copy to the public authority within 14 days of the date 
329.29  postmarked on the correspondence mailed to the judgment debtor 
329.30  containing the exemption and right to hearing notice.  Failure 
329.31  of the judgment debtor to deliver the executed exemption and 
329.32  right to hearing notice does not constitute a waiver of any 
329.33  claimed right to an exemption.  Upon timely receipt of a claim 
329.34  of exemption, funds not claimed to be exempt by the judgment 
329.35  debtor remain subject to the execution levy.  Within seven days 
329.36  after the date postmarked on the envelope containing the 
330.1   executed exemption and right to hearing notice mailed to the 
330.2   public authority, or the date of personal delivery of the 
330.3   executed exemption and right to hearing notice to the public 
330.4   authority, the public authority shall either notify the 
330.5   financial institution to release the exempt portion of the funds 
330.6   to the judgment debtor or schedule a contested administrative 
330.7   proceeding pursuant to subdivision 5. 
330.8      Subd. 4.  [PROCESS TO REQUEST HEARING.] If the judgment 
330.9   debtor elects to request a hearing on any issue specified in 
330.10  subdivision 6, the judgment debtor shall complete the applicable 
330.11  portion of the exemption and right to hearing notice, sign it 
330.12  under penalty of perjury, and deliver one copy to the public 
330.13  authority within 14 days of the date postmarked on the 
330.14  correspondence mailed to the judgment debtor containing the 
330.15  exemption and right to hearing notice.  Upon timely receipt of a 
330.16  request for hearing, funds not claimed to be exempt by the 
330.17  judgment debtor remain subject to the execution levy.  Within 
330.18  seven days after the date postmarked on the envelope containing 
330.19  the executed request for hearing mailed to the public authority, 
330.20  or the date of personal delivery of the executed request for 
330.21  hearing to the public authority, the public authority shall 
330.22  either notify the financial institution to release the exempt 
330.23  portion of the funds to the judgment debtor or schedule a 
330.24  contested administrative proceeding under section 518.5511 and 
330.25  notify the judgment debtor of the time and place of the 
330.26  scheduled hearing. 
330.27     Subd. 5.  [DUTIES OF PUBLIC AUTHORITY IF HEARING IS 
330.28  REQUESTED.] Within seven days of the receipt of a request for 
330.29  hearing or a claim of exemption to which the public authority 
330.30  does not consent, the public authority shall schedule a 
330.31  contested administrative proceeding under section 518.5511.  The 
330.32  hearing must be scheduled to occur within five business days.  
330.33  The public authority shall send written notice of the hearing 
330.34  date, time, and place to the judgment debtor by first class 
330.35  mail.  The hearing may be conducted by telephone, audiovisual 
330.36  means or other electronic means, at the discretion of the 
331.1   administrative law judge.  If the hearing is to be conducted by 
331.2   telephone, audiovisual means, or other electronic means, the 
331.3   public authority shall provide reasonable assistance to the 
331.4   judgment debtor to facilitate the submission of all necessary 
331.5   documentary evidence to the administrative law judge, including 
331.6   access to the public authority's facsimile transmission machine. 
331.7      Subd. 6.  [ISSUES RELEVANT AT HEARING.] At any hearing 
331.8   requested by the judgment debtor under this chapter, the only 
331.9   issues to be determined are whether: 
331.10     (1) the public authority complied with the process required 
331.11  by this chapter; 
331.12     (2) the amount stated in the notice of support judgment 
331.13  levy is owed by the judgment debtor; 
331.14     (3) the amount stated in the notice of support judgment 
331.15  levy is correct; or 
331.16     (4) any of the funds levied upon are exempt. 
331.17     Subd. 7.  [NOTICE OF ORDER.] Within one business day of 
331.18  receipt of the order of the administrative law judge, the public 
331.19  authority shall send a copy of the order to the judgment debtor 
331.20  at the judgment debtor's last known address and to the financial 
331.21  institution. 
331.22     Subd. 8.  [RELEASE OF FUNDS.] At any time during the 
331.23  procedure specified in this section, the judgment debtor or the 
331.24  public authority may direct the financial institution to release 
331.25  the funds in question to the other party.  Upon receipt of a 
331.26  release, the financial institution shall release the funds as 
331.27  directed. 
331.28     Subd. 9.  [SUBSEQUENT PROCEEDINGS; BAD FAITH CLAIM.] If in 
331.29  subsequent proceedings brought by the judgment debtor or the 
331.30  public authority, the claim of exemption is not upheld, and the 
331.31  office of administrative hearings finds that it was asserted in 
331.32  bad faith, the public authority shall be awarded actual damages, 
331.33  costs, and reasonable attorney fees resulting from the 
331.34  additional proceedings, and an amount not to exceed $100.  The 
331.35  underlying judgment must be modified to reflect assessment of 
331.36  damages, costs, and attorney fees.  However, if the party in 
332.1   whose favor a penalty assessment is made is not actually 
332.2   indebted to the party's attorney for fees, the attorney's fee 
332.3   award shall be made directly to the attorney and if not paid, an 
332.4   appropriate judgment in favor of the attorney shall be entered.  
332.5   Upon motion of any party in interest, on notice, the office of 
332.6   administrative hearings shall determine the validity of any 
332.7   claim of exemption, and may make any order necessary to protect 
332.8   the rights of those interested.  No financial institution is 
332.9   liable for damages for complying with this section.  The 
332.10  financial institution may rely on the date of mailing or 
332.11  delivery of a notice to it in computing any time periods in this 
332.12  section. 
332.13     Subd. 10.  [FORMS.] The commissioner of human services 
332.14  shall develop statutory forms for use as required under this 
332.15  chapter.  In developing these forms, the commissioner shall 
332.16  consult with the attorney general, representatives of financial 
332.17  institutions, and legal services.  The commissioner shall report 
332.18  back to the legislature by February 1, 1998, with recommended 
332.19  forms to be included in this chapter. 
332.20     Sec. 90.  [CHILD SUPPORT ENFORCEMENT PROGRAM; SERVICES 
332.21  DELIVERY STUDY.] 
332.22     The commissioner of human services, in consultation with 
332.23  the commissioner's advisory committee, shall conduct a study of 
332.24  the overall state child support enforcement delivery system and 
332.25  shall recommend to the legislature a program design that will 
332.26  best meet the following goals: 
332.27     (1) comply with all state and federal laws and regulations; 
332.28     (2) deliver child support and paternity services in a 
332.29  timely manner; 
332.30     (3) meet federal performance criteria; 
332.31     (4) provide respectful and efficient service to custodial 
332.32  and noncustodial parents; 
332.33     (5) make efficient use of public money funding the program; 
332.34  and 
332.35     (6) provide a consistent level of services throughout the 
332.36  state. 
333.1      The study may make specific recommendations regarding 
333.2   staffing, training, program administration, customer access to 
333.3   services, use of technology, and other features of a successful 
333.4   child support program.  The commissioner may contract with a 
333.5   private vendor to complete the study.  The commissioner shall 
333.6   provide the study and recommendations to the legislature by July 
333.7   1, 1998. 
333.8      Sec. 91.  [AGENCY CONSULTATION ON SUSPENDING RECREATIONAL 
333.9   LICENSES.] 
333.10     The commissioner shall consult with other state agencies to 
333.11  obtain recommendations for establishing procedures to meet 
333.12  federal requirements to suspend recreational licenses of child 
333.13  support obligors who fail to pay child support.  The procedures 
333.14  must impose the fewest restrictions on recreational licenses 
333.15  consistent with federal law.  No procedure may be implemented 
333.16  until approved by the legislature and enacted into law. 
333.17     Sec. 92.  [INSTRUCTION TO REVISOR.] 
333.18     The revisor shall delete the references to sections 518.611 
333.19  and 518.613 and insert a reference to section 518.6111 wherever 
333.20  the occur in Minnesota Statutes and Minnesota Rules. 
333.21     Sec. 93.  [REPEALER.] 
333.22     (a) Minnesota Statutes 1996, sections 518C.9011; and 
333.23  609.375, subdivisions 3, 4, and 6, are repealed. 
333.24     (b) Minnesota Statutes 1996, section 256.74, subdivisions 5 
333.25  and 7, are repealed March 31, 1998. 
333.26     (c) Minnesota Statutes 1996, sections 256.979, subdivision 
333.27  9; 518.5511, subdivisions 5, 6, 7, 8, and 9; 518.611; 518.613; 
333.28  and 518.645, are repealed effective July 1, 1997.  
333.29     Sec. 94.  [EFFECTIVE DATES.] 
333.30     (a) Section 1 is effective the day following final 
333.31  enactment.  
333.32     (b) Section 3 is effective July 1, 1998. 
333.33     (c) Sections 72 to 83 are effective July 1, 1998. 
333.34     (d) Section 75 applies only to judgments docketed on or 
333.35  after July 1, 1998. 
333.36     (e) Sections 85 to 89 are effective July 1, 1998. 
334.1                              ARTICLE 7
334.2                 CONTINUING CARE FOR DISABLED PERSONS
334.3      Section 1.  Minnesota Statutes 1996, section 62E.14, is 
334.4   amended by adding a subdivision to read: 
334.5      Subd. 4e.  [WAIVER OF PREEXISTING CONDITIONS; PERSONS 
334.6   COVERED BY PUBLICLY FUNDED HEALTH PROGRAMS.] A person may enroll 
334.7   in the comprehensive plan with a waiver of the preexisting 
334.8   condition limitation in subdivision 3, provided that:  
334.9      (1) the person was formerly enrolled in the medical 
334.10  assistance, general assistance medical care, or MinnesotaCare 
334.11  program; 
334.12     (2) the person is a Minnesota resident; and 
334.13     (3) the person applies within 90 days of termination from 
334.14  medical assistance, general assistance medical care, or 
334.15  MinnesotaCare program. 
334.16     Sec. 2.  Minnesota Statutes 1996, section 245.652, 
334.17  subdivision 1, is amended to read: 
334.18     Subdivision 1.  [PURPOSE.] The regional treatment centers 
334.19  shall provide services designed to end a person's reliance on 
334.20  chemical use or a person's chemical abuse and increase effective 
334.21  and chemical-free functioning.  Clinically effective programs 
334.22  must be provided in accordance with section 246.64.  Services 
334.23  may be offered on the regional center campus or at sites 
334.24  elsewhere in the catchment area served by the regional treatment 
334.25  center. 
334.26     Sec. 3.  Minnesota Statutes 1996, section 245.652, 
334.27  subdivision 2, is amended to read: 
334.28     Subd. 2.  [SERVICES OFFERED.] Services provided must may 
334.29  include, but are not limited to, the following: 
334.30     (1) primary and extended residential care, including 
334.31  residential treatment programs of varied duration intended to 
334.32  deal with a person's chemical dependency or chemical abuse 
334.33  problems; 
334.34     (2) follow-up care to persons discharged from regional 
334.35  treatment center programs or other chemical dependency programs; 
334.36     (3) outpatient treatment programs; and 
335.1      (4) other treatment services, as appropriate and as 
335.2   provided under contract or shared service agreements. 
335.3      Sec. 4.  Minnesota Statutes 1996, section 245A.11, 
335.4   subdivision 2a, is amended to read: 
335.5      Subd. 2a.  [ADULT FOSTER CARE LICENSE CAPACITY.] An adult 
335.6   foster care license holder may have a maximum license capacity 
335.7   of five if all persons in care are age 60 or over and do not 
335.8   have a serious and persistent mental illness or a developmental 
335.9   disability.  The commissioner may grant variances to this 
335.10  subdivision to allow the use of a fifth bed for emergency crisis 
335.11  services for a person with serious and persistent mental illness 
335.12  or a developmental disability, regardless of age, provided the 
335.13  variance complies with the provisions in section 245A.04, 
335.14  subdivision 9, and approval of the variance is recommended by 
335.15  the county in which the licensed foster care provider is located.
335.16     Sec. 5.  Minnesota Statutes 1996, section 246.02, 
335.17  subdivision 2, is amended to read: 
335.18     Subd. 2.  The commissioner of human services shall act with 
335.19  the advice of the medical policy directional committee on mental 
335.20  health in the appointment and removal of the chief executive 
335.21  officers of the following institutions:  Anoka-Metro Regional 
335.22  Treatment Center, Ah-Gwah-Ching Center, Fergus Falls Regional 
335.23  Treatment Center, St. Peter Regional Treatment Center and 
335.24  Minnesota Security Hospital, Willmar Regional Treatment Center, 
335.25  Faribault Regional Center, Cambridge Regional Human Services 
335.26  Center, Brainerd Regional Human Services Center, and until June 
335.27  30, 1995, Moose Lake Regional Treatment Center, and after June 
335.28  30, 1995, Minnesota Sexual Psychopathic Personality Treatment 
335.29  Center and until June 30, 1998, Faribault Regional Center. 
335.30     Sec. 6.  Minnesota Statutes 1996, section 246.18, is 
335.31  amended by adding a subdivision to read: 
335.32     Subd. 2a.  [DISPOSITION OF INTEREST FOR CHEMICAL DEPENDENCY 
335.33  FUNDS.] Beginning July 1, 1991, interest earned on cash balances 
335.34  on deposit with the state treasurer derived from receipts from 
335.35  chemical dependency programs affiliated with state-operated 
335.36  facilities under the commissioner of human services must be 
336.1   deposited in the state treasury and credited to a chemical 
336.2   dependency account under subdivision 2.  Any interest earned is 
336.3   appropriated to the commissioner to operate chemical dependency 
336.4   programs according to subdivision 2. 
336.5      Sec. 7.  Minnesota Statutes 1996, section 252.025, 
336.6   subdivision 1, is amended to read: 
336.7      Subdivision 1.  [REGIONAL TREATMENT CENTERS.] State 
336.8   hospitals for persons with mental retardation shall be 
336.9   established and maintained at Faribault until June 30, 1998, 
336.10  Cambridge and Brainerd, and notwithstanding any provision to the 
336.11  contrary they shall be respectively known as the Faribault 
336.12  regional center, the Cambridge regional human services center, 
336.13  and the Brainerd regional human services center.  Each of the 
336.14  foregoing state hospitals shall also be known by the name of 
336.15  regional center at the discretion of the commissioner of human 
336.16  services.  The terms "human services" or "treatment" may be 
336.17  included in the designation. 
336.18     Sec. 8.  Minnesota Statutes 1996, section 252.025, 
336.19  subdivision 4, is amended to read: 
336.20     Subd. 4.  [STATE-PROVIDED SERVICES.] (a) It is the policy 
336.21  of the state to capitalize and recapitalize the regional 
336.22  treatment centers as necessary to prevent depreciation and 
336.23  obsolescence of physical facilities and to ensure they retain 
336.24  the physical capability to provide residential programs.  
336.25  Consistent with that policy and with section 252.50, and within 
336.26  the limits of appropriations made available for this purpose, 
336.27  the commissioner may establish, by June 30, 1991, the following 
336.28  state-operated, community-based programs for the least 
336.29  vulnerable regional treatment center residents:  at Brainerd 
336.30  regional services center, two residential programs and two day 
336.31  programs; at Cambridge regional treatment center, four 
336.32  residential programs and two day programs; at Faribault regional 
336.33  treatment center, ten residential programs and six day programs; 
336.34  at Fergus Falls regional treatment center, two residential 
336.35  programs and one day program; at Moose Lake regional treatment 
336.36  center, four residential programs and two day programs; and at 
337.1   Willmar regional treatment center, two residential programs and 
337.2   one day program. 
337.3      (b) By January 15, 1991, the commissioner shall report to 
337.4   the legislature a plan to provide continued regional treatment 
337.5   center capacity and state-operated, community-based residential 
337.6   and day programs for persons with developmental disabilities at 
337.7   Brainerd, Cambridge, Faribault, Fergus Falls, St. Peter, and 
337.8   Willmar, as follows: 
337.9      (1) by July 1, 1998, continued regional treatment center 
337.10  capacity to serve 350 persons with developmental disabilities as 
337.11  follows:  at Brainerd, 80 persons; at Cambridge, 12 persons; at 
337.12  Faribault, 110 persons; at Fergus Falls, 60 persons; at St. 
337.13  Peter, 35 persons; at Willmar, 25 persons; and up to 16 crisis 
337.14  beds in the Twin Cities metropolitan area; and 
337.15     (2) by July 1, 1999, continued regional treatment center 
337.16  capacity to serve 254 persons with developmental disabilities as 
337.17  follows:  at Brainerd, 57 persons; at Cambridge, 12 persons; at 
337.18  Faribault, 80 persons; at Fergus Falls, 35 persons; at St. 
337.19  Peter, 30 persons; at Willmar, 12 persons, and up to 16 crisis 
337.20  beds in the Twin Cities metropolitan area.  In addition, the 
337.21  plan shall provide for the capacity to provide residential 
337.22  services to 570 persons with developmental disabilities in 95 
337.23  state-operated, community-based residential programs. 
337.24     The commissioner is subject to a mandamus action under 
337.25  chapter 586 for any failure to comply with the provisions of 
337.26  this subdivision. 
337.27     Sec. 9.  Minnesota Statutes 1996, section 252.025, is 
337.28  amended by adding a subdivision to read: 
337.29     Subd. 7.  [MINNESOTA EXTENDED TREATMENT OPTIONS.] The 
337.30  commissioner shall develop by July 1, 1997, the Minnesota 
337.31  extended treatment options to serve Minnesotans who have mental 
337.32  retardation and exhibit severe behaviors which present a risk to 
337.33  public safety.  This program must provide specialized 
337.34  residential services on the Cambridge campus and an array of 
337.35  community support services statewide. 
337.36     Sec. 10.  Minnesota Statutes 1996, section 252.32, 
338.1   subdivision 1a, is amended to read: 
338.2      Subd. 1a.  [SUPPORT GRANTS.] (a) Provision of support 
338.3   grants must be limited to families who require support and whose 
338.4   dependents are under the age of 22 and who have mental 
338.5   retardation or who have a related condition and who have been 
338.6   determined by a screening team established under section 
338.7   256B.092 to be at risk of institutionalization.  Families who 
338.8   are receiving home and community-based waivered services for 
338.9   persons with mental retardation or related conditions are not 
338.10  eligible for support grants.  Families whose annual adjusted 
338.11  gross income is $60,000 or more are not eligible for support 
338.12  grants except in cases where extreme hardship is demonstrated.  
338.13  Beginning in state fiscal year 1994, the commissioner shall 
338.14  adjust the income ceiling annually to reflect the projected 
338.15  change in the average value in the United States Department of 
338.16  Labor Bureau of Labor Statistics consumer price index (all 
338.17  urban) for that year. 
338.18     (b) Support grants may be made available as monthly subsidy 
338.19  grants and lump sum grants. 
338.20     (c) Support grants may be issued in the form of cash, 
338.21  voucher, and direct county payment to a vendor.  
338.22     (d) Applications for the support grant shall be made by the 
338.23  legal guardian to the county social service agency to the 
338.24  department of human services.  The application shall specify the 
338.25  needs of the families, the form of the grant requested by the 
338.26  families, and that the families have agreed to use the support 
338.27  grant for items and services within the designated reimbursable 
338.28  expense categories and recommendations of the county.  
338.29     (e) Families who were receiving subsidies on the date of 
338.30  implementation of the $60,000 income limit in paragraph (a) 
338.31  continue to be eligible for a family support grant until 
338.32  December 31, 1991, if all other eligibility criteria are met.  
338.33  After December 31, 1991, these families are eligible for a grant 
338.34  in the amount of one-half the grant they would otherwise 
338.35  receive, for as long as they remain eligible under other 
338.36  eligibility criteria. 
339.1      Sec. 11.  Minnesota Statutes 1996, section 252.32, 
339.2   subdivision 3, is amended to read: 
339.3      Subd. 3.  [AMOUNT OF SUPPORT GRANT; USE.] Support grant 
339.4   amounts shall be determined by the commissioner of human 
339.5   services county social service agency.  Each service and item 
339.6   purchased with a support grant must: 
339.7      (1) be over and above the normal costs of caring for the 
339.8   dependent if the dependent did not have a disability; 
339.9      (2) be directly attributable to the dependent's disabling 
339.10  condition; and 
339.11     (3) enable the family to delay or prevent the out-of-home 
339.12  placement of the dependent. 
339.13     The design and delivery of services and items purchased 
339.14  under this section must suit the dependent's chronological age 
339.15  and be provided in the least restrictive environment possible, 
339.16  consistent with the needs identified in the individual service 
339.17  plan. 
339.18     Items and services purchased with support grants must be 
339.19  those for which there are no other public or private funds 
339.20  available to the family.  Fees assessed to parents for health or 
339.21  human services that are funded by federal, state, or county 
339.22  dollars are not reimbursable through this program. 
339.23     The maximum monthly amount shall be $250 per eligible 
339.24  dependent, or $3,000 per eligible dependent per state fiscal 
339.25  year, within the limits of available funds.  During fiscal year 
339.26  1992 and 1993, the maximum monthly grant awarded to families who 
339.27  are eligible for medical assistance shall be $200, except in 
339.28  cases where extreme hardship is demonstrated.  The commissioner 
339.29  county social service agency may consider the dependent's 
339.30  supplemental security income in determining the amount of the 
339.31  support grant.  A variance The county social service agency may 
339.32  be granted by the commissioner to exceed $3,000 per state fiscal 
339.33  year per eligible dependent for emergency circumstances in cases 
339.34  where exceptional resources of the family are required to meet 
339.35  the health, welfare-safety needs of the child.  The commissioner 
339.36  county social service agency may set aside up to five percent of 
340.1   the appropriation its allocation to fund emergency situations. 
340.2      Effective July 1, 1997, county social service agencies 
340.3   shall continue to provide funds to families receiving state 
340.4   grants on June 30, 1997, if eligibility criteria continue to be 
340.5   met.  Any adjustments to their monthly grant amount must be 
340.6   based on the needs of the family and funding availability. 
340.7      Sec. 12.  Minnesota Statutes 1996, section 252.32, 
340.8   subdivision 3a, is amended to read: 
340.9      Subd. 3a.  [REPORTS AND REIMBURSEMENT ALLOCATIONS.] (a) The 
340.10  commissioner shall specify requirements for quarterly fiscal and 
340.11  annual program reports according to section 256.01, subdivision 
340.12  2, paragraph (17).  Program reports shall include data which 
340.13  will enable the commissioner to evaluate program effectiveness 
340.14  and to audit compliance.  The commissioner shall reimburse 
340.15  county costs on a quarterly basis. 
340.16     (b) Beginning January 1, 1998, the commissioner shall 
340.17  allocate state funds made available under this section to county 
340.18  social service agencies on a calendar year basis.  The 
340.19  commissioner shall allocate to each county first in amounts 
340.20  equal to each county's guaranteed floor as described in clause 
340.21  (1), and second, any remaining funds, after the allocation of 
340.22  funds to the newly participating counties as provided for in 
340.23  clause (3), shall be allocated in proportion to each county's 
340.24  total number of families receiving a grant on July 1 of the most 
340.25  recent calendar year.  
340.26     (1) Each county's guaranteed floor shall be calculated as 
340.27  follows:  
340.28     (i) 95 percent of the county's allocation received in the 
340.29  preceding calendar year.  For the calendar year 1998 allocation, 
340.30  the preceding calendar year shall be considered to be double the 
340.31  six-month allocation as provided in clause (2); 
340.32     (ii) when the amount of funds available for allocation is 
340.33  less than the amount available in the preceding year, each 
340.34  county's previous year allocation shall be reduced in proportion 
340.35  to the reduction in statewide funding, for the purpose of 
340.36  establishing the guaranteed floor.  
341.1      (2) For the period July 1, 1997, to December 31, 1997, the 
341.2   commissioner shall allocate to each county an amount equal to 
341.3   the actual, state approved grants issued to the families for the 
341.4   month of January 1997, multiplied by six.  This six-month 
341.5   allocation shall be combined with the calendar year 1998 
341.6   allocation and be administered as an 18-month allocation.  
341.7      (3) At the commissioner's discretion, funds may be 
341.8   allocated to any nonparticipating county that requests an 
341.9   allocation under this section.  Allocations to newly 
341.10  participating counties are dependent upon the availability of 
341.11  funds, as determined by the actual expenditure amount of the 
341.12  participating counties for the most recently completed calendar 
341.13  year.  
341.14     (4) The commissioner shall regularly review the use of 
341.15  family support fund allocations by county.  The commissioner may 
341.16  reallocate unexpended or unencumbered money at any time to those 
341.17  counties that have a demonstrated need for additional funding.  
341.18     (c) County allocations under this section will be adjusted 
341.19  for transfers that occur according to section 256.476 or when 
341.20  the county of financial responsibility changes according to 
341.21  chapter 256G for eligible recipients. 
341.22     Sec. 13.  Minnesota Statutes 1996, section 252.32, 
341.23  subdivision 3c, is amended to read: 
341.24     Subd. 3c.  [COUNTY BOARD RESPONSIBILITIES.] County boards 
341.25  receiving funds under this section shall:  
341.26     (1) determine the needs of families for services in 
341.27  accordance with section 256B.092 or 256E.08 and any rules 
341.28  adopted under those sections; 
341.29     (2) determine the eligibility of all persons proposed for 
341.30  program participation; 
341.31     (3) recommend for approval all approve a plan for items and 
341.32  services to be reimbursed and inform families of 
341.33  the commissioner's county's approval decision; 
341.34     (4) issue support grants directly to, or on behalf of, 
341.35  eligible families; 
341.36     (5) inform recipients of their right to appeal under 
342.1   subdivision 3e; 
342.2      (6) submit quarterly financial reports under subdivision 3b 
342.3   and indicate on the screening documents the annual grant level 
342.4   for each family, the families denied grants, and the families 
342.5   eligible but waiting for funding; and 
342.6      (7) coordinate services with other programs offered by the 
342.7   county. 
342.8      Sec. 14.  Minnesota Statutes 1996, section 252.32, 
342.9   subdivision 5, is amended to read: 
342.10     Subd. 5.  [COMPLIANCE.] If a county board or grantee does 
342.11  not comply with this section and the rules adopted by the 
342.12  commissioner of human services, the commissioner may recover, 
342.13  suspend, or withhold payments. 
342.14     Sec. 15.  Minnesota Statutes 1996, section 254.04, is 
342.15  amended to read: 
342.16     254.04 [TREATMENT OF CHEMICALLY DEPENDENT PERSONS.] 
342.17     The commissioner of human services is hereby authorized to 
342.18  continue the treatment of chemically dependent persons at 
342.19  Ah-Gwah-Ching and Moose Lake area programs as well as at the 
342.20  regional treatment centers located at Anoka, Brainerd, Fergus 
342.21  Falls, Moose Lake, St. Peter, and Willmar as specified in 
342.22  section 245.652.  During the year ending June 30, 1994, the 
342.23  commissioner shall relocate, in the catchment area served by the 
342.24  Moose Lake regional treatment center, two state-operated 
342.25  off-campus programs designed to serve patients who are relocated 
342.26  from the Moose Lake regional treatment center.  One program 
342.27  shall be a 35-bed program for women who are chemically 
342.28  dependent; the other shall be a 25-bed program for men who are 
342.29  chemically dependent.  The facility space housing the Liberalis 
342.30  chemical dependency program (building C-35) and the men's 
342.31  chemical dependency program (4th floor main) may not be vacated 
342.32  until suitable off-campus space for the women's chemical 
342.33  dependency program of 35 beds and the men's chemical dependency 
342.34  program of 25 beds is located and clients and staff are 
342.35  relocated. 
342.36     Sec. 16.  Minnesota Statutes 1996, section 254B.02, 
343.1   subdivision 3, is amended to read: 
343.2      Subd. 3.  [RESERVE ACCOUNT.] The commissioner shall 
343.3   allocate money from the reserve account to counties that, during 
343.4   the current fiscal year, have met or exceeded the base level of 
343.5   expenditures for eligible chemical dependency services from 
343.6   local money.  The commissioner shall establish the base level 
343.7   for fiscal year 1988 as the amount of local money used for 
343.8   eligible services in calendar year 1986.  In later years, the 
343.9   base level must be increased in the same proportion as state 
343.10  appropriations to implement Laws 1986, chapter 394, sections 8 
343.11  to 20, are increased.  The base level must be decreased if the 
343.12  fund balance from which allocations are made under section 
343.13  254B.02, subdivision 1, is decreased in later years.  The local 
343.14  match rate for the reserve account is the same rate as applied 
343.15  to the initial allocation.  Reserve account payments must not be 
343.16  included when calculating the county adjustments made according 
343.17  to subdivision 2.  For counties providing medical assistance or 
343.18  general assistance medical care through managed care plans on 
343.19  January 1, 1996, the base year is fiscal year 1995.  For 
343.20  counties beginning provision of managed care after January 1, 
343.21  1996, the base year is the most recent fiscal year before 
343.22  enrollment in managed care begins.  For counties providing 
343.23  managed care, the base level will be increased or decreased in 
343.24  proportion to changes in the fund balance from which allocations 
343.25  are made under subdivision 2, but will be additionally increased 
343.26  or decreased in proportion to the change in county adjusted 
343.27  population made in subdivision 1, paragraphs (b) and (c). 
343.28     Sec. 17.  Minnesota Statutes 1996, section 254B.03, 
343.29  subdivision 1, is amended to read: 
343.30     Subdivision 1.  [LOCAL AGENCY DUTIES.] (a) Every local 
343.31  agency shall provide chemical dependency services to persons 
343.32  residing within its jurisdiction who meet criteria established 
343.33  by the commissioner for placement in a chemical dependency 
343.34  residential or nonresidential treatment service.  Chemical 
343.35  dependency money must be administered by the local agencies 
343.36  according to law and rules adopted by the commissioner under 
344.1   sections 14.001 to 14.69. 
344.2      (b) In order to contain costs, the county board shall, with 
344.3   the approval of the commissioner of human services, select 
344.4   eligible vendors of chemical dependency services who can provide 
344.5   economical and appropriate treatment.  Unless the local agency 
344.6   is a social services department directly administered by a 
344.7   county or human services board, the local agency shall not be an 
344.8   eligible vendor under section 254B.05.  The commissioner may 
344.9   approve proposals from county boards to provide services in an 
344.10  economical manner or to control utilization, with safeguards to 
344.11  ensure that necessary services are provided.  If a county 
344.12  implements a demonstration or experimental medical services 
344.13  funding plan, the commissioner shall transfer the money as 
344.14  appropriate.  If a county selects a vendor located in another 
344.15  state, the county shall ensure that the vendor is in compliance 
344.16  with the rules governing licensure of programs located in the 
344.17  state. 
344.18     (c) For the biennium ending June 30, 1999, the rate for 
344.19  vendors may not increase more than three percent above the rate 
344.20  approved on January 1, 1997.  
344.21     (c) (d) A culturally specific vendor that provides 
344.22  assessments under a variance under Minnesota Rules, part 
344.23  9530.6610, shall be allowed to provide assessment services to 
344.24  persons not covered by the variance. 
344.25     Sec. 18.  [256B.095] [THREE-YEAR QUALITY ASSURANCE PILOT 
344.26  PROJECT ESTABLISHED.] 
344.27     Effective July 1, 1998, an alternative quality assurance 
344.28  licensing system pilot project for programs for persons with 
344.29  developmental disabilities is established in Dodge, Fillmore, 
344.30  Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, Steele, 
344.31  Wabasha, and Winona counties for the purpose of improving the 
344.32  quality of services provided to persons with developmental 
344.33  disabilities.  A county, at its option, may choose to have all 
344.34  programs for persons with developmental disabilities located 
344.35  within the county licensed under chapter 245A using standards 
344.36  determined under the alternative quality assurance licensing 
345.1   system pilot project or may continue regulation of these 
345.2   programs under the licensing system operated by the 
345.3   commissioner.  The pilot project expires on June 30, 2001. 
345.4      Sec. 19.  [256B.0951] [QUALITY ASSURANCE COMMISSION.] 
345.5      Subdivision 1.  [MEMBERSHIP.] The region 10 quality 
345.6   assurance commission is established.  The commission consists of 
345.7   at least 13 but not more than 20 members as follows:  at least 
345.8   three but not more than five members representing advocacy 
345.9   organizations; at least three but not more than five members 
345.10  representing consumers, families, and their legal 
345.11  representatives; at least three but not more than five members 
345.12  representing service providers; and at least three but not more 
345.13  than five members representing counties.  Initial membership of 
345.14  the commission shall be recruited and approved by the region 10 
345.15  stakeholders group.  Prior to approving the commission's 
345.16  membership, the stakeholders group shall provide to the 
345.17  commissioner a list of the membership in the stakeholders group, 
345.18  as of February 1, 1997, a brief summary of meetings held by the 
345.19  group since July 1, 1996, and copies of any materials prepared 
345.20  by the group for public distribution.  The first commission 
345.21  shall establish membership guidelines for the transition and 
345.22  recruitment of membership for the commission's ongoing 
345.23  existence.  Members of the commission who do not receive a 
345.24  salary or wages from an employer for time spent on commission 
345.25  duties may receive a per diem payment when performing commission 
345.26  duties and functions.  All members may be reimbursed for 
345.27  expenses related to commission activities.  Notwithstanding the 
345.28  provisions of section 15.059, subdivision 5, the commission 
345.29  expires on June 30, 2001. 
345.30     Subd. 2.  [AUTHORITY TO HIRE STAFF.] The commission may 
345.31  hire staff to perform the duties assigned in this section.  
345.32     Subd. 3.  [COMMISSION DUTIES.] (a) By October 1, 1997, the 
345.33  commission, in cooperation with the commissioners of human 
345.34  services and health, shall do the following:  (1) approve an 
345.35  alternative quality assurance licensing system based on the 
345.36  evaluation of outcomes; (2) approve measurable outcomes in the 
346.1   areas of health and safety, consumer evaluation, education and 
346.2   training, providers, and systems that shall be evaluated during 
346.3   the alternative licensing process; and (3) establish variable 
346.4   licensure periods not to exceed three years based on outcomes 
346.5   achieved.  For purposes of this subdivision, "outcome" means the 
346.6   behavior, action, or status of a person that can be observed or 
346.7   measured and can be reliably and validly determined. 
346.8      (b) By January 15, 1998, the commission shall approve, in 
346.9   cooperation with the commissioner of human services, a training 
346.10  program for members of the quality assurance teams established 
346.11  under section 256B.0952, subdivision 4. 
346.12     Subd. 4.  [COMMISSION'S AUTHORITY TO RECOMMEND VARIANCES OF 
346.13  LICENSING STANDARDS.] The commission may recommend to the 
346.14  commissioners of human services and health variances from the 
346.15  standards governing licensure of programs for persons with 
346.16  developmental disabilities in order to improve the quality of 
346.17  services by implementing an alternative developmental 
346.18  disabilities licensing system if the commission determines that 
346.19  the alternative licensing system does not affect the health or 
346.20  safety of persons being served by the licensed program nor 
346.21  compromise the qualifications of staff to provide services. 
346.22     Subd. 5.  [VARIANCE OF CERTAIN STANDARDS PROHIBITED.] The 
346.23  safety standards, rights, or procedural protections under 
346.24  sections 245.825; 245.91 to 245.97; 245A.04, subdivisions 3, 3a, 
346.25  3b, and 3c; 245A.09, subdivision 2, paragraph (c), clauses (2) 
346.26  and (5); 245A.12; 245A.13; 252.41, subdivision 9; 256B.092, 
346.27  subdivisions 1b, clause (7), and 10; 626.556; 626.557, and 
346.28  procedures for the monitoring of psychotropic medications shall 
346.29  not be varied under the alternative licensing system pilot 
346.30  project.  The commission may make recommendations to the 
346.31  commissioners of human services and health or to the legislature 
346.32  regarding alternatives to or modifications of the rules 
346.33  referenced in this subdivision. 
346.34     Subd. 6.  [PROGRESS REPORT.] The commission shall submit a 
346.35  progress report to the legislature on pilot project development 
346.36  by January 15, 1998.  The report shall include recommendations 
347.1   on any legislative changes necessary to improve cooperation 
347.2   between the commission and the commissioners of human services 
347.3   and health. 
347.4      Sec. 20.  [256B.0952] [COUNTY DUTIES; QUALITY ASSURANCE 
347.5   TEAMS.] 
347.6      Subdivision 1.  [NOTIFICATION.] By January 15, 1998, each 
347.7   affected county shall notify the commission and the 
347.8   commissioners of human services and health as to whether it 
347.9   chooses to implement on July 1, 1998, the alternative licensing 
347.10  system for the pilot project.  A county that does not implement 
347.11  the alternative licensing system on July 1, 1998, may give 
347.12  notice to the commission and the commissioners by January 15, 
347.13  1999, or January 15, 2000, that it will implement the 
347.14  alternative licensing system on the following July 1.  A county 
347.15  that implements the alternative licensing system commits to 
347.16  participate until June 30, 2001.  
347.17     Subd. 2.  [APPOINTMENT OF REVIEW COUNCIL; DUTIES OF 
347.18  COUNCIL.] A county or group of counties that chooses to 
347.19  participate in the alternative licensing system shall appoint a 
347.20  quality assurance review council comprised of advocates; 
347.21  consumers, families, and their legal representatives; providers; 
347.22  and county staff.  The council shall: 
347.23     (1) review summary reports from quality assurance team 
347.24  reviews and make recommendations to counties regarding program 
347.25  licensure; 
347.26     (2) make recommendations to the commission regarding the 
347.27  alternative licensing system and quality assurance process; and 
347.28     (3) resolve complaints between the quality assurance teams, 
347.29  counties, providers, and consumers, families, and their legal 
347.30  representatives. 
347.31     Subd. 3.  [NOTICE TO COMMISSIONERS.] The county, based on 
347.32  reports from quality assurance managers and recommendations from 
347.33  the quality assurance review council regarding the findings of 
347.34  quality assurance teams, shall notify the commissioners of human 
347.35  services and health regarding whether facilities, programs, or 
347.36  services have met the outcome standards for licensure and are 
348.1   eligible for payment. 
348.2      Subd. 4.  [APPOINTMENT OF QUALITY ASSURANCE MANAGER.] (a) A 
348.3   county or group of counties that chooses to participate in the 
348.4   alternative licensing system shall designate a quality assurance 
348.5   manager and shall establish quality assurance teams in 
348.6   accordance with subdivision 5.  The manager shall recruit, 
348.7   train, and assign duties to the quality assurance team members.  
348.8   In assigning team members to conduct the quality assurance 
348.9   process at a facility, program, or service, the manager shall 
348.10  take into account the size of the service provider, the number 
348.11  of services to be reviewed, the skills necessary for team 
348.12  members to complete the process, and other relevant factors.  
348.13  The manager shall ensure that no team member has a financial, 
348.14  personal, or family relationship with the facility, program, or 
348.15  service being reviewed or with any clients of the facility, 
348.16  program, or service. 
348.17     (b) Quality assurance teams shall report the findings of 
348.18  their quality assurance reviews to the quality assurance manager.
348.19  The quality assurance manager shall provide the report from the 
348.20  quality assurance team to the county and commissioners of human 
348.21  services and health and a summary of the report to the quality 
348.22  assurance review council.  
348.23     Subd. 5.  [QUALITY ASSURANCE TEAMS.] Quality assurance 
348.24  teams shall be comprised of county staff; providers; consumers, 
348.25  families, and their legal representatives; members of advocacy 
348.26  organizations; and other involved community members.  Team 
348.27  members must satisfactorily complete the training program 
348.28  approved by the commission and must demonstrate 
348.29  performance-based competency.  Team members are not considered 
348.30  to be county employees for purposes of workers' compensation, 
348.31  unemployment compensation, or state retirement laws solely on 
348.32  the basis of participation on a quality assurance team.  The 
348.33  county may pay a per diem to team members who do not receive a 
348.34  salary or wages from an employer for time spent on alternative 
348.35  quality assurance process matters.  All team members may be 
348.36  reimbursed for expenses related to their participation in the 
349.1   alternative process. 
349.2      Subd. 6.  [LICENSING FUNCTIONS.] Participating counties 
349.3   shall perform licensing functions and activities as delegated by 
349.4   the commissioner of human services in accordance with section 
349.5   245A.16. 
349.6      Sec. 21.  [256B.0953] [QUALITY ASSURANCE PROCESS.] 
349.7      Subdivision 1.  [PROCESS COMPONENTS.] (a) The quality 
349.8   assurance licensing process consists of an evaluation by a 
349.9   quality assurance team of the facility, program, or service 
349.10  according to outcome-based measurements.  The process must 
349.11  include an evaluation of a random sample of program consumers.  
349.12  The sample must be representative of each service provided.  The 
349.13  sample size must be at least five percent of consumers but not 
349.14  less than three consumers.  
349.15     (b) All consumers must be given the opportunity to be 
349.16  included in the quality assurance process in addition to those 
349.17  chosen for the random sample. 
349.18     Subd. 2.  [LICENSURE PERIODS.] (a) In order to be licensed 
349.19  under the alternative quality assurance process, a facility, 
349.20  program, or service must satisfy the health and safety outcomes 
349.21  approved for the pilot project. 
349.22     (b) Licensure shall be approved for periods of one to three 
349.23  years for a facility, program, or service that satisfies the 
349.24  requirements of paragraph (a) and achieves the outcome 
349.25  measurements in the categories of consumer evaluation, education 
349.26  and training, providers, and systems. 
349.27     Subd. 3.  [APPEALS PROCESS.] A facility, program, or 
349.28  service may contest a licensing decision of the quality 
349.29  assurance team as permitted under chapter 245A. 
349.30     Sec. 22.  [256B.0954] [CERTAIN PERSONS DEFINED AS MANDATED 
349.31  REPORTERS.] 
349.32     Members of the quality assurance commission established 
349.33  under section 256B.0951, members of quality assurance review 
349.34  councils established under section 256B.0952, quality assurance 
349.35  managers appointed under section 256B.0952, and members of 
349.36  quality assurance teams established under section 256B.0952 are 
350.1   mandated reporters as that term is defined in sections 626.556, 
350.2   subdivision 3, and 626.5572, subdivision 16. 
350.3      Sec. 23.  [256B.0955] [DUTIES OF THE COMMISSIONER OF HUMAN 
350.4   SERVICES.] 
350.5      (a) Effective July 1, 1998, the commissioner of human 
350.6   services shall delegate authority to perform licensing functions 
350.7   and activities, in accordance with section 245A.16, to counties 
350.8   participating in the alternative licensing system.  The 
350.9   commissioner shall not license or reimburse a facility, program, 
350.10  or service for persons with developmental disabilities in a 
350.11  county that participates in the alternative licensing system if 
350.12  the commissioner has received from the appropriate county 
350.13  notification that the facility, program, or service has been 
350.14  reviewed by a quality assurance team and has failed to qualify 
350.15  for licensure. 
350.16     (b) The commissioner may conduct random licensing 
350.17  inspections based on outcomes adopted under section 256B.0951 at 
350.18  facilities, programs, and services governed by the alternative 
350.19  licensing system.  The role of such random inspections shall be 
350.20  to verify that the alternative licensing system protects the 
350.21  safety and well-being of consumers and maintains the 
350.22  availability of high-quality services for persons with 
350.23  developmental disabilities.  
350.24     (c) The commissioner shall provide technical assistance and 
350.25  support or training to the alternative licensing system pilot 
350.26  project. 
350.27     (d) The commissioner and the commission shall establish an 
350.28  ongoing evaluation process for the alternative licensing system. 
350.29     (e) The commissioner shall contract with an independent 
350.30  entity to conduct a financial review of the alternative 
350.31  licensing system, including an evaluation of possible budgetary 
350.32  savings within the department of human services and the 
350.33  department of health as a result of implementation of the 
350.34  alternative quality assurance licensing system.  This review 
350.35  must be completed by December 15, 2000.  
350.36     (f) The commissioner and the commission shall submit a 
351.1   report to the legislature by January 15, 2001, on the results of 
351.2   the evaluation process of the alternative licensing system, a 
351.3   summary of the results of the independent financial review, and 
351.4   a recommendation on whether the pilot project should be extended 
351.5   beyond June 30, 2001. 
351.6      Sec. 24.  Minnesota Statutes 1996, section 256B.49, 
351.7   subdivision 1, is amended to read: 
351.8      Subdivision 1.  [STUDY; WAIVER APPLICATION.] The 
351.9   commissioner shall authorize a study to assess the need for home 
351.10  and community-based waivers for chronically ill children who 
351.11  have been and will continue to be hospitalized without a waiver, 
351.12  and for disabled individuals under the age of 65 who are likely 
351.13  to reside in an acute care or nursing home facility in the 
351.14  absence of a waiver.  If a need for these waivers can be 
351.15  demonstrated, the commissioner shall apply for federal waivers 
351.16  necessary to secure, to the extent allowed by law, federal 
351.17  participation under United States Code, title 42, sections 
351.18  1396-1396p, as amended through December 31, 1982, for the 
351.19  provision of home and community-based services to chronically 
351.20  ill children who, in the absence of such a waiver, would remain 
351.21  in an acute care setting, and to disabled individuals under the 
351.22  age of 65 who, in the absence of a waiver, would reside in an 
351.23  acute care or nursing home setting.  If the need is 
351.24  demonstrated, the commissioner shall request a waiver under 
351.25  United States Code, title 42, sections 1396-1396p, to allow 
351.26  medicaid eligibility for blind or disabled children with 
351.27  ineligible parents where income deemed from the parents would 
351.28  cause the applicant to be ineligible for supplemental security 
351.29  income if the family shared a household and to furnish necessary 
351.30  services in the home or community to disabled individuals under 
351.31  the age of 65 who would be eligible for medicaid if 
351.32  institutionalized in an acute care or nursing home setting. 
351.33  These waivers are requested to furnish necessary services in the 
351.34  home and community setting to children or disabled adults under 
351.35  age 65 who are medicaid eligible when institutionalized in an 
351.36  acute care or nursing home setting.  The commissioner shall 
352.1   assure that the cost of home and community-based care will not 
352.2   be more than the cost of care if the eligible child or disabled 
352.3   adult under age 65 were to remain institutionalized.  The 
352.4   average monthly limit for the cost of home and community-based 
352.5   services to a community alternative care waiver client, 
352.6   determined on a 12-month basis, shall not exceed the statewide 
352.7   average medical assistance adjusted base year operating cost for 
352.8   nursing and accommodation services under sections 256.9685 to 
352.9   256.969 for the diagnostic category to which the waiver client 
352.10  would be assigned except the admission and outlier rates shall 
352.11  be converted to an overall per diem.  The average monthly limit 
352.12  for the cost of services to a traumatic brain injury 
352.13  neurobehavioral hospital waiver client, determined on a 12-month 
352.14  basis, shall not exceed the statewide average medical assistance 
352.15  adjusted base-year operating cost for nursing and accommodation 
352.16  services of neurobehavioral rehabilitation programs in Medicare 
352.17  designated long-term hospitals under sections 256.9685 to 
352.18  256.969.  The following costs must be included in determining 
352.19  the total average monthly costs for a waiver client:  
352.20     (1) cost of all waivered services; and 
352.21     (2) cost of skilled nursing, private duty nursing, home 
352.22  health aide, and personal care services reimbursable by medical 
352.23  assistance.  
352.24     The commissioner of human services shall seek federal 
352.25  waivers as necessary to implement the average monthly limit.  
352.26  The commissioner shall seek to amend the federal waivers 
352.27  obtained under this section to apply criteria to protect against 
352.28  spousal impoverishment as authorized under United States Code, 
352.29  title 42, section 1396r-5, and as implemented in sections 
352.30  256B.0575, 256B.058, and 256B.059, except that the amendment 
352.31  shall seek to add to the personal needs allowance permitted in 
352.32  section 256B.0575, an amount equivalent to the group residential 
352.33  housing rate as set by section 256I.03, subdivision 5. 
352.34     Sec. 25.  Laws 1995, chapter 207, article 8, section 41, 
352.35  subdivision 2, is amended to read: 
352.36     Subd. 2.  [PROGRAM DESIGN AND IMPLEMENTATION.] (a) The 
353.1   pilot projects shall be established to design, plan, and improve 
353.2   the mental health service delivery system for adults with 
353.3   serious and persistent mental illness that would: 
353.4      (1) provide an expanded array of services from which 
353.5   clients can choose services appropriate to their needs; 
353.6      (2) be based on purchasing strategies that improve access 
353.7   and coordinate services without cost shifting; 
353.8      (3) incorporate existing state facilities and resources 
353.9   into the community mental health infrastructure through creative 
353.10  partnerships with local vendors; and 
353.11     (4) utilize existing categorical funding streams and 
353.12  reimbursement sources in combined and creative ways, except 
353.13  appropriations to regional treatment centers and all funds that 
353.14  are attributable to the operation of state-operated services are 
353.15  excluded unless appropriated specifically by the legislature for 
353.16  a purpose consistent with this section. 
353.17     (b) All projects funded by January 1, 1997, must complete 
353.18  their the planning phase and be operational by June 30, 1997; 
353.19  all projects funded by January 1, 1998, must be operational by 
353.20  June 30, 1998.  
353.21     Sec. 26.  [NAMES REQUIRED ON GRAVES.] 
353.22     Unless the individual's family indicates otherwise to the 
353.23  appropriate authority, the commissioner of human services with 
353.24  assistance of the communities in which regional treatment 
353.25  centers are located and in consultation with the state council 
353.26  on disability shall replace numbers with the names of 
353.27  individuals whose graves are located at regional treatment 
353.28  centers operated by the commissioner or formerly operated by the 
353.29  commissioner.  The commissioner and the state council on 
353.30  disability shall develop a plan to accomplish this 
353.31  systematically over a five-year period.  The individual names 
353.32  may be placed on a central marker or memorial for a designated 
353.33  cemetery.  
353.34     Sec. 27.  [WAIVER AMENDMENT.] 
353.35     By July 15, 1997, the commissioner of human services shall 
353.36  submit proposed amendments to the Health Care Financing 
354.1   Administration for changes in the home and community-based 
354.2   waiver for persons with mental retardation or a related 
354.3   condition that maximize the number of persons served within the 
354.4   limits of appropriations and divert persons from institutional 
354.5   placement.  The commissioner shall monitor county utilization of 
354.6   allocated resources and, as appropriate, reassign resources not 
354.7   utilized.  Priority consideration for the reassignment of 
354.8   resources shall be given to counties who enter into written 
354.9   agreements with other counties to jointly plan, request 
354.10  resources, and develop services for persons with mental 
354.11  retardation or a related condition who are screened and waiting 
354.12  for waivered services.  In addition to the priorities listed in 
354.13  Minnesota Rules, part 9525.1880, the commissioner shall also 
354.14  give priority consideration to persons whose living situations 
354.15  are unstable due to the age or incapacity of the primary 
354.16  caregiver.  The commissioner shall report to the chairs of the 
354.17  senate health and family security budget division and the house 
354.18  health and human services finance division by March 1, 1998, on 
354.19  the results of the waiver amendment, the authorization and 
354.20  utilization of waivered services for persons with mental 
354.21  retardation or a related condition, including crisis respite 
354.22  services, plans to increase the number of counties working 
354.23  together, additional persons served by the reassignment of 
354.24  resources, and options which would allow an increased number of 
354.25  persons to be served within the existing appropriation. 
354.26     Sec. 28.  [REQUEST FOR WAIVER.] 
354.27     By January 1, 1998, the commissioner of human services or 
354.28  health shall request a waiver from the federal Department of 
354.29  Health and Human Services to permit the use of the alternative 
354.30  quality assurance system to license and certify intermediate 
354.31  care facilities for persons with mental retardation. 
354.32     Sec. 29.  [REPEALER.] 
354.33     Minnesota Statutes 1996, sections 252.32, subdivision 4; 
354.34  and 256B.501, subdivision 5c, are repealed. 
354.35     Sec. 30.  [EFFECTIVE DATE.] 
354.36     Sections 2, 3, 6, 9, 15, and 27 are effective the day 
355.1   following final enactment. 
355.2                              ARTICLE 8
355.3         DEMONSTRATION PROJECT FOR PERSONS WITH DISABILITIES
355.4      Section 1.  [256B.77] [COORDINATED SERVICE DELIVERY SYSTEM 
355.5   FOR PEOPLE WITH DISABILITIES.] 
355.6      Subdivision 1.  [DEMONSTRATION PROJECT FOR PEOPLE WITH 
355.7   DISABILITIES.] (a) The commissioner of human services, in 
355.8   cooperation with county authorities, shall develop and implement 
355.9   a demonstration project to create a coordinated service delivery 
355.10  system in which the full medical assistance benefit set for 
355.11  disabled persons eligible for medical assistance is provided and 
355.12  funded on a capitated basis.  The demonstration period shall be 
355.13  a minimum of three years. 
355.14     (b) Each demonstration site shall, under county authority, 
355.15  establish a local group to assist the commissioner in planning, 
355.16  designing, implementing, and evaluating the coordinated service 
355.17  delivery system in their area.  This local group shall include 
355.18  county agencies, providers, consumers, family members, 
355.19  advocates, tribal governments, a local representative of labor, 
355.20  and advocacy organizations, and may include health plan 
355.21  companies.  Consumers, families, and consumer representatives 
355.22  must be involved in the planning, implementation, and evaluation 
355.23  processes for the demonstration project. 
355.24     Subd. 2.  [DEFINITIONS.] For the purposes of this section, 
355.25  the following terms have the meanings given: 
355.26     (a) "Acute care" means hospital, physician, and other 
355.27  health and dental services covered in the medical assistance 
355.28  benefit set that are not specified in the intergovernmental 
355.29  contract or service delivery contract as continuing care 
355.30  services. 
355.31     (b) "Additional services" means services developed and 
355.32  provided through the county administrative entity or service 
355.33  delivery organization, which are in addition to the medical 
355.34  assistance benefit set. 
355.35     (c) "Advocate" means an individual who: 
355.36     (1) has been authorized by the enrollee or the enrollee's 
356.1   legal representative to help the enrollee understand information 
356.2   presented and to speak on the enrollee's behalf, based on 
356.3   directions and decisions by the enrollee or the enrollee's legal 
356.4   representative; and 
356.5      (2) represents only the enrollee and the enrollee's legal 
356.6   representative. 
356.7      (d) "Advocacy organization" means an organization whose 
356.8   primary purpose is to advocate for the needs of persons with 
356.9   disabilities. 
356.10     (e) "Alternative services" means services developed and 
356.11  provided through the county administrative entity or service 
356.12  delivery organization that are not part of the medical 
356.13  assistance benefit set. 
356.14     (f) "Commissioner" means the commissioner of human services.
356.15     (g) "Continuing care" means any services, including 
356.16  long-term support services, covered in the medical assistance 
356.17  benefit set that are not specified in the intergovernmental 
356.18  contract or service delivery contract as acute care. 
356.19     (h) "County administrative entity" means the county 
356.20  administrative structure defined and designated by the county 
356.21  authority to implement the demonstration project under the 
356.22  direction of the county authority. 
356.23     (i) "County authority" means the board of county 
356.24  commissioners or a single entity representing multiple boards of 
356.25  county commissioners. 
356.26     (j) "Demonstration period" means the period of time during 
356.27  which county administrative entities or service delivery 
356.28  organizations will provide services to enrollees. 
356.29     (k) "Demonstration site" means the geographic area in which 
356.30  eligible individuals may be included in the demonstration 
356.31  project. 
356.32     (l) "Department" means the department of human services. 
356.33     (m) "Emergency" means a condition that if not immediately 
356.34  treated could cause a person serious physical or mental 
356.35  disability, continuation of severe pain, or death.  Labor and 
356.36  delivery is an emergency if it meets this definition. 
357.1      (n) "Enrollee" means an eligible individual who is enrolled 
357.2   in the demonstration project. 
357.3      (o) "Informed choice" means a voluntary decision made by 
357.4   the enrollee or the enrollee's legal representative, after 
357.5   becoming familiar with the alternatives, and having been 
357.6   provided sufficient relevant written and oral information at an 
357.7   appropriate comprehension level and in a manner consistent with 
357.8   the enrollee's or the enrollee's legal representative's primary 
357.9   mode of communication. 
357.10     (p) "Informed consent" means the written agreement, or an 
357.11  agreement as documented in the record, by a competent enrollee, 
357.12  or an enrollee's legal representative, who: 
357.13     (1) has the capacity to make reasoned decisions based on 
357.14  relevant information; 
357.15     (2) is making decisions voluntarily and without coercion; 
357.16  and 
357.17     (3) has knowledge to make informed choice. 
357.18     (q) "Intergovernmental contract" means the agreement 
357.19  between the commissioner and the county authority. 
357.20     (r) "Legal representative" means an individual who is 
357.21  legally authorized to provide informed consent or make informed 
357.22  choices on a person's behalf.  A legal representative may be one 
357.23  of the following individuals: 
357.24     (1) the parent of a minor who has not been emancipated; 
357.25     (2) a court-appointed guardian or conservator of a person 
357.26  who is 18 years of age or older, in areas where legally 
357.27  authorized to make decisions; 
357.28     (3) a guardian ad litem or special guardian or conservator, 
357.29  in areas where legally authorized to make decisions; 
357.30     (4) legal counsel if so specified by the person; or 
357.31     (5) any other legally authorized individual. 
357.32  The county administrative entity is prohibited from acting as 
357.33  legal representative for any enrollee, as long as the provisions 
357.34  of subdivision 15 are funded. 
357.35     (s) "Life domain areas" include, but are not limited to:  
357.36  home, family, education, employment, social environment, 
358.1   psychological and emotional health, self-care, independence, 
358.2   physical health, need for legal representation and legal needs, 
358.3   financial needs, safety, and cultural identification and 
358.4   spiritual needs. 
358.5      (t) "Medical assistance benefit set" means the services 
358.6   covered under this chapter and accompanying rules which are 
358.7   provided according to the definition of medical necessity in 
358.8   Minnesota Rules, part 9505.0175, subpart 25. 
358.9      (u) "Outcome" means the targeted behavior, action, or 
358.10  status of the enrollee that can be observed and or measured. 
358.11     (v) "Personal support plan" means a document agreed to and 
358.12  signed by the enrollee and the enrollee's legal representative, 
358.13  if any, which describes: 
358.14     (1) the assessed needs and strengths of the enrollee; 
358.15     (2) the outcomes chosen by the enrollee or their legal 
358.16  representative; 
358.17     (3) the amount, type, setting, start date, duration, and 
358.18  frequency of services and supports authorized by the county 
358.19  administrative entity or service delivery organization to 
358.20  achieve the chosen outcomes; 
358.21     (4) a description of needed services and supports that are 
358.22  not the responsibility of the county administrative entity or 
358.23  service delivery organization and plans for addressing those 
358.24  needs; 
358.25     (5) plans for referring to and coordinating between all 
358.26  agencies or individuals providing needed services and supports; 
358.27     (6) the use of regulated treatment; and 
358.28     (7) the transition of a child to the adult service system. 
358.29     (w) "Regulated treatment" means any behaviorally altering 
358.30  medication of any classification or any aversive or deprivation 
358.31  procedure as defined in rules or statutes applicable to eligible 
358.32  individuals. 
358.33     (x) "Service delivery contract" means the agreement between 
358.34  the commissioner or the county authority and the service 
358.35  delivery organization in those areas in which the county 
358.36  authority has provided written approval. 
359.1      (y) "Service delivery organization" means an entity that is 
359.2   licensed as a health maintenance organization under chapter 62D 
359.3   or a community integrated service network under chapter 62N and 
359.4   is under contract with the commissioner or a county authority to 
359.5   participate in the demonstration project.  If authorized in 
359.6   contract by the commissioner or the county authority, a service 
359.7   delivery organization participating in the demonstration project 
359.8   shall have the duties, responsibilities, and obligations defined 
359.9   under subdivisions 8, 9, 18, and 19. 
359.10     (z) "Urgent situation" means circumstances in which care is 
359.11  needed as soon as possible, usually with 24 hours, to protect 
359.12  the health of an enrollee. 
359.13     Subd. 3.  [ASSURANCES TO THE COMMISSIONER OF HEALTH.] A 
359.14  county authority that elects to participate in a demonstration 
359.15  project for people with disabilities under this section is not 
359.16  required to obtain a certificate of authority under chapter 62D 
359.17  or 62N.  A county authority that elects to participate in a 
359.18  demonstration project for people with disabilities under this 
359.19  section must assure the commissioner of health that the 
359.20  requirements of chapters 62D and 62N are met.  All enforcement 
359.21  and rulemaking powers available under chapters 62D and 62N are 
359.22  granted to the commissioner of health with respect to the county 
359.23  authorities that contract with the commissioner to purchase 
359.24  services in a demonstration project for people with disabilities 
359.25  under this section. 
359.26     Subd. 4.  [FEDERAL WAIVERS.] The commissioner, in 
359.27  consultation with county authorities, shall request any 
359.28  authority from the United States Department of Health and Human 
359.29  Services that is necessary to implement the demonstration 
359.30  project under the medical assistance program; and authority to 
359.31  combine Medicaid and Medicare funding for service delivery to 
359.32  eligible individuals who are also eligible for Medicare, only if 
359.33  this authority does not preclude county authority participation 
359.34  under the waiver.  Implementation of these programs may begin 
359.35  without authority to include medicare funding.  The commissioner 
359.36  may authorize county authorities to begin enrollment of eligible 
360.1   individuals upon federal approval but no earlier than July 1, 
360.2   1998. 
360.3      Subd. 5.  [DEMONSTRATION SITES.] The commissioner shall 
360.4   designate up to two demonstration sites with the approval of the 
360.5   county authority.  Demonstration sites may include one county or 
360.6   a multicounty group.  At least one of the sites shall implement 
360.7   a model specifically addressing the needs of eligible 
360.8   individuals with physical disabilities.  By February 1, 1998, 
360.9   the commissioner and the county authorities shall submit to the 
360.10  chairs of the senate committee on health and family security and 
360.11  the house committee on health and human services a phased 
360.12  enrollment plan to ensure an orderly transition which protects 
360.13  the health and safety of enrollees and ensures continuity of 
360.14  services. 
360.15     Subd. 6.  [RESPONSIBILITIES OF THE COUNTY AUTHORITY.] (a) 
360.16  The commissioner may execute an intergovernmental contract with 
360.17  any county authority that demonstrates the ability to arrange 
360.18  for and coordinate services for enrollees covered under this 
360.19  section according to the terms and conditions specified by the 
360.20  commissioner.  With the written consent of the county authority, 
360.21  the commissioner may issue a request for proposals for service 
360.22  delivery organizations to provide portions of the medical 
360.23  assistance benefit set not contracted for by the county 
360.24  authority.  County authorities that do not contract for the full 
360.25  medical assistance benefit set must ensure coordination with the 
360.26  entities responsible for the remainder of the covered services. 
360.27     (b) No less than 90 days before the intergovernmental 
360.28  contract is executed, the county authority shall submit to the 
360.29  commissioner an initial proposal on how it will address the 
360.30  areas listed in this subdivision and subdivisions 1, 7, 8, 9, 
360.31  12, 18, and 19.  The county authority shall submit to the 
360.32  commissioner annual reports describing its progress in 
360.33  addressing these areas. 
360.34     (c) Each county authority shall develop policies to address 
360.35  conflicts of interest, including public guardianship and 
360.36  representative payee issues. 
361.1      (d) Each county authority shall annually evaluate the 
361.2   effectiveness of the service coordination provided according to 
361.3   subdivision 12 and shall take remedial or corrective action if 
361.4   the service coordination does not fulfill the requirements of 
361.5   that subdivision. 
361.6      Subd. 7.  [ELIGIBILITY AND ENROLLMENT.] The commissioner, 
361.7   in consultation with the county authority, shall develop a 
361.8   process for enrolling eligible individuals in the demonstration 
361.9   project.  A county or counties may limit enrollment in the 
361.10  demonstration project to one or more of the disability 
361.11  populations described in subdivision 7a, paragraph (b).  
361.12  Enrollment into county administrative entities and service 
361.13  delivery organizations shall be conducted according to the terms 
361.14  of the federal waiver.  Enrollment of eligible individuals under 
361.15  the demonstration project may be phased in with approval of the 
361.16  commissioner.  The commissioner shall ensure that eligibility 
361.17  for medical assistance and enrollment for the person are 
361.18  determined by individuals outside of the county administrative 
361.19  entity. 
361.20     Subd. 7a.  [ELIGIBLE INDIVIDUALS.] (a) Persons are eligible 
361.21  for the demonstration project as provided in this subdivision. 
361.22     (b) "Eligible individuals" means those persons living in 
361.23  the demonstration site who are eligible for medical assistance 
361.24  and are disabled based on a disability determination under 
361.25  section 256B.055, subdivisions 7 and 12, or who are eligible for 
361.26  medical assistance and have been diagnosed as having: 
361.27     (1) serious and persistent mental illness as defined in 
361.28  section 245.462, subdivision 20; 
361.29     (2) severe emotional disturbance as defined in section 
361.30  245.487, subdivision 6; or 
361.31     (3) mental retardation or a related condition as defined in 
361.32  section 252.27, subdivision 1a. 
361.33  Other individuals may be included at the option of the county 
361.34  authority based on agreement with the commissioner. 
361.35     (c) Eligible individuals residing on a federally recognized 
361.36  Indian reservation may be excluded from participation in the 
362.1   demonstration project at the discretion of the tribal government 
362.2   based on agreement with the commissioner, in consultation with 
362.3   the county authority. 
362.4      (d) Eligible individuals include individuals in excluded 
362.5   time status, as defined in chapter 256G.  Enrollees in excluded 
362.6   time at the time of enrollment shall remain in excluded time 
362.7   status as long as they live in the demonstration site and shall 
362.8   be eligible for 90 days after placement outside the 
362.9   demonstration site if they move to excluded time status in a 
362.10  county within Minnesota other than their county of financial 
362.11  responsibility. 
362.12     (e) A person who is a sexual psychopathic personality as 
362.13  defined in section 253B.02, subdivision 18a, or a sexually 
362.14  dangerous person as defined in section 253B.02, subdivision 18b, 
362.15  is excluded from enrollment in the demonstration project. 
362.16     Subd. 8.  [RESPONSIBILITIES OF THE COUNTY ADMINISTRATIVE 
362.17  ENTITY.] (a) The county administrative entity shall meet the 
362.18  requirements of this subdivision, unless the county authority or 
362.19  the commissioner, with written approval of the county authority, 
362.20  enters into a service delivery contract with a service delivery 
362.21  organization for any or all of the requirements contained in 
362.22  this subdivision. 
362.23     (b) The county administrative entity shall enroll eligible 
362.24  individuals regardless of health or disability status. 
362.25     (c) The county administrative entity shall provide all 
362.26  enrollees timely access to the medical assistance benefit set.  
362.27  Alternative services and additional services are available to 
362.28  enrollees at the option of the county administrative entity and 
362.29  may be provided if specified in the personal support plan.  
362.30  County authorities are not required to seek prior authorization 
362.31  from the department as required by the laws and rules governing 
362.32  medical assistance. 
362.33     (d) The county administrative entity shall cover necessary 
362.34  services as a result of an emergency without prior 
362.35  authorization, even if the services were rendered outside of the 
362.36  provider network. 
363.1      (e) The county administrative entity shall authorize 
363.2   necessary and appropriate services when needed and requested by 
363.3   the enrollee or the enrollee's legal representative in response 
363.4   to an urgent situation.  Enrollees shall have 24-hour access to 
363.5   urgent care services coordinated by experienced disability 
363.6   providers who have information about enrollees' needs and 
363.7   conditions. 
363.8      (f) The county administrative entity shall accept the 
363.9   capitation payment from the commissioner in return for the 
363.10  provision of services for enrollees. 
363.11     (g) The county administrative entity shall maintain 
363.12  internal grievance and complaint procedures, including an 
363.13  expedited informal complaint process in which the county 
363.14  administrative entity must respond to verbal complaints within 
363.15  ten calendar days, and a formal grievance process, in which the 
363.16  county administrative entity must respond to written complaints 
363.17  within 30 calendar days. 
363.18     (h) The county administrative entity shall provide a 
363.19  certificate of coverage, upon enrollment, to each enrollee and 
363.20  the enrollee's legal representative, if any, which describes the 
363.21  benefits covered by the county administrative entity, any 
363.22  limitations on those benefits, and information about providers 
363.23  and the service delivery network.  This information must also be 
363.24  made available to prospective enrollees.  This certificate must 
363.25  be approved by the commissioner. 
363.26     (i) The county administrative entity shall present evidence 
363.27  of an expedited process to approve exceptions to benefits, 
363.28  provider network restrictions, and other plan limitations under 
363.29  appropriate circumstances. 
363.30     (j) The county administrative entity shall provide 
363.31  enrollees or their legal representatives with written notice of 
363.32  their appeal rights under subdivision 16, and of ombudsman and 
363.33  advocacy programs under subdivisions 13 and 14, at the following 
363.34  times:  upon enrollment, upon submission of a written complaint, 
363.35  when a service is reduced, denied, or terminated, or when 
363.36  renewal of authorization for ongoing service is refused. 
364.1      (k) The county administrative entity shall determine 
364.2   immediate needs, including services, support, and assessments, 
364.3   within 30 calendar days of enrollment, or within a shorter time 
364.4   frame if specified in the intergovernmental contract. 
364.5      (l) The county administrative entity shall assess the need 
364.6   for services of new enrollees within 60 calendar days of 
364.7   enrollment, or within a shorter time frame if specified in the 
364.8   intergovernmental contract, and periodically reassess the need 
364.9   for services for all enrollees. 
364.10     (m) The county administrative entity shall ensure the 
364.11  development of a personal support plan for each person within 60 
364.12  calendar days of enrollment, or within a shorter time frame if 
364.13  specified in the intergovernmental contract, unless otherwise 
364.14  agreed to by the enrollee and the enrollee's legal 
364.15  representative, if any.  Until a personal support plan is 
364.16  developed and agreed to by the enrollee, enrollees must have 
364.17  access to the same amount, type, setting, duration, and 
364.18  frequency of covered services that they had at the time of 
364.19  enrollment unless other covered services are needed.  For an 
364.20  enrollee who is not receiving covered services at the time of 
364.21  enrollment and for enrollees whose personal support plan is 
364.22  being revised, access to the medical assistance benefit set must 
364.23  be assured until a personal support plan is developed or 
364.24  revised.  The personal support plan must be based on choices, 
364.25  preferences, and assessed needs and strengths of the enrollee.  
364.26  The service coordinator shall develop the personal support plan, 
364.27  in consultation with the enrollee or the enrollee's legal 
364.28  representative and other individuals requested by the enrollee.  
364.29  The personal support plan must be updated as needed or as 
364.30  requested by the enrollee.  Enrollees may choose not to have a 
364.31  personal support plan. 
364.32     (n) The county administrative entity shall ensure timely 
364.33  authorization, arrangement, and continuity of needed and covered 
364.34  supports and services. 
364.35     (o) The county administrative entity shall offer service 
364.36  coordination that fulfills the responsibilities under 
365.1   subdivision 12 and is appropriate to the enrollee's needs, 
365.2   choices, and preferences, including a choice of service 
365.3   coordinator. 
365.4      (p) The county administrative entity shall contract with 
365.5   schools and other agencies as appropriate to provide otherwise 
365.6   covered medically necessary medical assistance services as 
365.7   described in an enrollee's individual family support plan, as 
365.8   described in section 120.1701, or individual education plan, as 
365.9   described in chapter 120. 
365.10     (q) The county administrative entity shall develop and 
365.11  implement strategies, based on consultation with affected 
365.12  groups, to respect diversity and ensure culturally competent 
365.13  service delivery in a manner that promotes the physical, social, 
365.14  psychological, and spiritual well-being of enrollees and 
365.15  preserves the dignity of individuals, families, and their 
365.16  communities. 
365.17     (r) When an enrollee changes county authorities, county 
365.18  administrative entities shall ensure coordination with the 
365.19  entity that is assuming responsibility for administering the 
365.20  medical assistance benefit set to ensure continuity of supports 
365.21  and services for the enrollee. 
365.22     (s) The county administrative entity shall comply with 
365.23  additional requirements as specified in the intergovernmental 
365.24  contract.  
365.25     (t) To the extent that alternatives are approved under 
365.26  subdivision 17, county administrative entities must provide for 
365.27  the health and safety of enrollees and protect the rights to 
365.28  privacy and to provide informed consent. 
365.29     Subd. 9.  [CONSUMER CHOICE AND SAFEGUARDS.] (a) The 
365.30  commissioner may require all eligible individuals to obtain 
365.31  services covered under this chapter through county authorities.  
365.32  Enrollees shall be given choices among a range of available 
365.33  providers with expertise in serving persons of their age and 
365.34  with their category of disability.  If the county authority is 
365.35  also a provider of services covered under the demonstration 
365.36  project, other than service coordination, the enrollee shall be 
366.1   given the choice of at least one other provider of that 
366.2   service.  The commissioner shall ensure that all enrollees have 
366.3   continued access to medically necessary covered services. 
366.4      (b) The commissioner must ensure that a set of enrollee 
366.5   safeguards in the categories of access, choice, comprehensive 
366.6   benefits, access to specialist care, disclosure of financial 
366.7   incentives to providers, prohibition of exclusive provider 
366.8   contracting and gag clauses, legal representation, guardianship, 
366.9   representative payee, quality, rights and appeals, privacy, data 
366.10  collection, and confidentiality are in place prior to enrollment 
366.11  of eligible individuals. 
366.12     (c) If multiple service delivery organizations are offered 
366.13  for acute or continuing care within a demonstration site, 
366.14  enrollees shall be given a choice of these organizations.  A 
366.15  choice is required if the county authority operates its own 
366.16  health maintenance organization, community integrated service 
366.17  network, or similar plan.  Enrollees shall be given 
366.18  opportunities to change enrollment in these organizations within 
366.19  12 months following initial enrollment into the demonstration 
366.20  project and shall also be offered an annual open enrollment 
366.21  period, during which they are permitted to change their service 
366.22  delivery organization. 
366.23     (d) Enrollees shall have the option to change their primary 
366.24  care provider once per month. 
366.25     (e) The commissioner may waive the choice of provider 
366.26  requirements in paragraph (a) or the choice of service delivery 
366.27  organization requirements in paragraph (c) if the county 
366.28  authority can demonstrate that, despite reasonable efforts, no 
366.29  other provider of the service or service delivery organization 
366.30  can be made available within the cost and quality requirements 
366.31  of the demonstration project. 
366.32     Subd. 10.  [CAPITATION PAYMENT.] (a) The commissioner shall 
366.33  pay a capitation payment to the county authority and, when 
366.34  applicable under subdivision 6, paragraph (a), to the service 
366.35  delivery organization for each medical assistance eligible 
366.36  enrollee.  The commissioner shall develop capitation payment 
367.1   rates for the initial contract period for each demonstration 
367.2   site in consultation with an independent actuary, to ensure that 
367.3   the cost of services under the demonstration project does not 
367.4   exceed the estimated cost for medical assistance services for 
367.5   the covered population under the fee-for-service system for the 
367.6   demonstration period.  For each year of the demonstration 
367.7   project, the capitation payment rate shall be based on 96 
367.8   percent of the projected per person costs that would otherwise 
367.9   have been paid under medical assistance fee-for-service during 
367.10  each of those years.  Rates shall be adjusted within the limits 
367.11  of the available risk adjustment technology, as mandated by 
367.12  section 62Q.03.  In addition, the commissioner shall implement 
367.13  appropriate risk and savings sharing provisions with county 
367.14  administrative entities and, when applicable under subdivision 
367.15  6, paragraph (a), service delivery organizations within the 
367.16  projected budget limits.  Any savings beyond those allowed for 
367.17  the county authority, county administrative entity, or service 
367.18  delivery organization shall be first used to meet the unmet 
367.19  needs of eligible individuals.  Payments to providers 
367.20  participating in the project are exempt from the requirements of 
367.21  sections 256.966 and 256B.03, subdivision 2. 
367.22     (b) The commissioner shall monitor and evaluate annually 
367.23  the effect of the discount on consumers, the county authority, 
367.24  and providers of disability services.  Findings shall be 
367.25  reported and recommendations made, as appropriate, to ensure 
367.26  that the discount effect does not adversely affect the ability 
367.27  of the county administrative entity or providers of services to 
367.28  provide appropriate services to eligible individuals, and does 
367.29  not result in cost shifting of eligible individuals to the 
367.30  county authority. 
367.31     Subd. 11.  [INTEGRATION OF FUNDING SOURCES.] The county 
367.32  authority may integrate other local, state, and federal funding 
367.33  sources with medical assistance funding.  The commissioner's 
367.34  approval is required for integration of state and federal funds 
367.35  but not for local funds.  During the demonstration project 
367.36  period, county authorities must maintain the level of local 
368.1   funds expended during the previous calendar year for populations 
368.2   covered in the demonstration project.  Excluding the state share 
368.3   of Medicaid payments, state appropriations for state-operated 
368.4   services shall not be integrated unless specifically approved by 
368.5   the legislature.  The commissioner may approve integration of 
368.6   other state and federal funding if the intergovernmental 
368.7   contract includes assurances that the people who would have been 
368.8   served by these funds will receive comparable or better 
368.9   services.  The commissioner may withdraw approval for 
368.10  integration of state and federal funds if the county authority 
368.11  does not comply with these assurances.  If the county authority 
368.12  chooses to integrate funding, it must comply with the reporting 
368.13  requirements of the commissioner, as specified in the 
368.14  intergovernmental contract, to account for federal and state 
368.15  Medicaid expenditures and expenditures of local funds.  The 
368.16  commissioner, upon the request and concurrence of a county 
368.17  authority, may transfer state grant funds that would otherwise 
368.18  be made available to the county authority to provide continuing 
368.19  care for enrollees to the medical assistance account and, within 
368.20  the limits of federal authority and available federal funding, 
368.21  the commissioner shall adjust the capitation based on the amount 
368.22  of this transfer. 
368.23     Subd. 12.  [SERVICE COORDINATION.] (a) For purposes of this 
368.24  section, "service coordinator" means an individual selected by 
368.25  the enrollee or the enrollee's legal representative and 
368.26  authorized by the county administrative entity or service 
368.27  delivery organization to work in partnership with the enrollee 
368.28  to develop, coordinate, and in some instances, provide supports 
368.29  and services identified in the personal support plan.  Service 
368.30  coordinators may only provide services and supports if the 
368.31  enrollee is informed of potential conflicts of interest, is 
368.32  given alternatives, and gives informed consent.  Eligible 
368.33  service coordinators are individuals age 18 or older who meet 
368.34  the qualifications as described in paragraph (b).  Enrollees, 
368.35  their legal representatives, or their advocates are eligible to 
368.36  be service coordinators if they have the capabilities to perform 
369.1   the activities and functions outlined in paragraph (b).  
369.2   Providers licensed under chapter 245A to provide residential 
369.3   services, or providers who are providing residential services 
369.4   covered under the group residential housing program may not act 
369.5   as service coordinator for enrollees for whom they provide 
369.6   residential services.  This does not apply to providers of 
369.7   short-term detoxification services.  Each county administrative 
369.8   entity or service delivery organization may develop further 
369.9   criteria for eligible vendors of service coordination during the 
369.10  demonstration period and shall determine whom it contracts with 
369.11  or employs to provide service coordination.  County 
369.12  administrative entities and service delivery organizations may 
369.13  pay enrollees or their advocates or legal representatives for 
369.14  service coordination activities. 
369.15     (b) The service coordinator shall act as a facilitator, 
369.16  working in partnership with the enrollee to ensure that their 
369.17  needs are identified and addressed.  The level of involvement of 
369.18  the service coordinator shall depend on the needs and desires of 
369.19  the enrollee.  The service coordinator shall have the knowledge, 
369.20  skills, and abilities to, and is responsible for: 
369.21     (1) arranging for an initial assessment, and periodic 
369.22  reassessment as necessary, of supports and services based on the 
369.23  enrollee's strengths, needs, choices, and preferences in life 
369.24  domain areas; 
369.25     (2) developing and updating the personal support plan based 
369.26  on relevant ongoing assessment; 
369.27     (3) arranging for and coordinating the provisions of 
369.28  supports and services, including knowledgeable and skilled 
369.29  specialty services and prevention and early intervention 
369.30  services, within the limitations negotiated with the county 
369.31  administrative entity or service delivery organization; 
369.32     (4) assisting the enrollee and the enrollee's legal 
369.33  representative, if any, to maximize informed choice of and 
369.34  control over services and supports and to exercise the 
369.35  enrollee's rights and advocate on behalf of the enrollee; 
369.36     (5) monitoring the progress toward achieving the enrollee's 
370.1   outcomes in order to evaluate and adjust the timeliness and 
370.2   adequacy of the implementation of the personal support plan; 
370.3      (6) facilitating meetings and effectively collaborating 
370.4   with a variety of agencies and persons, including attending 
370.5   individual family service plan and individual education plan 
370.6   meetings when requested by the enrollee or the enrollee's legal 
370.7   representative; 
370.8      (7) soliciting and analyzing relevant information; 
370.9      (8) communicating effectively with the enrollee and with 
370.10  other individuals participating in the enrollee's plan; 
370.11     (8) educating and communicating effectively with the 
370.12  enrollee about good health care practices and risk to the 
370.13  enrollee's health with certain behaviors; 
370.14     (10) having knowledge of basic enrollee protection 
370.15  requirements, including data privacy; 
370.16     (11) informing, educating, and assisting the enrollee in 
370.17  identifying available service providers and accessing needed 
370.18  resources and services beyond the limitations of the medical 
370.19  assistance benefit set covered services; and 
370.20     (12) providing other services as identified in the person 
370.21  support plan.  
370.22     (c) For the demonstration project, the qualifications and 
370.23  standards for service coordination in this section shall replace 
370.24  comparable existing provisions of existing statutes and rules 
370.25  governing case management for eligible individuals. 
370.26     (d) The provisions of this subdivision apply only to the 
370.27  demonstration sites that begin implementation on July 1, 1998. 
370.28     Subd. 13.  [OMBUDSMAN.] Enrollees shall have access to 
370.29  ombudsman services established in section 256B.031, subdivision 
370.30  6, and advocacy services provided by the ombudsman for mental 
370.31  health and mental retardation established in sections 245.91 to 
370.32  245.97.  The managed care ombudsman and the ombudsman for mental 
370.33  health and mental retardation shall coordinate services provided 
370.34  to avoid duplication of services.  For purposes of the 
370.35  demonstration project, the powers and responsibilities of the 
370.36  office of the ombudsman for mental health and mental 
371.1   retardation, as provided in sections 245.91 to 245.97 are 
371.2   expanded to include all eligible individuals, health plan 
371.3   companies, agencies, and providers participating in the 
371.4   demonstration project.  
371.5      Subd. 14.  [EXTERNAL ADVOCACY.] In addition to ombudsman 
371.6   services, enrollees shall have access to advocacy services on a 
371.7   local or regional basis.  The purpose of external advocacy 
371.8   includes providing individual advocacy services for enrollees 
371.9   who have complaints or grievances with the county administrative 
371.10  entity, service delivery organization, or a service provider; 
371.11  assisting enrollees to understand the service delivery system 
371.12  and select providers and, if applicable, a service delivery 
371.13  organization; and understand and exercise their rights as an 
371.14  enrollee.  External advocacy contractors must demonstrate that 
371.15  they have the expertise to advocate on behalf of all categories 
371.16  of eligible individuals and are independent of the commissioner, 
371.17  county authority, county administrative entity, service delivery 
371.18  organization, or any service provider within the demonstration 
371.19  project.  
371.20     These advocacy services shall be provided through the 
371.21  ombudsman for mental health and mental retardation directly, or 
371.22  under contract with private, nonprofit organizations, with 
371.23  funding provided through the demonstration project.  The funding 
371.24  shall be provided annually to the ombudsman's office based on 
371.25  0.1 percent of the projected per person costs that would 
371.26  otherwise have been paid under medical assistance 
371.27  fee-for-service during those years.  Funding for external 
371.28  advocacy shall be provided for each year of the demonstration 
371.29  period.  This funding is in addition to the capitation payment 
371.30  available under subdivision 10. 
371.31     Subd. 15.  [PUBLIC GUARDIANSHIP ALTERNATIVES.] Each county 
371.32  authority with enrollees under public guardianship shall develop 
371.33  a plan to discharge all those public guardianships and establish 
371.34  appropriate private alternatives during the demonstration period.
371.35     The commissioner shall provide county authorities with 
371.36  funding for public guardianship alternatives during the first 
372.1   year of the demonstration project based on a proposal to 
372.2   establish private alternatives for a specific number of 
372.3   enrollees under public guardianship.  Funding in subsequent 
372.4   years shall be based on the county authority's performance in 
372.5   achieving discharges of public guardianship and establishing 
372.6   appropriate alternatives.  The commissioner may establish fiscal 
372.7   incentives to encourage county activity in this area.  For each 
372.8   year of the demonstration period, an appropriation is available 
372.9   to the commissioner based on 0.2 percent of the projected per 
372.10  person costs that would otherwise have been paid under medical 
372.11  assistance fee-for-service for that year.  This funding is in 
372.12  addition to the capitation payment available under subdivision 
372.13  10. 
372.14     Subd. 16.  [APPEALS.] Enrollees have the appeal rights 
372.15  specified in section 256.045.  Enrollees may request the 
372.16  conciliation process as outlined under section 256.045, 
372.17  subdivision 4a.  If an enrollee appeals in writing to the state 
372.18  agency on or before the latter of the effective day of the 
372.19  proposed action or the tenth day after they have received the 
372.20  decision of the county administrative entity or service delivery 
372.21  organization to reduce, suspend, terminate, or deny continued 
372.22  authorization for ongoing services which the enrollee had been 
372.23  receiving, the county administrative entity or service delivery 
372.24  organization must continue to authorize services at a level 
372.25  equal to the level it previously authorized until the state 
372.26  agency renders its decision. 
372.27     Subd. 17.  [APPROVAL OF ALTERNATIVES.] The commissioner may 
372.28  approve alternatives to administrative rules if the commissioner 
372.29  determines that appropriate alternative measures are in place to 
372.30  protect the health, safety, and rights of enrollees and to 
372.31  assure that services are of sufficient quality to produce the 
372.32  outcomes described in the personal support plans.  Prior 
372.33  approved waivers, if needed by the demonstration project, shall 
372.34  be extended.  The commissioner shall not waive the rights or 
372.35  procedural protections under sections 245.825; 245.91 to 245.97; 
372.36  252.41, subdivision 9; 256B.092, subdivision 10; 626.556; and 
373.1   626.557; or procedures for the monitoring of psychotropic 
373.2   medications.  Prohibited practices as defined in statutes and 
373.3   rules governing service delivery to eligible individuals are 
373.4   applicable to services delivered under this demonstration 
373.5   project. 
373.6      Subd. 18.  [REPORTING.] Each county authority and service 
373.7   delivery organization, and their contracted providers, shall 
373.8   submit information as required by the commissioner in the 
373.9   intergovernmental contract or service delivery contract, 
373.10  including information about complaints, appeals, outcomes, 
373.11  costs, including spending on services, service utilization, 
373.12  identified unmet needs, services provided, rates of out-of-home 
373.13  placement of children, institutionalization, commitments, number 
373.14  of public guardianships discharged and alternatives to public 
373.15  guardianship established, the use of emergency services, and 
373.16  enrollee satisfaction.  This information must be made available 
373.17  to enrollees and the public.  A county authority under an 
373.18  intergovernmental contract and a service delivery organization 
373.19  under a service delivery contract to provide services must 
373.20  provide the most current listing of the providers who are 
373.21  participating in the plan.  This listing must be provided to 
373.22  enrollees and be made available to the public.  The 
373.23  commissioner, county authorities, and service delivery 
373.24  organizations shall also made all contracts and subcontracts 
373.25  related to the demonstration project available to the public. 
373.26     Subd. 19.  [QUALITY MANAGEMENT AND EVALUATION.] County 
373.27  authorities and service delivery organizations participating in 
373.28  this demonstration project shall provide information to the 
373.29  department as specified in the intergovernmental contract or 
373.30  service delivery contract for the purpose of project evaluation. 
373.31  This information may include both process and outcome evaluation 
373.32  measures across areas that shall include enrollee satisfaction, 
373.33  service delivery, service coordination, individual outcomes, and 
373.34  costs.  An independent evaluation of each demonstration site 
373.35  shall be conducted prior to expansion of the demonstration 
373.36  project to other sites. 
374.1      Subd. 20.  [LIMITATION ON REIMBURSEMENT.] The county 
374.2   administrative entity or service delivery organization may limit 
374.3   any reimbursement to providers not employed by or under contract 
374.4   with the county administrative entity or service delivery 
374.5   organization to the medical assistance rates paid by the 
374.6   commissioner of human services to providers for services to 
374.7   recipients not participating in the demonstration project. 
374.8      Subd. 21.  [COUNTY SOCIAL SERVICES OBLIGATIONS.] For 
374.9   services that are outside of the medical assistance benefit set 
374.10  for enrollees in excluded time status, the county of financial 
374.11  responsibility must negotiate the provisions and payment of 
374.12  services with the county of service prior to the provision of 
374.13  services. 
374.14     Subd. 22.  [MINNESOTA COMMITMENT ACT SERVICES.] The county 
374.15  administrative entity or service delivery organization is 
374.16  financially responsible for all services for enrollees covered 
374.17  by the medical assistance benefit set and ordered by the court 
374.18  under the Minnesota Commitment Act, chapter 253B.  The county 
374.19  authority shall seek input from the county administrative entity 
374.20  or service delivery organization in giving the court information 
374.21  about services the enrollee needs and least restrictive 
374.22  alternatives.  The court order for services is deemed to comply 
374.23  with the definition of medical necessity in Minnesota Rules, 
374.24  part 9505.0175.  The financial responsibility of the county 
374.25  administrative entity or service delivery organization for 
374.26  regional treatment center services to an enrollee while 
374.27  committed to the regional treatment center is limited to 45 days 
374.28  following commitment.  Voluntary hospitalization for enrollees 
374.29  at regional treatment centers must be covered by the county 
374.30  administrative entity or service delivery organization if deemed 
374.31  medically necessary by the county administrative entity or 
374.32  service delivery organization.  The regional treatment center 
374.33  shall not accept a voluntary admission of an enrollee without 
374.34  the authorization of the county administrative entity or service 
374.35  delivery organization.  An enrollee will maintain enrollee 
374.36  status while receiving treatment under the Minnesota Commitment 
375.1   Act or voluntary services in a regional treatment center.  For 
375.2   enrollees committed to the regional treatment center longer than 
375.3   45 days, the commissioner may adjust the aggregate capitation 
375.4   payments, as specified in the intergovernmental contract or 
375.5   service delivery contract. 
375.6      Subd. 23.  [STAKEHOLDER COMMITTEE.] The commissioner shall 
375.7   appoint a stakeholder committee to review and provide 
375.8   recommendations on specifications for demonstration projects; 
375.9   intergovernmental contracts; service delivery contracts; 
375.10  alternatives to administrative rules proposed under subdivision 
375.11  17; specific recommendations for legislation required for the 
375.12  implementation of this project, including changes to statutes; 
375.13  waivers of choice granted under subdivision 9, paragraph (e); 
375.14  and other demonstration project policies and procedures as 
375.15  requested by the commissioner.  The stakeholder committee shall 
375.16  include representatives from the following stakeholders:  
375.17  consumers and their family members, advocates, advocacy 
375.18  organizations, service providers, state government, counties, 
375.19  and health plan companies.  This stakeholder committee shall be 
375.20  in operation for the demonstration period.  The county 
375.21  authorities shall continue to meet with state government to 
375.22  develop the intergovernmental partnership. 
375.23     Subd. 24.  [REPORT TO THE LEGISLATURE.] (a) By February 15 
375.24  of each year of the demonstration project, the commissioner 
375.25  shall report to the legislature on the progress of the 
375.26  demonstration project, including enrollee outcomes, enrollee 
375.27  satisfaction, fiscal information, other information as described 
375.28  in subdivision 18, recommendations from the stakeholder 
375.29  committee, and descriptions of any rules or other administrative 
375.30  procedures waived. 
375.31     (b) The commissioner, in consultation with the counties and 
375.32  the stakeholder committee, shall study and define the county 
375.33  government function of service coordination and make 
375.34  recommendations to the legislature in the report due February 
375.35  15, 1998. 
375.36     Subd. 25.  [SEVERABILITY.] If any subdivision of this 
376.1   section is not approved by the United States Department of 
376.2   Health and Human Services, the commissioner, with the approval 
376.3   of the county authority, retains the authority to implement the 
376.4   remaining subdivisions. 
376.5      Subd. 26.  [SOUTHERN MINNESOTA HEALTH INITIATIVE PILOT 
376.6   PROJECT.] When the commissioner contracts under subdivisions 1 
376.7   and 6, paragraph (a), with the joint powers board for the 
376.8   southern Minnesota health initiative (SMHI) to participate in 
376.9   the demonstration project for persons with disabilities under 
376.10  subdivision 5, the commissioner shall also require health plans 
376.11  serving counties participating in the southern Minnesota health 
376.12  initiative under this section to contract with the southern 
376.13  Minnesota health initiative joint powers board to provide 
376.14  covered mental health and chemical dependency services for the 
376.15  nonelderly/nondisabled persons who reside in one of the counties 
376.16  and who are required or elect to participate in the prepaid 
376.17  medical assistance and general assistance medical care 
376.18  programs.  Enrollees may obtain covered mental health and 
376.19  chemical dependency services through the SMHI or through other 
376.20  health plan contractors.  Participation of the 
376.21  nonelderly/nondisabled with the SMHI is voluntary.  The 
376.22  commissioner shall identify a monthly per capita payment amount 
376.23  that health plans are required to pay to the SMHI for all 
376.24  nonelderly/nondisabled recipients who choose the SMHI for their 
376.25  mental health and chemical dependency services. 
376.26                             ARTICLE 9 
376.27                           MISCELLANEOUS 
376.28     Section 1.  Minnesota Statutes 1996, section 16A.124, 
376.29  subdivision 4b, is amended to read: 
376.30     Subd. 4b.  [HEALTH CARE PAYMENTS.] (a) The commissioner of 
376.31  human services must pay or deny a valid vendor obligation for 
376.32  health services under the medical assistance, general assistance 
376.33  medical care, or MinnesotaCare program within 30 days after 
376.34  receipt.  A "valid vendor obligation" means a clean claim 
376.35  submitted directly to the commissioner by an eligible health 
376.36  care provider for health services provided to an eligible 
377.1   recipient.  A "clean claim" means an original paper or 
377.2   electronic claim with correct data elements, prepared in 
377.3   accordance with the commissioner's published specifications for 
377.4   claim preparation, that does not require an attachment or text 
377.5   information to pay or deny the claim.  Adjustment claims, claims 
377.6   with attachments and text information, and claims submitted to 
377.7   the commissioner as the secondary or tertiary payer, that have 
377.8   been prepared in accordance with the commissioner's published 
377.9   specifications, must be adjudicated within 90 days after receipt.
377.10     For purposes of this subdivision, paragraphs (b) and (c) 
377.11  apply.  
377.12     (b) The agency is not required to make an interest penalty 
377.13  payment on claims for which payment has been delayed for 
377.14  purposes of reviewing potentially fraudulent or abusive billing 
377.15  practices, if there is an eventual finding by the agency of 
377.16  fraud or abuse. 
377.17     (c) The agency is not required to make an interest penalty 
377.18  payment of less than $2. 
377.19     Sec. 2.  Minnesota Statutes 1996, section 245.03, 
377.20  subdivision 2, is amended to read: 
377.21     Subd. 2.  [MISSION; EFFICIENCY.] It is part of the 
377.22  department's mission that within the department's resources the 
377.23  commissioner shall endeavor to: 
377.24     (1) prevent the waste or unnecessary spending of public 
377.25  money; 
377.26     (2) use innovative fiscal and human resource practices to 
377.27  manage the state's resources and operate the department as 
377.28  efficiently as possible, including the authority to consolidate 
377.29  different nonentitlement grant programs, having similar 
377.30  functions or serving similar populations, as may be determined 
377.31  by the commissioner, while protecting the original purposes of 
377.32  the programs.  Nonentitlement grant funds consolidated by the 
377.33  commissioner shall be reflected in the department's biennial 
377.34  budget.  With approval of the commissioner, vendors who are 
377.35  eligible for funding from any of the commissioner's granting 
377.36  authority under section 256.01, subdivision 2, paragraph (1), 
378.1   clause (f), may submit a single application for a grant 
378.2   agreement including multiple awards; 
378.3      (3) coordinate the department's activities wherever 
378.4   appropriate with the activities of other governmental agencies; 
378.5      (4) use technology where appropriate to increase agency 
378.6   productivity, improve customer service, increase public access 
378.7   to information about government, and increase public 
378.8   participation in the business of government; 
378.9      (5) utilize constructive and cooperative labor-management 
378.10  practices to the extent otherwise required by chapters 43A and 
378.11  179A; 
378.12     (6) include specific objectives in the performance report 
378.13  required under section 15.91 to increase the efficiency of 
378.14  agency operations, when appropriate; and 
378.15     (7) recommend to the legislature, in the performance report 
378.16  of the department required under section 15.91, appropriate 
378.17  changes in law necessary to carry out the mission of the 
378.18  department. 
378.19     Sec. 3.  Minnesota Statutes 1996, section 245.98, is 
378.20  amended by adding a subdivision to read: 
378.21     Subd. 5.  [STANDARDS.] The commissioner shall create 
378.22  standards for treatment and provider qualifications for the 
378.23  treatment component of the compulsive gambling program. 
378.24     Sec. 4.  [252.294] [CRITERIA FOR DOWNSIZING OF FACILITIES.] 
378.25     The commissioner of human services shall develop a process 
378.26  to evaluate and rank proposals for the voluntary downsizing or 
378.27  closure of intermediate care facilities for persons with mental 
378.28  retardation or related conditions using the following guidelines:
378.29     (1) the extent to which the option matches overall policy 
378.30  direction of the department; 
378.31     (2) the extent to which the option demonstrates respect for 
378.32  individual needs and allows implementation of individual choice; 
378.33     (3) the extent to which the option addresses safety, 
378.34  privacy, and other programmatic issues; 
378.35     (4) the extent to which the option appropriately redesigns 
378.36  the overall community capacity; and 
379.1      (5) the cost of each option. 
379.2      The process shall, to the extent feasible, be modeled on 
379.3   the nursing home moratorium exception process, including 
379.4   procedures for administrative evaluation and approval of 
379.5   projects within the limit of appropriations made available by 
379.6   the legislature. 
379.7      Sec. 5.  Minnesota Statutes 1996, section 256.045, 
379.8   subdivision 10, is amended to read: 
379.9      Subd. 10.  [PAYMENTS PENDING APPEAL.] If the commissioner 
379.10  of human services or district court orders monthly assistance or 
379.11  aid or services paid or provided in any proceeding under this 
379.12  section, it shall be paid or provided pending appeal to the 
379.13  commissioner of human services, district court, court of 
379.14  appeals, or supreme court.  The human services referee may order 
379.15  the local human services agency to reduce or terminate medical 
379.16  assistance or general assistance medical care to a recipient 
379.17  before a final order is issued under this section if:  (1) the 
379.18  human services referee determines at the hearing that the sole 
379.19  issue on appeal is one of a change in state or federal law; and 
379.20  (2) the commissioner or the local agency notifies the recipient 
379.21  before the action.  The state or county agency has a claim for 
379.22  food stamps, cash payments, medical assistance, general 
379.23  assistance medical care, and MinnesotaCare program payments made 
379.24  to or on behalf of a recipient or former recipient while an 
379.25  appeal is pending if the recipient or former recipient is 
379.26  determined ineligible for the food stamps, cash payments, 
379.27  medical assistance, general assistance medical care, or 
379.28  MinnesotaCare as a result of the appeal, except for medical 
379.29  assistance and general assistance medical care made on behalf of 
379.30  a recipient pursuant to a court order.  In enforcing a claim on 
379.31  MinnesotaCare program payments, the state or county agency shall 
379.32  reduce the claim amount by the value of any premium payments 
379.33  made by a recipient or former recipient during the period for 
379.34  which the recipient or former recipient has been determined to 
379.35  be ineligible.  Provision of a health care service by the state 
379.36  agency under medical assistance, general assistance medical 
380.1   care, or MinnesotaCare pending appeal shall not render moot the 
380.2   state agency's position in a court of law. 
380.3      Sec. 6.  Minnesota Statutes 1996, section 256.9742, is 
380.4   amended to read: 
380.5      256.9742 [DUTIES AND POWERS OF THE OFFICE.] 
380.6      Subdivision 1.  [DUTIES.] The ombudsman ombudsman's program 
380.7   shall: 
380.8      (1) gather information and evaluate any act, practice, 
380.9   policy, procedure, or administrative action of a long-term care 
380.10  facility, acute care facility, home care service provider, or 
380.11  government agency that may adversely affect the health, safety, 
380.12  welfare, or rights of any client; 
380.13     (2) mediate or advocate on behalf of clients; 
380.14     (3) monitor the development and implementation of federal, 
380.15  state, or local laws, rules, regulations, and policies affecting 
380.16  the rights and benefits of clients; 
380.17     (4) comment on and recommend to the legislature and public 
380.18  and private agencies regarding laws, rules, regulations, and 
380.19  policies affecting clients; 
380.20     (5) inform public agencies about the problems of clients; 
380.21     (6) provide for training of volunteers and promote the 
380.22  development of citizen participation in the work of the office; 
380.23     (7) conduct public forums to obtain information about and 
380.24  publicize issues affecting clients; 
380.25     (8) provide public education regarding the health, safety, 
380.26  welfare, and rights of clients; and 
380.27     (9) collect and analyze data relating to complaints, 
380.28  conditions, and services. 
380.29     Subd. 1a.  [DESIGNATION; LOCAL OMBUDSMAN REPRESENTATIVES 
380.30  STAFF AND VOLUNTEERS.] (a) In designating an individual to 
380.31  perform duties under this section, the ombudsman must determine 
380.32  that the individual is qualified to perform the duties required 
380.33  by this section. 
380.34     (b) An individual designated as ombudsman staff under this 
380.35  section must successfully complete an orientation training 
380.36  conducted under the direction of the ombudsman or approved by 
381.1   the ombudsman.  Orientation training shall be at least 20 hours 
381.2   and will consist of training in:  investigation, dispute 
381.3   resolution, health care regulation, confidentiality, resident 
381.4   and patients' rights, and health care reimbursement. 
381.5      (c) The ombudsman shall develop and implement a continuing 
381.6   education program for individuals designated as ombudsman staff 
381.7   under this section.  The continuing education program shall be 
381.8   at least 60 hours annually. 
381.9      (d) An individual designated as an ombudsman volunteer 
381.10  under this section must successfully complete an approved 
381.11  orientation training course with a minimum curriculum including 
381.12  federal and state bills of rights for long-term care residents, 
381.13  acute hospital patients and home care clients, the Vulnerable 
381.14  Adults Act, confidentiality, and the role of the ombudsman. 
381.15     (e) The ombudsman shall develop and implement a continuing 
381.16  education program for ombudsman volunteers which will provide a 
381.17  minimum of 12 hours of continuing education per year. 
381.18     (f) The ombudsman may withdraw an individual's designation 
381.19  if the individual fails to perform duties of this section or 
381.20  meet continuing education requirements.  The individual may 
381.21  request a reconsideration of such action by the board on aging 
381.22  whose decision shall be final. 
381.23     Subd. 2.  [IMMUNITY FROM LIABILITY.] The ombudsman or 
381.24  designee including staff and volunteers under this section is 
381.25  immune from civil liability that otherwise might result from the 
381.26  person's actions or omissions if the person's actions are in 
381.27  good faith, are within the scope of the person's 
381.28  responsibilities as an ombudsman or designee, and do not 
381.29  constitute willful or reckless misconduct. 
381.30     Subd. 3.  [POSTING.] Every long-term care facility and 
381.31  acute care facility shall post in a conspicuous place the 
381.32  address and telephone number of the office.  A home care service 
381.33  provider shall provide all recipients, including those in 
381.34  elderly housing with services under chapter 144D, with the 
381.35  address and telephone number of the office.  Counties shall 
381.36  provide clients receiving a consumer support grant or a service 
382.1   allowance with the name, address, and telephone number of the 
382.2   office.  The posting or notice is subject to approval by the 
382.3   ombudsman.  
382.4      Subd. 4.  [ACCESS TO LONG-TERM CARE AND ACUTE CARE 
382.5   FACILITIES AND CLIENTS.] The ombudsman or designee may: 
382.6      (1) enter any long-term care facility without notice at any 
382.7   time; 
382.8      (2) enter any acute care facility without notice during 
382.9   normal business hours; 
382.10     (3) enter any acute care facility without notice at any 
382.11  time to interview a patient or observe services being provided 
382.12  to the patient as part of an investigation of a matter that is 
382.13  within the scope of the ombudsman's authority, but only if the 
382.14  ombudsman's or designee's presence does not intrude upon the 
382.15  privacy of another patient or interfere with routine hospital 
382.16  services provided to any patient in the facility; 
382.17     (4) communicate privately and without restriction with any 
382.18  client in accordance with section 144.651, as long as the 
382.19  ombudsman has the client's consent for such communication; 
382.20     (5) inspect records of a long-term care facility, home care 
382.21  service provider, or acute care facility that pertain to the 
382.22  care of the client according to sections 144.335 and 144.651; 
382.23  and 
382.24     (6) with the consent of a client or client's legal 
382.25  guardian, the ombudsman or designated staff shall have access to 
382.26  review records pertaining to the care of the client according to 
382.27  sections 144.335 and 144.651.  If a client cannot consent and 
382.28  has no legal guardian, access to the records is authorized by 
382.29  this section.  
382.30     A person who denies access to the ombudsman or designee in 
382.31  violation of this subdivision or aids, abets, invites, compels, 
382.32  or coerces another to do so is guilty of a misdemeanor. 
382.33     Subd. 5.  [ACCESS TO STATE RECORDS.] The ombudsman or 
382.34  designee, excluding volunteers, has access to data of a state 
382.35  agency necessary for the discharge of the ombudsman's duties, 
382.36  including records classified confidential or private under 
383.1   chapter 13, or any other law.  The data requested must be 
383.2   related to a specific case and is subject to section 13.03, 
383.3   subdivision 4.  If the data concerns an individual, the 
383.4   ombudsman or designee shall first obtain the individual's 
383.5   consent.  If the individual cannot consent and has no legal 
383.6   guardian, then access to the data is authorized by this section. 
383.7      Each state agency responsible for licensing, regulating, 
383.8   and enforcing state and federal laws and regulations concerning 
383.9   long-term care, home care service providers, and acute care 
383.10  facilities shall forward to the ombudsman on a quarterly basis, 
383.11  copies of all correction orders, penalty assessments, and 
383.12  complaint investigation reports, for all long-term care 
383.13  facilities, acute care facilities, and home care service 
383.14  providers. 
383.15     Subd. 6.  [PROHIBITION AGAINST DISCRIMINATION OR 
383.16  RETALIATION.] (a) No entity shall take discriminatory, 
383.17  disciplinary, or retaliatory action against an employee or 
383.18  volunteer, or a patient, resident, or guardian or family member 
383.19  of a patient, resident, or guardian for filing in good faith a 
383.20  complaint with or providing information to the ombudsman or 
383.21  designee including volunteers.  A person who violates this 
383.22  subdivision or who aids, abets, invites, compels, or coerces 
383.23  another to do so is guilty of a misdemeanor. 
383.24     (b) There shall be a rebuttable presumption that any 
383.25  adverse action, as defined below, within 90 days of report, is 
383.26  discriminatory, disciplinary, or retaliatory.  For the purpose 
383.27  of this clause, the term "adverse action" refers to action taken 
383.28  by the entity involved in a report against the person making the 
383.29  report or the person with respect to whom the report was made 
383.30  because of the report, and includes, but is not limited to: 
383.31     (1) discharge or transfer from a facility; 
383.32     (2) termination of service; 
383.33     (3) restriction or prohibition of access to the facility or 
383.34  its residents; 
383.35     (4) discharge from or termination of employment; 
383.36     (5) demotion or reduction in remuneration for services; and 
384.1      (6) any restriction of rights set forth in section 144.651 
384.2   or 144A.44. 
384.3      Sec. 7.  Minnesota Statutes 1996, section 256.9744, 
384.4   subdivision 2, is amended to read: 
384.5      Subd. 2.  [RELEASE.] Data maintained by the office that 
384.6   does not relate to the identity of a complainant, a client 
384.7   receiving home-care services, or a resident of a long-term 
384.8   facility may be released at the discretion of the ombudsman 
384.9   responsible for maintaining the data.  Data relating to the 
384.10  identity of a complainant, a client receiving home-care 
384.11  services, or a resident of a long-term facility may be released 
384.12  only with the consent of the complainant, the client or resident 
384.13  or by court order. 
384.14     Sec. 8.  [256.9772] [HEALTH CARE CONSUMER ASSISTANCE GRANT 
384.15  PROGRAM.] 
384.16     The board on aging shall award grants to area agencies on 
384.17  aging to develop projects to provide information about health 
384.18  coverage and to provide assistance to individuals in obtaining 
384.19  public and private health care benefits.  Projects must: 
384.20     (1) train and support staff and volunteers to work in 
384.21  partnership to provide one-on-one information and assistance 
384.22  services; 
384.23     (2) provide individual consumers with assistance in 
384.24  understanding the terms of a certificate, contract, or policy of 
384.25  health coverage, including, but not limited to, terms relating 
384.26  to covered services, limitations on services, limitations on 
384.27  access to providers, and enrollee complaint and appeal 
384.28  procedures; 
384.29     (3) assist individuals to understand medical bills and to 
384.30  process health care claims and appeals to obtain health care 
384.31  benefits; 
384.32     (4) coordinate with existing health insurance counseling 
384.33  programs serving Medicare eligible individuals or establish 
384.34  programs to serve all consumers; 
384.35     (5) target those individuals determined to be in greatest 
384.36  social and economic need for counseling services; and 
385.1      (6) operate according to United States Code, title 42, 
385.2   section 1395b-4, if serving Medicare beneficiaries. 
385.3      Sec. 9.  Minnesota Statutes 1996, section 256B.037, 
385.4   subdivision 1a, is amended to read: 
385.5      Subd. 1a.  [MULTIPLE DENTAL PLAN AREAS.] After the 
385.6   department has executed contracts with dental plans to provide 
385.7   covered dental care services in a multiple dental plan area, the 
385.8   department shall:  
385.9      (1) inform applicants and recipients, in writing, of 
385.10  available dental plans, when written notice of dental plan 
385.11  selection must be submitted to the department, and when dental 
385.12  plan participation begins; 
385.13     (2) randomly assign to a dental plan recipients who fail to 
385.14  notify the department in writing of their dental plan choice; 
385.15  and 
385.16     (3) notify recipients, in writing, of their assigned dental 
385.17  plan before the effective date of the recipient's dental plan 
385.18  participation.  
385.19     Sec. 10.  Minnesota Statutes 1996, section 256B.0911, 
385.20  subdivision 2, is amended to read: 
385.21     Subd. 2.  [PERSONS REQUIRED TO BE SCREENED; EXEMPTIONS.] 
385.22  All applicants to Medicaid certified nursing facilities must be 
385.23  screened prior to admission, regardless of income, assets, or 
385.24  funding sources, except the following: 
385.25     (1) patients who, having entered acute care facilities from 
385.26  certified nursing facilities, are returning to a certified 
385.27  nursing facility; 
385.28     (2) residents transferred from other certified nursing 
385.29  facilities located within the state of Minnesota; 
385.30     (3) individuals who have a contractual right to have their 
385.31  nursing facility care paid for indefinitely by the veteran's 
385.32  administration; 
385.33     (4) individuals who are enrolled in the Ebenezer/Group 
385.34  Health social health maintenance organization project, or 
385.35  enrolled in a demonstration project under section 256B.69, 
385.36  subdivision 18, at the time of application to a nursing home; or 
386.1      (5) individuals previously screened and currently being 
386.2   served under the alternative care program or under a home and 
386.3   community-based services waiver authorized under section 1915(c) 
386.4   of the Social Security Act; or 
386.5      (6) individuals who are admitted to a certified nursing 
386.6   facility for a short-term stay, which, based upon a physician's 
386.7   certification, is expected to be 14 days or less in duration, 
386.8   and who have been screened and approved for nursing facility 
386.9   admission within the previous six months.  This exemption 
386.10  applies only if the screener determines at the time of the 
386.11  initial screening of the six-month period that it is appropriate 
386.12  to use the nursing facility for short-term stays and that there 
386.13  is an adequate plan of care for return to the home or 
386.14  community-based setting.  If a stay exceeds 14 days, the 
386.15  individual must be referred no later than the first county 
386.16  working day following the 14th resident day for a screening, 
386.17  which must be completed within five working days of the 
386.18  referral.  Payment limitations in subdivision 7 will apply to an 
386.19  individual found at screening to meet the level of care criteria 
386.20  for admission to a certified nursing facility. 
386.21     Regardless of the exemptions in clauses (2) to (4) (6), 
386.22  persons who have a diagnosis or possible diagnosis of mental 
386.23  illness, mental retardation, or a related condition must be 
386.24  screened receive a preadmission screening before admission 
386.25  unless the admission prior to screening is authorized by the 
386.26  local mental health authority or the local developmental 
386.27  disabilities case manager, or unless authorized by the county 
386.28  agency according to Public Law Number 101-508. 
386.29     Before admission to a Medicaid certified nursing home or 
386.30  boarding care home, all persons must be screened and approved 
386.31  for admission through an assessment process.  The nursing 
386.32  facility is authorized to conduct case mix assessments which are 
386.33  not conducted by the county public health nurse under Minnesota 
386.34  Rules, part 9549.0059.  The designated county agency is 
386.35  responsible for distributing the quality assurance and review 
386.36  form for all new applicants to nursing homes. 
387.1      Other persons who are not applicants to nursing facilities 
387.2   must be screened if a request is made for a screening. 
387.3      Sec. 11.  Minnesota Statutes 1996, section 256B.434, 
387.4   subdivision 2, is amended to read: 
387.5      Subd. 2.  [REQUESTS FOR PROPOSALS.] (a) No later than 
387.6   August 1, 1995, At least twice annually the commissioner shall 
387.7   publish in the State Register a request for proposals to provide 
387.8   nursing facility services according to this section.  The 
387.9   commissioner shall issue two additional requests for proposals 
387.10  prior to July 1, 1997, based upon a timetable established by the 
387.11  commissioner.  The commissioner must respond to all proposals in 
387.12  a timely manner. 
387.13     (b) The commissioner may reject any proposal if, in the 
387.14  judgment of the commissioner, a contract with a particular 
387.15  facility is not in the best interests of the residents of the 
387.16  facility or the state of Minnesota.  The commissioner may accept 
387.17  up to the number of proposals that can be adequately supported 
387.18  with available state resources, as determined by the 
387.19  commissioner, except that the commissioner shall not contract 
387.20  with more than 40 nursing facilities as part of any request for 
387.21  proposals.  The commissioner may accept proposals from a single 
387.22  nursing facility or from a group of facilities through a 
387.23  managing entity.  The commissioner shall seek to ensure that 
387.24  nursing facilities under contract are located in all geographic 
387.25  areas of the state.  The commissioner shall present 
387.26  recommendations to the legislature by February 1, 1996, on the 
387.27  number of nursing facility contracts that may be entered into by 
387.28  the commissioner as a result of a request for proposals. 
387.29     (c) In issuing the request for proposals, the commissioner 
387.30  may develop reasonable requirements which, in the judgment of 
387.31  the commissioner, are necessary to protect residents or ensure 
387.32  that the contractual alternative payment demonstration project 
387.33  furthers the interest of the state of Minnesota.  The request 
387.34  for proposals may include, but need not be limited to, the 
387.35  following: 
387.36     (1) a requirement that a nursing facility make reasonable 
388.1   efforts to maximize Medicare payments on behalf of eligible 
388.2   residents; 
388.3      (2) requirements designed to prevent inappropriate or 
388.4   illegal discrimination against residents enrolled in the medical 
388.5   assistance program as compared to private paying residents; 
388.6      (3) requirements designed to ensure that admissions to a 
388.7   nursing facility are appropriate and that reasonable efforts are 
388.8   made to place residents in home and community-based settings 
388.9   when appropriate; 
388.10     (4) a requirement to agree to participate in a project to 
388.11  develop data collection systems and outcome-based standards for 
388.12  managed care contracting for long-term care services.  Among 
388.13  other requirements specified by the commissioner, each facility 
388.14  entering into a contract may be required to pay an annual fee in 
388.15  an amount determined by the commissioner not to exceed $50 per 
388.16  bed.  Revenue generated from the fees is appropriated to the 
388.17  commissioner and must be used to contract with a qualified 
388.18  consultant or contractor to develop data collection systems and 
388.19  outcome-based contracting standards; 
388.20     (5) a requirement that contractors agree to maintain 
388.21  Medicare cost reports and to submit them to the commissioner 
388.22  upon request or at times specified by the commissioner; 
388.23     (6) a requirement for demonstrated willingness and ability 
388.24  to develop and maintain data collection and retrieval systems to 
388.25  be used in measuring outcomes; and 
388.26     (7) a requirement to provide all information and assurances 
388.27  required by the terms and conditions of the federal waiver or 
388.28  federal approval. 
388.29     (d) In addition to the information and assurances contained 
388.30  in the submitted proposals, the commissioner may consider the 
388.31  following in determining whether to accept or deny a proposal: 
388.32     (1) the facility's history of compliance with federal and 
388.33  state laws and rules;, except that a facility deemed to be in 
388.34  substantial compliance with federal and state laws and rules is 
388.35  eligible to respond to a request for proposal.  A facility's 
388.36  compliance history shall not be the sole determining factor in 
389.1   situations where the facility has been sold and the new owners 
389.2   have submitted a proposal; 
389.3      (2) whether the facility has a record of excessive 
389.4   licensure fines or sanctions or fraudulent cost reports; 
389.5      (3) financial history and solvency; and 
389.6      (4) other factors identified by the commissioner that the 
389.7   commissioner deems relevant to a determination that a contract 
389.8   with a particular facility is not in the best interests of the 
389.9   residents of the facility or the state of Minnesota. 
389.10     (e) If the commissioner rejects the proposal of a nursing 
389.11  facility, the commissioner shall provide written notice to the 
389.12  facility of the reason for the rejection, including the factors 
389.13  and evidence upon which the rejection was based. 
389.14     Sec. 12.  Minnesota Statutes 1996, section 256B.434, 
389.15  subdivision 4, is amended to read: 
389.16     Subd. 4.  [ALTERNATE RATES FOR NURSING FACILITIES.] (a) For 
389.17  nursing facilities which have their payment rates determined 
389.18  under this section rather than section 256B.431, subdivision 25, 
389.19  the commissioner shall establish a rate under this subdivision.  
389.20  The nursing facility must enter into a written contract with the 
389.21  commissioner. 
389.22     (b) A nursing facility's case mix payment rate for the 
389.23  first rate year of a facility's contract under this section is 
389.24  the payment rate the facility would have received under section 
389.25  256B.431, subdivision 25. 
389.26     (c) A nursing facility's case mix payment rates for the 
389.27  second and subsequent years of a facility's contract under this 
389.28  section are the previous rate year's contract payment rates plus 
389.29  an inflation adjustment.  The index for the inflation adjustment 
389.30  must be based on the change in the Consumer Price Index-All 
389.31  Items (United States City average) (CPI-U) forecasted by Data 
389.32  Resources, Inc., as forecasted in the fourth quarter of the 
389.33  calendar year preceding the rate year.  The inflation adjustment 
389.34  must be based on the 12-month period from the midpoint of the 
389.35  previous rate year to the midpoint of the rate year for which 
389.36  the rate is being determined. 
390.1      (d) The commissioner may shall develop additional 
390.2   incentive-based payments of up to five percent above the 
390.3   standard contract rate for achieving outcomes specified in each 
390.4   contract.  The incentive system may be implemented for contract 
390.5   rate years beginning on or after July 1, 1996.  The specified 
390.6   facility-specific outcomes must be measurable and must be based 
390.7   on criteria to be developed and approved by the commissioner.  
390.8   The commissioner may establish, for each contract, various 
390.9   levels of achievement within an outcome.  After the outcomes 
390.10  have been specified the commissioner shall assign various levels 
390.11  of payment associated with achieving the outcome.  Any 
390.12  incentive-based payment cancels if there is a termination of the 
390.13  contract.  In establishing the specified outcomes and related 
390.14  criteria the commissioner shall consider the following state 
390.15  policy objectives: 
390.16     (1) improved cost effectiveness and quality of life as 
390.17  measured by improved clinical outcomes; 
390.18     (2) successful diversion or discharge to community 
390.19  alternatives; 
390.20     (3) decreased acute care costs; 
390.21     (4) improved consumer satisfaction; 
390.22     (5) the achievement of quality; or 
390.23     (6) any additional outcomes proposed by a nursing facility 
390.24  that the commissioner finds desirable. 
390.25     Sec. 13.  [256B.693] [STATE-OPERATED SERVICES; MANAGED 
390.26  CARE.] 
390.27     Subdivision 1.  [PROPOSALS FOR MANAGED CARE; ROLE OF STATE 
390.28  OPERATED SERVICES.] Any proposal integrating state-operated 
390.29  services with managed care systems for persons with disabilities 
390.30  shall identify the specific role to be assumed by state-operated 
390.31  services and the funding arrangement in which state-operated 
390.32  services shall effectively operate within the managed care 
390.33  initiative.  The commissioner shall not approve or implement the 
390.34  initiative that consolidates funding appropriated for 
390.35  state-operated services with funding for managed care 
390.36  initiatives for persons with disabilities. 
391.1      Subd. 2.  [STUDY BY THE COMMISSIONER.] To help identify 
391.2   appropriate state-operated services for managed care systems, 
391.3   the commissioner of human services shall study the integration 
391.4   of state-operated services into public managed care systems and 
391.5   make recommendations to the legislature.  The commissioner's 
391.6   study and recommendations shall include, but shall not be 
391.7   limited to, the following: 
391.8      (1) identification of persons with disabilities on waiting 
391.9   lists for services, which could be provided by state-operated 
391.10  services; 
391.11     (2) availability of crisis services to persons with 
391.12  disabilities; 
391.13     (3) unmet service needs, which could be met by 
391.14  state-operated services; and 
391.15     (4) deficiencies in managed care contracts and services, 
391.16  which hinder the placement and maintenance of persons with 
391.17  disabilities in community settings. 
391.18     In conducting this study, the commissioner shall survey 
391.19  counties concerning their interest in and need for services that 
391.20  could be provided by state-operated services.  The commissioner 
391.21  shall also consult with the appropriate exclusive bargaining 
391.22  unit representatives.  The commissioner shall report findings to 
391.23  the legislature by February 1, 1998. 
391.24     Sec. 14.  Minnesota Statutes 1996, section 256E.06, is 
391.25  amended by adding a subdivision to read: 
391.26     Subd. 2b.  [COUNTY SOCIAL SERVICE GRANTS FOR FORMER GRH 
391.27  RECIPIENTS.] (a) Notwithstanding subdivisions 1 and 2, and 
391.28  notwithstanding the provision in Laws 1995, chapter 207, article 
391.29  1, section 2, subdivision 3, that authorized the commissioner to 
391.30  transfer funds from the group residential housing account to 
391.31  community social services aids to counties, beginning July 1, 
391.32  1995, money used to provide continuous funding for assistance to 
391.33  persons who are no longer eligible for assistance under the 
391.34  group residential housing program under chapter 256I, as 
391.35  specified in paragraph (b), is added to the community social 
391.36  services aid amount for the county in which the group 
392.1   residential housing setting for which the person is no longer 
392.2   eligible is located.  Notwithstanding the provision in Laws 
392.3   1995, chapter 207, article 1, section 2, subdivision 3, that 
392.4   required the increased community social services act 
392.5   appropriations to be used to proportionately increase each 
392.6   county's aid, this money must not be apportioned to any other 
392.7   county or counties. 
392.8      (b) Former group residential housing recipients for whom 
392.9   money is added to a county's aid amount under paragraph (a) 
392.10  include: 
392.11     (1) persons receiving services in Hennepin county from a 
392.12  provider that on August 1, 1984, was licensed under Minnesota 
392.13  Rules, parts 9525.0520 to 9525.0660, but was funded as a group 
392.14  residence under the general assistance or Minnesota supplemental 
392.15  aid programs; 
392.16     (2) persons residing in a setting with a semi-independent 
392.17  living services license under Minnesota Rules, parts 9525.0900 
392.18  to 9525.1020; and 
392.19     (3) persons residing in family foster care settings who 
392.20  have become ineligible for group residential housing assistance 
392.21  because they receive services through the medical assistance 
392.22  community-based waiver for persons with mental retardation or 
392.23  related conditions under section 256B.0916. 
392.24     Sec. 15.  [256J.03] [TANF RESERVE ACCOUNT.] 
392.25     The Minnesota family investment program-statewide/TANF 
392.26  reserve account is created in the state treasury.  Funds 
392.27  designated by the legislature and earnings available from the 
392.28  federal TANF block grant appropriated to the commissioner but 
392.29  not expended in the biennium beginning July 1, 1997, shall be 
392.30  retained in the reserve account to be expended for the Minnesota 
392.31  family investment program-statewide in fiscal year 2000 and 
392.32  subsequent fiscal years. 
392.33     Sec. 16.  Minnesota Statutes 1996, section 518.17, 
392.34  subdivision 1, is amended to read: 
392.35     Subdivision 1.  [THE BEST INTERESTS OF THE CHILD.] (a) "The 
392.36  best interests of the child" means all relevant factors to be 
393.1   considered and evaluated by the court including: 
393.2      (1) the wishes of the child's parent or parents as to 
393.3   custody; 
393.4      (2) the reasonable preference of the child, if the court 
393.5   deems the child to be of sufficient age to express preference; 
393.6      (3) the child's primary caretaker; 
393.7      (4) the intimacy of the relationship between each parent 
393.8   and the child; 
393.9      (5) the interaction and interrelationship of the child with 
393.10  a parent or parents, siblings, and any other person who may 
393.11  significantly affect the child's best interests; 
393.12     (6) the child's adjustment to home, school, and community; 
393.13     (7) the length of time the child has lived in a stable, 
393.14  satisfactory environment and the desirability of maintaining 
393.15  continuity; 
393.16     (8) the permanence, as a family unit, of the existing or 
393.17  proposed custodial home; 
393.18     (9) the mental and physical health of all individuals 
393.19  involved; except that a disability, as defined in section 
393.20  363.01, of a proposed custodian or the child shall not be 
393.21  determinative of the custody of the child, unless the proposed 
393.22  custodial arrangement is not in the best interest of the child; 
393.23     (10) the capacity and disposition of the parties to give 
393.24  the child love, affection, and guidance, and to continue 
393.25  educating and raising the child in the child's culture and 
393.26  religion or creed, if any; 
393.27     (11) the child's cultural background; 
393.28     (12) the effect on the child of the actions of an abuser, 
393.29  if related to domestic abuse, as defined in section 518B.01, 
393.30  that has occurred between the parents or between a parent and 
393.31  another individual, whether or not the individual alleged to 
393.32  have committed domestic abuse is or ever was a family or 
393.33  household member of the parent; and 
393.34     (13) except in cases in which a finding of domestic abuse 
393.35  as defined in section 518B.01 has been made, the disposition of 
393.36  each parent to encourage and permit frequent and continuing 
394.1   contact by the other parent with the child. 
394.2      The court may not use one factor to the exclusion of all 
394.3   others.  The primary caretaker factor may not be used as a 
394.4   presumption in determining the best interests of the child.  The 
394.5   court must make detailed findings on each of the factors and 
394.6   explain how the factors led to its conclusions and to the 
394.7   determination of the best interests of the child.  
394.8      (b) The court shall not consider conduct of a proposed 
394.9   custodian that does not affect the custodian's relationship to 
394.10  the child. 
394.11     Sec. 17.  [DOMESTIC VIOLENCE; TRAINING PROGRAMS.] 
394.12     The commissioner of human services shall establish 
394.13  mandatory domestic violence and sexual abuse training programs 
394.14  for county financial workers and child support agency employees 
394.15  who screen and work with applicants and recipients.  In order to 
394.16  provide this training, the commissioner shall establish a 
394.17  request for proposals and contract with experts in domestic 
394.18  violence and sexual abuse issues to do the actual training.  
394.19  Where feasible, the commissioner shall integrate training on 
394.20  domestic violence and sexual abuse issues with retraining of 
394.21  county employees on implementation of the new TANF program, and 
394.22  with the training required under Minnesota Statutes 1996, 
394.23  section 256.741, subdivision 14, in order to contain costs.  To 
394.24  the extent possible, the state or local agency shall not refer 
394.25  applicants or recipients to any employee who has not been 
394.26  trained in dealing with issues related to domestic violence and 
394.27  sexual abuse. 
394.28     Sec. 18.  [VETERANS HOMES IMPROVEMENTS.] 
394.29     (a) The veterans homes board of directors may make and 
394.30  maintain the following improvements to the indicated veterans 
394.31  homes using money donated for those purposes: 
394.32     (1) at the Hastings veterans home, an outdoor bus shelter 
394.33  and smoking area for residents and a pole barn for storage of 
394.34  residents' property; 
394.35     (2) at the Luverne veterans home, a garage, picnic shelter, 
394.36  and three-season porch; and 
395.1      (3) at the Silver Bay veterans home, a garage, maintenance, 
395.2   and storage building, a three-season porch at the east entrance, 
395.3   and landscaping as follows: 
395.4      (i) walking and wheelchair trails; 
395.5      (ii) stationary benches along trails; 
395.6      (iii) flag pole relocation; 
395.7      (iv) a gazebo in the dementia wander area; and 
395.8      (v) two patio areas.  
395.9      (b) Money donated for these improvements must be accounted 
395.10  for according to Minnesota Statutes, section 198.161. 
395.11     Sec. 19.  [TRANSITION FOR THE COMPULSIVE GAMBLING TREATMENT 
395.12  PROGRAM.] 
395.13     The commissioner of human services shall conduct a 
395.14  transition of treatment programs for compulsive gambling from 
395.15  the treatment center model to a model in which reimbursement for 
395.16  treatment of an individual compulsive gambler from an approved 
395.17  provider is on a fee-for-service basis on the following schedule:
395.18     (1) one-third of compulsive gamblers treated through the 
395.19  program must receive services paid for from the individual 
395.20  treatment reimbursement model beginning October 1, 1997; 
395.21     (2) two-thirds of compulsive gamblers treated through the 
395.22  program must receive services paid for from the individual 
395.23  treatment reimbursement model beginning July 1, 1998; and 
395.24     (3) 100 percent of compulsive gamblers treated through the 
395.25  program must receive treatment paid for from the individual 
395.26  treatment reimbursement model beginning July 1, 1999. 
395.27     Sec. 20.  [JOBS-PLUS PILOT PROJECT.] 
395.28     Subdivision 1.  [PROJECT AUTHORIZED.] A three-year 
395.29  jobs-plus pilot project administered by the Manpower 
395.30  Demonstration Research Corporation is authorized in Ramsey 
395.31  county.  The commissioner of human services shall cooperate with 
395.32  the St. Paul public housing authority, Ramsey county, the St. 
395.33  Paul workforce development center, and the Manpower 
395.34  Demonstration Research Corporation to develop and implement the 
395.35  project. 
395.36     Subd. 2.  [PROJECT DESCRIPTION.] (a) Jobs-plus shall offer 
396.1   intensive employment-related services and activities to 
396.2   working-age family residents of the Mt. Airy Homes public 
396.3   housing development.  McDonough Homes and Roosevelt Homes public 
396.4   housing developments shall be used as comparison sites.  The 
396.5   project shall incorporate community support for work, work 
396.6   incentives, and best practices in preparing people for sustained 
396.7   employment and in linking residents with jobs. 
396.8      (b) The Mt. Airy community center shall serve as a hub for 
396.9   delivery of pilot project services, delivery of related 
396.10  services, and promotion of community support for work.  The 
396.11  center shall provide space for economic development and 
396.12  supportive services programming and for activities that best 
396.13  respond to diverse resident needs, including expanded child 
396.14  care, computer technology access, employment-related and 
396.15  workforce literacy training, job clubs, job fairs, special 
396.16  workshops, and life skills training. 
396.17     (c) The pilot project shall promote the involvement of Mt. 
396.18  Airy Homes residents in the development and implementation of 
396.19  the pilot project through community meetings, celebrations and 
396.20  recognition events, and the inclusion of resident 
396.21  representatives in planning and implementation activities. 
396.22     (d) The commissioner may authorize work incentives that 
396.23  exceed the incentives provided to participants in the Minnesota 
396.24  family investment program-statewide (MFIP-S). 
396.25     (e) The commissioner of human services, the St. Paul public 
396.26  housing authority, Ramsey county, the St. Paul workforce 
396.27  development center, and the Manpower Development Research 
396.28  Corporation may negotiate changes as necessary in the program 
396.29  outlined in paragraphs (a) to (d) in order to develop an 
396.30  effective jobs-plus project. 
396.31     Subd. 3.  [PROJECT FUNDING.] The commissioner of human 
396.32  services may authorize work incentives that are different from 
396.33  the incentives provided under the MFIP-S program only if 
396.34  nonstate funding is available to defray the additional costs 
396.35  associated with utilizing the different work incentives. 
396.36     Subd. 4.  [RELEASE OF DATA.] Notwithstanding the provisions 
397.1   of Minnesota Statutes, chapter 13, Ramsey county and the 
397.2   relevant state agencies shall, upon request, release to the 
397.3   Manpower Demonstration Research Corporation data on public 
397.4   assistance benefits received, wages earned, and unemployment 
397.5   insurance benefits received by residents of the Mt. Airy Homes, 
397.6   McDonough Homes, and Roosevelt Homes public housing developments 
397.7   in St. Paul during the period from 1992 to 2002 for the purposes 
397.8   of complying with the research and evaluation requirements of 
397.9   the jobs-plus program. 
397.10     Sec. 21.  [INELIGIBILITY FOR STATE FUNDED PROGRAMS.] 
397.11     (a) Beginning July 1, 1999, the following persons will be 
397.12  ineligible for general assistance and general assistance medical 
397.13  care under Minnesota Statutes, chapter 256D, group residential 
397.14  housing under Minnesota Statutes, chapter 256I, and MFIP-S 
397.15  assistance under Minnesota Statutes, chapter 256J, funded with 
397.16  state money: 
397.17     (1) persons who are terminated from or denied Supplemental 
397.18  Security Income due to the 1996 changes in the federal law 
397.19  making persons whose alcohol or drug addiction is a material 
397.20  factor contributing to the person's disability ineligible for 
397.21  Supplemental Security Income, and are eligible for general 
397.22  assistance under Minnesota Statutes, section 256D.05, 
397.23  subdivision 1, paragraph (a), clause (17), general assistance 
397.24  medical care under Minnesota Statutes, chapter 256D, or group 
397.25  residential housing under Minnesota Statutes, chapter 256I; 
397.26     (2) legal noncitizens who are ineligible for Supplemental 
397.27  Security Income due to the 1996 changes in federal law making 
397.28  certain noncitizens ineligible for these programs due to their 
397.29  noncitizen status; and 
397.30     (3) legal noncitizens who are eligible for MFIP-S 
397.31  assistance, either the cash assistance portion or the food 
397.32  assistance portion, funded entirely with state money. 
397.33     <