Minnesota Legislature
SF 1908
1st Unofficial Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am
KEY: stricken = removed, old language.
underscored = added, new language.
1.1 A bill for an act 1.2 relating to the operation of state services; 1.3 appropriating money for the operation of the 1.4 departments of human services and health, the veterans 1.5 home board, the health related boards, the disability 1.6 council, the ombudsman for families, and the ombudsman 1.7 for mental health and mental retardation; changing 1.8 health department provisions; changing long-term care 1.9 facilities provisions; changing health care program 1.10 provisions; changing children's programs; changing 1.11 child support enforcement provisions; continuing care 1.12 for disabled persons; creating a demonstration project 1.13 for persons with disabilities; changing miscellaneous 1.14 provisions; changing marriage provisions; including 1.15 provisions for agency management; children's programs; 1.16 basic health care programs; medical assistance and 1.17 general assistance medical care; long-term care; 1.18 state-operated services; mental health and 1.19 developmentally disabled; child support enforcement; 1.20 assistance to families; health department; imposing 1.21 civil penalties; amending Minnesota Statutes 1996, 1.22 sections 13.46, subdivision 2; 13.99, by adding 1.23 subdivisions; 16A.124, subdivision 4b; 62D.04, 1.24 subdivision 5; 62E.14, by adding a subdivision; 1.25 62N.10, subdivision 4; 103I.101, subdivision 6; 1.26 103I.208; 103I.401, subdivision 1; 144.0721, 1.27 subdivision 3; 144.121, subdivision 1, and by adding 1.28 subdivisions; 144.125; 144.2215; 144.226, subdivision 1.29 1, and by adding a subdivision; 144.394; 144A.071, 1.30 subdivisions 1, 2, and 4a; 144A.073, subdivision 2, 1.31 and by adding a subdivision; 153A.17; 157.16, 1.32 subdivision 3; 245.03, subdivision 2; 245.4882, 1.33 subdivision 5; 245.493, subdivision 1, and by adding a 1.34 subdivision; 245.652, subdivisions 1, 2, and 4; 1.35 246.0135; 246.02, subdivision 2; 252.025, subdivisions 1.36 1, 4, and by adding a subdivision; 252.32, 1.37 subdivisions 1a, 3, 3a, 3c, and 5; 254.04; 254B.02, 1.38 subdivisions 1 and 3; 254B.03, subdivision 1; 254B.09, 1.39 subdivisions 4, 5, and 7; 256.01, subdivision 2, and 1.40 by adding a subdivision; 256.025, subdivisions 1 and 1.41 2; 256.045, subdivisions 3, 3b, 4, 5, 7, and 8; 1.42 256.476, subdivisions 2, 3, 4, and 5; 256.82, by 1.43 adding a subdivision; 256.87, subdivisions 1, 1a, 3, 1.44 5, and by adding a subdivision; 256.9363, subdivision 1.45 7; 256.969, subdivision 1; 256.9695, subdivision 1; 1.46 256.9742; 256.9744, subdivision 2; 256.978, 2.1 subdivisions 1 and 2; 256.9792, subdivisions 1 and 2; 2.2 256.998, subdivisions 1, 6, 7, and by adding 2.3 subdivisions; 256B.037, subdivision 1a; 256B.04, by 2.4 adding a subdivision; 256B.055, subdivision 12; 2.5 256B.056, subdivisions 4 and 5; 256B.057, subdivisions 2.6 1, 1b, and 2; 256B.0625, subdivision 15, and by adding 2.7 a subdivision; 256B.0626; 256B.0627, subdivision 5; 2.8 256B.064, subdivision 2; 256B.0911, subdivision 7; 2.9 256B.0913, subdivisions 7, 10, and 15; 256B.0915, 2.10 subdivision 1b; 256B.0917, subdivisions 7 and 8; 2.11 256B.431, subdivisions 3f, 25, and by adding 2.12 subdivisions; 256B.49, subdivision 1; 256B.69, 2.13 subdivisions 2, 3a, 5, 5b, and 6; 256D.03, 2.14 subdivisions 3 and 3b; 256E.06, by adding a 2.15 subdivision; 256F.04, subdivisions 1 and 2; 256F.05, 2.16 subdivisions 2, 3, 4, and 8; 256F.06, subdivisions 1 2.17 and 2; 256F.11, subdivision 2; 256G.02, subdivision 6; 2.18 256I.05, subdivision 1a, and by adding a subdivision; 2.19 256J.02, by adding a subdivision; 257.62, subdivisions 2.20 1 and 2; 257.66, subdivision 3, and by adding a 2.21 subdivision; 257.70; 257.75, subdivisions 2, 3, 4, 5, 2.22 and 7; 299C.46, subdivision 3; 326.37, subdivision 1; 2.23 393.07, subdivision 2; 466.01, subdivision 1; 469.155, 2.24 subdivision 4; 471.59, subdivision 11; 508.63; 2.25 508A.63; 517.01; 517.03; 517.08, subdivision 1a; 2.26 517.20; 518.005, by adding a subdivision; 518.10; 2.27 518.148, subdivision 2; 518.17, subdivision 1; 2.28 518.171, subdivisions 1 and 4; 518.54, subdivision 6, 2.29 and by adding a subdivision; 518.551, subdivisions 12 2.30 and 13; 518.5512, by adding subdivisions; 518.616, by 2.31 adding a subdivision; 518.68, subdivision 2; 518C.101; 2.32 518C.204; 518C.205; 518C.207; 518C.301; 518C.304; 2.33 518C.305; 518C.310; 518C.401; 518C.501; 518C.603; 2.34 518C.605; 518C.608; 518C.611; 518C.612; 518C.701; 2.35 548.091, subdivisions 1a, 2a, 3a, and by adding 2.36 subdivisions; 550.37, subdivision 24; 626.556, 2.37 subdivisions 10b, 10d, 10e, 10f, 11c, and by adding a 2.38 subdivision; 626.558, subdivisions 1 and 2; and 2.39 626.559, subdivision 5; Laws 1995, chapter 207, 2.40 article 8, section 41, subdivision 2; and Laws 1997, 2.41 chapter 7, article 1, section 75; proposing coding for 2.42 new law in Minnesota Statutes, chapters 13B; 62J; 144; 2.43 145A; 157; 181; 256; 256B; 257; 518; and 518C; 2.44 proposing coding for new law as Minnesota Statutes, 2.45 chapters 256J and 552; repealing Minnesota Statutes 2.46 1996, sections 252.32, subdivision 4; 256.026; 256.74; 2.47 256.979, subdivision 9; 256B.0625, subdivision 13b; 2.48 256B.501, subdivision 5c; 256F.05, subdivisions 5 and 2.49 7; 518.5511, subdivisions 5, 6, 7, 8, and 9; 518.611; 2.50 518.613; 518.645; 518C.502; 518C.9011; and 609.375, 2.51 subdivisions 3, 4, and 6. 2.52 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.53 ARTICLE 1 2.54 APPROPRIATIONS 2.55 Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 2.56 The sums shown in the columns marked "APPROPRIATIONS" are 2.57 appropriated from the general fund, or any other fund named, to 2.58 the agencies and for the purposes specified in the following 2.59 sections of this article, to be available for the fiscal years 2.60 indicated for each purpose. The figures "1998" and "1999" where 2.61 used in this article, mean that the appropriation or 3.1 appropriations listed under them are available for the fiscal 3.2 year ending June 30, 1998, or June 30, 1999, respectively. 3.3 Where a dollar amount appears in parentheses, it means a 3.4 reduction of an appropriation. 3.5 SUMMARY BY FUND 3.6 APPROPRIATIONS BIENNIAL 3.7 1998 1999 TOTAL 3.8 General $2,549,029,000 $2,738,314,000 $5,287,343,000 3.9 Health Care 3.10 Access -0- -0- -0- 3.11 State Government 3.12 Special Revenue 32,412,000 34,251,000 66,663,000 3.13 Metropolitan 3.14 Landfill Contingency 3.15 Action Fund 193,000 193,000 386,000 3.16 Minnesota Resources 150,000 -0- 150,000 3.17 Trunk Highway 1,652,000 1,678,000 3,300,000 3.18 TOTAL 2,583,436,000 2,774,436,000 5,357,872,000 3.19 APPROPRIATIONS 3.20 Available for the Year 3.21 Ending June 30 3.22 1998 1999 3.23 Sec. 2. COMMISSIONER OF 3.24 HUMAN SERVICES 3.25 Subdivision 1. Total 3.26 Appropriation 2,466,382,000 2,654,862,000 3.27 Summary by Fund 3.28 General 2,465,929,000 2,654,400,000 3.29 Health Care 3.30 Access -0- -0- 3.31 State Government 3.32 Special Revenue 453,000 462,000 3.33 Subd. 2. Agency Management 3.34 General 25,711,000 25,131,000 3.35 Health Care 3.36 Access -0- -0- 3.37 State Government 3.38 Special Revenue 342,000 350,000 3.39 The amounts that may be spent from the 3.40 appropriation for each purpose are as 3.41 follows: 3.42 (a) Financial Operations 3.43 General 8,073,000 7,255,000 3.44 Health Care 4.1 Access -0- -0- 4.2 [RECEIPTS FOR SYSTEMS PROJECTS.] 4.3 Appropriations and federal receipts for 4.4 information system projects for MAXIS, 4.5 electronic benefit system, social 4.6 services information system, child 4.7 support enforcement, and Minnesota 4.8 medicaid information system (MMIS II) 4.9 must be deposited in the state system 4.10 account authorized in Minnesota 4.11 Statutes, section 256.014. Money 4.12 appropriated for computer projects 4.13 approved by the information policy 4.14 office, funded by the legislature, and 4.15 approved by the commissioner of finance 4.16 may be transferred from one project to 4.17 another and from development to 4.18 operations as the commissioner of human 4.19 services considers necessary. Any 4.20 unexpended balance in the appropriation 4.21 for these projects does not cancel but 4.22 is available for ongoing development 4.23 and operations. 4.24 (b) Legal & Regulation Operations 4.25 General 6,158,000 6,146,000 4.26 Health Care 4.27 Access -0- -0- 4.28 State Government 4.29 Special Revenue 342,000 350,000 4.30 [CHILD CARE LICENSING; FIRE MARSHALL 4.31 ASSISTANCE.] Of this amount, $200,000 4.32 for the biennium is for the 4.33 commissioner to add two deputy state 4.34 fire marshall positions in the 4.35 licensing division. These positions 4.36 are to improve the speed of licensing 4.37 child care programs, to provide 4.38 technical assistance to applicants and 4.39 providers regarding fire safety, and to 4.40 improve communication between licensing 4.41 staff and fire officials. The state 4.42 fire marshall shall train and supervise 4.43 the positions. The state fire marshall 4.44 and the department shall develop an 4.45 interagency agreement outlining the 4.46 responsibilities and authorities for 4.47 these positions, and continuation of 4.48 cooperation to inspect programs that 4.49 exceed the resources of these two 4.50 positions. Unexpended funds for fiscal 4.51 year 1998 do not cancel but are 4.52 available to the commissioner for these 4.53 purposes for fiscal year 1999. 4.54 (c) Management Operations 4.55 General 11,480,000 11,730,000 4.56 Health Care 4.57 Access -0- -0- 4.58 [COMMUNICATION COSTS.] The commissioner 4.59 shall continue to operate the 4.60 department of human services 4.61 communication systems account 5.1 established in Laws 1993, First Special 5.2 Session chapter 1, article 1, section 5.3 2, subdivision 2, to manage shared 5.4 communication costs necessary for the 5.5 operation of the programs the 5.6 commissioner supervises. A 5.7 communications account may also be 5.8 established for each regional treatment 5.9 center which operates communication 5.10 systems. Each account shall be used to 5.11 manage shared communication costs 5.12 necessary for the operation of programs 5.13 the commissioner supervises. The 5.14 commissioner may distribute the costs 5.15 of operating and maintaining 5.16 communication systems to participants 5.17 in a manner that reflects actual 5.18 usage. Costs may include acquisition, 5.19 licensing, insurance, maintenance, 5.20 repair, staff time, and other costs as 5.21 determined by the commissioner. 5.22 Nonprofit organizations and state, 5.23 county, and local government agencies 5.24 involved in the operation of programs 5.25 the commissioner supervises may 5.26 participate in the use of the 5.27 department's communication technology 5.28 and share in the cost of operation. 5.29 The commissioner may accept on behalf 5.30 of the state any gift, bequest, devise, 5.31 or personal property of any kind, or 5.32 money tendered to the state for any 5.33 lawful purpose pertaining to the 5.34 communication activities of the 5.35 department. Any money received for 5.36 this purpose must be deposited in the 5.37 department of human services 5.38 communication systems accounts. Money 5.39 collected by the commissioner for the 5.40 use of communication systems must be 5.41 deposited in the state communication 5.42 systems account and is appropriated to 5.43 the commissioner for purposes of this 5.44 section. 5.45 [ISSUANCE OPERATIONS CENTER.] Payments 5.46 to the commissioner from other 5.47 governmental units and private 5.48 enterprises for (1) services performed 5.49 by the issuance operations center, or 5.50 (2) reports generated by the payment 5.51 and eligibility systems must be 5.52 deposited in the state systems account 5.53 authorized in Minnesota Statutes, 5.54 section 256.014. These payments are 5.55 appropriated to the commissioner for 5.56 the operation of the issuance center or 5.57 system, in accordance with Minnesota 5.58 Statutes, section 256.014. 5.59 Subd. 3. Children's Grants 5.60 General 38,027,000 40,527,000 5.61 [GRANT TO PROMOTE COMPLIANCE WITH 5.62 INDIAN CHILD WELFARE ACT.] Of this 5.63 appropriation, $90,000 each year is for 5.64 the commissioner to provide grants 5.65 according to Minnesota Statutes, 5.66 section 257.3571, subdivision 2a, to 5.67 the Indian child welfare defense 6.1 corporation to promote statewide 6.2 compliance with the Indian Child 6.3 Welfare Act. 6.4 [CHILDREN'S MENTAL HEALTH.] Of this 6.5 appropriation, $500,000 in fiscal year 6.6 1998 and $1,000,000 in fiscal year 1999 6.7 is for the commissioner to award grants 6.8 to counties for children's mental 6.9 health services. These grants may be 6.10 used to provide any of the following 6.11 services specified in Minnesota 6.12 Statutes, section 245.4871; family 6.13 community support services under 6.14 subdivision 17; day treatment services 6.15 under subdivision 10; case management 6.16 services under subdivision 3; 6.17 professional home-based family 6.18 treatment under subdivision 31; and 6.19 outpatient services under subdivision 6.20 29. Grant funds must be used to 6.21 provide services according to an 6.22 individual family community support 6.23 plan under Minnesota Statutes, section 6.24 245.4882, subdivision 4, that must be 6.25 developed using a process that respects 6.26 the consumer's identified cultural 6.27 community and enhances consumer 6.28 empowerment. 6.29 In awarding these grants to counties, 6.30 the commissioner shall work with the 6.31 state advisory council on mental health 6.32 to ensure that the process for awarding 6.33 funds addresses the unmet need for 6.34 services under Minnesota Statutes, 6.35 sections 245.487 to 245.4888. The 6.36 commissioner shall also ensure that 6.37 these grant funds are not used to 6.38 replace existing funds, and that these 6.39 grant funds are used to enhance service 6.40 capacity at the community level 6.41 consistent with Minnesota Statutes, 6.42 sections 245.487 to 245.4888. 6.43 Subd. 4. Children's Services Management 6.44 General 3,161,000 3,192,000 6.45 Subd. 5. Basic Health Care Grants 6.46 Summary by Fund 6.47 General 819,924,000 938,440,000 6.48 Health Care 6.49 Access -0- -0- 6.50 The amounts that may be spent from this 6.51 appropriation for each purpose are as 6.52 follows: 6.53 (a) Minnesota Care Grants 6.54 Health Care 6.55 Access -0- -0- 6.56 (b) MA Basic Health Care Grants- 6.57 Families and Children 6.58 General 315,298,000 365,302,000 7.1 (c) MA Basic Health Care Grants- 7.2 Elderly & Disabled 7.3 General 335,659,000 404,346,000 7.4 [PUBLIC HEALTH NURSE ASSESSMENT.] The 7.5 reimbursement for public health nurse 7.6 visits relating to the provision of 7.7 personal care services under Minnesota 7.8 Statutes, sections 256B.0625, 7.9 subdivision 19a, and 256B.0627, is 7.10 $204.36 for the initial assessment 7.11 visit and $102.18 for each reassessment 7.12 visit. 7.13 [SURCHARGE COMPLIANCE.] In the event 7.14 that federal financial participation in 7.15 the Minnesota medical assistance 7.16 program is reduced as a result of a 7.17 determination that Minnesota is out of 7.18 compliance with Public Law Number 7.19 102-234 or its implementing regulations 7.20 or with any other federal law designed 7.21 to restrict provider tax programs or 7.22 intergovernmental transfers, the 7.23 commissioner shall appeal the 7.24 determination to the fullest extent 7.25 permitted by law and may ratably reduce 7.26 all medical assistance and general 7.27 assistance medical care payments to 7.28 providers other than the state of 7.29 Minnesota in order to eliminate any 7.30 shortfall resulting from the reduced 7.31 federal funding. Any amount later 7.32 recovered through the appeals process 7.33 shall be used to reimburse providers 7.34 for any ratable reductions taken. 7.35 (d) General Assistance Medical Care 7.36 General 168,967,000 168,792,000 7.37 Health Care 7.38 Access -0- -0- 7.39 [GAMC AND HEALTH CARE ACCESS FUND.] The 7.40 appropriation from the health care 7.41 access fund for fiscal year 1998 shall 7.42 be used for general assistance medical 7.43 care expenditures for: (1) adults with 7.44 dependent children under 21 whose gross 7.45 family income is equal to or less than 7.46 275 percent of the federal poverty 7.47 guidelines; and (2) adults without 7.48 children with earned income and whose 7.49 family gross income is between 75 7.50 percent of the federal poverty 7.51 guidelines and the amount set by 7.52 Minnesota Statutes, section 256.9354, 7.53 subdivision 5. 7.54 [TUBERCULOSIS COST OF CARE.] Of the 7.55 general fund appropriation, $89,000 for 7.56 the biennium is for the cost of care 7.57 that is required to be paid by the 7.58 commissioner under Minnesota Statutes, 7.59 section 144.4872, to diagnose or treat 7.60 tuberculosis carriers. 7.61 Subd. 6. Basic Health Care Management 8.1 General 23,977,000 24,583,000 8.2 Health Care 8.3 Access -0- -0- 8.4 [CONSUMER-OWNED HOUSING REVOLVING 8.5 ACCOUNT.] Effective the day following 8.6 final enactment, for the fiscal year 8.7 ending June 30, 1997, the commissioner 8.8 of human services may transfer $25,000 8.9 of the appropriation for basic health 8.10 care management to the commissioner of 8.11 the Minnesota housing finance agency to 8.12 establish an account to finance the 8.13 underwriting requirements of the 8.14 federal national mortgage association 8.15 pilot program for persons with 8.16 disabilities. Any unexpended balance 8.17 in this account does not cancel, but is 8.18 available to the commissioner of the 8.19 Minnesota housing finance agency for 8.20 the ongoing purposes of the account. 8.21 (a) Health Care Policy Administration 8.22 General 4,281,000 4,316,000 8.23 Health Care 8.24 Access -0- -0- 8.25 [CONSUMER SATISFACTION SURVEY.] Any 8.26 federal matching money received through 8.27 the medical assistance program for the 8.28 consumer satisfaction survey is 8.29 appropriated to the commissioner for 8.30 this purpose. The commissioner may 8.31 expend the federal money received for 8.32 the consumer satisfaction survey in 8.33 either year of the biennium. 8.34 (b) Health Care Operations 8.35 General 19,696,000 20,267,000 8.36 Health Care 8.37 Access -0- -0- 8.38 [PREPAID MEDICAL PROGRAMS.] The 8.39 nonfederal share of the prepaid medical 8.40 assistance program funds, which are 8.41 appropriated to fund county managed 8.42 care advocacy and enrollment operating 8.43 costs, shall be disbursed as grants 8.44 using either a reimbursement or block 8.45 grant mechanism. This appropriation may 8.46 also be transferred between grants and 8.47 a nongrant mechanism, and between 8.48 grants and nongrant administration 8.49 costs, with the approval of the 8.50 commissioner of finance. 8.51 [SYSTEMS CONTINUITY.] In the event of 8.52 disruption of technical systems or 8.53 computer operations, the commissioner 8.54 of human services may use available 8.55 grant appropriations to ensure 8.56 continuity of payments for maintaining 8.57 the health, safety, and well-being of 8.58 clients served by programs administered 8.59 by the department of human services. 8.60 Grant funds must be used in a manner 9.1 consistent with the original intent of 9.2 the appropriation. 9.3 Subd. 7. State-Operated Services 9.4 General 208,471,000 205,106,000 9.5 The amounts that may be spent from this 9.6 appropriation for each purpose are as 9.7 follows: 9.8 (a) RTC Facilities 9.9 General 193,738,000 189,050,000 9.10 [MITIGATION RELATED TO DD DOWNSIZING 9.11 AND MH PILOTS.] Money appropriated to 9.12 finance mitigation expenses related to 9.13 the downsizing of regional treatment 9.14 center developmental disabilities 9.15 programs and the establishment of 9.16 mental health pilot projects may be 9.17 transferred between fiscal years within 9.18 the biennium. 9.19 [FUNDING FOR GRAVE MARKERS.] Of this 9.20 appropriation, $200,000 for the 9.21 biennium ending June 30, 1999, is for 9.22 the commissioner to fund markers with 9.23 the names of individuals whose graves 9.24 are located at regional treatment 9.25 centers. This appropriation is 9.26 available only after all reasonable 9.27 efforts have been made to acquire funds 9.28 from private sources to fund the 9.29 markers, and after the private funds 9.30 collected, if any, have been exhausted. 9.31 [RTC CHEMICAL DEPENDENCY PROGRAMS.] 9.32 When the operations of the regional 9.33 treatment center chemical dependency 9.34 fund created in Minnesota Statutes, 9.35 section 246.18, subdivision 2, are 9.36 impeded by projected cash deficiencies 9.37 resulting from delays in the receipt of 9.38 grants, dedicated income, or other 9.39 similar receivables, and when the 9.40 deficiencies would be corrected within 9.41 the budget period involved, the 9.42 commissioner of finance may transfer 9.43 general fund cash reserves into this 9.44 account as necessary to meet cash 9.45 demands. The cash flow transfers must 9.46 be returned to the general fund in the 9.47 fiscal year that the transfer was 9.48 made. Any interest earned on general 9.49 fund cash flow transfers accrues to the 9.50 general fund and not the regional 9.51 treatment center chemical dependency 9.52 fund. 9.53 [RTC PILOT PROJECT.] The commissioner 9.54 may authorize the regional treatment 9.55 centers to enter into contracts with 9.56 health plans that provide services to 9.57 publicly funded clients to provide 9.58 services within the diagnostic 9.59 categories related to mental illness 9.60 and chemical dependency, provided that 9.61 the revenue is sufficient to cover 9.62 actual costs. Regional treatment 10.1 centers may establish revenue-based 10.2 acute care services to be provided 10.3 under these contracts, separate from 10.4 the appropriation-based services 10.5 otherwise provided at the regional 10.6 treatment center. The appropriation to 10.7 the regional treatment centers may be 10.8 used to cover start-up costs related to 10.9 these services, offset by revenue. The 10.10 commissioner, in conjunction with the 10.11 commissioner of administration, is 10.12 authorized to modify state contract 10.13 procedures that would otherwise impede 10.14 pilot projects in order for the 10.15 facility to participate in managed care 10.16 activities. The commissioner may 10.17 delegate the execution of these 10.18 contracts to the chief executive 10.19 officer of the regional treatment 10.20 center. The commissioner shall report 10.21 by January 15, 1998, to the house 10.22 health and human services and senate 10.23 health and family security committees 10.24 on pilot project development and 10.25 implementation. 10.26 [CAMBRIDGE REGIONAL HUMAN SERVICES 10.27 CENTER.] (a) The commissioner shall 10.28 maintain capacity at Cambridge regional 10.29 human services center and shall 10.30 continue to provide residential and 10.31 crisis services at Cambridge for 10.32 persons with complex behavioral and 10.33 social problems committed by the courts 10.34 from the Faribault regional center and 10.35 Cambridge regional human services 10.36 center catchment areas. Campus 10.37 programs shall operate with the aim of 10.38 facilitating the return of individuals 10.39 with clinically complex behavior and 10.40 social problems to community settings 10.41 and shall maintain sufficient support 10.42 services on campus as needed by the 10.43 programs. 10.44 (b) The commissioner shall develop and 10.45 present a plan and recommendations to 10.46 the legislature by January 15, 1998, 10.47 for the second phase of the Minnesota 10.48 extended treatment options (METO) 10.49 program at Cambridge regional human 10.50 services center to serve persons with 10.51 developmental disabilities who pose a 10.52 public risk. Phase two may increase 10.53 the on-campus program capacity of METO 10.54 by at least 36 additional beds. 10.55 [RTC RESTRUCTURING.] For purposes of 10.56 restructuring the regional treatment 10.57 centers and state nursing homes, any 10.58 regional treatment center or state 10.59 nursing home employee whose position is 10.60 to be eliminated shall be afforded the 10.61 options provided in applicable 10.62 collective bargaining agreements. All 10.63 salary and mitigation allocations from 10.64 fiscal year 1998 shall be carried 10.65 forward into fiscal year 1999. 10.66 Provided there is no conflict with any 10.67 collective bargaining agreement, any 10.68 regional treatment center or state 11.1 nursing home position reduction must 11.2 only be accomplished through 11.3 mitigation, attrition, transfer, and 11.4 other measures as provided in state or 11.5 applicable collective bargaining 11.6 agreements and in Minnesota Statutes, 11.7 section 252.50, subdivision 11, and not 11.8 through layoff. 11.9 [RTC POPULATION.] If the resident 11.10 population at the regional treatment 11.11 centers is projected to be higher than 11.12 the estimates upon which the medical 11.13 assistance forecast and budget 11.14 recommendations for the 1998-1999 11.15 biennium were based, the amount of the 11.16 medical assistance appropriation that 11.17 is attributable to the cost of services 11.18 that would have been provided as an 11.19 alternative to regional treatment 11.20 center services, including resources 11.21 for community placements and waivered 11.22 services for persons with mental 11.23 retardation and related conditions, is 11.24 transferred to the residential 11.25 facilities appropriation. 11.26 [REPAIRS AND BETTERMENTS.] The 11.27 commissioner may transfer unencumbered 11.28 appropriation balances between fiscal 11.29 years for the state residential 11.30 facilities repairs and betterments 11.31 account and special equipment. 11.32 [PROJECT LABOR.] Wages for project 11.33 labor may be paid by the commissioner 11.34 of human services out of repairs and 11.35 betterments money if the individual is 11.36 to be engaged in a construction project 11.37 or a repair project of short-term and 11.38 nonrecurring nature. Compensation for 11.39 project labor shall be based on the 11.40 prevailing wage rates, as defined in 11.41 Minnesota Statutes, section 177.42, 11.42 subdivision 6. Project laborers are 11.43 excluded from the provisions of 11.44 Minnesota Statutes, sections 43A.22 to 11.45 43A.30, and shall not be eligible for 11.46 state-paid insurance and benefits. 11.47 (b) State-Operated Community 11.48 Services - MI Adults 11.49 General 3,907,000 3,976,000 11.50 (c) State-Operated Community 11.51 Services - DD 11.52 General 10,826,000 12,080,000 11.53 Subd. 8. Continuing Care and 11.54 Community Support Grants 11.55 General 1,078,205,000 1,152,992,000 11.56 The amounts that may be spent from this 11.57 appropriation for each purpose are as 11.58 follows: 11.59 (a) Community Services Block Grants 12.1 54,203,000 54,203,000 12.2 [CSSA TRADITIONAL APPROPRIATION.] 12.3 Notwithstanding Minnesota Statutes, 12.4 section 256E.06, subdivisions 1 and 2, 12.5 the appropriations available under that 12.6 section in fiscal years 1998 and 1999 12.7 must be distributed to each county 12.8 proportionately to the aid received by 12.9 the county in calendar year 1996. The 12.10 commissioner, in consultation with 12.11 counties, shall study the formula 12.12 limitations in subdivision 2 of that 12.13 section, and report findings and any 12.14 recommendations for revision of the 12.15 CSSA formula and its formula limitation 12.16 provisions to the legislature by 12.17 January 15, 1998. 12.18 (b) Consumer Support Grants 12.19 1,757,000 1,757,000 12.20 (c) Aging Adult Service Grants 12.21 8,260,000 8,263,000 12.22 [OMBUDSMAN FOR OLDER MINNESOTANS.] Of 12.23 this appropriation, $225,000 each year 12.24 is for the board on aging's ombudsman 12.25 for older Minnesotans to expand its 12.26 activities relating to home care 12.27 services and other non-institutional 12.28 services, and to develop and implement 12.29 a continuing education program for 12.30 ombudsman volunteers. 12.31 [HEALTH CARE CONSUMER ASSISTANCE 12.32 GRANTS.] (a) Of this appropriation, 12.33 $125,000 in fiscal year 1998 and 12.34 $125,000 in fiscal year 1999 is to the 12.35 commissioner for the board on aging to 12.36 award grants for health insurance 12.37 counseling and assistance to the area 12.38 agencies on aging. 12.39 (b) The board shall explore 12.40 opportunities for obtaining alternative 12.41 funding from nonstate sources, 12.42 including contributions from 12.43 individuals seeking health insurance 12.44 counseling services. 12.45 [LIVING-AT-HOME/BLOCK NURSE PROGRAMS.] 12.46 Of this appropriation, $620,000 each 12.47 fiscal year is for the commissioner to 12.48 provide funding to 31 additional 12.49 living-at-home/block nurse programs; 12.50 $70,000 for the biennium is for the 12.51 commissioner to increase funding for 12.52 certain living-at-home/block nurse 12.53 programs so that funding for all 12.54 programs is at the same level for each 12.55 fiscal year; and $60,000 each fiscal 12.56 year is for the commissioner to provide 12.57 additional contract funding for the 12.58 organization awarded the contract for 12.59 the living-at-home/block nurse program. 12.60 [COUNTY MAINTENANCE; MEALS; AGING.] The 12.61 supplemental funding for nutrition 13.1 programs serving counties where 13.2 congregate and home-delivered meals 13.3 were locally financed prior to 13.4 participation in the nutrition program 13.5 of the Older Americans Act shall be 13.6 awarded at no less than the same levels 13.7 as in fiscal year 1997. 13.8 (d) Deaf and Hard-of-Hearing 13.9 Services Grants 13.10 1,599,000 1,549,000 13.11 [ASSISTANCE DOGS.] Of this 13.12 appropriation, $50,000 for the biennium 13.13 is for the commissioner to provide 13.14 grants to Minnesota nonprofit 13.15 organizations that train or provide 13.16 assistance dogs for persons with 13.17 disabilities. 13.18 [GRANT FOR SERVICES TO DEAF-BLIND 13.19 CHILDREN AND PERSONS.] Of this 13.20 appropriation, $200,000 for the 13.21 biennium is for a grant to an 13.22 organization that provides services to 13.23 deaf-blind persons. The grant must be 13.24 used to provide additional services to 13.25 deaf-blind children and their 13.26 families. Such services may include 13.27 providing intervenors to assist 13.28 deaf-blind children in participating in 13.29 their communities, and family education 13.30 specialists to teach siblings and 13.31 parents skills to support the 13.32 deaf-blind child in the family. The 13.33 commissioner shall use a 13.34 request-for-proposal process to award 13.35 the grants in this paragraph. 13.36 Of this appropriation, $200,000 for the 13.37 biennium is for a grant to an 13.38 organization that provides services to 13.39 deaf-blind persons. The grant must be 13.40 used to provide assistance to 13.41 deaf-blind persons who are working 13.42 towards establishing and maintaining 13.43 independence. The commissioner shall 13.44 use a request-for-proposal process to 13.45 award the grants in this paragraph. 13.46 [GRANT FOR SERVICES TO DEAF PERSONS 13.47 WITH MENTAL ILLNESS.] Of this 13.48 appropriation, $75,000 each year is for 13.49 a grant to a nonprofit agency that 13.50 serves deaf and hard-of-hearing adults 13.51 with mental illness through residential 13.52 programs and supported housing outreach 13.53 activities. The grant must be used to 13.54 expand community support services for 13.55 deaf and hard-of-hearing adults with 13.56 mental illness who use or wish to use 13.57 sign language as their primary means of 13.58 communication. 13.59 [ASSESSMENTS FOR DEAF, HARD-OF-HEARING 13.60 AND DEAF-BLIND CHILDREN.] Of this 13.61 appropriation, $200,000 each year is 13.62 for the commissioner to establish a 13.63 grant program for deaf, hard-of-hearing 13.64 and deaf-blind children in the state. 14.1 The grant program shall be used to 14.2 provide specialized statewide 14.3 psychological and social assessments, 14.4 family assessments, and school and 14.5 family consultation and training. 14.6 Services provided through this program 14.7 must be provided in cooperation with 14.8 the Minnesota resource center; the 14.9 department of children, families, and 14.10 learning; the St. Paul-Ramsey health 14.11 and wellness program serving deaf and 14.12 hard-of-hearing people; and greater 14.13 Minnesota community mental health 14.14 centers. 14.15 (e) Mental Health Grants 14.16 47,603,000 48,681,000 14.17 [ADOLESCENT COMPULSIVE GAMBLING GRANT.] 14.18 $125,000 for fiscal year 1998 and 14.19 $125,000 for fiscal year 1999 shall be 14.20 transferred by the director of the 14.21 lottery from the lottery prize fund 14.22 created under Minnesota Statutes, 14.23 section 349A.10, subdivision 2, to the 14.24 general fund. $125,000 for fiscal year 14.25 1998 and $125,000 for fiscal year 1999 14.26 is appropriated from the general fund 14.27 to the commissioner for the purposes of 14.28 a grant to a compulsive gambling 14.29 council located in St. Louis county for 14.30 a statewide compulsive gambling 14.31 prevention and education project for 14.32 adolescents. 14.33 [WOMEN'S MENTAL HEALTH CRISIS SERVICES 14.34 PILOT.] Of this appropriation, $250,000 14.35 in fiscal year 1998 is for the 14.36 commissioner to develop a one-year 14.37 pilot project community-based crisis 14.38 center for women who are experiencing a 14.39 mental health crisis as a result of 14.40 childhood physical or sexual abuse. 14.41 The commissioner shall provide a grant 14.42 to Hennepin county to contract with a 14.43 four-bed adult foster care facility to 14.44 provide these services. The 14.45 commissioner shall apply to the federal 14.46 health care financing administration 14.47 for all necessary waivers of the 14.48 medical assistance requirements for 14.49 funding of the mental health services 14.50 so that the services provided through 14.51 the pilot project may be reimbursed by 14.52 medical assistance, effective July 1, 14.53 1998, or upon receipt of federal 14.54 approval, whichever occurs first. 14.55 (f) Developmental Disabilities 14.56 Support Grants 14.57 6,278,000 6,228,000 14.58 [EPILEPSY LIVING SKILLS.] Of this 14.59 appropriation, $60,000 each year is for 14.60 the purposes of providing increased 14.61 funding for the living skills training 14.62 program for persons with intractable 14.63 epilepsy who need assistance in the 14.64 transition to independent living. This 15.1 amount must be included in the base 15.2 amount for this program. 15.3 (g) Medical Assistance Long-Term 15.4 Care Waivers and Home Care 15.5 237,254,000 273,979,000 15.6 [COUNTY WAIVERED SERVICES RESERVE.] 15.7 Notwithstanding the provisions of 15.8 Minnesota Statutes, section 256B.092, 15.9 subdivision 4, and Minnesota Rules, 15.10 part 9525.1830, subpart 2, the 15.11 commissioner may approve written 15.12 procedures and criteria for the 15.13 allocation of home- and community-based 15.14 waivered services funding for persons 15.15 with mental retardation or related 15.16 conditions which enables a county to 15.17 maintain a reserve resource account. 15.18 The reserve resource account may not 15.19 exceed five percent of the county 15.20 agency's total annual allocation of 15.21 home- and community-based waivered 15.22 services funds. The reserve may be 15.23 utilized to ensure the county's ability 15.24 to meet the changing needs of current 15.25 recipients, to ensure the health and 15.26 safety needs of current recipients, or 15.27 to provide short-term emergency 15.28 intervention care to eligible waiver 15.29 recipients. 15.30 (h) Medical Assistance Long-Term 15.31 Care Facilities 15.32 570,518,000 593,797,000 15.33 [ICF/MR AND NURSING FACILITY 15.34 INFLATION.] The commissioner of human 15.35 services shall grant inflation 15.36 adjustments for nursing facilities with 15.37 rate years beginning during the 15.38 biennium according to Minnesota 15.39 Statutes, section 256B.431, and shall 15.40 grant inflation adjustments for 15.41 intermediate care facilities for 15.42 persons with mental retardation or 15.43 related conditions with rate years 15.44 beginning during the biennium according 15.45 to Minnesota Statutes, section 256B.501. 15.46 [ICF/MR RATE EXEMPTIONS.] For the rate 15.47 year beginning October 1, 1997, the 15.48 commissioner shall exempt ICF/MR 15.49 facilities from reductions to the 15.50 payment rates under Minnesota Statutes, 15.51 section 256B.501, subdivision 5b, 15.52 paragraph (d), clause (6), if the 15.53 facility: (1) has had a settle-up 15.54 payment rate established in the 15.55 reporting year preceding the rate year 15.56 for a one-time rate adjustment; (2) is 15.57 a newly established facility; (3) is an 15.58 A to B conversion project under the 15.59 payment rule; (4) has a payment rate 15.60 subject to a community conversion 15.61 project under Minnesota Statutes, 15.62 section 252.292; (5) has a payment rate 15.63 established under Minnesota Statutes, 15.64 section 245A.12 or 245A.13; or (6) is a 16.1 facility created by the relocation of 16.2 more than 25 percent of the capacity of 16.3 a related facility during the reporting 16.4 year. 16.5 (i) Alternative Care Grants 16.6 General 48,610,000 53,623,000 16.7 [PREADMISSION SCREENING TRANSFER.] 16.8 Effective the day following final 16.9 enactment, up to $40,000 of the 16.10 appropriation for preadmission 16.11 screening and alternative care for 16.12 fiscal year 1997 may be transferred to 16.13 the health care administration account 16.14 to pay the state's share of county 16.15 claims for conducting nursing home 16.16 assessments for persons with mental 16.17 illness or mental retardation as 16.18 required by Public Law Number 100-203. 16.19 [ALTERNATIVE CARE TRANSFER.] Any money 16.20 allocated to the alternative care 16.21 program that is not spent for the 16.22 purposes indicated does not cancel but 16.23 shall be transferred to the medical 16.24 assistance account. 16.25 [PREADMISSION SCREENING AMOUNT.] The 16.26 preadmission screening payment to all 16.27 counties shall continue at the payment 16.28 amount in effect for fiscal year 1997. 16.29 [PAS/AC APPROPRIATION.] The 16.30 commissioner may expend the money 16.31 appropriated for preadmission screening 16.32 and the alternative care program for 16.33 these purposes in either year of the 16.34 biennium. 16.35 (j) Group Residential Housing 16.36 General 62,115,000 69,276,000 16.37 (k) Chemical Dependency 16.38 Entitlement Grants 16.39 General 35,643,000 37,271,000 16.40 [CHEMICAL DEPENDENCY FUNDS TRANSFER.] 16.41 $11,340,000 from the consolidated 16.42 chemical dependency general reserve 16.43 fund available in fiscal year 1998 is 16.44 transferred to the general fund. 16.45 (l) Chemical Dependency 16.46 Nonentitlement Grants 16.47 General 4,365,000 4,365,000 16.48 [DETOXIFICATION TRANSPORTATION.] Any 16.49 amounts remaining after detoxification 16.50 transportation funds are allocated for 16.51 fiscal year 1997 under Minnesota 16.52 Statutes, section 254A.17, subdivision 16.53 3, do not cancel, but must be 16.54 reallocated to counties in proportion 16.55 to their unmet need. This provision is 16.56 effective the day following final 16.57 enactment. 17.1 Subd. 9. Continuing Care and 17.2 Community Support Management 17.3 General 20,855,000 21,654,000 17.4 State Government 17.5 Special Revenue 111,000 112,000 17.6 [QUALITY ASSURANCE PILOT PROJECT.] (a) 17.7 Of this appropriation, $114,200 each 17.8 year is for the commissioner to 17.9 transfer to the quality assurance 17.10 commission for the purposes of 17.11 Minnesota Statutes, section 256B.0951; 17.12 $10,000 each year is for the 17.13 commissioner to contract with an 17.14 independent entity to conduct a 17.15 financial review under Minnesota 17.16 Statutes, section 256B.0955, paragraph 17.17 (e); and $5,000 each year is for the 17.18 commissioner to establish and implement 17.19 an ongoing evaluation process under 17.20 Minnesota Statutes, section 256B.0955, 17.21 paragraph (d). 17.22 (b) Of this appropriation, $210,800 in 17.23 fiscal year 1998 and $241,800 in fiscal 17.24 year 1999 is for the commissioner to 17.25 provide grants to counties 17.26 participating in the alternative 17.27 quality assurance licensing system 17.28 under Minnesota Statutes, section 17.29 256B.0953. This appropriation shall be 17.30 transferred to the counties that choose 17.31 by January 15, 1998 to participate in 17.32 the alternative licensing system 17.33 beginning July 1, 1998. Each 17.34 participating county shall receive a 17.35 pro rata share of this appropriation, 17.36 based upon the county's calendar year 17.37 1997 case management caseload for 17.38 persons with developmental disabilities. 17.39 [JOINT-PURCHASER DEMO PROJECT 17.40 START-UP.] Of this appropriation, 17.41 $80,000 for the biennium ending June 17.42 30, 1999, is for a grant to the Goodhue 17.43 and Wabasha public health board to be 17.44 used for the development and start-up 17.45 operational costs for a joint purchaser 17.46 demonstration project described in Laws 17.47 1995, chapter 207, article 6, section 17.48 119, in Goodhue and Wabasha counties. 17.49 This is a one-time appropriation and 17.50 shall not become part of the base for 17.51 the 2000-2001 biennial budget. 17.52 [PILOT PROJECT FOR ASSISTED LIVING 17.53 SERVICES FOR SENIOR CITIZENS IN PUBLIC 17.54 HOUSING.] Of this appropriation, 17.55 $50,000 in fiscal year 1998 is for a 17.56 pilot project to provide assisted 17.57 living services for unserved and 17.58 underserved frail elderly and disabled 17.59 persons with a focus on those who 17.60 experience language and cultural 17.61 barriers. The project shall be 17.62 designed to offer frail elderly persons 17.63 an opportunity to receive 17.64 community-based support services in a 17.65 public housing setting to enable them 18.1 to remain in their homes. The project 18.2 shall also serve younger disabled 18.3 persons on waiver programs who live in 18.4 public housing and would otherwise be 18.5 in nursing homes. The commissioner 18.6 shall provide pilot project funding to 18.7 Hennepin county to contract with the 18.8 Korean service center at the Cedars 18.9 high-rises. The center shall agree to 18.10 do the following: 18.11 (1) facilitate or provide needed 18.12 community support services while taking 18.13 advantage of current local, state, and 18.14 federal programs that provide services 18.15 to senior citizens and handicapped 18.16 individuals; 18.17 (2) negotiate appropriate agreements 18.18 with the Minneapolis public housing 18.19 authority and Hennepin county; 18.20 (3) ensure that all participants are 18.21 screened for eligibility for services 18.22 by Hennepin county; 18.23 (4) become a licensed home care service 18.24 provider or subcontract with a licensed 18.25 provider to deliver needed services; 18.26 (5) contract for meals to be provided 18.27 through its congregate dining program; 18.28 and 18.29 (6) form other partnerships as needed 18.30 to ensure the development of a 18.31 successful, culturally sensitive 18.32 program for meeting the needs of 18.33 Korean, Southeast Asian, and other 18.34 frail elderly and disabled persons 18.35 living in public housing in southeast 18.36 Minneapolis. 18.37 The grantee must have the project 18.38 evaluated by an outside evaluator, 18.39 based on measurement standards 18.40 developed by the commissioner. The 18.41 grantee must submit the evaluation to 18.42 the commissioner no later than December 18.43 15, 1999, and the commissioner must 18.44 submit the evaluation with 18.45 recommendations on the project's 18.46 continuation and expansion by January 18.47 15, 2000. 18.48 [TRANSIT SERVICE SUBSIDIES.] The 18.49 commissioner shall examine 18.50 circumstances where providers receive 18.51 state or federal funds for transit 18.52 service operating subsidies or to 18.53 purchase transit equipment, and receive 18.54 medical assistance reimbursement for 18.55 medical transportation services in 18.56 amounts greater than the fee charged by 18.57 the provider to persons from whom 18.58 services are not reimbursed by medical 18.59 assistance. 18.60 The commissioner's analysis may involve 18.61 assistance from the commissioner of the 18.62 department of health. 19.1 The commissioner shall submit a report 19.2 on the study to the legislature by 19.3 January 15, 1998. 19.4 Subd. 10. Economic Support Grants 19.5 General 213,790,000 211,036,000 19.6 [GIFTS.] Notwithstanding any other law 19.7 to the contrary, the commissioner may 19.8 accept on behalf of the state 19.9 additional funding from sources other 19.10 than state funds for the purpose of 19.11 financing assistance program grants 19.12 costs or nongrant administrative 19.13 costs. All such additional funding is 19.14 appropriated to the commissioner for 19.15 use as designated by the grantee of 19.16 funding. 19.17 The amounts that may be spent from this 19.18 appropriation for each purpose are as 19.19 follows: 19.20 (a) Assistance to Families Grants 19.21 General 89,518,000 110,688,000 19.22 (b) Assistance to 19.23 Families - County 19.24 Management -0- -0- 19.25 (c) Work Grants 19.26 General 5,878,000 5,884,000 19.27 (d) Minnesota Family 19.28 Investment Plan 19.29 General 27,433,000 5,037,000 19.30 [WELFARE REFORM CARRYOVER.] Unexpended 19.31 grant funds for the statewide 19.32 implementation of the Minnesota family 19.33 investment program and employment and 19.34 training programs and for the work 19.35 first and work focused pilot programs 19.36 appropriated in fiscal year 1998 for 19.37 the implementation of welfare reform 19.38 initiatives do not cancel and are 19.39 available to the commissioner for these 19.40 purposes in fiscal year 1999. 19.41 (e) Aid to Families With 19.42 Dependent Children 19.43 General 619,000 -0- 19.44 [AFDC SUPPLEMENTARY GRANTS.] Of the 19.45 appropriation for aid to families with 19.46 dependent children, the commissioner 19.47 shall provide supplementary grants not 19.48 to exceed $200,000 a year for aid to 19.49 families with dependent children until 19.50 the AFDC program no longer exists. The 19.51 commissioner shall include the 19.52 following costs in determining the 19.53 amount of the supplementary grants: 19.54 major home repairs, repair of major 19.55 home appliances, utility recaps, 19.56 supplementary dietary needs not covered 20.1 by medical assistance, and replacements 20.2 of furnishings and essential major 20.3 appliances. 20.4 [CASH BENEFITS IN ADVANCE.] The 20.5 commissioner, with the advance approval 20.6 of the commissioner of finance, is 20.7 authorized to issue cash assistance 20.8 benefits up to three days before the 20.9 first day of each month, including 20.10 three days before the start of each 20.11 state fiscal year. Of the money 20.12 appropriated for cash assistance grants 20.13 for each fiscal year, up to three 20.14 percent of the annual state 20.15 appropriation is available to the 20.16 commissioner in the previous fiscal 20.17 year. If that amount is insufficient 20.18 for the costs incurred, an additional 20.19 amount of the appropriation as needed 20.20 may be transferred with the advance 20.21 approval of the commissioner of 20.22 finance. This paragraph is effective 20.23 the day following final enactment. 20.24 (f) Child Support Enforcement 20.25 General 5,790,000 5,372,000 20.26 [CHILD SUPPORT PAYMENT CENTER.] 20.27 Payments to the commissioner from other 20.28 governmental units, private 20.29 enterprises, and individuals for 20.30 services performed by the Child Support 20.31 Payment Center must be deposited in the 20.32 state systems account authorized in 20.33 Minnesota Statutes, section 256.014. 20.34 These payments are appropriated to the 20.35 commissioner for the operation of the 20.36 Child Support Payment Center or system, 20.37 in accordance with Minnesota Statutes, 20.38 section 256.014. 20.39 [CHILD SUPPORT ENFORCEMENT PAYMENT 20.40 CENTER RECOUPMENT ACCOUNT.] The child 20.41 support enforcement payment center is 20.42 authorized to establish an account to 20.43 cover checks issued in error or in 20.44 cases where insufficient funds are 20.45 available to pay the checks. All 20.46 recoupments against payments from the 20.47 account must be deposited in the child 20.48 support enforcement payment center 20.49 recoupment account and are appropriated 20.50 to the commissioner for the purposes of 20.51 the account. Any unexpended balance in 20.52 the account does not cancel, but is 20.53 available until expended. For the 20.54 period June 1, 1997, to June 30, 1997, 20.55 the commissioner may transfer general 20.56 fund administrative money to the child 20.57 support enforcement payment center 20.58 recoupment account to cover 20.59 underfinanced and unfunded checks 20.60 during this period only. This 20.61 paragraph is effective the day 20.62 following final enactment. 20.63 [CHILD SUPPORT ENFORCEMENT CARRYOVER.] 20.64 Unexpended funds for child support 20.65 enforcement grants and county 21.1 performance incentives for fiscal year 21.2 1998 do not cancel but are available to 21.3 the commissioner for these purposes for 21.4 fiscal year 1999. 21.5 [COOPERATION FOR CHILDREN, PARENT 21.6 EDUCATION.] Of this appropriation the 21.7 commissioner shall transfer to the 21.8 state court administrator $100,000 in 21.9 fiscal year 1998 and $100,000 in fiscal 21.10 year 1999 for the implementation of the 21.11 cooperation for the children program 21.12 and the parent education program. The 21.13 commissioner shall also request all 21.14 federal funds available for visitation 21.15 access grants under the authority of 21.16 the Personal Responsibility and Work 21.17 Opportunity Act of 1996. The 21.18 commissioner may accept on behalf of 21.19 the state any federal funding for the 21.20 purpose of financing visitation access 21.21 programs and shall transfer any funds 21.22 received for this purpose to the state 21.23 court administrator for implementation 21.24 of the parent education program and the 21.25 cooperation for the children program. 21.26 The state court administrator shall 21.27 monitor, evaluate and report on such 21.28 programs in accordance with any 21.29 applicable federal regulations. 21.30 [CHILD SUPPORT ENFORCEMENT 21.31 APPROPRIATIONS.] Of this appropriation 21.32 for the biennium ending June 30, 1999, 21.33 the commissioner shall transfer: 21.34 $150,000 to the attorney general for 21.35 the continuation of the public 21.36 education campaign specified in 21.37 Minnesota Statutes, section 8.35; and 21.38 $68,000 to the attorney general for the 21.39 purposes specified in Minnesota 21.40 Statutes, section 518.575. Any balance 21.41 remaining in the first year does not 21.42 cancel, but is available in the second 21.43 year. 21.44 (g) General Assistance 21.45 General 57,466,000 54,010,000 21.46 [GA STANDARD.] The commissioner shall 21.47 set the monthly standard of assistance 21.48 for general assistance units consisting 21.49 of an adult recipient who is childless 21.50 and unmarried or living apart from his 21.51 or her parents or a legal guardian at 21.52 $203. 21.53 (h) Minnesota Supplemental Aid 21.54 General 25,181,000 28,440,000 21.55 (i) Refugee Services 21.56 General 1,905,000 1,605,000 21.57 Subd. 11. Economic Support 21.58 Management 21.59 General 33,808,000 31,739,000 22.1 Health Care 22.2 Access -0- -0- 22.3 The amounts that may be spent from this 22.4 appropriation for each purpose are as 22.5 follows: 22.6 (a) Economic Support Policy 22.7 Administration 22.8 General 10,731,000 9,013,000 22.9 [COMBINED MANUAL PRODUCTION COSTS.] The 22.10 commissioner may increase the fee 22.11 charged to, and may retain money 22.12 received from, individuals and private 22.13 entities in order to recover the 22.14 difference between the costs of 22.15 producing the department of human 22.16 services combined manual and the 22.17 subsidized price charged to individuals 22.18 and private entities on January 1, 22.19 1996. This provision does not apply to 22.20 government agencies and nonprofit 22.21 agencies serving the legal or social 22.22 service needs of clients. 22.23 [PLAN FOR TRIBAL OPERATION OF FAMILY 22.24 ASSISTANCE PROGRAM.] Of this 22.25 appropriation, $148,000 is for the 22.26 commissioner to assist tribes in the 22.27 development of a plan for providing 22.28 state funds in support of a family 22.29 assistance program administered by 22.30 Indian tribes that have a reservation 22.31 in Minnesota and that have federal 22.32 approval to operate a tribal program. 22.33 The commissioner and the tribes shall 22.34 collaborate in the development of the 22.35 plan. The plan shall be reported to 22.36 the legislature no later than February 22.37 15, 1998. 22.38 [NEW CHANCE PROGRAM.] Of this 22.39 appropriation, $140,000 each year is 22.40 for a grant to the new chance program. 22.41 The new chance program shall provide 22.42 comprehensive services through a 22.43 private, nonprofit agency to young 22.44 parents in Hennepin county who have 22.45 dropped out of school and are receiving 22.46 public assistance. The program 22.47 administrator shall report annually to 22.48 the commissioner on skills development, 22.49 education, job training, and job 22.50 placement outcomes for program 22.51 participants. 22.52 (b) Economic Support Policy 22.53 Operations 22.54 General 28,477,000 28,126,000 22.55 Health Care 22.56 Access -0- -0- 22.57 [CITIZENSHIP TRAINING.] The funds 22.58 appropriated for citizenship training 22.59 shall be awarded to nonprofit 22.60 organizations through a competitive 22.61 bidding process based on criteria 23.1 established by the commissioner of 23.2 human services. Notice of the 23.3 availability of funds shall be 23.4 published in the State Register. 23.5 [ELECTRONIC BENEFIT TRANSFER (EBT) 23.6 COUNTY ALLOCATION.] Of the amount 23.7 appropriated for electronic benefit 23.8 transfer, an allocation shall be made 23.9 each year to counties for EBT-related 23.10 expenses. One hundred percent of the 23.11 appropriation shall be allocated to 23.12 counties based on each county's average 23.13 monthly number of food stamp households 23.14 as a proportion of statewide average 23.15 monthly food stamp households for the 23.16 fiscal year ending June 30, 1996. 23.17 [FRAUD PREVENTION AND CONTROL FUNDING.] 23.18 Unexpended funds appropriated for the 23.19 provision of program integrity 23.20 activities for fiscal year 1998 are 23.21 also available to the commissioner to 23.22 fund fraud prevention and control 23.23 initiatives, and do not cancel but are 23.24 available to the commissioner for these 23.25 purposes for fiscal year 1999. 23.26 Unexpended funds may be transferred 23.27 between the fraud prevention 23.28 investigation program and fraud control 23.29 programs to promote the provisions of 23.30 Minnesota Statutes, sections 256.983 23.31 and 256.9861. 23.32 [TRIBAL OPERATION OF ASSISTANCE 23.33 PROGRAMS; FEASIBILITY CONSIDERED.] The 23.34 commissioner of human services, in 23.35 consultation with the federally- 23.36 recognized Indian tribes, the 23.37 commissioner of children, families, and 23.38 learning and the commissioner of 23.39 economic security, shall explore the 23.40 feasibility of having the 23.41 federally-recognized Indian tribes 23.42 administer or operate state and 23.43 federally funded programs such as 23.44 MFIP-S, diversionary assistance, food 23.45 stamps, general assistance, emergency 23.46 assistance, child support enforcement, 23.47 and child care assistance. The 23.48 exploration shall consider the state 23.49 and federal funding needed for the 23.50 programs under consideration. 23.51 (c) Assistance to Families 23.52 State Management 23.53 -0- -0- 23.54 Subd. 12. Federal TANF Funds 23.55 [TRANSFER TO TANF CHILD CARE.] Of this 23.56 appropriation, $5,400,000 in fiscal 23.57 year 1998 from the federal TANF block 23.58 grant and $5,400,000 in fiscal year 23.59 1999 from the federal TANF block grant 23.60 is transferred to the commissioner of 23.61 children, families, and learning for 23.62 the purposes of providing TANF child 23.63 care assistance. 24.1 Sec. 3. COMMISSIONER OF HEALTH 24.2 Subdivision 1. Total 24.3 Appropriation 81,475,000 80,371,000 24.4 Summary by Fund 24.5 General 59,395,000 58,271,000 24.6 Metropolitan 24.7 Landfill Contingency 24.8 Action Fund 193,000 193,000 24.9 State Government 24.10 Special Revenue 21,737,000 21,907,000 24.11 Health Care 24.12 Access -0- -0- 24.13 Minnesota Resources 150,000 -0- 24.14 [LANDFILL CONTINGENCY.] The 24.15 appropriation from the metropolitan 24.16 landfill contingency action fund is for 24.17 monitoring well water supplies and 24.18 conducting health assessments in the 24.19 metropolitan area. 24.20 [FEES TO COVER COSTS, RECOVER 24.21 DEFICITS.] The commissioner of health 24.22 shall set fees to cover current program 24.23 costs and recover deficits. 24.24 Subd. 2. Health Systems 24.25 and Special Populations 56,195,000 56,098,000 24.26 Summary by Fund 24.27 General 47,096,000 47,026,000 24.28 State Government 24.29 Special Revenue 9,099,000 9,072,000 24.30 Health Care 24.31 Access -0- -0- 24.32 [FEES; DRUG AND ALCOHOL COUNSELOR 24.33 LICENSE.] When setting fees for the 24.34 drug and alcohol counselor license, the 24.35 department is exempt from Minnesota 24.36 Statutes, section 16A.1285, subdivision 24.37 2. 24.38 [FEES; HEARING INSTRUMENT DISPENSER 24.39 LICENSE.] When setting fees for the 24.40 hearing instrument dispenser license, 24.41 the department is exempt from Minnesota 24.42 Statutes, section 16A.1285, subdivision 24.43 2. 24.44 [STATE VITAL RECORDS REDESIGN PROJECT 24.45 ACCOUNT.] The amount appropriated for 24.46 the vital records redesign project 24.47 shall be available until expended for 24.48 ongoing development and operations. 24.49 [WIC PROGRAM.] Of this appropriation, 24.50 $650,000 in 1998 is provided to 24.51 maintain services of the program, 24.52 $700,000 in 1998 and $700,000 in 1999 24.53 is added to the base level funding for 25.1 the WIC food program in order to 25.2 maintain the existing level of the 25.3 program, and $100,000 in 1998 is for 25.4 the commissioner to develop and 25.5 implement an outreach program to 25.6 apprise potential recipients of the WIC 25.7 food program of the importance of good 25.8 nutrition and the availability of the 25.9 program. 25.10 [WIC TRANSFERS.] General fund 25.11 appropriations for the women, infants, 25.12 and children food supplement program 25.13 (WIC) are available for either year of 25.14 the biennium. Transfers of 25.15 appropriations between fiscal years 25.16 must be for the purpose of maximizing 25.17 federal funds or minimizing 25.18 fluctuations in the number of 25.19 participants. 25.20 [LOCAL PUBLIC HEALTH FINANCING.] Of the 25.21 appropriation, $6,026,000 in fiscal 25.22 year 1998 and $5,255,000 in fiscal year 25.23 1999 is for local public health 25.24 financing. Of this amount, $5,476,000 25.25 in fiscal year 1998 and $4,705,000 in 25.26 fiscal year 1999 shall be distributed 25.27 according to the community health 25.28 services subsidy formula in Minnesota 25.29 Statutes, section 145A.13. No more 25.30 than $550,000 each year is for 25.31 technical assistance provided by the 25.32 commissioner under Minnesota Statutes, 25.33 section 145A.12. 25.34 [JUVENILE ASSESSMENT CENTERS.] Of this 25.35 appropriation, $500,000 each year of 25.36 the biennium ending June 30, 1999, is 25.37 for the commissioner to develop and 25.38 pilot up to three juvenile assessment 25.39 centers, in partnership with the 25.40 commissioner of children, families and 25.41 learning. The commissioner may 25.42 transfer these appropriations to the 25.43 commissioner of children, families, and 25.44 learning and to other commissioners as 25.45 appropriate. The centers will serve as 25.46 central intake facilities for juveniles 25.47 entering the juvenile justice system or 25.48 involved in CHIPS proceedings; 25.49 facilitate screening for risk factors 25.50 for further involvement in the juvenile 25.51 justice system; refer juveniles to 25.52 appropriate service providers; and 25.53 provide decision-makers with timely 25.54 information. 25.55 [CARRYOVER; MINNESOTA CHILDREN WITH 25.56 SPECIAL HEALTH NEEDS.] General fund 25.57 appropriations for treatment services 25.58 in the services for children with 25.59 special health care needs program are 25.60 available for either year of the 25.61 biennium. 25.62 [HEALTH CARE ASSISTANCE FOR DISABLED 25.63 CHILDREN INELIGIBLE FOR SSI.] 25.64 Notwithstanding the requirements of 25.65 Minnesota Rules, part 4705.0100, 25.66 subpart 14, children who: (a) are 26.1 eligible for medical assistance as of 26.2 June 30, 1997, and become ineligible 26.3 for medical assistance due to changes 26.4 in supplemental security income 26.5 disability standards for children 26.6 enacted in (PRWORA) Public Law Number 26.7 104-193; and (b) are not eligible for 26.8 MinnesotaCare, are eligible for health 26.9 care services through Minnesota 26.10 services for children with special 26.11 health care needs under Minnesota 26.12 Rules, parts 4705.0100 to 4705.1600 for 26.13 the fiscal year ending June 30, 1998. 26.14 The commissioner of health shall report 26.15 to the legislature by March 1, 1998, on 26.16 the number of children eligible under 26.17 this provision, their health care 26.18 needs, family income as a percentage of 26.19 the federal poverty level, the extent 26.20 to which families have employer-based 26.21 health coverage, and recommendations on 26.22 how to meet the future needs of 26.23 children eligible under this provision. 26.24 [MERC TRUST FUND.] Of the general fund 26.25 appropriation, $7,200,000 each year is 26.26 for the medical education and research 26.27 (MERC) trust fund established under 26.28 Minnesota Statutes, section 62J.69. 26.29 The commissioner may use up to $150,000 26.30 of this appropriation each year for the 26.31 administration of the MERC trust fund. 26.32 [INDIAN DIABETES PREVENTION 26.33 ACTIVITIES.] (a) Of this general fund 26.34 appropriation, $90,000 in fiscal year 26.35 1998 is for development of a 26.36 comprehensive school-based intervention 26.37 program designed to reduce the risk 26.38 factors associated with diabetes among 26.39 American Indian school children in 26.40 grades 1 through 4. 26.41 (b) Of this general fund appropriation, 26.42 $90,000 in fiscal year 1999 is for the 26.43 implementation of the program developed 26.44 under paragraph (a). This 26.45 appropriation is available only if 26.46 matched by $1 of nonstate money for 26.47 each $1 of the appropriation. 26.48 [HOME VISITING PROGRAMS.] (a) Of this 26.49 appropriation, $140,000 in 1998 and 26.50 $1,295,000 in 1999 is for the home 26.51 visiting programs for infant care under 26.52 Minnesota Statutes, section 145A.16. 26.53 These amounts are available until June 26.54 30, 1999. 26.55 (b) Of this appropriation, $225,000 in 26.56 1998 and $180,000 in 1999 is to 26.57 continue funding the home visiting 26.58 programs that received one-year funding 26.59 under Laws 1995, chapter 480, article 26.60 1, section 9. This amount is available 26.61 until expended. 26.62 [FETAL ALCOHOL SYNDROME.] $1,000,000 is 26.63 appropriated from the general fund to 26.64 the commissioner of health for each 26.65 year of the biennium ending June 30, 27.1 1999, to prevent and reduce harm from 27.2 Fetal Alcohol Syndrome (FAS) and Fetal 27.3 Alcohol Effect (FAE). Of this amount: 27.4 (1) the commissioner shall transfer 27.5 $50,000 in fiscal year 1998 and $50,000 27.6 in fiscal year 1999 to the commissioner 27.7 of public safety to enforce Minnesota 27.8 Statutes, section 340A.410, subdivision 27.9 4b, and to develop a training packet 27.10 for alcohol beverage sales and service 27.11 providers; and (2) the commissioner 27.12 shall transfer $800,000 each year to 27.13 the commissioner of human services to 27.14 provide transitional chemical 27.15 dependency services to pregnant women. 27.16 Of the appropriation, $150,000 each 27.17 year is for training health care 27.18 providers to screen and refer pregnant 27.19 women for alcohol abuse, identifying 27.20 affected children and referring them to 27.21 needed services, and designing and 27.22 implementing a statewide plan to 27.23 promote responsible drinking and reduce 27.24 binge drinking, underage drinking, and 27.25 fetal alcohol exposure. 27.26 [COMPLAINT INVESTIGATIONS.] Of the 27.27 appropriation, $127,000 each year from 27.28 the state government special revenue 27.29 fund, and $88,000 each year from the 27.30 general fund, is for the commissioner 27.31 to conduct complaint investigations of 27.32 nursing facilities, hospitals and home 27.33 health care providers. 27.34 [HOME STAFFING STUDY.] The commissioner 27.35 of health, in consultation with the 27.36 commissioner of human services, shall 27.37 study nursing home staffing to 27.38 determine if Minnesota nursing homes 27.39 are adequately staffed to assure high 27.40 quality care of residents. The study 27.41 shall examine: 27.42 (1) Whether nursing home staff levels 27.43 and qualifications have changed to 27.44 reflect the rising acuity levels of 27.45 nursing home patients. 27.46 (2) Whether more training is necessary 27.47 for nursing assistant and who care for 27.48 sicker patients. 27.49 (3) The percentage of nursing care in 27.50 nursing homes that is delivered by 27.51 nursing assistants as opposed to 27.52 licensed nurses, how this has changed 27.53 over the past five years, and what the 27.54 implications are for care. 27.55 (4) Whether the use of nursing pools or 27.56 agencies has increased over the past 27.57 five years, the implications of the use 27.58 of pools for continuity of care and for 27.59 costs to nursing homes, and whether a 27.60 restriction on the use of nursing pools 27.61 is advisable. 27.62 (5) Whether injury rates are related to 27.63 staffing, and whether increased 28.1 staffing would reduce injury rates, 28.2 lead to greater continuity of care, and 28.3 lower worker compensation costs to the 28.4 nursing home industry. 28.5 (6) Whether high turnover rates and 28.6 difficulty in attracting and retaining 28.7 nursing assistant staff in nursing 28.8 homes are related to low wages, and 28.9 whether the state should provide wage 28.10 enhancements for nursing assistants to 28.11 bring wages to a level adequate to 28.12 attract and retain good staff. 28.13 (7) Whether Minnesota should adopt new 28.14 staffing standards for its nursing 28.15 homes to reflect the increases in 28.16 patients' acuity levels and the 28.17 increased use of nursing assistants for 28.18 nursing care, and whether the state 28.19 should adopt a "ratio" standard that 28.20 requires the number of licensed nurses 28.21 and nursing assistants on staff to be 28.22 based on the number of patients and the 28.23 time of day. 28.24 The commissioner shall present 28.25 recommendations to the legislature by 28.26 December 15, 1997. 28.27 Subd. 3. Health Protection 21,905,000 21,098,000 28.28 Summary by Fund 28.29 General 9,082,000 8,228,000 28.30 Metro Landfill 28.31 Contingency 193,000 193,000 28.32 State Government 28.33 Special Revenue 12,480,000 12,677,000 28.34 Minnesota Resources 150,000 -0- 28.35 [DEMO PROJECTS FOR HIV EDUCATION IN 28.36 SCHOOLS.] Of this appropriation, the 28.37 commissioner shall transfer $300,000 28.38 for the biennium ending June 30, 1999, 28.39 to the commissioner of children, 28.40 families, and learning to establish a 28.41 demonstration project to provide grants 28.42 to school districts under Minnesota 28.43 Statutes, section 121.203. In 28.44 selecting participating districts the 28.45 commissioner shall give first priority 28.46 to school districts outside of the 28.47 seven-county metropolitan area, and 28.48 second priority to school districts in 28.49 the seven-county metropolitan area 28.50 other than the Minneapolis and St. Paul 28.51 school districts. The commissioner 28.52 shall issue a request for proposals by 28.53 October 1, 1997, and shall select 28.54 districts by December 15, 1997. The 28.55 commissioner shall evaluate the 28.56 projects, and by June 15, 1999, develop 28.57 model programs for districts to 28.58 implement Minnesota Statutes, section 28.59 121.203. This appropriation shall not 28.60 become part of the base for 2000-2001 28.61 biennium. 29.1 [PREVENTION OF PERINATAL TRANSMISSION 29.2 OF HIV.] Of this appropriation, 29.3 $500,000 for the biennium is for 29.4 activities related to prevention of 29.5 perinatal transmission of HIV. Of this 29.6 amount, $225,000 in fiscal year 1998 29.7 and $200,000 in fiscal year 1999 is to 29.8 conduct a statewide education campaign 29.9 for pregnant women and their health 29.10 care providers, and $75,000 is for 29.11 demonstration grants to providers to 29.12 develop procedures for incorporating 29.13 HIV awareness and education into 29.14 perinatal care. 29.15 [EVALUATION REQUIRED.] Of this 29.16 appropriation, $100,000 for the 29.17 biennium is for the commissioner to 29.18 evaluate the effects of Minnesota 29.19 Statutes, section 151.40, subdivision 29.20 2, and Minnesota Statutes, section 29.21 152.01, subdivision 18, paragraph (b). 29.22 The commissioner shall submit an 29.23 interim evaluation report to the 29.24 legislature by January 15, 2000, and a 29.25 final report by January 15, 2002. 29.26 [PROVIDER REIMBURSEMENT FOR HEALTH CARE 29.27 SERVICES TO CRIME VICTIMS.] Of this 29.28 appropriation $25,000 each year is for 29.29 the commissioner to reimburse health 29.30 care providers for counseling, testing, 29.31 and early intervention services 29.32 provided to crime victims who requested 29.33 the services. 29.34 Subd. 4. Management and 29.35 Support Services 3,375,000 3,175,000 29.36 Summary by Fund 29.37 General 3,217,000 3,017,000 29.38 Health Care 29.39 Access -0- -0- 29.40 State Government 29.41 Special Revenue 158,000 158,000 29.42 [HEALTH DEPARTMENT COMPUTER PROJECTS.] 29.43 Money appropriated for computer 29.44 projects approved by the information 29.45 policy office, funded by the 29.46 legislature, and approved by the 29.47 commissioner of finance does not cancel 29.48 but is available for development and 29.49 implementation. 29.50 [HOSPITAL CONVERSION.] Of the 29.51 appropriation from the general fund, 29.52 for the fiscal year ending June 30, 29.53 1998, the commissioner of health shall 29.54 provide $75,000 to a 28-bed hospital 29.55 located in Chisago county that is in 29.56 the process of closing and converting 29.57 to an outpatient and emergency services 29.58 facility, for the facility's EMS and 29.59 advanced life support services. 29.60 Sec. 4. VETERANS NURSING 29.61 HOMES BOARD 20,709,000 24,342,000 30.1 [SPECIAL REVENUE ACCOUNT.] The general 30.2 fund appropriations made to the 30.3 veterans homes board shall be 30.4 transferred to a veterans homes special 30.5 revenue account in the special revenue 30.6 fund in the same manner as other 30.7 receipts are deposited in accordance 30.8 with Minnesota Statutes, section 30.9 198.34, and are appropriated to the 30.10 veterans homes board of directors for 30.11 the operation of board facilities and 30.12 programs. 30.13 [SETTING THE COST OF CARE.] The 30.14 veterans homes board may set the cost 30.15 of care at the Fergus Falls facility 30.16 for fiscal year 1998 based on the cost 30.17 of average skilled nursing care 30.18 provided to residents of the 30.19 Minneapolis veterans home for fiscal 30.20 year 1998. The board may set the cost 30.21 of care at the Fergus Falls facilities 30.22 for fiscal year 1999 based on the cost 30.23 of average skilled nursing care for 30.24 residents of the Minneapolis veterans 30.25 home for fiscal year 1999. 30.26 [LICENSED CAPACITY.] The department of 30.27 health shall not reduce the licensed 30.28 bed capacity for the Minneapolis 30.29 veterans home pending completion of the 30.30 project authorized by Laws 1990, 30.31 chapter 610, article 1, section 9, 30.32 subdivision 3. 30.33 [ALLOWANCE FOR FOOD.] The allowance for 30.34 food may be adjusted annually to 30.35 reflect changes in the producer price 30.36 index, as prepared by the United States 30.37 Bureau of Labor Statistics, with the 30.38 approval of the commissioner of 30.39 finance. Adjustments for fiscal year 30.40 1998 and fiscal year 1999 must be based 30.41 on the June 1996 and June 1997 producer 30.42 price index respectively, but the 30.43 adjustment must be prorated if it would 30.44 require money in excess of the 30.45 appropriation. 30.46 Sec. 5. HEALTH-RELATED BOARDS 30.47 Subdivision 1. Total 30.48 Appropriation 9,598,000 9,618,000 30.49 [STATE GOVERNMENT SPECIAL REVENUE 30.50 FUND.] The appropriations in this 30.51 section are from the state government 30.52 special revenue fund. 30.53 [NO SPENDING IN EXCESS OF REVENUES.] 30.54 The commissioner of finance shall not 30.55 permit the allotment, encumbrance, or 30.56 expenditure of money appropriated in 30.57 this section in excess of the 30.58 anticipated biennial revenues or 30.59 accumulated surplus revenues from fees 30.60 collected by the boards. Neither this 30.61 provision nor Minnesota Statutes, 30.62 section 214.06, applies to transfers 30.63 from the general contingent account. 31.1 Subd. 2. Board of Chiropractic 31.2 Examiners 332,000 340,000 31.3 Subd. 3. Board of Dentistry 742,000 760,000 31.4 Subd. 4. Board of Dietetic 31.5 and Nutrition Practice 90,000 90,000 31.6 Subd. 5. Board of Marriage and 31.7 Family Therapy 103,000 104,000 31.8 Subd. 6. Board of Medical 31.9 Practice 3,672,000 3,711,000 31.10 Of these appropriations, $291,000 the 31.11 first year and $296,000 the second year 31.12 are for the Health Professional 31.13 Services Activity. 31.14 Subd. 7. Board of Nursing 2,067,000 2,106,000 31.15 [DISCIPLINE AND LICENSING SYSTEMS 31.16 PROJECT.] Of this appropriation, 31.17 $235,000 the first year and $235,000 31.18 the second year is to complete the 31.19 implementation of the discipline and 31.20 licensing systems project. 31.21 Subd. 8. Board of Nursing 31.22 Home Administrators 177,000 181,000 31.23 Subd. 9. Board of Optometry 82,000 85,000 31.24 Subd. 10. Board of Pharmacy 1,020,000 1,040,000 31.25 Of these appropriations, $216,000 the 31.26 first year and $222,000 the second year 31.27 are for the health boards 31.28 administrative services unit. The 31.29 administrative services unit may 31.30 receive and expend reimbursements for 31.31 services performed for other agencies. 31.32 Subd. 11. Board of Podiatry 33,000 33,000 31.33 Subd. 12. Board of Psychology 424,000 436,000 31.34 Subd. 13. Board of Social Work 715,000 588,000 31.35 Subd. 14. Board of Veterinary 31.36 Medicine 141,000 144,000 31.37 Sec. 6. EMERGENCY MEDICAL 31.38 SERVICES BOARD 2,791,000 2,811,000 31.39 Summary by Fund 31.40 General 1,139,000 1,133,000 31.41 Trunk Highway 1,652,000 1,678,000 31.42 [CALS PROGRAM.] $206,000 is 31.43 appropriated from the general fund to 31.44 the emergency medical services 31.45 regulatory board to be available until 31.46 June 30, 1999. $200,000 of the 31.47 appropriation is to implement the 31.48 comprehensive advanced life support 31.49 (CALS) program or similar program. 31.50 $6,000 of the appropriation is for 31.51 administrative costs of implementing 32.1 the CALS program. 32.2 [EMS BOARD DATA COLLECTION.] Of this 32.3 appropriation, $52,000 for the biennium 32.4 ending June 30, 1999, is from the 32.5 general fund to the emergency medical 32.6 services regulatory to be used as 32.7 start-up costs for the financial data 32.8 collection system. 32.9 Sec. 7. COUNCIL ON DISABILITY 616,000 631,000 32.10 Sec. 8. OMBUDSMAN FOR MENTAL 32.11 HEALTH AND MENTAL RETARDATION 1,399,000 1,323,000 32.12 [CARRYOVER.] $25,000 of the 32.13 appropriation from Laws 1995, chapter 32.14 207, article 1, section 7, does not 32.15 cancel but is available until June 30, 32.16 1999. 32.17 Sec. 9. OMBUDSMAN 32.18 FOR FAMILIES 157,000 161,000 32.19 Sec. 10. TRANSFERS 32.20 Subdivision 1. Grant Programs 32.21 The commissioner of human services, 32.22 with the approval of the commissioner 32.23 of finance, and after notification of 32.24 the chair of the senate health care and 32.25 family services finance division and 32.26 the chair of the house health and human 32.27 services finance division, may transfer 32.28 unencumbered appropriation balances for 32.29 the biennium ending June 30, 1999, 32.30 within fiscal years among the aid to 32.31 families with dependent children, 32.32 Minnesota family investment 32.33 program-statewide, Minnesota family 32.34 investment plan, general assistance, 32.35 general assistance medical care, 32.36 medical assistance, Minnesota 32.37 supplemental aid, and group residential 32.38 housing programs, and the entitlement 32.39 portion of the chemical dependency 32.40 consolidated treatment fund, and 32.41 between fiscal years of the biennium. 32.42 Subd. 2. Approval Required 32.43 Positions, salary money, and nonsalary 32.44 administrative money may be transferred 32.45 within the departments of human 32.46 services and health and within the 32.47 programs operated by the veterans 32.48 nursing homes board as the 32.49 commissioners and the board consider 32.50 necessary, with the advance approval of 32.51 the commissioner of finance. The 32.52 commissioner of finance shall inform 32.53 the chairs of the house health and 32.54 human services finance division and the 32.55 senate health and family security 32.56 budget division quarterly about 32.57 transfers made under this provision. 32.58 Sec. 11. PROVISIONS 32.59 (a) Money appropriated to the 33.1 commissioner of human services for the 33.2 purchase of provisions within the item 33.3 "current expense" must be used solely 33.4 for that purpose. Money provided and 33.5 not used for the purchase of provisions 33.6 must be canceled into the fund from 33.7 which appropriated, except that money 33.8 provided and not used for the purchase 33.9 of provisions because of population 33.10 decreases may be transferred and used 33.11 for the purchase of drugs and medical 33.12 and hospital supplies and equipment 33.13 with written approval of the governor 33.14 after consultation with the legislative 33.15 advisory commission. 33.16 (b) For fiscal year 1998, the allowance 33.17 for food may be adjusted to the 33.18 equivalent of the 75th percentile of 33.19 the comparable raw food costs for 33.20 community nursing homes as reported to 33.21 the commissioner of human services. 33.22 For fiscal year 1999 an adjustment may 33.23 be made to reflect the annual change in 33.24 the United States Bureau of Labor 33.25 Statistics producer price index as of 33.26 June 1998 with the approval of the 33.27 commissioner of finance. The 33.28 adjustments for either year must be 33.29 prorated if they would require money in 33.30 excess of this appropriation. 33.31 Sec. 12. CARRYOVER LIMITATION 33.32 None of the appropriations in this act 33.33 which are allowed to be carried forward 33.34 from fiscal year 1998 to fiscal year 33.35 1999 shall become part of the base 33.36 level funding for the 2000-2001 33.37 biennial budget, unless specifically 33.38 directed by the legislature. 33.39 Sec. 13. SUNSET OF UNCODIFIED LANGUAGE 33.40 All uncodified language contained in 33.41 this article expires on June 30, 1999, 33.42 unless a different expiration is 33.43 explicit. 33.44 ARTICLE 2 33.45 HEALTH DEPARTMENT 33.46 Section 1. Minnesota Statutes 1996, section 13.99, is 33.47 amended by adding a subdivision to read: 33.48 Subd. 32a. [BIRTH DEFECTS INFORMATION SYSTEM DATA.] Data 33.49 in the birth defects information system maintained by the 33.50 commissioner of health are classified in section 144.2217. 33.51 Sec. 2. [62J.70] [AMBULANCE SERVICES FINANCIAL DATA.] 33.52 Subdivision 1. [ESTABLISHMENT.] The emergency medical 33.53 services regulatory board established under chapter 144E shall 33.54 establish a financial data collection system for all ambulance 34.1 services licensed in this state. To establish the financial 34.2 database, the emergency medical services regulatory board may 34.3 contract with an entity that has experience in ambulance service 34.4 financial data collection. 34.5 Subd. 2. [DATA CLASSIFICATION.] All financial data 34.6 collected by the emergency medical services regulatory board 34.7 shall be classified as nonpublic data under section 13.02, 34.8 subdivision 9. 34.9 Sec. 3. Minnesota Statutes 1996, section 103I.101, 34.10 subdivision 6, is amended to read: 34.11 Subd. 6. [FEES FOR VARIANCES.] The commissioner shall 34.12 charge a nonrefundable application fee of$100$120 to cover the 34.13 administrative cost of processing a request for a variance or 34.14 modification of rules adopted by the commissioner under this 34.15 chapter. 34.16 Sec. 4. Minnesota Statutes 1996, section 103I.208, is 34.17 amended to read: 34.18 103I.208 [WELLNOTIFICATION FILING FEES AND PERMIT FEES.] 34.19 Subdivision 1. [WELL NOTIFICATION FEE.] The well 34.20 notification fee to be paid by a property owner is: 34.21 (1) for a new well,$100$120, which includes the state 34.22 core function fee;and34.23 (2) for a well sealing, $20, which includes the state core 34.24 function fee; and 34.25 (3) for construction of a dewatering well,$100$120, which 34.26 includes the state core function fee, for each well except a 34.27 dewatering project comprising five or more wells shall be 34.28 assessed a single fee of$500$600 for the wells recorded on the 34.29 notification. 34.30 Subd. 1a. [STATE CORE FUNCTION FEE.] The state core 34.31 function fee to be collected by the state and delegated boards 34.32 of health and used to support state core functions is: 34.33 (1) for a new well, $20; and 34.34 (2) for a well sealing, $5. 34.35 Subd. 2. [PERMIT FEE.] The permit fee to be paid by a 34.36 property owner is: 35.1 (1) for a well that is not in use under a maintenance 35.2 permit, $100 annually; 35.3 (2) for construction of a monitoring well,$100$120, which 35.4 includes the state core function fee; 35.5 (3) for a monitoring well that is unsealed under a 35.6 maintenance permit, $100 annually; 35.7 (4) for monitoring wells used as a leak detection device at 35.8 a single motor fuel retail outlet or petroleum bulk storage site 35.9 excluding tank farms, the construction permit fee is$100$120, 35.10 which includes the state core function fee, per site regardless 35.11 of the number of wells constructed on the site, and the annual 35.12 fee for a maintenance permit for unsealed monitoring wells is 35.13 $100 per site regardless of the number of monitoring wells 35.14 located on site; 35.15 (5) for a groundwater thermal exchange device, in addition 35.16 to the notification fee for wells,$100$120, which includes the 35.17 state core function fee; 35.18 (6) for a vertical heat exchanger,$100$120;and35.19 (7) for a dewatering well that is unsealed under a 35.20 maintenance permit, $100 annually for each well, except a 35.21 dewatering project comprising more than five wells shall be 35.22 issued a single permit for $500 annually for wells recorded on 35.23 the permit; and 35.24 (8) for excavating holes for the purpose of installing 35.25 elevator shafts, $120 for each hole. 35.26 Sec. 5. Minnesota Statutes 1996, section 103I.401, 35.27 subdivision 1, is amended to read: 35.28 Subdivision 1. [PERMIT REQUIRED.] (a) A person may not 35.29 construct an elevator shaft until a permit for the hole or 35.30 excavation is issued by the commissioner. 35.31 (b)The fee for excavating holes for the purpose of35.32installing elevator shafts is $100 for each hole.35.33(c)The elevator shaft permit preempts local permits except 35.34 local building permits, and counties and home rule charter or 35.35 statutory cities may not require a permit for elevator shaft 35.36 holes or excavations. 36.1 Sec. 6. Minnesota Statutes 1996, section 144.121, 36.2 subdivision 1, is amended to read: 36.3 Subdivision 1. [REGISTRATION; FEES.] The fee for the 36.4 registration for X-ray machines andradiumother sources of 36.5 ionizing radiation required to be registered under rules adopted 36.6 by the state commissioner of health pursuant to section 144.12, 36.7 shall be in an amountprescribed by the commissioneras 36.8 described in subdivision 1a pursuant to section 144.122.The36.9first fee for registration shall be due on January 1, 1975.The 36.10 registration shall expire and be renewed as prescribed by the 36.11 commissioner pursuant to section 144.122. 36.12 Sec. 7. Minnesota Statutes 1996, section 144.121, is 36.13 amended by adding a subdivision to read: 36.14 Subd. 1a. [FEES FOR X-RAY MACHINES AND OTHER SOURCES OF 36.15 IONIZING RADIATION.] After July 1, 1997, a facility with x-ray 36.16 machines or other sources of ionizing radiation must biennially 36.17 pay an initial or biennial renewal registration fee consisting 36.18 of a base facility fee of $132 and an additional fee for each 36.19 x-ray machine or other source of ionizing radiation as follows: 36.20 (1) medical or veterinary equipment $106 36.21 (2) dental x-ray equipment $ 66 36.22 (3) accelerator $132 36.23 (4) radiation therapy equipment $132 36.24 (5) x-ray equipment not used on humans or animals $106 36.25 (6) devices with sources of ionizing radiation 36.26 not used on humans or animals $106 36.27 (7) sources of radium $198 36.28 Sec. 8. Minnesota Statutes 1996, section 144.121, is 36.29 amended by adding a subdivision to read: 36.30 Subd. 1b. [PENALTY FEE FOR LATE REGISTRATION.] 36.31 Applications for initial or renewal registrations submitted to 36.32 the commissioner after the time specified by the commissioner 36.33 shall be accompanied by a penalty fee of $20 in addition to the 36.34 fees prescribed in subdivision 1a. 36.35 Sec. 9. Minnesota Statutes 1996, section 144.121, is 36.36 amended by adding a subdivision to read: 37.1 Subd. 1c. [FEE FOR X-RAY MACHINES AND OTHER SOURCES OF 37.2 IONIZING RADIATION REGISTERED DURING LAST 12 MONTHS OF A 37.3 BIENNIAL REGISTRATION PERIOD.] The initial registration fee of 37.4 x-ray machines or other sources of radiation required to be 37.5 registered during the last 12 months of a biennial registration 37.6 period will be 50 percent of the applicable registration fee 37.7 prescribed in subdivision 1a. 37.8 Sec. 10. [144.124] [TESTS OF NEWBORN INFANTS FOR HEARING 37.9 LOSS.] 37.10 Subdivision 1. [LEGISLATIVE DECLARATION AND POLICY.] (a) 37.11 The legislature hereby finds, determines, and declares: 37.12 (1) that hearing loss occurs in newborn infants more 37.13 frequently than any other health condition for which newborn 37.14 infant screening is currently required; 37.15 (2) that 80 percent of the language ability of a child is 37.16 established by the time the child is 18 months of age, and that 37.17 hearing is vitally important to the health development of 37.18 language skills; 37.19 (3) that early detection of either mild or severe hearing 37.20 loss in a child and early intervention has been determined to be 37.21 highly effective in facilitating a child's healthy development 37.22 in a manner consistent with the child's age and cognitive 37.23 ability; 37.24 (4) that children with hearing loss who do not receive 37.25 early intervention require special educational services, and 37.26 that the costs of such publicly funded services exceed the costs 37.27 of screening infants for hearing loss; and 37.28 (5) that appropriate testing and identification of newborn 37.29 infants with hearing loss will facilitate early intervention, 37.30 and may therefore promote the healthy development of children 37.31 and reduce public expenditures. 37.32 (b) For these reasons, the legislature declares that it is 37.33 the public policy of this state that every newborn infant should 37.34 be screened for hearing loss unless the parents object on the 37.35 grounds that a test would conflict with their religious beliefs. 37.36 Subd. 2. [PROGRAM IMPLEMENTATION.] (a) To accomplish the 38.1 goal of screening all newborn infants for hearing loss, the 38.2 commissioner of health shall work with hospitals, the medical 38.3 community, audiologists, insurance companies, parents, and deaf 38.4 and hard-of-hearing citizens to establish and implement a 38.5 voluntary plan for hospitals and other health care facilities to 38.6 screen all infants for hearing loss. 38.7 (b) The commissioner of health shall appoint a department 38.8 work group to make recommendations to the commissioner on 38.9 formulating a plan to achieve, on a voluntary basis, universal 38.10 screening of infants for hearing loss. The work group shall 38.11 include the following representatives: 38.12 (1) a representative of the health insurance industry 38.13 designated by the health insurance industry; 38.14 (2) a representative of the Minnesota hospital and 38.15 healthcare partnership; 38.16 (3) a total of two representatives from the following 38.17 physician groups designated by the Minnesota medical 38.18 association: pediatrics, family practice, and ENT; 38.19 (4) two audiologists designated by the Minnesota 38.20 speech-language-hearing association and the Minnesota academy of 38.21 audiology; 38.22 (5) a representative of hospital neonatal nurseries; 38.23 (6) a representative of Part H (IDEA) early childhood 38.24 special education; 38.25 (7) the commissioner of health or a designee; 38.26 (8) a representative of the department of human services; 38.27 (9) a public health nurse; 38.28 (10) a parent of a deaf or hard-of-hearing child; 38.29 (11) a deaf or hard-of-hearing person; and 38.30 (12) a representative of the Minnesota commission serving 38.31 deaf and hard-of-hearing people. 38.32 Members of the work group shall not collect a per diem or 38.33 compensation as provided in section 15.0575. 38.34 (c) The plan shall include the following: 38.35 (1) measurable goals and timetables for achieving universal 38.36 screening of infants for hearing loss throughout the state; and 39.1 (2) the design and implementation of training necessary to 39.2 assist hospitals and other health care facilities to screen 39.3 infants for hearing loss according to recognized standards of 39.4 care. 39.5 (d) The work group shall report to the legislature by 39.6 January 1, 1998, on progress made toward achieving universal 39.7 screening of infants in Minnesota to assist the legislature in 39.8 determining whether this goal can be accomplished on a voluntary 39.9 basis. 39.10 Sec. 11. Minnesota Statutes 1996, section 144.125, is 39.11 amended to read: 39.12 144.125 [TESTS OF INFANTS FOR INBORN METABOLIC ERRORS.] 39.13 It is the duty of (1) the administrative officer or other 39.14 person in charge of each institution caring for infants 28 days 39.15 or less of age and (2) the person required in pursuance of the 39.16 provisions of section 144.215, to register the birth of a child, 39.17 to cause to have administered to every infant or child in its 39.18 care tests for hemoglobinopathy, phenylketonuria, and other 39.19 inborn errors of metabolism in accordance with rules prescribed 39.20 by the state commissioner of health. In determining which tests 39.21 must be administered, the commissioner shall take into 39.22 consideration the adequacy of laboratory methods to detect the 39.23 inborn metabolic error, the ability to treat or prevent medical 39.24 conditions caused by the inborn metabolic error, and the 39.25 severity of the medical conditions caused by the inborn 39.26 metabolic error. Testing and the recording and reporting of the 39.27 results of the tests shall be performed at the times and in the 39.28 manner prescribed by the commissioner of health. The 39.29 commissioner shall charge laboratory service fees for conducting 39.30 the tests of infants for inborn metabolic errors so that the 39.31 total of fees collected will approximate the costs of conducting 39.32 the tests and implementing and maintaining a system to follow-up 39.33 infants with inborn metabolic errors. Costs associated with 39.34 capital expenditures and the development of new procedures may 39.35 be prorated over a three-year period when calculating the amount 39.36 of the fees. 40.1 Sec. 12. Minnesota Statutes 1996, section 144.2215, is 40.2 amended to read: 40.3 144.2215 [BIRTH DEFECTSREGISTRYINFORMATION SYSTEM.] 40.4 Subdivision 1. [ESTABLISHMENT.] The commissioner of health 40.5 shalldevelop a statewide birth defects registry system to40.6provide for the collection, analysis, and dissemination of birth40.7defects information. The commissioner shall consult with40.8representatives and experts in epidemiology, medicine,40.9insurance, health maintenance organizations, genetics,40.10consumers, and voluntary organizations in developing the system40.11and may phase in the implementation of the systemestablish a 40.12 statewide population-based birth defects information system to 40.13 collect, analyze, and disseminate information regarding the risk 40.14 for and incidence of birth defects. 40.15 Subd. 2. [DUTIES OF COMMISSIONER.] The commissioner of 40.16 health shall design the birth defects information system to 40.17 allow the commissioner to: 40.18 (1) monitor incidence trends of birth defects to detect 40.19 potential public health problems, predict risks, and assist in 40.20 responding to birth defects clusters; 40.21 (2) more accurately target intervention resources for 40.22 communities and individuals and their families after birth; 40.23 (3) inform health professionals and the public of the 40.24 prevalence of and risks for birth defects; and 40.25 (4) promote high quality research to provide better 40.26 information for the prevention of birth defects. 40.27 Subd. 3. [EXTERNAL RESEARCH.] (a) For purposes of this 40.28 subdivision, "external research" means any research other than 40.29 research performed by the commissioner of health pursuant to 40.30 sections 144.2215 to 144.2218. The commissioner may enter into 40.31 contracts with public and private research entities or with 40.32 individuals to conduct research using data collected pursuant to 40.33 sections 144.2215 to 144.2218. To enter into a contract with 40.34 the commissioner, the principal investigator of the research 40.35 entity or the individual must: 40.36 (1) demonstrate that the research would be conducted for 41.1 purposes consistent with subdivision 2; 41.2 (2) have obtained a professional or advanced academic 41.3 degree and have significant training and research experience in 41.4 epidemiology, medical research, or related areas; 41.5 (3) demonstrate that the research project has scientific 41.6 merit; and 41.7 (4) provide the commissioner with a detailed written 41.8 protocol which includes methods to maintain the privacy of the 41.9 data according to state law. 41.10 (b) The commissioner may provide personal identifying 41.11 information for external research only after obtaining the 41.12 consent of the individual, or the individual's parent or 41.13 guardian if the individual is a minor. External researchers are 41.14 prohibited from releasing any identifying information relating 41.15 to the individual or the reporting physician or institution. 41.16 (c) In determining whether an external researcher meets the 41.17 criteria in paragraph (a), the commissioner shall consult with a 41.18 scientific peer review committee consisting of at least five 41.19 persons. Each member of the committee must have a professional 41.20 or advanced academic degree and significant training and 41.21 research experience in epidemiology, medical research, or 41.22 related areas. 41.23 (d) After receiving a recommendation from the scientific 41.24 peer review committee in paragraph (c), the commissioner may 41.25 enter into a contract with the external researcher to perform 41.26 authorized research. The contract must include a provision 41.27 requiring the external researcher to maintain the privacy of the 41.28 data. 41.29 Subd. 4. [NOTICE.] Within 30 days after making a 41.30 determination to enter a case into the birth defects information 41.31 system, the commissioner of health shall make a reasonable 41.32 effort to notify the individual, or the individual's parent or 41.33 guardian if the individual is a minor, that data on the 41.34 individual has been entered into the system. 41.35 Subd. 5. [PILOT PROJECTS.] The commissioner of health 41.36 shall evaluate and modify, as necessary, the birth defects 42.1 information system using pilot projects. The commissioner shall 42.2 use the results of the pilot projects to implement a refined 42.3 birth defects information system statewide. 42.4 Subd. 6. [ADVISORY COMMITTEE.] The commissioner of health 42.5 shall appoint an advisory committee of 16 members to advise the 42.6 commissioner on the planning, implementation, evaluation, and 42.7 review of the birth defects information system. The terms, 42.8 compensation, and removal of members are governed by section 42.9 15.059, except that the members do not receive per diem 42.10 compensation. Members of the advisory committee shall represent 42.11 the geographical diversity of the state. Each of the following 42.12 experts and representatives must be represented in the advisory 42.13 committee: epidemiologist, public health specialist, physician, 42.14 medical ethicist, geneticist, health care provider, health 42.15 information management specialist, health insurance provider, 42.16 parent of a child with a birth defect, and a representative of 42.17 an organization that advocates for disabled individuals. The 42.18 advisory committee shall expire on June 30, 2001. 42.19 Subd. 7. [REPORT.] The commissioner of health shall 42.20 prepare and transmit to the governor and the legislature a 42.21 report on the status and activities of the birth defects 42.22 information system no later than January 15 of every 42.23 odd-numbered year beginning in 1999. 42.24 Subd. 8. [FEES.] The commissioner of health may assess 42.25 fees for the cost of preparing summary data, as defined in 42.26 section 13.02, subdivision 19, and for the cost of preparing 42.27 specific analyses of data requested by public and private 42.28 agencies, organizations, and individuals. Fees may be assessed 42.29 only if the out-of-pocket expenses exceed $100. For purposes of 42.30 this subdivision, "out-of-pocket expenses" includes hourly 42.31 employee wages, employee expenses, and other data processing and 42.32 duplication costs. 42.33 Sec. 13. [144.2216] [BIRTH DEFECTS RECORDS AND REPORTS 42.34 REQUIRED.] 42.35 Subdivision 1. [PERSON PRACTICING HEALING ARTS.] A person 42.36 licensed to practice the healing arts in any form, upon request 43.1 of the commissioner of health, shall provide the commissioner 43.2 with access to information or copies of reports on each birth 43.3 defect case, subject to the limitations in subdivision 6, in the 43.4 manner and at the times that the commissioner designates. 43.5 Subd. 2. [HOSPITALS AND SIMILAR INSTITUTIONS.] A hospital, 43.6 medical clinic, medical laboratory, or other institution for the 43.7 hospitalization, clinical or laboratory diagnosis, or care of 43.8 human beings shall provide the commissioner of health with 43.9 access to information or copies of reports on each birth defect 43.10 case, subject to the limitations in subdivision 6, in the manner 43.11 and at the times that the commissioner designates. This 43.12 subdivision does not apply to institutions described in section 43.13 144A.09, subdivision 1. 43.14 Subd. 3. [OTHER DATA REPOSITORIES.] Other repositories of 43.15 data on the diagnosis or care of human beings may provide the 43.16 commissioner of health with access to information or copies of 43.17 reports on each case of birth defects, subject to the 43.18 limitations in subdivision 6, in the manner and at the times 43.19 that the commissioner designates. 43.20 Subd. 4. [PATIENT CONSENT.] (a) For any release of health 43.21 records to the commissioner under subdivision 1, 2, or 3, 43.22 patient consent is not required pursuant to section 144.335, 43.23 subdivision 3a, paragraph (a). 43.24 (b) For any release of health records when the commissioner 43.25 contracts with an outside entity to conduct a study using data 43.26 collected by the birth defects information system, the 43.27 commissioner must comply with the requirements imposed on a 43.28 provider under section 144.335, subdivision 3a, paragraph (d). 43.29 Subd. 5. [REPORTING WITHOUT LIABILITY.] Any person, 43.30 hospital, medical clinic, medical laboratory, data repository, 43.31 or other institution furnishing information under this section, 43.32 in good faith, is immune from liability in any civil, criminal, 43.33 administrative, or disciplinary action. 43.34 Subd. 6. [RELIGIOUS ACCOMMODATION.] A parent or guardian 43.35 of an infant with birth defects may refuse disclosure to the 43.36 information system of the infant's name and identifying 44.1 information on the grounds that such birth defect identification 44.2 is contrary to the religious tenets and practices of the 44.3 infant's parent or guardian. 44.4 Subd. 7. [DATA COLLECTION.] Data shall not be collected 44.5 sooner than the expected birth date of the child. In the case 44.6 of pilot projects under section 144.2215, subdivision 5, data 44.7 shall only be collected on individuals born on or after July 1, 44.8 1995. In the case of data collected under this section when the 44.9 system has been implemented statewide, data shall only be 44.10 collected on individuals born on or after July 1, 1997. The 44.11 commissioner shall consult with the advisory committee 44.12 established under section 144.2215, subdivision 6, in 44.13 determining the type and scope of birth defects data to be 44.14 collected for the birth defects information system. 44.15 Sec. 14. [144.2217] [CLASSIFICATION OF BIRTH DEFECTS 44.16 INFORMATION SYSTEM DATA.] 44.17 All data on individuals, including the names and personal 44.18 identifiers of persons who report under section 144.2216, 44.19 created, collected, received, or maintained by the commissioner 44.20 of health for the birth defects information system are health 44.21 data as defined in section 13.38. 44.22 Sec. 15. [144.2218] [TRANSFERS OF BIRTH DEFECTS 44.23 INFORMATION SYSTEM DATA TO OTHER GOVERNMENT AGENCIES.] 44.24 Subdivision 1. [INTERSTATE TRANSFERS OF DATA.] If the 44.25 commissioner of health obtains the prior consent of the 44.26 individual, or the individual's parent or guardian if the 44.27 individual is a minor, data collected by the birth defects 44.28 information system may be disseminated to a state government 44.29 agency in another state upon determination by the commissioner 44.30 that: 44.31 (1) the subject of the data is a resident of the other 44.32 state; 44.33 (2) the agency in the other state is authorized under its 44.34 state law to use the data solely for purposes consistent with 44.35 sections 144.2215 to 144.2218; and 44.36 (3) the agency in the other state is required under its 45.1 state law to maintain the privacy of the data. 45.2 Subd. 2. [INTRASTATE TRANSFERS OF DATA.] Data collected by 45.3 the birth defects information system may be disseminated to 45.4 another state government agency in this state upon determination 45.5 by the commissioner of health that another state government 45.6 agency could assist an individual registered in the system in 45.7 gaining access to social, educational, or medical services for 45.8 which the individual is eligible if the commissioner of health 45.9 obtains the prior consent of the individual. 45.10 Sec. 16. Minnesota Statutes 1996, section 144.226, 45.11 subdivision 1, is amended to read: 45.12 Subdivision 1. [WHICH SERVICES ARE FOR FEE.] The fees 45.13 forany ofthe following services shall beinthe following or 45.14 an amount prescribed by rule of the commissioner: 45.15 (a) The fee for the issuance of a certified copy or 45.16 certification of a vital record, or a certification that the 45.17 record cannot be found;is $8. No fee shall be charged for a 45.18 certified birth or death record that is reissued within one year 45.19 of the original issue, if the previously issued record is 45.20 surrendered. 45.21 (b) The fee for the replacement of a birthcertificate;45.22 record for all events except adoption is $20. 45.23 (c) The fee for the filing of a delayed registration of 45.24 birth or death;is $20. 45.25 (d) Thealteration, correction, or completionfee for the 45.26 amendment of any vital record, provided thatwhen requested more 45.27 than one year after the filing of the record is $20. No fee 45.28 shall be charged for analteration, correction, or45.29completionamendment requested within one year after the filing 45.30 of the certificate; and. 45.31 (e) The fee for the verification of information fromor45.32noncertified copies ofvital records is $8 when the applicant 45.33 furnishes the specific information to locate the record. When 45.34 the applicant does not furnish specific information, the fee is 45.35 $20 per hour for staff time expended. Specific information 45.36 shall include the correct date of the event and the correct name 46.1 of the registrant. Fees charged shall approximate the costs 46.2 incurred in searching and copying the records. The fee shall be 46.3 payable at time of application. 46.4 (f) The fee for issuance of a certified or noncertified 46.5 copy of any document on file pertaining to a vital record or a 46.6 certification that the record cannot be found is $8. 46.7 Sec. 17. Minnesota Statutes 1996, section 144.226, is 46.8 amended by adding a subdivision to read: 46.9 Subd. 4. [VITAL RECORDS SURCHARGE.] In addition to any fee 46.10 prescribed under subdivision 1, there is a nonrefundable 46.11 surcharge of $3 for each certified and noncertified birth or 46.12 death record. The local or state registrar shall forward this 46.13 amount to the state treasurer to be deposited into the state 46.14 government special revenue fund. This surcharge shall not be 46.15 charged under those circumstances in which no fee for a birth or 46.16 death record is permitted under subdivision 1, paragraph (a). 46.17 This surcharge requirement expires June 30, 2002. 46.18 Sec. 18. Minnesota Statutes 1996, section 144.394, is 46.19 amended to read: 46.20 144.394 [SMOKING PREVENTIONHEALTH PROMOTION AND 46.21 EDUCATION.] 46.22 The commissioner may sell at market value,allnonsmoking46.23or tobacco use prevention advertisinghealth promotion and 46.24 health education materials. Proceeds from the sale of the 46.25advertisingmaterials are appropriated to the department of 46.26 health forits nonsmokingthe program that developed the 46.27 material. 46.28 Sec. 19. [145A.16] [UNIVERSALLY OFFERED HOME VISITING 46.29 PROGRAMS FOR INFANT CARE.] 46.30 Subdivision 1. [ESTABLISHMENT.] The commissioner shall 46.31 establish a grant program for universally offered home visiting 46.32 programs funded at a level that could serve, if accepted, all 46.33 live births in designated geographic areas. The commissioner 46.34 shall designate the geographic area to be served by each 46.35 program. At least one program must provide home visiting 46.36 services to families within the seven-county metropolitan area, 47.1 and at least one program must provide home visiting services to 47.2 families outside the metropolitan area. The purpose of the 47.3 program is to strengthen families and to promote positive 47.4 parenting and healthy child development. 47.5 Subd. 2. [STEERING COMMITTEE.] The commissioner shall 47.6 establish an ad hoc steering committee to develop and implement 47.7 a comprehensive plan for the universally offered home visiting 47.8 programs. The members of the ad hoc steering committee shall 47.9 include, at a minimum, representatives of local public health 47.10 departments, public health nurses, other health care providers, 47.11 paraprofessionals, community-based family workers, 47.12 representatives of health insurance plans, and other individuals 47.13 with expertise in the field of home visiting, early childhood 47.14 health and development, and child abuse prevention. 47.15 Subd. 3. [PROGRAM REQUIREMENTS.] The commissioner shall 47.16 award grants using a request for proposal system. Existing home 47.17 visiting programs may apply for the grants. Health information 47.18 and assessment, counseling, social support, educational 47.19 services, and referral to community resources must be offered to 47.20 all families, regardless of need or risk, beginning prenatally 47.21 or as soon after birth as possible, and continuing as needed. 47.22 Each program applying for a grant must have access to adequate 47.23 community resources to complement the home visiting services and 47.24 must be designed to: 47.25 (1) identify all newborn infants within the geographic area 47.26 served by the program. Identification may be made prenatally or 47.27 at the time of birth; 47.28 (2) offer a home visit by a trained home visitor. If home 47.29 visiting is accepted, the first visit must occur prenatally or 47.30 as soon after birth as possible and must include a public health 47.31 nursing assessment by a public health nurse; 47.32 (3) offer, at a minimum, information on infant care, child 47.33 growth and development, positive parenting, the prevention of 47.34 disease and exposure to environmental hazards, and support 47.35 services available in the community; 47.36 (4) provide information about and referral to health care 48.1 services, if needed, including family planning, pediatric 48.2 preventive services, immunizations, and developmental 48.3 assessments, and provide information on the availability of 48.4 public assistance programs as appropriate; 48.5 (5) recruit home visit workers who will represent, to the 48.6 extent possible, all the races, cultures, and languages spoken 48.7 by eligible families in the designated geographic areas; and 48.8 (6) train and supervise home visitors according to the 48.9 requirements established under subdivision 5. 48.10 Subd. 4. [COORDINATION.] To minimize duplication, a 48.11 program receiving a grant must establish a coalition that 48.12 includes parents, health care providers that provide services to 48.13 families with young children in the service area, and 48.14 representatives of local schools, governmental and nonprofit 48.15 agencies, community-based organizations, health insurance plans, 48.16 and local hospitals. The coalition must designate the roles of 48.17 all provider agencies, family identification methods, referral 48.18 mechanisms, and payment responsibilities appropriate for the 48.19 existing systems in the program's service area. The coalition 48.20 must also coordinate with other programs offered by school 48.21 boards under section 121.882, subdivision 2b, and programs 48.22 offered under section 145A.15. 48.23 Subd. 5. [TRAINING.] The commissioner shall establish 48.24 training requirements for home visitors and minimum requirements 48.25 for supervision by a public health nurse. The requirements for 48.26 nurses must be consistent with chapter 148. Training must 48.27 include child development, positive parenting techniques, and 48.28 diverse cultural practices in child rearing and family systems. 48.29 A program may use grant money to train home visitors. 48.30 Subd. 6. [EVALUATION.] (a) The commissioner shall evaluate 48.31 the effectiveness of the home visiting programs, taking into 48.32 consideration the following goals: 48.33 (1) appropriate child growth, development, and access to 48.34 health care; 48.35 (2) appropriate utilization of preventive health care and 48.36 medical care for acute illnesses; 49.1 (3) lower rates of substantiated child abuse and neglect; 49.2 (4) up-to-date immunizations; 49.3 (5) a reduction in unintended pregnancies; 49.4 (6) increasing families' understanding of lead poisoning 49.5 prevention; 49.6 (7) lower rates of unintentional injuries; and 49.7 (8) fewer hospitalizations and emergency room visits. 49.8 (b) The commissioner shall report to the legislature by 49.9 February 15, 1998, on the comprehensive plan for the universally 49.10 offered home visiting programs and recommend any draft 49.11 legislation needed to implement the plan. The commissioner 49.12 shall report to the legislature biennially beginning December 49.13 15, 2001, on the effectiveness of the universally offered home 49.14 visiting programs. In the report due December 15, 2001, the 49.15 commissioner shall include recommendations on the feasibility 49.16 and cost of expanding the program statewide. 49.17 Subd. 7. [TECHNICAL ASSISTANCE.] The commissioner shall 49.18 provide administrative and technical assistance to each program, 49.19 including assistance conducting short- and long-term evaluations 49.20 of the home visiting program required under subdivision 6. The 49.21 commissioner may request research and evaluation support from 49.22 the University of Minnesota. 49.23 Subd. 8. [MATCHING FUNDS.] The commissioner and the grant 49.24 programs shall seek to supplement any state funding with private 49.25 and other nonstate funding sources, including other grants and 49.26 insurance coverage for services provided. Program funding may 49.27 be used only to supplement, not to replace, existing funds being 49.28 used for home visiting. 49.29 Sec. 20. Minnesota Statutes 1996, section 153A.17, is 49.30 amended to read: 49.31 153A.17 [EXPENSES; FEES.] 49.32 The expenses for administering the certification 49.33 requirements including the complaint handling system for hearing 49.34 aid dispensers in sections 153A.14 and 153A.15 and the consumer 49.35 information center under section 153A.18 must be paid from 49.36 initial application and examination fees, renewal fees, 50.1 penalties, and fines. All fees are nonrefundable. The 50.2 certificate application fee is$280$165 for audiologists 50.3 registered under section 148.511 and $490 for all others, the 50.4 examination fee is $200 for the written portion and $200 for the 50.5 practical portion each time one or the other is taken, and the 50.6 trainee application fee is $100, except that the certification50.7application fee for a registered audiologist is $280 minus the50.8audiologist registration fee of $101.In addition, both50.9certification and examination fees are subject to50.10 Notwithstanding the policy set forth in section 16A.1285, 50.11 subdivision 2, a surcharge of$60$165 for audiologists 50.12 registered under section 148.511 et seq. and $330 for all other 50.13 shall be paid at the time of application or renewal until June 50.14 30, 2003, to recover, over a five-year period,the 50.15 commissioner's accumulated direct expenditures for administering 50.16 the requirements of this chapter, but not registration of50.17hearing instrument dispensers under section 214.13, before50.18November 1, 1994. The penalty fee for late submission of a 50.19 renewal application is$70$200. All fees, penalties, and fines 50.20 received must be deposited in the state government special 50.21 revenue fund. The commissioner may prorate the certification 50.22 fee for new applicants based on the number of quarters remaining 50.23 in the annual certification period. 50.24 Sec. 21. Minnesota Statutes 1996, section 157.16, 50.25 subdivision 3, is amended to read: 50.26 Subd. 3. [ESTABLISHMENT FEES; DEFINITIONS.] (a) The 50.27 following fees are required for food and beverage service 50.28 establishments, hotels, motels, lodging establishments, and 50.29 resorts licensed under this chapter. Food and beverage service 50.30 establishments must pay the highest applicable fee under 50.31 paragraph (e), clause (1), (2), (3), or (4), and establishments 50.32 serving alcohol must pay the highest applicable fee under 50.33 paragraph (e), clause (6) or (7). 50.34 (b) All food and beverage service establishments, except 50.35 special event food stands, and all hotels, motels, lodging 50.36 establishments, and resorts shall pay an annual base fee of $100. 51.1 (c) A special event food stand shall pay a flat fee of $60 51.2 annually. "Special event food stand" means a fee category where 51.3 food is prepared or served in conjunction with celebrations, 51.4 county fairs, or special events from a special event food stand 51.5 as defined in section 157.15. 51.6 (d) A special event food stand-limited shall pay a flat fee 51.7 of $30. 51.8 (e) In addition to the base fee in paragraph (b), each food 51.9 and beverage service establishment, other than a special event 51.10 food stand, and each hotel, motel, lodging establishment, and 51.11 resort shall pay an additional annual fee for each fee category 51.12 as specified in this paragraph: 51.13 (1) Limited food menu selection, $30. "Limited food menu 51.14 selection" means a fee category that provides one or more of the 51.15 following: 51.16 (i) prepackaged food that receives heat treatment and is 51.17 served in the package; 51.18 (ii) frozen pizza that is heated and served; 51.19 (iii) a continental breakfast such as rolls, coffee, juice, 51.20 milk, and cold cereal; 51.21 (iv) soft drinks, coffee, or nonalcoholic beverages; or 51.22 (v) cleaning for eating, drinking, or cooking utensils, 51.23 when the only food served is prepared off site. 51.24 (2) Smallmenu selection with limited equipment51.25 establishment, including boarding establishments, $55. 51.26 "Smallmenu selection with limited equipmentestablishment" 51.27 means a fee category that has no salad bar and meets one or more 51.28 of the following: 51.29 (i) possesses food service equipment that consists of no 51.30 more than a deep fat fryer, a grill, two hot holding containers, 51.31 and one or more microwave ovens; 51.32 (ii) serves dipped ice cream or soft serve frozen desserts; 51.33 (iii) serves breakfast in an owner-occupied bed and 51.34 breakfast establishment;or51.35 (iv) is a boarding establishment; or 51.36 (v) meets the equipment criteria in clause (3), item (i) or 52.1 (ii), and has a maximum patron seating capacity of not more than 52.2 50. 52.3 (3)SmallMedium establishmentwith full menu selection, 52.4 $150. "SmallMedium establishmentwith full menu selection" 52.5 means a fee category that meets one or more of the following: 52.6 (i) possesses food service equipment that includes a range, 52.7 oven, steam table, salad bar, or salad preparation area; 52.8 (ii) possesses food service equipment that includes more 52.9 than one deep fat fryer, one grill, or two hot holding 52.10 containers; or 52.11 (iii) is an establishment where food is prepared at one 52.12 location and served at one or more separate locations. 52.13 Establishments meeting criteria in clause (2), item (v), 52.14 are not included in this fee category. 52.15 (4) Large establishmentwith full menu selection, $250. 52.16 "Large establishmentwith full menu selection" means either: 52.17 (i) a fee category that (A) meets the criteria in clause 52.18 (3), items (i) or (ii), for asmallmedium establishmentwith52.19full menu selection, (B) seats more than 175 people, and (C) 52.20 offers the full menu selection an average of five or more days a 52.21 week during the weeks of operation; or 52.22 (ii) a fee category that (A) meets the criteria in clause 52.23 (3), item (iii), for asmallmedium establishmentwith full menu52.24selection, and (B) prepares and serves 500 or more meals per day. 52.25 (5) Other food and beverage service, including food carts, 52.26 mobile food units, seasonal temporary food stands, and seasonal 52.27 permanent food stands, $30. 52.28 (6) Beer or wine table service, $30. "Beer or wine table 52.29 service" means a fee category where the only alcoholic beverage 52.30 service is beer or wine, served to customers seated at tables. 52.31 (7) Alcoholic beverage service, other than beer or wine 52.32 table service, $75. 52.33 "Alcohol beverage service, other than beer or wine table 52.34 service" means a fee category where alcoholic mixed drinks are 52.35 served or where beer or wine are served from a bar. 52.36 (8) Lodging per sleeping accommodation unit, $4, including 53.1 hotels, motels, lodging establishments, and resorts, up to a 53.2 maximum of $400. "Lodging per sleeping accommodation unit" 53.3 means a fee category including the number of guest rooms, 53.4 cottages, or other rental units of a hotel, motel, lodging 53.5 establishment, or resort; or the number of beds in a dormitory. 53.6 (9) First public swimming pool, $100; each additional 53.7 public swimming pool, $50. "Public swimming pool" means a fee 53.8 category that has the meaning given in Minnesota Rules, part 53.9 4717.0250, subpart 8. 53.10 (10) First spa, $50; each additional spa, $25. "Spa pool" 53.11 means a fee category that has the meaning given in Minnesota 53.12 Rules, part 4717.0250, subpart 9. 53.13 (11) Private sewer or water, $30. "Individual private 53.14 water" means a fee category with a water supply other than a 53.15 community public water supply as defined in Minnesota Rules, 53.16 chapter 4720. "Individual private sewer" means a fee category 53.17 with an individual sewage treatment system which uses subsurface 53.18 treatment and disposal. 53.19 (f) A fee is not required for a food and beverage service 53.20 establishment operated by a school as defined in sections 120.05 53.21 and 120.101. 53.22 (g) A fee of $150 for review of the construction plans must 53.23 accompany the initial license application for food and beverage 53.24 service establishments, hotels, motels, lodging establishments, 53.25 or resorts. 53.26 (h) When existing food and beverage service establishments, 53.27 hotels, motels, lodging establishments, or resorts are 53.28 extensively remodeled, a fee of $150 must be submitted with the 53.29 remodeling plans. 53.30 (i) Seasonal temporary food stands, special event food 53.31 stands, and special event food stands-limited are not required 53.32 to submit construction or remodeling plans for review. 53.33 Sec. 22. [157.25] [FOOD SAFETY QUALITY ASSURANCE.] 53.34 Subdivision 1. [DEFINITIONS.] For purposes of this 53.35 section, the following terms have the meanings given them: 53.36 (1) "critical control point" means a point or procedure in 54.1 a specific food system where loss of control may result in an 54.2 unacceptable health risk; 54.3 (2) "HACCP" means hazard analysis critical control point; 54.4 (3) "HACCP plan" means a written document that delineates 54.5 the formal procedures for following the HACCP principles 54.6 developed by the national advisory committee on microbiological 54.7 criteria for foods; and 54.8 (4) "hazard" means any biological, chemical, or physical 54.9 property that may cause an unacceptable consumer health risk. 54.10 Subd. 2. [PILOT PROJECT.] The commissioner of health shall 54.11 request proposals from the regulated food and beverage service 54.12 establishment industry to participate in a cooperative effort to 54.13 develop HACCP plans using quality assurance principles for 54.14 monitoring risks and hazards. The commissioner shall select up 54.15 to 25 proposals for HACCP plans. 54.16 Sec. 23. Minnesota Statutes 1996, section 326.37, 54.17 subdivision 1, is amended to read: 54.18 Subdivision 1. [RULES.] The state commissioner of health 54.19 may, by rule, prescribe minimum standards which shall be 54.20 uniform, and which standards shall thereafter be effective for 54.21 all new plumbing installations, including additions, extensions, 54.22 alterations, and replacements connected with any water or sewage 54.23 disposal system owned or operated by or for any municipality, 54.24 institution, factory, office building, hotel, apartment 54.25 building, or any other place of business regardless of location 54.26 or the population of the city or town in which located. 54.27 Notwithstanding the provisions of Minnesota Rules, part 54.28 4715.3130, as they apply to review of plans and specifications, 54.29 the commissioner may allow plumbing construction, alteration, or 54.30 extension to proceed without approval of the plans or 54.31 specifications by the commissioner. 54.32 The commissioner shall administer the provisions of 54.33 sections 326.37 to 326.45 and for such purposes may employ 54.34 plumbing inspectors and other assistants. 54.35 Sec. 24. [AMERICAN INDIAN DIABETES PREVENTION ADVISORY 54.36 TASK FORCE.] 55.1 Subdivision 1. [ESTABLISHMENT.] The commissioner of health 55.2 shall convene an American Indian diabetes prevention advisory 55.3 task force. The task force must include representatives from 55.4 the American Indian tribes located in the state and urban 55.5 American Indian representatives. 55.6 Subd. 2. [DUTIES.] The task force shall advise the 55.7 commissioner on the adaptation of curricula and the 55.8 dissemination of information designed to reduce the risk factors 55.9 associated with diabetes among American Indian school children 55.10 in grades 1 through 4. The curricula and information must be 55.11 sensitive to traditional American Indian values and culture and 55.12 must encourage full participation by the American Indian 55.13 community. 55.14 Sec. 25. [RULE CHANGE; RADIOGRAPHIC ABSORPTIONMETRY.] 55.15 The commissioner of health shall amend Minnesota Rules, 55.16 part 4730.1210, subpart 2, item G, to permit the use of direct 55.17 exposure x-ray film in radiographic absorptionmetry for the 55.18 diagnosis and management of osteoporosis. The commissioner may 55.19 use the rulemaking procedures under Minnesota Statutes, section 55.20 14.388. 55.21 Sec. 26. [MINORITY HEALTH INITIATIVE.] 55.22 Subdivision 1. [PURPOSE.] The purpose of this section is 55.23 to plan for the expansion and increase of information and 55.24 statistical research on minority health in Minnesota. The plan 55.25 must build upon the recommendations of the 1997 populations of 55.26 color in Minnesota health status report. 55.27 Subd. 2. [REPORT TO THE LEGISLATURE.] (a) The commissioner 55.28 of health, through the office of minority health, shall prepare 55.29 and transmit to the legislature, according to Minnesota 55.30 Statutes, section 3.195, and no later than January 15, 1998, a 55.31 written report addressing the following: 55.32 (1) identifying the legal and administrative barriers that 55.33 hinder the sharing of information among executive branch 55.34 agencies, and recommending remedies to these barriers; 55.35 (2) assessing the current database of information on 55.36 minority health issues, evaluating data collection standards and 56.1 procedures in the department of health, identifying minority 56.2 health issues that should be given priority for increased 56.3 research to close the gaps and disparities including cancer 56.4 incidence among populations of color, and recommending methods 56.5 for expanding the current database of information on minority 56.6 health; and 56.7 (3) planning a grant program targeted at supporting 56.8 minority health and wellness programs that focus on prevention 56.9 of illness and disease, health education, and health promotion. 56.10 (b) As part of the report in paragraph (a), the 56.11 commissioner, through the office of minority health, shall study 56.12 how the department of health could be better organized to 56.13 accomplish the tasks specified in paragraph (a) and shall 56.14 propose an organizational structure to accomplish these tasks. 56.15 (c) The commissioner, through the office of minority 56.16 health, may appoint advisory committees as appropriate to 56.17 accomplish the tasks in paragraphs (a) and (b). The terms, 56.18 compensation, and removal of members are governed by Minnesota 56.19 Statutes, section 15.059, except that members do not receive per 56.20 diem compensation. 56.21 Sec. 27. [REPORT TO LEGISLATURE.] 56.22 By July 1, 1999, the emergency medical services regulatory 56.23 board shall submit to the legislature a comprehensive proposal 56.24 for regulating ambulance service rates. 56.25 Sec. 28. [REPORT REQUIRED; CALS PROGRAM.] 56.26 The emergency medical services regulatory board, by 56.27 December 1, 1999, shall report to the chairs of the house health 56.28 and human services finance division and the senate health and 56.29 family security finance division on the implementation of the 56.30 comprehensive advanced life support (CALS) program or similar 56.31 program. 56.32 Sec. 29. [EFFECTIVE DATE.] 56.33 Sections 3 to 5 are effective July 1, 1998. 56.34 ARTICLE 3 56.35 LONG-TERM CARE FACILITIES 56.36 Section 1. Minnesota Statutes 1996, section 144A.071, 57.1 subdivision 1, is amended to read: 57.2 Subdivision 1. [FINDINGS.] The legislature declares that a 57.3 moratorium on the licensure and medical assistance certification 57.4 of new nursing home beds and construction projects that 57.5 exceedthe lesser of $500,000 or 25 percent of a facility's57.6appraised value$1,000,000 is necessary to control nursing home 57.7 expenditure growth and enable the state to meet the needs of its 57.8 elderly by providing high quality services in the most 57.9 appropriate manner along a continuum of care. 57.10 Sec. 2. Minnesota Statutes 1996, section 144A.071, 57.11 subdivision 2, is amended to read: 57.12 Subd. 2. [MORATORIUM.] The commissioner of health, in 57.13 coordination with the commissioner of human services, shall deny 57.14 each request for new licensed or certified nursing home or 57.15 certified boarding care beds except as provided in subdivision 3 57.16 or 4a, or section 144A.073. "Certified bed" means a nursing 57.17 home bed or a boarding care bed certified by the commissioner of 57.18 health for the purposes of the medical assistance program, under 57.19 United States Code, title 42, sections 1396 et seq. 57.20 The commissioner of human services, in coordination with 57.21 the commissioner of health, shall deny any request to issue a 57.22 license under section 252.28 and chapter 245A to a nursing home 57.23 or boarding care home, if that license would result in an 57.24 increase in the medical assistance reimbursement amount. 57.25 In addition, the commissioner of health must not approve 57.26 any construction project whose cost exceeds$500,000, or 2557.27percent of the facility's appraised value, whichever is less,57.28 $1,000,000 unless: 57.29 (a) any construction costs exceedingthe lesser of $500,00057.30or 25 percent of the facility's appraised value$1,000,000 are 57.31 not added to the facility's appraised value and are not included 57.32 in the facility's payment rate for reimbursement under the 57.33 medical assistance program; or 57.34 (b) the project: 57.35 (1) has been approved through the process described in 57.36 section 144A.073; 58.1 (2) meets an exception in subdivision 3 or 4a; 58.2 (3) is necessary to correct violations of state or federal 58.3 law issued by the commissioner of health; 58.4 (4) is necessary to repair or replace a portion of the 58.5 facility that was damaged by fire, lightning, groundshifts, or 58.6 other such hazards, including environmental hazards, provided 58.7 that the provisions of subdivision 4a, clause (a), are met; 58.8 (5) as of May 1, 1992, the facility has submitted to the 58.9 commissioner of health written documentation evidencing that the 58.10 facility meets the "commenced construction" definition as 58.11 specified in subdivision 1a, clause (d), or that substantial 58.12 steps have been taken prior to April 1, 1992, relating to the 58.13 construction project. "Substantial steps" require that the 58.14 facility has made arrangements with outside parties relating to 58.15 the construction project and include the hiring of an architect 58.16 or construction firm, submission of preliminary plans to the 58.17 department of health or documentation from a financial 58.18 institution that financing arrangements for the construction 58.19 project have been made; or 58.20 (6) is being proposed by a licensed nursing facility that 58.21 is not certified to participate in the medical assistance 58.22 program and will not result in new licensed or certified beds. 58.23 Prior to the final plan approval of any construction 58.24 project, the commissioner of health shall be provided with an 58.25 itemized cost estimate for the project construction costs. If a 58.26 construction project is anticipated to be completed in phases, 58.27 the total estimated cost of all phases of the project shall be 58.28 submitted to the commissioner and shall be considered as one 58.29 construction project. Once the construction project is 58.30 completed and prior to the final clearance by the commissioner, 58.31 the total project construction costs for the construction 58.32 project shall be submitted to the commissioner. If the final 58.33 project construction cost exceeds the dollar threshold in this 58.34 subdivision, the commissioner of human services shall not 58.35 recognize any of the project construction costs or the related 58.36 financing costs in excess of this threshold in establishing the 59.1 facility's property-related payment rate. 59.2 The dollar thresholds for construction projects are as 59.3 follows: for construction projects other than those authorized 59.4 in clauses (1) to (6), the dollar threshold is$500,000 or 2559.5percent of appraised value, whichever is less$1,000,000. For 59.6 projects authorized after July 1, 1993, under clause (1), the 59.7 dollar threshold is the cost estimate submitted with a proposal 59.8 for an exception under section 144A.073, plus inflation as 59.9 calculated according to section 256B.431, subdivision 3f, 59.10 paragraph (a). For projects authorized under clauses (2) to 59.11 (4), the dollar threshold is the itemized estimate project 59.12 construction costs submitted to the commissioner of health at 59.13 the time of final plan approval, plus inflation as calculated 59.14 according to section 256B.431, subdivision 3f, paragraph (a). 59.15 The commissioner of health shall adopt rules to implement 59.16 this section or to amend the emergency rules for granting 59.17 exceptions to the moratorium on nursing homes under section 59.18 144A.073. 59.19 Sec. 3. Minnesota Statutes 1996, section 144A.071, 59.20 subdivision 4a, is amended to read: 59.21 Subd. 4a. [EXCEPTIONS FOR REPLACEMENT BEDS.] It is in the 59.22 best interest of the state to ensure that nursing homes and 59.23 boarding care homes continue to meet the physical plant 59.24 licensing and certification requirements by permitting certain 59.25 construction projects. Facilities should be maintained in 59.26 condition to satisfy the physical and emotional needs of 59.27 residents while allowing the state to maintain control over 59.28 nursing home expenditure growth. 59.29 The commissioner of health in coordination with the 59.30 commissioner of human services, may approve the renovation, 59.31 replacement, upgrading, or relocation of a nursing home or 59.32 boarding care home, under the following conditions: 59.33 (a) to license or certify beds in a new facility 59.34 constructed to replace a facility or to make repairs in an 59.35 existing facility that was destroyed or damaged after June 30, 59.36 1987, by fire, lightning, or other hazard provided: 60.1 (i) destruction was not caused by the intentional act of or 60.2 at the direction of a controlling person of the facility; 60.3 (ii) at the time the facility was destroyed or damaged the 60.4 controlling persons of the facility maintained insurance 60.5 coverage for the type of hazard that occurred in an amount that 60.6 a reasonable person would conclude was adequate; 60.7 (iii) the net proceeds from an insurance settlement for the 60.8 damages caused by the hazard are applied to the cost of the new 60.9 facility or repairs; 60.10 (iv) the new facility is constructed on the same site as 60.11 the destroyed facility or on another site subject to the 60.12 restrictions in section 144A.073, subdivision 5; 60.13 (v) the number of licensed and certified beds in the new 60.14 facility does not exceed the number of licensed and certified 60.15 beds in the destroyed facility; and 60.16 (vi) the commissioner determines that the replacement beds 60.17 are needed to prevent an inadequate supply of beds. 60.18 Project construction costs incurred for repairs authorized under 60.19 this clause shall not be considered in the dollar threshold 60.20 amount defined in subdivision 2; 60.21 (b) to license or certify beds that are moved from one 60.22 location to another within a nursing home facility, provided the 60.23 total costs of remodeling performed in conjunction with the 60.24 relocation of beds does not exceed25 percent of the appraised60.25value of the facility or $500,000, whichever is less$1,000,000; 60.26 (c) to license or certify beds in a project recommended for 60.27 approval under section 144A.073; 60.28 (d) to license or certify beds that are moved from an 60.29 existing state nursing home to a different state facility, 60.30 provided there is no net increase in the number of state nursing 60.31 home beds; 60.32 (e) to certify and license as nursing home beds boarding 60.33 care beds in a certified boarding care facility if the beds meet 60.34 the standards for nursing home licensure, or in a facility that 60.35 was granted an exception to the moratorium under section 60.36 144A.073, and if the cost of any remodeling of the facility does 61.1 not exceed25 percent of the appraised value of the facility or61.2$500,000, whichever is less$1,000,000. If boarding care beds 61.3 are licensed as nursing home beds, the number of boarding care 61.4 beds in the facility must not increase beyond the number 61.5 remaining at the time of the upgrade in licensure. The 61.6 provisions contained in section 144A.073 regarding the upgrading 61.7 of the facilities do not apply to facilities that satisfy these 61.8 requirements; 61.9 (f) to license and certify up to 40 beds transferred from 61.10 an existing facility owned and operated by the Amherst H. Wilder 61.11 Foundation in the city of St. Paul to a new unit at the same 61.12 location as the existing facility that will serve persons with 61.13 Alzheimer's disease and other related disorders. The transfer 61.14 of beds may occur gradually or in stages, provided the total 61.15 number of beds transferred does not exceed 40. At the time of 61.16 licensure and certification of a bed or beds in the new unit, 61.17 the commissioner of health shall delicense and decertify the 61.18 same number of beds in the existing facility. As a condition of 61.19 receiving a license or certification under this clause, the 61.20 facility must make a written commitment to the commissioner of 61.21 human services that it will not seek to receive an increase in 61.22 its property-related payment rate as a result of the transfers 61.23 allowed under this paragraph; 61.24 (g) to license and certify nursing home beds to replace 61.25 currently licensed and certified boarding care beds which may be 61.26 located either in a remodeled or renovated boarding care or 61.27 nursing home facility or in a remodeled, renovated, newly 61.28 constructed, or replacement nursing home facility within the 61.29 identifiable complex of health care facilities in which the 61.30 currently licensed boarding care beds are presently located, 61.31 provided that the number of boarding care beds in the facility 61.32 or complex are decreased by the number to be licensed as nursing 61.33 home beds and further provided that, if the total costs of new 61.34 construction, replacement, remodeling, or renovation exceed ten 61.35 percent of the appraised value of the facility or $200,000, 61.36 whichever is less, the facility makes a written commitment to 62.1 the commissioner of human services that it will not seek to 62.2 receive an increase in its property-related payment rate by 62.3 reason of the new construction, replacement, remodeling, or 62.4 renovation. The provisions contained in section 144A.073 62.5 regarding the upgrading of facilities do not apply to facilities 62.6 that satisfy these requirements; 62.7 (h) to license as a nursing home and certify as a nursing 62.8 facility a facility that is licensed as a boarding care facility 62.9 but not certified under the medical assistance program, but only 62.10 if the commissioner of human services certifies to the 62.11 commissioner of health that licensing the facility as a nursing 62.12 home and certifying the facility as a nursing facility will 62.13 result in a net annual savings to the state general fund of 62.14 $200,000 or more; 62.15 (i) to certify, after September 30, 1992, and prior to July 62.16 1, 1993, existing nursing home beds in a facility that was 62.17 licensed and in operation prior to January 1, 1992; 62.18 (j) to license and certify new nursing home beds to replace 62.19 beds in a facility condemned as part of an economic 62.20 redevelopment plan in a city of the first class, provided the 62.21 new facility is located within one mile of the site of the old 62.22 facility. Operating and property costs for the new facility 62.23 must be determined and allowed under existing reimbursement 62.24 rules; 62.25 (k) to license and certify up to 20 new nursing home beds 62.26 in a community-operated hospital and attached convalescent and 62.27 nursing care facility with 40 beds on April 21, 1991, that 62.28 suspended operation of the hospital in April 1986. The 62.29 commissioner of human services shall provide the facility with 62.30 the same per diem property-related payment rate for each 62.31 additional licensed and certified bed as it will receive for its 62.32 existing 40 beds; 62.33 (l) to license or certify beds in renovation, replacement, 62.34 or upgrading projects as defined in section 144A.073, 62.35 subdivision 1, so long as the cumulative total costs of the 62.36 facility's remodeling projects do not exceed25 percent of the63.1appraised value of the facility or $500,000, whichever is63.2less$1,000,000; 63.3 (m) to license and certify beds that are moved from one 63.4 location to another for the purposes of converting up to five 63.5 four-bed wards to single or double occupancy rooms in a nursing 63.6 home that, as of January 1, 1993, was county-owned and had a 63.7 licensed capacity of 115 beds; 63.8 (n) to allow a facility that on April 16, 1993, was a 63.9 106-bed licensed and certified nursing facility located in 63.10 Minneapolis to layaway all of its licensed and certified nursing 63.11 home beds. These beds may be relicensed and recertified in a 63.12 newly-constructed teaching nursing home facility affiliated with 63.13 a teaching hospital upon approval by the legislature. The 63.14 proposal must be developed in consultation with the interagency 63.15 committee on long-term care planning. The beds on layaway 63.16 status shall have the same status as voluntarily delicensed and 63.17 decertified beds, except that beds on layaway status remain 63.18 subject to the surcharge in section 256.9657. This layaway 63.19 provision expires July 1, 1997; 63.20 (o) to allow a project which will be completed in 63.21 conjunction with an approved moratorium exception project for a 63.22 nursing home in southern Cass county and which is directly 63.23 related to that portion of the facility that must be repaired, 63.24 renovated, or replaced, to correct an emergency plumbing problem 63.25 for which a state correction order has been issued and which 63.26 must be corrected by August 31, 1993; 63.27 (p) to allow a facility that on April 16, 1993, was a 63.28 368-bed licensed and certified nursing facility located in 63.29 Minneapolis to layaway, upon 30 days prior written notice to the 63.30 commissioner, up to 30 of the facility's licensed and certified 63.31 beds by converting three-bed wards to single or double 63.32 occupancy. Beds on layaway status shall have the same status as 63.33 voluntarily delicensed and decertified beds except that beds on 63.34 layaway status remain subject to the surcharge in section 63.35 256.9657, remain subject to the license application and renewal 63.36 fees under section 144A.07 and shall be subject to a $100 per 64.1 bed reactivation fee. In addition, at any time within three 64.2 years of the effective date of the layaway, the beds on layaway 64.3 status may be: 64.4 (1) relicensed and recertified upon relocation and 64.5 reactivation of some or all of the beds to an existing licensed 64.6 and certified facility or facilities located in Pine River, 64.7 Brainerd, or International Falls; provided that the total 64.8 project construction costs related to the relocation of beds 64.9 from layaway status for any facility receiving relocated beds 64.10 may not exceed the dollar threshold provided in subdivision 2 64.11 unless the construction project has been approved through the 64.12 moratorium exception process under section 144A.073; 64.13 (2) relicensed and recertified, upon reactivation of some 64.14 or all of the beds within the facility which placed the beds in 64.15 layaway status, if the commissioner has determined a need for 64.16 the reactivation of the beds on layaway status. 64.17 The property-related payment rate of a facility placing 64.18 beds on layaway status must be adjusted by the incremental 64.19 change in its rental per diem after recalculating the rental per 64.20 diem as provided in section 256B.431, subdivision 3a, paragraph 64.21 (d). The property-related payment rate for a facility 64.22 relicensing and recertifying beds from layaway status must be 64.23 adjusted by the incremental change in its rental per diem after 64.24 recalculating its rental per diem using the number of beds after 64.25 the relicensing to establish the facility's capacity day 64.26 divisor, which shall be effective the first day of the month 64.27 following the month in which the relicensing and recertification 64.28 became effective. Any beds remaining on layaway status more 64.29 than three years after the date the layaway status became 64.30 effective must be removed from layaway status and immediately 64.31 delicensed and decertified; 64.32 (q)to license and certify beds in a renovation and64.33remodeling project to convert 13 three-bed wards into 13 two-bed64.34rooms and 13 single-bed rooms, expand space, and add64.35improvements in a nursing home that, as of January 1, 1994, met64.36the following conditions: the nursing home was located in65.1Ramsey county; was not owned by a hospital corporation; had a65.2licensed capacity of 64 beds; and had been ranked among the top65.315 applicants by the 1993 moratorium exceptions advisory review65.4panel. The total project construction cost estimate for this65.5project must not exceed the cost estimate submitted in65.6connection with the 1993 moratorium exception process;65.7(r)to license and certify beds in a renovation and 65.8 remodeling project to convert 12 four-bed wards into 24 two-bed 65.9 rooms, expand space, and add improvements in a nursing home 65.10 that, as of January 1, 1994, met the following conditions: the 65.11 nursing home was located in Ramsey county; had a licensed 65.12 capacity of 154 beds; and had been ranked among the top 15 65.13 applicants by the 1993 moratorium exceptions advisory review 65.14 panel. The total project construction cost estimate for this 65.15 project must not exceed the cost estimate submitted in 65.16 connection with the 1993 moratorium exception process; 65.17(s)(r) to license and certify up to 117 beds that are 65.18 relocated from a licensed and certified 138-bed nursing facility 65.19 located in St. Paul to a hospital with 130 licensed hospital 65.20 beds located in South St. Paul, provided that the nursing 65.21 facility and hospital are owned by the same or a related 65.22 organization and that prior to the date the relocation is 65.23 completed the hospital ceases operation of its inpatient 65.24 hospital services at that hospital. After relocation, the 65.25 nursing facility's status under section 256B.431, subdivision 65.26 2j, shall be the same as it was prior to relocation. The 65.27 nursing facility's property-related payment rate resulting from 65.28 the project authorized in this paragraph shall become effective 65.29 no earlier than April 1, 1996. For purposes of calculating the 65.30 incremental change in the facility's rental per diem resulting 65.31 from this project, the allowable appraised value of the nursing 65.32 facility portion of the existing health care facility physical 65.33 plant prior to the renovation and relocation may not exceed 65.34 $2,490,000; 65.35(t)(s) to license and certify two beds in a facility to 65.36 replace beds that were voluntarily delicensed and decertified on 66.1 June 28, 1991; 66.2(u)(t) to allow 16 licensed and certified beds located on 66.3 July 1, 1994, in a 142-bed nursing home and 21-bed boarding care 66.4 home facility in Minneapolis, notwithstanding the licensure and 66.5 certification after July 1, 1995, of the Minneapolis facility as 66.6 a 147-bed nursing home facility after completion of a 66.7 construction project approved in 1993 under section 144A.073, to 66.8 be laid away upon 30 days' prior written notice to the 66.9 commissioner. Beds on layaway status shall have the same status 66.10 as voluntarily delicensed or decertified beds except that they 66.11 shall remain subject to the surcharge in section 256.9657. The 66.12 16 beds on layaway status may be relicensed as nursing home beds 66.13 and recertified at any time within five years of the effective 66.14 date of the layaway upon relocation of some or all of the beds 66.15 to a licensed and certified facility located in Watertown, 66.16 provided that the total project construction costs related to 66.17 the relocation of beds from layaway status for the Watertown 66.18 facility may not exceed the dollar threshold provided in 66.19 subdivision 2 unless the construction project has been approved 66.20 through the moratorium exception process under section 144A.073. 66.21 The property-related payment rate of the facility placing 66.22 beds on layaway status must be adjusted by the incremental 66.23 change in its rental per diem after recalculating the rental per 66.24 diem as provided in section 256B.431, subdivision 3a, paragraph 66.25 (d). The property-related payment rate for the facility 66.26 relicensing and recertifying beds from layaway status must be 66.27 adjusted by the incremental change in its rental per diem after 66.28 recalculating its rental per diem using the number of beds after 66.29 the relicensing to establish the facility's capacity day 66.30 divisor, which shall be effective the first day of the month 66.31 following the month in which the relicensing and recertification 66.32 became effective. Any beds remaining on layaway status more 66.33 than five years after the date the layaway status became 66.34 effective must be removed from layaway status and immediately 66.35 delicensed and decertified; 66.36(v)(u) to license and certify beds that are moved within 67.1 an existing area of a facility or to a newly-constructed 67.2 addition which is built for the purpose of eliminating three- 67.3 and four-bed rooms and adding space for dining, lounge areas, 67.4 bathing rooms, and ancillary service areas in a nursing home 67.5 that, as of January 1, 1995, was located in Fridley and had a 67.6 licensed capacity of 129 beds;or67.7(w)(v) to relocate 36 beds in Crow Wing county and four 67.8 beds from Hennepin county to a 160-bed facility in Crow Wing 67.9 county, provided all the affected beds are under common 67.10 ownership.; or 67.11 (w) to license and certify beds in a renovation and 67.12 remodeling project to convert 13 three-bed wards into 13 two-bed 67.13 rooms and 13 single-bed rooms, expand space, and add 67.14 improvements in a nursing home that, as of January 1, 1994, met 67.15 the following conditions: the nursing home was located in 67.16 Ramsey county, was not owned by a hospital corporation, had a 67.17 licensed capacity of 64 beds, and had been ranked among the top 67.18 15 applicants by the 1993 moratorium exceptions advisory review 67.19 panel. The total project construction cost estimate for this 67.20 project must not exceed the cost estimate submitted in 67.21 connection with the 1993 moratorium exception process. 67.22 Sec. 4. Minnesota Statutes 1996, section 144A.073, 67.23 subdivision 2, is amended to read: 67.24 Subd. 2. [REQUEST FOR PROPOSALS.] At the authorization by 67.25 the legislature of additional medical assistance expenditures 67.26 for exceptions to the moratorium on nursing homes, the 67.27 interagency committee shall publish in the State Register a 67.28 request for proposals for nursing home projects to be licensed 67.29 or certified under section 144A.071, subdivision 4a, clause 67.30 (c). The public notice of this funding and the request for 67.31 proposals must specify how the approval criteria will be 67.32 prioritized by the advisory review panel, the interagency 67.33 long-term care planning committee, and the commissioner. The 67.34 notice must describe the information that must accompany a 67.35 request and state that proposals must be submitted to the 67.36 interagency committee within 90 days of the date of 68.1 publication. The notice must include the amount of the 68.2 legislative appropriation available for the additional costs to 68.3 the medical assistance program of projects approved under this 68.4 section. If no money is appropriated for a year, the 68.5 interagency committee shall publish a notice to that effect, and 68.6 no proposals shall be requested. If money is appropriated, the 68.7 interagency committee shall initiate the application and review 68.8 process described in this section at least twice each biennium 68.9 and up to four times each biennium, according to dates 68.10 established by rule. Authorized funds shall be allocated 68.11 proportionally to the number of processes. Funds not encumbered 68.12 by an earlier process within a biennium shall carry forward to 68.13 subsequent iterations of the process. Authorization for 68.14 expenditures does not carry forward into the following 68.15 biennium. To be considered for approval, a proposal must 68.16 include the following information: 68.17 (1) whether the request is for renovation, replacement, 68.18 upgrading, conversion, or relocation; 68.19 (2) a description of the problem the project is designed to 68.20 address; 68.21 (3) a description of the proposed project; 68.22 (4) an analysis of projected costs of the nursing facility 68.23 proposal, which are not required to exceed the cost threshold 68.24 referred to in section 144A.071, subdivision 1, to be considered 68.25 under this section, including initial construction and 68.26 remodeling costs; site preparation costs; financing costs, 68.27 including the current estimated long-term financing costs of the 68.28 proposal, which consists of estimates of the amount and sources 68.29 of money, reserves if required under the proposed funding 68.30 mechanism, annual payments schedule, interest rates, length of 68.31 term, closing costs and fees, insurance costs, and any completed 68.32 marketing study or underwriting review; and estimated operating 68.33 costs during the first two years after completion of the 68.34 project; 68.35 (5) for proposals involving replacement of all or part of a 68.36 facility, the proposed location of the replacement facility and 69.1 an estimate of the cost of addressing the problem through 69.2 renovation; 69.3 (6) for proposals involving renovation, an estimate of the 69.4 cost of addressing the problem through replacement; 69.5 (7) the proposed timetable for commencing construction and 69.6 completing the project; 69.7 (8) a statement of any licensure or certification issues, 69.8 such as certification survey deficiencies; 69.9 (9) the proposed relocation plan for current residents if 69.10 beds are to be closed so that the department of human services 69.11 can estimate the total costs of a proposal; and 69.12 (10) other information required by permanent rule of the 69.13 commissioner of health in accordance with subdivisions 4 and 8. 69.14 Sec. 5. Minnesota Statutes 1996, section 144A.073, is 69.15 amended by adding a subdivision to read: 69.16 Subd. 9. [BUDGET REQUEST.] The commissioner of finance 69.17 shall include in each biennial budget request a line-item for 69.18 the nursing home moratorium exception process. If the 69.19 commissioner does not request funding for this item, the 69.20 commissioner of finance must justify the decision in the budget 69.21 pages. 69.22 Sec. 6. Minnesota Statutes 1996, section 256B.431, is 69.23 amended by adding a subdivision to read: 69.24 Subd. 2s. [RATES FOR A RELOCATED FACILITY.] For a nursing 69.25 facility whose construction project was authorized according to 69.26 section 144A.073, subdivision 5, paragraph (g), the operating 69.27 cost payment rates for the third location shall be determined 69.28 based on Minnesota Rules, part 9549.0057. Subdivision 25, 69.29 paragraphs (b), clause (3); and (d), shall not apply until the 69.30 second rate year after the settle-up cost report is filed. 69.31 Notwithstanding this section, real estate taxes and special 69.32 assessments payable by the third location, a 501(c)(3) nonprofit 69.33 corporation, shall be included in the payment rates determined 69.34 under this subdivision for all subsequent rate years. 69.35 Sec. 7. Minnesota Statutes 1996, section 256B.431, 69.36 subdivision 25, is amended to read: 70.1 Subd. 25. [CHANGES TO NURSING FACILITY REIMBURSEMENT 70.2 BEGINNING JULY 1, 1995.] The nursing facility reimbursement 70.3 changes in paragraphs (a) to (h) shall apply in the sequence 70.4 specified to Minnesota Rules, parts 9549.0010 to 9549.0080, and 70.5 this section, beginning July 1, 1995. 70.6 (a) The eight-cent adjustment to care-related rates in 70.7 subdivision 22, paragraph (e), shall no longer apply. 70.8 (b) For rate years beginning on or after July 1, 1995, the 70.9 commissioner shall limit a nursing facility's allowable 70.10 operating per diem for each case mix category for each rate year 70.11 as in clauses (1) to (3). 70.12 (1) For the rate year beginning July 1, 1995, the 70.13 commissioner shall group nursing facilities into two groups, 70.14 freestanding and nonfreestanding, within each geographic group, 70.15 using their operating cost per diem for the case mix A 70.16 classification. A nonfreestanding nursing facility is a nursing 70.17 facility whose other operating cost per diem is subject to the 70.18 hospital attached, short length of stay, or the rule 80 limits. 70.19 All other nursing facilities shall be considered freestanding 70.20 nursing facilities. The commissioner shall then array all 70.21 nursing facilities in each grouping by their allowable case mix 70.22 A operating cost per diem. In calculating a nursing facility's 70.23 operating cost per diem for this purpose, the commissioner shall 70.24 exclude the raw food cost per diem related to providing special 70.25 diets that are based on religious beliefs, as determined in 70.26 subdivision 2b, paragraph (h). For those nursing facilities in 70.27 each grouping whose case mix A operating cost per diem: 70.28 (i) is at or below the median minus 1.0 standard deviation 70.29 of the array, the commissioner shall limit the nursing 70.30 facility's allowable operating cost per diem for each case mix 70.31 category to the lesser of the prior reporting year's allowable 70.32 operating cost per diems plus the inflation factor as 70.33 established in paragraph (f), clause (2), increased by six 70.34 percentage points, or the current reporting year's corresponding 70.35 allowable operating cost per diem; 70.36 (ii) is between minus .5 standard deviation and minus 1.0 71.1 standard deviation below the median of the array, the 71.2 commissioner shall limit the nursing facility's allowable 71.3 operating cost per diem for each case mix category to the lesser 71.4 of the prior reporting year's allowable operating cost per diems 71.5 plus the inflation factor as established in paragraph (f), 71.6 clause (2), increased by four percentage points, or the current 71.7 reporting year's corresponding allowable operating cost per 71.8 diem; or 71.9 (iii) is equal to or above minus .5 standard deviation 71.10 below the median of the array, the commissioner shall limit the 71.11 nursing facility's allowable operating cost per diem for each 71.12 case mix category to the lesser of the prior reporting year's 71.13 allowable operating cost per diems plus the inflation factor as 71.14 established in paragraph (f), clause (2), increased by three 71.15 percentage points, or the current reporting year's corresponding 71.16 allowable operating cost per diem. 71.17 (2) For the rate year beginning on July 1, 1996, the 71.18 commissioner shall limit the nursing facility's allowable 71.19 operating cost per diem for each case mix category to the lesser 71.20 of the prior reporting year's allowable operating cost per diems 71.21 plus the inflation factor as established in paragraph (f), 71.22 clause (2), increased by one percentage point or the current 71.23 reporting year's corresponding allowable operating cost per 71.24 diems; and 71.25 (3) For rate years beginning on or after July 1, 1997, the 71.26 commissioner shall limit the nursing facility's allowable 71.27 operating cost per diem for each case mix category to the lesser 71.28 of the reporting year prior to the current reporting year's 71.29 allowable operating cost per diems plus the inflation factor as 71.30 established in paragraph (f), clause (2), or the current 71.31 reporting year's corresponding allowable operating cost per 71.32 diems. 71.33 (c) For rate years beginning on July 1, 1995, the 71.34 commissioner shall limit the allowable operating cost per diems 71.35 for high cost nursing facilities. After application of the 71.36 limits in paragraph (b) to each nursing facility's operating 72.1 cost per diems, the commissioner shall group nursing facilities 72.2 into two groups, freestanding or nonfreestanding, within each 72.3 geographic group. A nonfreestanding nursing facility is a 72.4 nursing facility whose other operating cost per diems are 72.5 subject to hospital attached, short length of stay, or rule 80 72.6 limits. All other nursing facilities shall be considered 72.7 freestanding nursing facilities. The commissioner shall then 72.8 array all nursing facilities within each grouping by their 72.9 allowable case mix A operating cost per diems. In calculating a 72.10 nursing facility's operating cost per diem for this purpose, the 72.11 commissioner shall exclude the raw food cost per diem related to 72.12 providing special diets that are based on religious beliefs, as 72.13 determined in subdivision 2b, paragraph (h). For those nursing 72.14 facilities in each grouping whose case mix A operating cost per 72.15 diem exceeds 1.0 standard deviation above the median, the 72.16 commissioner shall reduce their allowable operating cost per 72.17 diems by two percent. For those nursing facilities in each 72.18 grouping whose case mix A operating cost per diem exceeds 0.5 72.19 standard deviation above the median but is less than or equal to 72.20 1.0 standard deviation above the median, the commissioner shall 72.21 reduce their allowable operating cost per diems by one percent. 72.22 (d) For rate years beginning on or after July 1, 1996, the 72.23 commissioner shall limit the allowable operating cost per diems 72.24 for high cost nursing facilities. After application of the 72.25 limits in paragraph (b) to each nursing facility's operating 72.26 cost per diems, the commissioner shall group nursing facilities 72.27 into two groups, freestanding or nonfreestanding, within each 72.28 geographic group. A nonfreestanding nursing facility is a 72.29 nursing facility whose other operating cost per diems are 72.30 subject to hospital attached, short length of stay, or rule 80 72.31 limits. All other nursing facilities shall be considered 72.32 freestanding nursing facilities. The commissioner shall then 72.33 array all nursing facilities within each grouping by their 72.34 allowable case mix A operating cost per diems. In calculating a 72.35 nursing facility's operating cost per diem for this purpose, the 72.36 commissioner shall exclude the raw food cost per diem related to 73.1 providing special diets that are based on religious beliefs, as 73.2 determined in subdivision 2b, paragraph (h). In those nursing 73.3 facilities in each grouping whose case mix A operating cost per 73.4 diem exceeds 1.0 standard deviation above the median, the 73.5 commissioner shall reduce their allowable operating cost per 73.6 diems by three percent. For those nursing facilities in each 73.7 grouping whose case mix A operating cost per diem exceeds 0.5 73.8 standard deviation above the median but is less than or equal to 73.9 1.0 standard deviation above the median, the commissioner shall 73.10 reduce their allowable operating cost per diems by two percent. 73.11 (e) For rate years beginning on or after July 1, 1995, the 73.12 commissioner shall determine a nursing facility's efficiency 73.13 incentive by first computing the allowable difference, which is 73.14 the lesser of $4.50 or the amount by which the facility's other 73.15 operating cost limit exceeds its nonadjusted other operating 73.16 cost per diem for that rate year. The commissioner shall 73.17 compute the efficiency incentive by: 73.18 (1) subtracting the allowable difference from $4.50 and 73.19 dividing the result by $4.50; 73.20 (2) multiplying 0.20 by the ratio resulting from clause 73.21 (1), and then; 73.22 (3) adding 0.50 to the result from clause (2); and 73.23 (4) multiplying the result from clause (3) times the 73.24 allowable difference. 73.25 The nursing facility's efficiency incentive payment shall 73.26 be the lesser of $2.25 or the product obtained in clause (4). 73.27 (f) For rate years beginning on or after July 1, 1995, the 73.28 forecasted price index for a nursing facility's allowable 73.29 operating cost per diems shall be determined under clauses (1) 73.30 to (3) using the change in the Consumer Price Index-All Items 73.31 (United States city average) (CPI-U) or the change in the 73.32 Nursing Home Market Basket, both as forecasted by Data Resources 73.33 Inc., whichever is applicable. The commissioner shall use the 73.34 indices as forecasted in the fourth quarter of the calendar year 73.35 preceding the rate year, subject to subdivision 2l, paragraph 73.36 (c). If, as a result of federal legislative or administrative 74.1 action, the methodology used to calculate the Consumer Price 74.2 Index-All Items (United States city average) (CPI-U) changes, 74.3 the commissioner shall develop a conversion factor or other 74.4 methodology to convert the CPI-U index factor that results from 74.5 the new methodology to an index factor that approximates, as 74.6 closely as possible, the index factor that would have resulted 74.7 from application of the original CPI-U methodology prior to any 74.8 changes in methodology. The commissioner shall use the 74.9 conversion factor or other methodology to calculate an adjusted 74.10 inflation index. The adjusted inflation index must be used to 74.11 calculate payment rates under this section instead of the CPI-U 74.12 index specified in paragraph (d). If the commissioner is 74.13 required to develop an adjusted inflation index, the 74.14 commissioner shall report to the legislature as part of the next 74.15 budget submission the fiscal impact of applying this index. 74.16 (1) The CPI-U forecasted index for allowable operating cost 74.17 per diems shall be based on the 21-month period from the 74.18 midpoint of the nursing facility's reporting year to the 74.19 midpoint of the rate year following the reporting year. 74.20 (2) The Nursing Home Market Basket forecasted index for 74.21 allowable operating costs and per diem limits shall be based on 74.22 the 12-month period between the midpoints of the two reporting 74.23 years preceding the rate year. 74.24 (3) For rate years beginning on or after July 1, 1996, the 74.25 forecasted index for operating cost limits referred to in 74.26 subdivision 21, paragraph (b), shall be based on the CPI-U for 74.27 the 12-month period between the midpoints of the two reporting 74.28 years preceding the rate year. 74.29 (g) After applying these provisions for the respective rate 74.30 years, the commissioner shall index these allowable operating 74.31 costs per diems by the inflation factor provided for in 74.32 paragraph (f), clause (1), and add the nursing facility's 74.33 efficiency incentive as computed in paragraph (e). 74.34 (h)(1) A nursing facility licensed for 302 beds on 74.35 September 30, 1993, that was approved under the moratorium 74.36 exception process in section 144A.073 for a partial replacement, 75.1 and completed the replacement project in December 1994, is 75.2 exempt from paragraphs (b) to (d) for rate years beginning on or 75.3 after July 1, 1995. 75.4 (2) For the rate year beginning July 1, 1997, after 75.5 computing this nursing facility's payment rate according to 75.6 section 256B.434, the commissioner shall make a one-year rate 75.7 adjustment of $8.62 to the facility's contract payment rate for 75.8 the rate effect of operating cost changes associated with the 75.9 facility's 1994 downsizing project. 75.10 (3) For rate years beginning on or after July 1, 1997, the 75.11 commissioner shall add 35 cents to the facility's base property 75.12 related payment rate for the rate effect of reducing its 75.13 licensed capacity to 290 beds from 302 beds and shall add 83 75.14 cents to the facility's real estate tax and special assessment 75.15 payment rate for payments in lieu of real estate taxes. The 75.16 adjustments in this clause shall remain in effect for the 75.17 duration of the facility's contract under section 256B.434. 75.18 (i) Notwithstanding Laws 1996, chapter 451, article 3, 75.19 section 11, paragraph (h), for the rate years beginning on July 75.20 1, 1996, July 1, 1997, and July 1, 1998, a nursing facility 75.21 licensed for 40 beds effective May 1, 1992, with a subsequent 75.22 increase of 20 Medicare/Medicaid certified beds, effective 75.23 January 26, 1993, in accordance with an increase in licensure is 75.24 exempt from paragraphs (b) to (d). 75.25 (j) For the rate year beginning July 1, 1997, the 75.26 commissioner shall compute the payment rate for a nursing 75.27 facility licensed for 94 beds on September 30, 1996, that 75.28 applied in October 1993 for approval of a total replacement 75.29 under the moratorium exception process in section 144A.073, and 75.30 completed the approved replacement in June 1995, with an 75.31 aggregate spend-up limit under paragraph (b) or Laws 1996, 75.32 chapter 451, article 3, section 11, increased by $3.98, and 75.33 after computing the facility's payment rate according to section 75.34 256B.431, the commissioner shall make a one year positive rate 75.35 adjustment of $3.19 for operating costs related to the newly 75.36 constructed total replacement, without application of paragraphs 76.1 (b) to (d) or Laws 1996, chapter 451, article 3, section 11. 76.2 The facility's per diems, before the $3.19 adjustment, shall be 76.3 used as the prior reporting year's allowable operating cost per 76.4 diems for payment rate calculation for the rate year beginning 76.5 July 1, 1998. 76.6 (k) For the purpose of applying the limit stated in 76.7 paragraph (b), clause (3), a nursing facility in Kandiyohi 76.8 county licensed for 86 beds that was granted hospital-attached 76.9 status on December 1, 1994, shall have the prior year's 76.10 allowable care-related per diems increased by $3.207 and the 76.11 prior year's other operating cost per diems increased by $4.777 76.12 before adding the inflation in paragraph (f), clause (2), for 76.13 the rate year beginning on July 1, 1997. 76.14 (l) For the purpose of applying the limit stated in 76.15 paragraph (b), clause (3), a 117 bed nursing facility located in 76.16 Pine county shall have the prior year's allowable operating cost 76.17 per diem payment rate increased by $1.50 before adding the 76.18 inflation in paragraph (f), clause (2), for the rate year 76.19 beginning on July 1, 1997. 76.20 Sec. 8. Minnesota Statutes 1996, section 256B.431, is 76.21 amended by adding a subdivision to read: 76.22 Subd. 26. [CHANGES TO NURSING FACILITY REIMBURSEMENT 76.23 BEGINNING JULY 1, 1997.] The nursing facility reimbursement 76.24 changes in paragraphs (a) to (f) shall apply in the sequence 76.25 specified to Minnesota Rules, parts 9549.0010 to 9549.0080, and 76.26 this section, beginning July 1, 1997. 76.27 (a) For rate years beginning on or after July 1, 1997, the 76.28 commissioner shall limit a nursing facility's allowable 76.29 operating per diem for each case mix category for each rate year 76.30 as follows: 76.31 (1) Notwithstanding Laws 1996, chapter 451, article 3, 76.32 section 11, paragraph (h), for purposes of computing the 76.33 spend-up limits for the rate year beginning July 1, 1997, the 76.34 nursing facility's prior cost report year's allowable operating 76.35 cost base shall be its allowed operating costs used to set the 76.36 payment rates paid for the rate year beginning July 1, 1996. 77.1 (2) The commissioner shall group nursing facilities into 77.2 two groups, freestanding and nonfreestanding, within each 77.3 geographic group, using their operating cost per diem for the 77.4 case mix A classification. A nonfreestanding nursing facility 77.5 is a nursing facility whose other operating cost per diem is 77.6 subject to the hospital attached, short length of stay, or the 77.7 rule 80 limits. All other nursing facilities shall be 77.8 considered freestanding nursing facilities. The commissioner 77.9 shall then array all nursing facilities in each grouping by 77.10 their allowable case mix A operating cost per diem. In 77.11 calculating a nursing facility's operating cost per diem for 77.12 this purpose, the commissioner shall exclude the raw food cost 77.13 per diem related to providing special diets that are based on 77.14 religious beliefs, as determined in subdivision 2b, paragraph 77.15 (h). For those nursing facilities in each grouping whose case 77.16 mix A operating cost per diem: 77.17 (i) is at or below the median of the array, the 77.18 commissioner shall limit the nursing facility's allowable 77.19 operating cost per diem for each case mix category to the lesser 77.20 of the prior reporting year's allowable operating cost per diems 77.21 plus the inflation factor as established in paragraph (d), 77.22 clause (2), increased by two percentage points, or the current 77.23 reporting year's corresponding allowable operating cost per 77.24 diem; or 77.25 (ii) is above the median of the array, the commissioner 77.26 shall limit the nursing facility's allowable operating cost per 77.27 diem for each case mix category to the lesser of the prior 77.28 reporting year's allowable operating cost per diems plus the 77.29 inflation factor as established in paragraph (d), clause (2), 77.30 increased by one percentage point, or the current reporting 77.31 year's corresponding allowable operating cost per diem. 77.32 (b) For rate years beginning on July 1, 1997, the 77.33 commissioner shall limit the allowable operating cost per diems 77.34 for high cost nursing facilities. After application of the 77.35 limits in paragraph (a) to each nursing facility's operating 77.36 cost per diems, the commissioner shall group nursing facilities 78.1 into two groups, freestanding or nonfreestanding, within each 78.2 geographic group. A nonfreestanding nursing facility is a 78.3 nursing facility whose other operating cost per diems are 78.4 subject to hospital attached, short length of stay, or rule 80 78.5 limits. All other nursing facilities shall be considered 78.6 freestanding nursing facilities. The commissioner shall then 78.7 array all nursing facilities within each grouping by their 78.8 allowable case mix A operating cost per diems. In calculating a 78.9 nursing facility's operating cost per diem for this purpose, the 78.10 commissioner shall exclude the raw food cost per diem related to 78.11 providing special diets that are based on religious beliefs, as 78.12 determined in subdivision 2b, paragraph (h). For those nursing 78.13 facilities in each grouping whose case mix A operating cost per 78.14 diem exceeds 1.0 standard deviation above the median, the 78.15 commissioner shall reduce their allowable operating cost per 78.16 diems by three percent. For those nursing facilities in each 78.17 grouping whose case mix A operating cost per diem exceeds 0.5 78.18 standard deviation above the median but is less than or equal to 78.19 1.0 standard deviation above the median, the commissioner shall 78.20 reduce their allowable operating cost per diems by two percent. 78.21 However, in no case shall a nursing facility's operating cost 78.22 per diems be reduced below its grouping's limit established at 78.23 0.5 standard deviations above the median. 78.24 (c) For rate years beginning on or after July 1, 1997, the 78.25 commissioner shall determine a nursing facility's efficiency 78.26 incentive by first computing the allowable difference, which is 78.27 the lesser of $4.50 or the amount by which the facility's other 78.28 operating cost limit exceeds its nonadjusted other operating 78.29 cost per diem for that rate year. In determining the amount of 78.30 the efficiency incentive for hospital attached nursing 78.31 facilities, the commissioner must use the other operating cost 78.32 limit applicable to the freestanding nursing facilities in their 78.33 same geographic group. The commissioner shall compute the 78.34 efficiency incentive by: 78.35 (1) subtracting the allowable difference from $4.50 and 78.36 dividing the result by $4.50; 79.1 (2) multiplying 0.20 by the ratio resulting from clause 79.2 (1), and then; 79.3 (3) adding 0.50 to the result from clause (2); and 79.4 (4) multiplying the result from clause (3) times the 79.5 allowable difference. 79.6 The nursing facility's efficiency incentive payment shall 79.7 be the lesser of $2.25 or the product obtained in clause (4). 79.8 (d) For rate years beginning on or after July 1, 1997, the 79.9 forecasted price index for a nursing facility's allowable 79.10 operating cost per diems shall be determined under clauses (1) 79.11 and (2) using the change in the Consumer Price Index-All Items 79.12 (United States city average) (CPI-U) as forecasted by Data 79.13 Resources Inc. The commissioner shall use the indices as 79.14 forecasted in the fourth quarter of the calendar year preceding 79.15 the rate year, subject to subdivision 2l, paragraph (c). 79.16 (1) The CPI-U forecasted index for allowable operating cost 79.17 per diems shall be based on the 21-month period from the 79.18 midpoint of the nursing facility's reporting year to the 79.19 midpoint of the rate year following the reporting year. 79.20 (2) For rate years beginning on or after July 1, 1997, the 79.21 forecasted index for operating cost limits referred to in 79.22 subdivision 21, paragraph (b), shall be based on the CPI-U for 79.23 the 12-month period between the midpoints of the two reporting 79.24 years preceding the rate year. 79.25 (e) After applying these provisions for the respective rate 79.26 years, the commissioner shall index these allowable operating 79.27 costs per diems by the inflation factor provided for in 79.28 paragraph (d), clause (1), and add the nursing facility's 79.29 efficiency incentive as computed in paragraph (c). 79.30 (f) Notwithstanding Laws 1996, chapter 451, article 3, 79.31 section 11, paragraph (h), for the rate years beginning on July 79.32 1, 1997, and July 1, 1998, a nursing facility licensed for 40 79.33 beds effective May 1, 1992, with a subsequent increase of 20 79.34 Medicare/Medicaid certified beds, effective January 26, 1993, in 79.35 accordance with an increase in licensure is exempt from 79.36 paragraphs (a) and (b). 80.1 Sec. 9. Minnesota Statutes 1996, section 256I.05, is 80.2 amended by adding a subdivision to read: 80.3 Subd. 1d. [SUPPLEMENTARY SERVICE RATES FOR CERTAIN 80.4 FACILITIES SERVING PERSONS WITH MENTAL ILLNESS OR CHEMICAL 80.5 DEPENDENCY.] Notwithstanding the provisions of subdivisions 1a 80.6 and 1c for the fiscal year ending June 30, 1998, a county agency 80.7 may negotiate a supplementary service rate in addition to the 80.8 board and lodging rate for facilities licensed and registered by 80.9 the Minnesota department of health under section 157.17 prior to 80.10 December 31, 1994, if the facility meets the following criteria: 80.11 (1) at least 75 percent of the residents have a primary 80.12 diagnosis of mental illness, chemical dependency, or both, and 80.13 have related special needs; 80.14 (2) the facility provides 24-hour, on-site, year-round 80.15 supportive services by qualified staff capable of intervention 80.16 in a crisis of persons with late-state inebriety or mental 80.17 illness who are vulnerable to abuse or neglect; 80.18 (3) the services at the facility include, but are not 80.19 limited to: 80.20 (i) secure central storage of medication; 80.21 (ii) reminders and monitoring of medication for 80.22 self-administration; 80.23 (iii) support for developing an individual medical and 80.24 social service plan, updating the plan, and monitoring 80.25 compliance with the plan; and 80.26 (iv) assistance with setting up meetings, appointments, and 80.27 transportation to access medical, chemical health, and mental 80.28 health service providers; 80.29 (4) each resident has a documented need for at least one of 80.30 the services provided; 80.31 (5) each resident has been offered an opportunity to apply 80.32 for admission to a licensed residential treatment program for 80.33 mental illness, chemical dependency, or both, have refused that 80.34 offer, and the offer and their refusal has been documented to 80.35 writing; and 80.36 (6) the residents are not eligible for home and 81.1 community-based services waivers because of their unique need 81.2 for community support. 81.3 After the increase, the total supplementary service rate 81.4 must not exceed the statewide rate limit for residential care 81.5 services in effect January 1, 1997, for the community 81.6 alternatives for disabled individuals waivers services program 81.7 for individuals with a case mix "A" classification. 81.8 Sec. 10. Laws 1997, chapter 7, article 1, section 75, is 81.9 amended to read: 81.10 Sec. 75. [REPEALER; SECTION 144A.61, SUBDIVISION 6 NOTE.] 81.11 Laws 1989, chapter 282, article 3, section 28, subdivision 81.12 6, is repealed. 81.13 Sec. 11. [EFFECTIVE DATE.] 81.14 Section 7 is effective the day following final enactment. 81.15 ARTICLE 4 81.16 HEALTH CARE 81.17 Section 1. Minnesota Statutes 1996, section 62D.04, 81.18 subdivision 5, is amended to read: 81.19 Subd. 5. [PARTICIPATION; GOVERNMENT PROGRAMS.] Health 81.20 maintenance organizations shall, as a condition of receiving and 81.21 retaining a certificate of authority, participate in the medical 81.22 assistance, general assistance medical care, and MinnesotaCare 81.23 programs. A health maintenance organization is required to 81.24 submit proposals in good faith that meet the requirements of the 81.25 request for proposal provided that the requirements can be 81.26 reasonably met by a health maintenance organization to serve 81.27 individuals eligible for the above programs in a geographic 81.28 region of the state if, at the time of publication of a request 81.29 for proposal, the percentage of recipients in the public 81.30 programs in the region who are enrolled in the health 81.31 maintenance organization is less than the health maintenance 81.32 organization's percentage of the total number of individuals 81.33 enrolled in health maintenance organizations in the same 81.34 region. Geographic regions shall be defined by the commissioner 81.35 of human services in the request for proposals. 81.36 Sec. 2. Minnesota Statutes 1996, section 62N.10, 82.1 subdivision 4, is amended to read: 82.2 Subd. 4. [PARTICIPATION; GOVERNMENT PROGRAMS.] Integrated 82.3 service networks shall, as a condition of licensure, participate 82.4 in the medical assistance, general assistance medical care, and 82.5 MinnesotaCare programs. An integrated service network is 82.6 required to submit proposals in good faith that meet the 82.7 requirements of the request for proposals provided that the 82.8 requirements can be reasonably met by an integrated service 82.9 network to serve persons who are eligible for the above programs 82.10 if, at the time of publication of a request for proposal, the 82.11 percentage of recipients in the public programs in the region 82.12 who are enrolled in the integrated service network is less than 82.13 the integrated service network's percentage of the total number 82.14 of individuals enrolled in integrated service networks in the 82.15 same region. Geographic regions shall be defined by the 82.16 commissioner of human services in the request for proposals. 82.17 Sec. 3. Minnesota Statutes 1996, section 144.0721, 82.18 subdivision 3, is amended to read: 82.19 Subd. 3. [LEVEL OF CARE CRITERIA; MODIFICATIONS.] The 82.20 commissioner shall seek appropriate federal waivers to implement 82.21 this subdivision. Notwithstanding any laws or rules to the 82.22 contrary, effective July 1,19961997, Minnesota's level of care 82.23 criteria for admission of any person to a nursing facility 82.24 licensed under chapter 144A, or a boarding care home licensed 82.25 under sections 144.50 to 144.56, are modified as follows: 82.26 (1) the resident reimbursement classifications and 82.27 terminology established by rule under sections 256B.41 to 82.28 256B.48 are the basis for applying the level of care criteria 82.29 changes; 82.30 (2) an applicant to a certified nursing facility or 82.31 certified boarding care home who is dependent in zero, one, or 82.32 two case mix activities of daily living, is classified as a case 82.33 mix A, and is independent in orientation and self-preservation, 82.34 is reclassified as a high function class A person and is not 82.35 eligible for admission to Minnesota certified nursing facilities 82.36 or certified boarding care homes; 83.1 (3) applicants in clause (2) who are dependent in one or 83.2 two case mix activities of daily living, who are eligible for 83.3 assistance as determined under sections 256B.055 and 256B.056 or 83.4 meet eligibility criteria for section 256B.0913 are eligible for 83.5 a service allowance under section 256B.0913, subdivision 15, and 83.6 are not eligible for services under sections 256B.0913, 83.7 subdivisions 1 to 14, and 256B.0915.Applicants in clause (2)83.8shall have the option of receiving personal care assistant and83.9home health aide services under section 256B.0625, if otherwise83.10eligible, or of receiving the service allowance option, but not83.11both.Applicants in clause (2) shall have the option of 83.12 residing in community settings under sections 256I.01 to 83.13 256I.06, if otherwise eligible, or receiving the services 83.14 allowance option under section 256B.0913, subdivision 15, but 83.15 not both; 83.16 (4) residents of a certified nursing facility or certified 83.17 boarding care home who were admitted before July 1,19961997, 83.18 or individuals receiving services under section 256B.0913, 83.19 subdivisions 1 to 14, or 256B.0915, before July 1,19961997, 83.20 are not subject to the new level of care criteria unless the 83.21 resident is discharged home or to another service setting other 83.22 than a certified nursing facility or certified boarding care 83.23 home and applies for admission to a certified nursing facility 83.24 or certified boarding care home after June 30,19961997; 83.25 (5) the local screening teams under section 256B.0911shall83.26make preliminary determinations concerningmay determine the 83.27 existence of extraordinary circumstances which render 83.28 nonadmission to a certified nursing or certified boarding care 83.29 home a serious threat to the health and safety of applicants in 83.30 clause (2) and may authorizeanadmissionfor a short-term stay83.31atto a certified nursing facility or certified boarding care 83.32 home in accordance with a treatment and discharge planfor up to83.3330 days per year; and 83.34 (6) an individual deemed ineligible for admission to 83.35 Minnesota certified nursing facilities is entitled to an appeal 83.36 under section 256.045, subdivision 3. 84.1 If the commissioner determines upon appeal that an 84.2 applicant in clause (2) presents extraordinary circumstances 84.3 including but not limited to the absence or inaccessibility of 84.4 suitable alternatives, contravening family circumstances,andor 84.5 protective service issues, the applicant may be eligible for 84.6 admission to Minnesota certified nursing facilities or certified 84.7 boarding care homes. 84.8 Sec. 4. Minnesota Statutes 1996, section 254B.02, 84.9 subdivision 1, is amended to read: 84.10 Subdivision 1. [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 84.11 The chemical dependency funds appropriated for allocation shall 84.12 be placed in a special revenue account.For the fiscal year84.13beginning July 1, 1987, funds shall be transferred to operate84.14the vendor payment, invoice processing, and collections system84.15for one year.The commissioner shall annually transfer funds 84.16 from the chemical dependency fund to pay for operation of the 84.17 drug and alcohol abuse normative evaluation system and to pay 84.18 for all costs incurred by adding two positions for licensing of 84.19 chemical dependency treatment and rehabilitation programs 84.20 located in hospitals for which funds are not otherwise 84.21 appropriated. For each year of the biennium ending June 30, 84.22 1999, the commissioner shall allocate funds to the American 84.23 Indian chemical dependency tribal account for treatment of 84.24 American Indians by eligible vendors under section 254B.05, 84.25 equal to the amount allocated in fiscal year 1997. The 84.26 commissioner shall annually divide the money available in the 84.27 chemical dependency fund that is not held in reserve by counties 84.28 from a previous allocation, or allocated to the American Indian 84.29 chemical dependency tribal account.TwelveSix percent of the 84.30 remaining money must be reserved for the nonreservation American 84.31 Indian chemical dependency allocation for treatment of American 84.32 Indians by eligible vendors under section 254B.05, subdivision 84.33 1. The remainder of the money must be allocated among the 84.34 counties according to the following formula, using state 84.35 demographer data and other data sources determined by the 84.36 commissioner: 85.1 (a) For purposes of this formula, American Indians and 85.2 children under age 14 are subtracted from the population of each 85.3 county to determine the restricted population. 85.4 (b) The amount of chemical dependency fund expenditures for 85.5 entitled persons for services not covered by prepaid plans 85.6 governed by section 256B.69 in the previous year is divided by 85.7 the amount of chemical dependency fund expenditures for entitled 85.8 persons for all services to determine the proportion of exempt 85.9 service expenditures for each county. 85.10 (c) The prepaid plan months of eligibility is multiplied by 85.11 the proportion of exempt service expenditures to determine the 85.12 adjusted prepaid plan months of eligibility for each county. 85.13 (d) The adjusted prepaid plan months of eligibility is 85.14 added to the number of restricted population fee for service 85.15 months of eligibility for aid to families with dependent 85.16 children, general assistance, and medical assistance and divided 85.17 by the county restricted population to determine county per 85.18 capita months of covered service eligibility. 85.19 (e) The number of adjusted prepaid plan months of 85.20 eligibility for the state is added to the number of fee for 85.21 service months of eligibility for aid to families with dependent 85.22 children, general assistance, and medical assistance for the 85.23 state restricted population and divided by the state restricted 85.24 population to determine state per capita months of covered 85.25 service eligibility. 85.26 (f) The county per capita months of covered service 85.27 eligibility is divided by the state per capita months of covered 85.28 service eligibility to determine the county welfare caseload 85.29 factor. 85.30 (g) The median married couple income for the most recent 85.31 three-year period available for the state is divided by the 85.32 median married couple income for the same period for each county 85.33 to determine the income factor for each county. 85.34 (h) The county restricted population is multiplied by the 85.35 sum of the county welfare caseload factor and the county income 85.36 factor to determine the adjusted population. 86.1 (i) $15,000 shall be allocated to each county. 86.2 (j) The remaining funds shall be allocated proportional to 86.3 the county adjusted population. 86.4 Sec. 5. Minnesota Statutes 1996, section 254B.09, 86.5 subdivision 4, is amended to read: 86.6 Subd. 4. [TRIBAL ALLOCATION.]Forty-two and one-half86.7 Eighty-five percent of the American Indian chemical dependency 86.8 tribal account must be allocated to the federally recognized 86.9 American Indian tribal governing bodies that have entered into 86.10 an agreement under subdivision 2 as follows: $10,000 must be 86.11 allocated to each governing body and the remainder must be 86.12 allocated in direct proportion to the population of the 86.13 reservation according to the most recently available estimates 86.14 from the federal Bureau of Indian Affairs. When a tribal 86.15 governing body has not entered into an agreement with the 86.16 commissioner under subdivision 2, the county may use funds 86.17 allocated to the reservation to pay for chemical dependency 86.18 services for a current resident of the county and of the 86.19 reservation. 86.20 Sec. 6. Minnesota Statutes 1996, section 254B.09, 86.21 subdivision 5, is amended to read: 86.22 Subd. 5. [TRIBAL RESERVE ACCOUNT.] The commissioner shall 86.23 reserve7.515 percent of the American Indian chemical 86.24 dependency tribal account. The reserve must be allocated to 86.25 those tribal units that have used all money allocated under 86.26 subdivision 4 according to agreements made under subdivision 2 86.27 and to counties submitting invoices for American Indians under 86.28 subdivision 1 when all money allocated under subdivision 4 has 86.29 been used. An American Indian tribal governing body or a county 86.30 submitting invoices under subdivision 1 may receive not more 86.31 than 30 percent of the reserve account in a year. The 86.32 commissioner may refuse to make reserve payments for persons not 86.33 eligible under section 254B.04, subdivision 1, if the tribal 86.34 governing body responsible for treatment placement has exhausted 86.35 its allocation. Money must be allocated as invoices are 86.36 received. 87.1 Sec. 7. Minnesota Statutes 1996, section 254B.09, 87.2 subdivision 7, is amended to read: 87.3 Subd. 7. [NONRESERVATION INDIAN ACCOUNT.]Fifty percent of87.4 The nonreservation American Indian chemical dependency 87.5 allocation must be held in reserve by the commissioner in an 87.6 account for treatment of Indians not residing on lands of a 87.7 reservation receiving money under subdivision 4. This money 87.8 must be used to pay for services certified by county invoice to 87.9 have been provided to an American Indian eligible recipient. 87.10 Money allocated under this subdivision may be used for payments 87.11 on behalf of American Indian county residents only if, in 87.12 addition to other placement standards, the county certifies that 87.13 the placement was appropriate to the cultural orientation of the 87.14 client. Any funds for treatment of nonreservation Indians 87.15 remaining at the end of a fiscal year shall be reallocated under 87.16 section 254B.02. 87.17 Sec. 8. Minnesota Statutes 1996, section 256.045, 87.18 subdivision 3, is amended to read: 87.19 Subd. 3. [STATE AGENCY HEARINGS.] (a) State agency 87.20 hearings are available for the following: (1) any person 87.21 applying for, receiving or having received public assistance or 87.22 a program of social services granted by the state agency or a 87.23 county agency under sections 252.32, 256.031 to 256.036, and 87.24 256.72 to 256.879, chapters 256B, 256D, 256E, 261, or the 87.25 federal Food Stamp Act whose application for assistance is 87.26 denied, not acted upon with reasonable promptness, or whose 87.27 assistance is suspended, reduced, terminated, or claimed to have 87.28 been incorrectly paid; (2) any patient or relative aggrieved by 87.29 an order of the commissioner under section 252.27; (3) a party 87.30 aggrieved by a ruling of a prepaid health plan; (4) any 87.31 individual or facility determined by a lead agency to have 87.32 maltreated a vulnerable adult under section 626.557 after they 87.33 have exercised their right to administrative reconsideration 87.34 under section 626.557; (5) any person whose claim for foster 87.35 care payment pursuant to a placement of the child resulting from 87.36 a child protection assessment under section 626.556 is denied or 88.1 not acted upon with reasonable promptness, regardless of funding 88.2 source; (6) any person to whom a right of appeal pursuant to 88.3 this section is given by other provision of law; or (7) an 88.4 applicant aggrieved by an adverse decision to an application for 88.5 a hardship waiver under section 256B.15. The failure to 88.6 exercise the right to an administrative reconsideration shall 88.7 not be a bar to a hearing under this section if federal law 88.8 provides an individual the right to a hearing to dispute a 88.9 finding of maltreatment. Individuals and organizations 88.10 specified in this section may contest the specified action, 88.11 decision, or final disposition before the state agency by 88.12 submitting a written request for a hearing to the state agency 88.13 within 30 days after receiving written notice of the action, 88.14 decision, or final disposition, or within 90 days of such 88.15 written notice if the applicant, recipient, patient, or relative 88.16 shows good cause why the request was not submitted within the 88.17 30-day time limit. 88.18 The hearing for an individual or facility under clause (4) 88.19 is the only administrative appeal to the final lead agency 88.20 disposition specifically, including a challenge to the accuracy 88.21 and completeness of data under section 13.04. Hearings 88.22 requested under clause (4) apply only to incidents of 88.23 maltreatment that occur on or after October 1, 1995. Hearings 88.24 requested by nursing assistants in nursing homes alleged to have 88.25 maltreated a resident prior to October 1, 1995, shall be held as 88.26 a contested case proceeding under the provisions of chapter 14. 88.27 For purposes of this section, bargaining unit grievance 88.28 procedures are not an administrative appeal. 88.29 The scope of hearings involving claims to foster care 88.30 payments under clause (5) shall be limited to the issue of 88.31 whether the county is legally responsible for a child's 88.32 placement under court order or voluntary placement agreement 88.33 and, if so, the correct amount of foster care payment to be made 88.34 on the child's behalf and shall not include review of the 88.35 propriety of the county's child protection determination or 88.36 child placement decision. 89.1 (b)Except for a prepaid health plan,A vendor of medical 89.2 care as defined in section 256B.02, subdivision 7, or a vendor 89.3 under contract with a county agency to provide social services 89.4 under section 256E.08, subdivision 4, is not a party and may not 89.5 request a hearing under this section, except if assisting a 89.6 recipient as provided in subdivision 4. 89.7 (c) An applicant or recipient is not entitled to receive 89.8 social services beyond the services included in the amended 89.9 community social services plan developed under section 256E.081, 89.10 subdivision 3, if the county agency has met the requirements in 89.11 section 256E.081. 89.12 Sec. 9. Minnesota Statutes 1996, section 256.045, 89.13 subdivision 5, is amended to read: 89.14 Subd. 5. [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] 89.15 This subdivision does not apply to appeals under subdivision 89.16 3b. A state human services referee shall conduct a hearing on 89.17 the appeal and shall recommend an order to the commissioner of 89.18 human services. The recommended order must be based on all 89.19 relevant evidence and must not be limited to a review of the 89.20 propriety of the state or county agency's action. A referee may 89.21 take official notice of adjudicative facts. The commissioner of 89.22 human services may accept the recommended order of a state human 89.23 services referee and issue the order to the county agency and 89.24 the applicant, recipient, former recipient, or prepaid health 89.25 plan. The commissioner on refusing to accept the recommended 89.26 order of the state human services referee, shall notify the 89.27 county agency and the applicant, recipient, former recipient, or 89.28 prepaid health plan of that fact and shall state reasons 89.29 therefor and shall allow each party ten days' time to submit 89.30 additional written argument on the matter. After the expiration 89.31 of the ten-day period, the commissioner shall issue an order on 89.32 the matter to the county agency and the applicant, recipient, 89.33 former recipient, or prepaid health plan. 89.34 A party aggrieved by an order of the commissioner may 89.35 appeal under subdivision 7, or request reconsideration by the 89.36 commissioner within 30 days after the date the commissioner 90.1 issues the order. The commissioner may reconsider an order upon 90.2 request of any party or on the commissioner's own motion. A 90.3 request for reconsideration does not stay implementation of the 90.4 commissioner's order. Upon reconsideration, the commissioner 90.5 may issue an amended order or an order affirming the original 90.6 order. 90.7 Any order of the commissioner issued under this subdivision 90.8 shall be conclusive upon the parties unless appeal is taken in 90.9 the manner provided by subdivision 7. Any order of the 90.10 commissioner is binding on the parties and must be implemented 90.11 by the state agencyor, a county agency, or a prepaid health 90.12 plan according to subdivision 3a, until the order is reversed by 90.13 the district court, or unless the commissioner or a district 90.14 court orders monthly assistance or aid or services paid or 90.15 provided under subdivision 10. 90.16Except for a prepaid health plan,A vendor of medical care 90.17 as defined in section 256B.02, subdivision 7, or a vendor under 90.18 contract with a county agency to provide social services under 90.19 section 256E.08, subdivision 4, is not a party and may not 90.20 request a hearing or seek judicial review of an order issued 90.21 under this section, unless assisting a recipient as provided in 90.22 subdivision 4. A prepaid health plan is a party to an appeal 90.23 under subdivision 3a, but cannot seek judicial review of an 90.24 order issued under this section. 90.25 Sec. 10. Minnesota Statutes 1996, section 256.045, 90.26 subdivision 7, is amended to read: 90.27 Subd. 7. [JUDICIAL REVIEW.] Except for a prepaid health 90.28 plan, any party who is aggrieved by an order of the commissioner 90.29 of human services, or the commissioner of health in appeals 90.30 within the commissioner's jurisdiction under subdivision 3b, may 90.31 appeal the order to the district court of the county responsible 90.32 for furnishing assistance, or, in appeals under subdivision 3b, 90.33 the county where the maltreatment occurred, by serving a written 90.34 copy of a notice of appeal upon the commissioner and any adverse 90.35 party of record within 30 days after the date the commissioner 90.36 issued the order, the amended order, or order affirming the 91.1 original order, and by filing the original notice and proof of 91.2 service with the court administrator of the district court. 91.3 Service may be made personally or by mail; service by mail is 91.4 complete upon mailing; no filing fee shall be required by the 91.5 court administrator in appeals taken pursuant to this 91.6 subdivision, with the exception of appeals taken under 91.7 subdivision 3b. The commissioner may elect to become a party to 91.8 the proceedings in the district court. Except for appeals under 91.9 subdivision 3b, any party may demand that the commissioner 91.10 furnish all parties to the proceedings with a copy of the 91.11 decision, and a transcript of any testimony, evidence, or other 91.12 supporting papers from the hearing held before the human 91.13 services referee, by serving a written demand upon the 91.14 commissioner within 30 days after service of the notice of 91.15 appeal. Any party aggrieved by the failure of an adverse party 91.16 to obey an order issued by the commissioner under subdivision 5 91.17 may compel performance according to the order in the manner 91.18 prescribed in sections 586.01 to 586.12. 91.19 Sec. 11. Minnesota Statutes 1996, section 256.476, 91.20 subdivision 2, is amended to read: 91.21 Subd. 2. [DEFINITIONS.] For purposes of this section, the 91.22 following terms have the meanings given them: 91.23 (a) "County board" means the county board of commissioners 91.24 for the county of financial responsibility as defined in section 91.25 256G.02, subdivision 4, or its designated representative. When 91.26 a human services board has been established under sections 91.27 402.01 to 402.10, it shall be considered the county board for 91.28 the purposes of this section. 91.29 (b) "Family" means the person's birth parents, adoptive 91.30 parents or stepparents, siblings or stepsiblings, children or 91.31 stepchildren, grandparents, grandchildren, niece, nephew, aunt, 91.32 uncle, or spouse. For the purposes of this section, a family 91.33 member is at least 18 years of age. 91.34 (c) "Functional limitations" means the long-term inability 91.35 to perform an activity or task in one or more areas of major 91.36 life activity, including self-care, understanding and use of 92.1 language, learning, mobility, self-direction, and capacity for 92.2 independent living. For the purpose of this section, the 92.3 inability to perform an activity or task results from a mental, 92.4 emotional, psychological, sensory, or physical disability, 92.5 condition, or illness. 92.6 (d) "Informed choice" means a voluntary decision made by 92.7 the person or the person's legal representative, after becoming 92.8 familiarized with the alternatives to: 92.9 (1) select a preferred alternative from a number of 92.10 feasible alternatives; 92.11 (2) select an alternative which may be developed in the 92.12 future; and 92.13 (3) refuse any or all alternatives. 92.14 (e) "Local agency" means the local agency authorized by the 92.15 county board to carry out the provisions of this section. 92.16 (f) "Person" or "persons" means a person or persons meeting 92.17 the eligibility criteria in subdivision 3. 92.18 (g)"Responsible individual""Authorized representative" 92.19 means an individual designated by the person or their legal 92.20 representative to act on their behalf. This individual may be a 92.21 family member, guardian, representative payee, or other 92.22 individual designated by the person or their legal 92.23 representative, if any, to assist in purchasing and arranging 92.24 for supports. For the purposes of this section,a responsible92.25individualan authorized representative is at least 18 years of 92.26 age. 92.27 (h) "Screening" means the screening of a person's service 92.28 needs under sections 256B.0911 and 256B.092. 92.29 (i) "Supports" means services, care, aids, home 92.30 modifications, or assistance purchased by the person or the 92.31 person's family. Examples of supports include respite care, 92.32 assistance with daily living, and adaptive aids. For the 92.33 purpose of this section, notwithstanding the provisions of 92.34 section 144A.43, supports purchased under the consumer support 92.35 program are not considered home care services. 92.36 (j) "Program of origination" means the program the 93.1 individual transferred from when approved for the consumer 93.2 support grant program. 93.3 Sec. 12. Minnesota Statutes 1996, section 256.476, 93.4 subdivision 3, is amended to read: 93.5 Subd. 3. [ELIGIBILITY TO APPLY FOR GRANTS.] (a) A person 93.6 is eligible to apply for a consumer support grant if the person 93.7 meets all of the following criteria: 93.8 (1) the person is eligible for and has been approved to 93.9 receive services under medical assistance as determined under 93.10 sections 256B.055 and 256B.056 or the person is eligible for and 93.11 has been approved to receive services under alternative care 93.12 services as determined under section 256B.0913 or the person has 93.13 been approved to receive a grant under the developmental 93.14 disability family support program under section 252.32; 93.15 (2) the person is able to direct and purchase the person's 93.16 own care and supports, or the person has a family member, legal 93.17 representative, or otherresponsible individualauthorized 93.18 representative who can purchase and arrange supports on the 93.19 person's behalf; 93.20 (3) the person has functional limitations, requires ongoing 93.21 supports to live in the community, and is at risk of or would 93.22 continue institutionalization without such supports; and 93.23 (4) the person will live in a home. For the purpose of 93.24 this section, "home" means the person's own home or home of a 93.25 person's family member. These homes are natural home settings 93.26 and are not licensed by the department of health or human 93.27 services. 93.28 (b) Persons may not concurrently receive a consumer support 93.29 grant if they are: 93.30 (1) receiving home and community-based services under 93.31 United States Code, title 42, section 1396h(c); personal care 93.32 attendant and home health aide services under section 256B.0625; 93.33 a developmental disability family support grant; or alternative 93.34 care services under section 256B.0913; or 93.35 (2) residing in an institutional or congregate care setting. 93.36 (c) A person or person's family receiving a consumer 94.1 support grant shall not be charged a fee or premium by a local 94.2 agency for participating in the program. A person or person's 94.3 family is not eligible for a consumer support grant if their 94.4 income is at a level where they are required to pay a parental 94.5 fee under sections 252.27, 256B.055, subdivision 12, and 256B.14 94.6 and rules adopted under those sections for medical assistance 94.7 services to a disabled child living with at least one parent. 94.8 (d) The commissioner may limit the participation of nursing 94.9 facility residents, residents of intermediate care facilities 94.10 for persons with mental retardation, and the recipients of 94.11 services from federal waiver programs in the consumer support 94.12 grant program if the participation of these individuals will 94.13 result in an increase in the cost to the state. 94.14 (e) The commissioner shall establish a budgeted 94.15 appropriation each fiscal year for the consumer support grant 94.16 program. The number of individuals participating in the program 94.17 will be adjusted so the total amount allocated to counties does 94.18 not exceed the amount of the budgeted appropriation. The 94.19 budgeted appropriation will be adjusted annually to accommodate 94.20 changes in demand for the consumer support grants. 94.21 Sec. 13. Minnesota Statutes 1996, section 256.476, 94.22 subdivision 4, is amended to read: 94.23 Subd. 4. [SUPPORT GRANTS; CRITERIA AND LIMITATIONS.] (a) A 94.24 county board may choose to participate in the consumer support 94.25 grant program. If a county board chooses to participate in the 94.26 program, the local agency shall establish written procedures and 94.27 criteria to determine the amount and use of support grants. 94.28 These procedures must include, at least, the availability of 94.29 respite care, assistance with daily living, and adaptive aids. 94.30 The local agency may establish monthly or annual maximum amounts 94.31 for grants and procedures where exceptional resources may be 94.32 required to meet the health and safety needs of the person on a 94.33 time-limited basis, however, the total amount awarded to each 94.34 individual may not exceed the limits established in subdivision 94.35 5, paragraph (f). 94.36 (b) Support grants to a person or a person's familymay95.1 will be provided through a monthly subsidyor lump sumpayment 95.2basisand be in the form of cash, voucher, or direct county 95.3 payment to vendor. Support grant amounts must be determined by 95.4 the local agency. Each service and item purchased with a 95.5 support grant must meet all of the following criteria: 95.6 (1) it must be over and above the normal cost of caring for 95.7 the person if the person did not have functional limitations; 95.8 (2) it must be directly attributable to the person's 95.9 functional limitations; 95.10 (3) it must enable the person or the person's family to 95.11 delay or prevent out-of-home placement of the person; and 95.12 (4) it must be consistent with the needs identified in the 95.13 service plan, when applicable. 95.14 (c) Items and services purchased with support grants must 95.15 be those for which there are no other public or private funds 95.16 available to the person or the person's family. Fees assessed 95.17 to the person or the person's family for health and human 95.18 services are not reimbursable through the grant. 95.19 (d) In approving or denying applications, the local agency 95.20 shall consider the following factors: 95.21 (1) the extent and areas of the person's functional 95.22 limitations; 95.23 (2) the degree of need in the home environment for 95.24 additional support; and 95.25 (3) the potential effectiveness of the grant to maintain 95.26 and support the person in the family environment or the person's 95.27 own home. 95.28 (e) At the time of application to the program or screening 95.29 for other services, the person or the person's family shall be 95.30 provided sufficient information to ensure an informed choice of 95.31 alternatives by the person, the person's legal representative, 95.32 if any, or the person's family. The application shall be made 95.33 to the local agency and shall specify the needs of the person 95.34 and family, the form and amount of grant requested, the items 95.35 and services to be reimbursed, and evidence of eligibility for 95.36 medical assistance or alternative care program. 96.1 (f) Upon approval of an application by the local agency and 96.2 agreement on a support plan for the person or person's family, 96.3 the local agency shall make grants to the person or the person's 96.4 family. The grant shall be in an amount for the direct costs of 96.5 the services or supports outlined in the service agreement. 96.6 (g) Reimbursable costs shall not include costs for 96.7 resources already available, such as special education classes, 96.8 day training and habilitation, case management, other services 96.9 to which the person is entitled, medical costs covered by 96.10 insurance or other health programs, or other resources usually 96.11 available at no cost to the person or the person's family. 96.12 (h) The state of Minnesota, the county boards participating 96.13 in the consumer support grant program, or the agencies acting on 96.14 behalf of the county boards in the implementation and 96.15 administration of the consumer support grant program shall not 96.16 be liable for damages, injuries, or liabilities sustained 96.17 through the purchase of support by the individual, the 96.18 individual's family, or the authorized representative under this 96.19 section with funds received through the consumer support grant 96.20 program. Liabilities include but are not limited to: workers' 96.21 compensation liability, the Federal Insurance Contributions Act 96.22 (FICA), or the Federal Unemployment Tax Act (FUTA). For 96.23 purposes of this section, participating county boards and 96.24 agencies acting on behalf of county boards are exempt from the 96.25 provisions of section 268.04. 96.26 Sec. 14. Minnesota Statutes 1996, section 256.476, 96.27 subdivision 5, is amended to read: 96.28 Subd. 5. [REIMBURSEMENT, ALLOCATIONS, AND REPORTING.] (a) 96.29 For the purpose of transferring persons to the consumer support 96.30 grant program from specific programs or services, such as the 96.31 developmental disability family support program and alternative 96.32 care program, personal care attendant, home health aide, or 96.33 nursing facility services, the amount of funds transferred by 96.34 the commissioner between the developmental disability family 96.35 support program account, the alternative care account, the 96.36 medical assistance account, or the consumer support grant 97.1 account shall be based on each county's participation in 97.2 transferring persons to the consumer support grant program from 97.3 those programs and services. 97.4 (b) At the beginning of each fiscal year, county 97.5 allocations for consumer support grants shall be based on: 97.6 (1) the number of persons to whom the county board expects 97.7 to provide consumer supports grants; 97.8 (2) their eligibility for current program and services; 97.9 (3) the amount of nonfederal dollars expended on those 97.10 individuals for those programs and services; or in situations 97.11 where an individual is unable to obtain the support needed from 97.12 the program of origination due to the unavailability of service 97.13 providers at the time or the location where the supports are 97.14 needed, the allocation will be based on the county's best 97.15 estimate of the nonfederal dollars that would have been expended 97.16 if the services had been available; and 97.17 (4) projected dates when persons will start receiving 97.18 grants. County allocations shall be adjusted periodically by 97.19 the commissioner based on the actual transfer of persons or 97.20 service openings, and the nonfederal dollars associated with 97.21 those persons or service openings, to the consumer support grant 97.22 program. 97.23 (c) The amount of funds transferred by the commissioner 97.24 from the alternative care account and the medical assistance 97.25 account for an individual may be changed if it is determined by 97.26 the county or its agent that the individual's need for support 97.27 has changed. 97.28 (d) The authority to utilize funds transferred to the 97.29 consumer support grant account for the purposes of implementing 97.30 and administering the consumer support grant program will not be 97.31 limited or constrained by the spending authority provided to the 97.32 program of origination. 97.33 (e) The commissioner shall use up to five percent of each 97.34 county's allocation, as adjusted, for payments to that county 97.35 for administrative expenses, to be paid as a proportionate 97.36 addition to reported direct service expenditures. 98.1(d)(f) Except as provided below, the county allocation for 98.2 each individual or individual's family cannot exceed 80 percent 98.3 of the total nonfederal dollars expended on the individual by 98.4 the program of origination except for the developmental 98.5 disabilities family support grant program which can be approved 98.6 up to 100 percent of the nonfederal dollars and in situations as 98.7 described in paragraph (b), clause (4). In situations where 98.8 exceptional need exists or the individual's need for support 98.9 increases, up to 100 percent of the nonfederal dollars expended 98.10 may be allocated to the county. Allocations that exceed 80 98.11 percent of the nonfederal dollars expended on the individual by 98.12 the program of origination must be approved by the 98.13 commissioner. The remainder of the amount expended on the 98.14 individual by the program of origination will be used in the 98.15 following proportions: half will be made available to the 98.16 consumer support grant program and participating counties for 98.17 consumer training, resource development, and other costs, and 98.18 half will be returned to the state general fund. 98.19 (g) The commissioner may recover, suspend, or withhold 98.20 payments if the county board, local agency, or grantee does not 98.21 comply with the requirements of this section. 98.22 Sec. 15. Minnesota Statutes 1996, section 256.9363, 98.23 subdivision 7, is amended to read: 98.24 Subd. 7. [MANAGED CARE PLAN VENDOR REQUIREMENTS.] The 98.25 following requirements apply to all counties or vendors who 98.26 contract with the department of human services to serve 98.27 MinnesotaCare recipients. Managed care plan contractors: 98.28 (1) shall authorize and arrange for the provision of the 98.29 full range of services listed in section 256.9353, except dental 98.30 services provided under section 256B.037, in order to ensure 98.31 appropriate health care is delivered to enrollees; 98.32 (2) shall accept the prospective, per capita payment or 98.33 other contractually defined payment from the commissioner in 98.34 return for the provision and coordination of covered health care 98.35 services for eligible individuals enrolled in the program; 98.36 (3) may contract with other health care and social service 99.1 practitioners to provide services to enrollees; 99.2 (4) shall provide for an enrollee grievance process as 99.3 required by the commissioner and set forth in the contract with 99.4 the department; 99.5 (5) shall retain all revenue from enrollee copayments; 99.6 (6) shall accept all eligible MinnesotaCare enrollees, 99.7 without regard to health status or previous utilization of 99.8 health services; 99.9 (7) shall demonstrate capacity to accept financial risk 99.10 according to requirements specified in the contract with the 99.11 department. A health maintenance organization licensed under 99.12 chapter 62D, or a nonprofit health plan licensed under chapter 99.13 62C, is not required to demonstrate financial risk capacity, 99.14 beyond that which is required to comply with chapters 62C and 99.15 62D; and 99.16 (8) shall submit information as required by the 99.17 commissioner, including data required for assessing enrollee 99.18 satisfaction, quality of care, cost, and utilization of services. 99.19 Sec. 16. Minnesota Statutes 1996, section 256.969, 99.20 subdivision 1, is amended to read: 99.21 Subdivision 1. [HOSPITAL COST INDEX.] (a) The hospital 99.22 cost index shall be the change in the Consumer Price Index-All 99.23 Items (United States city average) (CPI-U) forecasted by Data 99.24 Resources, Inc. The commissioner shall use the indices as 99.25 forecasted in the third quarter of the calendar year prior to 99.26 the rate year. The hospital cost index may be used to adjust 99.27 the base year operating payment rate through the rate year on an 99.28 annually compounded basis. 99.29 (b) For fiscal years beginning on or after July 1, 1993, 99.30 the commissioner of human services shall not provide automatic 99.31 annual inflation adjustments for hospital payment rates under 99.32 medical assistance, nor under general assistance medical care, 99.33 except that the inflation adjustments under paragraph (a) for 99.34 medical assistance, excluding general assistance medical care, 99.35 shall apply through calendar year19971999. The commissioner 99.36 of finance shall include as a budget change request in each 100.1 biennial detailed expenditure budget submitted to the 100.2 legislature under section 16A.11 annual adjustments in hospital 100.3 payment rates under medical assistance and general assistance 100.4 medical care, based upon the hospital cost index. 100.5 Sec. 17. Minnesota Statutes 1996, section 256.9695, 100.6 subdivision 1, is amended to read: 100.7 Subdivision 1. [APPEALS.] A hospital may appeal a decision 100.8 arising from the application of standards or methods under 100.9 section 256.9685, 256.9686, or 256.969, if an appeal would 100.10 result in a change to the hospital's payment rate or payments. 100.11 Both overpayments and underpayments that result from the 100.12 submission of appeals shall be implemented. Regardless of any 100.13 appeal outcome, relative values shall not be recalculated. The 100.14 appeal shall be heard by an administrative law judge according 100.15 to sections 14.57 to 14.62, or upon agreement by both parties, 100.16 according to a modified appeals procedure established by the 100.17 commissioner and the office of administrative hearings. In any 100.18 proceeding under this section, the appealing party must 100.19 demonstrate by a preponderance of the evidence that the 100.20 commissioner's determination is incorrect or not according to 100.21 law. 100.22 (a) To appeal a payment rate or payment determination or a 100.23 determination made from base year information, the hospital 100.24 shall file a written appeal request to the commissioner within 100.25 60 days of the date the payment rate determination was mailed. 100.26 The appeal request shall specify: (i) the disputed items; (ii) 100.27 the authority in federal or state statute or rule upon which the 100.28 hospital relies for each disputed item; and (iii) the name and 100.29 address of the person to contact regarding the appeal. Facts to 100.30 be considered in any appeal of base year information are limited 100.31 to those in existence at the time the payment rates of the first 100.32 rate year were established from the base year information. In 100.33 the case of Medicare settled appeals, the 60-day appeal period 100.34 shall begin on the mailing date of the notice by the Medicare 100.35 program or the date the medical assistance payment rate 100.36 determination notice is mailed, whichever is later. 101.1 (b) To appeal a payment rate or payment change that results 101.2 from a difference in case mix between the base year and a rate 101.3 year, the procedures and requirements of paragraph (a) apply. 101.4 However, the appeal must be filed with the commissioner within 101.5 120 days after the end of a rate year. A case mix appeal must 101.6 apply to the cost of services to all medical assistance patients 101.7 that received inpatient services from the hospital during the 101.8 rate year appealed. For case mix appeals filed after January 1, 101.9 1997, the difference in case mix and the corresponding payment 101.10 adjustment must exceed a threshold of five percent. 101.11 Sec. 18. Minnesota Statutes 1996, section 256B.037, 101.12 subdivision 1a, is amended to read: 101.13 Subd. 1a. [MULTIPLE DENTAL PLAN AREAS.] After the 101.14 department has executed contracts with dental plans to provide 101.15 covered dental care services in a multiple dental plan area, the 101.16 department shall: 101.17 (1) inform applicants and recipients, in writing, of 101.18 available dental plans, when written notice of dental plan 101.19 selection must be submitted to the department, and when dental 101.20 plan participation begins; 101.21 (2)randomlyassign to a dental plan recipients who fail to 101.22 notify the department in writing of their dental plan choice; 101.23 and 101.24 (3) notify recipients, in writing, of their assigned dental 101.25 plan before the effective date of the recipient's dental plan 101.26 participation. 101.27 Sec. 19. Minnesota Statutes 1996, section 256B.037, 101.28 subdivision 2, is amended to read: 101.29 Subd. 2. [ESTABLISHMENT OF PREPAYMENT RATES.] The 101.30 commissioner shall consult with an independent actuary to 101.31 establish prepayment rates, but shall retain final authority 101.32 over the methodology used to establish the rates. Payment rates 101.33 may be adjusted to reflect increased availability of providers 101.34 under the demonstration project in subdivision 1. The 101.35 commissioner may negotiate contracts which make payment after 101.36 the month of coverage. Theprepaymentdental rates under this 102.1 section, combined with other prepaid programs, shall not result 102.2 in payments that exceed the per capita expenditures that would 102.3 have been made fordentalservices by the programs under a 102.4 fee-for-service reimbursement system. The package of dental 102.5 benefits provided to individuals under this subdivision shall 102.6 not be less than the package of benefits provided under 102.7 themedical assistance fee-for-service reimbursement system for102.8dental servicesprogram for which they are eligible. 102.9 Sec. 20. Minnesota Statutes 1996, section 256B.04, is 102.10 amended by adding a subdivision to read: 102.11 Subd. 1a. [COMPREHENSIVE HEALTH SERVICES SYSTEM.] The 102.12 commissioner shall carry out the duties in this section with the 102.13 participation of the boards of county commissioners, and with 102.14 full consideration for the interests of counties, to plan and 102.15 implement a unified, accountable, comprehensive health services 102.16 system that: 102.17 (1) promotes accessible and quality health care for all 102.18 Minnesotans; 102.19 (2) assures provision of adequate health care within 102.20 limited state and county resources; 102.21 (3) avoids shifting funding burdens to county tax 102.22 resources; 102.23 (4) provides statewide eligibility, benefit, and service 102.24 expectations; 102.25 (5) manages care, develops risk management strategies, and 102.26 contains cost in all health and human services; and 102.27 (6) supports effective implementation of publicly funded 102.28 health and human services for all areas of the state. 102.29 Sec. 21. Minnesota Statutes 1996, section 256B.055, 102.30 subdivision 12, is amended to read: 102.31 Subd. 12. [DISABLED CHILDREN.] (a) A person is eligible 102.32 for medical assistance if the person is under age 19 and 102.33 qualifies as a disabled individual under United States Code, 102.34 title 42, section 1382c(a), and would be eligible for medical 102.35 assistance under the state plan if residing in a medical 102.36 institution, and the child requires a level of care provided in 103.1 a hospital, nursing facility, or intermediate care facility for 103.2 persons with mental retardation or related conditions, for whom 103.3 home care is appropriate, provided that the cost to medical 103.4 assistance under this section is not more than the amount that 103.5 medical assistance would pay for if the child resides in an 103.6 institution. After the child is determined to be eligible under 103.7 this section, the commissioner shall review the child's 103.8 disability under United States Code, title 42, section 1382c(a) 103.9 and level of care defined under this section no more often than 103.10 annually and may elect, based on the recommendation of health 103.11 care professionals under contract with the state medical review 103.12 team, to extend the review of disability and level of care up to 103.13 a maximum of four years. The commissioner's decision on the 103.14 frequency of continuing review of disability and level of care 103.15 is not subject to administrative appeal under section 256.045. 103.16 Nothing in this subdivision shall be construed as affecting 103.17 other redeterminations of medical assistance eligibility under 103.18 this chapter and annual cost-effective reviews under this 103.19 section. 103.20 (b) For purposes of this subdivision, "hospital" means an 103.21 institution as defined in section 144.696, subdivision 3, 103.22 144.55, subdivision 3, or Minnesota Rules, part 4640.3600, and 103.23 licensed pursuant to sections 144.50 to 144.58. For purposes of 103.24 this subdivision, a child requires a level of care provided in a 103.25 hospital if the child is determined by the commissioner to need 103.26 an extensive array of health services, including mental health 103.27 services, for an undetermined period of time, whose health 103.28 condition requires frequent monitoring and treatment by a health 103.29 care professional or by a person supervised by a health care 103.30 professional, who would reside in a hospital or require frequent 103.31 hospitalization if these services were not provided, and the 103.32 daily care needs are more complex than a nursing facility level 103.33 of care. 103.34 A child with serious emotional disturbance requires a level 103.35 of care provided in a hospital if the commissioner determines 103.36 that the individual requires 24-hour supervision because the 104.1 person exhibits recurrent or frequent suicidal or homicidal 104.2 ideation or behavior, recurrent or frequent psychosomatic 104.3 disorders or somatopsychic disorders that may become life 104.4 threatening, recurrent or frequent severe socially unacceptable 104.5 behavior associated with psychiatric disorder, ongoing and 104.6 chronic psychosis or severe, ongoing and chronic developmental 104.7 problems requiring continuous skilled observation, or severe 104.8 disabling symptoms for which office-centered outpatient 104.9 treatment is not adequate, and which overall severely impact the 104.10 individual's ability to function. 104.11 (c) For purposes of this subdivision, "nursing facility" 104.12 means a facility which provides nursing care as defined in 104.13 section 144A.01, subdivision 5, licensed pursuant to sections 104.14 144A.02 to 144A.10, which is appropriate if a person is in 104.15 active restorative treatment; is in need of special treatments 104.16 provided or supervised by a licensed nurse; or has unpredictable 104.17 episodes of active disease processes requiring immediate 104.18 judgment by a licensed nurse. For purposes of this subdivision, 104.19 a child requires the level of care provided in a nursing 104.20 facility if the child is determined by the commissioner to meet 104.21 the requirements of the preadmission screening assessment 104.22 document under section 256B.0911 and the home care independent 104.23 rating document under section 256B.0627, subdivision 5, 104.24 paragraph (f), item (iii), adjusted to address age-appropriate 104.25 standards for children age 18 and under, pursuant to section 104.26 256B.0627, subdivision 5, paragraph (d), clause (2). 104.27 (d) For purposes of this subdivision, "intermediate care 104.28 facility for persons with mental retardation or related 104.29 conditions" or "ICF/MR" means a program licensed to provide 104.30 services to persons with mental retardation under section 104.31 252.28, and chapter 245A, and a physical plant licensed as a 104.32 supervised living facility under chapter 144, which together are 104.33 certified by the Minnesota department of health as meeting the 104.34 standards in Code of Federal Regulations, title 42, part 483, 104.35 for an intermediate care facility which provides services for 104.36 persons with mental retardation or persons with related 105.1 conditions who require 24-hour supervision and active treatment 105.2 for medical, behavioral, or habilitation needs. For purposes of 105.3 this subdivision, a child requires a level of care provided in 105.4 an ICF/MR if the commissioner finds that the child has mental 105.5 retardation or a related condition in accordance with section 105.6 256B.092, is in need of a 24-hour plan of care and active 105.7 treatment similar to persons with mental retardation, and there 105.8 is a reasonable indication that the child will need ICF/MR 105.9 services. 105.10 (e) For purposes of this subdivision, a person requires the 105.11 level of care provided in a nursing facility if the person 105.12 requires 24-hour monitoring or supervision and a plan of mental 105.13 health treatment because of specific symptoms or functional 105.14 impairments associated with a serious mental illness or disorder 105.15 diagnosis, which meet severity criteria for mental health 105.16 established by the commissionerbased on standards developed for105.17the Wisconsin Katie Beckett programand published inJuly 1994105.18 March 1997 as the Minnesota Mental Health Level of Care for 105.19 Children and Adolescents with Severe Emotional Disorders. 105.20 (f) The determination of the level of care needed by the 105.21 child shall be made by the commissioner based on information 105.22 supplied to the commissioner by the parent or guardian, the 105.23 child's physician or physicians, and other professionals as 105.24 requested by the commissioner. The commissioner shall establish 105.25 a screening team to conduct the level of care determinations 105.26 according to this subdivision. 105.27 (g) If a child meets the conditions in paragraph (b), (c), 105.28 (d), or (e), the commissioner must assess the case to determine 105.29 whether: 105.30 (1) the child qualifies as a disabled individual under 105.31 United States Code, title 42, section 1382c(a), and would be 105.32 eligible for medical assistance if residing in a medical 105.33 institution; and 105.34 (2) the cost of medical assistance services for the child, 105.35 if eligible under this subdivision, would not be more than the 105.36 cost to medical assistance if the child resides in a medical 106.1 institution to be determined as follows: 106.2 (i) for a child who requires a level of care provided in an 106.3 ICF/MR, the cost of care for the child in an institution shall 106.4 be determined using the average payment rate established for the 106.5 regional treatment centers that are certified as ICFs/MR; 106.6 (ii) for a child who requires a level of care provided in 106.7 an inpatient hospital setting according to paragraph (b), 106.8 cost-effectiveness shall be determined according to Minnesota 106.9 Rules, part 9505.3520, items F and G; and 106.10 (iii) for a child who requires a level of care provided in 106.11 a nursing facility according to paragraph (c) or (e), 106.12 cost-effectiveness shall be determined according to Minnesota 106.13 Rules, part 9505.3040, except that the nursing facility average 106.14 rate shall be adjusted to reflect rates which would be paid for 106.15 children under age 16. The commissioner may authorize an amount 106.16 up to the amount medical assistance would pay for a child 106.17 referred to the commissioner by the preadmission screening team 106.18 under section 256B.0911. 106.19 (h) Children eligible for medical assistance services under 106.20 section 256B.055, subdivision 12, as of June 30, 1995, must be 106.21 screened according to the criteria in this subdivision prior to 106.22 January 1, 1996. Children found to be ineligible may not be 106.23 removed from the program until January 1, 1996. 106.24 Sec. 22. Minnesota Statutes 1996, section 256B.056, 106.25 subdivision 4, is amended to read: 106.26 Subd. 4. [INCOME.] To be eligible for medical assistance, 106.27 a person must not have, or anticipate receiving, semiannual 106.28 income in excess of 120 percent of the income standards by 106.29 family size used in the aid to families with dependent children 106.30 program, except that families and children may have an income up 106.31 to 133-1/3 percent of the AFDC income standard. In computing 106.32 income to determine eligibility of persons who are not residents 106.33 of long-term care facilities, the commissioner shall disregard 106.34 increases in income as required by Public Law Numbers 94-566, 106.35 section 503; 99-272; and 99-509. Veterans aid and attendance 106.36 benefits and Veterans Administration unusual medical expense 107.1 payments are considered income to the recipient. 107.2 Sec. 23. Minnesota Statutes 1996, section 256B.056, 107.3 subdivision 5, is amended to read: 107.4 Subd. 5. [EXCESS INCOME.] A person who has excess income 107.5 is eligible for medical assistance if the person has expenses 107.6 for medical care that are more than the amount of the person's 107.7 excess income, computed by deducting incurred medical expenses 107.8 from the excess income to reduce the excess to the income 107.9 standard specified in subdivision 4. The person shall elect to 107.10 have the medical expenses deducted at the beginning of a 107.11 one-month budget period or at the beginning of a six-month 107.12 budget period.Until June 30, 1993, or the date the Medicaid107.13Management Information System (MMIS) upgrade is implemented,107.14whichever occurs last,The commissioner shall allow persons 107.15 eligible for assistance on a one-month spenddown basis under 107.16 this subdivision to elect to pay the monthly spenddown amount in 107.17 advance of the month of eligibility to thelocalstate agency in 107.18 order to maintain eligibility on a continuous basis. If the 107.19 recipient does not pay the spenddown amount on or before 107.20 the10th20th of the month, the recipient is ineligible for this 107.21 option for the following month.The local agency must deposit107.22spenddown payments into its treasury and issue a monthly payment107.23to the state agency with the necessary individual account107.24information.The local agency shall code theclient eligibility107.25 Medicaid Management Information System (MMIS) to indicate that 107.26 thespenddown obligation has been satisfied for the month107.27paidrecipient has elected this option. The state agency shall 107.28 conveythis informationrecipient eligibility information 107.29 relative to the collection of the spenddown to providers through 107.30eligibility cards which list no remaining spenddown obligation.107.31After the implementation of the MMIS upgrade,the Electronic 107.32 Verification System (EVS). A recipient electing advance payment 107.33 must pay the state agency the monthly spenddown amount on or 107.34 before the10th20th of the month in order to be eligible for 107.35 this option in the following month. 107.36 Sec. 24. Minnesota Statutes 1996, section 256B.057, 108.1 subdivision 1, is amended to read: 108.2 Subdivision 1. [PREGNANT WOMEN AND INFANTS.] An infant 108.3 less than one year of age or a pregnant woman who has written 108.4 verification of a positive pregnancy test from a physician or 108.5 licensed registered nurse, is eligible for medical assistance if 108.6 countable family income is equal to or less than 275 percent of 108.7 the federal poverty guideline for the same family size. For 108.8 purposes of this subdivision, "countable family income" means 108.9 the amount of income considered available using the methodology 108.10 of the AFDC program, except for the earned income disregard and 108.11 employment deductions. An amount equal to the amount of earned 108.12 income exceeding 275 percent of the federal poverty guideline, 108.13 up to a maximum of the amount by which the combined total of 185 108.14 percent of the federal poverty guideline plus the earned income 108.15 disregards and deductions of the AFDC program exceeds 275 108.16 percent of the federal poverty guideline will be deducted for 108.17 pregnant women and infants less than one year of age. 108.18Eligibility for a pregnant woman or infant less than one year of108.19age under this subdivision must be determined without regard to108.20asset standards established in section 256B.056, subdivision 3.108.21 An infant born on or after January 1, 1991, to a woman who 108.22 was eligible for and receiving medical assistance on the date of 108.23 the child's birth shall continue to be eligible for medical 108.24 assistance without redetermination until the child's first 108.25 birthday, as long as the child remains in the woman's household. 108.26 Sec. 25. Minnesota Statutes 1996, section 256B.057, 108.27 subdivision 1b, is amended to read: 108.28 Subd. 1b. [PREGNANT WOMEN AND INFANTS; EXPANSION.] This 108.29 subdivision supersedes subdivision 1 as long as the Minnesota 108.30 health care reform waiver remains in effect. When the waiver 108.31 expires, the commissioner of human services shall publish a 108.32 notice in the State Register and notify the revisor of 108.33 statutes. An infant less than two years of age or a pregnant 108.34 woman who has written verification of a positive pregnancy test 108.35 from a physician or licensed registered nurse, is eligible for 108.36 medical assistance if countable family income is equal to or 109.1 less than 275 percent of the federal poverty guideline for the 109.2 same family size. For purposes of this subdivision, "countable 109.3 family income" means the amount of income considered available 109.4 using the methodology of the AFDC program, except for the earned 109.5 income disregard and employment deductions. An amount equal to 109.6 the amount of earned income exceeding 275 percent of the federal 109.7 poverty guideline, up to a maximum of the amount by which the 109.8 combined total of 185 percent of the federal poverty guideline 109.9 plus the earned income disregards and deductions of the AFDC 109.10 program exceeds 275 percent of the federal poverty guideline 109.11 will be deducted for pregnant women and infants less than two 109.12 years of age.Eligibility for a pregnant woman or infant less109.13than two years of age under this subdivision must be determined109.14without regard to asset standards established in section109.15256B.056, subdivision 3.109.16 An infant born on or after January 1, 1991, to a woman who 109.17 was eligible for and receiving medical assistance on the date of 109.18 the child's birth shall continue to be eligible for medical 109.19 assistance without redetermination until the child's second 109.20 birthday, as long as the child remains in the woman's household. 109.21 Sec. 26. Minnesota Statutes 1996, section 256B.057, 109.22 subdivision 2, is amended to read: 109.23 Subd. 2. [CHILDREN.] A child one through five years of age 109.24 in a family whose countable income is less than 133 percent of 109.25 the federal poverty guidelines for the same family size, is 109.26 eligible for medical assistance. A child six through 18 years 109.27 of age, who was born after September 30, 1983, in a family whose 109.28 countable income is less than 100 percent of the federal poverty 109.29 guidelines for the same family size is eligible for medical 109.30 assistance.Eligibility for children under this subdivision109.31must be determined without regard to asset standards established109.32in section 256B.056, subdivision 3.109.33 Sec. 27. Minnesota Statutes 1996, section 256B.0625, is 109.34 amended by adding a subdivision to read: 109.35 Subd. 31a. [AUGMENTATIVE AND ALTERNATIVE COMMUNICATION 109.36 SYSTEMS.] (a) Medical assistance covers augmentative and 110.1 alternative communication systems consisting of electronic or 110.2 nonelectronic devices and the related components necessary to 110.3 enable a person with severe expressive communication limitations 110.4 to produce or transmit messages or symbols in a manner that 110.5 compensates for that disability. 110.6 (b) By January 1, 1998, the commissioner, in cooperation 110.7 with the commissioner of administration, shall establish an 110.8 augmentative and alternative communication system purchasing 110.9 program within a state agency or by contract with a qualified 110.10 private entity. The purpose of this service is to facilitate 110.11 ready availability of the augmentative and alternative 110.12 communication systems needed to meet the needs of persons with 110.13 severe expressive communication limitations in an efficient and 110.14 cost-effective manner. This program shall: 110.15 (1) coordinate purchase and rental of augmentative and 110.16 alternative communication systems; 110.17 (2) negotiate agreements with manufacturers and vendors for 110.18 purchase of components of these systems, for warranty coverage, 110.19 and for repair service; 110.20 (3) when efficient and cost-effective, maintain and 110.21 refurbish if needed, an inventory of components of augmentative 110.22 and alternative communication systems for short- or long-term 110.23 loan to recipients; 110.24 (4) facilitate training sessions for service providers, 110.25 consumers, and families on augmentative and alternative 110.26 communication systems; and 110.27 (5) develop a recycling program for used augmentative and 110.28 alternative communications systems to be reissued and used for 110.29 trials and short-term use, when appropriate. 110.30 The availability of components of augmentative and 110.31 alternative communication systems through this program is 110.32 subject to prior authorization requirements established under 110.33 subdivision 25. 110.34 Reimbursement rates established by this purchasing program 110.35 are not subject to Minnesota Rules, part 9505.0445, item S or T. 110.36 (c) Augmentative and alternative communication systems and 111.1 related components that are prior authorized by the department 111.2 through pass through vendors during the period from January 1, 111.3 1997, until the augmentative and alternative communication 111.4 system purchasing program or other alternatives are operational 111.5 shall be paid under the medical assistance program at the actual 111.6 price charged the pass through vendor plus 20 percent to cover 111.7 administrative costs of prior authorization and billing and 111.8 shipping charges. 111.9 Sec. 28. Minnesota Statutes 1996, section 256B.0626, is 111.10 amended to read: 111.11 256B.0626 [ESTIMATION OF 50TH PERCENTILE OF PREVAILING 111.12 CHARGES.] 111.13 (a) The 50th percentile of the prevailing charge for the 111.14 base year identified in statute must be estimated by the 111.15 commissioner in the following situations: 111.16 (1) there were less thantenfive billings in the calendar 111.17 year specified in legislation governing maximum payment rates; 111.18 (2) the service was not available in the calendar year 111.19 specified in legislation governing maximum payment rates; 111.20 (3) the payment amount is the result of a provider appeal; 111.21 (4) the procedure code description has changed since the 111.22 calendar year specified in legislation governing maximum payment 111.23 rates, and, therefore, the prevailing charge information 111.24 reflects the same code but a different procedure description; or 111.25 (5) the 50th percentile reflects a payment which is grossly 111.26 inequitable when compared with payment rates for procedures or 111.27 services which are substantially similar. 111.28 (b) When one of the situations identified in paragraph (a) 111.29 occurs, the commissioner shall use the following methodology to 111.30 reconstruct a rate comparable to the 50th percentile of the 111.31 prevailing rate: 111.32 (1) refer to information which exists for the firstnine111.33 four billings in the calendar year specified in legislation 111.34 governing maximum payment rates; or 111.35 (2) refer to surrounding or comparable procedure codes; or 111.36 (3) refer to the 50th percentile of years subsequent to the 112.1 calendar year specified in legislation governing maximum payment 112.2 rates, and reduce that amount by applying an appropriate 112.3 Consumer Price Index formula; or 112.4 (4) refer to relative value indexes; or 112.5 (5) refer to reimbursement information from other third 112.6 parties, such as Medicare. 112.7 Sec. 29. Minnesota Statutes 1996, section 256B.0627, 112.8 subdivision 5, is amended to read: 112.9 Subd. 5. [LIMITATION ON PAYMENTS.] Medical assistance 112.10 payments for home care services shall be limited according to 112.11 this subdivision. 112.12 (a) [LIMITS ON SERVICES WITHOUT PRIOR AUTHORIZATION.] A 112.13 recipient may receive the following home care services during a 112.14 calendar year: 112.15 (1) any initial assessment;and112.16 (2) up to two reassessments per year done to determine a 112.17 recipient's need for personal care services; and 112.18 (3) up to five skilled nurse visits. 112.19 (b) [PRIOR AUTHORIZATION; EXCEPTIONS.] All home care 112.20 services above the limits in paragraph (a) must receive the 112.21 commissioner's prior authorization, except when: 112.22 (1) the home care services were required to treat an 112.23 emergency medical condition that if not immediately treated 112.24 could cause a recipient serious physical or mental disability, 112.25 continuation of severe pain, or death. The provider must 112.26 request retroactive authorization no later than five working 112.27 days after giving the initial service. The provider must be 112.28 able to substantiate the emergency by documentation such as 112.29 reports, notes, and admission or discharge histories; 112.30 (2) the home care services were provided on or after the 112.31 date on which the recipient's eligibility began, but before the 112.32 date on which the recipient was notified that the case was 112.33 opened. Authorization will be considered if the request is 112.34 submitted by the provider within 20 working days of the date the 112.35 recipient was notified that the case was opened; 112.36 (3) a third-party payor for home care services has denied 113.1 or adjusted a payment. Authorization requests must be submitted 113.2 by the provider within 20 working days of the notice of denial 113.3 or adjustment. A copy of the notice must be included with the 113.4 request; 113.5 (4) the commissioner has determined that a county or state 113.6 human services agency has made an error; or 113.7 (5) the professional nurse determines an immediate need for 113.8 up to 40 skilled nursing or home health aide visits per calendar 113.9 year and submits a request for authorization within 20 working 113.10 days of the initial service date, and medical assistance is 113.11 determined to be the appropriate payer. 113.12 (c) [RETROACTIVE AUTHORIZATION.] A request for retroactive 113.13 authorization will be evaluated according to the same criteria 113.14 applied to prior authorization requests. 113.15 (d) [ASSESSMENT AND SERVICE PLAN.] Assessments under 113.16 section 256B.0627, subdivision 1, paragraph (a), shall be 113.17 conducted initially, and at least annually thereafter, in person 113.18 with the recipient and result in a completed service plan using 113.19 forms specified by the commissioner. Within 30 days of 113.20 recipient or responsible party request for home care services, 113.21 the assessment, the service plan, and other information 113.22 necessary to determine medical necessity such as diagnostic or 113.23 testing information, social or medical histories, and hospital 113.24 or facility discharge summaries shall be submitted to the 113.25 commissioner. For personal care services: 113.26 (1) The amount and type of service authorized based upon 113.27 the assessment and service plan will follow the recipient if the 113.28 recipient chooses to change providers. 113.29 (2) If the recipient's medical need changes, the 113.30 recipient's provider may assess the need for a change in service 113.31 authorization and request the change from the county public 113.32 health nurse. Within 30 days of the request, the public health 113.33 nurse will determine whether to request the change in services 113.34 based upon the provider assessment, or conduct a home visit to 113.35 assess the need and determine whether the change is appropriate. 113.36 (3) To continue to receive personal care services when the 114.1 recipient displays no significant change, the county public 114.2 health nurse has the option to review with the commissioner, or 114.3 the commissioner's designee, the service plan on record and 114.4 receive authorization for up to an additional 12 months at a 114.5 time for up to three years. 114.6 (e) [PRIOR AUTHORIZATION.] The commissioner, or the 114.7 commissioner's designee, shall review the assessment, the 114.8 service plan, and any additional information that is submitted. 114.9 The commissioner shall, within 30 days after receiving a 114.10 complete request, assessment, and service plan, authorize home 114.11 care services as follows: 114.12 (1) [HOME HEALTH SERVICES.] All home health services 114.13 provided by a licensed nurse or a home health aide must be prior 114.14 authorized by the commissioner or the commissioner's designee. 114.15 Prior authorization must be based on medical necessity and 114.16 cost-effectiveness when compared with other care options. When 114.17 home health services are used in combination with personal care 114.18 and private duty nursing, the cost of all home care services 114.19 shall be considered for cost-effectiveness. The commissioner 114.20 shall limit nurse and home health aide visits to no more than 114.21 one visit each per day. 114.22 (2) [PERSONAL CARE SERVICES.] (i) All personal care 114.23 services and registered nurse supervision must be prior 114.24 authorized by the commissioner or the commissioner's designee 114.25 except for the assessments established in paragraph (a). The 114.26 amount of personal care services authorized must be based on the 114.27 recipient's home care rating. A child may not be found to be 114.28 dependent in an activity of daily living if because of the 114.29 child's age an adult would either perform the activity for the 114.30 child or assist the child with the activity and the amount of 114.31 assistance needed is similar to the assistance appropriate for a 114.32 typical child of the same age. Based on medical necessity, the 114.33 commissioner may authorize: 114.34 (A) up to two times the average number of direct care hours 114.35 provided in nursing facilities for the recipient's comparable 114.36 case mix level; or 115.1 (B) up to three times the average number of direct care 115.2 hours provided in nursing facilities for recipients who have 115.3 complex medical needs or are dependent in at least seven 115.4 activities of daily living and need physical assistance with 115.5 eating or have a neurological diagnosis; or 115.6 (C) up to 60 percent of the average reimbursement rate, as 115.7 of July 1, 1991, for care provided in a regional treatment 115.8 center for recipients who have Level I behavior, plus any 115.9 inflation adjustment as provided by the legislature for personal 115.10 care service; or 115.11 (D) up to the amount the commissioner would pay, as of July 115.12 1, 1991, plus any inflation adjustment provided for home care 115.13 services, for care provided in a regional treatment center for 115.14 recipients referred to the commissioner by a regional treatment 115.15 center preadmission evaluation team. For purposes of this 115.16 clause, home care services means all services provided in the 115.17 home or community that would be included in the payment to a 115.18 regional treatment center; or 115.19 (E) up to the amount medical assistance would reimburse for 115.20 facility care for recipients referred to the commissioner by a 115.21 preadmission screening team established under section 256B.0911 115.22 or 256B.092; and 115.23 (F) a reasonable amount of time for the provision of 115.24 nursing supervision of personal care services. 115.25 (ii) The number of direct care hours shall be determined 115.26 according to the annual cost report submitted to the department 115.27 by nursing facilities. The average number of direct care hours, 115.28 as established by May 1, 1992, shall be calculated and 115.29 incorporated into the home care limits on July 1, 1992. These 115.30 limits shall be calculated to the nearest quarter hour. 115.31 (iii) The home care rating shall be determined by the 115.32 commissioner or the commissioner's designee based on information 115.33 submitted to the commissioner by the county public health nurse 115.34 on forms specified by the commissioner. The home care rating 115.35 shall be a combination of current assessment tools developed 115.36 under sections 256B.0911 and 256B.501 with an addition for 116.1 seizure activity that will assess the frequency and severity of 116.2 seizure activity and with adjustments, additions, and 116.3 clarifications that are necessary to reflect the needs and 116.4 conditions of recipients who need home care including children 116.5 and adults under 65 years of age. The commissioner shall 116.6 establish these forms and protocols under this section and shall 116.7 use an advisory group, including representatives of recipients, 116.8 providers, and counties, for consultation in establishing and 116.9 revising the forms and protocols. 116.10 (iv) A recipient shall qualify as having complex medical 116.11 needs if the care required is difficult to perform and because 116.12 of recipient's medical condition requires more time than 116.13 community-based standards allow or requires more skill than 116.14 would ordinarily be required and the recipient needs or has one 116.15 or more of the following: 116.16 (A) daily tube feedings; 116.17 (B) daily parenteral therapy; 116.18 (C) wound or decubiti care; 116.19 (D) postural drainage, percussion, nebulizer treatments, 116.20 suctioning, tracheotomy care, oxygen, mechanical ventilation; 116.21 (E) catheterization; 116.22 (F) ostomy care; 116.23 (G) quadriplegia; or 116.24 (H) other comparable medical conditions or treatments the 116.25 commissioner determines would otherwise require institutional 116.26 care. 116.27 (v) A recipient shall qualify as having Level I behavior if 116.28 there is reasonable supporting evidence that the recipient 116.29 exhibits, or that without supervision, observation, or 116.30 redirection would exhibit, one or more of the following 116.31 behaviors that cause, or have the potential to cause: 116.32 (A) injury to the recipient's own body; 116.33 (B) physical injury to other people; or 116.34 (C) destruction of property. 116.35 (vi) Time authorized for personal care relating to Level I 116.36 behavior in subclause (v), items (A) to (C), shall be based on 117.1 the predictability, frequency, and amount of intervention 117.2 required. 117.3 (vii) A recipient shall qualify as having Level II behavior 117.4 if the recipient exhibits on a daily basis one or more of the 117.5 following behaviors that interfere with the completion of 117.6 personal care services under subdivision 4, paragraph (a): 117.7 (A) unusual or repetitive habits; 117.8 (B) withdrawn behavior; or 117.9 (C) offensive behavior. 117.10 (viii) A recipient with a home care rating of Level II 117.11 behavior in subclause (vii), items (A) to (C), shall be rated as 117.12 comparable to a recipient with complex medical needs under 117.13 subclause (iv). If a recipient has both complex medical needs 117.14 and Level II behavior, the home care rating shall be the next 117.15 complex category up to the maximum rating under subclause (i), 117.16 item (B). 117.17 (3) [PRIVATE DUTY NURSING SERVICES.] All private duty 117.18 nursing services shall be prior authorized by the commissioner 117.19 or the commissioner's designee. Prior authorization for private 117.20 duty nursing services shall be based on medical necessity and 117.21 cost-effectiveness when compared with alternative care options. 117.22 The commissioner may authorize medically necessary private duty 117.23 nursing services in quarter-hour units when: 117.24 (i) the recipient requires more individual and continuous 117.25 care than can be provided during a nurse visit; or 117.26 (ii) the cares are outside of the scope of services that 117.27 can be provided by a home health aide or personal care assistant. 117.28 The commissioner may authorize: 117.29 (A) up to two times the average amount of direct care hours 117.30 provided in nursing facilities statewide for case mix 117.31 classification "K" as established by the annual cost report 117.32 submitted to the department by nursing facilities in May 1992; 117.33 (B) private duty nursing in combination with other home 117.34 care services up to the total cost allowed under clause (2); 117.35 (C) up to 16 hours per day if the recipient requires more 117.36 nursing than the maximum number of direct care hours as 118.1 established in item (A) and the recipient meets the hospital 118.2 admission criteria established under Minnesota Rules, parts 118.3 9505.0500 to 9505.0540. 118.4 The commissioner may authorize up to 16 hours per day of 118.5 medically necessary private duty nursing services or up to 24 118.6 hours per day of medically necessary private duty nursing 118.7 services until such time as the commissioner is able to make a 118.8 determination of eligibility for recipients who are 118.9 cooperatively applying for home care services under the 118.10 community alternative care program developed under section 118.11 256B.49, or until it is determined by the appropriate regulatory 118.12 agency that a health benefit plan is or is not required to pay 118.13 for appropriate medically necessary health care services. 118.14 Recipients or their representatives must cooperatively assist 118.15 the commissioner in obtaining this determination. Recipients 118.16 who are eligible for the community alternative care program may 118.17 not receive more hours of nursing under this section than would 118.18 otherwise be authorized under section 256B.49. 118.19 (4) [VENTILATOR-DEPENDENT RECIPIENTS.] If the recipient is 118.20 ventilator-dependent, the monthly medical assistance 118.21 authorization for home care services shall not exceed what the 118.22 commissioner would pay for care at the highest cost hospital 118.23 designated as a long-term hospital under the Medicare program. 118.24 For purposes of this clause, home care services means all 118.25 services provided in the home that would be included in the 118.26 payment for care at the long-term hospital. 118.27 "Ventilator-dependent" means an individual who receives 118.28 mechanical ventilation for life support at least six hours per 118.29 day and is expected to be or has been dependent for at least 30 118.30 consecutive days. 118.31 (f) [PRIOR AUTHORIZATION; TIME LIMITS.] The commissioner 118.32 or the commissioner's designee shall determine the time period 118.33 for which a prior authorization shall be effective. If the 118.34 recipient continues to require home care services beyond the 118.35 duration of the prior authorization, the home care provider must 118.36 request a new prior authorization. Under no circumstances, 119.1 other than the exceptions in paragraph (b), shall a prior 119.2 authorization be valid prior to the date the commissioner 119.3 receives the request or for more than 12 months. A recipient 119.4 who appeals a reduction in previously authorized home care 119.5 services may continue previously authorized services, other than 119.6 temporary services under paragraph (h), pending an appeal under 119.7 section 256.045. The commissioner must provide a detailed 119.8 explanation of why the authorized services are reduced in amount 119.9 from those requested by the home care provider. 119.10 (g) [APPROVAL OF HOME CARE SERVICES.] The commissioner or 119.11 the commissioner's designee shall determine the medical 119.12 necessity of home care services, the level of caregiver 119.13 according to subdivision 2, and the institutional comparison 119.14 according to this subdivision, the cost-effectiveness of 119.15 services, and the amount, scope, and duration of home care 119.16 services reimbursable by medical assistance, based on the 119.17 assessment, primary payer coverage determination information as 119.18 required, the service plan, the recipient's age, the cost of 119.19 services, the recipient's medical condition, and diagnosis or 119.20 disability. The commissioner may publish additional criteria 119.21 for determining medical necessity according to section 256B.04. 119.22 (h) [PRIOR AUTHORIZATION REQUESTS; TEMPORARY SERVICES.] 119.23 The agency nurse, the independently enrolled private duty nurse, 119.24 or county public health nurse may request a temporary 119.25 authorization for home care services by telephone. The 119.26 commissioner may approve a temporary level of home care services 119.27 based on the assessment, and service or care plan information, 119.28 and primary payer coverage determination information as required. 119.29 Authorization for a temporary level of home care services 119.30 including nurse supervision is limited to the time specified by 119.31 the commissioner, but shall not exceed 45 days, unless extended 119.32 because the county public health nurse has not completed the 119.33 required assessment and service plan, or the commissioner's 119.34 determination has not been made. The level of services 119.35 authorized under this provision shall have no bearing on a 119.36 future prior authorization. 120.1 (i) [PRIOR AUTHORIZATION REQUIRED IN FOSTER CARE SETTING.] 120.2 Home care services provided in an adult or child foster care 120.3 setting must receive prior authorization by the department 120.4 according to the limits established in paragraph (a). 120.5 The commissioner may not authorize: 120.6 (1) home care services that are the responsibility of the 120.7 foster care provider under the terms of the foster care 120.8 placement agreement and administrative rules. Requests for home 120.9 care services for recipients residing in a foster care setting 120.10 must include the foster care placement agreement and 120.11 determination of difficulty of care; 120.12 (2) personal care services when the foster care license 120.13 holder is also the personal care provider or personal care 120.14 assistant unless the recipient can direct the recipient's own 120.15 care, or case management is provided as required in section 120.16 256B.0625, subdivision 19a; 120.17 (3) personal care services when the responsible party is an 120.18 employee of, or under contract with, or has any direct or 120.19 indirect financial relationship with the personal care provider 120.20 or personal care assistant, unless case management is provided 120.21 as required in section 256B.0625, subdivision 19a; 120.22 (4) home care services when the number of foster care 120.23 residents is greater than four unless the county responsible for 120.24 the recipient's foster placement made the placement prior to 120.25 April 1, 1992, requests that home care services be provided, and 120.26 case management is provided as required in section 256B.0625, 120.27 subdivision 19a; or 120.28 (5) home care services when combined with foster care 120.29 payments, other than room and board payments that exceed the 120.30 total amount that public funds would pay for the recipient's 120.31 care in a medical institution. 120.32 Sec. 30. Minnesota Statutes 1996, section 256B.064, 120.33 subdivision 2, is amended to read: 120.34 Subd. 2. [IMPOSITION OF MONETARY RECOVERY AND SANCTIONS.] 120.35 (a) The commissioner shall determine monetary amounts to be 120.36 recovered and the sanction to be imposed upon a vendor of 121.1 medical care for conduct described by subdivision 1a. Exceptin121.2the case of a conviction for conduct described in subdivision 1a121.3 as provided in paragraph (b), neither a monetary recovery nor a 121.4 sanction will besoughtimposed by the commissioner without 121.5 prior notice and an opportunity for a hearing,pursuant121.6 according to chapter 14, on the commissioner's proposed action, 121.7 provided that the commissioner may suspend or reduce payment to 121.8 a vendor of medical care, except a nursing home or convalescent 121.9 care facility, after notice and prior to the hearing if in the 121.10 commissioner's opinion that action is necessary to protect the 121.11 public welfare and the interests of the program. 121.12 (b) Except for a nursing home or convalescent care 121.13 facility, the commissioner may withhold or reduce payments to a 121.14 vendor of medical care without providing advance notice of such 121.15 withholding or reduction if either of the following occurs: 121.16 (1) the vendor is convicted of a crime involving the 121.17 conduct described in subdivision 1a; or 121.18 (2) the commissioner receives reliable evidence of fraud or 121.19 willful misrepresentation by the vendor. 121.20 (c) The commissioner must send notice of the withholding or 121.21 reduction of payments under paragraph (b) within five days of 121.22 taking such action. The notice must: 121.23 (1) state that payments are being withheld according to 121.24 paragraph (b); 121.25 (2) except in the case of a conviction for conduct 121.26 described in subdivision 1a, state that the withholding is for a 121.27 temporary period and cite the circumstances under which 121.28 withholding will be terminated; 121.29 (3) identify the types of claims to which the withholding 121.30 applies; and 121.31 (4) inform the vendor of the right to submit written 121.32 evidence for consideration by the commissioner. 121.33 The withholding or reduction of payments will not continue 121.34 after the commissioner determines there is insufficient evidence 121.35 of fraud or willful misrepresentation by the vendor, or after 121.36 legal proceedings relating to the alleged fraud or willful 122.1 misrepresentation are completed, unless the commissioner has 122.2 sent notice of intention to impose monetary recovery or 122.3 sanctions under paragraph (a). 122.4 (d) Upon receipt of a notice under paragraph (a) that a 122.5 monetary recovery or sanction is to be imposed, a vendor may 122.6 request a contested case, as defined in section 14.02, 122.7 subdivision 3, by filing with the commissioner a written request 122.8 of appeal. The appeal request must be received by the 122.9 commissioner no later than 30 days after the date the 122.10 notification of monetary recovery or sanction was mailed to the 122.11 vendor. The appeal request must specify: 122.12 (1) each disputed item, the reason for the dispute, and an 122.13 estimate of the dollar amount involved for each disputed item; 122.14 (2) the computation that the vendor believes is correct; 122.15 (3) the authority in statute or rule upon which the vendor 122.16 relies for each disputed item; 122.17 (4) the name and address of the person or entity with whom 122.18 contacts may be made regarding the appeal; and 122.19 (5) other information required by the commissioner. 122.20 Sec. 31. Minnesota Statutes 1996, section 256B.0911, 122.21 subdivision 7, is amended to read: 122.22 Subd. 7. [REIMBURSEMENT FOR CERTIFIED NURSING FACILITIES.] 122.23 (a) Medical assistance reimbursement for nursing facilities 122.24 shall be authorized for a medical assistance recipient only if a 122.25 preadmission screening has been conducted prior to admission or 122.26 the local county agency has authorized an exemption. Medical 122.27 assistance reimbursement for nursing facilities shall not be 122.28 provided for any recipient who the local screener has determined 122.29 does not meet the level of care criteria for nursing facility 122.30 placement or, if indicated, has not had a level II PASARR 122.31 evaluation completed unless an admission for a recipient with 122.32 mental illness is approved by the local mental health authority 122.33 or an admission for a recipient with mental retardation or 122.34 related condition is approved by the state mental retardation 122.35 authority. The county preadmission screening team may deny 122.36 certified nursing facility admission using the level of care 123.1 criteria established under section 144.0721 and deny medical 123.2 assistance reimbursement for certified nursing facility care. 123.3 Persons receiving care in a certified nursing facility or 123.4 certified boarding care home who are reassessed by the 123.5 commissioner of health pursuant to section 144.0722 and 123.6 determined to no longer meet the level of care criteria for a 123.7 certified nursing facility or certified boarding care home may 123.8 no longer remain a resident in the certified nursing facility or 123.9 certified boarding care home and must be relocated to the 123.10 community as provided under paragraphs (b), (c), and (d), if the 123.11 persons were admitted on or after July 1,19961997. 123.12 (b) A resident who, upon reassessment, is determined to no 123.13 longer meet the level of care criteria for a certified nursing 123.14 facility or certified boarding care home is deemed to not need 123.15 the services provided by a nursing facility. Such a resident 123.16 may not receive medical assistance payment for nursing facility 123.17 or boarding care services and must be discharged according to 123.18 this subdivision. 123.19 A resident who is determined to no longer need nursing 123.20 facility services may ask for a reconsideration of the 123.21 resident's case mix and level of care assessment under section 123.22 144.0722. If reconsideration is not requested, the resident may 123.23 not appeal the assessment. If the resident is determined to not 123.24 meet the level of care criteria for treatment in a nursing 123.25 facility, the commissioner of human services shall notify the 123.26 nursing facility that the resident's health has improved 123.27 sufficiently so the resident no longer needs the services 123.28 provided by a nursing facility and that the resident must be 123.29 discharged within 60 days after the facility receives notice, 123.30 regardless of the source of payment for the resident's care. 123.31 The ground for discharge shall be that the resident's health has 123.32 improved sufficiently so that the resident no longer needs the 123.33 services of the nursing facility. The nursing facility shall 123.34 discharge the resident in accordance with federal regulations 123.35 that govern discharge of residents of certified nursing 123.36 facilities. If the resident's care is paid for by medical 124.1 assistance, the commissioner of human services must also notify 124.2 the resident that medical assistance payment for the resident's 124.3 nursing facility services will terminate 60 days after the 124.4 resident receives the notice. 124.5 (c) The resident may request, within 14 days of receiving 124.6 notice of discharge or of termination of medical assistance 124.7 payments, an assessment from the local screening team defined 124.8 under section 256B.0911 to determine whether extraordinary 124.9 circumstances as defined in section 144.0721, subdivision 3, 124.10 exist. The screening team must issue a written decision within 124.11 ten days of the resident's request. If the screening team finds 124.12 that extraordinary circumstances exist, the resident need not be 124.13 discharged and medical assistance payments shall not be 124.14 discontinued on the resident's behalf. 124.15 (d) A resident notified of discharge or of discontinuance 124.16 of medical assistance payment under this section may appeal 124.17 under section 256.045 within 30 days of receiving notice of 124.18 discharge or of termination of medical assistance payments, or 124.19 within 30 days of the screening team's decision that 124.20 extraordinary circumstances do not exist, whichever is later. 124.21 Medical assistance payments shall continue and the resident 124.22 shall not be discharged until the commissioner of human services 124.23 issues a decision on the appeal. The nursing facility may 124.24 participate in the hearing for the limited purpose of proving 124.25 that the resident meets the level of care criteria. If, after a 124.26 hearing, the commissioner of human services determines either 124.27 that the resident meets the level of care criteria for nursing 124.28 facility services or that extraordinary circumstances as defined 124.29 in section 144.0721, subdivision 3, exist, medical assistance 124.30 shall not be terminated and the resident shall not be 124.31 discharged. A resident's appeal of discharge under this section 124.32 may be appealed only under section 256.045 and not section 124.33 144.135. 124.34 (e) Persons receiving services under section 256B.0913, 124.35 subdivisions 1 to 14, or 256B.0915 who are reassessed and found 124.36 to not meet the level of care criteria for admission to a 125.1 certified nursing facility or certified boarding care home may 125.2 no longer receive these services if persons were admitted to the 125.3 program on or after July 1,19961997. Reassessed individuals 125.4 ineligible for services under section 256B.0913, subdivisions 1 125.5 to 14, or 256B.0915, are entitled to an appeal under section 125.6 256.045, subdivision 3. The commissioner shall make a request 125.7 to the health care financing administration for a waiver 125.8 allowing screening team approval of Medicaid payments for 125.9 certified nursing facility care. An individual has a choice and 125.10 makes the final decision between nursing facility placement and 125.11 community placement after the screening team's recommendation, 125.12 except as provided in paragraphs (b) and (c). 125.13(b)(f) The local county mental health authority or the 125.14 state mental retardation authority under Public Law Numbers 125.15 100-203 and 101-508 may prohibit admission to a nursing 125.16 facility, if the individual does not meet the nursing facility 125.17 level of care criteria or needs specialized services as defined 125.18 in Public Law Numbers 100-203 and 101-508. For purposes of this 125.19 section, "specialized services" for a person with mental 125.20 retardation or a related condition means "active treatment" as 125.21 that term is defined in Code of Federal Regulations, title 42, 125.22 section 483.440(a)(1). 125.23(c)(g) Upon the receipt by the commissioner of approval by 125.24 the Secretary of Health and Human Services of the waiver 125.25 requested under paragraph (a), the local screener shall deny 125.26 medical assistance reimbursement for nursing facility care for 125.27 an individual whose long-term care needs can be met in a 125.28 community-based setting and whose cost of community-based home 125.29 care services is less than 75 percent of the average payment for 125.30 nursing facility care for that individual's case mix 125.31 classification, and who is either: 125.32 (i) a current medical assistance recipient being screened 125.33 for admission to a nursing facility; or 125.34 (ii) an individual who would be eligible for medical 125.35 assistance within 180 days of entering a nursing facility and 125.36 who meets a nursing facility level of care. 126.1(d)(h) Appeals from the screening team's recommendation or 126.2 the county agency's final decision shall be made according to 126.3 section 256.045, subdivision 3. 126.4 Sec. 32. Minnesota Statutes 1996, section 256B.0913, 126.5 subdivision 7, is amended to read: 126.6 Subd. 7. [CASE MANAGEMENT.]The lead agency shall appoint126.7a social worker from the county agency or a registered nurse126.8from the county public health nursing service of the local board126.9of health to be the case manager for any person receiving126.10services funded by the alternative care program.Providers of 126.11 case management services for persons receiving services funded 126.12 by the alternative care program must meet the qualification 126.13 requirements and standards specified in section 256B.0915, 126.14 subdivision 1b. The case manager must ensure the health and 126.15 safety of the individual client and is responsible for the 126.16 cost-effectiveness of the alternative care individual care 126.17 plan. The county may allow a case manager employed by the 126.18 county to delegate certain aspects of the case management 126.19 activity to another individual employed by the county provided 126.20 there is oversight of the individual by the case manager. The 126.21 case manager may not delegate those aspects which require 126.22 professional judgment including assessments, reassessments, and 126.23 care plan development. 126.24 Sec. 33. Minnesota Statutes 1996, section 256B.0913, 126.25 subdivision 10, is amended to read: 126.26 Subd. 10. [ALLOCATION FORMULA.] (a) The alternative care 126.27 appropriation for fiscal years 1992 and beyond shall cover only 126.28 180-day eligible clients. 126.29 (b) Prior to July 1 of each year, the commissioner shall 126.30 allocate to county agencies the state funds available for 126.31 alternative care for persons eligible under subdivision 2. The 126.32 allocation for fiscal year 1992 shall be calculated using a base 126.33 that is adjusted to exclude the medical assistance share of 126.34 alternative care expenditures. The adjusted base is calculated 126.35 by multiplying each county's allocation for fiscal year 1991 by 126.36 the percentage of county alternative care expenditures for 127.1 180-day eligible clients. The percentage is determined based on 127.2 expenditures for services rendered in fiscal year 1989 or 127.3 calendar year 1989, whichever is greater. 127.4 (c) If the county expenditures for 180-day eligible clients 127.5 are 95 percent or more of its adjusted base allocation, the 127.6 allocation for the next fiscal year is 100 percent of the 127.7 adjusted base, plus inflation to the extent that inflation is 127.8 included in the state budget. 127.9 (d) If the county expenditures for 180-day eligible clients 127.10 are less than 95 percent of its adjusted base allocation, the 127.11 allocation for the next fiscal year is the adjusted base 127.12 allocation less the amount of unspent funds below the 95 percent 127.13 level. 127.14 (e) For fiscal year 1992 only, a county may receive an 127.15 increased allocation if annualized service costs for the month 127.16 of May 1991 for 180-day eligible clients are greater than the 127.17 allocation otherwise determined. A county may apply for this 127.18 increase by reporting projected expenditures for May to the 127.19 commissioner by June 1, 1991. The amount of the allocation may 127.20 exceed the amount calculated in paragraph (b). The projected 127.21 expenditures for May must be based on actual 180-day eligible 127.22 client caseload and the individual cost of clients' care plans. 127.23 If a county does not report its expenditures for May, the amount 127.24 in paragraph (c) or (d) shall be used. 127.25 (f) Calculations for paragraphs (c) and (d) are to be made 127.26 as follows: for each county, the determination of expenditures 127.27 shall be based on payments for services rendered from April 1 127.28 through March 31 in the base year, to the extent that claims 127.29 have been submitted by June 1 of that year. Calculations for 127.30 paragraphs (c) and (d) must also include the funds transferred 127.31 to the consumer support grant program for clients who have 127.32 transferred to that program from April 1 through March 31 in the 127.33 base year. 127.34 Sec. 34. Minnesota Statutes 1996, section 256B.0913, 127.35 subdivision 15, is amended to read: 127.36 Subd. 15. [SERVICE ALLOWANCE FUND AVAILABILITY.] (a) 128.1 Effective July 1,19961997, the commissioner may use 128.2 alternative care funds for services to high function class A 128.3 persons as defined in section 144.0721, subdivision 3, clause 128.4 (2). The county alternative care grant allocation will be 128.5 supplemented with a special allocation amountbased on the128.6projected number of eligible high function class A's and128.7computed on the basis of $240 per month per projected eligible128.8person. Individual monthly expenditures under the service128.9allowance option are permitted to be either greater or less than128.10the amount of $240 per month based on individual need. County128.11allocations shall be adjusted periodically based on the actual128.12provision of services to high function class A persons. The 128.13 allocation will be distributed by a population based formula and 128.14 shall not exceed the proportion of projected savings made 128.15 available under section 144.0721, subdivision 3. 128.16 (b) Counties shall have the option of providing services, 128.17 cash service allowances, vouchers, or a combination of these 128.18 options to high function class A persons defined in section 128.19 144.0721, subdivision 3, clause (2). High function class A 128.20 persons may choose services from among the categories of 128.21 services listed under subdivision 5, except for case management 128.22 services. 128.23 (c) If the special allocation under this section to a 128.24 county is not sufficient to serve all persons who qualify 128.25 foralternative care servicesthe service allowance, the county 128.26 is not required to provide anyalternative careservices to a 128.27 high function class A person but shall establish a waiting list 128.28 to provide services as special allocation funding becomes 128.29 available. 128.30 Sec. 35. Minnesota Statutes 1996, section 256B.0915, 128.31 subdivision 1b, is amended to read: 128.32 Subd. 1b. [PROVIDER QUALIFICATIONS AND STANDARDS.] The 128.33 commissioner must enroll qualified providers of elderly case 128.34 management services under the home and community-based waiver 128.35 for the elderly under section 1915(c) of the Social Security 128.36 Act. The enrollment process shall ensure the provider's ability 129.1 to meet the qualification requirements and standards in this 129.2 subdivision and other federal and state requirements of this 129.3 service. An elderly case management provider is an enrolled 129.4 medical assistance provider who is determined by the 129.5 commissioner to have all of the following characteristics: 129.6 (1)the legal authority for alternative care program129.7administration under section 256B.0913;129.8(2)the demonstrated capacity and experience to provide the 129.9 components of case management to coordinate and link community 129.10 resources needed by the eligible population; 129.11(3)(2) administrative capacity and experience in serving 129.12 the target population for whom it will provide services and in 129.13 ensuring quality of services under state and federal 129.14 requirements; 129.15(4) the legal authority to provide preadmission screening129.16under section 256B.0911, subdivision 4;129.17(5)(3) a financial management system that provides 129.18 accurate documentation of services and costs under state and 129.19 federal requirements; 129.20(6)(4) the capacity to document and maintain individual 129.21 case records under state and federal requirements; and 129.22(7)(5) the county may allow a case manager employed by the 129.23 county to delegate certain aspects of the case management 129.24 activity to another individual employed by the county provided 129.25 there is oversight of the individual by the case manager. The 129.26 case manager may not delegate those aspects which require 129.27 professional judgment including assessments, reassessments, and 129.28 care plan development. 129.29 Sec. 36. Minnesota Statutes 1996, section 256B.0917, 129.30 subdivision 7, is amended to read: 129.31 Subd. 7. [CONTRACT.] The commissioner of human services 129.32 shall execute a contract with an organization experienced in 129.33 establishing and operating community-based programs that have 129.34 used the principles listed in subdivision 8, paragraph (b), in 129.35 order to meet the independent living and health needs of senior 129.36 citizens aged 65 and over and provide community-based long-term 130.1 care for senior citizens in their homes. The organization shall: 130.2 (1) assist the commissioner in developing criteria for and 130.3 in awarding grants to establish community-based organizations 130.4 that will implement living-at-home/block nurse programs 130.5 throughout the state; 130.6 (2) assist the commissioner in awarding grants to enable 130.7 current living-at-home/block nurse programs to implement the 130.8 combined living-at-home/block nurse program model; 130.9 (3) serve as a state technical assistance center to assist 130.10 and coordinate the living-at-home/block nurse programs 130.11 established;and130.12 (4) develop the implementation plan required by subdivision 130.13 10; and 130.14 (5) manage the contracts between the commissioner and 130.15 individual living-at-home/block nurse programs. 130.16 Sec. 37. Minnesota Statutes 1996, section 256B.0917, 130.17 subdivision 8, is amended to read: 130.18 Subd. 8. [LIVING-AT-HOME/BLOCK NURSE PROGRAM GRANT.] (a) 130.19 The commissioner, in cooperation with the organization awarded 130.20 the contract under subdivision 7, shall develop and administer a 130.21 grant program to establish or expand up to1525 community-based 130.22 organizations that will implement living-at-home/block nurse 130.23 programs that are designed to enable senior citizens to live as 130.24 independently as possible in their homes and in their 130.25 communities. At least seven of the programs must be in counties 130.26 outside the seven-county metropolitan area. The 130.27 living-at-home/block nurse program funds shall be available to 130.28 the four to six SAIL projects established under this section. 130.29 Nonprofit organizations and units of local government are 130.30 eligible to apply for grants to establish the community 130.31 organizations that will implement living-at-home/block nurse 130.32 programs. In awarding grants, the commissioner shall give 130.33 preference to nonprofit organizations and units of local 130.34 government from communities that: 130.35 (1) have high nursing home occupancy rates; 130.36 (2) have a shortage of health care professionals;and131.1 (3) are located in counties adjacent to counties with 131.2 existing living-at-home/block nurse programs; and 131.3 (4) meet other criteria established by the commissioner, in 131.4 consultation with the organization under contract. 131.5 (b) Grant applicants must also meet the following criteria: 131.6 (1) the local community demonstrates a readiness to 131.7 establish a community model of care, including the formation of 131.8 a board of directors, advisory committee, or similar group, of 131.9 which at least two-thirds is comprised of community citizens 131.10 interested in community-based care for older persons; 131.11 (2) the program has sponsorship by a credible, 131.12 representative organization within the community; 131.13 (3) the program has defined specific geographic boundaries 131.14 and defined its organization, staffing and coordination/delivery 131.15 of services; 131.16 (4) the program demonstrates a team approach to 131.17 coordination and care, ensuring that the older adult 131.18 participants, their families, the formal and informal providers 131.19 are all part of the effort to plan and provide services; and 131.20 (5) the program provides assurances that all community 131.21 resources and funding will be coordinated and that other funding 131.22 sources will be maximized, including a person's own resources. 131.23 (c) Grant applicants must provide a minimum of five percent 131.24 of total estimated development costs from local community 131.25 funding. Grants shall be awarded for two-year periods, and the 131.26 base amount shall not exceed $40,000 per applicant for the grant 131.27 period. The commissioner, in consultation with the organization 131.28 under contract, may increase the grant amount for applicants 131.29 from communities that have socioeconomic characteristics that 131.30 indicate a higher level of need for development 131.31 assistance. Subject to the availability of funding, grants and 131.32 grant renewals awarded or entered into on or after July 1, 1997, 131.33 shall be renewed by the commissioner every two years, unless the 131.34 commissioner, in consultation with the organization awarded the 131.35 contract under subdivision 7, determines that the grant 131.36 recipient has not satisfactorily operated the 132.1 living-at-home/block nurse program in compliance with the 132.2 requirements of paragraph (d). Grants provided to 132.3 living-at-home/block nurse programs under this paragraph may be 132.4 used for both program development and the delivery of services. 132.5 (d) Each living-at-home/block nurse program shall be 132.6 designed by representatives of the communities being served to 132.7 ensure that the program addresses the specific needs of the 132.8 community residents. The programs must be designed to: 132.9 (1) incorporate the basic community, organizational, and 132.10 service delivery principles of the living-at-home/block nurse 132.11 program model; 132.12 (2) provide senior citizens with registered nurse directed 132.13 assessment, provision and coordination of health and personal 132.14 care services on a sliding fee basis as an alternative to 132.15 expensive nursing home care; 132.16 (3) provide information, support services, homemaking 132.17 services, counseling, and training for the client and family 132.18 caregivers; 132.19 (4) encourage the development and use of respite care, 132.20 caregiver support, and in-home support programs, such as adult 132.21 foster care and in-home adult day care; 132.22 (5) encourage neighborhood residents and local 132.23 organizations to collaborate in meeting the needs of senior 132.24 citizens in their communities; 132.25 (6) recruit, train, and direct the use of volunteers to 132.26 provide informal services and other appropriate support to 132.27 senior citizens and their caregivers; and 132.28 (7) provide coordination and management of formal and 132.29 informal services to senior citizens and their families using 132.30 less expensive alternatives. 132.31 Sec. 38. Minnesota Statutes 1996, section 256B.431, 132.32 subdivision 3f, is amended to read: 132.33 Subd. 3f. [PROPERTY COSTS AFTER JULY 1, 1988.] (a) 132.34 [INVESTMENT PER BED LIMIT.] For the rate year beginning July 1, 132.35 1988, the replacement-cost-new per bed limit must be $32,571 per 132.36 licensed bed in multiple bedrooms and $48,857 per licensed bed 133.1 in a single bedroom. For the rate year beginning July 1, 1989, 133.2 the replacement-cost-new per bed limit for a single bedroom must 133.3 be $49,907 adjusted according to Minnesota Rules, part 133.4 9549.0060, subpart 4, item A, subitem (1). Beginning January 1, 133.5 1990, the replacement-cost-new per bed limits must be adjusted 133.6 annually as specified in Minnesota Rules, part 9549.0060, 133.7 subpart 4, item A, subitem (1). Beginning January 1, 1991, the 133.8 replacement-cost-new per bed limits will be adjusted annually as 133.9 specified in Minnesota Rules, part 9549.0060, subpart 4, item A, 133.10 subitem (1), except that the index utilized will be the Bureau 133.11 of the Census: Composite fixed-weighted price index as 133.12 published in theSurvey of Current BusinessC30 Report, Value of 133.13 New Construction Put in Place. 133.14 (b) [RENTAL FACTOR.] For the rate year beginning July 1, 133.15 1988, the commissioner shall increase the rental factor as 133.16 established in Minnesota Rules, part 9549.0060, subpart 8, item 133.17 A, by 6.2 percent rounded to the nearest 100th percent for the 133.18 purpose of reimbursing nursing facilities for soft costs and 133.19 entrepreneurial profits not included in the cost valuation 133.20 services used by the state's contracted appraisers. For rate 133.21 years beginning on or after July 1, 1989, the rental factor is 133.22 the amount determined under this paragraph for the rate year 133.23 beginning July 1, 1988. 133.24 (c) [OCCUPANCY FACTOR.] For rate years beginning on or 133.25 after July 1, 1988, in order to determine property-related 133.26 payment rates under Minnesota Rules, part 9549.0060, for all 133.27 nursing facilities except those whose average length of stay in 133.28 a skilled level of care within a nursing facility is 180 days or 133.29 less, the commissioner shall use 95 percent of capacity days. 133.30 For a nursing facility whose average length of stay in a skilled 133.31 level of care within a nursing facility is 180 days or less, the 133.32 commissioner shall use the greater of resident days or 80 133.33 percent of capacity days but in no event shall the divisor 133.34 exceed 95 percent of capacity days. 133.35 (d) [EQUIPMENT ALLOWANCE.] For rate years beginning on 133.36 July 1, 1988, and July 1, 1989, the commissioner shall add ten 134.1 cents per resident per day to each nursing facility's 134.2 property-related payment rate. The ten-cent property-related 134.3 payment rate increase is not cumulative from rate year to rate 134.4 year. For the rate year beginning July 1, 1990, the 134.5 commissioner shall increase each nursing facility's equipment 134.6 allowance as established in Minnesota Rules, part 9549.0060, 134.7 subpart 10, by ten cents per resident per day. For rate years 134.8 beginning on or after July 1, 1991, the adjusted equipment 134.9 allowance must be adjusted annually for inflation as in 134.10 Minnesota Rules, part 9549.0060, subpart 10, item E. For the 134.11 rate period beginning October 1, 1992, the equipment allowance 134.12 for each nursing facility shall be increased by 28 percent. For 134.13 rate years beginning after June 30, 1993, the allowance must be 134.14 adjusted annually for inflation. 134.15 (e) [POST CHAPTER 199 RELATED-ORGANIZATION DEBTS AND 134.16 INTEREST EXPENSE.] For rate years beginning on or after July 1, 134.17 1990, Minnesota Rules, part 9549.0060, subpart 5, item E, shall 134.18 not apply to outstanding related organization debt incurred 134.19 prior to May 23, 1983, provided that the debt was an allowable 134.20 debt under Minnesota Rules, parts 9510.0010 to 9510.0480, the 134.21 debt is subject to repayment through annual principal payments, 134.22 and the nursing facility demonstrates to the commissioner's 134.23 satisfaction that the interest rate on the debt was less than 134.24 market interest rates for similar arms-length transactions at 134.25 the time the debt was incurred. If the debt was incurred due to 134.26 a sale between family members, the nursing facility must also 134.27 demonstrate that the seller no longer participates in the 134.28 management or operation of the nursing facility. Debts meeting 134.29 the conditions of this paragraph are subject to all other 134.30 provisions of Minnesota Rules, parts 9549.0010 to 9549.0080. 134.31 (f) [BUILDING CAPITAL ALLOWANCE FOR NURSING FACILITIES 134.32 WITH OPERATING LEASES.] For rate years beginning on or after 134.33 July 1, 1990, a nursing facility with operating lease costs 134.34 incurred for the nursing facility's buildings shall receive its 134.35 building capital allowance computed in accordance with Minnesota 134.36 Rules, part 9549.0060, subpart 8. 135.1 Sec. 39. Minnesota Statutes 1996, section 256B.69, 135.2 subdivision 2, is amended to read: 135.3 Subd. 2. [DEFINITIONS.] For the purposes of this section, 135.4 the following terms have the meanings given. 135.5 (a) "Commissioner" means the commissioner of human services. 135.6 For the remainder of this section, the commissioner's 135.7 responsibilities for methods and policies for implementing the 135.8 project will be proposed by the project advisory committees and 135.9 approved by the commissioner. 135.10 (b) "Demonstration provider" meansan individual, agency,135.11organization, or group of these entitiesa health maintenance 135.12 organization or community integrated service network authorized 135.13 and operating under chapter 62D or 62N that participates in the 135.14 demonstration project according to criteria, standards, methods, 135.15 and other requirements established for the project and approved 135.16 by the commissioner. 135.17 (c) "Eligible individuals" means those persons eligible for 135.18 medical assistance benefits as defined in sections 256B.055, 135.19 256B.056, and 256B.06. 135.20 (d) "Limitation of choice" means suspending freedom of 135.21 choice while allowing eligible individuals to choose among the 135.22 demonstration providers. 135.23 (e) This paragraph supersedes paragraph (c) as long as the 135.24 Minnesota health care reform waiver remains in effect. When the 135.25 waiver expires, this paragraph expires and the commissioner of 135.26 human services shall publish a notice in the State Register and 135.27 notify the revisor of statutes. "Eligible individuals" means 135.28 those persons eligible for medical assistance benefits as 135.29 defined in sections 256B.055, 256B.056, and 256B.06. 135.30 Notwithstanding sections 256B.055, 256B.056, and 256B.06, an 135.31 individual who becomes ineligible for the program because of 135.32 failure to submit income reports or recertification forms in a 135.33 timely manner, shall remain enrolled in the prepaid health plan 135.34 and shall remain eligible to receive medical assistance coverage 135.35 through the last day of the month following the month in which 135.36 the enrollee became ineligible for the medical assistance 136.1 program. 136.2 Sec. 40. Minnesota Statutes 1996, section 256B.69, 136.3 subdivision 3a, is amended to read: 136.4 Subd. 3a. [COUNTY AUTHORITY.] (a) The commissioner, when 136.5 implementing the general assistance medical care, or medical 136.6 assistance prepayment program within a county, must include the 136.7 county board in the process of development, approval, and 136.8 issuance of the request for proposals to provide services to 136.9 eligible individuals within the proposed county. County boards 136.10 must be given reasonable opportunity to make recommendations 136.11 regarding the development, issuance, review of responses, and 136.12 changes needed in the request for proposals. The commissioner 136.13 must provide county boards the opportunity to review each 136.14 proposal based on the identification of community needs under 136.15 chapters 145A and 256E and county advocacy activities. If a 136.16 county board finds that a proposal does not address certain 136.17 community needs, the county board and commissioner shall 136.18 continue efforts for improving the proposal and network prior to 136.19 the approval of the contract. The county board shall make 136.20 recommendations regarding the approval of local networks and 136.21 their operations to ensure adequate availability and access to 136.22 covered services. The provider or health plan must respond 136.23 directly to county advocates and the state prepaid medical 136.24 assistance ombudsperson regarding service delivery and must be 136.25 accountable to the state regarding contracts with medical 136.26 assistance and general assistance medical care funds. The 136.27 county board may recommend a maximum number of participating 136.28 health plans after considering the size of the enrolling 136.29 population; ensuring adequate access and capacity; considering 136.30 the client and county administrative complexity; and considering 136.31 the need to promote the viability of locally developed health 136.32 plans. The county board or a single entity representing a group 136.33 of county boards and the commissioner shall mutually select 136.34 health plans for participation at the time of initial 136.35 implementation of the prepaid medical assistance program in that 136.36 county or group of counties and at the time of contract renewal. 137.1 The commissioner shall also seek input for contract requirements 137.2 from the county or single entity representing a group of county 137.3 boards at each contract renewal and incorporate those 137.4 recommendations into the contract negotiation process. The 137.5 commissioner, in conjunction with the county board, shall 137.6 actively seek to develop a mutually agreeable timetable prior to 137.7 the development of the request for proposal, but counties must 137.8 agree to initial enrollment beginning on or before January 1, 137.9 1999, in either the prepaid medical assistance and general 137.10 assistance medical care programs or county-based purchasing 137.11 under section 256B.692. At least 90 days before enrollment in 137.12 the medical assistance and general assistance medical care 137.13 prepaid programs begins in a county in which the prepaid 137.14 programs have not been established, the commissioner shall 137.15 provide a report to the chairs of senate and house committees 137.16 having jurisdiction over state health care programs which 137.17 verifies that the commissioner complied with the requirements 137.18 for county involvement that are specified in this subdivision. 137.19 (b) The commissioner shall seek a federal waiver to allow a 137.20 fee-for-service plan option to MinnesotaCare enrollees. The 137.21 commissioner shall develop an increase of the premium fees 137.22 required under section 256.9356 up to 20 percent of the premium 137.23 fees for the enrollees who elect the fee-for-service option. 137.24 Prior to implementation, the commissioner shall submit this fee 137.25 schedule to the chair and ranking minority member of the senate 137.26 health care committee, the senate health care and family 137.27 services funding division, the house of representatives health 137.28 and human services committee, and the house of representatives 137.29 health and human services finance division. 137.30 (c) At the option of the county board, the board may 137.31 develop contract requirements related to the achievement of 137.32 local public health goals to meet the health needs of the 137.33 medical assistance and general assistance medical care 137.34 enrollees. If the county board and the commissioner mutually 137.35 agree to such requirements, the department shall include such 137.36 requirements in all health plan contracts governing the prepaid 138.1 medical assistance and general assistance medical care programs 138.2 in that county at initial implementation of the program in that 138.3 county and at the time of contract renewal. The county board 138.4 may participate in the enforcement of the contract provisions 138.5 related to local public health goals. 138.6 (d) For counties in which prepaid medical assistance and 138.7 general assistance medical care programs have not been 138.8 established, the commissioner shall not implement those programs 138.9 if a county board submits acceptable and timely preliminary and 138.10 final proposals under section 256B.692, until county-based 138.11 purchasing is no longer operational in that county. For 138.12 counties in which prepaid medical assistance and general 138.13 assistance medical care programs are in existence on or after 138.14 September 1, 1997, the commissioner must terminate contracts 138.15 with health plans according to section 256B.692, subdivision 5, 138.16 if the county board submits and the commissioner accepts 138.17 preliminary and final proposals according to that subdivision. 138.18 However, in order to ensure quality of care, no individual 138.19 currently enrolled with a prepaid health plan in a state 138.20 prepayment program may be required to change to a county 138.21 purchasing program until: 138.22 (1) the commissioner of health has determined that the 138.23 county purchasing program meets all requirements of section 138.24 256B.692 and is capable of meeting all member health care needs; 138.25 and 138.26 (2) the individual has been given sufficient information to 138.27 make an informed decision through an open enrollment process. 138.28 (e) In the event that a county board or a single entity 138.29 representing a group of county boards and the commissioner 138.30 cannot reach agreement regarding: (i) the selection of 138.31 participating health plans in that county; (ii) contract 138.32 requirements; or (iii) implementation and enforcement of county 138.33 requirements including provisions regarding local public health 138.34 goals, the commissioner shall resolve all disputes after taking 138.35 into account the recommendations of a three-person mediation 138.36 panel. The panel shall be composed of one designee of the 139.1 president of the association of Minnesota counties, one designee 139.2 of the commissioner of human services, and one designee of the 139.3 commissioner of health. 139.4 Sec. 41. Minnesota Statutes 1996, section 256B.69, 139.5 subdivision 5, is amended to read: 139.6 Subd. 5. [PROSPECTIVE PER CAPITA PAYMENT.] The 139.7 commissioner shall establish the method and amount of payments 139.8 for services. The commissioner shall annually contract with 139.9 demonstration providers to provide services consistent with 139.10 these established methods and amounts for payment. 139.11Notwithstanding section 62D.02, subdivision 1, payments for139.12services rendered as part of the project may be made to139.13providers that are not licensed health maintenance organizations139.14on a risk-based, prepaid capitation basis.139.15 If allowed by the commissioner, a demonstration provider 139.16 may contract with an insurer, health care provider, nonprofit 139.17 health service plan corporation, or the commissioner, to provide 139.18 insurance or similar protection against the cost of care 139.19 provided by the demonstration provider or to provide coverage 139.20 against the risks incurred by demonstration providers under this 139.21 section. The recipients enrolled with a demonstration provider 139.22 are a permissible group under group insurance laws and chapter 139.23 62C, the Nonprofit Health Service Plan Corporations Act. Under 139.24 this type of contract, the insurer or corporation may make 139.25 benefit payments to a demonstration provider for services 139.26 rendered or to be rendered to a recipient. Any insurer or 139.27 nonprofit health service plan corporation licensed to do 139.28 business in this state is authorized to provide this insurance 139.29 or similar protection. 139.30 Payments to providers participating in the project are 139.31 exempt from the requirements of sections 256.966 and 256B.03, 139.32 subdivision 2. The commissioner shall complete development of 139.33 capitation rates for payments before delivery of services under 139.34 this section is begun. For payments made during calendar year 139.35 1990 and later years, the commissioner shall contract with an 139.36 independent actuary to establish prepayment rates. 140.1 By January 15, 1996, the commissioner shall report to the 140.2 legislature on the methodology used to allocate to participating 140.3 counties available administrative reimbursement for advocacy and 140.4 enrollment costs. The report shall reflect the commissioner's 140.5 judgment as to the adequacy of the funds made available and of 140.6 the methodology for equitable distribution of the funds. The 140.7 commissioner must involve participating counties in the 140.8 development of the report. 140.9 Sec. 42. Minnesota Statutes 1996, section 256B.69, 140.10 subdivision 5b, is amended to read: 140.11 Subd. 5b. [PROSPECTIVE REIMBURSEMENT RATES.] For prepaid 140.12 medical assistance and general assistance medical care program 140.13 contract rates set by the commissioner under subdivision 5 and 140.14 effective on or after January 1,1997, through December 31,140.15 1998, capitation rates for nonmetropolitan counties shall on a 140.16 weighted average be no less than8587 percent of the capitation 140.17 rates for metropolitan counties, excluding Hennepin county. The 140.18 commissioner shall make a pro rata adjustment in capitation 140.19 rates paid to counties other than nonmetropolitan counties in 140.20 order to make this provision budget neutral. 140.21 Sec. 43. Minnesota Statutes 1996, section 256B.69, 140.22 subdivision 6, is amended to read: 140.23 Subd. 6. [SERVICE DELIVERY.] (a) Each demonstration 140.24 provider shall be responsible for the health care coordination 140.25 for eligible individuals. Demonstration providers: 140.26 (1) shall authorize and arrange for the provision of all 140.27 needed health services including but not limited to the full 140.28 range of services listed in sections 256B.02, subdivision 8, and 140.29 256B.0625, except dental services provided under section 140.30 256B.037, in order to ensure appropriate health care is 140.31 delivered to enrollees; 140.32 (2) shall accept the prospective, per capita payment from 140.33 the commissioner in return for the provision of comprehensive 140.34 and coordinated health care services for eligible individuals 140.35 enrolled in the program; 140.36 (3) may contract with other health care and social service 141.1 practitioners to provide services to enrollees; and 141.2 (4) shall institute recipient grievance procedures 141.3 according to the method established by the project, utilizing 141.4 applicable requirements of chapter 62D. Disputes not resolved 141.5 through this process shall be appealable to the commissioner as 141.6 provided in subdivision 11. 141.7 (b) Demonstration providers must comply with the standards 141.8 for claims settlement under section 72A.201, subdivisions 4, 5, 141.9 7, and 8, when contracting with other health care and social 141.10 service practitioners to provide services to enrollees. A 141.11 demonstration provider must pay a clean claim, as defined in 141.12 Code of Federal Regulations, title 42, section 447.45(b), within 141.13 30 business days of the date of acceptance of the claim. 141.14 Sec. 44. [256B.692] [COUNTY-BASED PURCHASING.] 141.15 Subdivision 1. [IN GENERAL.] County boards or groups of 141.16 county boards may elect to purchase or provide health care 141.17 services on behalf of persons eligible for medical assistance 141.18 and general assistance medical care who would otherwise be 141.19 required to or may elect to participate in the prepaid medical 141.20 assistance or prepaid general assistance medical care programs, 141.21 according to sections 256B.69 and 256D.03. Counties that elect 141.22 to purchase or provide health care under this section must 141.23 provide all services included in prepaid managed care programs 141.24 according to sections 256B.69, subdivisions 1 to 22, and 141.25 256D.03. County-based purchasing under this section is governed 141.26 by section 256B.69, unless otherwise provided for under this 141.27 section. 141.28 Subd. 2. [DUTIES OF THE COMMISSIONER OF HEALTH.] 141.29 Notwithstanding chapters 62D and 62N, a county that elects to 141.30 purchase medical assistance and general assistance medical care 141.31 in return for a fixed sum without regard to the frequency or 141.32 extent of services furnished to any particular enrollee is not 141.33 required to obtain a certificate of authority under chapter 62D 141.34 or 62N. A county that elects to purchase medical assistance and 141.35 general assistance medical care services under this section must 141.36 satisfy the commissioner of health that the requirements of 142.1 chapter 62D, applicable to health maintenance organizations, or 142.2 chapter 62N, applicable to community integrated service 142.3 networks, will be met. A county must also assure the 142.4 commissioner of health that the requirements of section 72A.201 142.5 will be met. All enforcement and rulemaking powers available 142.6 under chapters 62D and 62N are hereby granted to the 142.7 commissioner of health with respect to counties that purchase 142.8 medical assistance and general assistance medical care services 142.9 under this section. 142.10 Subd. 3. [REQUIREMENTS OF THE COUNTY BOARD.] A county 142.11 board that intends to purchase or provide health care under this 142.12 section, which may include purchasing all or part of these 142.13 services from health plans or individual providers on a 142.14 fee-for-service basis, or providing these services directly, 142.15 must demonstrate the ability to follow and agree to the 142.16 following requirements: 142.17 (1) purchase all covered services for a fixed payment from 142.18 the state that does not exceed the estimated state and federal 142.19 cost that would have occurred under the prepaid medical 142.20 assistance and general assistance medical care programs; 142.21 (2) ensure that covered services are accessible to all 142.22 enrollees and that enrollees have a reasonable choice of 142.23 providers, as well as health plans or networks, when possible. 142.24 If the county is also a provider of service, the county board 142.25 shall develop a process to ensure that providers employed by the 142.26 county are not the sole referral source and are not the sole 142.27 provider of health care services, if other providers which meet 142.28 the same quality and cost requirements are available; 142.29 (3) issue payments to participating vendors or networks in 142.30 a timely manner; 142.31 (4) establish a process to ensure and improve the quality 142.32 of care provided; 142.33 (5) provide appropriate quality and other required data in 142.34 a format required by the state; 142.35 (6) provide a system for advocacy, enrollee protection, and 142.36 complaints and appeals that is independent of care providers or 143.1 other risk bearers and complies with section 256B.69; 143.2 (7) for counties within the seven-county metropolitan area, 143.3 ensure that the implementation and operation of the Minnesota 143.4 senior health options demonstration project, authorized under 143.5 section 256B.69, subdivision 23, will not be impeded; 143.6 (8) ensure that all recipients that are enrolled in the 143.7 prepaid medical assistance or general assistance medical care 143.8 program will be transferred to county-based purchasing without 143.9 utilizing the department's fee-for-service claims payment 143.10 system; and 143.11 (9) ensure that the state and the medical assistance and 143.12 general assistance medical care recipients shall be held 143.13 harmless for the payment of obligations incurred by the county 143.14 if the county, or a health plan providing services on behalf of 143.15 the county, or a provider participating in county purchasing, 143.16 becomes insolvent and the state has made the payments due to the 143.17 county under this section. 143.18 Subd. 4. [PAYMENTS TO COUNTIES.] The commissioner shall 143.19 pay counties that are purchasing or providing health care under 143.20 this section a per capita payment for all enrolled recipients. 143.21 Payments shall not exceed payments that otherwise would have 143.22 been paid to health plans under medical assistance and general 143.23 assistance medical care for that county or region. This payment 143.24 is in addition to any administrative allocation to counties for 143.25 education, enrollment, and advocacy. The state of Minnesota and 143.26 the United States Department of Health and Human Services are 143.27 not liable for any costs incurred by a county that exceed the 143.28 payments to the county made under this subdivision. A county 143.29 whose costs exceed the payments made by the state, or any 143.30 affected enrollees or creditors of that county, shall have no 143.31 rights under chapter 61B or section 62D.181. A county may 143.32 assign risk for the cost of care to a third party. 143.33 Subd. 5. [COUNTY PROPOSALS.] (a) On or before September 1, 143.34 1997, a county board that wishes to purchase or provide health 143.35 care under this section must submit a preliminary proposal that 143.36 substantially demonstrates the county's ability to meet all the 144.1 requirements of this section in response to criteria for 144.2 proposals issued by the department on or before July 1, 1997. 144.3 The county board must submit a final proposal on or before July 144.4 1, 1998, that demonstrates the ability to meet all the 144.5 requirements of this section, including beginning enrollment on 144.6 January 1, 1999. 144.7 Counties submitting preliminary proposals must establish a 144.8 local planning process that involves input from medical 144.9 assistance and general assistance medical care recipients, 144.10 recipient advocates, providers, and representatives of local 144.11 school districts, labor, and tribal government, to advise on the 144.12 development of a final proposal and its implementation. 144.13 (b) After January 1, 1999, for a county in which the 144.14 prepaid medical assistance program is in existence, the county 144.15 board must submit a preliminary proposal at least 15 months 144.16 prior to termination of health plan contracts in that county and 144.17 a final proposal six months prior to the health plan contract 144.18 termination date in order to begin enrollment after the 144.19 termination. Nothing in this section shall impede or delay 144.20 implementation or continuation of the prepaid medical assistance 144.21 and general assistance medical care programs in counties for 144.22 which the board does not submit a proposal, or submits a 144.23 proposal that is not in compliance with this section. 144.24 Subd. 6. [COMMISSIONER'S AUTHORITY.] The commissioner may: 144.25 (a) reject any preliminary or final proposal that 144.26 substantially fails to meet the requirements of this section, or 144.27 that the commissioner determines would substantially impair the 144.28 state's ability to purchase health care services in other areas 144.29 of the state, or would substantially impair the implementation 144.30 and operation of the Minnesota senior health options 144.31 demonstration project authorized under section 256B.69, 144.32 subdivision 23; and 144.33 (b) assume operation of a county's purchasing of health 144.34 care for enrollees in medical assistance and general assistance 144.35 medical care in the event that the contract with the county is 144.36 terminated. 145.1 Subd. 7. [DISPUTE RESOLUTION.] In the event the 145.2 commissioner rejects a proposal under subdivision 6, the county 145.3 board may request the recommendation of a three-person mediation 145.4 panel. The commissioner shall resolve all disputes after taking 145.5 into account the recommendations of the mediation panel. The 145.6 panel shall be composed of one designee of the president of the 145.7 association of Minnesota counties, one designee of the 145.8 commissioner of human services, and one designee of the 145.9 commissioner of health. 145.10 Subd. 8. [APPEALS.] A county that conducts county-based 145.11 purchasing shall be considered to be a prepaid health plan for 145.12 purposes of section 256.045. 145.13 Subd. 9. [FEDERAL APPROVAL.] The commissioner shall 145.14 request any federal waivers and federal approval required to 145.15 implement this section. County-based purchasing shall not be 145.16 implemented without obtaining all federal approval required to 145.17 maintain federal matching funds in the medical assistance 145.18 program. 145.19 Subd. 10. [REPORT TO THE LEGISLATURE.] The commissioner 145.20 shall submit a report to the legislature by February 1, 1998, on 145.21 the preliminary proposals submitted on or before September 1, 145.22 1997. 145.23 Sec. 45. Minnesota Statutes 1996, section 256D.03, 145.24 subdivision 3, is amended to read: 145.25 Subd. 3. [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 145.26 (a) General assistance medical care may be paid for any person 145.27 who is not eligible for medical assistance under chapter 256B, 145.28 including eligibility for medical assistance based on a 145.29 spenddown of excess income according to section 256B.056, 145.30 subdivision 5, and: 145.31 (1) who is receiving assistance under section 256D.05, or 145.32 who is having a payment made on the person's behalf under 145.33 sections 256I.01 to 256I.06; or 145.34 (2)(i) who is a resident of Minnesota; and whose equity in 145.35 assets is not in excess of $1,000 per assistance unit.No asset145.36test shall be applied to children and their parents living in146.1the same household.Exempt assets, the reduction of excess 146.2 assets, and the waiver of excess assets must conform to the 146.3 medical assistance program in chapter 256B, with the following 146.4 exception: the maximum amount of undistributed funds in a trust 146.5 that could be distributed to or on behalf of the beneficiary by 146.6 the trustee, assuming the full exercise of the trustee's 146.7 discretion under the terms of the trust, must be applied toward 146.8 the asset maximum; and 146.9 (ii) who has countable income not in excess of the 146.10 assistance standards established in section 256B.056, 146.11 subdivision 4, or whose excess income is spent down pursuant to 146.12 section 256B.056, subdivision 5, using a six-month budget 146.13 period, except that a one-month budget period must be used for146.14recipients residing in a long-term care facility. The method 146.15 for calculating earned income disregards and deductions for a 146.16 person who resides with a dependent child under age 21 shallbe146.17as specified in section 256.74, subdivision 1follow section 146.18 256B.056, subdivision 1a. However, if a disregard of $30 and 146.19 one-third of the remainderdescribed in section 256.74,146.20subdivision 1, clause (4),has been applied to the wage earner's 146.21 income, the disregard shall not be applied again until the wage 146.22 earner's income has not been considered in an eligibility 146.23 determination for general assistance, general assistance medical 146.24 care, medical assistance, oraid to families with dependent146.25childrenMFIP-S for 12 consecutive months. The earned income 146.26 and work expense deductions for a person who does not reside 146.27 with a dependent child under age 21 shall be the same as the 146.28 method used to determine eligibility for a person under section 146.29 256D.06, subdivision 1, except the disregard of the first $50 of 146.30 earned income is not allowed; or 146.31 (3) who would be eligible for medical assistance except 146.32 that the person resides in a facility that is determined by the 146.33 commissioner or the federal health care financing administration 146.34 to be an institution for mental diseases. 146.35 (b) Eligibility is available for the month of application, 146.36 and for three months prior to application if the person was 147.1 eligible in those prior months. A redetermination of 147.2 eligibility must occur every 12 months. 147.3 (c) General assistance medical care is not available for a 147.4 person in a correctional facility unless the person is detained 147.5 by law for less than one year in a county correctional or 147.6 detention facility as a person accused or convicted of a crime, 147.7 or admitted as an inpatient to a hospital on a criminal hold 147.8 order, and the person is a recipient of general assistance 147.9 medical care at the time the person is detained by law or 147.10 admitted on a criminal hold order and as long as the person 147.11 continues to meet other eligibility requirements of this 147.12 subdivision. 147.13 (d) General assistance medical care is not available for 147.14 applicants or recipients who do not cooperate with the county 147.15 agency to meet the requirements of medical assistance. 147.16 (e) In determining the amount of assets of an individual, 147.17 there shall be included any asset or interest in an asset, 147.18 including an asset excluded under paragraph (a), that was given 147.19 away, sold, or disposed of for less than fair market value 147.20 within the 60 months preceding application for general 147.21 assistance medical care or during the period of eligibility. 147.22 Any transfer described in this paragraph shall be presumed to 147.23 have been for the purpose of establishing eligibility for 147.24 general assistance medical care, unless the individual furnishes 147.25 convincing evidence to establish that the transaction was 147.26 exclusively for another purpose. For purposes of this 147.27 paragraph, the value of the asset or interest shall be the fair 147.28 market value at the time it was given away, sold, or disposed 147.29 of, less the amount of compensation received. For any 147.30 uncompensated transfer, the number of months of ineligibility, 147.31 including partial months, shall be calculated by dividing the 147.32 uncompensated transfer amount by the average monthly per person 147.33 payment made by the medical assistance program to skilled 147.34 nursing facilities for the previous calendar year. The 147.35 individual shall remain ineligible until this fixed period has 147.36 expired. The period of ineligibility may exceed 30 months, and 148.1 a reapplication for benefits after 30 months from the date of 148.2 the transfer shall not result in eligibility unless and until 148.3 the period of ineligibility has expired. The period of 148.4 ineligibility begins in the month the transfer was reported to 148.5 the county agency, or if the transfer was not reported, the 148.6 month in which the county agency discovered the transfer, 148.7 whichever comes first. For applicants, the period of 148.8 ineligibility begins on the date of the first approved 148.9 application. 148.10 (f)(1) Beginning October 1, 1993, an undocumented alien or 148.11 a nonimmigrant is ineligible for general assistance medical care 148.12 other than emergency services. For purposes of this 148.13 subdivision, a nonimmigrant is an individual in one or more of 148.14 the classes listed in United States Code, title 8, section 148.15 1101(a)(15), and an undocumented alien is an individual who 148.16 resides in the United States without the approval or 148.17 acquiescence of the Immigration and Naturalization Service. 148.18 (2) This subdivision does not apply to a child under age 148.19 18, to a Cuban or Haitian entrant as defined in Public Law 148.20 Number 96-422, section 501(e)(1) or (2)(a), or to an alien who 148.21 is aged, blind, or disabled as defined in United States Code, 148.22 title 42, section 1382c(a)(1). 148.23 (3) For purposes of paragraph (f), "emergency services" has 148.24 the meaning given in Code of Federal Regulations, title 42, 148.25 section 440.255(b)(1), except that it also means services 148.26 rendered because of suspected or actual pesticide poisoning. 148.27 Sec. 46. Minnesota Statutes 1996, section 256G.02, 148.28 subdivision 6, is amended to read: 148.29 Subd. 6. [EXCLUDED TIME.] "Excluded time" means: 148.30 (a) any period an applicant spends in a hospital, 148.31 sanitarium, nursing home, shelter other than an emergency 148.32 shelter, halfway house, foster home, semi-independent living 148.33 domicile or services program, residential facility offering 148.34 care, board and lodging facility or other institution for the 148.35 hospitalization or care of human beings, as defined in section 148.36 144.50, 144A.01, or 245A.02, subdivision 14; maternity home, 149.1 battered women's shelter, or correctional facility; or any 149.2 facility based on an emergency hold under sections 253B.05, 149.3 subdivisions 1 and 2, and 253B.07, subdivision 6; 149.4 (b) any period an applicant spends on a placement basis in 149.5 a training and habilitation program, including a rehabilitation 149.6 facility or work or employment program as defined in section 149.7 268A.01; or receiving personal care assistant services pursuant 149.8 to section 256B.0627, subdivision 4; semi-independent living 149.9 services provided under section 252.275, and Minnesota Rules, 149.10 parts 9525.0500 to 9525.0660; day training and habilitation 149.11 programs, and community-based servicesand assisted living 149.12 services; and 149.13 (c) any placement for a person with an indeterminate 149.14 commitment, including independent living. 149.15 Sec. 47. Minnesota Statutes 1996, section 256I.05, 149.16 subdivision 1a, is amended to read: 149.17 Subd. 1a. [SUPPLEMENTARY RATES.] In addition to the room 149.18 and board rate specified in subdivision 1, the county agency may 149.19 negotiate a payment not to exceed $426.37 for other services 149.20 necessary to provide room and board provided by the group 149.21 residence if the residence is licensed by or registered by the 149.22 department of health, or licensed by the department of human 149.23 services to provide services in addition to room and board, and 149.24 if the provider of services is not also concurrently receiving 149.25 funding for services for a recipient under a home and 149.26 community-based waiver under title XIX of the Social Security 149.27 Act; or funding from the medical assistance program under 149.28 section 256B.0627, subdivision 4, for personal care services for 149.29 residents in the setting; or residing in a setting which 149.30 receives funding under Minnesota Rules, parts 9535.2000 to 149.31 9535.3000. If funding is available for other necessary services 149.32 through a home and community-based waiver, or personal care 149.33 services under section 256B.0627, subdivision 4, then the GRH 149.34 rate is limited to the rate set in subdivision 1. The 149.35 registration and licensure requirement does not apply to 149.36 establishments which are exempt from state licensure because 150.1 they are located on Indian reservations and for which the tribe 150.2 has prescribed health and safety requirements. Service payments 150.3 under this section may be prohibited under rules to prevent the 150.4 supplanting of federal funds with state funds. The commissioner 150.5 shall pursue the feasibility of obtaining the approval of the 150.6 Secretary of Health and Human Services to provide home and 150.7 community-based waiver services under title XIX of the Social 150.8 Security Act for residents who are not eligible for an existing 150.9 home and community-based waiver due to a primary diagnosis of 150.10 mental illness or chemical dependency and shall apply for a 150.11 waiver if it is determined to be cost-effective. The 150.12 commissioner is authorized to make cost-neutral transfers from 150.13 the GRH fund for beds under this section to other funding 150.14 programs administered by the department after consultation with 150.15 the county or counties in which the affected beds are located. 150.16 The commissioner may also make cost neutral transfers from the 150.17 GRH fund to county human service agencies for beds permanently 150.18 removed from the GRH census under a plan submitted by the county 150.19 agency and approved by the commissioner. The commissioner shall 150.20 report the amount of any transfers under this provision annually 150.21 to the legislature. 150.22 Sec. 48. Minnesota Statutes 1996, section 469.155, 150.23 subdivision 4, is amended to read: 150.24 Subd. 4. [REFINANCING HEALTH FACILITIES.] It may issue 150.25 revenue bonds to pay, purchase, or discharge all or any part of 150.26 the outstanding indebtedness of a contracting party engaged 150.27 primarily in the operation of one or more nonprofit hospitals or 150.28 nursing homes previously incurred in the acquisition or 150.29 betterment of its existing hospital or nursing home facilities 150.30 to the extent deemed necessary by the governing body of the 150.31 municipality or redevelopment agency; this may include any 150.32 unpaid interest on the indebtedness accrued or to accrue to the 150.33 date on which the indebtedness is finally paid, and any premium 150.34 the governing body of the municipality or redevelopment agency 150.35 determines to be necessary to be paid to pay, purchase, or 150.36 defease the outstanding indebtedness. If revenue bonds are 151.1 issued for this purpose, the refinancing and the existing 151.2 properties of the contracting party shall be deemed to 151.3 constitute a project under section 469.153, subdivision 2, 151.4 clause (d).Revenue bonds may not be issued pursuant to this151.5subdivision unless the application for approval of the project151.6pursuant to section 469.154 shows that a reduction in debt151.7service charges is estimated to result and will be reflected in151.8charges to patients and third-party payors. Proceeds of revenue151.9bonds issued pursuant to this subdivision may not be used for151.10any purpose inconsistent with the provisions of chapter 256B.151.11Nothing in this subdivision prohibits the use of revenue bond151.12proceeds to pay outstanding indebtedness of a contracting party151.13to the extent permitted by law on March 28, 1978.151.14 Sec. 49. [WAIVER MODIFICATION.] 151.15 The commissioner of human services shall seek federal 151.16 approval for any modifications to the health care reform waiver 151.17 necessary to implement the asset standard changes in sections 20 151.18 to 22 and 27. 151.19 Sec. 50. [LIVING-AT-HOME/BLOCK NURSE CONTRACT.] 151.20 The commissioner shall contract with the organization 151.21 awarded the initial contract under Minnesota Statutes, section 151.22 256B.0917, subdivision 7, to carry out the duties assigned in 151.23 that subdivision. The contract shall be effective July 1, 1997, 151.24 and Minnesota Statutes, section 16B.17, shall not apply. 151.25 Subject to the availability of funding, the contract does not 151.26 expire, except that the contract must provide that the 151.27 commissioner may unilaterally terminate the contract if the 151.28 commissioner determines that the organization awarded the 151.29 contract has not effectively carried out the duties assigned in 151.30 Minnesota Statutes, section 256B.0917, subdivision 7. 151.31 Sec. 51. [NEED FOR NONSTANDARD WHEELCHAIRS.] 151.32 The commissioner of human services, in consultation with 151.33 the System of Technology to Achieve Results (STAR) program, 151.34 shall present a report to the legislature by January 1, 1998, on 151.35 the need for nonstandard wheelchairs for recipients residing in 151.36 long-term care facilities. A standard wheelchair is a manual 152.1 wheelchair that is 16 to 20 inches wide and 18 inches deep with 152.2 sling seat and back upholstery and a seat height of 19-1/2 152.3 inches. The report shall: 152.4 (1) determine how many medical assistance recipients who 152.5 reside in long-term care facilities cannot independently operate 152.6 a standard wheelchair, but can safely and independently operate 152.7 a power or other nonstandard wheelchair; 152.8 (2) determine how many medical assistance recipients who 152.9 reside in long-term care facilities require a wheelchair to be 152.10 permanently modified by the addition of an item to accommodate 152.11 their health needs; 152.12 (3) determine how many medical assistance recipients who 152.13 reside in long-term care facilities have seating or positioning 152.14 needs which cannot be accommodated in a standard wheelchair; 152.15 (4) determine the average cost of a nonstandard wheelchair; 152.16 (5) determine the capability of long-term care facilities 152.17 to provide nonstandard wheelchairs to meet medical assistance 152.18 recipients needs; and 152.19 (6) determine to what extent in the past four years the 152.20 department of health has enforced regulations or rules relating 152.21 to a long-term care facility's obligation to meet the mobility 152.22 needs of residents. 152.23 Sec. 52. [REPEALER.] 152.24 Minnesota Statutes 1996, section 256B.0625, subdivision 152.25 13b, is repealed the day following final enactment. 152.26 Sec. 53. [EFFECTIVE DATE.] 152.27 Sections 11 to 14 and 33 are effective the day following 152.28 final enactment. 152.29 ARTICLE 5 152.30 CHILDREN'S PROGRAMS 152.31 Section 1. Minnesota Statutes 1996, section 245.4882, 152.32 subdivision 5, is amended to read: 152.33 Subd. 5. [SPECIALIZED RESIDENTIAL TREATMENT SERVICES.] The 152.34 commissioner of human services shall continue efforts to further 152.35 interagency collaboration to develop a comprehensive system of 152.36 services, including family community support and specialized 153.1 residential treatment services for children. The services shall 153.2 be designed for children with emotional disturbance who exhibit 153.3 violent or destructive behavior and for whom local treatment 153.4 services are not feasible due to the small number of children 153.5 statewide who need the services and the specialized nature of 153.6 the services required. The services shall be located in 153.7 community settings.If no appropriate services are available in153.8Minnesota or within the geographical area in which the residents153.9of the county normally do business, the commissioner is153.10responsible, effective July 1, 1997, for 50 percent of the153.11nonfederal costs of out-of-state treatment of children for whom153.12no appropriate resources are available in Minnesota. Counties153.13are eligible to receive enhanced state funding under this153.14section only if they have established juvenile screening teams153.15under section 260.151, subdivision 3, and if the out-of-state153.16treatment has been approved by the commissioner. By January 1,153.171995, the commissioners of human services and corrections shall153.18jointly develop a plan, including a financing strategy, for153.19increasing the in-state availability of treatment within a153.20secure setting. By July 1, 1994, the commissioner of human153.21services shall also:153.22(1) conduct a study and develop a plan to meet the needs of153.23children with both a developmental disability and severe153.24emotional disturbance; and153.25(2) study the feasibility of expanding medical assistance153.26coverage to include specialized residential treatment for the153.27children described in this subdivision.153.28 Sec. 2. Minnesota Statutes 1996, section 245.493, 153.29 subdivision 1, is amended to read: 153.30 Subdivision 1. [REQUIREMENTS TO QUALIFY AS A LOCAL 153.31 CHILDREN'S MENTAL HEALTH COLLABORATIVE.] In order to qualify as 153.32 a local children's mental health collaborative and be eligible 153.33 to receive start-up funds, the representatives of the local 153.34 system of care, including entities provided under section 153.35 245.4875, subdivision 6, and nongovernmental entities such as 153.36 parents of children in the target population; parent and 154.1 consumer organizations; community, civic, and religious 154.2 organizations; private and nonprofit mental and physical health 154.3 care providers; culturally specific organizations; local 154.4 foundations; and businesses, or at a minimum one county, one 154.5 school district or special education cooperative,andone mental 154.6 health entity, and, by July 1, 1998, one juvenile justice or 154.7 corrections entity, must agree to the following: 154.8 (1) to establish a local children's mental health 154.9 collaborative and develop an integrated service system; and 154.10 (2) to commit resources to providing services through the 154.11 local children's mental health collaborative. 154.12 Sec. 3. Minnesota Statutes 1996, section 245.493, is 154.13 amended by adding a subdivision to read: 154.14 Subd. 1a. [DUTIES OF CERTAIN COORDINATING BODIES.] By 154.15 mutual agreement of the collaborative and a coordinating body 154.16 listed in this subdivision, a children's mental health 154.17 collaborative or a collaborative established by the merger of a 154.18 children's mental health collaborative and a family services 154.19 collaborative under section 121.8355, may assume the duties of a 154.20 community transition interagency committee established under 154.21 section 120.17, subdivision 16; an interagency early 154.22 intervention committee established under 120.1701, subdivision 154.23 5; a local advisory council established under section 245.4875, 154.24 subdivision 5; or a local coordinating council established under 154.25 section 245.4875, subdivision 6. 154.26 Sec. 4. Minnesota Statutes 1996, section 256.01, 154.27 subdivision 2, is amended to read: 154.28 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 154.29 section 241.021, subdivision 2, the commissioner of human 154.30 services shall: 154.31 (1) Administer and supervise all forms of public assistance 154.32 provided for by state law and other welfare activities or 154.33 services as are vested in the commissioner. Administration and 154.34 supervision of human services activities or services includes, 154.35 but is not limited to, assuring timely and accurate distribution 154.36 of benefits, completeness of service, and quality program 155.1 management. In addition to administering and supervising human 155.2 services activities vested by law in the department, the 155.3 commissioner shall have the authority to: 155.4 (a) require county agency participation in training and 155.5 technical assistance programs to promote compliance with 155.6 statutes, rules, federal laws, regulations, and policies 155.7 governing human services; 155.8 (b) monitor, on an ongoing basis, the performance of county 155.9 agencies in the operation and administration of human services, 155.10 enforce compliance with statutes, rules, federal laws, 155.11 regulations, and policies governing welfare services and promote 155.12 excellence of administration and program operation; 155.13 (c) develop a quality control program or other monitoring 155.14 program to review county performance and accuracy of benefit 155.15 determinations; 155.16 (d) require county agencies to make an adjustment to the 155.17 public assistance benefits issued to any individual consistent 155.18 with federal law and regulation and state law and rule and to 155.19 issue or recover benefits as appropriate; 155.20 (e) delay or deny payment of all or part of the state and 155.21 federal share of benefits and administrative reimbursement 155.22 according to the procedures set forth in section 256.017; and 155.23 (f) make contracts with and grants to public and private 155.24 agencies and organizations, both profit and nonprofit, and 155.25 individuals, using appropriated funds. 155.26 (2) Inform county agencies, on a timely basis, of changes 155.27 in statute, rule, federal law, regulation, and policy necessary 155.28 to county agency administration of the programs. 155.29 (3) Administer and supervise all child welfare activities; 155.30 promote the enforcement of laws protecting handicapped, 155.31 dependent, neglected and delinquent children, and children born 155.32 to mothers who were not married to the children's fathers at the 155.33 times of the conception nor at the births of the children; 155.34 license and supervise child-caring and child-placing agencies 155.35 and institutions; supervise the care of children in boarding and 155.36 foster homes or in private institutions; and generally perform 156.1 all functions relating to the field of child welfare now vested 156.2 in the state board of control. 156.3 (4) Administer and supervise all noninstitutional service 156.4 to handicapped persons, including those who are visually 156.5 impaired, hearing impaired, or physically impaired or otherwise 156.6 handicapped. The commissioner may provide and contract for the 156.7 care and treatment of qualified indigent children in facilities 156.8 other than those located and available at state hospitals when 156.9 it is not feasible to provide the service in state hospitals. 156.10 (5) Assist and actively cooperate with other departments, 156.11 agencies and institutions, local, state, and federal, by 156.12 performing services in conformity with the purposes of Laws 156.13 1939, chapter 431. 156.14 (6) Act as the agent of and cooperate with the federal 156.15 government in matters of mutual concern relative to and in 156.16 conformity with the provisions of Laws 1939, chapter 431, 156.17 including the administration of any federal funds granted to the 156.18 state to aid in the performance of any functions of the 156.19 commissioner as specified in Laws 1939, chapter 431, and 156.20 including the promulgation of rules making uniformly available 156.21 medical care benefits to all recipients of public assistance, at 156.22 such times as the federal government increases its participation 156.23 in assistance expenditures for medical care to recipients of 156.24 public assistance, the cost thereof to be borne in the same 156.25 proportion as are grants of aid to said recipients. 156.26 (7) Establish and maintain any administrative units 156.27 reasonably necessary for the performance of administrative 156.28 functions common to all divisions of the department. 156.29 (8) Act as designated guardian of both the estate and the 156.30 person of all the wards of the state of Minnesota, whether by 156.31 operation of law or by an order of court, without any further 156.32 act or proceeding whatever, except as to persons committed as 156.33 mentally retarded. For children under the guardianship of the 156.34 commissioner whose interests would be best served by adoptive 156.35 placement, the commissioner may contract with a licensed 156.36 child-placing agency to provide adoption services. A contract 157.1 with a licensed child-placing agency must be designed to 157.2 supplement existing county efforts, and shall not replace 157.3 existing county programs, unless the replacement is agreed to by 157.4 the county board and the appropriate exclusive bargaining 157.5 representative, or the commissioner has evidence that the 157.6 county's rate of placing these children continues to be 157.7 substantially below that of other counties. 157.8 (9) Act as coordinating referral and informational center 157.9 on requests for service for newly arrived immigrants coming to 157.10 Minnesota. 157.11 (10) The specific enumeration of powers and duties as 157.12 hereinabove set forth shall in no way be construed to be a 157.13 limitation upon the general transfer of powers herein contained. 157.14 (11) Establish county, regional, or statewide schedules of 157.15 maximum fees and charges which may be paid by county agencies 157.16 for medical, dental, surgical, hospital, nursing and nursing 157.17 home care and medicine and medical supplies under all programs 157.18 of medical care provided by the state and for congregate living 157.19 care under the income maintenance programs. 157.20 (12) Have the authority to conduct and administer 157.21 experimental projects to test methods and procedures of 157.22 administering assistance and services to recipients or potential 157.23 recipients of public welfare. To carry out such experimental 157.24 projects, it is further provided that the commissioner of human 157.25 services is authorized to waive the enforcement of existing 157.26 specific statutory program requirements, rules, and standards in 157.27 one or more counties. The order establishing the waiver shall 157.28 provide alternative methods and procedures of administration, 157.29 shall not be in conflict with the basic purposes, coverage, or 157.30 benefits provided by law, and in no event shall the duration of 157.31 a project exceed four years. It is further provided that no 157.32 order establishing an experimental project as authorized by the 157.33 provisions of this section shall become effective until the 157.34 following conditions have been met: 157.35 (a) The proposed comprehensive plan, including estimated 157.36 project costs and the proposed order establishing the waiver, 158.1 shall be filed with the secretary of the senate and chief clerk 158.2 of the house of representatives at least 60 days prior to its 158.3 effective date. 158.4 (b) The secretary of health, education, and welfare of the 158.5 United States has agreed, for the same project, to waive state 158.6 plan requirements relative to statewide uniformity. 158.7 (c) A comprehensive plan, including estimated project 158.8 costs, shall be approved by the legislative advisory commission 158.9 and filed with the commissioner of administration. 158.10 (13) In accordance with federal requirements, establish 158.11 procedures to be followed by local welfare boards in creating 158.12 citizen advisory committees, including procedures for selection 158.13 of committee members. 158.14 (14) Allocate federal fiscal disallowances or sanctions 158.15 which are based on quality control error rates for the aid to 158.16 families with dependent children, medical assistance, or food 158.17 stamp program in the following manner: 158.18 (a) One-half of the total amount of the disallowance shall 158.19 be borne by the county boards responsible for administering the 158.20 programs. For the medical assistance and AFDC programs, 158.21 disallowances shall be shared by each county board in the same 158.22 proportion as that county's expenditures for the sanctioned 158.23 program are to the total of all counties' expenditures for the 158.24 AFDC and medical assistance programs. For the food stamp 158.25 program, sanctions shall be shared by each county board, with 50 158.26 percent of the sanction being distributed to each county in the 158.27 same proportion as that county's administrative costs for food 158.28 stamps are to the total of all food stamp administrative costs 158.29 for all counties, and 50 percent of the sanctions being 158.30 distributed to each county in the same proportion as that 158.31 county's value of food stamp benefits issued are to the total of 158.32 all benefits issued for all counties. Each county shall pay its 158.33 share of the disallowance to the state of Minnesota. When a 158.34 county fails to pay the amount due hereunder, the commissioner 158.35 may deduct the amount from reimbursement otherwise due the 158.36 county, or the attorney general, upon the request of the 159.1 commissioner, may institute civil action to recover the amount 159.2 due. 159.3 (b) Notwithstanding the provisions of paragraph (a), if the 159.4 disallowance results from knowing noncompliance by one or more 159.5 counties with a specific program instruction, and that knowing 159.6 noncompliance is a matter of official county board record, the 159.7 commissioner may require payment or recover from the county or 159.8 counties, in the manner prescribed in paragraph (a), an amount 159.9 equal to the portion of the total disallowance which resulted 159.10 from the noncompliance, and may distribute the balance of the 159.11 disallowance according to paragraph (a). 159.12 (15) Develop and implement special projects that maximize 159.13 reimbursements and result in the recovery of money to the 159.14 state. For the purpose of recovering state money, the 159.15 commissioner may enter into contracts with third parties. Any 159.16 recoveries that result from projects or contracts entered into 159.17 under this paragraph shall be deposited in the state treasury 159.18 and credited to a special account until the balance in the 159.19 account reaches $1,000,000. When the balance in the account 159.20 exceeds $1,000,000, the excess shall be transferred and credited 159.21 to the general fund. All money in the account is appropriated 159.22 to the commissioner for the purposes of this paragraph. 159.23 (16) Have the authority to make direct payments to 159.24 facilities providing shelter to women and their children 159.25 pursuant to section 256D.05, subdivision 3. Upon the written 159.26 request of a shelter facility that has been denied payments 159.27 under section 256D.05, subdivision 3, the commissioner shall 159.28 review all relevant evidence and make a determination within 30 159.29 days of the request for review regarding issuance of direct 159.30 payments to the shelter facility. Failure to act within 30 days 159.31 shall be considered a determination not to issue direct payments. 159.32 (17) Have the authority to establish and enforce the 159.33 following county reporting requirements: 159.34 (a) The commissioner shall establish fiscal and statistical 159.35 reporting requirements necessary to account for the expenditure 159.36 of funds allocated to counties for human services programs. 160.1 When establishing financial and statistical reporting 160.2 requirements, the commissioner shall evaluate all reports, in 160.3 consultation with the counties, to determine if the reports can 160.4 be simplified or the number of reports can be reduced. 160.5 (b) The county board shall submit monthly or quarterly 160.6 reports to the department as required by the commissioner. 160.7 Monthly reports are due no later than 15 working days after the 160.8 end of the month. Quarterly reports are due no later than 30 160.9 calendar days after the end of the quarter, unless the 160.10 commissioner determines that the deadline must be shortened to 160.11 20 calendar days to avoid jeopardizing compliance with federal 160.12 deadlines or risking a loss of federal funding. Only reports 160.13 that are complete, legible, and in the required format shall be 160.14 accepted by the commissioner. 160.15 (c) If the required reports are not received by the 160.16 deadlines established in clause (b), the commissioner may delay 160.17 payments and withhold funds from the county board until the next 160.18 reporting period. When the report is needed to account for the 160.19 use of federal funds and the late report results in a reduction 160.20 in federal funding, the commissioner shall withhold from the 160.21 county boards with late reports an amount equal to the reduction 160.22 in federal funding until full federal funding is received. 160.23 (d) A county board that submits reports that are late, 160.24 illegible, incomplete, or not in the required format for two out 160.25 of three consecutive reporting periods is considered 160.26 noncompliant. When a county board is found to be noncompliant, 160.27 the commissioner shall notify the county board of the reason the 160.28 county board is considered noncompliant and request that the 160.29 county board develop a corrective action plan stating how the 160.30 county board plans to correct the problem. The corrective 160.31 action plan must be submitted to the commissioner within 45 days 160.32 after the date the county board received notice of noncompliance. 160.33 (e) The final deadline for fiscal reports or amendments to 160.34 fiscal reports is one year after the date the report was 160.35 originally due. If the commissioner does not receive a report 160.36 by the final deadline, the county board forfeits the funding 161.1 associated with the report for that reporting period and the 161.2 county board must repay any funds associated with the report 161.3 received for that reporting period. 161.4 (f) The commissioner may not delay payments, withhold 161.5 funds, or require repayment under paragraph (c) or (e) if the 161.6 county demonstrates that the commissioner failed to provide 161.7 appropriate forms, guidelines, and technical assistance to 161.8 enable the county to comply with the requirements. If the 161.9 county board disagrees with an action taken by the commissioner 161.10 under paragraph (c) or (e), the county board may appeal the 161.11 action according to sections 14.57 to 14.69. 161.12 (g) Counties subject to withholding of funds under 161.13 paragraph (c) or forfeiture or repayment of funds under 161.14 paragraph (e) shall not reduce or withhold benefits or services 161.15 to clients to cover costs incurred due to actions taken by the 161.16 commissioner under paragraph (c) or (e). 161.17 (18) Allocate federal fiscal disallowances or sanctions for 161.18 audit exceptions when federal fiscal disallowances or sanctions 161.19 are based on a statewide random sample for the foster care 161.20 program under title IV-E of the Social Security Act, United 161.21 States Code, title 42, in direct proportion to each county's 161.22 title IV-E foster care maintenance claim for that period. 161.23 Sec. 5. Minnesota Statutes 1996, section 256.01, is 161.24 amended by adding a subdivision to read: 161.25 Subd. 14. [CHILD WELFARE REFORM PILOTS.] The commissioner 161.26 of human services shall encourage local reforms in the delivery 161.27 of child welfare services and is authorized to approve local 161.28 pilot programs which focus on reforming the child protection and 161.29 child welfare systems in Minnesota. Authority to approve pilots 161.30 includes authority to waive existing state rule and statutory 161.31 requirements as needed to accomplish reform efforts. Pilot 161.32 programs must be required to address responsibility for safety 161.33 and protection of children, be time limited, and include 161.34 evaluation of the pilot program. 161.35 Sec. 6. Minnesota Statutes 1996, section 256.045, 161.36 subdivision 3, is amended to read: 162.1 Subd. 3. [STATE AGENCY HEARINGS.] (a) State agency 162.2 hearings are available for the following: (1) any person 162.3 applying for, receiving or having received public assistance or 162.4 a program of social services granted by the state agency or a 162.5 county agency under sections 252.32, 256.031 to 256.036, and 162.6 256.72 to 256.879, chapters 256B, 256D, 256E, 261, or the 162.7 federal Food Stamp Act whose application for assistance is 162.8 denied, not acted upon with reasonable promptness, or whose 162.9 assistance is suspended, reduced, terminated, or claimed to have 162.10 been incorrectly paid; (2) any patient or relative aggrieved by 162.11 an order of the commissioner under section 252.27; (3) a party 162.12 aggrieved by a ruling of a prepaid health plan; (4) any 162.13 individual or facility determined by a lead agency to have 162.14 maltreated a vulnerable adult under section 626.557 after they 162.15 have exercised their right to administrative reconsideration 162.16 under section 626.557; (5) any person whose claim for foster 162.17 care payment pursuant to a placement of the child resulting from 162.18 a child protection assessment under section 626.556 is denied or 162.19 not acted upon with reasonable promptness, regardless of funding 162.20 source; (6) any person to whom a right of appeal pursuant to 162.21 this section is given by other provision of law;or(7) an 162.22 applicant aggrieved by an adverse decision to an application for 162.23 a hardship waiver under section 256B.15; or (8) an individual or 162.24 facility determined to have maltreated a minor under section 162.25 626.556, after the individual or facility has exercised the 162.26 right to administrative reconsideration under section 626.556. 162.27 The failure to exercise the right to an administrative 162.28 reconsideration shall not be a bar to a hearing under this 162.29 section if federal law provides an individual the right to a 162.30 hearing to dispute a finding of maltreatment. Individuals and 162.31 organizations specified in this section may contest the 162.32 specified action, decision, or final disposition before the 162.33 state agency by submitting a written request for a hearing to 162.34 the state agency within 30 days after receiving written notice 162.35 of the action, decision, or final disposition, or within 90 days 162.36 of such written notice if the applicant, recipient, patient, or 163.1 relative shows good cause why the request was not submitted 163.2 within the 30-day time limit. 163.3 The hearing for an individual or facility under clause (4) 163.4 or (8) is the only administrative appeal to the finallead163.5 agencydispositiondetermination specifically, including a 163.6 challenge to the accuracy and completeness of data under section 163.7 13.04. Hearings requested under clause (4) apply only to 163.8 incidents of maltreatment that occur on or after October 1, 163.9 1995. Hearings requested by nursing assistants in nursing homes 163.10 alleged to have maltreated a resident prior to October 1, 1995, 163.11 shall be held as a contested case proceeding under the 163.12 provisions of chapter 14. Hearings requested under clause (8) 163.13 apply only to incidents of maltreatment that occur on or after 163.14 July 1, 1997. A hearing for an individual or facility under 163.15 clause (8) is only available when there is no juvenile court or 163.16 adult criminal action pending. If such action is filed in 163.17 either court while an administrative review is pending, the 163.18 administrative review must be suspended until the judicial 163.19 actions are completed. If the juvenile court action or criminal 163.20 charge is dismissed or the criminal action overturned, the 163.21 matter may be considered in an administrative hearing. 163.22 For purposes of this section, bargaining unit grievance 163.23 procedures are not an administrative appeal. 163.24 The scope of hearings involving claims to foster care 163.25 payments under clause (5) shall be limited to the issue of 163.26 whether the county is legally responsible for a child's 163.27 placement under court order or voluntary placement agreement 163.28 and, if so, the correct amount of foster care payment to be made 163.29 on the child's behalf and shall not include review of the 163.30 propriety of the county's child protection determination or 163.31 child placement decision. 163.32 (b) Except for a prepaid health plan, a vendor of medical 163.33 care as defined in section 256B.02, subdivision 7, or a vendor 163.34 under contract with a county agency to provide social services 163.35 under section 256E.08, subdivision 4, is not a party and may not 163.36 request a hearing under this section, except if assisting a 164.1 recipient as provided in subdivision 4. 164.2 (c) An applicant or recipient is not entitled to receive 164.3 social services beyond the services included in the amended 164.4 community social services plan developed under section 256E.081, 164.5 subdivision 3, if the county agency has met the requirements in 164.6 section 256E.081. 164.7 Sec. 7. Minnesota Statutes 1996, section 256.045, 164.8 subdivision 3b, is amended to read: 164.9 Subd. 3b. [STANDARD OF EVIDENCE FOR MALTREATMENT 164.10 HEARINGS.] The state human services referee shall determine that 164.11 maltreatment has occurred if a preponderance of evidence exists 164.12 to support the final disposition undersectionsections 626.556 164.13 and 626.557. 164.14 The state human services referee shall recommend an order 164.15 to the commissioner of health or human services, as applicable, 164.16 who shall issue a final order. The commissioner shall affirm, 164.17 reverse, or modify the final disposition. Any order of the 164.18 commissioner issued in accordance with this subdivision is 164.19 conclusive upon the parties unless appeal is taken in the manner 164.20 provided in subdivision 7. In any licensing appeal under 164.21 chapter 245A and sections 144.50 to 144.58 and 144A.02 to 164.22 144A.46, the commissioner'sfindingsdetermination as towhether164.23 maltreatmentoccurredis conclusive. 164.24 Sec. 8. Minnesota Statutes 1996, section 256.045, 164.25 subdivision 4, is amended to read: 164.26 Subd. 4. [CONDUCT OF HEARINGS.] (a) All hearings held 164.27 pursuant to subdivision 3, 3a, 3b, or 4a shall be conducted 164.28 according to the provisions of the federal Social Security Act 164.29 and the regulations implemented in accordance with that act to 164.30 enable this state to qualify for federal grants-in-aid, and 164.31 according to the rules and written policies of the commissioner 164.32 of human services. County agencies shall install equipment 164.33 necessary to conduct telephone hearings. A state human services 164.34 referee may schedule a telephone conference hearing when the 164.35 distance or time required to travel to the county agency offices 164.36 will cause a delay in the issuance of an order, or to promote 165.1 efficiency, or at the mutual request of the parties. Hearings 165.2 may be conducted by telephone conferences unless the applicant, 165.3 recipient, former recipient, person, or facility contesting 165.4 maltreatment objects. The hearing shall not be held earlier 165.5 than five days after filing of the required notice with the 165.6 county or state agency. The state human services referee shall 165.7 notify all interested persons of the time, date, and location of 165.8 the hearing at least five days before the date of the hearing. 165.9 Interested persons may be represented by legal counsel or other 165.10 representative of their choice, including a provider of therapy 165.11 services, at the hearing and may appear personally, testify and 165.12 offer evidence, and examine and cross-examine witnesses. The 165.13 applicant, recipient, former recipient, person, or facility 165.14 contesting maltreatment shall have the opportunity to examine 165.15 the contents of the case file and all documents and records to 165.16 be used by the county or state agency at the hearing at a 165.17 reasonable time before the date of the hearing and during the 165.18 hearing.In cases alleging discharge for maltreatment,In 165.19 hearings under subdivision 3, paragraph (b), clauses (4) and 165.20 (8), either party may subpoena the private data relating to the 165.21 investigationmemorandumprepared by theleadagency under 165.22 section 626.556 or 626.557 that is not otherwise accessible 165.23 under section 13.04, provided thenameidentity of the reporter 165.24 may not be disclosed. 165.25 (b) The private data obtained by subpoena in a hearing 165.26 under subdivision 3, paragraph (a), clause (4) or (8), must be 165.27 subject to a protective order which prohibits its disclosure for 165.28 any other purpose outside the hearing provided for in this 165.29 section without prior order of the district court. Disclosure 165.30 without court order is punishable by a sentence of not more than 165.31 90 days imprisonment or a fine of not more than $700, or both. 165.32 These restrictions on the use of private data do not prohibit 165.33 access to the data under section 13.03, subdivision 6. Except 165.34 for appeals under subdivision 3, paragraph (a), clauses (4), 165.35 (5), and (8), upon request, the county agency shall provide 165.36 reimbursement for transportation, child care, photocopying, 166.1 medical assessment, witness fee, and other necessary and 166.2 reasonable costs incurred by the applicant, recipient, or former 166.3 recipient in connection with the appeal, except in appeals166.4brought under subdivision 3b. All evidence, except that 166.5 privileged by law, commonly accepted by reasonable people in the 166.6 conduct of their affairs as having probative value with respect 166.7 to the issues shall be submitted at the hearing and such hearing 166.8 shall not be "a contested case" within the meaning of section 166.9 14.02, subdivision 3. The agency must present its evidence 166.10 prior to or at the hearing, and may not submit evidence after 166.11 the hearing except by agreement of the parties at the hearing, 166.12 provided therecipientpetitioner has the opportunity to respond. 166.13 Sec. 9. Minnesota Statutes 1996, section 256.045, 166.14 subdivision 5, is amended to read: 166.15 Subd. 5. [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] 166.16This subdivision does not apply to appeals under subdivision166.173b.A state human services referee shall conduct a hearing on 166.18 the appeal and shall recommend an order to the commissioner of 166.19 human services. The recommended order must be based on all 166.20 relevant evidence and must not be limited to a review of the 166.21 propriety of the state or county agency's action. A referee may 166.22 take official notice of adjudicative facts. The commissioner of 166.23 human services may accept the recommended order of a state human 166.24 services referee and issue the order to the county agency and 166.25 the applicant, recipient, former recipient, or prepaid health 166.26 plan. The commissioner on refusing to accept the recommended 166.27 order of the state human services referee, shall notify the 166.28countypetitioner, the agencyand the applicant, recipient,166.29former recipient, or prepaid health plan of that fact and shall 166.30 state reasons therefor and shall allow each party ten days' time 166.31 to submit additional written argument on the matter. After the 166.32 expiration of the ten-day period, the commissioner shall issue 166.33 an order on the matter to thecountypetitioner, the agencyand166.34the applicant, recipient, former recipient, or prepaid health 166.35 plan. 166.36 A party aggrieved by an order of the commissioner may 167.1 appeal under subdivision 7, or request reconsideration by the 167.2 commissioner within 30 days after the date the commissioner 167.3 issues the order. The commissioner may reconsider an order upon 167.4 request of any party or on the commissioner's own motion. A 167.5 request for reconsideration does not stay implementation of the 167.6 commissioner's order. Upon reconsideration, the commissioner 167.7 may issue an amended order or an order affirming the original 167.8 order. 167.9 Any order of the commissioner issued under this subdivision 167.10 shall be conclusive upon the parties unless appeal is taken in 167.11 the manner provided by subdivision 7. Any order of the 167.12 commissioner is binding on the parties and must be implemented 167.13 by the state agency or a county agency until the order is 167.14 reversed by the district court, or unless the commissioner or a 167.15 district court orders monthly assistance or aid or services paid 167.16 or provided under subdivision 10. 167.17 Except for a prepaid health plan, a vendor of medical care 167.18 as defined in section 256B.02, subdivision 7, or a vendor under 167.19 contract with a county agency to provide social services under 167.20 section 256E.08, subdivision 4, is not a party and may not 167.21 request a hearing or seek judicial review of an order issued 167.22 under this section, unless assisting a recipient as provided in 167.23 subdivision 4. 167.24 Sec. 10. Minnesota Statutes 1996, section 256.045, 167.25 subdivision 8, is amended to read: 167.26 Subd. 8. [HEARING.] Any party may obtain a hearing at a 167.27 special term of the district court by serving a written notice 167.28 of the time and place of the hearing at least ten days prior to 167.29 the date of the hearing.Except for appeals under subdivision167.303b,The court may consider the matter in or out of chambers, and 167.31 shall take no new or additional evidence unless it determines 167.32 that such evidence is necessary for a more equitable disposition 167.33 of the appeal. 167.34 Sec. 11. Minnesota Statutes 1996, section 256.82, is 167.35 amended by adding a subdivision to read: 167.36 Subd. 5. [DIFFICULTY OF CARE ASSESSMENT PILOT 168.1 PROJECT.] Notwithstanding any law to the contrary, the 168.2 commissioner of human services shall conduct a two-year 168.3 statewide pilot project beginning July 1, 1997, to conduct a 168.4 difficulty of care assessment process which both assesses an 168.5 individual child's current functioning and identifies needs in a 168.6 variety of life situations. The pilot project must take into 168.7 consideration existing difficulty of care payments so that, to 168.8 the extent possible, no child for whom a difficulty of care rate 168.9 is currently established will be adversely affected. The pilot 168.10 project must include an evaluation and an interim report to the 168.11 legislature by January 15, 1999. 168.12 Sec. 12. Minnesota Statutes 1996, section 256F.11, 168.13 subdivision 2, is amended to read: 168.14 Subd. 2. [FUND DISTRIBUTION.] In distributing funds, the 168.15 commissioner shall give priority consideration to agencies and 168.16 organizations with experience in working with abused or 168.17 neglected children and their families, and with children at high 168.18 risk of abuse and neglect and their families, and serve 168.19 communities which demonstrate the greatest need for these 168.20 services. Funds shall be distributed to crisis nurseries 168.21 according to a formula developed by the commissioner in 168.22 consultation with the Minnesota crisis nursery association. 168.23 This formula shall include funding for all existing crisis 168.24 nursery programs that meet program requirements as specified in 168.25 paragraph (a), and consideration of factors reflecting the need 168.26 for services in each service area, including, but not limited 168.27 to, the number of children 18 years of age and under living in 168.28 the service area, the percent of children 18 years of age and 168.29 under living in poverty in the service area, and factors 168.30 reflecting the cost of providing services, including, but not 168.31 limited to, the number of days of service provided in the 168.32 previous year. At least 25 percent of available funds for state 168.33 fiscal year 1998 shall be set aside to accomplish any of the 168.34 following: establish new crisis nursery programs; increase 168.35 statewide availability of crisis nursery services; and enhance 168.36 or expand services at existing crisis nursery programs. 169.1 (a) The crisis nurseries must: 169.2 (1) be available 24 hours a day, seven days a week; 169.3 (2) provide services for children up to three days at any 169.4 one time; 169.5 (3) make referrals for parents to counseling services and 169.6 other community resources to help alleviate the underlying cause 169.7 of the precipitating stress or crisis; 169.8 (4) provide services without a fee for a maximum of 30 days 169.9 in any year; 169.10 (5) provide services to children from birth to 12 years of 169.11 age; 169.12 (6) provide an initial assessment and intake interview 169.13 conducted by a skilled professional who will identify the 169.14 presenting problem and make an immediate referral to an 169.15 appropriate agency or program to prevent maltreatment and 169.16 out-of-home placement of children; 169.17 (7) maintain the clients' confidentiality to the extent 169.18 required by law, and also comply with statutory reporting 169.19 requirements which may mandate a report to child protective 169.20 services; 169.21 (8) contain a volunteer component; 169.22 (9) provide preservice training and ongoing training to 169.23 providers and volunteers; 169.24 (10) evaluate the services provided by documenting use of 169.25 services, the result of family referrals made to community 169.26 resources, and how the services reduced the risk of 169.27 maltreatment; 169.28 (11) provide age appropriate programming; 169.29 (12) provide developmental assessments; 169.30 (13) provide medical assessments as determined by using a 169.31 risk screening tool; 169.32 (14) meet United States Department of Agriculture 169.33 regulations concerning meals and provide three meals a day and 169.34 three snacks during a 24-hour period; and 169.35 (15) provide appropriate sleep and nap arrangements for 169.36 children. 170.1 (b) The crisis nurseries are encouraged to provide: 170.2 (1) on-site support groups for facility model programs, or 170.3 agency sponsored parent support groups for volunteer family 170.4 model programs; 170.5 (2) parent education classes or programs that include 170.6 parent-child interaction; and 170.7 (3) opportunities for parents to volunteer, if appropriate, 170.8 to assist with child care in a supervised setting in order to 170.9 enhance their parenting skills and self-esteem, in addition to 170.10 providing them the opportunity to give something back to the 170.11 program. 170.12 (c) Parents shall retain custody of their children during 170.13 placement in a crisis facility. 170.14 The crisis nurseries are encouraged to include one or more 170.15 parents who have used the crisis nursery services on the 170.16 program's multidisciplinary advisory board. 170.17 Sec. 13. [257.85] [RELATIVE CUSTODY ASSISTANCE.] 170.18 Subdivision 1. [CITATION.] This section may be cited as 170.19 the "Relative Custody Assistance Act." 170.20 Subd. 2. [PURPOSE.] The purpose of the Relative Custody 170.21 Assistance Act is to assist relatives who provide a permanent 170.22 placement for children who have been in court-ordered foster 170.23 care by taking permanent legal and physical custody of the 170.24 child. Relative custody assistance is designed to remove 170.25 barriers to establishing custody with a relative that result 170.26 from the special needs of the child and the limited financial 170.27 resources available to the relative custodian to meet those 170.28 needs. This section establishes a system of financial support 170.29 through state and county partnership for relatives who assume 170.30 permanent legal and physical custody of a child through a 170.31 Minnesota juvenile court order entered pursuant to section 170.32 260.191, subdivision 3b, and finding: 170.33 (1) that the child cannot return to the home of the child's 170.34 parents; and 170.35 (2) that it is in the child's best interests that permanent 170.36 legal and physical custody be transferred to the relative. 171.1 Relative custody assistance is designed to determine a 171.2 supplement to the cash assistance otherwise available to the 171.3 relative custodian of a child that would raise the total amount 171.4 of assistance to the amount the child would be eligible to 171.5 receive through the adoption assistance program if an adoption 171.6 assistance agreement were entered on the child's behalf. A 171.7 percentage of the supplement so determined is then paid based 171.8 upon the income of the relative custodian's family. 171.9 Subd. 3. [SCOPE.] The provisions of this section apply to 171.10 those situations in which the legal and physical custody of a 171.11 child is established with a relative according to section 171.12 260.191, subdivision 3b, by a court order issued on or after 171.13 July 1, 1997. 171.14 Subd. 4. [DEFINITIONS.] For purposes of this section, the 171.15 terms defined in this subdivision have the meanings given them. 171.16 (a) "AFDC or MFIP standard" means the monthly standard of 171.17 need used to calculate assistance under the AFDC program, the 171.18 transitional standard used to calculate assistance under the 171.19 MFIP-S program, or, if neither of those is applicable, the 171.20 analogous transitional standard used to calculate assistance 171.21 under the MFIP or MFIP-R programs. 171.22 (b) "Local agency" means the local social service agency 171.23 with legal custody of a child prior to the transfer of permanent 171.24 legal and physical custody to a relative. 171.25 (c) "Permanent legal and physical custody" means permanent 171.26 legal and physical custody ordered by a Minnesota juvenile court 171.27 under section 260.191, subdivision 3b. 171.28 (d) "Relative" means an individual, other than a parent, 171.29 who is related to a child by blood, marriage, or adoption. 171.30 (e) "Relative custodian" means a relative of a child for 171.31 whom the relative has permanent legal and physical custody. 171.32 (f) "Relative custody assistance agreement" means an 171.33 agreement entered into between a local agency and the relative 171.34 of a child who has been or will be awarded permanent legal and 171.35 physical custody of the child. 171.36 (g) "Relative custody assistance payment" means a monthly 172.1 cash grant made to a relative custodian pursuant to a relative 172.2 custody assistance agreement and in an amount calculated under 172.3 subdivision 8. 172.4 (h) "Remains in the physical custody of the relative 172.5 custodian" means that the relative custodian is providing 172.6 day-to-day care for the child and that the child lives with the 172.7 relative custodian; absence from the relative custodian's home 172.8 for a period of more than 120 days raises a presumption that the 172.9 child no longer remains in the physical custody of the relative 172.10 custodian. 172.11 Subd. 5. [DUTIES OF LOCAL AGENCY.] When a local agency 172.12 seeks a court order under section 260.191, subdivision 3b, to 172.13 establish permanent legal and physical custody of a child with a 172.14 relative, or if such an order is issued by the court, the local 172.15 agency shall perform the duties in this subdivision. 172.16 (a) As soon as possible after the local agency determines 172.17 that it will seek to establish permanent legal and physical 172.18 custody of the child with a relative or, if the agency did not 172.19 seek to establish custody, as soon as possible after the 172.20 issuance of the court order establishing custody, the local 172.21 agency shall inform the relative about the relative custody 172.22 assistance program, including eligibility criteria and payment 172.23 levels. Anytime prior to, but not later than seven days after, 172.24 the date the court issues the order establishing permanent legal 172.25 and physical custody of the child with a relative, the local 172.26 agency shall determine whether the eligibility criteria in 172.27 subdivision 7 are met to allow the relative to receive relative 172.28 custody assistance. Not later than seven days after determining 172.29 whether the eligibility criteria are met, the local agency shall 172.30 inform the relative custodian of its determination and of the 172.31 process for appealing that determination under subdivision 10. 172.32 (b) If the local agency determines that the relative 172.33 custodian is eligible to receive relative custody assistance, 172.34 the local agency shall prepare the relative custody assistance 172.35 agreement and ensure that it meets the requirements of 172.36 subdivision 6. 173.1 (c) The local agency shall make monthly payments to the 173.2 relative as set forth in the relative custody assistance 173.3 agreement. On a quarterly basis and on a form to be provided by 173.4 the commissioner, the local agency shall make claims for 173.5 reimbursement from the commissioner for relative custody 173.6 assistance payments made. 173.7 (d) For a relative custody assistance agreement that is in 173.8 place for longer than one year, and as long as the agreement 173.9 remains in effect, the local agency shall send an annual 173.10 affidavit form to the relative custodian of the eligible child 173.11 within the month before the anniversary date of the agreement. 173.12 The local agency shall monitor whether the annual affidavit is 173.13 returned by the relative custodian within 30 days following the 173.14 anniversary date of the agreement. The local agency shall 173.15 review the affidavit and any other information in its possession 173.16 to ensure continuing eligibility for relative custody assistance 173.17 and that the amount of payment made according to the agreement 173.18 is correct. 173.19 (e) When the local agency determines that a relative 173.20 custody assistance agreement should be terminated or modified, 173.21 it shall provide notice of the proposed termination or 173.22 modification to the relative custodian at least ten days before 173.23 the proposed action along with information about the process for 173.24 appealing the proposed action. 173.25 Subd. 6. [RELATIVE CUSTODY ASSISTANCE AGREEMENT.] (a) A 173.26 relative custody assistance agreement will not be effective, 173.27 unless it is signed by the local agency and the relative 173.28 custodian no later than 30 days after the date of the order 173.29 establishing permanent legal and physical custody with the 173.30 relative, except that a local agency may enter into a relative 173.31 custody assistance agreement with a relative custodian more than 173.32 30 days after the date of the order if it certifies that the 173.33 delay in entering the agreement was through no fault of the 173.34 relative custodian. There must be a separate agreement for each 173.35 child for whom the relative custodian is receiving relative 173.36 custody assistance. 174.1 (b) Regardless of when the relative custody assistance 174.2 agreement is signed by the local agency and relative custodian, 174.3 the effective date of the agreement shall be the first day of 174.4 the month following the date of the order establishing permanent 174.5 legal and physical custody or the date that the last party signs 174.6 the agreement, whichever occurs later. 174.7 (c) If MFIP-S is not the applicable program for a child at 174.8 the time that a relative custody assistance agreement is entered 174.9 on behalf of the child, when MFIP-S becomes the applicable 174.10 program, if the relative custodian had been receiving custody 174.11 assistance payments calculated based upon a different program, 174.12 the amount of relative custody assistance payment under 174.13 subdivision 8 shall be recalculated under the MFIP-S program. 174.14 (d) The relative custody assistance agreement shall be in a 174.15 form specified by the commissioner and shall include provisions 174.16 relating to the following: 174.17 (1) the responsibilities of all parties to the agreement; 174.18 (2) the payment terms, including the financial 174.19 circumstances of the relative custodian, the needs of the child, 174.20 the amount and calculation of the relative custody assistance 174.21 payments, and that the amount of the payments shall be 174.22 reevaluated annually; 174.23 (3) the effective date of the agreement, which shall also 174.24 be the anniversary date for the purpose of submitting the annual 174.25 affidavit under subdivision 9; 174.26 (4) that failure to submit the affidavit as required by 174.27 subdivision 9 will be grounds for terminating the agreement; 174.28 (5) the agreement's expected duration, which shall not 174.29 extend beyond the child's eighteenth birthday; 174.30 (6) any specific known circumstances that could cause the 174.31 agreement or payments to be modified, reduced, or terminated and 174.32 the relative custodian's appeal rights under subdivision 10; 174.33 (7) that the relative custodian must notify the local 174.34 agency within 30 days of any of the following: 174.35 (i) a change in the child's status; 174.36 (ii) a change in the relationship between the relative 175.1 custodian and the child; 175.2 (iii) a change in composition or level of income of the 175.3 relative custodian's family; 175.4 (iv) a change in eligibility or receipt of benefits under 175.5 AFDC, MFIP-S, or other assistance program; and 175.6 (v) any other change that could effect eligibility for or 175.7 amount of relative custody assistance; 175.8 (8) that failure to provide notice of a change as required 175.9 by clause (7) will be grounds for terminating the agreement; 175.10 (9) that the amount of relative custody assistance is 175.11 subject to the availability of state funds to reimburse the 175.12 local agency making the payments; 175.13 (10) that the relative custodian may choose to temporarily 175.14 stop receiving payments under the agreement at any time by 175.15 providing 30 days' notice to the local agency and may choose to 175.16 begin receiving payments again by providing the same notice but 175.17 any payments the relative custodian chooses not to receive are 175.18 forfeit; and 175.19 (11) that the local agency will continue to be responsible 175.20 for making relative custody assistance payments under the 175.21 agreement regardless of the relative custodian's place of 175.22 residence. 175.23 Subd. 7. [ELIGIBILITY CRITERIA.] A local agency shall 175.24 enter into a relative custody assistance agreement under 175.25 subdivision 6 if it certifies that the following criteria are 175.26 met: 175.27 (1) the juvenile court has determined or is expected to 175.28 determine that the child, under the former or current custody of 175.29 the local agency, cannot return to the home of the child's 175.30 parents; 175.31 (2) the court, upon determining that it is in the child's 175.32 best interests, has issued or is expected to issue an order 175.33 transferring permanent legal and physical custody of the child 175.34 to the relative; and 175.35 (3) the child either: 175.36 (i) is a member of a sibling group to be placed together; 176.1 or 176.2 (ii) has a physical, mental, emotional, or behavioral 176.3 disability that will require financial support. 176.4 When the local agency bases its certification that the 176.5 criteria in clause (1) or (2) are met upon the expectation that 176.6 the juvenile court will take a certain action, the relative 176.7 custody assistance agreement does not become effective until and 176.8 unless the court acts as expected. 176.9 Subd. 8. [AMOUNT OF RELATIVE CUSTODY ASSISTANCE 176.10 PAYMENTS.] (a) The amount of a monthly relative custody 176.11 assistance payment shall be determined according to the 176.12 provisions of this paragraph. 176.13 (1) The total maximum assistance rate is equal to the base 176.14 assistance rate plus, if applicable, the supplemental assistance 176.15 rate. 176.16 (i) The base assistance rate is equal to the maximum amount 176.17 that could be received as basic maintenance for a child of the 176.18 same age under the adoption assistance program. 176.19 (ii) The local agency shall determine whether the child has 176.20 physical, mental, emotional, or behavioral disabilities that 176.21 require care, supervision, or structure beyond that ordinarily 176.22 provided in a family setting to children of the same age such 176.23 that the child would be eligible for supplemental maintenance 176.24 payments under the adoption assistance program if an adoption 176.25 assistance agreement were entered on the child's behalf. If the 176.26 local agency determines that the child has such a disability, 176.27 the supplemental assistance rate shall be the maximum amount of 176.28 monthly supplemental maintenance payment that could be received 176.29 on behalf of a child of the same age, disabilities, and 176.30 circumstances under the adoption assistance program. 176.31 (2) The net maximum assistance rate is equal to the total 176.32 maximum assistance rate from clause (1) less the following 176.33 offsets: 176.34 (i) if the child is or will be part of an assistance unit 176.35 receiving an AFDC, MFIP-S, or other MFIP grant, the portion of 176.36 the AFDC or MFIP standard relating to the child; 177.1 (ii) Supplemental Security Income payments received by or 177.2 on behalf of the child; 177.3 (iii) veteran's benefits received by or on behalf of the 177.4 child; and 177.5 (iv) any other income of the child, including child support 177.6 payments made on behalf of the child. 177.7 (3) The relative custody assistance payment to be made to 177.8 the relative custodian shall be a percentage of the net maximum 177.9 assistance rate calculated in clause (2) based upon the gross 177.10 income of the relative custodian's family, including the child 177.11 for whom the relative has permanent legal and physical custody. 177.12 In no case shall the amount of the relative custody assistance 177.13 payment exceed that which the child could qualify for under the 177.14 adoption assistance program if an adoption assistance agreement 177.15 were entered on the child's behalf. The relative custody 177.16 assistance payment shall be calculated as follows: 177.17 (i) if the relative custodian's gross family income is less 177.18 than or equal to 200 percent of federal poverty guidelines, the 177.19 relative custody assistance payment shall be the full amount of 177.20 the net maximum assistance rate; 177.21 (ii) if the relative custodian's gross family income is 177.22 greater than 200 percent and less than or equal to 225 percent 177.23 of federal poverty guidelines, the relative custody assistance 177.24 payment shall be 80 percent of the net maximum assistance rate; 177.25 (iii) if the relative custodian's gross family income is 177.26 greater than 225 percent and less than or equal to 250 percent 177.27 of federal poverty guidelines, the relative custody assistance 177.28 payment shall be 60 percent of the net maximum assistance rate; 177.29 (iv) if the relative custodian's gross family income is 177.30 greater than 250 percent and less than or equal to 275 percent 177.31 of federal poverty guidelines, the relative custody assistance 177.32 payment shall be 40 percent of the net maximum assistance rate; 177.33 (v) if the relative custodian's gross family income is 177.34 greater than 275 percent and less than or equal to 300 percent 177.35 of federal poverty guidelines, the relative custody assistance 177.36 payment shall be 20 percent of the net maximum assistance rate; 178.1 or 178.2 (vi) if the relative custodian's gross family income is 178.3 greater than 300 percent of federal poverty guidelines, no 178.4 relative custody assistance payment shall be made. 178.5 (b) This paragraph sets forth the provisions pertaining to 178.6 the relationship between relative custody assistance and AFDC, 178.7 MFIP-S, or other MFIP programs: 178.8 (1) the relative custodian of a child for whom the relative 178.9 is receiving relative custody assistance is expected to seek 178.10 whatever assistance is available for the child through the AFDC, 178.11 MFIP-S, or other MFIP programs. If a relative custodian fails 178.12 to apply for assistance through AFDC, MFIP-S, or other MFIP 178.13 program for which the child is eligible, the child's portion of 178.14 the AFDC or MFIP standard will be calculated as if application 178.15 had been made and assistance received; 178.16 (2) the portion of the AFDC or MFIP standard relating to 178.17 each child for whom relative custody assistance is being 178.18 received shall be calculated as follows: 178.19 (i) determine the total AFDC or MFIP standard for the 178.20 assistance unit; 178.21 (ii) determine the amount that the AFDC or MFIP standard 178.22 would have been if the assistance unit had not included the 178.23 children for whom relative custody assistance is being received; 178.24 (iii) subtract the amount determined in item (ii) from the 178.25 amount determined in item (i); and 178.26 (iv) divide the result in item (iii) by the number of 178.27 children for whom relative custody assistance is being received 178.28 that are part of the assistance unit; or 178.29 (3) if a child for whom relative custody assistance is 178.30 being received is not eligible for assistance through the AFDC, 178.31 MFIP-S, or other MFIP programs, the portion of AFDC or MFIP 178.32 standard relating to that child shall be equal to zero. 178.33 Subd. 9. [ANNUAL AFFIDAVIT.] When a relative custody 178.34 assistance agreement remains in effect for more than one year, 178.35 the local agency shall require the relative custodian to 178.36 annually submit an affidavit in a form to be specified by the 179.1 commissioner. The affidavit must be submitted to the local 179.2 agency each year no later than 30 days after the relative 179.3 custody assistance agreement's anniversary date. The affidavit 179.4 shall document the following: 179.5 (1) that the child remains in the physical custody of the 179.6 relative custodian; 179.7 (2) that there is a continuing need for the relative 179.8 custody assistance payments due to the child's physical, mental, 179.9 emotional, or behavioral needs; and 179.10 (3) the current gross income of the relative custodian's 179.11 family. 179.12 The relative custody assistance agreement may be modified 179.13 based on information or documentation presented to the local 179.14 agency under this requirement and as required by annual 179.15 adjustments to the federal poverty guidelines. 179.16 Subd. 10. [RIGHT OF APPEAL.] A relative custodian who 179.17 enters into a relative custody assistance agreement with a local 179.18 agency has the right to appeal to the commissioner under section 179.19 256.045 when the local agency establishes, denies, terminates, 179.20 or modifies the agreement. Upon appeal, the commissioner may 179.21 review only: 179.22 (1) whether the local agency has met the legal requirements 179.23 imposed by this chapter for establishing, denying, terminating, 179.24 or modifying the agreement; 179.25 (2) whether the amount of the relative custody assistance 179.26 payment was correctly calculated under the method in subdivision 179.27 8; 179.28 (3) whether the local agency paid for correct time periods 179.29 under the relative custody assistance agreement; 179.30 (4) whether the child remains in the physical custody of 179.31 the relative custodian; 179.32 (5) whether the local agency correctly calculated the 179.33 amount of the supplemental assistance rate based on a change in 179.34 the child's physical, mental, emotional, or behavioral needs, 179.35 the relative custodian's failure to document the continuing need 179.36 for the supplemental assistance rate after the local agency has 180.1 requested such documentation; and 180.2 (6) whether the local agency correctly calculated or 180.3 terminated the amount of relative custody assistance based on 180.4 the relative custodian's failure to provide documentation of the 180.5 gross income of the relative custodian's family after the local 180.6 agency has requested such documentation. 180.7 Subd. 11. [CHILD'S COUNTY OF RESIDENCE.] For the purposes 180.8 of the Unitary Residency Act, time spent by a child in the 180.9 custody of a relative custodian receiving payments under this 180.10 section is not excluded time. A child is a resident of the 180.11 county where the relative custodian is a resident. 180.12 Subd. 12. [FINANCIAL CONSIDERATIONS.] (a) Payment of 180.13 relative custody assistance pursuant to a relative custody 180.14 assistance agreement is subject to the availability of state 180.15 funds and payments may be reduced or suspended on order of the 180.16 commissioner if insufficient funds are available. 180.17 (b) Upon receipt from a local agency of a claim for 180.18 reimbursement, the commissioner shall reimburse the local agency 180.19 in an amount equal to 100 percent of the relative custody 180.20 assistance payments provided to relative custodians. The local 180.21 agency may not seek and the commissioner shall not provide 180.22 reimbursement for the administrative costs associated with 180.23 performing the duties in subdivision 5. 180.24 (c) For the purposes of determining eligibility or payment 180.25 amounts under the AFDC, MFIP-S, and other MFIP programs, 180.26 relative custody assistance payments shall be considered 180.27 excluded income. 180.28 Sec. 14. Minnesota Statutes 1996, section 393.07, 180.29 subdivision 2, is amended to read: 180.30 Subd. 2. [ADMINISTRATION OF PUBLIC WELFARE.] The local 180.31 social services agency, subject to the supervision of the 180.32 commissioner of human services, shall administer all forms of 180.33 public welfare, both for children and adults, responsibility for 180.34 which now or hereafter may be imposed on the commissioner of 180.35 human services by law, including general assistance, aid to 180.36 dependent children, county supplementation, if any, or state aid 181.1 to recipients of supplemental security income for aged, blind 181.2 and disabled, child welfare services, mental health services, 181.3 and other public assistance or public welfare services, provided 181.4 that the local social services agency shall not employ public 181.5 health nursing or home health service personnel other than 181.6 homemaker-home help aides, but shall contract for or purchase 181.7 the necessary services from existing community agencies. The 181.8 duties of the local social services agency shall be performed in 181.9 accordance with the standards and rules which may be promulgated 181.10 by the commissioner of human services to achieve the purposes 181.11 intended by law and in order to comply with the requirements of 181.12 the federal Social Security Act in respect to public assistance 181.13 and child welfare services, so that the state may qualify for 181.14 grants-in-aid available under that act. To avoid administrative 181.15 penalties under section 256.017, the local social services 181.16 agency must comply with (1) policies established by state law 181.17 and (2) instructions from the commissioner relating (i) to 181.18 public assistance program policies consistent with federal law 181.19 and regulation and state law and rule and (ii) to local agency 181.20 program operations. The commissioner may enforce local social 181.21 services agency compliance with the instructions, and may delay, 181.22 withhold, or deny payment of all or part of the state and 181.23 federal share of benefits and federal administrative 181.24 reimbursement, according to the provisions under section 181.25 256.017. The local social services agency shall supervise wards 181.26 of the commissioner and, when so designated, act as agent of the 181.27 commissioner of human services in the placement of the 181.28 commissioner's wards in adoptive homes or in other foster care 181.29 facilities. The local social services agency shall cooperate as 181.30 needed when the commissioner contracts with a licensed child 181.31 placement agency for adoption services for a child under the 181.32 commissioner's guardianship. The local social services agency 181.33 may contract with a bank or other financial institution to 181.34 provide services associated with the processing of public 181.35 assistance checks and pay a service fee for these services, 181.36 provided the fee charged does not exceed the fee charged to 182.1 other customers of the institution for similar services. 182.2 Sec. 15. Minnesota Statutes 1996, section 466.01, 182.3 subdivision 1, is amended to read: 182.4 Subdivision 1. [MUNICIPALITY.] For the purposes of 182.5 sections 466.01 to 466.15, "municipality" means any city, 182.6 whether organized under home rule charter or otherwise, any 182.7 county, town, public authority, public corporation, nonprofit 182.8 firefighting corporation that has associated with it a relief 182.9 association as defined in section 424A.001, subdivision 4, 182.10 special district, school district, however organized, county 182.11 agricultural society organized pursuant to chapter 38, joint 182.12 powers board or organization created under section 471.59 or 182.13 other statute, public library, regional public library system, 182.14 multicounty multitype library system, family services 182.15 collaborative established under section 121.8355, children's 182.16 mental health collaboratives established under sections 245.491 182.17 to 245.496, or a collaborative established by the merger of a 182.18 children's mental health collaborative and a family services 182.19 collaborative, other political subdivision, or community action 182.20 agency. 182.21 Sec. 16. Minnesota Statutes 1996, section 471.59, 182.22 subdivision 11, is amended to read: 182.23 Subd. 11. [JOINT POWERS BOARD.] (a) Two or more 182.24 governmental units, through action of their governing bodies, by 182.25 adoption of a joint powers agreement that complies with the 182.26 provisions of subdivisions 1 to 5, may establish a joint board 182.27 to issue bonds or obligations under any law by which any of the 182.28 governmental units establishing the joint board may 182.29 independently issue bonds or obligations and may use the 182.30 proceeds of the bonds or obligations to carry out the purposes 182.31 of the law under which the bonds or obligations are issued. A 182.32 joint board established under this section may issue obligations 182.33 and other forms of indebtedness only in accordance with express 182.34 authority granted by the action of the governing bodies of the 182.35 governmental units that established the joint board. Except as 182.36 provided in paragraph (b), the joint board established under 183.1 this subdivision must be composed solely of members of the 183.2 governing bodies of the governmental unit that established the 183.3 joint board. A joint board established under this subdivision 183.4 may not pledge the full faith and credit or taxing power of any 183.5 of the governmental units that established the joint board. The 183.6 obligations or other forms of indebtedness must be obligations 183.7 of the joint board issued on behalf of the governmental units 183.8 creating the joint board. The obligations or other forms of 183.9 indebtedness must be issued in the same manner and subject to 183.10 the same conditions and limitations that would apply if the 183.11 obligations were issued or indebtedness incurred by one of the 183.12 governmental units that established the joint board, provided 183.13 that any reference to a governmental unit in the statute, law, 183.14 or charter provision authorizing the issuance of the bonds or 183.15 the incurring of the indebtedness is considered a reference to 183.16 the joint board. 183.17 (b) Notwithstanding paragraph (a), one school district, one 183.18 county, and one public health entity, through action of their 183.19 governing bodies, may establish a joint board to establish and 183.20 govern a family services collaborative under section 121.8355. 183.21 The school district, county, and public health entity may 183.22 include other governmental entities at their discretion. The 183.23 membership of a board established under this paragraph, in 183.24 addition to members of the governing bodies of the participating 183.25 governmental units, must include the representation required by 183.26 section 121.8355, subdivision 1, paragraph (a), selected in 183.27 accordance with section 121.8355, subdivision 1, paragraph (c). 183.28 (c) Notwithstanding paragraph (a), counties, school 183.29 districts, and mental health entities, through action of their 183.30 governing bodies, may establish a joint board to establish and 183.31 govern a children's mental health collaborative under sections 183.32 245.491 to 245.496, or a collaborative established by the merger 183.33 of a children's mental health collaborative and a family 183.34 services collaborative under section 121.8355. The county, 183.35 school district, and mental health entities may include other 183.36 entities at their discretion. The membership of a board 184.1 established under this paragraph, in addition to members of the 184.2 governing bodies of the participating governmental units, must 184.3 include the representation provided by section 245.493, 184.4 subdivision 1. 184.5 Sec. 17. Minnesota Statutes 1996, section 626.556, 184.6 subdivision 10b, is amended to read: 184.7 Subd. 10b. [DUTIES OF COMMISSIONER; NEGLECT OR ABUSE IN A 184.8 FACILITY.] (a) The commissioner shall immediately investigate if 184.9 the report alleges that: 184.10 (1) a child who is in the care of a facility as defined in 184.11 subdivision 2 is neglected, physically abused, or sexually 184.12 abused by an individual in that facility, or has been so 184.13 neglected or abused by an individual in that facility within the 184.14 three years preceding the report; or 184.15 (2) a child was neglected, physically abused, or sexually 184.16 abused by an individual in a facility defined in subdivision 2, 184.17 while in the care of that facility within the three years 184.18 preceding the report. 184.19 The commissioner shall arrange for the transmittal to the 184.20 commissioner of reports received by local agencies and may 184.21 delegate to a local welfare agency the duty to investigate 184.22 reports. In conducting an investigation under this section, the 184.23 commissioner has the powers and duties specified for local 184.24 welfare agencies under this section. The commissioner or local 184.25 welfare agency may interview any children who are or have been 184.26 in the care of a facility under investigation and their parents, 184.27 guardians, or legal custodians. 184.28 (b) Prior to any interview, the commissioner or local 184.29 welfare agency shall notify the parent, guardian, or legal 184.30 custodian of a child who will be interviewed in the manner 184.31 provided for in subdivision 10d, paragraph (a). If reasonable 184.32 efforts to reach the parent, guardian, or legal custodian of a 184.33 child in an out-of-home placement have failed, the child may be 184.34 interviewed if there is reason to believe the interview is 184.35 necessary to protect the child or other children in the 184.36 facility. The commissioner or local agency must provide the 185.1 information required in this subdivision to the parent, 185.2 guardian, or legal custodian of a child interviewed without 185.3 parental notification as soon as possible after the interview. 185.4 When the investigation is completed, any parent, guardian, or 185.5 legal custodian notified under this subdivision shall receive 185.6 the written memorandum provided for in subdivision 10d, 185.7 paragraph (c). 185.8 (c) In conducting investigations under this subdivision the 185.9 commissioner or local welfare agency shall obtain access to 185.10 information consistent with subdivision 10, paragraphs (h), (i), 185.11 and (j). 185.12 (d) Except for foster care and family child care, the 185.13 commissioner has the primary responsibility for the 185.14 investigations and notifications required under subdivisions 10d 185.15 and 10f for reports that allege maltreatment related to the care 185.16 provided by or in facilities licensed by the commissioner. The 185.17 commissioner may request assistance from the local social 185.18 service agency. 185.19 Sec. 18. Minnesota Statutes 1996, section 626.556, 185.20 subdivision 10d, is amended to read: 185.21 Subd. 10d. [NOTIFICATION OF NEGLECT OR ABUSE IN A 185.22 FACILITY.] (a) When a report is received that alleges neglect, 185.23 physical abuse, or sexual abuse of a child while in the care of 185.24 a facility required to be licensed pursuant tosections 245A.01185.25to 245A.16chapter 245A, the commissioner or local welfare 185.26 agency investigating the report shall provide the following 185.27 information to the parent, guardian, or legal custodian of a 185.28 child alleged to have been neglected, physically abused, or 185.29 sexually abused: the name of the facility; the fact that a 185.30 report alleging neglect, physical abuse, or sexual abuse of a 185.31 child in the facility has been received; the nature of the 185.32 alleged neglect, physical abuse, or sexual abuse; that the 185.33 agency is conducting an investigation; any protective or 185.34 corrective measures being taken pending the outcome of the 185.35 investigation; and that a written memorandum will be provided 185.36 when the investigation is completed. 186.1 (b) The commissioner or local welfare agency may also 186.2 provide the information in paragraph (a) to the parent, 186.3 guardian, or legal custodian of any other child in the facility 186.4 if the investigative agency knows or has reason to believe the 186.5 alleged neglect, physical abuse, or sexual abuse has occurred. 186.6 In determining whether to exercise this authority, the 186.7 commissioner or local welfare agency shall consider the 186.8 seriousness of the alleged neglect, physical abuse, or sexual 186.9 abuse; the number of children allegedly neglected, physically 186.10 abused, or sexually abused; the number of alleged perpetrators; 186.11 and the length of the investigation. The facility shall be 186.12 notified whenever this discretion is exercised. 186.13 (c) When the commissioner or local welfare agency has 186.14 completed its investigation, every parent, guardian, or legal 186.15 custodian notified of the investigation by the commissioner or 186.16 local welfare agency shall be provided with the following 186.17 information in a written memorandum: the name of the facility 186.18 investigated; the nature of the alleged neglect, physical abuse, 186.19 or sexual abuse; the investigator's name; a summary of the 186.20 investigation findings; a statement whether maltreatment was 186.21 found; and the protective or corrective measures that are being 186.22 or will be taken. The memorandum shall be written in a manner 186.23 that protects the identity of the reporter and the child and 186.24 shall not contain the name, or to the extent possible, reveal 186.25 the identity of the alleged perpetrator or of those interviewed 186.26 during the investigation. The commissioner or local welfare 186.27 agency shall also provide the written memorandum to the parent, 186.28 guardian, or legal custodian of each child in the facility if 186.29 maltreatment is determined to exist. 186.30 Sec. 19. Minnesota Statutes 1996, section 626.556, 186.31 subdivision 10e, is amended to read: 186.32 Subd. 10e. [DETERMINATIONS.] Upon the conclusion of every 186.33 assessment or investigation it conducts, the local welfare 186.34 agency shall make two determinations: first, whether 186.35 maltreatment has occurred; and second, whether child protective 186.36 services are needed. When maltreatment is determined in an 187.1 investigation involving a facility, the investigating agency 187.2 shall also determine whether the facility or individual was 187.3 responsible for the maltreatment using the mitigating factors in 187.4 paragraph (d). Determinations under this subdivision must be 187.5 made based on a preponderance of the evidence. 187.6 (a) For the purposes of this subdivision, "maltreatment" 187.7 means any of the following acts or omissions committed by a 187.8 person responsible for the child's care: 187.9 (1) physical abuse as defined in subdivision 2, paragraph 187.10 (d); 187.11 (2) neglect as defined in subdivision 2, paragraph (c); 187.12 (3) sexual abuse as defined in subdivision 2, paragraph 187.13 (a); or 187.14 (4) mental injury as defined in subdivision 2, paragraph 187.15 (k). 187.16 (b) For the purposes of this subdivision, a determination 187.17 that child protective services are needed means that the local 187.18 welfare agency has documented conditions during the assessment 187.19 or investigation sufficient to cause a child protection worker, 187.20 as defined in section 626.559, subdivision 1, to conclude that a 187.21 child is at significant risk of maltreatment if protective 187.22 intervention is not provided and that the individuals 187.23 responsible for the child's care have not taken or are not 187.24 likely to take actions to protect the child from maltreatment or 187.25 risk of maltreatment. 187.26 (c) This subdivision does not mean that maltreatment has 187.27 occurred solely because the child's parent, guardian, or other 187.28 person responsible for the child's care in good faith selects 187.29 and depends upon spiritual means or prayer for treatment or care 187.30 of disease or remedial care of the child, in lieu of medical 187.31 care. However, if lack of medical care may result in serious 187.32 danger to the child's health, the local welfare agency may 187.33 ensure that necessary medical services are provided to the child. 187.34 (d) When determining whether the facility or individual is 187.35 the responsible party for determined maltreatment in a facility, 187.36 the investigating agency shall consider at least the following 188.1 mitigating factors: 188.2 (1) whether the actions of the facility or the individual 188.3 caregivers were in accordance with, and followed the terms of, 188.4 an erroneous physician order, prescription, individual care 188.5 plan, or directive; however, this is not a mitigating factor 188.6 when the facility or caregiver was responsible for the issuance 188.7 of the erroneous order, prescription, individual care plan, or 188.8 directive or knew or should have known of the errors and took no 188.9 reasonable measures to correct the defect before administering 188.10 care; 188.11 (2) comparative responsibility between the facility, other 188.12 caregivers, and requirements placed upon an employee, including 188.13 the facility's compliance with related regulatory standards and 188.14 the adequacy of facility policies and procedures, facility 188.15 training, an individual's participation in the training, the 188.16 caregiver's supervision, and facility staffing levels and the 188.17 scope of the individual employee's authority and discretion; and 188.18 (3) whether the facility or individual followed 188.19 professional standards in exercising professional judgment. 188.20 Sec. 20. Minnesota Statutes 1996, section 626.556, 188.21 subdivision 10f, is amended to read: 188.22 Subd. 10f. [NOTICE OF DETERMINATIONS.] Within ten working 188.23 days of the conclusion of an assessment, the local welfare 188.24 agency shall notify the parent or guardian of the child, the 188.25 person determined to be maltreating the child, and if 188.26 applicable, the director of the facility, of the determination 188.27 and a summary of the specific reasons for the determination. 188.28 The notice must also include a certification that the 188.29 information collection procedures under subdivision 10, 188.30 paragraphs (h), (i), and (j), were followed and a notice of the 188.31 right of a data subject to obtain access to other private data 188.32 on the subject collected, created, or maintained under this 188.33 section. In addition, the notice shall include the length of 188.34 time that the records will be kept under subdivision 11c. When 188.35 there is no determination of either maltreatment or a need for 188.36 services, the notice shall also include the alleged 189.1 perpetrator's right to have the records destroyed. The 189.2 investigating agency shall notify the designee of the child who 189.3 is the subject of the report, and any person or facility 189.4 determined to have maltreated a child, of their appeal rights 189.5 under this section. 189.6 Sec. 21. Minnesota Statutes 1996, section 626.556, is 189.7 amended by adding a subdivision to read: 189.8 Subd. 10i. [ADMINISTRATIVE RECONSIDERATION OF THE FINAL 189.9 DETERMINATION OF MALTREATMENT.] (a) An individual or facility 189.10 that the commissioner or a local social service agency 189.11 determines has maltreated a child, or the child's designee, 189.12 regardless of the determination, who contests the investigating 189.13 agency's final determination regarding maltreatment, may request 189.14 the investigating agency to reconsider its final determination 189.15 regarding maltreatment. The request for reconsideration must be 189.16 submitted in writing to the investigating agency within 15 189.17 calendar days after receipt of notice of the final determination 189.18 regarding maltreatment. 189.19 (b) If the investigating agency denies the request or fails 189.20 to act upon the request within 15 calendar days after receiving 189.21 the request for reconsideration, the person or facility entitled 189.22 to a fair hearing under section 256.045 may submit to the 189.23 commissioner of human services a written request for a hearing 189.24 under that section. 189.25 (c) If, as a result of the reconsideration, the 189.26 investigating agency changes the final determination of 189.27 maltreatment, it shall notify the parties specified in 189.28 subdivisions 10b, 10d, and 10f. 189.29 Sec. 22. Minnesota Statutes 1996, section 626.556, 189.30 subdivision 11c, is amended to read: 189.31 Subd. 11c. [WELFARE, COURT SERVICES AGENCY, AND SCHOOL 189.32 RECORDS MAINTAINED.] Notwithstanding sections 138.163 and 189.33 138.17, records maintained or records derived from reports of 189.34 abuse by local welfare agencies, court services agencies, or 189.35 schools under this section shall be destroyed as provided in 189.36 paragraphs (a) to (d) by the responsible authority. 190.1 (a) If upon assessment or investigation there is no 190.2 determination of maltreatment or the need for child protective 190.3 services, the records may be maintained for a period of four 190.4 years. After the individual alleged to have maltreated a child 190.5 is notified under subdivision 10f of the determinations at the 190.6 conclusion of the assessment or investigation, upon that 190.7 individual's request, records shall be destroyed within 30 190.8 days or after the appeal rights under subdivision 10i have been 190.9 concluded, whichever is later. 190.10 (b) All records relating to reports which, upon assessment 190.11 or investigation, indicate either maltreatment or a need for 190.12 child protective services shall be maintained for at least ten 190.13 years after the date of the final entry in the case record. 190.14 (c) All records regarding a report of maltreatment, 190.15 including any notification of intent to interview which was 190.16 received by a school under subdivision 10, paragraph (d), shall 190.17 be destroyed by the school when ordered to do so by the agency 190.18 conducting the assessment or investigation. The agency shall 190.19 order the destruction of the notification when other records 190.20 relating to the report under investigation or assessment are 190.21 destroyed under this subdivision. 190.22 (d) Private or confidential data released to a court 190.23 services agency under subdivision 10h must be destroyed by the 190.24 court services agency when ordered to do so by the local welfare 190.25 agency that released the data. The local welfare agency shall 190.26 order destruction of the data when other records relating to the 190.27 assessment or investigation are destroyed under this subdivision. 190.28 Sec. 23. Minnesota Statutes 1996, section 626.558, 190.29 subdivision 1, is amended to read: 190.30 Subdivision 1. [ESTABLISHMENT OF THE TEAM.] A county shall 190.31 establish a multidisciplinary child protection team that may 190.32 include, but not be limited to, the director of the local 190.33 welfare agency or designees, the county attorney or designees, 190.34 the county sheriff or designees, representatives of health and 190.35 education, representatives of mental health or other appropriate 190.36 human service or community-based agencies, and parent groups. 191.1 As used in this section, a "community-based agency" may include, 191.2 but is not limited to, schools, social service agencies, family 191.3 service and mental health collaboratives, early childhood and 191.4 family education programs, Head Start, or other agencies serving 191.5 children and families. 191.6 Sec. 24. Minnesota Statutes 1996, section 626.558, 191.7 subdivision 2, is amended to read: 191.8 Subd. 2. [DUTIES OF TEAM.] A multidisciplinary child 191.9 protection team may provide public and professional education, 191.10 develop resources for prevention, intervention, and treatment, 191.11 and provide case consultation to the local welfare agencyto191.12better enable the agency to carry out its child protection191.13functions under section 626.556 and the community social191.14services act.or other interested community-based agencies. The 191.15 community-based agencies may request case consultation from the 191.16 multidisciplinary child protection team regarding a child or 191.17 family for whom the community-based agency is providing 191.18 services. As used in this section, "case consultation" means a 191.19 case review process in which recommendations are made concerning 191.20 services to be provided to the identified children and family. 191.21 Case consultation may be performed by a committee or 191.22 subcommittee of members representing human services, including 191.23 mental health and chemical dependency; law enforcement, 191.24 including probation and parole; the county attorney; health 191.25 care; education; community-based agencies and other necessary 191.26 agencies; and persons directly involved in an individual case as 191.27 designated by other members performing case consultation. 191.28 Sec. 25. Minnesota Statutes 1996, section 626.559, 191.29 subdivision 5, is amended to read: 191.30 Subd. 5. [TRAININGREVENUE.] The commissioner of human 191.31 services shall add the following funds to the funds appropriated 191.32 under section 626.5591, subdivision 2, to develop and support 191.33 training: 191.34 (a) The commissioner of human services shall submit claims 191.35 for federal reimbursement earned through the activities and 191.36 services supported through department of human services child 192.1 protection or child welfare training funds. Federal revenue 192.2 earned must be used to improve and expand training services by 192.3 the department. The department expenditures eligible for 192.4 federal reimbursement under this section must not be made from 192.5 federal funds or funds used to match other federal funds. 192.6 (b) Each year, the commissioner of human services shall 192.7 withhold from funds distributed to each county under Minnesota 192.8 Rules, parts 9550.0300 to 9550.0370, an amount equivalent to 1.5 192.9 percent of each county's annual Title XX allocation under 192.10 section 256E.07. The commissioner must use these funds to 192.11 ensure decentralization of training. 192.12 (c) The federal revenueearnedunder this subdivision is 192.13 available for these purposes until the funds are expended. 192.14 Sec. 26. [EVALUATION REPORT REQUIRED.] 192.15 The commissioner shall report the results of the evaluation 192.16 required under section 5 to the chairs of the house and senate 192.17 health and human services policy committees by January 1, 1999. 192.18 Sec. 27. [UNIFORM CONTRIBUTION SCHEDULE FOR OUT-OF-HOME 192.19 PLACEMENT; REPORT.] 192.20 The commissioner of human services shall prepare 192.21 recommendations and report to the 1998 legislature regarding a 192.22 uniform relative contribution schedule to reimburse costs 192.23 associated with out-of-home placement. The commissioner shall 192.24 use the child support guidelines in Minnesota Statutes, chapter 192.25 518, as the basis for the uniform contribution schedule. The 192.26 recommendations and report are due December 1, 1997. 192.27 Sec. 28. [MALTREATMENT OF MINORS ADVISORY COMMITTEE.] 192.28 The commissioner of human services, with the cooperation of 192.29 the commissioners of health and children, families, and learning 192.30 and the attorney general, shall establish an advisory committee 192.31 to review the Maltreatment of Minors Act, Minnesota Statutes, 192.32 section 626.556, to determine whether existing state policy and 192.33 procedures for protecting children who are at risk of 192.34 maltreatment in the home, school, or community are effective. 192.35 The committee shall include consumers, advocacy and 192.36 provider organizations, county practitioners and administrators, 193.1 school districts, law enforcement agencies, communities of 193.2 color, professional associations, labor organizations, office of 193.3 the ombudsman for mental health and mental retardation, and the 193.4 commissioners of health, human services, and children, families, 193.5 and learning. 193.6 In making recommendations, the advisory committee shall 193.7 review all services and protections available under existing 193.8 state and federal laws with the focus on eliminating duplication 193.9 of effort among various local, state, and federal agencies and 193.10 minimizing possible conflicts of interest by establishing a 193.11 statewide process of coordination of responsibilities. The 193.12 advisory committee shall submit a report to the legislature by 193.13 February 15, 1998, that includes a detailed plan with specific 193.14 law, rule, or administrative procedure changes to implement the 193.15 recommendations. 193.16 ARTICLE 6 193.17 CHILD SUPPORT ENFORCEMENT 193.18 Section 1. Minnesota Statutes 1996, section 13.46, 193.19 subdivision 2, is amended to read: 193.20 Subd. 2. [GENERAL.] (a) Unless the data is summary data or 193.21 a statute specifically provides a different classification, data 193.22 on individuals collected, maintained, used, or disseminated by 193.23 the welfare system is private data on individuals, and shall not 193.24 be disclosed except: 193.25 (1)pursuantaccording to section 13.05; 193.26 (2)pursuantaccording to court order; 193.27 (3)pursuantaccording to a statute specifically 193.28 authorizing access to the private data; 193.29 (4) to an agent of the welfare system, including a law 193.30 enforcement person, attorney, or investigator acting for it in 193.31 the investigation or prosecution of a criminal or civil 193.32 proceeding relating to the administration of a program; 193.33 (5) to personnel of the welfare system who require the data 193.34 to determine eligibility, amount of assistance, and the need to 193.35 provide services of additional programs to the individual; 193.36 (6) to administer federal funds or programs; 194.1 (7) between personnel of the welfare system working in the 194.2 same program; 194.3 (8) the amounts of cash public assistance and relief paid 194.4 to welfare recipients in this state, including their names, 194.5 social security numbers, income, addresses, and other data as 194.6 required, upon request by the department of revenue to 194.7 administer the property tax refund law, supplemental housing 194.8 allowance, early refund of refundable tax credits, and the 194.9 income tax. "Refundable tax credits" means the dependent care 194.10 credit under section 290.067, the Minnesota working family 194.11 credit under section 290.0671, the property tax refund under 194.12 section 290A.04, and, if the required federal waiver or waivers 194.13 are granted, the federal earned income tax credit under section 194.14 32 of the Internal Revenue Code; 194.15 (9) to the Minnesota department of economic security for 194.16 the purpose of monitoring the eligibility of the data subject 194.17 for reemployment insurance, for any employment or training 194.18 program administered, supervised, or certified by that agency, 194.19 or for the purpose of administering any rehabilitation program, 194.20 whether alone or in conjunction with the welfare system, and to 194.21 verify receipt of energy assistance for the telephone assistance 194.22 plan; 194.23 (10) to appropriate parties in connection with an emergency 194.24 if knowledge of the information is necessary to protect the 194.25 health or safety of the individual or other individuals or 194.26 persons; 194.27 (11) data maintained by residential programs as defined in 194.28 section 245A.02 may be disclosed to the protection and advocacy 194.29 system established in this statepursuantaccording to Part C of 194.30 Public Law Number 98-527 to protect the legal and human rights 194.31 of persons with mental retardation or other related conditions 194.32 who live in residential facilities for these persons if the 194.33 protection and advocacy system receives a complaint by or on 194.34 behalf of that person and the person does not have a legal 194.35 guardian or the state or a designee of the state is the legal 194.36 guardian of the person; 195.1 (12) to the county medical examiner or the county coroner 195.2 for identifying or locating relatives or friends of a deceased 195.3 person; 195.4 (13) data on a child support obligor who makes payments to 195.5 the public agency may be disclosed to the higher education 195.6 services office to the extent necessary to determine eligibility 195.7 under section 136A.121, subdivision 2, clause (5); 195.8 (14) participant social security numbers and names 195.9 collected by the telephone assistance program may be disclosed 195.10 to the department of revenue to conduct an electronic data match 195.11 with the property tax refund database to determine eligibility 195.12 under section 237.70, subdivision 4a; 195.13 (15) the current address of a recipient of aid to families 195.14 with dependent children may be disclosed to law enforcement 195.15 officers who provide the name and social security number of the 195.16 recipient and satisfactorily demonstrate that: (i) the 195.17 recipient is a fugitive felon, including the grounds for this 195.18 determination; (ii) the location or apprehension of the felon is 195.19 within the law enforcement officer's official duties; and (iii) 195.20 the request is made in writing and in the proper exercise of 195.21 those duties; 195.22 (16) the current address of a recipient of general 195.23 assistance, work readiness, or general assistance medical care 195.24 may be disclosed to probation officers and corrections agents 195.25 who are supervising the recipient, and to law enforcement 195.26 officers who are investigating the recipient in connection with 195.27 a felony level offense; 195.28 (17) information obtained from food stamp applicant or 195.29 recipient households may be disclosed to local, state, or 195.30 federal law enforcement officials, upon their written request, 195.31 for the purpose of investigating an alleged violation of the 195.32 food stamp act, in accordance with Code of Federal Regulations, 195.33 title 7, section 272.1(c); 195.34 (18) data on a child support obligor who is in arrears may 195.35 be disclosed for purposes of publishing the data pursuant to 195.36 section 518.575; 196.1 (19) data on child support payments made by a child support 196.2 obligor may be disclosed to the obligee; 196.3 (20) data in the work reporting system may be disclosed 196.4 under section 256.998, subdivision 7; 196.5 (21) to the department of children, families, and learning 196.6 for the purpose of matching department of children, families, 196.7 and learning student data with public assistance data to 196.8 determine students eligible for free and reduced price meals, 196.9 meal supplements, and free milkpursuantaccording to United 196.10 States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 196.11 and 1773; to produce accurate numbers of students receiving aid 196.12 to families with dependent children as required by section 196.13 124.175; and to allocate federal and state funds that are 196.14 distributed based on income of the student's family;or196.15 (22) the current address and telephone number of program 196.16 recipients and emergency contacts may be released to the 196.17 commissioner of health or a local board of health as defined in 196.18 section 145A.02, subdivision 2, when the commissioner or local 196.19 board of health has reason to believe that a program recipient 196.20 is a disease case, carrier, suspect case, or at risk of illness, 196.21 and the data are necessary to locate the person.; or 196.22 (23) to other agencies, statewide systems, and political 196.23 subdivisions of this state, including the attorney general, and 196.24 agencies of other states, interstate information networks, 196.25 federal agencies, and other entities as required by federal 196.26 regulation or law for the administration of the child support 196.27 enforcement program. 196.28 (b) Information on persons who have been treated for drug 196.29 or alcohol abuse may only be disclosed in accordance with the 196.30 requirements of Code of Federal Regulations, title 42, sections 196.31 2.1 to 2.67. 196.32 (c) Data provided to law enforcement agencies under 196.33 paragraph (a), clause (15), (16), or (17), or paragraph (b), are 196.34 investigative data and are confidential or protected nonpublic 196.35 while the investigation is active. The data are private after 196.36 the investigation becomes inactive under section 13.82, 197.1 subdivision 5, paragraph (a) or (b). 197.2 (d) Mental health data shall be treated as provided in 197.3 subdivisions 7, 8, and 9, but is not subject to the access 197.4 provisions of subdivision 10, paragraph (b). 197.5 Sec. 2. Minnesota Statutes 1996, section 13.99, is amended 197.6 by adding a subdivision to read: 197.7 Subd. 101d. [CHILD SUPPORT PARTIES.] Certain data 197.8 regarding the location of parties in connection with child 197.9 support proceedings are governed by sections 256.87, subdivision 197.10 8; 257.70; and 518.005, subdivision 5. Certain data on newly 197.11 hired employees maintained by the public authority for support 197.12 enforcement are governed by section 256.998. 197.13 Sec. 3. [13B.06] [CHILD SUPPORT OR MAINTENANCE OBLIGOR 197.14 DATA MATCHES.] 197.15 Subdivision 1. [DEFINITIONS.] The definitions in this 197.16 subdivision apply to this section. 197.17 (a) "Account" means a demand deposit account, checking or 197.18 negotiable withdraw order account, savings account, time deposit 197.19 account, or money market mutual fund. 197.20 (b) "Account information" means the type of account, the 197.21 account number, whether the account is singly or jointly owned, 197.22 and, in the case of jointly owned accounts, the name and address 197.23 of the nonobligor account owner if available. 197.24 (c) "Financial institution" means any of the following that 197.25 do business within the state: 197.26 (1) federal or state commercial banks and federal or state 197.27 savings banks, including savings and loan associations and 197.28 cooperative banks; 197.29 (2) federal and state chartered credit unions; 197.30 (3) benefit associations; 197.31 (4) life insurance companies; 197.32 (5) safe deposit companies; and 197.33 (6) money market mutual funds. 197.34 (d) "Obligor" means an individual who is in arrears in 197.35 court-ordered child support or maintenance payments, or both, in 197.36 an amount equal to or greater than three times the obligor's 198.1 total monthly support and maintenance payments, irrespective of 198.2 when the arrears arose, and is not in compliance with a written 198.3 payment agreement regarding both current support and arrearages 198.4 approved by the court, an administrative law judge, or the 198.5 public authority. 198.6 (e) "Public authority" means the public authority 198.7 responsible for child support enforcement. 198.8 Subd. 2. [DATA MATCH SYSTEM ESTABLISHED.] The commissioner 198.9 of human services shall establish a process for the comparison 198.10 of account information data held by financial institutions with 198.11 the public authority's database of child support obligors. The 198.12 commissioner shall inform the financial industry of the 198.13 requirements of this section and the means by which financial 198.14 institutions can comply. The commissioner may contract for 198.15 services to carry out this section. 198.16 Subd. 3. [DUTY TO PROVIDE DATA.] On written request by a 198.17 public authority, a financial institution shall provide to the 198.18 public authority on a quarterly basis the name, address, social 198.19 security number, tax identification number if known, and all 198.20 account information for each obligor who maintains an account at 198.21 the financial institution. 198.22 Subd. 4. [METHOD TO PROVIDE DATA.] (a) To comply with the 198.23 requirements of this section, a financial institution may either: 198.24 (1) provide to the public authority a list of all account 198.25 holders for the public authority to compare against its list of 198.26 child support obligors for the purpose of identifying which 198.27 obligors maintain an account at the financial institution; or 198.28 (2) obtain a list of child support obligors from the public 198.29 authority and compare that data to the data maintained at the 198.30 financial institution to identify which of the identified 198.31 obligors maintains an account at the financial institution. 198.32 (b) A financial institution shall elect either method in 198.33 writing upon written request of the public authority, and the 198.34 election remains in effect unless the public authority agrees in 198.35 writing to a change. 198.36 (c) The commissioner shall keep track of the number of 199.1 financial institutions who are electing to report under 199.2 paragraph (a), clauses (1) and (2), respectively, and shall 199.3 report this information to the legislature by December 1, 1999. 199.4 Subd. 5. [MEANS TO PROVIDE DATA.] A financial institution 199.5 may provide the required data by submitting electronic media in 199.6 a compatible format, delivering, mailing, or telefaxing a copy 199.7 of the data, or by other means authorized by the commissioner of 199.8 human services that will result in timely reporting. 199.9 Subd. 6. [ACCESS TO DATA.] (a) With regard to account 199.10 information on all account holders provided by a financial 199.11 institution under subdivision 4, paragraph (a), clause (1), the 199.12 commissioner of human services shall retain the reported 199.13 information only until the account information is compared 199.14 against the public authority's obligor database. 199.15 Notwithstanding section 138.17, all account information that 199.16 does not pertain to an obligor listed in the public authority's 199.17 database must be immediately discarded, and no retention or 199.18 publication may be made of that data by the public authority. 199.19 All account information that does pertain to an obligor listed 199.20 in the public authority's database must be incorporated into the 199.21 public authority's database. Access to that data is governed by 199.22 chapter 13. 199.23 (b) With regard to data on obligors provided by the public 199.24 authority to a financial institution under subdivision 4, 199.25 paragraph (a), clause (2), the financial institution shall 199.26 retain the reported information only until the financial 199.27 institution's database is compared against the public 199.28 authority's database. All data that does not pertain to an 199.29 account holder at the financial institution must be immediately 199.30 discarded, and no retention or publication may be made of that 199.31 data by the financial institution. 199.32 Subd. 7. [FEES.] A financial institution may charge and 199.33 collect a fee from the public authority for providing account 199.34 information to the public authority. No financial institution 199.35 shall charge or collect a fee that exceeds its actual costs of 199.36 complying with this section. The commissioner, together with an 200.1 advisory group consisting of representatives of the financial 200.2 institutions in the state, shall determine a fee structure that 200.3 minimizes the cost to the state and reasonably meets the needs 200.4 of the financial institutions, and shall report to the chairs of 200.5 the judiciary committees in the house of representatives and the 200.6 senate by February 1, 1998, a recommended fee structure for 200.7 inclusion in this section. 200.8 Subd. 8. [FAILURE TO RESPOND TO REQUEST FOR 200.9 INFORMATION.] The public authority shall send by certified mail 200.10 a written notice of noncompliance to a financial institution 200.11 that fails to respond to a first written request for information 200.12 under this section. The notice of noncompliance must explain 200.13 the requirements of this section and advise the financial 200.14 institution of the penalty for noncompliance. A financial 200.15 institution that receives a second notice of noncompliance is 200.16 subject to a civil penalty of $1,000 for its failure to comply. 200.17 A financial institution that continues to fail to comply with 200.18 this section is subject to a civil penalty of $5,000 for the 200.19 third and each subsequent failure to comply. These penalties 200.20 may be imposed and collected by the public authority. 200.21 A financial institution that has been served with a notice 200.22 of noncompliance and incurs a second or subsequent notice of 200.23 noncompliance has the right to a contested case hearing under 200.24 chapter 14. A financial institution has 20 days from the date 200.25 of the service of the notice of noncompliance to file a request 200.26 for a contested case hearing with the commissioner. The order 200.27 of the administrative law judge constitutes the final decision 200.28 in the case. 200.29 Subd. 9. [IMMUNITY.] A financial institution that provides 200.30 or reasonably attempts to provide information to the public 200.31 authority in compliance with this section is not liable to any 200.32 person for disclosing the information or for taking any other 200.33 action in good faith as authorized by this section or section 200.34 548.092. 200.35 Subd. 10. [CIVIL ACTION FOR UNAUTHORIZED DISCLOSURE BY 200.36 FINANCIAL INSTITUTION.] (a) An account holder may bring a civil 201.1 action in district court against a financial institution for 201.2 unauthorized disclosure of data received from the public 201.3 authority under subdivision 4, paragraph (a), clause (2). A 201.4 financial institution found to have violated this subdivision 201.5 shall be liable as provided in paragraph (b) or (c). 201.6 (b) Any financial institution that willfully and 201.7 maliciously discloses data received from the public authority 201.8 under subdivision 4 is liable to that account holder in an 201.9 amount equal to the sum of: 201.10 (1) any actual damages sustained by the consumer as a 201.11 result of the disclosure; and 201.12 (2) in the case of any successful action to enforce any 201.13 liability under this section, the costs of the action taken and 201.14 reasonable attorney fees as determined by the court. 201.15 (c) Any financial institution that negligently discloses 201.16 data received from the public authority under subdivision 4 is 201.17 liable to that account holder in an amount equal to any actual 201.18 damages sustained by the account holder as a result of the 201.19 disclosure. 201.20 (d) A financial institution may not be held liable in any 201.21 action brought under this subdivision if the financial 201.22 institution shows, by a preponderance of evidence, that the 201.23 disclosure was not intentional and resulted from a bona fide 201.24 error notwithstanding the maintenance of procedures reasonably 201.25 adapted to avoid any error. 201.26 Sec. 4. [256.741] [CHILD SUPPORT AND MAINTENANCE.] 201.27 Subdivision 1. [PUBLIC ASSISTANCE.] (a) The term "public 201.28 assistance" as used in this chapter and chapters 257, 518, and 201.29 518C includes any form of cash assistance provided under Title 201.30 IV-A of the Social Security Act, including child care 201.31 assistance; any form of medical assistance as defined under 201.32 Title XIX of the Social Security Act, including MinnesotaCare; 201.33 and foster care as provided under Title IV-E of the Social 201.34 Security Act. 201.35 (b) The term "child support agency" as used in this section 201.36 refers to the public authority responsible for child support 202.1 enforcement. 202.2 (c) The term "public assistance agency" as used in this 202.3 section refers to any public authority providing public 202.4 assistance to an individual. 202.5 Subd. 2. [ASSIGNMENT OF SUPPORT AND MAINTENANCE 202.6 RIGHTS.] (a) An individual receiving public assistance in the 202.7 form of cash assistance is considered to have assigned to the 202.8 state at the time of application all rights to child support and 202.9 maintenance from any other person the applicant or recipient may 202.10 have in the individual's own behalf or in the behalf of any 202.11 other family member for whom application for public assistance 202.12 is made. An assistance unit is ineligible for aid to families 202.13 with dependent children or its successor program unless the 202.14 caregiver assigns all rights to child support and spousal 202.15 maintenance benefits under this section. 202.16 (1) An assignment made according to this section is 202.17 effective as to: 202.18 (i) any current child support and current spousal 202.19 maintenance; and 202.20 (ii) any accrued child support and spousal maintenance 202.21 arrears. 202.22 (2) An assignment made after September 30, 1997, is 202.23 effective as to: 202.24 (i) any current child support and current spousal 202.25 maintenance; 202.26 (ii) any accrued child support and spousal maintenance 202.27 arrears collected before October 1, 2000; and 202.28 (iii) any accrued child support and spousal maintenance 202.29 arrears collected under federal tax intercept. 202.30 (b) An individual receiving public assistance in the form 202.31 of medical assistance, including MinnesotaCare, is considered to 202.32 have assigned to the state at the time of application all rights 202.33 to medical support from any other person the individual may have 202.34 in the individual's own behalf or in the behalf of any other 202.35 family member for whom medical assistance is provided. 202.36 An assignment made after September 30, 1997, is effective 203.1 as to any medical support accruing after the date of medical 203.2 assistance or MinnesotaCare eligibility. 203.3 (c) An individual receiving public assistance in the form 203.4 of child care assistance under title IV-A of the Social Security 203.5 Act is considered to have assigned to the state at the time of 203.6 application all rights to child care support from any other 203.7 person the individual may have in the individual's own behalf or 203.8 in the behalf of any other family member for whom child care 203.9 assistance is provided. 203.10 An assignment made according to this paragraph is effective 203.11 as to: 203.12 (1) any current child care support and any child care 203.13 support arrears assigned and accruing after the effective date 203.14 of this section that are collected before October 1, 2000; and 203.15 (2) any accrued child care support arrears collected under 203.16 federal tax intercept. 203.17 Subd. 3. [EXISTING ASSIGNMENTS.] All assignments based on 203.18 the receipt of public assistance in existence prior to the 203.19 effective date of this section are permanently assigned to the 203.20 state. 203.21 Subd. 4. [EFFECT OF ASSIGNMENT.] All assignments in this 203.22 section take effect upon a determination that the applicant is 203.23 eligible for public assistance. The amount of support assigned 203.24 under this subdivision cannot exceed the total amount of public 203.25 assistance issued. 203.26 Subd. 5. [COOPERATION WITH CHILD SUPPORT 203.27 ENFORCEMENT.] After notification from a public assistance agency 203.28 that an individual has applied for or is receiving any form of 203.29 public assistance, the child support agency shall determine 203.30 whether the party is cooperating with the agency in establishing 203.31 paternity, child support, modification of an existing child 203.32 support order, or enforcement of an existing child support 203.33 order. The public assistance agency shall notify each applicant 203.34 or recipient in writing of the right to claim a good cause 203.35 exemption from cooperating with the requirements in this 203.36 section. A copy of the notice shall be furnished to the 204.1 applicant or recipient, and the applicant or recipient and a 204.2 representative from the public authority shall acknowledge 204.3 receipt of the notice by signing and dating a copy of the notice. 204.4 The individual shall cooperate with the child support 204.5 agency by: 204.6 (1) providing all known information regarding the alleged 204.7 father or obligor including name, address, social security 204.8 number, telephone number, place of employment or school, and the 204.9 names and addresses of any relatives; 204.10 (2) appearing at interviews, hearings, and legal 204.11 proceedings; 204.12 (3) submitting to genetic tests including genetic testing 204.13 of the child, under a judicial or administrative order; and 204.14 (4) providing additional information known by the 204.15 individual as necessary for cooperating in good faith with the 204.16 child support agency. 204.17 The caregiver of a minor child shall cooperate with the 204.18 efforts of the public authority to collect support according to 204.19 this subdivision. A caregiver shall forward to the public 204.20 authority all support the caregiver receives during the period 204.21 the assignment of support required under section 256.741, 204.22 subdivision 1, is in effect. Support received by a caregiver, 204.23 and not forwarded to the public authority, must be repaid to the 204.24 child support enforcement unit for any month following the date 204.25 on which initial eligibility is determined, except as provided 204.26 under subdivision 8, paragraph (b), clause (4). 204.27 Subd. 6. [DETERMINATION.] If the individual cannot provide 204.28 the information required in subdivision 5, before making a 204.29 determination that the individual is cooperating, the child 204.30 support agency shall make a finding that the individual could 204.31 not reasonably be expected to provide the information. In 204.32 making this finding, the child support agency shall consider: 204.33 (1) the age of the child for whom support is being sought; 204.34 (2) the circumstances surrounding the conception of the 204.35 child; 204.36 (3) the age and mental capacity of the parent or caregiver 205.1 of the child for whom support is being sought; 205.2 (4) the time period that has expired since the parent or 205.3 caregiver of the child for whom support is sought last had 205.4 contact with the alleged father or obligor, or such person's 205.5 relatives; and 205.6 (5) statements from the applicant or recipient or other 205.7 individuals that show evidence of an inability to provide 205.8 correct information about the alleged father or obligor because 205.9 of deception by the alleged father or obligor. 205.10 Subd. 7. [NONCOOPERATION.] Unless good cause is found to 205.11 exist under subdivision 10, upon a determination of 205.12 noncooperation by the child support agency, the agency shall 205.13 promptly notify the individual and each public assistance agency 205.14 providing public assistance to the individual that the 205.15 individual is not cooperating with the child support agency. 205.16 Upon notice of noncooperation, the individual shall be 205.17 sanctioned in the amount determined according to the public 205.18 assistance agency responsible for enforcing the sanction. 205.19 Subd. 8. [REFUSAL TO COOPERATE WITH SUPPORT 205.20 REQUIREMENTS.] (a) Failure by a caregiver to satisfy any of the 205.21 requirements of subdivision 5 constitutes refusal to cooperate, 205.22 and the sanctions under paragraph (b) apply. The IV-D agency 205.23 must determine whether a caregiver has refused to cooperate 205.24 according to the applicable provisions of this section. 205.25 (b) Determination by the IV-D agency that a caregiver has 205.26 refused to cooperate shall have the following effects: 205.27 (1) After adequate notice, the grant of a caregiver who 205.28 refuses to cooperate must be reduced by 25 percent if no other 205.29 sanction is in effect or by an additional ten percent if one 205.30 other sanction is already in effect. 205.31 (2) A caregiver who is not a parent of a minor child in an 205.32 assistance unit may choose to remove the child from the 205.33 assistance unit unless the child is required to be in the 205.34 assistance unit. 205.35 (3) A parental caregiver who refuses to cooperate is 205.36 ineligible for medical assistance. 206.1 (4) Direct support retained by a caregiver must be counted 206.2 as unearned income when determining the amount of the assistance 206.3 payment. 206.4 Subd. 9. [GOOD CAUSE EXEMPTION FROM COOPERATING WITH 206.5 SUPPORT REQUIREMENTS.] The IV-A or IV-D agency must notify the 206.6 caregiver that the caregiver may claim a good cause exemption 206.7 from cooperating with the requirements in subdivision 5. Good 206.8 cause may be claimed and exemptions determined according to 206.9 subdivisions 10 to 13. 206.10 Subd. 10. [GOOD CAUSE EXEMPTION.] (a) Cooperation with the 206.11 child support agency under subdivision 5 is not necessary if the 206.12 individual asserts, and both the child support agency and the 206.13 public assistance agency find, good cause exists under this 206.14 subdivision for failing to cooperate. An individual may request 206.15 a good cause exemption by filing a written claim with the public 206.16 assistance agency on a form provided by the commissioner of 206.17 human services. Upon notification of a claim for good cause 206.18 exemption, the child support agency shall cease all child 206.19 support enforcement efforts until the claim for good cause 206.20 exemption is reviewed and the validity of the claim is 206.21 determined. Designated representatives from public assistance 206.22 agencies and at least one representative from the child support 206.23 enforcement agency shall review each claim for a good cause 206.24 exemption and determine its validity. 206.25 (b) Good cause exists when an individual documents that 206.26 pursuit of child support enforcement services could reasonably 206.27 result in: 206.28 (1) physical or emotional harm to the child for whom 206.29 support is sought; 206.30 (2) physical harm to the parent or caregiver with whom the 206.31 child is living that would reduce the ability to adequately care 206.32 for the child; or 206.33 (3) emotional harm to the parent or caregiver with whom the 206.34 child is living, of such nature or degree that it would reduce 206.35 the person's ability to adequately care for the child. 206.36 The physical and emotional harm under this paragraph must 207.1 be of a serious nature in order to justify a finding of good 207.2 cause exemption. A finding of good cause exemption based on 207.3 emotional harm may only be based upon a demonstration of 207.4 emotional impairment that substantially affects the individual's 207.5 ability to function. 207.6 (c) Good cause also exists when the designated 207.7 representatives in this subdivision believe that pursuing child 207.8 support enforcement would be detrimental to the child for whom 207.9 support is sought and the individual applicant or recipient 207.10 documents any of the following: 207.11 (1) the child for whom child support enforcement is sought 207.12 was conceived as a result of incest or rape; 207.13 (2) legal proceedings for the adoption of the child are 207.14 pending before a court of competent jurisdiction; or 207.15 (3) the parent or caregiver of the child is currently being 207.16 assisted by a public or licensed private social service agency 207.17 to resolve the issues of whether to keep the child or place the 207.18 child for adoption. 207.19 The parent or caregiver's right to claim a good cause 207.20 exemption based solely on this paragraph expires if the 207.21 assistance lasts more than 90 days. 207.22 (d) The public authority shall consider the best interests 207.23 of the child in determining good cause. 207.24 Subd. 11. [PROOF OF GOOD CAUSE.] (a) An individual seeking 207.25 a good cause exemption has 20 days from the date the good cause 207.26 claim was provided to the public assistance agency to supply 207.27 evidence supporting the claim. The public assistance agency may 207.28 extend the time period in this section if it believes the 207.29 individual is cooperating and needs additional time to submit 207.30 the evidence required by this section. Failure to provide such 207.31 evidence shall result in the child support agency resuming child 207.32 support enforcement efforts. 207.33 (b) Evidence supporting a good cause claim includes, but is 207.34 not limited to: 207.35 (1) a birth certificate, or medical or law enforcement 207.36 records indicating that the child was conceived as the result of 208.1 incest or rape; 208.2 (2) court documents or other records indicating that legal 208.3 proceedings for adoption are pending before a court of competent 208.4 jurisdiction; 208.5 (3) court, medical, criminal, child protective services, 208.6 social services, domestic violence advocate services, 208.7 psychological, or law enforcement records indicating that the 208.8 alleged father or obligor might inflict physical or emotional 208.9 harm on the child, parent, or caregiver; 208.10 (4) medical records or written statements from a licensed 208.11 medical professional indicating the emotional health history or 208.12 status of the custodial parent, child, or caregiver, or 208.13 indicating a diagnosis or prognosis concerning their emotional 208.14 health; 208.15 (5) a written statement from a public or licensed private 208.16 social services agency that the individual is deciding whether 208.17 to keep the child or place the child for adoption; or 208.18 (6) sworn statements from individuals other than the 208.19 applicant or recipient that provide evidence supporting the good 208.20 cause claim. 208.21 (c) The child support agency and the public assistance 208.22 agency shall assist an individual in obtaining the evidence in 208.23 this section upon request of the individual. 208.24 Subd. 12. [DECISION.] A good cause exemption shall be 208.25 granted if the individual's claim and the investigation of the 208.26 supporting evidence satisfy the investigating agencies that the 208.27 individual has good cause for refusing to cooperate. 208.28 Subd. 13. [DURATION.] A good cause exemption shall not 208.29 continue for more than one year without redetermination of 208.30 cooperation and good cause pursuant to this section. The child 208.31 support agency may redetermine cooperation and the designated 208.32 representatives in subdivision 10 may redetermine the granting 208.33 of a good cause exemption before the one-year expiration in this 208.34 subdivision. 208.35 A good cause exemption must be allowed under subsequent 208.36 applications and redeterminations without additional evidence 209.1 when the factors which led to the exemption continue to exist. 209.2 A good cause exemption must end when the factors that led to the 209.3 exemption have changed. 209.4 Sec. 5. Minnesota Statutes 1996, section 256.87, 209.5 subdivision 1, is amended to read: 209.6 Subdivision 1. [ACTIONS AGAINST PARENTS FOR ASSISTANCE 209.7 FURNISHED.] A parent of a child is liable for the amount of 209.8 assistance furnishedunder sections 256.031 to 256.0361, 256.72209.9to 256.87, orunder Title IV-A or IV-E of the Social Security 209.10 Act or medical assistance underchapter 256, 256B, or 256DTitle 209.11 XIX of the Social Security Act to and for the benefit of the 209.12 child, including any assistance furnished for the benefit of the 209.13 caretaker of the child, which the parent has had the ability to 209.14 pay. Ability to pay must be determined according to chapter 209.15 518. The parent's liability is limited to the two years 209.16 immediately preceding the commencement of the action, except 209.17 that where child support has been previously ordered, the state 209.18 or county agency providing the assistance, as assignee of the 209.19 obligee, shall be entitled to judgments for child support 209.20 payments accruing within ten years preceding the date of the 209.21 commencement of the action up to the full amount of assistance 209.22 furnished. The action may be ordered by the state agency or 209.23 county agency and shall be brought in the name of the countyby209.24the county attorney of the county in which the assistance was209.25granted,orbyin the name of the state agency against the 209.26 parent for the recovery of the amount of assistance granted, 209.27 together with the costs and disbursements of the action. 209.28 Sec. 6. Minnesota Statutes 1996, section 256.87, 209.29 subdivision 1a, is amended to read: 209.30 Subd. 1a. [CONTINUING SUPPORT CONTRIBUTIONS.] In addition 209.31 to granting the county or state agency a money judgment, the 209.32 court may, upon a motion or order to show cause, order 209.33 continuing support contributions by a parent found able to 209.34 reimburse the county or state agency. The order shall be 209.35 effective for the period of time during which the recipient 209.36 receives public assistance from any county or state agency and 210.1 thereafter. The order shall require support according to 210.2 chapter 518. An order for continuing contributions is 210.3 reinstated without further hearing upon notice to the parent by 210.4 any county or state agency that assistance is again being 210.5 provided for the child of the parentunder sections 256.031 to210.6256.0361, 256.72 to 256.87, orunder Title IV-A or IV-E of the 210.7 Social Security Act or medical assistance underchapter 256,210.8256B, or 256DTitle XIX of the Social Security Act. The notice 210.9 shall be in writing and shall indicate that the parent may 210.10 request a hearing for modification of the amount of support or 210.11 maintenance. 210.12 Sec. 7. Minnesota Statutes 1996, section 256.87, 210.13 subdivision 3, is amended to read: 210.14 Subd. 3. [CONTINUING CONTRIBUTIONS TO FORMER RECIPIENT.] 210.15 The order for continuing support contributions shall remain in 210.16 effect following the period after public assistance granted 210.17 undersections 256.72 to 256.87Title IV-A or IV-E of the Social 210.18 Security Act is terminated unless the former recipient files an 210.19 affidavit with the court requesting termination of the order. 210.20 Sec. 8. Minnesota Statutes 1996, section 256.87, 210.21 subdivision 5, is amended to read: 210.22 Subd. 5. [CHILD NOT RECEIVING ASSISTANCE.] A person or 210.23 entity having physical custody of a dependent child not 210.24 receiving public assistanceunder sections 256.031 to 256.0361,210.25or 256.72 to 256.87as defined in section 256.741 has a cause of 210.26 action for child support against the child'sabsentnoncustodial 210.27 parents. Upon a motion served on theabsentnoncustodial 210.28 parent, the court shall order child support payments, including 210.29 medical support and child care support, from the 210.30absentnoncustodial parent under chapter 518.The absentA 210.31 noncustodial parent's liability may include up to the two years 210.32 immediately preceding the commencement of the action. This 210.33 subdivision applies only if the person or entity has physical 210.34 custody with the consent of a custodial parent or approval of 210.35 the court. 210.36 Sec. 9. Minnesota Statutes 1996, section 256.87, is 211.1 amended by adding a subdivision to read: 211.2 Subd. 8. [DISCLOSURE PROHIBITED.] Notwithstanding 211.3 statutory or other authorization for the public authority to 211.4 release private data on the location of a party to the action, 211.5 information on the location of one party may not be released to 211.6 the other party by the public authority if: 211.7 (1) the public authority has knowledge that a protective 211.8 order with respect to the other party has been entered; or 211.9 (2) the public authority has reason to believe that the 211.10 release of the information may result in physical or emotional 211.11 harm to the other party. 211.12 Sec. 10. Minnesota Statutes 1996, section 256.978, 211.13 subdivision 1, is amended to read: 211.14 Subdivision 1. [REQUEST FOR INFORMATION.] Thecommissioner211.15of human servicespublic authority responsible for child support 211.16 in this state or any other state, in order to locate a person to 211.17 establish paternity,and child support or to modify or enforce 211.18 child support,or to enforce a child support obligation in211.19arrears,may request information reasonably necessary to the 211.20 inquiry from the records of all departments, boards, bureaus, or 211.21 other agencies of this state, which shall, notwithstanding the 211.22 provisions of section 268.12, subdivision 12, or any other law 211.23 to the contrary, provide the information necessary for this 211.24 purpose. Employers, utility companies, insurance companies, 211.25 financial institutions, and labor associations doing business in 211.26 this state shall provide information as provided under 211.27 subdivision 2 upon written or electronic request by an agency 211.28 responsible for child support enforcement regarding individuals 211.29 owing or allegedly owing a duty to support within 30 days ofthe211.30receiptservice of thewrittenrequest made by the public 211.31 authority. Information requested and used or transmitted by the 211.32 commissionerpursuantaccording to the authority conferred by 211.33 this section may be made availableonly to public officials and211.34agencies of this state and its political subdivisions and other211.35states of the union and their political subdivisions who are211.36seeking to enforce the support liability of parents or to locate212.1parents. The commissioner may not release the information to an212.2agency or political subdivision of another state unless the212.3agency or political subdivision is directed to maintain the data212.4consistent with its classification in this state. Information212.5obtained under this section may not be released except to the212.6extent necessary for the administration of the child support212.7enforcement program or when otherwise authorized by law.to 212.8 other agencies, statewide systems, and political subdivisions of 212.9 this state, and agencies of other states, interstate information 212.10 networks, federal agencies, and other entities as required by 212.11 federal regulation or law for the administration of the child 212.12 support enforcement program. 212.13 For purposes of this section, "state" includes the District 212.14 of Columbia, Puerto Rico, the United States Virgin Islands, and 212.15 any territory or insular possession subject to the jurisdiction 212.16 of the United States. 212.17 Sec. 11. Minnesota Statutes 1996, section 256.978, 212.18 subdivision 2, is amended to read: 212.19 Subd. 2. [ACCESS TO INFORMATION.] (a) Awrittenrequest 212.20 for information by the public authority responsible for child 212.21 support of this state or any other state may be made to: 212.22 (1) employers when there is reasonable cause to believe 212.23 that the subject of the inquiry is or was an employee or 212.24 independent contractor of the employer. Information to be 212.25 released by employers is limited to place of residence, 212.26 employment status, wage or payment information, benefit 212.27 information, and social security number; 212.28 (2) utility companies when there is reasonable cause to 212.29 believe that the subject of the inquiry is or was a retail 212.30 customer of the utility company. Customer information to be 212.31 released by utility companies is limited to place of residence, 212.32 home telephone, work telephone, source of income, employer and 212.33 place of employment, and social security number; 212.34 (3) insurance companies when there isan arrearage of child212.35support and there isreasonable cause to believe that the 212.36 subject of the inquiry is or was receiving funds either in the 213.1 form of a lump sum or periodic payments. Information to be 213.2 released by insurance companies is limited to place of 213.3 residence, home telephone, work telephone, employer, social 213.4 security number, and amounts and type of payments made to the 213.5 subject of the inquiry; 213.6 (4) labor organizations when there is reasonable cause to 213.7 believe that the subject of the inquiry is or was a member of 213.8 the labor association. Information to be released by labor 213.9 associations is limited to place of residence, home telephone, 213.10 work telephone, social security number, and current and past 213.11 employment information; and 213.12 (5) financial institutions whenthere is an arrearage of213.13child support andthere is reasonable cause to believe that the 213.14 subject of the inquiry has or has had accounts, stocks, loans, 213.15 certificates of deposits, treasury bills, life insurance 213.16 policies, or other forms of financial dealings with the 213.17 institution. Information to be released by the financial 213.18 institution is limited to place of residence, home telephone, 213.19 work telephone, identifying information on the type of financial 213.20 relationships, social security number, current value of 213.21 financial relationships, and current indebtedness of the subject 213.22 with the financial institution. 213.23 (b) For purposes of this subdivision, utility companies 213.24 include telephone companies, radio common carriers, and 213.25 telecommunications carriers as defined in section 237.01, and 213.26 companies that provide electrical, telephone, natural gas, 213.27 propane gas, oil, coal, or cable television services to retail 213.28 customers. The term financial institution includes banks, 213.29 savings and loans, credit unions, brokerage firms, mortgage 213.30 companies,andinsurance companies., benefit associations, safe 213.31 deposit companies, money market mutual funds, or similar 213.32 entities authorized to do business in the state. 213.33 Sec. 12. Minnesota Statutes 1996, section 256.9792, 213.34 subdivision 1, is amended to read: 213.35 Subdivision 1. [ARREARAGE COLLECTIONS.] Arrearage 213.36 collection projects are created to increase the revenue to the 214.1 state and counties, reduceAFDCpublic assistance expenditures 214.2 for former public assistance cases, and increase payments of 214.3 arrearages to persons who are not receiving public assistance by 214.4 submitting cases for arrearage collection to collection 214.5 entities, including but not limited to, the department of 214.6 revenue and private collection agencies. 214.7 Sec. 13. Minnesota Statutes 1996, section 256.9792, 214.8 subdivision 2, is amended to read: 214.9 Subd. 2. [DEFINITIONS.] (a) The definitions in this 214.10 subdivision apply to this section: 214.11 (b) "Public assistance arrearage case" means a case where 214.12 current support may be due, no payment, with the exception of 214.13 tax offset, has been made within the last 90 days, and the 214.14 arrearages are assigned to the public agencypursuantaccording 214.15 to section256.74, subdivision 5256.741. 214.16 (c) "Public authority" means the public authority 214.17 responsible for child support enforcement. 214.18 (d) "Nonpublic assistance arrearage case" means a support 214.19 case where arrearages have accrued that have not been assigned 214.20pursuantaccording to section256.74, subdivision 5256.741. 214.21 Sec. 14. Minnesota Statutes 1996, section 256.998, 214.22 subdivision 1, is amended to read: 214.23 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 214.24 subdivision apply to this section. 214.25 (b) "Date of hiring" means the earlier of: (1) the first 214.26 day for which an employee is owed compensation by an employer; 214.27 or (2) the first day that an employee reports to work or 214.28 performs labor or services for an employer. 214.29 (c) "Earnings" means payment owed by an employer for labor 214.30 or services rendered by an employee. 214.31 (d) "Employee" means a person who resides or works in 214.32 Minnesotaand, performs services for compensation, in whatever 214.33 form, for an employer and satisfies the criteria of an employee 214.34 under chapter 24 of the Internal Revenue Code. Employee does 214.35 not include: 214.36 (1) persons hired for domestic service in the private home 215.1 of the employer, as defined in the Federal Tax Code.; or 215.2 (2) an employee of the federal or state agency performing 215.3 intelligence or counterintelligence functions, if the head of 215.4 such agency has determined that reporting according to this law 215.5 would endanger the safety of the employee or compromise an 215.6 ongoing investigation or intelligence mission. 215.7 (e) "Employer" means a person or entity located or doing 215.8 business in this state that employs one or more employees for 215.9 payment, and satisfies the criteria of an employer under chapter 215.10 24 of the Internal Revenue Code. Employer includes a labor 215.11 organization as defined in paragraph (g). Employer also 215.12 includes the state, political or other governmental subdivisions 215.13 of the state, and the federal government. 215.14 (f) "Hiring" means engaging a person to perform services 215.15 for compensation and includes the reemploying or return to work 215.16 of any previous employee who was laid off, furloughed, 215.17 separated, granted a leave without pay, or terminated from 215.18 employment. 215.19 (g) "Labor organization" means entities located or doing 215.20 business in this state that meet the criteria of labor 215.21 organization under section 2(5) of the National Labor Relations 215.22 Act. This includes any entity, that may also be known as a 215.23 hiring hall, used to carry out requirements described in chapter 215.24 7 of the National Labor Relations Act. 215.25 (h) "Payor" means a person or entity located or doing 215.26 business in Minnesota who pays money to an independent 215.27 contractor according to an agreement for the performance of 215.28 services. 215.29 Sec. 15. Minnesota Statutes 1996, section 256.998, 215.30 subdivision 6, is amended to read: 215.31 Subd. 6. [SANCTIONS.] If an employer fails to report under 215.32 this section, the commissioner of human services, by certified 215.33 mail, shall send the employer a written notice of noncompliance 215.34 requesting that the employer comply with the reporting 215.35 requirements of this section. The notice of noncompliance must 215.36 explain the reporting procedure under this section and advise 216.1 the employer of the penalty for noncompliance. An employer who 216.2 has received a notice of noncompliance and later incurs a second 216.3 violation is subject to a civil penalty of$50$25 for each 216.4 intentionally unreported employee. An employer who has received 216.5 a notice of noncomplianceand later incurs a third or subsequent216.6violationis subject to a civil penalty of $500 for each 216.7 intentionally unreported employee., if noncompliance is the 216.8 result of a conspiracy between an employer and an employee not 216.9 to supply the required report or to supply a false or incomplete 216.10 report. These penalties may be imposed and collected by the 216.11 commissioner of human services. An employer who has been served 216.12 with a notice of noncompliance and incurs a second or subsequent 216.13 notice of noncompliance, has the right to a contested case 216.14 hearing according to chapter 14. An employer has 20 days from 216.15 the date of service of the notice of noncompliance, to file a 216.16 request for a contested case hearing with the commissioner. The 216.17 order of the administrative law judge constitutes the final 216.18 decision in the case. 216.19 Sec. 16. Minnesota Statutes 1996, section 256.998, 216.20 subdivision 7, is amended to read: 216.21 Subd. 7. [ACCESS TO DATA.] The commissioner of human 216.22 services shall retain the information reported to the work 216.23 reporting system for a period of six months. Data in the work 216.24 reporting system may be disclosed to the public authority 216.25 responsible for child support enforcement, federal agencies,and216.26 state and local agencies of other states for the purposes of 216.27 enforcing state and federal laws governing child support., and 216.28 agencies responsible for the administration of programs under 216.29 Title IV-A of the Social Security Act, the department of 216.30 economic security, and the department of labor and industry. 216.31 Sec. 17. Minnesota Statutes 1996, section 256.998, is 216.32 amended by adding a subdivision to read: 216.33 Subd. 10. [USE OF WORK REPORTING SYSTEM INFORMATION IN 216.34 DETERMINING ELIGIBILITY FOR PUBLIC ASSISTANCE PROGRAMS.] The 216.35 commissioner of human services is authorized to use information 216.36 from the work reporting system to determine eligibility for 217.1 applicants and recipients of public assistance programs 217.2 administered by the department of human services. Data 217.3 including names, dates of birth, and social security numbers of 217.4 people applying for or receiving public assistance benefits will 217.5 be compared to the work reporting system information to 217.6 determine if applicants or recipients of public assistance are 217.7 employed. County agencies will be notified of discrepancies in 217.8 information obtained from the work reporting system. 217.9 Sec. 18. Minnesota Statutes 1996, section 256.998, is 217.10 amended by adding a subdivision to read: 217.11 Subd. 11. [ACTION ON INFORMATION.] Upon receipt of the 217.12 discrepant information, county agencies will notify clients of 217.13 the information and request verification of employment status 217.14 and earnings. County agencies must attempt to resolve the 217.15 discrepancy within 45 days of receipt of the information. 217.16 Sec. 19. Minnesota Statutes 1996, section 256.998, is 217.17 amended by adding a subdivision to read: 217.18 Subd. 12. [CLIENT NOTIFICATION.] Persons applying for 217.19 public assistance programs administered by the department of 217.20 human services will be notified at the time of application that 217.21 data including their name, date of birth, and social security 217.22 number will be shared with the work reporting system to 217.23 determine possible employment. All current public assistance 217.24 recipients will be notified of this provision prior to its 217.25 implementation. 217.26 Sec. 20. Minnesota Statutes 1996, section 256F.04, 217.27 subdivision 1, is amended to read: 217.28 Subdivision 1. [FAMILY PRESERVATION FUND.] The 217.29 commissioner shall establish a family preservation fund to 217.30 assist counties in providing placement prevention and family 217.31 reunification services.This fund shall include a basic grant217.32for family preservation services, a placement earnings grant217.33under section 256.8711, subdivision 6b, paragraph (a), and a217.34development grant under section 256.8711, subdivision 6a, to217.35assist counties in developing and expanding their family217.36preservation core services as defined in section 256F.03,218.1subdivision 10. Beginning with calendar year 1998, after each218.2annual or quarterly calculation, these three component grants218.3shall be added together and treated as a single family218.4preservation grant.218.5 Sec. 21. Minnesota Statutes 1996, section 256F.04, 218.6 subdivision 2, is amended to read: 218.7 Subd. 2. [FORMS AND INSTRUCTIONS.] The commissioner shall 218.8 provide necessary forms and instructions to the counties for 218.9 their community social services plan, as required in section 218.10 256E.09, that incorporate the information necessary to apply for 218.11 a family preservation fund grant, and to exercise county options 218.12 under section 256F.05,subdivisions 7, paragraph (a), or218.13 subdivision 8, paragraph (c). 218.14 Sec. 22. Minnesota Statutes 1996, section 256F.05, 218.15 subdivision 2, is amended to read: 218.16 Subd. 2. [MONEY AVAILABLE FORTHE BASIC GRANTFAMILY 218.17 PRESERVATION.] Money appropriated for family preservation under 218.18 sections 256F.04 to 256F.07, together with an amount as 218.19 determined by the commissioner oftitle IV-Bfunds distributed 218.20 to Minnesota according tothe Social Security Act,United States 218.21 Code, title 42, chapter 7, subchapter IV, part B, section 621, 218.22 must be distributed to counties on a calendar year basis 218.23 according to the formula in subdivision 3. 218.24 Sec. 23. Minnesota Statutes 1996, section 256F.05, 218.25 subdivision 3, is amended to read: 218.26 Subd. 3. [BASICGRANT FORMULA.] (a) The amount of money 218.27 allocated to counties under subdivision 2 shall first be 218.28 allocated in amounts equal to each county's guaranteed floor 218.29 according to paragraph (b), and second, any remaining available 218.30 funds allocated as follows: 218.31 (1)9050 percent of the funds shall be allocated based on 218.32 the population of the county under age 19 years as compared to 218.33 the state as a whole as determined by the most recent data from 218.34 the state demographer's office;and218.35 (2)ten20 percent of funds shall be allocated based on the 218.36 county's percentage share of the unduplicated number of families 219.1 who received family preservation services under section 256F.03, 219.2 subdivision 5, paragraphs (a), (b), (c), and (e), in the most 219.3 recent calendar year available as determined by the 219.4 commissioner; 219.5 (3) ten percent of the funds shall be allocated based on 219.6 the county's percentage share of the unduplicated number of 219.7 children in substitute care in the most recent calendar year 219.8 available as determined by the commissioner; 219.9 (4) ten percent of the funds shall be allocated based on 219.10 the county's percentage share of the number of determined 219.11 maltreatment reports in the most recent calendar year available 219.12 as determined by the commissioner; 219.13 (5) five percent of the funds shall be allocated based on 219.14 the county's percentage share of the number of American Indian 219.15 children under age 18 residing in the county in the most recent 219.16 calendar year as determined by the commissioner; and 219.17 (6) five percent of the funds shall be allocated based on 219.18 the county's percentage share of the number ofminoritychildren 219.19 of color receiving children's case management services as 219.20 defined by the commissioner based on the most recent data as 219.21 determined by the commissioner. 219.22 (b) Each county'sbasicgrant guaranteed floor shall be 219.23 calculated as follows: 219.24 (1) 90 percent of the county's allocation received in the 219.25 preceding calendar year. For calendar year 1996 only, the219.26allocation received in the preceding calendar year shall be219.27determined by the commissioner based on the funding previously219.28distributed as separate grants under sections 256F.04 to 256F.07219.29 or $25,000, whichever is greater; and 219.30 (2) when the amounts of funds available for allocation is 219.31 less than the amount available in the previous year, each 219.32 county's previous year allocation shall be reduced in proportion 219.33 to the reduction in the statewide funding, for the purpose of 219.34 establishing the guaranteed floor. 219.35 (c) The commissioner shall regularly review the use of 219.36 family preservation fund allocations by county. The 220.1 commissioner may reallocate unexpended or unencumbered money at 220.2 any time among those counties that have expended or are 220.3 projected to expend their full allocation. 220.4 (d) For the period of July 1, 1997, to December 31, 1998, 220.5 only, each county shall receive an 18-month allocation. For the 220.6 purposes of determining the guaranteed floor for this 18-month 220.7 allocation, the allocation received in the preceding calendar 220.8 year shall be determined by the commissioner based on the 220.9 funding previously distributed separately under sections 220.10 256.8711 and 256F.04. 220.11 Sec. 24. Minnesota Statutes 1996, section 256F.05, 220.12 subdivision 4, is amended to read: 220.13 Subd. 4. [PAYMENTS.] The commissioner shall make grant 220.14 payments to each county whose biennial community social services 220.15 plan has been approved under section 256F.04, subdivision 2. 220.16 Thebasicgrantunder subdivisions 2 and 3 and the development220.17grant under section 256.8711, subdivision 6a,shall be paid to 220.18 counties in four installments per year. The commissioner may 220.19 certify the payments for the first three months of a calendar 220.20 year. Subsequent payments shall be based on reported 220.21 expenditures and may be adjusted for anticipated spending 220.22 patterns.The placement earnings grant under section 256.8711,220.23subdivision 6b, paragraph (a), shall be based on earnings and220.24coordinated with the other payments. In calendar years 1996 and220.251997, the placement earnings grant and the development grant220.26shall be distributed separately from the basic grant, except as220.27provided in subdivision 7, paragraph (a). Beginning with220.28calendar year 1998, after each annual or quarterly calculation,220.29these three component grants shall be added together into a220.30single family preservation fund grant and treated as a single220.31grant.220.32 Sec. 25. Minnesota Statutes 1996, section 256F.05, 220.33 subdivision 8, is amended to read: 220.34 Subd. 8. [USES OF FAMILY PRESERVATION FUND GRANTS.]For220.35both basic grants and single family preservation fund grants:220.36 (a) A county which has not demonstrated that year that its 221.1 family preservation core services are developed as provided in 221.2 subdivision 1a, must use its family preservation fund grant 221.3 exclusively for family preservation services defined in section 221.4 256F.03, subdivision 5, paragraphs (a), (b), (c), and (e). 221.5 (b) A county which has demonstrated that year that its 221.6 family preservation core services are developed becomes eligible 221.7 either to continue using its family preservation fund grant as 221.8 provided in paragraph (a), or to exercise the expanded service 221.9 option under paragraph (c). 221.10 (c) The expanded service option permits an eligible county 221.11 to use its family preservation fund grant for child welfare 221.12preventativepreventive servicesas defined in section 256F.10,221.13subdivision 7, paragraph (d). For purposes of this section, 221.14 child welfare preventive services are those services directed 221.15 toward a specific child or family that further the goals of 221.16 section 256F.01 and include assessments, family preservation 221.17 services, service coordination, community-based treatment, 221.18 crisis nursery services when the parents retain custody and 221.19 there is no voluntary placement agreement with a child-placing 221.20 agency, respite care except when it is provided under a medical 221.21 assistance waiver, home-based services, and other related 221.22 services. For purposes of this section, child welfare 221.23 preventive services shall not include shelter care or other 221.24 placement services under the authority of the court or public 221.25 agency to address an emergency. To exercise this option, an 221.26 eligible county must notify the commissioner in writing of its 221.27 intention to do so no later than 30 days into the quarter during 221.28 which it intends to begin or in its county plan, as provided in 221.29 section 256F.04, subdivision 2. Effective with the first day of 221.30 that quarter, the county must maintain its base level of 221.31 expenditures for child welfarepreventativepreventive services 221.32 and use the family preservation fund to expand them. The base 221.33 level of expenditures for a county shall be that established 221.34 under section 256F.10, subdivision 7. For counties which have 221.35 no such base established, a comparable base shall be established 221.36 with the base year being the calendar year ending at least two 222.1 calendar quarters before the first calendar quarter in which the 222.2 county exercises its expanded service option. The commissioner 222.3 shall, at the request of the counties, reduce, suspend, or 222.4 eliminate either or both of a county's obligations to continue 222.5 the base level of expenditures and to expand child welfare 222.6preventativepreventive servicesbased on conditions described222.7in section 256F.10, subdivision 7, paragraph (b) or (c)under 222.8 extraordinary circumstances. 222.9(d) Each county's placement earnings and development grant222.10shall be determined under section 256.8711, but after each222.11annual or quarterly calculation, if added to that county's basic222.12grant, the three component grants shall be treated as a single222.13family preservation fund grant.222.14 Sec. 26. Minnesota Statutes 1996, section 256F.06, 222.15 subdivision 1, is amended to read: 222.16 Subdivision 1. [RESPONSIBILITIES.] A county board may, 222.17 alone or in combination with other county boards, apply for a 222.18 family preservation fund grant as provided in section 256F.04, 222.19 subdivision 2. Upon approval of the grant, the county board may 222.20 contract for or directly provide family-based and other eligible 222.21 services. A county board may contract with or directly provide 222.22 eligible services to children and families through a local 222.23 collaborative. 222.24 Sec. 27. Minnesota Statutes 1996, section 256F.06, 222.25 subdivision 2, is amended to read: 222.26 Subd. 2. [DEVELOPING FAMILY PRESERVATION CORE SERVICES.]A222.27county board shall endeavor to develop and expand its family222.28preservation core services.When a county can demonstrate that 222.29 its family preservation core services are developed as provided 222.30 in section 256F.05, subdivision 1a, a county board becomes 222.31 eligible to exercise the expanded service option under section 222.32 256F.05, subdivision 8, paragraph (c).For calendar years 1996222.33and 1997, the county board also becomes eligible to request that222.34its basic, placement earnings, and development grants be added222.35into a single grant under section 256F.05, subdivision 7,222.36paragraph (a).223.1 Sec. 28. Minnesota Statutes 1996, section 257.62, 223.2 subdivision 1, is amended to read: 223.3 Subdivision 1. [BLOOD OR GENETIC TESTS REQUIRED.] (a) The 223.4 court or public authority may, and upon request of a party 223.5 shall, require the child, mother, or alleged father to submit to 223.6 blood or genetic tests. A mother or alleged father requesting 223.7 the tests shall file with the court an affidavit either alleging 223.8 or denying paternity and setting forth facts that establish the 223.9 reasonable possibility that there was, or was not, the requisite 223.10 sexual contact between the parties. 223.11 (b) A copy of the test results must be served onthe223.12parties as provided in section 543.20each party by first class 223.13 mail to the party's last known address. Any objection to the 223.14 results of blood or genetic tests must be made in writing no 223.15 later than15 days prior to a hearing at which time those test223.16results may be introduced into evidence30 days after service of 223.17 the results. Test results served upon a party must include 223.18 notice of this right to object. 223.19 (c) If the alleged father is dead, the court may, and upon 223.20 request of a party shall, require the decedent's parents or 223.21 brothers and sisters or both to submit to blood or genetic 223.22 tests. However, in a case involving these relatives of an 223.23 alleged father, who is deceased, the court may refuse to order 223.24 blood or genetic tests if the court makes an express finding 223.25 that submitting to the tests presents a danger to the health of 223.26 one or more of these relatives that outweighs the child's 223.27 interest in having the tests performed. Unless the person gives 223.28 consent to the use, the results of any blood or genetic tests of 223.29 the decedent's parents, brothers, or sisters may be used only to 223.30 establish the right of the child to public assistance including 223.31 but not limited to social security and veterans' benefits. The 223.32 tests shall be performed by a qualified expert appointed by the 223.33 court. 223.34 Sec. 29. Minnesota Statutes 1996, section 257.62, 223.35 subdivision 2, is amended to read: 223.36 Subd. 2.The court, upon reasonable request by a party,224.1shall order that independent tests be performed by other224.2qualified experts.Unless otherwise agreed by the parties, a 224.3 party wanting additional testing must first contest the original 224.4 tests in subdivision 1, paragraph (b), and must pay in advance 224.5 for the additional testing. The additional testing shall be 224.6 performed by another qualified expert. 224.7 Sec. 30. Minnesota Statutes 1996, section 257.66, 224.8 subdivision 3, is amended to read: 224.9 Subd. 3. [JUDGMENT; ORDER.] The judgment or order shall 224.10 contain provisions concerning the duty of support, the custody 224.11 of the child, the name of the child, the social security number 224.12 of the mother, father, and child, if known at the time of 224.13 adjudication, visitation privileges with the child, the 224.14 furnishing of bond or other security for the payment of the 224.15 judgment, or any other matter in the best interest of the 224.16 child. Custody and visitation and all subsequent motions 224.17 related to them shall proceed and be determined under section 224.18 257.541. The remaining matters and all subsequent motions 224.19 related to them shall proceed and be determined in accordance 224.20 with chapter 518. The judgment or order may direct the 224.21 appropriate party to pay all or a proportion of the reasonable 224.22 expenses of the mother's pregnancy and confinement, after 224.23 consideration of the relevant facts, including the relative 224.24 financial means of the parents; the earning ability of each 224.25 parent; and any health insurance policies held by either parent, 224.26 or by a spouse or parent of the parent, which would provide 224.27 benefits for the expenses incurred by the mother during her 224.28 pregnancy and confinement. Pregnancy and confinement expenses 224.29 and genetic testing costs, submitted by the public authority, 224.30 are admissible as evidence without third-party foundation 224.31 testimony and shall constitute prima facie evidence of the 224.32 amounts incurred for such services or for the genetic testing. 224.33 Remedies available for the collection and enforcement of child 224.34 support apply to confinement costs and are considered additional 224.35 child support. 224.36 Sec. 31. Minnesota Statutes 1996, section 257.66, is 225.1 amended by adding a subdivision to read: 225.2 Subd. 6. [REQUIRED INFORMATION.] Upon entry of judgment or 225.3 order, each parent who is a party in a paternity proceeding 225.4 shall: 225.5 (1) file with the public authority responsible for child 225.6 support enforcement the party's social security number, 225.7 residential and mailing address, telephone number, driver's 225.8 license number, and name, address, and telephone number of any 225.9 employer if the party is receiving services from the public 225.10 authority or begins receiving services from the public 225.11 authority; 225.12 (2) file the information in clause (1) with the district 225.13 court; and 225.14 (3) notify the court and, if applicable, the public 225.15 authority responsible for child support enforcement of any 225.16 change in the information required under this section within ten 225.17 days of the change. 225.18 Sec. 32. Minnesota Statutes 1996, section 257.70, is 225.19 amended to read: 225.20 257.70 [HEARINGS AND RECORDS; CONFIDENTIALITY.] 225.21 (a) Notwithstanding any other law concerning public 225.22 hearings and records, any hearing or trial held under sections 225.23 257.51 to 257.74 shall be held in closed court without 225.24 admittance of any person other than those necessary to the 225.25 action or proceeding. All papers and records, other than the 225.26 final judgment, pertaining to the action or proceeding, whether 225.27 part of the permanent record of the court or of a file in the 225.28 state department of human services or elsewhere, are subject to 225.29 inspection only upon consent of the court and all interested 225.30 persons, or in exceptional cases only upon an order of the court 225.31 for good cause shown. 225.32 (b) In all actions under this chapter in which public 225.33 assistance is assigned under section 256.741 or the public 225.34 authority provides services to a party or parties to the action, 225.35 notwithstanding statutory or other authorization for the public 225.36 authority to release private data on the location of a party to 226.1 the action, information on the location of one party may not be 226.2 released by the public authority to the other party if: 226.3 (1) the public authority has knowledge that a protective 226.4 order with respect to the other party has been entered; or 226.5 (2) the public authority has reason to believe that the 226.6 release of the information may result in physical or emotional 226.7 harm to the other party. 226.8 Sec. 33. Minnesota Statutes 1996, section 257.75, 226.9 subdivision 2, is amended to read: 226.10 Subd. 2. [REVOCATION OF RECOGNITION.] A recognition may be 226.11 revoked in a writing signed by the mother or father before a 226.12 notary public and filed with the state registrar of vital 226.13 statistics within the earlier of 30 days after the recognition 226.14 is executed.or the date of an administrative or judicial 226.15 hearing relating to the child in which the revoking party is a 226.16 party to the related action. A joinder in a recognition may be 226.17 revoked in a writing signed by the man who executed the joinder 226.18 and filed with the state registrar of vital statistics within 30 226.19 days after the joinder is executed. Upon receipt of a 226.20 revocation of the recognition of parentage or joinder in a 226.21 recognition, the state registrar of vital statistics shall 226.22 forward a copy of the revocation to the nonrevoking parent, or, 226.23 in the case of a joinder in a recognition, to the mother and 226.24 father who executed the recognition. 226.25 Sec. 34. Minnesota Statutes 1996, section 257.75, 226.26 subdivision 3, is amended to read: 226.27 Subd. 3. [EFFECT OF RECOGNITION.] Subject to subdivision 2 226.28 and section 257.55, subdivision 1, paragraph (g) or (h), the 226.29 recognition has the force and effect of a judgment or order 226.30 determining the existence of the parent and child relationship 226.31 under section 257.66. If the conditions in section 257.55, 226.32 subdivision 1, paragraph (g) or (h), exist, the recognition 226.33 creates only a presumption of paternity for purposes of sections 226.34 257.51 to 257.74. Once a recognition has been properly executed 226.35 and filed with the state registrar of vital statistics, if there 226.36 are no competing presumptions of paternity, a judicial or 227.1 administrative court shall not allow further action to determine 227.2 parentage regarding the signator of recognition. Until an order 227.3 is entered granting custody to another, the mother has sole 227.4 custody. The recognition is: 227.5 (1) a basis for bringing an action to award custody or 227.6 visitation rights to either parent, establishing a child support 227.7 obligation which may include up to the two years immediately 227.8 preceding the commencement of the action, ordering a 227.9 contribution by a parent under section 256.87, or ordering a 227.10 contribution to the reasonable expenses of the mother's 227.11 pregnancy and confinement, as provided under section 257.66, 227.12 subdivision 3, or ordering reimbursement for the costs of blood 227.13 or genetic testing, as provided under section 257.69, 227.14 subdivision 2; 227.15 (2) determinative for all other purposes related to the 227.16 existence of the parent and child relationship; and 227.17 (3) entitled to full faith and credit in other 227.18 jurisdictions. 227.19 Sec. 35. Minnesota Statutes 1996, section 257.75, 227.20 subdivision 4, is amended to read: 227.21 Subd. 4. [ACTION TO VACATE RECOGNITION.] (a) An action to 227.22 vacate a recognition of paternity may be brought by the mother, 227.23 father, husband or former husband who executed a joinder, or the 227.24 child. A mother, father, or husband or former husband who 227.25 executed a joinder must bring the action within one year of the 227.26 execution of the recognition or within six months after the 227.27 person bringing the action obtains the results of blood or 227.28 genetic tests that indicate that the man who executed the 227.29 recognition is not the father of the child. A child must bring 227.30 an action to vacate within six months after the child obtains 227.31 the result of blood or genetic tests that indicate that the man 227.32 who executed the recognition is not the father of the child, or 227.33 within one year of reaching the age of majority, whichever is 227.34 later. If the court finds a prima facie basis for vacating the 227.35 recognition, the court shall order the child, mother, father, 227.36 and husband or former husband who executed a joinder to submit 228.1 to blood tests. If the court issues an order for the taking of 228.2 blood tests, the court shall require the party seeking to vacate 228.3 the recognition to make advance payment for the costs of the 228.4 blood tests. If the party fails to pay for the costs of the 228.5 blood tests, the court shall dismiss the action to vacate with 228.6 prejudice. The court may also order the party seeking to vacate 228.7 the recognition to pay the other party's reasonable attorney 228.8 fees, costs, and disbursements. If the results of the blood 228.9 tests establish that the man who executed the recognition is not 228.10 the father, the court shall vacate the recognition. If a 228.11 recognition is vacated, any joinder in the recognition under 228.12 subdivision 1a is also vacated. The court shall terminate the 228.13 obligation of a party to pay ongoing child support based on the 228.14 recognition. A modification of child support based on a 228.15 recognition may be made retroactive with respect to any period 228.16 during which the moving party has pending a motion to vacate the 228.17 recognition but only from the date of service of notice of the 228.18 motion on the responding party. 228.19 (b) The burden of proof in an action to vacate the 228.20 recognition is on the moving party. The moving party must 228.21 request the vacation on the basis of fraud, duress, or material 228.22 mistake of fact. The legal responsibilities in existence at the 228.23 time of an action to vacate, including child support 228.24 obligations, may not be suspended during the proceeding, except 228.25 for good cause shown. 228.26 Sec. 36. Minnesota Statutes 1996, section 257.75, 228.27 subdivision 5, is amended to read: 228.28 Subd. 5. [RECOGNITION FORM.] The commissioner of human 228.29 services shall prepare a form for the recognition of parentage 228.30 under this section. In preparing the form, the commissioner 228.31 shall consult with the individuals specified in subdivision 6. 228.32 The recognition form must be drafted so that the force and 228.33 effect of the recognition, the alternatives to executing a 228.34 recognition, and the benefits and responsibilities of 228.35 establishing paternity are clear and understandable. The form 228.36 must include a notice regarding the finality of a recognition 229.1 and the revocation procedure under subdivision 2. The form must 229.2 include a provision for each parent to verify that the parent 229.3 has read or viewed the educational materials prepared by the 229.4 commissioner of human services describing the recognition of 229.5 paternity. If feasible, the individual providing the form to 229.6 the parents for execution shall provide oral notice of the 229.7 rights, responsibilities, and alternatives to executing the 229.8 recognition. Notice may be provided by audio tape, videotape, 229.9 or similar means. Each parent must receive a copy of the 229.10 recognition. 229.11 Sec. 37. Minnesota Statutes 1996, section 257.75, 229.12 subdivision 7, is amended to read: 229.13 Subd. 7. [HOSPITAL AND DEPARTMENT OF HEALTH DISTRIBUTION 229.14 OF EDUCATIONAL MATERIALS; RECOGNITION FORM.] Hospitals that 229.15 provide obstetric services and the state registrar of vital 229.16 statistics shall distribute the educational materials and 229.17 recognition of parentage forms prepared by the commissioner of 229.18 human services to new parents and shall assist parents in 229.19 understanding the recognition of parentage form., including 229.20 following the provisions for notice under subdivision 5. On and 229.21 after January 1, 1994, hospitals may not distribute the 229.22 declaration of parentage forms. 229.23 Sec. 38. Minnesota Statutes 1996, section 299C.46, 229.24 subdivision 3, is amended to read: 229.25 Subd. 3. [AUTHORIZED USE, FEE.] (a) The data 229.26 communications network shall be used exclusively by: 229.27 (1) criminal justice agencies in connection with the 229.28 performance of duties required by law; 229.29 (2) agencies investigating federal security clearances of 229.30 individuals for assignment or retention in federal employment 229.31 with duties related to national security, as required by Public 229.32 Law Number 99-1691;and229.33 (3) other agencies to the extent necessary to provide for 229.34 protection of the public or property in an emergency or disaster 229.35 situation.; and 229.36 (4) the public authority responsible for child support 230.1 enforcement in connection with the performance of its duties. 230.2 (b) The commissioner of public safety shall establish a 230.3 monthly network access charge to be paid by each participating 230.4 criminal justice agency. The network access charge shall be a 230.5 standard fee established for each terminal, computer, or other 230.6 equipment directly addressable by the criminal justice data 230.7 communications network, as follows: January 1, 1984 to December 230.8 31, 1984, $40 connect fee per month; January 1, 1985 and 230.9 thereafter, $50 connect fee per month. 230.10 (c) The commissioner of public safety is authorized to 230.11 arrange for the connection of the data communications network 230.12 with the criminal justice information system of the federal 230.13 government, any adjacent state, or Canada. 230.14 Sec. 39. Minnesota Statutes 1996, section 508.63, is 230.15 amended to read: 230.16 508.63 [REGISTRATION OF INSTRUMENTS CREATING LIENS; 230.17 JUDGMENTS.] 230.18 No judgment requiring the payment of money shall be a lien 230.19 upon registered land, except as herein provided. Any person 230.20 claiming such lien shall file with the registrar a certified 230.21 copy of the judgment, together with a written statement 230.22 containing a description of each parcel of land in which the 230.23 judgment debtor has a registered interest and upon which the 230.24 lien is claimed, and a proper reference to the certificate or 230.25 certificates of title to such land. Upon filing such copy and 230.26 statement, the registrar shall enter a memorial of such judgment 230.27 upon each certificate designated in such statement, and the 230.28 judgment shall thereupon be and become a lien upon the judgment 230.29 debtor's interest in the land described in such certificate or 230.30 certificates. At any time after filing the certified copy of 230.31 such judgment, any person claiming the lien may, by filing a 230.32 written statement, as herein provided, cause a memorial of such 230.33 judgment to be entered upon any certificate of title to land in 230.34 which the judgment debtor has a registered interest and not 230.35 described in any previous statement and the judgment shall 230.36 thereupon be and become a lien upon the judgment debtor's 231.1 interest in such land. The public authority for child support 231.2 enforcement may present for filing a notice of judgment lien 231.3 under section 548.091 with identifying information for a parcel 231.4 of real property. Upon receipt of the notice of judgment lien, 231.5 the registrar shall enter a memorial of it upon each certificate 231.6 which can reasonably be identified as owned by the judgment 231.7 debtor on the basis of the information provided. The judgment 231.8 shall survive and the lien thereof shall continue for a period 231.9 of ten years from the date of the judgment and no longer, and 231.10 the registrar of titles shall not carry forward to a new 231.11 certificate of title the memorial of the judgment after that 231.12 period. In every case where an instrument of any description, 231.13 or a copy of any writ, order, or decree, is required by law to 231.14 be filed or recorded in order to create or preserve any lien, 231.15 writ, or attachment upon unregistered land, such instrument or 231.16 copy, if intended to affect registered land, shall, in lieu of 231.17 recording, be filed and registered with the registrar. In 231.18 addition to any facts required by law to be stated in such 231.19 instruments to entitle them to be filed or recorded, they shall 231.20 also contain a reference to the number of the certificate of 231.21 title of the land to be affected, and, if the attachment, 231.22 charge, or lien is not claimed on all the land described in any 231.23 certificate of title, such instrument shall contain a 231.24 description sufficient to identify the land. 231.25 Sec. 40. Minnesota Statutes 1996, section 508A.63, is 231.26 amended to read: 231.27 508A.63 [REGISTRATION OF INSTRUMENTS CREATING LIENS; 231.28 JUDGMENTS.] 231.29 No judgment requiring the payment of money shall be a lien 231.30 upon land registered under sections 508A.01 to 508A.85, except 231.31 as herein provided. Any person claiming a lien shall file with 231.32 the registrar a certified copy of the judgment, together with a 231.33 written statement containing a description of each parcel of 231.34 land in which the judgment debtor has a registered interest and 231.35 upon which the lien is claimed, and a proper reference to the 231.36 CPT or CPTs to the land. Upon filing the copy and statement, 232.1 the registrar shall enter a memorial of the judgment upon each 232.2 CPT designated in the statement, and the judgment shall then be 232.3 and become a lien upon the judgment debtor's interest in the 232.4 land described in CPT or CPTs. At any time after filing the 232.5 certified copy of the judgment, any person claiming the lien 232.6 may, by filing a written statement, as herein provided, cause a 232.7 memorial of the judgment to be entered upon any CPT to land in 232.8 which the judgment debtor has a registered interest and not 232.9 described in any previous statement and the judgment shall then 232.10 be and become a lien upon the judgment debtor's interest in the 232.11 land. The public authority for child support enforcement may 232.12 present for filing a notice of judgment lien under section 232.13 548.091 with identifying information for a parcel of real 232.14 property. Upon receipt of the notice of judgment lien, the 232.15 registrar shall enter a memorial of it upon each certificate of 232.16 possessory title which reasonably can be identified as owned by 232.17 the judgment debtor on the basis of the information provided. 232.18 The judgment shall survive and the lien thereof shall continue 232.19 for a period of ten years from the date of the judgment and no 232.20 longer; and the registrar shall not carry forward to a new 232.21 certificate of title the memorial of the judgment after that 232.22 period. In every case where an instrument of any description, 232.23 or a copy of any writ, order, or decree, is required by law to 232.24 be filed or recorded in order to create or preserve any lien, 232.25 writ, or attachment upon unregistered land, the instrument or 232.26 copy, if intended to affect registered land, shall, in lieu of 232.27 recording, be filed and registered with the registrar. In 232.28 addition to any facts required by law to be stated in the 232.29 instruments to entitle them to be filed or recorded, they shall 232.30 also contain a reference to the number of the CPT of the land to 232.31 be affected. If the attachment, charge, or lien is not claimed 232.32 on all the land described in any CPT, the instrument shall 232.33 contain a description sufficient to identify the land. 232.34 Sec. 41. Minnesota Statutes 1996, section 518.005, is 232.35 amended by adding a subdivision to read: 232.36 Subd. 5. [PROHIBITED DISCLOSURE.] In all proceedings under 233.1 this chapter in which public assistance is assigned under 233.2 section 256.741 or the public authority provides services to a 233.3 party or parties to the proceedings, notwithstanding statutory 233.4 or other authorization for the public authority to release 233.5 private data on the location of a party to the action, 233.6 information on the location of one party may not be released by 233.7 the public authority to the other party if: 233.8 (1) the public authority has knowledge that a protective 233.9 order with respect to the other party has been entered; or 233.10 (2) the public authority has reason to believe that the 233.11 release of the information may result in physical or emotional 233.12 harm to the other party. 233.13 Sec. 42. Minnesota Statutes 1996, section 518.10, is 233.14 amended to read: 233.15 518.10 [REQUISITES OF PETITION.] 233.16 The petition for dissolution of marriage or legal 233.17 separation shall state and allege: 233.18 (a) The nameand, address, and, in circumstances in which 233.19 child support or spousal maintenance will be addressed, social 233.20 security number of the petitioner and any prior or other name 233.21 used by the petitioner; 233.22 (b) The name and, if known, the address and, in 233.23 circumstances in which child support or spousal maintenance will 233.24 be addressed, social security number of the respondent and any 233.25 prior or other name used by the respondent and known to the 233.26 petitioner; 233.27 (c) The place and date of the marriage of the parties; 233.28 (d) In the case of a petition for dissolution, that either 233.29 the petitioner or the respondent or both: 233.30 (1) Has resided in this state for not less than 180 days 233.31 immediately preceding the commencement of the proceeding, or 233.32 (2) Has been a member of the armed services and has been 233.33 stationed in this state for not less than 180 days immediately 233.34 preceding the commencement of the proceeding, or 233.35 (3) Has been a domiciliary of this state for not less than 233.36 180 days immediately preceding the commencement of the 234.1 proceeding; 234.2 (e) The name at the time of the petition and any prior or 234.3 other name, age and date of birth of each living minor or 234.4 dependent child of the parties born before the marriage or born 234.5 or adopted during the marriage and a reference to, and the 234.6 expected date of birth of, a child of the parties conceived 234.7 during the marriage but not born; 234.8 (f) Whether or not a separate proceeding for dissolution, 234.9 legal separation, or custody is pending in a court in this state 234.10 or elsewhere; 234.11 (g) In the case of a petition for dissolution, that there 234.12 has been an irretrievable breakdown of the marriage 234.13 relationship; 234.14 (h) In the case of a petition for legal separation, that 234.15 there is a need for a decree of legal separation; and 234.16 (i) Any temporary or permanent maintenance, child support, 234.17 child custody, disposition of property, attorneys' fees, costs 234.18 and disbursements applied for without setting forth the amounts. 234.19 The petition shall be verified by the petitioner or 234.20 petitioners, and its allegations established by competent 234.21 evidence. 234.22 Sec. 43. Minnesota Statutes 1996, section 518.148, 234.23 subdivision 2, is amended to read: 234.24 Subd. 2. [REQUIRED INFORMATION.] The certificate shall 234.25 include the following information: 234.26 (1) the full caption and file number of the case and the 234.27 title "Certificate of Dissolution"; 234.28 (2) the names and any prior or other names of the parties 234.29 to the dissolution; 234.30 (3) the names of any living minor or dependent children as 234.31 identified in the judgment and decree; 234.32 (4) that the marriage of the parties is dissolved;and234.33 (5) the date of the judgment and decree.; and 234.34 (6) the social security number of the parties to the 234.35 dissolution and the social security number of any living minor 234.36 or dependent children identified in the judgment and decree. 235.1 Sec. 44. Minnesota Statutes 1996, section 518.171, 235.2 subdivision 1, is amended to read: 235.3 Subdivision 1. [ORDER.] Compliance with this section 235.4 constitutes compliance with a qualified medical child support 235.5 order as described in the federal Employee Retirement Income 235.6 Security Act of 1974 (ERISA) as amended by the federal Omnibus 235.7 Budget Reconciliation Act of 1993 (OBRA). 235.8 (a) Every child support order must: 235.9 (1) expressly assign or reserve the responsibility for 235.10 maintaining medical insurance for the minor children and the 235.11 division of uninsured medical and dental costs; and 235.12 (2) contain the namesand, last known addresses,if anyand 235.13 social security number of the custodial parent and noncustodial 235.14 parent, of the dependents unless the court prohibits the 235.15 inclusion of an address or social security number and orders the 235.16 custodial parent to provide the address and social security 235.17 number to the administrator of the health plan. The court shall 235.18 order the party with the better group dependent health and 235.19 dental insurance coverage or health insurance plan to name the 235.20 minor child as beneficiary on any health and dental insurance 235.21 plan that is available to the party on: 235.22 (i) a group basis; 235.23 (ii) through an employer or union; or 235.24 (iii) through a group health plan governed under the ERISA 235.25 and included within the definitions relating to health plans 235.26 found in section 62A.011, 62A.048, or 62E.06, subdivision 2. 235.27 "Health insurance" or "health insurance coverage" as used in 235.28 this section means coverage that is comparable to or better than 235.29 a number two qualified plan as defined in section 62E.06, 235.30 subdivision 2. "Health insurance" or "health insurance 235.31 coverage" as used in this section does not include medical 235.32 assistance provided under chapter 256, 256B, or 256D. 235.33 (b) If the court finds that dependent health or dental 235.34 insurance is not available to the obligor or obligee on a group 235.35 basis or through an employer or union, or that group insurance 235.36 is not accessible to the obligee, the court may require the 236.1 obligor (1) to obtain other dependent health or dental 236.2 insurance, (2) to be liable for reasonable and necessary medical 236.3 or dental expenses of the child, or (3) to pay no less than $50 236.4 per month to be applied to the medical and dental expenses of 236.5 the children or to the cost of health insurance dependent 236.6 coverage. 236.7 (c) If the court finds that the available dependent health 236.8 or dental insurance does not pay all the reasonable and 236.9 necessary medical or dental expenses of the child, including any 236.10 existing or anticipated extraordinary medical expenses, and the 236.11 court finds that the obligor has the financial ability to 236.12 contribute to the payment of these medical or dental expenses, 236.13 the court shall require the obligor to be liable for all or a 236.14 portion of the medical or dental expenses of the child not 236.15 covered by the required health or dental plan. Medical and 236.16 dental expenses include, but are not limited to, necessary 236.17 orthodontia and eye care, including prescription lenses. 236.18 (d) Unless otherwise agreed by the parties and approved by 236.19 the court, if the court finds that the obligee is not receiving 236.20 public assistance for the child and has the financial ability to 236.21 contribute to the cost of medical and dental expenses for the 236.22 child, including the cost of insurance, the court shall order 236.23 the obligee and obligor to each assume a portion of these 236.24 expenses based on their proportionate share of their total net 236.25 income as defined in section 518.54, subdivision 6. 236.26 (e) Payments ordered under this section are subject to 236.27 section 518.611. An obligee who fails to apply payments 236.28 received to the medical expenses of the dependents may be found 236.29 in contempt of this order. 236.30 Sec. 45. Minnesota Statutes 1996, section 518.171, 236.31 subdivision 4, is amended to read: 236.32 Subd. 4. [EFFECT OF ORDER.] (a) The order is binding on 236.33 the employer or union and the health and dental insurance plan 236.34 when service under subdivision 3 has been made. In the case of 236.35 an obligor who changes employment and is required to provide 236.36 health coverage for the child, a new employer that provides 237.1 health care coverage shall enroll the child in the obligor's 237.2 health plan upon receipt of an order or notice for health 237.3 insurance, unless the obligor contests the enrollment. The 237.4 obligor may contest the enrollment on the limited grounds that 237.5 the enrollment is improper due to mistake of fact or that the 237.6 enrollment meets the requirements of section 518.64, subdivision 237.7 2. If the obligor chooses to contest the enrollment, the 237.8 obligor must do so no later than 15 days after the employer 237.9 notifies the obligor of the enrollment, by doing all of the 237.10 following: 237.11 (i) filing a request for contested hearing according to 237.12 section 518.5511, subdivision 3a; 237.13 (ii) serving a copy of the request for contested hearing 237.14 upon the public authority and the obligee; and 237.15 (iii) securing a date for the contested hearing no later 237.16 than 45 days after the notice of enrollment. 237.17 (b) The enrollment must remain in place during the time 237.18 period in which the obligor contests the withholding. 237.19 (c) If the court finds that an arrearage of at least 30 237.20 days existed as of the date of the notice of withholding, the 237.21 court shall order income withholding to continue. If the court 237.22 finds a mistake in the amount of the arrearage to be withheld, 237.23 the court shall continue the income withholding, but it shall 237.24 correct the amount of the arrearage to be withheld. An employer 237.25 or union that is included under ERISA may not deny enrollment 237.26 based on exclusionary clauses described in section 62A.048. 237.27 Uponreceipt of the order, or uponapplication of the 237.28 obligorpursuantaccording to the order or notice, the employer 237.29 or union and its health and dental insurance plan shall enroll 237.30 the minor child as a beneficiary in the group insurance plan and 237.31 withhold any required premium from the obligor's income or 237.32 wages. If more than one plan is offered by the employer or 237.33 union, the child shall be enrolled in the least costly health 237.34 insurance plan otherwise available to the obligor that is 237.35 comparable to a number two qualified plan. If the obligor is 237.36 not enrolled in a health insurance plan, the employer or union 238.1 shall also enroll the obligor in the chosen plan if enrollment 238.2 of the obligor is necessary in order to obtain dependent 238.3 coverage under the plan. Enrollment of dependents and the 238.4 obligor shall be immediate and not dependent upon open 238.5 enrollment periods. Enrollment is not subject to the 238.6 underwriting policies described in section 62A.048. 238.7 (b) An employer or union that willfully fails to comply 238.8 with the order is liable for any health or dental expenses 238.9 incurred by the dependents during the period of time the 238.10 dependents were eligible to be enrolled in the insurance 238.11 program, and for any other premium costs incurred because the 238.12 employer or union willfully failed to comply with the order. An 238.13 employer or union that fails to comply with the order is subject 238.14 to contempt under section 518.615 and is also subject to a fine 238.15 of $500 to be paid to the obligee or public authority. Fines 238.16 paid to the public authority are designated for child support 238.17 enforcement services. 238.18 (c) Failure of the obligor to execute any documents 238.19 necessary to enroll the dependent in the group health and dental 238.20 insurance plan will not affect the obligation of the employer or 238.21 union and group health and dental insurance plan to enroll the 238.22 dependent in a plan. Information and authorization provided by 238.23 the public authority responsible for child support enforcement, 238.24 or by the custodial parent or guardian, is valid for the 238.25 purposes of meeting enrollment requirements of the health plan. 238.26 The insurance coverage for a child eligible under subdivision 5 238.27 shall not be terminated except as authorized in subdivision 5. 238.28 Sec. 46. Minnesota Statutes 1996, section 518.54, is 238.29 amended by adding a subdivision to read: 238.30 Subd. 4a. [SUPPORT ORDER.] "Support order" means a 238.31 judgment, decree, or order, whether temporary, final, or subject 238.32 to modification, issued by a court or administrative agency of 238.33 competent jurisdiction, for the support and maintenance of a 238.34 child, including a child who has attained the age of majority 238.35 under the law of the issuing state, or a child and the parent 238.36 with whom the child is living, that provides for monetary 239.1 support, child care, medical support including expenses for 239.2 confinement and pregnancy, arrearages, or reimbursement, and 239.3 which may include related costs and fees, interest and 239.4 penalties, income withholding, and other relief. This definition 239.5 applies to orders issued under this chapter and chapters 256, 239.6 257, and 518C. 239.7 Sec. 47. Minnesota Statutes 1996, section 518.54, 239.8 subdivision 6, is amended to read: 239.9 Subd. 6. [INCOME.] "Income" means any form of periodic 239.10 payment to an individual including, but not limited to, wages, 239.11 salaries, payments to an independent contractor, workers' 239.12 compensation, reemployment insurance, annuity, military and 239.13 naval retirement, pension and disability payments. Benefits 239.14 received undersections 256.72 to 256.87 and chapter 256DTitle 239.15 IV-A of the Social Security Act are not income under this 239.16 section. 239.17 Sec. 48. Minnesota Statutes 1996, section 518.551, 239.18 subdivision 12, is amended to read: 239.19 Subd. 12. [OCCUPATIONAL LICENSE SUSPENSION.] (a) Upon 239.20 motion of an obligee, if the court finds that the obligor is or 239.21 may be licensed by a licensing board listed in section 214.01 or 239.22 other state, county, or municipal agency or board that issues an 239.23 occupational license and the obligor is in arrears in 239.24 court-ordered child support or maintenance payments or both in 239.25 an amount equal to or greater than three times the obligor's 239.26 total monthly support and maintenance payments and is not in 239.27 compliance with a written payment agreement regarding both 239.28 current support and arrearages approved by the court, an 239.29 administrative law judge, or the public authority, the 239.30 administrative law judge, or the court shall direct the 239.31 licensing board or other licensing agency to suspend the license 239.32 under section 214.101. The court's order must be stayed for 90 239.33 days in order to allow the obligor to execute a written payment 239.34 agreement regarding both current support and arrearages. The 239.35 payment agreement must be approved by either the court or the 239.36 public authority responsible for child support enforcement. If 240.1 the obligor has not executed or is not in compliance with a 240.2 written payment agreement regarding both current support and 240.3 arrearages after the 90 days expires, the court's order becomes 240.4 effective. If the obligor is a licensed attorney, the court 240.5 shall report the matter to the lawyers professional 240.6 responsibility board for appropriate action in accordance with 240.7 the rules of professional conduct. The remedy under this 240.8 subdivision is in addition to any other enforcement remedy 240.9 available to the court. 240.10 (b) If a public authority responsible for child support 240.11 enforcement finds that the obligor is or may be licensed by a 240.12 licensing board listed in section 214.01 or other state, county, 240.13 or municipal agency or board that issues an occupational license 240.14 and the obligor is in arrears in court-ordered child support or 240.15 maintenance payments or both in an amount equal to or greater 240.16 than three times the obligor's total monthly support and 240.17 maintenance payments and is not in compliance with a written 240.18 payment agreement regarding both current support and arrearages 240.19 approved by the court, an administrative law judge, or the 240.20 public authority, the court, an administrative law judge, or the 240.21 public authority shall direct the licensing board or other 240.22 licensing agency to suspend the license under section 214.101. 240.23 If the obligor is a licensed attorney, the public authority may 240.24 report the matter to the lawyers professional responsibility 240.25 board for appropriate action in accordance with the rules of 240.26 professional conduct. The remedy under this subdivision is in 240.27 addition to any other enforcement remedy available to the public 240.28 authority. 240.29 (c) At least 90 days before notifying a licensing authority 240.30 or the lawyers professional responsibility board under paragraph 240.31 (b), the public authority shall mail a written notice to the 240.32 license holder addressed to the license holder's last known 240.33 address that the public authority intends to seek license 240.34 suspension under this subdivision and that the license holder 240.35 must request a hearing within 30 days in order to contest the 240.36 suspension. If the license holder makes a written request for a 241.1 hearing within 30 days of the date of the notice, either a court 241.2 hearing or a contested administrative proceeding must be held 241.3 under section 518.5511, subdivision 4. Notwithstanding any law 241.4 to the contrary, the license holder must be served with 14 days' 241.5 notice in writing specifying the time and place of the hearing 241.6 and the allegations against the license holder. The notice may 241.7 be served personally or by mail. If the public authority does 241.8 not receive a request for a hearing within 30 days of the date 241.9 of the notice, and the obligor does not execute a written 241.10 payment agreement regarding both current support and arrearages 241.11 approved by thecourt, an administrative law judge or thepublic 241.12 authority within 90 days of the date of the notice, the public 241.13 authority shall direct the licensing board or other licensing 241.14 agency to suspend the obligor's license under paragraph (b), or 241.15 shall report the matter to the lawyers professional 241.16 responsibility board. 241.17 (d) The administrative law judge, on behalf of the public 241.18 authority, or the court shall notify the lawyers professional 241.19 responsibility board for appropriate action in accordance with 241.20 the rules of professional responsibility conduct or order the 241.21 licensing board or licensing agency to suspend the license if 241.22 the judge finds that: 241.23 (1) the person is licensed by a licensing board or other 241.24 state agency that issues an occupational license; 241.25 (2) the person has not made full payment of arrearages 241.26 found to be due by the public authority; and 241.27 (3) the person has not executed or is not in compliance 241.28 with a payment plan approved by the court, an administrative law 241.29 judge, or the public authority. 241.30 (e) Within 15 days of the date on which the obligor either 241.31 makes full payment of arrearages found to be due by the court or 241.32 public authority or executes and initiates good faith compliance 241.33 with a written payment plan approved by the court, an 241.34 administrative law judge, or the public authority, the court, an 241.35 administrative law judge, or the public authority responsible 241.36 for child support enforcement shall notify the licensing board 242.1 or licensing agency or the lawyers professional responsibility 242.2 board that the obligor is no longer ineligible for license 242.3 issuance, reinstatement, or renewal under this subdivision. 242.4 (f) In addition to the criteria established under this 242.5 section for the suspension of an obligor's occupational license, 242.6 a court, an administrative law judge, or the public authority 242.7 may direct the licensing board or other licensing agency to 242.8 suspend the license of an obligor who has failed, after 242.9 receiving notice, to comply with a subpoena or warrant relating 242.10 to a paternity or child support proceeding. 242.11 Sec. 49. Minnesota Statutes 1996, section 518.551, 242.12 subdivision 13, is amended to read: 242.13 Subd. 13. [DRIVER'S LICENSE SUSPENSION.] (a) Upon motion 242.14 of an obligee, which has been properly served on the obligor and 242.15 upon which there has been an opportunity for hearing, if a court 242.16 finds that the obligor has been or may be issued a driver's 242.17 license by the commissioner of public safety and the obligor is 242.18 in arrears in court-ordered child support or maintenance 242.19 payments, or both, in an amount equal to or greater than three 242.20 times the obligor's total monthly support and maintenance 242.21 payments and is not in compliance with a written payment 242.22 agreement regarding both current support and arrearages approved 242.23 by the court, an administrative law judge, or the public 242.24 authority, the court shall order the commissioner of public 242.25 safety to suspend the obligor's driver's license. The court's 242.26 order must be stayed for 90 days in order to allow the obligor 242.27 to execute a written payment agreement regarding both current 242.28 support and arrearages, which payment agreement must be approved 242.29 by either the court or the public authority responsible for 242.30 child support enforcement. If the obligor has not executed or 242.31 is not in compliance with a written payment agreement regarding 242.32 both current support and arrearages after the 90 days expires, 242.33 the court's order becomes effective and the commissioner of 242.34 public safety shall suspend the obligor's driver's license. The 242.35 remedy under this subdivision is in addition to any other 242.36 enforcement remedy available to the court. An obligee may not 243.1 bring a motion under this paragraph within 12 months of a denial 243.2 of a previous motion under this paragraph. 243.3 (b) If a public authority responsible for child support 243.4 enforcement determines that the obligor has been or may be 243.5 issued a driver's license by the commissioner of public safety 243.6 and the obligor is in arrears in court-ordered child support or 243.7 maintenance payments or both in an amount equal to or greater 243.8 than three times the obligor's total monthly support and 243.9 maintenance payments and not in compliance with a written 243.10 payment agreement regarding both current support and arrearages 243.11 approved by the court, an administrative law judge, or the 243.12 public authority, the public authority shall direct the 243.13 commissioner of public safety to suspend the obligor's driver's 243.14 license. The remedy under this subdivision is in addition to 243.15 any other enforcement remedy available to the public authority. 243.16 (c) At least 90 days prior to notifying the commissioner of 243.17 public safetypursuantaccording to paragraph (b), the public 243.18 authority must mail a written notice to the obligor at the 243.19 obligor's last known address, that it intends to seek suspension 243.20 of the obligor's driver's license and that the obligor must 243.21 request a hearing within 30 days in order to contest the 243.22 suspension. If the obligor makes a written request for a 243.23 hearing within 30 days of the date of the notice, either a court 243.24 hearing or a contested administrative proceeding must be held 243.25 under section 518.5511, subdivision 4. Notwithstanding any law 243.26 to the contrary, the obligor must be served with 14 days' notice 243.27 in writing specifying the time and place of the hearing and the 243.28 allegations against the obligor. The notice may be served 243.29 personally or by mail. If the public authority does not receive 243.30 a request for a hearing within 30 days of the date of the 243.31 notice, and the obligor does not execute a written payment 243.32 agreement regarding both current support and arrearages approved 243.33 bythe court, an administrative law judge, orthe public 243.34 authority within 90 days of the date of the notice, the public 243.35 authority shall direct the commissioner of public safety to 243.36 suspend the obligor's driver's license under paragraph (b). 244.1 (d) At a hearing requested by the obligor under paragraph 244.2 (c), and on finding that the obligor is in arrears in 244.3 court-ordered child support or maintenance payments or both in 244.4 an amount equal to or greater than three times the obligor's 244.5 total monthly support and maintenance payments, the district 244.6 court or the administrative law judge shall order the 244.7 commissioner of public safety to suspend the obligor's driver's 244.8 license or operating privileges unless the court or 244.9 administrative law judge determines that the obligor has 244.10 executed and is in compliance with a written payment agreement 244.11 regarding both current support and arrearages approved by the 244.12 court, an administrative law judge, or the public authority. 244.13 (e) An obligor whose driver's license or operating 244.14 privileges are suspended may provide proof to the court or the 244.15 public authority responsible for child support enforcement that 244.16 the obligor is in compliance with all written payment agreements 244.17 regarding both current support and arrearages. Within 15 days 244.18 of the receipt of that proof, the court or public authority 244.19 shall inform the commissioner of public safety that the 244.20 obligor's driver's license or operating privileges should no 244.21 longer be suspended. 244.22 (f) On January 15, 1997, and every two years after that, 244.23 the commissioner of human services shall submit a report to the 244.24 legislature that identifies the following information relevant 244.25 to the implementation of this section: 244.26 (1) the number of child support obligors notified of an 244.27 intent to suspend a driver's license; 244.28 (2) the amount collected in payments from the child support 244.29 obligors notified of an intent to suspend a driver's license; 244.30 (3) the number of cases paid in full and payment agreements 244.31 executed in response to notification of an intent to suspend a 244.32 driver's license; 244.33 (4) the number of cases in which there has been 244.34 notification and no payments or payment agreements; 244.35 (5) the number of driver's licenses suspended; and 244.36 (6) the cost of implementation and operation of the 245.1 requirements of this section. 245.2 (g) In addition to the criteria established under this 245.3 section for the suspension of an obligor's driver's license, a 245.4 court, an administrative law judge, or the public authority may 245.5 direct the commissioner of public safety to suspend the license 245.6 of an obligor who has failed, after receiving notice, to comply 245.7 with a subpoena or warrant relating to a paternity or child 245.8 support proceeding. 245.9 Sec. 50. Minnesota Statutes 1996, section 518.5512, is 245.10 amended by adding a subdivision to read: 245.11 Subd. 6. [ADMINISTRATIVE AUTHORITY.] (a) In each case in 245.12 which support rights are assigned under section 256.741, 245.13 subdivision 1, or where the public authority is providing 245.14 services under an application for child support services, a 245.15 nonattorney employee of the public authority may, without 245.16 requirement of a court order: 245.17 (1) recognize and enforce orders of child support agencies 245.18 of other states; 245.19 (2) compel by subpoena the production of all papers, books, 245.20 records, documents, or other evidentiary material needed to 245.21 establish a parentage or child support order or to modify or 245.22 enforce a child support order; 245.23 (3) change the payee to the appropriate person, 245.24 organization, or agency authorized to receive or collect child 245.25 support or any other person or agency designated as the 245.26 caretaker of the child by agreement of the legal custodian or by 245.27 court order; 245.28 (4) order income withholding of child support under section 245.29 518.611; 245.30 (5) secure assets to satisfy the debt or arrearage in cases 245.31 in which there is a support debt or arrearage by: 245.32 (i) intercepting or seizing periodic or lump-sum payments 245.33 from state or local agencies, including reemployment insurance, 245.34 workers' compensation payments, judgments, settlements, and 245.35 lotteries; 245.36 (ii) attaching and seizing assets of the obligor held in 246.1 financial institutions or public or private retirement funds; 246.2 and 246.3 (iii) imposing liens and, in appropriate cases, forcing the 246.4 sale of property and the distribution of proceeds; and 246.5 (6) increase the amount of the monthly support payments to 246.6 include amounts for debts or arrearages for the purpose of 246.7 securing overdue support. 246.8 (b) Subpoenas may be served anywhere within the state and 246.9 served outside the state in the same manner as prescribed by law 246.10 for service of process of subpoenas issued by the district court 246.11 of this state. When a subpoena under this subdivision is served 246.12 on a third-party recordkeeper, written notice of the subpoena 246.13 shall be mailed to the person who is the subject of the 246.14 subpoenaed material at the person's last known address within 246.15 three days of the day the subpoena is served. This notice 246.16 provision does not apply if there is reasonable cause to believe 246.17 the giving of the notice may lead to interference with the 246.18 production of the subpoenaed documents. 246.19 (c) A person served with a subpoena may make a written 246.20 objection to the public authority or court before the time 246.21 specified in the subpoena for compliance. The public authority 246.22 or the court shall cancel or modify the subpoena, if 246.23 appropriate. The public authority shall pay the reasonable 246.24 costs of producing the documents, if requested. 246.25 (d) Subpoenas shall be enforceable in the same manner as 246.26 subpoenas of the district court, in proceedings initiated by 246.27 complaint of the public authority in the district court. 246.28 Sec. 51. Minnesota Statutes 1996, section 518.5512, is 246.29 amended by adding a subdivision to read: 246.30 Subd. 7. [CONTROLLING ORDER DETERMINATION.] The public 246.31 authority or a party may request the office of administrative 246.32 hearings to determine a controlling order according to section 246.33 518C.207, paragraph (c). 246.34 Sec. 52. [518.6111] [INCOME WITHHOLDING.] 246.35 Subdivision 1. [DEFINITIONS.] (a) For the purpose of this 246.36 section, the following terms have the meanings provided in this 247.1 subdivision unless otherwise stated. 247.2 (b) "Payor of funds" means any person or entity that 247.3 provides funds to an obligor, including an employer as defined 247.4 under chapter 24 of the Internal Revenue Code, section 3401(d), 247.5 an independent contractor, payor of workers' compensation 247.6 benefits or reemployment insurance, or a financial institution 247.7 as defined in section 256.978, subdivision 2, paragraph (b). 247.8 (c) "Business day" means a day on which state offices are 247.9 open for regular business. 247.10 (d) "Arrears" means amounts owed under a support order that 247.11 are past due. 247.12 Subd. 2. [APPLICATION.] This section applies to all 247.13 support orders issued by a court or an administrative tribunal 247.14 and orders for or notices of withholding issued by the public 247.15 authority according to section 518.5512, subdivision 6, 247.16 paragraph (a), clause (4). 247.17 Subd. 3. [ORDER.] Every support order must address income 247.18 withholding. Whenever a support order is initially entered or 247.19 modified, the full amount of the support order must be withheld 247.20 from the income of the obligor and forwarded to the public 247.21 authority. Every order for support or maintenance shall provide 247.22 for a conspicuous notice of the provisions of this section that 247.23 complies with section 518.68, subdivision 2. An order without 247.24 this notice remains subject to this section. This section 247.25 applies regardless of the source of income of the person 247.26 obligated to pay the support or maintenance. 247.27 A payor of funds shall implement income withholding 247.28 according to this section upon receipt of an order for or notice 247.29 of withholding. The notice of withholding shall be on a form 247.30 provided by the commissioner of human services. 247.31 Subd. 4. [COLLECTION SERVICES.] The commissioner of human 247.32 services shall prepare and make available to the courts a notice 247.33 of services that explains child support and maintenance 247.34 collection services available through the public authority, 247.35 including income withholding. Upon receiving a petition for 247.36 dissolution of marriage or legal separation, the court 248.1 administrator shall promptly send the notice of services to the 248.2 petitioner and respondent at the addresses stated in the 248.3 petition. 248.4 Upon receipt of a support order requiring income 248.5 withholding, a petitioner or respondent, who is not a recipient 248.6 of public assistance and does not receive child support services 248.7 from the public authority, shall apply to the public authority 248.8 for either full child support collection services or for income 248.9 withholding only services. 248.10 For those persons applying for income withholding only 248.11 services, a monthly service fee of $15 must be charged to the 248.12 obligor. This fee is in addition to the amount of the support 248.13 order and shall be withheld through income withholding. The 248.14 public authority shall explain the service options in this 248.15 section to the affected parties and encourage the application 248.16 for full child support collection services. 248.17 Subd. 5. [PAYOR OF FUNDS RESPONSIBILITIES.] (a) An order 248.18 for or notice of withholding is binding on a payor of funds upon 248.19 receipt. Withholding must begin no later than the first pay 248.20 period that occurs after 14 days following the date of receipt 248.21 of the order for or notice of withholding. In the case of a 248.22 financial institution, preauthorized transfers must occur in 248.23 accordance with a court-ordered payment schedule. 248.24 (b) A payor of funds shall withhold from the income payable 248.25 to the obligor the amount specified in the order or notice of 248.26 withholding and amounts specified under subdivisions 6 and 9 and 248.27 shall remit the amounts withheld to the public authority within 248.28 seven business days of the date the obligor is paid the 248.29 remainder of the income. The payor of funds shall include with 248.30 the remittance the social security number of the obligor, the 248.31 case type indicator, and the date the obligor is paid the 248.32 remainder of the income. The obligor is considered to have paid 248.33 the amount withheld as of the date the obligor received the 248.34 remainder of the income. A payor of funds may combine all 248.35 amounts withheld from one pay period into one payment to each 248.36 public authority, but shall separately identify each obligor 249.1 making payment. 249.2 (c) A payor of funds shall not discharge, or refuse to 249.3 hire, or otherwise discipline an employee as a result of wage or 249.4 salary withholding authorized by this section. A payor of funds 249.5 shall be liable to the obligee for any amounts required to be 249.6 withheld. A payor of funds that fails to withhold or transfer 249.7 funds in accordance with this section is also liable to the 249.8 obligee for interest on the funds at the rate applicable to 249.9 judgments under section 549.09 computed from the date the funds 249.10 were required to be withheld or transferred. A payor of funds 249.11 is liable for reasonable attorney fees of the obligee or public 249.12 authority incurred in enforcing the liability under this 249.13 paragraph. A payor of funds that has failed to comply with the 249.14 requirements of this section is subject to contempt sanctions 249.15 under section 518.615. If the payor of funds is an employer or 249.16 independent contractor and violates this subdivision, a court 249.17 may award the obligor twice the wages lost as a result of this 249.18 violation. If a court finds a payor of funds violated this 249.19 subdivision, the court shall impose a civil fine of not less 249.20 than $500. 249.21 (d) If a single employee is subject to multiple withholding 249.22 orders or multiple notices of withholding for the support of 249.23 more than one child, the payor of funds shall comply with all of 249.24 the orders or notices to the extent that the total amount 249.25 withheld from the obligor's income does not exceed the limits 249.26 imposed under the Consumer Credit Protection Act, United States 249.27 Code, title 15, section 1637(b), giving priority to amounts 249.28 designated in each order or notice as current support as follows: 249.29 (1) if the total of the amounts designated in the orders 249.30 for or notices of withholding as current support exceeds the 249.31 amount available for income withholding, the payor of funds 249.32 shall allocate to each order or notice an amount for current 249.33 support equal to the amount designated in that order or notice 249.34 as current support, divided by the total of the amounts 249.35 designated in the orders or notices as current support, 249.36 multiplied by the amount of the income available for income 250.1 withholding; and 250.2 (2) if the total of the amounts designated in the orders 250.3 for or notices of withholding as current support does not exceed 250.4 the amount available for income withholding, the payor of funds 250.5 shall pay the amounts designated as current support, and shall 250.6 allocate to each order or notice an amount for past due support, 250.7 equal to the amount designated in that order or notice as past 250.8 due support, divided by the total of the amounts designated in 250.9 the orders or notices as past due support, multiplied by the 250.10 amount of income remaining available for income withholding 250.11 after the payment of current support. 250.12 (e) When an order for or notice of withholding is in effect 250.13 and the obligor's employment is terminated, the obligor and the 250.14 payor of funds shall notify the public authority of the 250.15 termination within ten days of the termination date. The 250.16 termination notice shall include the obligor's home address and 250.17 the name and address of the obligor's new payor of funds, if 250.18 known. 250.19 (f) A payor of funds may deduct one dollar from the 250.20 obligor's remaining salary for each payment made pursuant to an 250.21 order for or notice of withholding under this section to cover 250.22 the expenses of withholding. 250.23 Subd. 6. [FINANCIAL INSTITUTIONS.] (a) If income 250.24 withholding is ineffective due to the obligor's method of 250.25 obtaining income, the court shall order the obligor to identify 250.26 a child support deposit account owned solely by the obligor, or 250.27 to establish an account, in a financial institution located in 250.28 this state for the purpose of depositing court-ordered child 250.29 support payments. The court shall order the obligor to execute 250.30 an agreement with the appropriate public authority for 250.31 preauthorized transfers from the obligor's child support account 250.32 payable to an account of the public authority. The court shall 250.33 order the obligor to disclose to the court all deposit accounts 250.34 owned by the obligor in whole or in part in any financial 250.35 institution. The court may order the obligor to disclose to the 250.36 court the opening or closing of any deposit account owned in 251.1 whole or in part by the obligor within 30 days of the opening or 251.2 closing. The court may order the obligor to execute an 251.3 agreement with the appropriate public authority for 251.4 preauthorized transfers from any deposit account owned in whole 251.5 or in part by the obligor to the obligor's child support deposit 251.6 account if necessary to satisfy court-ordered child support 251.7 payments. The court may order a financial institution to 251.8 disclose to the court the account number and any other 251.9 information regarding accounts owned in whole or in part by the 251.10 obligor. An obligor who fails to comply with this subdivision, 251.11 fails to deposit funds in at least one deposit account 251.12 sufficient to pay court-ordered child support, or stops payment 251.13 or revokes authorization of any preauthorized transfer is 251.14 subject to contempt of court procedures under chapter 588. 251.15 (b) A financial institution shall execute preauthorized 251.16 transfers for the deposit accounts of the obligor in the amount 251.17 specified in the order and amounts required under this section 251.18 as directed by the public authority. A financial institution is 251.19 liable to the obligee if funds in any of the obligor's deposit 251.20 accounts identified in the court order equal the amount stated 251.21 in the preauthorization agreement but are not transferred by the 251.22 financial institution in accordance with the agreement. 251.23 Subd. 7. [SUBSEQUENT INCOME WITHHOLDING.] (a) This 251.24 subdivision applies to support orders that do not contain 251.25 provisions for income withholding. 251.26 (b) For cases in which the public authority is providing 251.27 child support enforcement services to the parties, the income 251.28 withholding under this subdivision shall take effect without 251.29 prior judicial notice to the obligor and without the need for 251.30 judicial or administrative hearing. Withholding shall result 251.31 when: 251.32 (1) the obligor requests it in writing to the public 251.33 authority; 251.34 (2) the obligor fails to make the payments as required in 251.35 the support order and is at least 30 days in arrears; 251.36 (3) the obligee or obligor serves on the public authority a 252.1 copy of the notice of income withholding, a copy of the court's 252.2 order, an application, and the fee to use the public authority's 252.3 collection services; or 252.4 (4) the public authority commences withholding according to 252.5 section 518.5512, subdivision 6, paragraph (a), clause (4). 252.6 (c) For cases in which the public authority is not 252.7 providing child support services to the parties, income 252.8 withholding under this subdivision shall take effect when an 252.9 obligee requests it by making a written motion to the court and 252.10 the court finds that previous support has not been paid on a 252.11 timely consistent basis or that the obligor has threatened 252.12 expressly or otherwise to stop or reduce payments. 252.13 (d) Within two days after the public authority commences 252.14 withholding under this subdivision, the public authority shall 252.15 send to the obligor at the obligor's last known address, notice 252.16 that withholding has commenced. The notice shall include the 252.17 information provided to the payor of funds in the notice of 252.18 withholding. 252.19 Subd. 8. [CONTEST.] (a) The obligor may contest 252.20 withholding under subdivision 7 on the limited grounds that the 252.21 withholding or the amount withheld is improper due to mistake of 252.22 fact. If the obligor chooses to contest the withholding, the 252.23 obligor must do so no later than 15 days after the employer 252.24 commences withholding, by doing all of the following: 252.25 (1) file a request for contested hearing according to 252.26 section 518.5511, subdivision 4, and include in the request the 252.27 alleged mistake of fact; 252.28 (2) serve a copy of the request for contested hearing upon 252.29 the public authority and the obligee; and 252.30 (3) secure a date for the contested hearing no later than 252.31 45 days after receiving notice that withholding has commenced. 252.32 (b) The income withholding must remain in place while the 252.33 obligor contests the withholding. 252.34 (c) If the court finds that an arrearage of at least 30 252.35 days existed as of the date of the notice of withholding, the 252.36 court shall order income withholding to continue. If the court 253.1 finds a mistake in the amount of the arrearage to be withheld, 253.2 the court shall continue the income withholding, but it shall 253.3 correct the amount of the arrearage to be withheld. 253.4 Subd. 9. [PRIORITY.] (a) An order for or notice of 253.5 withholding under this section or execution or garnishment upon 253.6 a judgment for child support arrearage or preadjudicated 253.7 expenses shall have priority over an attachment, execution, 253.8 garnishment, or wage assignment and shall not be subject to the 253.9 statutory limitations on amounts levied against the income of 253.10 the obligor. Amounts withheld from an employee's income must 253.11 not exceed the maximum permitted under the Consumer Credit 253.12 Protection Act, United States Code, title 15, section 1673(b). 253.13 (b) If more than one order for or notice of withholding 253.14 exists involving the same obligor and child, the public 253.15 authority shall enforce the most current order or notice. An 253.16 order for or notice of withholding that was previously 253.17 implemented according to this section shall end as of the date 253.18 of the most current order. The public authority shall notify 253.19 the payor of funds to withhold under the most current 253.20 withholding order or notice. 253.21 Subd. 10. [ARREARAGE ORDER.] (a) This section does not 253.22 prevent the court from ordering the payor of funds to withhold 253.23 amounts to satisfy the obligor's previous arrearage in support 253.24 order payments. This remedy shall not operate to exclude 253.25 availability of other remedies to enforce judgments. The 253.26 employer or payor of funds shall withhold from the obligor's 253.27 income an additional amount equal to 20 percent of the monthly 253.28 child support or maintenance obligation until the arrearage is 253.29 paid. 253.30 (b) Notwithstanding any law to the contrary, funds from 253.31 income sources included in section 518.54, subdivision 6, 253.32 whether periodic or lump sum, are not exempt from attachment or 253.33 execution upon a judgment for child support arrearage. 253.34 (c) Absent an order to the contrary, if an arrearage exists 253.35 at the time a support order would otherwise terminate, income 253.36 withholding shall continue in effect or may be implemented in an 254.1 amount equal to the support order plus an additional 20 percent 254.2 of the monthly child support obligation, until all arrears have 254.3 been paid in full. 254.4 Subd. 11. [LUMP-SUM PAYMENTS.] Before transmittal to the 254.5 obligor of a lump-sum payment of $500 or more including, but not 254.6 limited to, severance pay, accumulated sick pay, vacation pay, 254.7 bonuses, commissions, or other pay or benefits, a payor of funds: 254.8 (1) who has been served with an order for or notice of 254.9 income withholding under this section shall: 254.10 (i) notify the public authority of the lump-sum payment 254.11 that is to be paid to the obligor; 254.12 (ii) hold the lump sum payment for 30 days after the date 254.13 on which the lump sum payment would otherwise have been paid to 254.14 the obligor, notwithstanding sections 181.08, 181.101, 181.11, 254.15 181.13, and 181.145; and 254.16 (iii) upon order of the court, and after a showing of past 254.17 willful nonpayment of support, pay any specified amount of the 254.18 lump-sum payment to the public authority for future support; or 254.19 (2) shall pay the lessor of the amount of the lump-sum 254.20 payment or the total amount of the judgment and arrearages upon 254.21 service by United States mail of a sworn affidavit from the 254.22 public authority or a court order that includes the following 254.23 information: 254.24 (i) that a judgment entered pursuant to section 548.091, 254.25 subdivision 1a, exists against the obligor, or that other 254.26 support arrearages exist; 254.27 (ii) the current balance of the judgment or arrearage; and 254.28 (iii) that a portion of the judgment or arrearage remains 254.29 unpaid. 254.30 The Consumer Credit Protection Act, United States Code, 254.31 title 15, section 1673(b), does not apply to lump-sum payments. 254.32 Subd. 12. [INTERSTATE INCOME WITHHOLDING.] (a) Upon 254.33 receipt of an order for support entered in another state and the 254.34 specified documentation from an authorized agency, the public 254.35 authority shall implement income withholding. A payor of funds 254.36 in this state shall withhold income under court orders for 255.1 withholding issued by other states or territories. 255.2 (b) An employer receiving an income withholding notice from 255.3 another state shall withhold and distribute the funds as 255.4 directed in the withholding notice and shall apply the law of 255.5 the obligor's principal place of employment when determining: 255.6 (1) the employer's fee for processing an income withholding 255.7 notice; 255.8 (2) the maximum amount permitted to be withheld from the 255.9 obligor's income; and 255.10 (3) deadlines for implementing and forwarding the child 255.11 support payment. 255.12 (c) An obligor may contest withholding under this 255.13 subdivision pursuant to section 518C.506. 255.14 Subd. 13. [ORDER TERMINATING INCOME WITHHOLDING.] An order 255.15 terminating income withholding must specify the effective date 255.16 of the order and reference the initial order or decree that 255.17 establishes the support obligation and shall be entered once the 255.18 following conditions have been met: 255.19 (1) the obligor serves written notice of the application 255.20 for termination of income withholding by mail upon the obligee 255.21 at the obligee's last known mailing address, and a duplicate 255.22 copy of the application is served on the public authority; 255.23 (2) the application for termination of income withholding 255.24 specifies the event that terminates the support obligation, the 255.25 effective date of the termination of the support obligation, and 255.26 the applicable provisions of the order or decree that 255.27 established the support obligation; 255.28 (3) the application includes the complete name of the 255.29 obligor's payor of funds, the business mailing address, the 255.30 court action and court file number, and the support and 255.31 collections file number, if known; and 255.32 (4) after receipt of the application for termination of 255.33 income withholding, the obligee or the public authority fails 255.34 within 20 days to request a contested hearing on the issue of 255.35 whether income withholding of support should continue clearly 255.36 specifying the basis for the continued support obligation and, 256.1 ex parte, to stay the service of the order terminating income 256.2 withholding upon the obligor's payor of funds, pending the 256.3 outcome of the contest hearing. 256.4 Subd. 14. [TERMINATION BY PUBLIC AUTHORITY.] If the public 256.5 authority determines that income withholding is no longer 256.6 applicable, the public authority shall notify the obligee and 256.7 the obligor of intent to terminate income withholding. 256.8 Five days following notification to the obligee and 256.9 obligor, the public authority shall issue a notice to the payor 256.10 of funds terminating income withholding, without a requirement 256.11 for a court order unless the obligee has requested a contested 256.12 hearing under section 518.5511, subdivision 4. 256.13 Subd. 15. [CONTRACT FOR SERVICE.] To carry out the 256.14 provisions of this section, the public authority responsible for 256.15 child support enforcement may contract for services, including 256.16 the use of electronic funds transfer. 256.17 Subd. 16. [WAIVER.] (a) If child support or maintenance is 256.18 not assigned under section 256.741, the court may waive the 256.19 requirements of this section if the court finds there is no 256.20 arrearage in child support and maintenance as of the date of the 256.21 hearing and: 256.22 (1) one party demonstrates and the court finds there is 256.23 good cause to waive the requirements of this section or to 256.24 terminate an order for or notice of income withholding 256.25 previously entered under this section; or 256.26 (2) all parties reach an agreement and the agreement is 256.27 approved by the court after a finding that the agreement is 256.28 likely to result in regular and timely payments. The court's 256.29 findings waiving the requirements of this paragraph shall 256.30 include a written explanation of the reasons why income 256.31 withholding would not be in the best interests of the child. 256.32 In addition to the other requirements in this subdivision, 256.33 if the case involves a modification of support, the court shall 256.34 make a finding that support has been timely made. 256.35 (b) If the court waives income withholding, the obligee or 256.36 obligor may at any time request income withholding under 257.1 subdivision 7. 257.2 Subd. 17. [NONLIABILITY; PAYOR OF FUNDS.] A payor of funds 257.3 who complies with an income withholding order or notice of 257.4 withholding according to this chapter or chapter 518C that 257.5 appears regular on its face shall not be subject to civil 257.6 liability to any individual or agency for taking action in 257.7 compliance with the order or notice. 257.8 Subd. 18. [ELECTRONIC TRANSMISSION.] Orders or notices for 257.9 withholding under this section may be transmitted for 257.10 enforcement purposes by electronic means. 257.11 Sec. 53. Minnesota Statutes 1996, section 518.616, is 257.12 amended by adding a subdivision to read: 257.13 Subd. 1a. [COURT ORDERS FOR CHILDREN RECEIVING PUBLIC 257.14 ASSISTANCE.] For any order enforced by the public authority for 257.15 children receiving assistance under any of the programs referred 257.16 to in section 256.741, subdivision 8, the public authority may 257.17 seek a court order requiring the obligor to participate in work 257.18 activities if the obligor is in arrears in child support. Work 257.19 activities include the following: 257.20 (1) unsubsidized employment; 257.21 (2) subsidized private sector employment; 257.22 (3) subsidized public sector employment or work experience 257.23 only if sufficient private sector employment is unavailable; 257.24 (4) on-the-job training; 257.25 (5) job search and job readiness; 257.26 (6) education directly related to employment, in the case 257.27 of an obligor who: 257.28 (i) has not attained 20 years of age; and 257.29 (ii) has not received a high school diploma or certificate 257.30 of high school equivalency; 257.31 (7) job skills training directly related to employment; and 257.32 (8) satisfactory attendance at a secondary school in the 257.33 case of an obligor who: 257.34 (i) has not completed secondary school; and 257.35 (ii) is a dependent child, or a head of a household and who 257.36 has not attained 20 years of age; and 258.1 (9) vocational educational training, not to exceed 12 258.2 months with respect to any individual. 258.3 Sec. 54. Minnesota Statutes 1996, section 518.68, 258.4 subdivision 2, is amended to read: 258.5 Subd. 2. [CONTENTS.] The required notices must be 258.6 substantially as follows: 258.7 IMPORTANT NOTICE 258.8 1. PAYMENTS TO PUBLIC AGENCY 258.9PursuantAccording to Minnesota Statutes, section 518.551, 258.10 subdivision 1, payments ordered for maintenance and support 258.11 must be paid to the public agency responsible for child 258.12 support enforcement as long as the person entitled to 258.13 receive the payments is receiving or has applied for public 258.14 assistance or has applied for support and maintenance 258.15 collection services. MAIL PAYMENTS TO: 258.16 2. DEPRIVING ANOTHER OF CUSTODIAL OR PARENTAL RIGHTS -- A 258.17 FELONY 258.18 A person may be charged with a felony who conceals a minor 258.19 child or takes, obtains, retains, or fails to return a 258.20 minor child from or to the child's parent (or person with 258.21 custodial or visitation rights),pursuantaccording to 258.22 Minnesota Statutes, section 609.26. A copy of that section 258.23 is available from any district court clerk. 258.24 3. RULES OF SUPPORT, MAINTENANCE, VISITATION 258.25 (a) Payment of support or spousal maintenance is to be as 258.26 ordered, and the giving of gifts or making purchases of 258.27 food, clothing, and the like will not fulfill the 258.28 obligation. 258.29 (b) Payment of support must be made as it becomes due, and 258.30 failure to secure or denial of rights of visitation is NOT 258.31 an excuse for nonpayment, but the aggrieved party must seek 258.32 relief through a proper motion filed with the court. 258.33 (c) Nonpayment of support is not grounds to deny 258.34 visitation. The party entitled to receive support may 258.35 apply for support and collection services, file a contempt 258.36 motion, or obtain a judgment as provided in Minnesota 259.1 Statutes, section 548.091. 259.2 (d) The payment of support or spousal maintenance takes 259.3 priority over payment of debts and other obligations. 259.4 (e) A party who accepts additional obligations of support 259.5 does so with the full knowledge of the party's prior 259.6 obligation under this proceeding. 259.7 (f) Child support or maintenance is based on annual income, 259.8 and it is the responsibility of a person with seasonal 259.9 employment to budget income so that payments are made 259.10 throughout the year as ordered. 259.11 (g) If there is a layoff or a pay reduction, support may be 259.12 reduced as of the time of the layoff or pay reduction if a 259.13 motion to reduce the support is served and filed with the 259.14 court at that time, but any such reduction must be ordered 259.15 by the court. The court is not permitted to reduce support 259.16 retroactively, except as provided in Minnesota Statutes, 259.17 section 518.64, subdivision 2, paragraph (c). 259.18 4. PARENTAL RIGHTS FROM MINNESOTA STATUTES, SECTION 518.17, 259.19 SUBDIVISION 3 259.20 Unless otherwise provided by the Court: 259.21 (a) Each party has the right of access to, and to receive 259.22 copies of, school, medical, dental, religious training, and 259.23 other important records and information about the minor 259.24 children. Each party has the right of access to 259.25 information regarding health or dental insurance available 259.26 to the minor children. Presentation of a copy of this 259.27 order to the custodian of a record or other information 259.28 about the minor children constitutes sufficient 259.29 authorization for the release of the record or information 259.30 to the requesting party. 259.31 (b) Each party shall keep the other informed as to the name 259.32 and address of the school of attendance of the minor 259.33 children. Each party has the right to be informed by 259.34 school officials about the children's welfare, educational 259.35 progress and status, and to attend school and parent 259.36 teacher conferences. The school is not required to hold a 260.1 separate conference for each party. 260.2 (c) In case of an accident or serious illness of a minor 260.3 child, each party shall notify the other party of the 260.4 accident or illness, and the name of the health care 260.5 provider and the place of treatment. 260.6 (d) Each party has the right of reasonable access and 260.7 telephone contact with the minor children. 260.8 5. WAGE AND INCOME DEDUCTION OF SUPPORT AND MAINTENANCE 260.9 Child support and/or spousal maintenance may be withheld 260.10 from income, with or without notice to the person obligated 260.11 to pay, when the conditions of Minnesota Statutes, sections 260.12 518.611 and 518.613, have been met. A copy of those 260.13 sections is available from any district court clerk. 260.14 6. CHANGE OF ADDRESS OR RESIDENCE 260.15 Unless otherwise ordered,the person responsible to make260.16support or maintenance paymentseach party shall notify the 260.17person entitled to receive the paymentother party, the 260.18 court, and the public authority responsible for collection, 260.19 if applicable, ofa change of address or residencethe 260.20 following information within60ten days ofthe address or260.21residence changeany change: the residential and mailing 260.22 address, telephone number, driver's license number, social 260.23 security number, and name, address, and telephone number of 260.24 the employer. 260.25 7. COST OF LIVING INCREASE OF SUPPORT AND MAINTENANCE 260.26 Child support and/or spousal maintenance may be adjusted 260.27 every two years based upon a change in the cost of living 260.28 (using Department of Labor Consumer Price Index .........., 260.29 unless otherwise specified in this order) when the 260.30 conditions of Minnesota Statutes, section 518.641, are met. 260.31 Cost of living increases are compounded. A copy of 260.32 Minnesota Statutes, section 518.641, and forms necessary to 260.33 request or contest a cost of living increase are available 260.34 from any district court clerk. 260.35 8. JUDGMENTS FOR UNPAID SUPPORT 260.36 If a person fails to make a child support payment, the 261.1 payment owed becomes a judgment against the person 261.2 responsible to make the payment by operation of law on or 261.3 after the date the payment is due, and the person entitled 261.4 to receive the payment or the public agency may obtain 261.5 entry and docketing of the judgment WITHOUT NOTICE to the 261.6 person responsible to make the payment under Minnesota 261.7 Statutes, section 548.091. Interest begins to accrue on a 261.8 payment or installment of child support whenever the unpaid 261.9 amount due is greater than the current support due, 261.10pursuantaccording to Minnesota Statutes, section 548.091, 261.11 subdivision 1a. 261.12 9. JUDGMENTS FOR UNPAID MAINTENANCE 261.13 A judgment for unpaid spousal maintenance may be entered 261.14 when the conditions of Minnesota Statutes, section 548.091, 261.15 are met. A copy of that section is available from any 261.16 district court clerk. 261.17 10. ATTORNEY FEES AND COLLECTION COSTS FOR ENFORCEMENT OF CHILD 261.18 SUPPORT 261.19 A judgment for attorney fees and other collection costs 261.20 incurred in enforcing a child support order will be entered 261.21 against the person responsible to pay support when the 261.22 conditions of section 518.14, subdivision 2, are met. A 261.23 copy of section 518.14 and forms necessary to request or 261.24 contest these attorney fees and collection costs are 261.25 available from any district court clerk. 261.26 11. VISITATION EXPEDITOR PROCESS 261.27 On request of either party or on its own motion, the court 261.28 may appoint a visitation expeditor to resolve visitation 261.29 disputes under Minnesota Statutes, section 518.1751. A 261.30 copy of that section and a description of the expeditor 261.31 process is available from any district court clerk. 261.32 12. VISITATION REMEDIES AND PENALTIES 261.33 Remedies and penalties for the wrongful denial of 261.34 visitation rights are available under Minnesota Statutes, 261.35 section 518.175, subdivision 6. These include compensatory 261.36 visitation; civil penalties; bond requirements; contempt; 262.1 and reversal of custody. A copy of that subdivision and 262.2 forms for requesting relief are available from any district 262.3 court clerk. 262.4 Sec. 55. Minnesota Statutes 1996, section 518C.101, is 262.5 amended to read: 262.6 518C.101 [DEFINITIONS.] 262.7 In this chapter: 262.8 (a) "Child" means an individual, whether over or under the 262.9 age of majority, who is or is alleged to be owed a duty of 262.10 support by the individual's parent or who is or is alleged to be 262.11 the beneficiary of a support order directed to the parent. 262.12 (b) "Child support order" means a support order for a 262.13 child, including a child who has attained the age of majority 262.14 under the law of the issuing state. 262.15 (c) "Duty of support" means an obligation imposed or 262.16 imposable by law to provide support for a child, spouse, or 262.17 former spouse, including an unsatisfied obligation to provide 262.18 support. 262.19 (d) "Home state" means the state in which a child lived 262.20 with a parent or a person acting as parent for at least six 262.21 consecutive months immediately preceding the time of filing of a 262.22 petition or comparable pleading for support and, if a child is 262.23 less than six months old, the state in which the child lived 262.24 from birth with any of them. A period of temporary absence of 262.25 any of them is counted as part of the six-month or other period. 262.26 (e) "Income" includes earnings or other periodic 262.27 entitlements to money from any source and any other property 262.28 subject to withholding for support under the law of this state. 262.29 (f) "Income-withholding order" means an order or other 262.30 legal process directed to an obligor's employer or other debtor 262.31 under section 518.611or 518.613, to withhold support from the 262.32 income of the obligor. 262.33 (g) "Initiating state" means a stateinfrom which a 262.34 proceeding is forwarded or in which a proceeding is filed for 262.35 forwarding to a responding state under this chapter or a law or 262.36 procedure substantially similar to this chapter, the uniform 263.1 reciprocal enforcement of support act, or the revised uniform263.2reciprocal enforcement of support act is filed for forwarding to263.3a responding state. 263.4 (h) "Initiating tribunal" means the authorized tribunal in 263.5 an initiating state. 263.6 (i) "Issuing state" means the state in which a tribunal 263.7 issues a support order or renders a judgment determining 263.8 parentage. 263.9 (j) "Issuing tribunal" means the tribunal that issues a 263.10 support order or renders a judgment determining parentage. 263.11 (k) "Law" includes decisional and statutory law and rules 263.12 and regulations having the force of law. 263.13 (l) "Obligee" means: 263.14 (1) an individual to whom a duty of support is or is 263.15 alleged to be owed or in whose favor a support order has been 263.16 issued or a judgment determining parentage has been rendered; 263.17 (2) a state or political subdivision to which the rights 263.18 under a duty of support or support order have been assigned or 263.19 which has independent claims based on financial assistance 263.20 provided to an individual obligee; or 263.21 (3) an individual seeking a judgment determining parentage 263.22 of the individual's child. 263.23 (m) "Obligor" means an individual, or the estate of a 263.24 decedent: 263.25 (1) who owes or is alleged to owe a duty of support; 263.26 (2) who is alleged but has not been adjudicated to be a 263.27 parent of a child; or 263.28 (3) who is liable under a support order. 263.29 (n)"Petition" means a petition or comparable pleading used263.30pursuant to section 518.5511.263.31(o)"Register" means to file a support order or judgment 263.32 determining parentage in the office of the court administrator. 263.33(p)(o) "Registering tribunal" means a tribunal in which a 263.34 support order is registered. 263.35(q)(p) "Responding state" means a statetoin which a 263.36 proceeding is filed or to which a proceeding is forwarded for 264.1 filing from an initiating state under this chapter or a law or 264.2 procedure substantially similar to this chapter, the uniform 264.3 reciprocal enforcement of support act, or the revised uniform 264.4 reciprocal enforcement of support act. 264.5(r)(q) "Responding tribunal" means the authorized tribunal 264.6 in a responding state. 264.7(s)(r) "Spousal support order" means a support order for a 264.8 spouse or former spouse of the obligor. 264.9(t)(s) "State" means a state of the United States, the 264.10 District of Columbia,the Commonwealth ofPuerto Rico, the 264.11 United States Virgin Islands, or any territory or insular 264.12 possession subject to the jurisdiction of the United 264.13 States."State"This term also includes: 264.14 (1) an Indian tribe; and 264.15 (2) a foreign jurisdiction that has enacted a law or 264.16 established procedures for issuance and enforcement of support 264.17 ordersthatwhich are substantially similar to the procedures 264.18 under this chapter, the Uniform Reciprocal Enforcement of 264.19 Support Act, or the Revised Uniform Reciprocal Enforcement of 264.20 Support Act. 264.21(u)(t) "Support enforcement agency" means a public 264.22 official or agency authorized to seek: 264.23 (1)seekenforcement of support orders or laws relating to 264.24 the duty of support; 264.25 (2)seekestablishment or modification of child support; 264.26 (3)seekdetermination of parentage; or 264.27 (4) to locate obligors or their assets. 264.28(v)(u) "Support order" means a judgment, decree, or order, 264.29 whether temporary, final, or subject to modification, for the 264.30 benefit of a child, a spouse, or a former spouse, which provides 264.31 for monetary support, health care, arrearages, or reimbursement, 264.32 and may include related costs and fees, interest, income 264.33 withholding, attorney's fees, and other relief. 264.34(w)(v) "Tribunal" means a court, administrative agency, or 264.35 quasi-judicial entity authorized to establish, enforce, or 264.36 modify support orders or to determine parentage. 265.1 Sec. 56. Minnesota Statutes 1996, section 518C.204, is 265.2 amended to read: 265.3 518C.204 [SIMULTANEOUS PROCEEDINGS IN ANOTHER STATE.] 265.4 (a) A tribunal of this state may exercise jurisdiction to 265.5 establish a support order if the petition or comparable pleading 265.6 is filed after apetition or comparablepleading is filed in 265.7 another state only if: 265.8 (1) the petition or comparable pleading in this state is 265.9 filed before the expiration of the time allowed in the other 265.10 state for filing a responsive pleading challenging the exercise 265.11 of jurisdiction by the other state; 265.12 (2) the contesting party timely challenges the exercise of 265.13 jurisdiction in the other state; and 265.14 (3) if relevant, this state is the home state of the child. 265.15 (b) A tribunal of this state may not exercise jurisdiction 265.16 to establish a support order if the petition or comparable 265.17 pleading is filed before a petition or comparable pleading is 265.18 filed in another state if: 265.19 (1) the petition or comparable pleading in the other state 265.20 is filed before the expiration of the time allowed in this state 265.21 for filing a responsive pleading challenging the exercise of 265.22 jurisdiction by this state; 265.23 (2) the contesting party timely challenges the exercise of 265.24 jurisdiction in this state; and 265.25 (3) if relevant, the other state is the home state of the 265.26 child. 265.27 Sec. 57. Minnesota Statutes 1996, section 518C.205, is 265.28 amended to read: 265.29 518C.205 [CONTINUING, EXCLUSIVE JURISDICTION.] 265.30 (a) A tribunal of this state issuing a support order 265.31 consistent with the law of this state has continuing, exclusive 265.32 jurisdiction over a child support order: 265.33 (1) as long as this state remains the residence of the 265.34 obligor, the individual obligee, or the child for whose benefit 265.35 the support order is issued; or 265.36 (2) untileach individual party hasall of the parties who 266.1 are individuals have filed writtenconsentconsents with the 266.2 tribunal of this state for a tribunal of another state to modify 266.3 the order and assume continuing, exclusive jurisdiction. 266.4 (b) A tribunal of this state issuing a child support order 266.5 consistent with the law of this state may not exercise its 266.6 continuing jurisdiction to modify the order if the order has 266.7 been modified by a tribunal of another statepursuantaccording 266.8 to this section or a law substantially similar to this chapter. 266.9 (c) If a child support order of this state is modified by a 266.10 tribunal of another statepursuantaccording to this section or 266.11 a law substantially similar to this chapter, a tribunal of this 266.12 state loses its continuing, exclusive jurisdiction with regard 266.13 to prospective enforcement of the order issued in this state, 266.14 and may only: 266.15 (1) enforce the order that was modified as to amounts 266.16 accruing before the modification; 266.17 (2) enforce nonmodifiable aspects of that order; and 266.18 (3) provide other appropriate relief for violations of that 266.19 order which occurred before the effective date of the 266.20 modification. 266.21 (d) A tribunal of this state shall recognize the 266.22 continuing, exclusive jurisdiction of a tribunal of another 266.23 state which has issued a child support orderpursuantaccording 266.24 to this section or a law substantially similar to this chapter. 266.25 (e) A temporary support order issued ex parte or pending 266.26 resolution of a jurisdictional conflict does not create 266.27 continuing, exclusive jurisdiction in the issuing tribunal. 266.28 (f) A tribunal of this state issuing a support order 266.29 consistent with the law of this state has continuing, exclusive 266.30 jurisdiction over a spousal support order throughout the 266.31 existence of the support obligation. A tribunal of this state 266.32 may not modify a spousal support order issued by a tribunal of 266.33 another state having continuing, exclusive jurisdiction over 266.34 that order under the law of that state. 266.35 Sec. 58. Minnesota Statutes 1996, section 518C.207, is 266.36 amended to read: 267.1 518C.207 [RECOGNITION OF CONTROLLING CHILD SUPPORT 267.2ORDERSORDER.] 267.3 (a)If a proceeding is brought under this chapter, and one267.4or more child support orders have been issued in this or another267.5state with regard to an obligor and a child, a tribunal of this267.6state shall apply the following rules in determining which order267.7to recognize for purposes of continuing, exclusive jurisdiction:267.8(1)If a proceeding is brought under this chapter and only 267.9 one tribunal has issued a child support order, the order of that 267.10 tribunal is controlling and must be recognized. 267.11 (b) If a proceeding is brought under this chapter, and two 267.12 or more child support orders have been issued by tribunals of 267.13 this state or another state with regard to the same obligor and 267.14 child, a tribunal of this state shall apply the rules in clauses 267.15 (1) to (3) determining which order to recognize for purposes of 267.16 continuing, exclusive jurisdiction. 267.17 (1) If only one of the tribunals would have continuing, 267.18 exclusive jurisdiction under this chapter, the order of that 267.19 tribunal is controlling and must be recognized. 267.20 (2) Iftwo ormore than one of the tribunals would have 267.21issued child support orders for the same obligor and child, and267.22only one of the tribunals would have continuing, exclusive267.23jurisdiction under this chapter, the order of that tribunal must267.24be recognizedcontinuing, exclusive jurisdiction under this 267.25 chapter, an order issued by a tribunal in the current home state 267.26 of the child is controlling and must be recognized, but if an 267.27 order has not been issued in the current home state of the 267.28 child, the most recently issued order controls and must be 267.29 recognized. 267.30 (3) Iftwo or morenone of the tribunals would haveissued267.31child support orders for the same obligor and child, and more267.32than one of the tribunals would havecontinuing, exclusive 267.33 jurisdiction under this chapter,an order issued by a tribunal267.34in the current home state of the child must be recognized, but267.35if an order has not been issued in the current home state of the267.36child, the order most recently issued must be recognizedthe 268.1 tribunal of this state having jurisdiction over the parties 268.2 shall issue a child support order, which controls and must be 268.3 recognized. 268.4(4)(c) If two or moretribunals have issuedchild support 268.5 orders have been issued for the same obligor and child, and none268.6of the tribunals would have continuing, exclusive jurisdiction268.7under this chapter, the tribunal of this state may issue a child268.8support order, which must be recognizedand if the obligor or 268.9 the individual obligee resides in this state, a party may 268.10 request a tribunal of this state to determine which order is 268.11 controlling and must be recognized under paragraph (b). The 268.12 request must be accompanied by a certified copy of every support 268.13 order in effect. The requesting party shall give notice of the 268.14 request to each party whose rights may be affected by the 268.15 determination. 268.16(b)(d) The tribunal thathasissuedanthe controlling 268.17 orderrecognizedunder paragraph (a), (b), or (c) is the 268.18 tribunalhavingthat has continuing, exclusive 268.19 jurisdiction under section 518C.205. 268.20 (e) A tribunal of this state which determines by order the 268.21 identity of the controlling order under paragraph (b), clause 268.22 (1) or (2), or which issues a new controlling order under 268.23 paragraph (b), clause (3), shall state in that order the basis 268.24 upon which the tribunal made its determination. 268.25 (f) Within 30 days after issuance of an order determining 268.26 the identity of the controlling order, the party obtaining the 268.27 order shall file a certified copy of the order with each 268.28 tribunal that issued or registered an earlier order of child 268.29 support. A party who obtains the order and fails to file a 268.30 certified copy is subject to appropriate sanctions by a tribunal 268.31 in which the issue of failure to file arises. The failure to 268.32 file does not affect the validity or enforceability of the 268.33 controlling order. 268.34 Sec. 59. Minnesota Statutes 1996, section 518C.301, is 268.35 amended to read: 268.36 518C.301 [PROCEEDINGS UNDER THIS CHAPTER.] 269.1 (a) Except as otherwise provided in this chapter, sections 269.2 518C.301 to 518C.319 apply to all proceedings under this chapter. 269.3 (b) This chapter provides for the following proceedings: 269.4 (1) establishment of an order for spousal support or child 269.5 supportpursuantaccording to section 518C.401; 269.6 (2) enforcement of a support order and income-withholding 269.7 order of another state without registrationpursuantaccording 269.8 tosectionssection 518C.501and 518C.502; 269.9 (3) registration of an order for spousal support or child 269.10 support of another state for enforcementpursuantaccording to 269.11 sections 518C.601 to 518C.612; 269.12 (4) modification of an order for child support or spousal 269.13 support issued by a tribunal of this statepursuantaccording to 269.14 sections 518C.203 to 518C.206; 269.15 (5) registration of an order for child support of another 269.16 state for modificationpursuantaccording to sections 518C.601 269.17 to 518C.612; 269.18 (6) determination of parentagepursuantaccording to 269.19 section 518C.701; and 269.20 (7) assertion of jurisdiction over nonresidentspursuant269.21 according to sections 518C.201 and 518C.202. 269.22 (c) An individual petitioner or a support enforcement 269.23 agency may commence a proceeding authorized under this chapter 269.24 by filing a petition in an initiating tribunal for forwarding to 269.25 a responding tribunal or by filing a petition or a comparable 269.26 pleading directly in a tribunal of another state which has or 269.27 can obtain personal jurisdiction over the respondent. 269.28 Sec. 60. Minnesota Statutes 1996, section 518C.304, is 269.29 amended to read: 269.30 518C.304 [DUTIES OF INITIATING TRIBUNAL.] 269.31 (a) Upon the filing of a petition authorized by this 269.32 chapter, an initiating tribunal of this state shall forward 269.33 three copies of the petition and its accompanying documents: 269.34 (1) to the responding tribunal or appropriate support 269.35 enforcement agency in the responding state; or 269.36 (2) if the identity of the responding tribunal is unknown, 270.1 to the state information agency of the responding state with a 270.2 request that they be forwarded to the appropriate tribunal and 270.3 that receipt be acknowledged. 270.4 (b) If a responding state has not enacted the language in 270.5 this chapter or a law or procedure substantially similar to this 270.6 chapter, a tribunal of this state may issue a certificate or 270.7 other document and make a finding required by the law of the 270.8 responding state. If the responding state is a foreign 270.9 jurisdiction, the tribunal may specify the amount of support 270.10 sought and provide other documents necessary to satisfy the 270.11 requirements of the responding state. 270.12 Sec. 61. Minnesota Statutes 1996, section 518C.305, is 270.13 amended to read: 270.14 518C.305 [DUTIES AND POWERS OF RESPONDING TRIBUNAL.] 270.15 (a) When a responding tribunal of this state receives a 270.16 petition or comparable pleading from an initiating tribunal or 270.17 directlypursuantaccording to section 518C.301, paragraph (c), 270.18 it shall cause the petition or pleading to be filed and notify 270.19 the petitioner by first class mail where and when it was filed. 270.20 (b) A responding tribunal of this state, to the extent 270.21 otherwise authorized by law, may do one or more of the following: 270.22 (1) issue or enforce a support order, modify a child 270.23 support order, or render a judgment to determine parentage; 270.24 (2) order an obligor to comply with a support order, 270.25 specifying the amount and the manner of compliance; 270.26 (3) order income withholding; 270.27 (4) determine the amount of any arrearages, and specify a 270.28 method of payment; 270.29 (5) enforce orders by civil or criminal contempt, or both; 270.30 (6) set aside property for satisfaction of the support 270.31 order; 270.32 (7) place liens and order execution on the obligor's 270.33 property; 270.34 (8) order an obligor to keep the tribunal informed of the 270.35 obligor's current residential address, telephone number, 270.36 employer, address of employment, and telephone number at the 271.1 place of employment; 271.2 (9) issue a bench warrant for an obligor who has failed 271.3 after proper notice to appear at a hearing ordered by the 271.4 tribunal and enter the bench warrant in any local and state 271.5 computer systems for criminal warrants; 271.6 (10) order the obligor to seek appropriate employment by 271.7 specified methods; 271.8 (11) award reasonable attorney's fees and other fees and 271.9 costs; and 271.10 (12) grant any other available remedy. 271.11 (c) A responding tribunal of this state shall include in a 271.12 support order issued under this chapter, or in the documents 271.13 accompanying the order, the calculations on which the support 271.14 order is based. 271.15 (d) A responding tribunal of this state may not condition 271.16 the payment of a support order issued under this chapter upon 271.17 compliance by a party with provisions for visitation. 271.18 (e) If a responding tribunal of this state issues an order 271.19 under this chapter, the tribunal shall send a copy of the order 271.20 by first class mail to the petitioner and the respondent and to 271.21 the initiating tribunal, if any. 271.22 Sec. 62. Minnesota Statutes 1996, section 518C.310, is 271.23 amended to read: 271.24 518C.310 [DUTIES OF STATE INFORMATION AGENCY.] 271.25 (a) The unit within the department of human services that 271.26 receives and disseminates incoming interstate actions under 271.27 title IV-D of the Social Security Act from section 518C.02, 271.28 subdivision 1a, is the state information agency under this 271.29 chapter. 271.30 (b) The state information agency shall: 271.31 (1) compile and maintain a current list, including 271.32 addresses, of the tribunals in this state which have 271.33 jurisdiction under this chapter and any support enforcement 271.34 agencies in this state and transmit a copy to the state 271.35 information agency of every other state; 271.36 (2) maintain a register of tribunals and support 272.1 enforcement agencies received from other states; 272.2 (3) forward to the appropriate tribunal in the place in 272.3 this state in which the individual obligee or the obligor 272.4 resides, or in which the obligor's property is believed to be 272.5 located, all documents concerning a proceeding under this 272.6 chapter received from an initiating tribunal or the state 272.7 information agency of the initiating state; and 272.8 (4) obtain information concerning the location of the 272.9 obligor and the obligor's property within this state not exempt 272.10 from execution, by such means as postal verification and federal 272.11 or state locator services, examination of telephone directories, 272.12 requests for the obligor's address from employers, and 272.13 examination of governmental records, including, to the extent 272.14 not prohibited by other law, those relating to real property, 272.15 vital statistics, law enforcement, taxation, motor vehicles, 272.16 driver's licenses, and social security; and272.17(5) determine which foreign jurisdictions and Indian tribes272.18have substantially similar procedures for issuance and272.19enforcement of support orders. The state information agency272.20shall compile and maintain a list, including addresses, of all272.21these foreign jurisdictions and Indian tribes. The state272.22information agency shall make this list available to all state272.23tribunals and all support enforcement agencies. 272.24 Sec. 63. Minnesota Statutes 1996, section 518C.401, is 272.25 amended to read: 272.26 518C.401 [PETITION TO ESTABLISH SUPPORT ORDER.] 272.27 (a) If a support order entitled to recognition under this 272.28 chapter has not been issued, a responding tribunal of this state 272.29 may issue a support order if: 272.30 (1) the individual seeking the order resides in another 272.31 state; or 272.32 (2) the support enforcement agency seeking the order is 272.33 located in another state. 272.34 (b) The tribunal may issue a temporary child support order 272.35 if: 272.36 (1) the respondent has signed a verified statement 273.1 acknowledging parentage; 273.2 (2) the respondent has been determined byor pursuant to273.3 law to be the parent; or 273.4 (3) there is other clear and convincing evidence that the 273.5 respondent is the child's parent. 273.6 (c) Upon a finding, after notice and opportunity to be 273.7 heard, that an obligor owes a duty of support, the tribunal 273.8 shall issue a support order directed to the obligor and may 273.9 issue other orderspursuantaccording to section 518C.305. 273.10 Sec. 64. Minnesota Statutes 1996, section 518C.501, is 273.11 amended to read: 273.12 518C.501 [RECOGNITIONEMPLOYER'S RECEIPT OF 273.13 INCOME-WITHHOLDING ORDER OF ANOTHER STATE.] 273.14(a)An income-withholding order issued in another state may 273.15 be sentby first class mailto the person or entity defined as 273.16 the obligor's employer under section 518.611or 518.613without 273.17 first filing a petition or comparable pleading or registering 273.18 the order with a tribunal of this state.Upon receipt of the273.19order, the employer shall:273.20(1) treat an income-withholding order issued in another273.21state which appears regular on its face as if it had been issued273.22by a tribunal of this state;273.23(2) immediately provide a copy of the order to the obligor;273.24and273.25(3) distribute the funds as directed in the withholding273.26order.273.27(b) An obligor may contest the validity or enforcement of273.28an income-withholding order issued in another state in the same273.29manner as if the order had been issued by a tribunal of this273.30state. Section 518C.604 applies to the contest. The obligor273.31shall give notice of the contest to any support enforcement273.32agency providing services to the obligee and to:273.33(1) the person or agency designated to receive payments in273.34the income-withholding order; or273.35(2) if no person or agency is designated, the obligee.273.36 Sec. 65. [518C.503] [EMPLOYER'S COMPLIANCE WITH 274.1 INCOME-WITHHOLDING ORDER OF ANOTHER STATE.] 274.2 (a) Upon receipt of an income-withholding order, the 274.3 obligor's employer shall immediately provide a copy of the order 274.4 to the obligor. 274.5 (b) The employer shall treat an income-withholding order 274.6 issued in another state which appears regular on its face as if 274.7 it had been issued by a tribunal of this state. 274.8 (c) Except as otherwise provided in paragraph (d) and 274.9 section 518C.505, the employer shall withhold and distribute the 274.10 funds specified in the withholding order by complying with the 274.11 terms of the order which specify: 274.12 (1) the duration and amount of periodic payments of current 274.13 child support, stated as a sum certain; 274.14 (2) the person or agency designated to receive payments and 274.15 the address to which the payments are to be forwarded; 274.16 (3) medical support, whether in the form of periodic cash 274.17 payment, stated as a sum certain, or ordering the obligor to 274.18 provide health insurance coverage for the child under a policy 274.19 available through the obligor's employment; 274.20 (4) the amount of periodic payments of fees and costs for a 274.21 support enforcement agency, the issuing tribunal, and the 274.22 obligee's attorney, stated as sums certain; and 274.23 (5) the amount of periodic payments of arrearages and 274.24 interest on arrearages, stated as sums certain. 274.25 (d) An employer shall comply with the laws of the state of 274.26 the obligor's principal place of employment for withholding from 274.27 income with respect to: 274.28 (1) the employer's fee for processing an income-withholding 274.29 order; 274.30 (2) the maximum amount permitted to be withheld from the 274.31 obligor's income; and 274.32 (3) the times within which the employer must implement the 274.33 withholding order and forward the child support payment. 274.34 Sec. 66. [518C.504] [COMPLIANCE WITH MULTIPLE 274.35 INCOME-WITHHOLDING ORDERS.] 274.36 If an obligor's employer receives multiple 275.1 income-withholding orders with respect to the earnings of the 275.2 same obligor, the employer satisfies the terms of the multiple 275.3 orders if the employer complies with the law of the state of the 275.4 obligor's principal place of employment to establish the 275.5 priorities for withholding and allocating income withheld for 275.6 multiple child support obligees. 275.7 Sec. 67. [518C.505] [IMMUNITY FROM CIVIL LIABILITY.] 275.8 An employer who complies with an income-withholding order 275.9 issued in another state according to this chapter is not subject 275.10 to civil liability to an individual or agency with regard to the 275.11 employer's withholding of child support from the obligor's 275.12 income. 275.13 Sec. 68. [518C.506] [PENALTIES FOR NONCOMPLIANCE.] 275.14 An employer who willfully fails to comply with an 275.15 income-withholding order issued by another state and received 275.16 for enforcement is subject to the same penalties that may be 275.17 imposed for noncompliance with an order issued by a tribunal of 275.18 this state. 275.19 Sec. 69. [518C.507] [CONTEST BY OBLIGOR.] 275.20 (a) An obligor may contest the validity or enforcement of 275.21 an income-withholding order issued in another state and received 275.22 directly by an employer in this state in the same manner as if 275.23 the order had been issued by a tribunal of this state. Section 275.24 518C.604 applies to the contested order. 275.25 (b) The obligor shall give notice of the contested order to: 275.26 (1) a support enforcement agency providing services to the 275.27 obligee; 275.28 (2) each employer that has directly received an 275.29 income-withholding order; and 275.30 (3) the person or agency designated to receive payments in 275.31 the income-withholding order or if no person or agency is 275.32 designated, to the obligee. 275.33 Sec. 70. [518C.508] [ADMINISTRATIVE ENFORCEMENT OF 275.34 ORDERS.] 275.35 (a) A party seeking to enforce a support order or an 275.36 income-withholding order, or both, issued by a tribunal of 276.1 another state may send the documents required for registering 276.2 the order to a support enforcement agency of this state. 276.3 (b) Upon receipt of the documents, the support enforcement 276.4 agency, without initially seeking to register the order, shall 276.5 consider and may use any administrative procedure authorized by 276.6 the laws of this state to enforce a support order or an 276.7 income-withholding order, or both. If the obligor does not 276.8 contest administrative enforcement, the order need not be 276.9 registered. If the obligor contests the validity or 276.10 administrative enforcement of the order, the support enforcement 276.11 agency shall register the order under this chapter. 276.12 Sec. 71. Minnesota Statutes 1996, section 518C.603, is 276.13 amended to read: 276.14 518C.603 [EFFECT OF REGISTRATION FOR ENFORCEMENT.] 276.15 (a) A support order or income-withholding order issued in 276.16 another state is registered when the order is filed in the 276.17 registering tribunal of this state. 276.18 (b) A registered order issued in another state is 276.19 enforceable in the same manner and is subject to the same 276.20 procedures as an order issued by a tribunal of this state. 276.21 (c) Except as otherwise provided insections 518C.601 to276.22518C.612this chapter, a tribunal of this state shall recognize 276.23 and enforce, but may not modify, a registered order if the 276.24 issuing tribunal had jurisdiction. 276.25 Sec. 72. Minnesota Statutes 1996, section 518C.605, is 276.26 amended to read: 276.27 518C.605 [NOTICE OF REGISTRATION OF ORDER.] 276.28 (a) When a support order or income-withholding order issued 276.29 in another state is registered, the registering tribunal shall 276.30 notify the nonregistering party. Notice must be given by 276.31 certified or registered mail or by any means of personal service 276.32 authorized by the law of this state. The notice must be 276.33 accompanied by a copy of the registered order and the documents 276.34 and relevant information accompanying the order. 276.35 (b) The notice must inform the nonregistering party: 276.36 (1) that a registered order is enforceable as of the date 277.1 of registration in the same manner as an order issued by a 277.2 tribunal of this state; 277.3 (2) that a hearing to contest the validity or enforcement 277.4 of the registered order must be requested within 20 days after 277.5 the date of mailing or personal service of the notice; 277.6 (3) that failure to contest the validity or enforcement of 277.7 the registered order in a timely manner will result in 277.8 confirmation of the order and enforcement of the order and the 277.9 alleged arrearages and precludes further contest of that order 277.10 with respect to any matter that could have been asserted; and 277.11 (4) of the amount of any alleged arrearages. 277.12 (c) Upon registration of an income-withholding order for 277.13 enforcement, the registering tribunal shall notify the obligor's 277.14 employerpursuantaccording to section 518.611or 518.613. 277.15 Sec. 73. Minnesota Statutes 1996, section 518C.608, is 277.16 amended to read: 277.17 518C.608 [CONFIRMED ORDER.] 277.18If a contesting party has received notice of registration277.19under section 518C.605,Confirmation of a registered order, 277.20 whether by operation of law or after notice and hearing, 277.21 precludes further contest of the orderbased upon facts that277.22were known by the contesting party at the time of registration277.23with respect to any matter that could have been asserted at the277.24time of registrationwith respect to any matter that could have 277.25 been asserted at the time of registration. 277.26 Sec. 74. Minnesota Statutes 1996, section 518C.611, is 277.27 amended to read: 277.28 518C.611 [MODIFICATION OF CHILD SUPPORT ORDER OF ANOTHER 277.29 STATE.] 277.30 (a) After a child support order issued in another state has 277.31 been registered in this state, the responding tribunal of this 277.32 state may modify that order only if,section 518C.613 does not 277.33 apply and after notice and hearing, it finds that: 277.34 (1) the following requirements are met: 277.35 (i) the child, the individual obligee, and the obligor do 277.36 not reside in the issuing state; 278.1 (ii) a petitioner who is a nonresident of this state seeks 278.2 modification; and 278.3 (iii) the respondent is subject to the personal 278.4 jurisdiction of the tribunal of this state; or 278.5 (2)an individual party orthe child, or a party who is an 278.6 individual, is subject to the personal jurisdiction of the 278.7 tribunal of this state and all of theindividualparties who are 278.8 individuals have filedawrittenconsentconsents in the issuing 278.9 tribunalproviding thatfor a tribunal of this statemayto 278.10 modify the support order and assume continuing, exclusive 278.11 jurisdiction over the order. However, if the issuing state is a 278.12 foreign jurisdiction that has not enacted a law or established 278.13 procedures substantially similar to the procedures in this 278.14 chapter, the consent otherwise required of an individual 278.15 residing in this state is not required for the tribunal to 278.16 assume jurisdiction to modify the child support order. 278.17 (b) Modification of a registered child support order is 278.18 subject to the same requirements, procedures, and defenses that 278.19 apply to the modification of an order issued by a tribunal of 278.20 this state and the order may be enforced and satisfied in the 278.21 same manner. 278.22 (c) A tribunal of this state may not modify any aspect of a 278.23 child support order that may not be modified under the law of 278.24 the issuing state. If two or more tribunals have issued child 278.25 support orders for the same obligor and child, the order that 278.26 controls and must be recognized under section 518C.207 278.27 establishes the aspects of the support order which are 278.28 nonmodifiable. 278.29 (d) On issuance of an order modifying a child support order 278.30 issued in another state, a tribunal of this state becomes the 278.31 tribunal of continuing, exclusive jurisdiction. 278.32(e) Within 30 days after issuance of a modified child278.33support order, the party obtaining the modification shall file a278.34certified copy of the order with the issuing tribunal which had278.35continuing, exclusive jurisdiction over the earlier order, and278.36in each tribunal in which the party knows that earlier order has279.1been registered.279.2 Sec. 75. Minnesota Statutes 1996, section 518C.612, is 279.3 amended to read: 279.4 518C.612 [RECOGNITION OF ORDER MODIFIED IN ANOTHER STATE.] 279.5 A tribunal of this state shall recognize a modification of 279.6 its earlier child support order by a tribunal of another state 279.7 which assumed jurisdictionpursuantaccording to this chapter or 279.8 a law substantially similar to this chapter and, upon request, 279.9 except as otherwise provided in this chapter, shall: 279.10 (1) enforce the order that was modified only as to amounts 279.11 accruing before the modification; 279.12 (2) enforce only nonmodifiable aspects of that order; 279.13 (3) provide other appropriate relief only for violations of 279.14 that order which occurred before the effective date of the 279.15 modification; and 279.16 (4) recognize the modifying order of the other state, upon 279.17 registration, for the purpose of enforcement. 279.18 Sec. 76. [518C.613] [JURISDICTION TO MODIFY CHILD SUPPORT 279.19 ORDER OF ANOTHER STATE WHEN INDIVIDUAL PARTIES RESIDE IN THIS 279.20 STATE.] 279.21 (a) If all of the parties who are individuals reside in 279.22 this state and the child does not reside in the issuing state, a 279.23 tribunal of this state has jurisdiction to enforce and to modify 279.24 the issuing state's child support order in a proceeding to 279.25 register that order. 279.26 (b) A tribunal of this state exercising jurisdiction under 279.27 this section shall apply the provisions of sections 518C.101 to 279.28 518C.209, and the procedural and substantive laws of this state 279.29 to the proceeding for enforcement or modification. Sections 279.30 518C.301 to 518C.508 and sections 518C.701 to 518C.802 do not 279.31 apply. 279.32 Sec. 77. [518C.614] [NOTICE TO ISSUING TRIBUNAL OF 279.33 MODIFICATION.] 279.34 Within 30 days after issuance of a modified child support 279.35 order, the party obtaining the modification shall file a 279.36 certified copy of the order with the issuing tribunal that had 280.1 continuing, exclusive jurisdiction over the earlier order, and 280.2 in each tribunal in which the party knows the earlier order has 280.3 been registered. A party who obtains the order and fails to 280.4 file a certified copy is subject to appropriate sanctions by a 280.5 tribunal in which the issue of failure to file arises. The 280.6 failure to file does not affect the validity or enforceability 280.7 of the modified order of the new tribunal having continuing, 280.8 exclusive jurisdiction. 280.9 Sec. 78. Minnesota Statutes 1996, section 518C.701, is 280.10 amended to read: 280.11 518C.701 [PROCEEDING TO DETERMINE PARENTAGE.] 280.12 (a) A tribunal of this state may serve as an initiating or 280.13 responding tribunal in a proceeding brought under this chapter 280.14 or a law or procedure substantially similar to this chapter, or 280.15 under a law or procedure substantially similar to the uniform 280.16 reciprocal enforcement of support act, or the revised uniform 280.17 reciprocal enforcement of support act to determine that the 280.18 petitioner is a parent of a particular child or to determine 280.19 that a respondent is a parent of that child. 280.20 (b) In a proceeding to determine parentage, a responding 280.21 tribunal of this state shall apply the parentage act, sections 280.22 257.51 to 257.74, and the rules of this state on choice of law. 280.23 Sec. 79. Minnesota Statutes 1996, section 548.091, 280.24 subdivision 1a, is amended to read: 280.25 Subd. 1a. [CHILD SUPPORT JUDGMENT BY OPERATION OF LAW.] 280.26 (a) Any payment or installment of support required by a judgment 280.27 or decree of dissolution or legal separation, determination of 280.28 parentage, an order under chapter 518C, an order under section 280.29 256.87, or an order under section 260.251, that is not paid or 280.30 withheld from the obligor's income as required under section 280.31 518.611 or 518.613, or which is ordered as child support by 280.32 judgment, decree, or order by a court in any other state, is a 280.33 judgment by operation of law on and after the date it is due and 280.34 is entitled to full faith and credit in this state and any other 280.35 state. Except as otherwise provided by paragraph (b), interest 280.36 accrues from the date the unpaid amount due is greater than the 281.1 current support due at the annual rate provided in section 281.2 549.09, subdivision 1, plus two percent, not to exceed an annual 281.3 rate of 18 percent. A payment or installment of support that 281.4 becomes a judgment by operation of law between the date on which 281.5 a party served notice of a motion for modification under section 281.6 518.64, subdivision 2, and the date of the court's order on 281.7 modification may be modified under that subdivision. 281.8 (b) Notwithstanding the provisions of section 549.09, upon 281.9 motion to the court and upon proof by the obligor of 36 281.10 consecutive months of complete and timely payments of both 281.11 current support and court-ordered paybacks of a child support 281.12 debt or arrearage, the court may order interest on the remaining 281.13 debt or arrearage to stop accruing. Timely payments are those 281.14 made in the month in which they are due. If, after that time, 281.15 the obligor fails to make complete and timely payments of both 281.16 current support and court-ordered paybacks of child support debt 281.17 or arrearage, the public authority or the obligee may move the 281.18 court for the reinstatement of interest as of the month in which 281.19 the obligor ceased making complete and timely payments. 281.20 The court shall provide copies of all orders issued under 281.21 this section to the public authority. The commissioner of human 281.22 services shall prepare and make available to the court and the 281.23 parties forms to be submitted by the parties in support of a 281.24 motion under this paragraph. 281.25 Sec. 80. Minnesota Statutes 1996, section 548.091, 281.26 subdivision 2a, is amended to read: 281.27 Subd. 2a. [DOCKETING OF CHILD SUPPORT JUDGMENT.] On or 281.28 after the date an unpaid amount becomes a judgment by operation 281.29 of law under subdivision 1a, the obligee or the public authority 281.30 may file with the court administrator, either electronically or 281.31 by other means: 281.32 (1) a statement identifying, or a copy of, the judgment or 281.33 decree of dissolution or legal separation, determination of 281.34 parentage, order under chapter 518C, an order under section 281.35 256.87,oran order under section 260.251, or judgment, decree, 281.36 or order for child support by a court in any other state, which 282.1 provides forinstallment orperiodicpaymentsinstallments of 282.2 child support, or a judgment or notice of attorney fees and 282.3 collection costs under section 518.14, subdivision 2; 282.4 (2) an affidavit of default. The affidavit of default must 282.5 state the full name, occupation, place of residence, and last 282.6 known post office address of the obligor, the name and post 282.7 office address of the obligee, the date or dates payment was due 282.8 and not received and judgment was obtained by operation of law, 282.9andthe total amount of the judgments to the date of filing, and 282.10 the amount and frequency of the periodic installments of child 282.11 support that will continue to become due and payable subsequent 282.12 to the date of filing; and 282.13 (3) an affidavit of service of a notice ofentry of282.14judgment or notice ofintent to docket judgment and to recover 282.15 attorney fees and collection costs on the obligor, in person or 282.16 by mail at the obligor's last known post office address. 282.17 Service is completed upon mailing in the manner designated. 282.18 Where applicable, a notice of interstate lien in the form 282.19 promulgated under United States Code, title 42, section 652(a), 282.20 is sufficient to satisfy the requirements of clauses (1) and (2). 282.21 Sec. 81. Minnesota Statutes 1996, section 548.091, 282.22 subdivision 3a, is amended to read: 282.23 Subd. 3a. [ENTRY, DOCKETING, AND SURVIVAL OF CHILD SUPPORT 282.24 JUDGMENT.] Upon receipt of the documents filed under subdivision 282.25 2a, the court administrator shall enter and docket the judgment 282.26 in the amount of thedefault specified in the affidavit of282.27defaultunpaid obligation identified in the affidavit of default 282.28 and note the amount and frequency of the periodic installments 282.29 of child support that will continue to become due and payable 282.30 after the date of docketing. From the time of docketing, the 282.31 judgment is a lien upon all the real property in the county 282.32 owned by the judgment debtor, but it is not a lien on registered 282.33 land unless the obligee or the public authority causes a notice 282.34 of judgment lien or certified copy of the judgment to be 282.35 memorialized on the certificate of title or certificate of 282.36 possessory title under section 508.63 or 508A.63. The judgment 283.1 survives and the lien continues for ten years after the date the 283.2 judgment was docketed. Child support judgments may be renewed 283.3 by service of notice upon the debtor. Service shall be by 283.4 certified mail at the last known address of the debtor or in the 283.5 manner provided for the service of civil process. Upon the 283.6 filing of the notice and proof of service the court 283.7 administrator shall renew the judgment for child support without 283.8 any additional filing fee. 283.9 Sec. 82. Minnesota Statutes 1996, section 548.091, is 283.10 amended by adding a subdivision to read: 283.11 Subd. 5. [AUTOMATIC INCREASES; SATISFACTION.] After 283.12 docketing and until satisfied by the obligee, public authority, 283.13 or the court administrator, the amount of the docketed judgment 283.14 automatically increases by the total amount of periodic 283.15 installments of child support that became due and payable 283.16 subsequent to the date of docketing, plus attorney's fees and 283.17 collection costs incurred by the public authority, and less any 283.18 payment made by the obligor to partially satisfy the docketed 283.19 judgment. The court administrator shall not satisfy any child 283.20 support judgment without first obtaining a written judgment 283.21 payoff statement from the public authority or obligee. If no 283.22 such statement can be obtained within two business days, the 283.23 court administrator shall only satisfy the judgment if the 283.24 amount paid to the court administrator equals the judgment 283.25 amount plus interest and costs, and the amount of the periodic 283.26 installment times the number of payments due since the date of 283.27 docketing of the judgment. 283.28 Sec. 83. Minnesota Statutes 1996, section 548.091, is 283.29 amended by adding a subdivision to read: 283.30 Subd. 6. [NOTE ON JUDGMENT ROLL.] The court administrator 283.31 shall note on the judgment roll which judgments are filed 283.32 pursuant to this section and the amount and frequency of the 283.33 periodic installment of child support that will continue to 283.34 become due and payable after the date of docketing. 283.35 Sec. 84. Minnesota Statutes 1996, section 548.091, is 283.36 amended by adding a subdivision to read: 284.1 Subd. 7. [FEES.] The public authority is exempt from 284.2 payment of fees when a judgment is docketed or a certified copy 284.3 of a judgment is issued by a court administrator, or a notice of 284.4 judgment lien or a certified copy of a judgment is presented to 284.5 a registrar of titles for recording. If a notice or certified 284.6 copy is recorded by the public authority under this subdivision, 284.7 the registrar of titles may collect from a party presenting for 284.8 recording a satisfaction or release of the notice or certified 284.9 copy, the fees for recording and memorializing both the notice 284.10 or certified copy and the satisfaction or release. 284.11 Sec. 85. Minnesota Statutes 1996, section 548.091, is 284.12 amended by adding a subdivision to read: 284.13 Subd. 8. [REGISTERED LAND.] If requested by the public 284.14 authority and upon the public authority's providing a notice of 284.15 judgment lien or a certified copy of a judgment for child 284.16 support debt, together with a street address, tax parcel 284.17 identifying number, or a legal description for a parcel of real 284.18 property, the county recorder shall search the registered land 284.19 records in that county and cause the notice of judgment lien or 284.20 certified copy of the judgment to be memorialized on every 284.21 certificate of title or certificate of possessory title of 284.22 registered land in that county that can be reasonably identified 284.23 as owned by the obligor who is named on a docketed judgment. 284.24 The fees for memorializing the lien or judgment must be paid in 284.25 the manner prescribed by subdivision 7. The county recorders 284.26 and their employees and agents are not liable for any loss or 284.27 damages arising from failure to identify a parcel of registered 284.28 land owned by the obligor who is named on the docketed judgment. 284.29 Sec. 86. Minnesota Statutes 1996, section 548.091, is 284.30 amended by adding a subdivision to read: 284.31 Subd. 9. [PAYOFF STATEMENT.] The public authority shall 284.32 issue to the obligor, attorneys, lenders, and closers, or their 284.33 agents, a payoff statement setting forth conclusively the amount 284.34 necessary to satisfy the lien. Payoff statements must be issued 284.35 within three business days after receipt of a request by mail, 284.36 personal delivery, telefacsimile, or e-mail transmission, and 285.1 must be delivered to the requester by telefacsimile or e-mail 285.2 transmission if requested and if appropriate technology is 285.3 available to the public authority. 285.4 Sec. 87. Minnesota Statutes 1996, section 548.091, is 285.5 amended by adding a subdivision to read: 285.6 Subd. 10. [RELEASE OF LIEN.] Upon payment of the amount 285.7 due under subdivision 5, the public authority shall execute and 285.8 deliver a satisfaction of the judgment lien within five business 285.9 days. 285.10 Sec. 88. Minnesota Statutes 1996, section 548.091, is 285.11 amended by adding a subdivision to read: 285.12 Subd. 11. [SPECIAL PROCEDURES.] The public authority shall 285.13 maintain sufficient staff available to negotiate a release of 285.14 lien on specific property for less than the full amount due 285.15 where the proceeds of a sale or financing, less reasonable and 285.16 necessary closing expenses, are not sufficient to satisfy all 285.17 encumbrances on the liened property. Partial releases do not 285.18 release the obligor's personal liability for the amount unpaid. 285.19 Sec. 89. Minnesota Statutes 1996, section 548.091, is 285.20 amended by adding a subdivision to read: 285.21 Subd. 12. [CORRECTING ERRORS.] The public authority shall 285.22 maintain a process to review the identity of the obligor and to 285.23 issue releases of lien in cases of misidentification. The 285.24 public authority shall maintain a process to review the amount 285.25 of child support determined to be delinquent and to issue 285.26 amended notices of judgment lien in cases of incorrectly 285.27 docketed judgments. 285.28 Sec. 90. Minnesota Statutes 1996, section 548.091, is 285.29 amended by adding a subdivision to read: 285.30 Subd. 13. [FORMS.] The department of human services, after 285.31 consultation with registrars of title, shall prescribe the 285.32 Notice of Judgment Lien. These forms are not subject to chapter 285.33 14. 285.34 Sec. 91. Minnesota Statutes 1996, section 550.37, 285.35 subdivision 24, is amended to read: 285.36 Subd. 24. [EMPLOYEE BENEFITS.] (a) The debtor's right to 286.1 receive present or future payments, or payments received by the 286.2 debtor, under a stock bonus, pension, profit sharing, annuity, 286.3 individual retirement account, individual retirement annuity, 286.4 simplified employee pension, or similar plan or contract on 286.5 account of illness, disability, death, age, or length of service: 286.6 (1) to the extent the plan or contract is described in 286.7 section 401(a), 403, 408, or 457 of the Internal Revenue Code of 286.8 1986, as amended, or payments under the plan or contract are or 286.9 will be rolled over as provided in section 402(a)(5), 403(b)(8), 286.10 or 408(d)(3) of the Internal Revenue Code of 1986, as amended; 286.11 or 286.12 (2) to the extent of the debtor's aggregate interest under 286.13 all plans and contracts up to a present value of $30,000 and 286.14 additional amounts under all the plans and contracts to the 286.15 extent reasonably necessary for the support of the debtor and 286.16 any spouse or dependent of the debtor. 286.17 (b) The exemptions in paragraph (a) do not apply when the 286.18 debt is owed under a support order as defined in section 518.54, 286.19 subdivision 4a. 286.20 Sec. 92. [552.01] [DEFINITIONS.] 286.21 Subdivision 1. [SCOPE.] The definitions in this section 286.22 apply to this chapter. 286.23 Subd. 2. [CLAIM.] "Claim" means the unpaid balance of the 286.24 public authority's judgment against the judgment debtor, 286.25 including all lawful interest and costs incurred. 286.26 Subd. 3. [FINANCIAL INSTITUTION.] "Financial institution" 286.27 means all entities identified in section 13B.06. 286.28 Subd. 4. [JUDGMENT DEBTOR.] "Judgment debtor" means a 286.29 party against whom the public authority has a judgment for the 286.30 recovery of money resulting from unpaid child support. 286.31 Subd. 5. [PUBLIC AUTHORITY.] "Public authority" means the 286.32 public authority responsible for child support enforcement. 286.33 Subd. 6. [THIRD PARTY.] "Third party" means the person or 286.34 entity upon whom the execution levy is served. 286.35 Sec. 93. [552.02] [PUBLIC AUTHORITY'S SUMMARY EXECUTION OF 286.36 CHILD SUPPORT JUDGMENT DEBTS; WHEN AUTHORIZED.] 287.1 The public authority may execute on a money judgment 287.2 resulting from unpaid child support by levying under this 287.3 chapter on indebtedness owed to the judgment debtor by a third 287.4 party. The public authority may execute under this chapter upon 287.5 service of a notice of child support judgment levy for which the 287.6 seal of the court is not required. 287.7 Sec. 94. [552.03] [SCOPE OF GENERAL AND SPECIFIC 287.8 PROVISIONS.] 287.9 General provisions relating to the public authority's 287.10 summary execution as authorized in this chapter are set forth in 287.11 section 552.04. Specific provisions relating to summary 287.12 execution on funds at a financial institution are set forth in 287.13 section 552.05. When the public authority levies against funds 287.14 at a financial institution, the specific provisions of section 287.15 552.05 must be complied with in addition to the general 287.16 provisions of section 552.04. Provisions contained in the 287.17 statutory forms are incorporated in this chapter and have the 287.18 same force of law as any other provisions in this chapter. 287.19 Sec. 95. [552.04] [GENERAL PROVISIONS.] 287.20 Subdivision 1. [RULES OF CIVIL PROCEDURE.] Unless this 287.21 chapter specifically provides otherwise, the Minnesota Rules of 287.22 Civil Procedure for the district courts apply in all proceedings 287.23 under this chapter. 287.24 Subd. 2. [PROPERTY ATTACHABLE BY SERVICE OF LIEN 287.25 NOTICE.] Subject to the exemptions provided by subdivision 3 and 287.26 section 550.37, and any other applicable statute, the service by 287.27 the public authority of a notice of child support judgment levy 287.28 under this chapter attaches all nonexempt indebtedness or money 287.29 due or belonging to the judgment debtor and owing by the third 287.30 party or in the possession or under the control of the third 287.31 party at the time of service of the notice of child support 287.32 judgment levy, whether or not the indebtedness or money has 287.33 become payable. The third party shall not be compelled to pay 287.34 or deliver the same before the time specified by any agreement 287.35 unless the agreement was fraudulently contracted to defeat an 287.36 execution levy or other collection remedy. 288.1 Subd. 3. [PROPERTY NOT ATTACHABLE.] The following property 288.2 is not subject to attachment by a notice of child support 288.3 judgment levy served under this chapter: 288.4 (1) any indebtedness or money due to the judgment debtor, 288.5 unless at the time of the service of the notice of child support 288.6 judgment levy the same is due absolutely or does not depend upon 288.7 any contingency; 288.8 (2) any judgment owing by the third party to the judgment 288.9 debtor, if the third party or the third party's property is 288.10 liable on an execution levy upon the judgment; 288.11 (3) any debt owing by the third party to the judgment 288.12 debtor for which any negotiable instrument has been issued or 288.13 endorsed by the third party; 288.14 (4) any indebtedness or money due to the judgment debtor 288.15 with a cumulative value of less than $10; and 288.16 (5) any disposable earnings, indebtedness, or money that is 288.17 exempt under state or federal law. 288.18 Subd. 4. [SERVICE OF THIRD-PARTY LEVY; NOTICE AND 288.19 DISCLOSURE FORMS.] When levying upon money owed to the judgment 288.20 debtor by a third party, the public authority shall serve a copy 288.21 of the notice of child support judgment levy upon the third 288.22 party either by registered or certified mail, or by personal 288.23 service. Along with a copy of the notice of child support 288.24 judgment levy, the public authority shall serve upon the third 288.25 party a notice of third-party levy and disclosure form that must 288.26 be substantially in the form set forth below. 288.27 OFFICE OF ADMINISTRATIVE HEARINGS 288.28 File No. ........... 288.29 ........ (Public Authority) 288.30 against NOTICE OF THIRD PARTY 288.31 ........ (Judgment Debtor) LEVY AND DISCLOSURE 288.32 and (OTHER THAN EARNINGS) 288.33 ........ (Third Party) 288.34 PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 288.35 chapter 552, the undersigned, as representative of the public 288.36 authority responsible for child support enforcement, makes 288.37 demand and levies execution upon all money due and owing by you 288.38 to the judgment debtor for the amount of the judgment specified 289.1 below. A copy of the notice of child support judgment levy is 289.2 enclosed. The unpaid judgment balance is $...... 289.3 In responding to this levy, you are to complete the 289.4 attached disclosure form and mail it to the public authority, 289.5 together with your check payable to the public authority, for 289.6 the nonexempt amount owed by you to the judgment debtor or for 289.7 which you are obligated to the judgment debtor, within the time 289.8 limits in chapter 552. 289.9 Two exemption notices are also enclosed according to 289.10 Minnesota Statutes, section 552.02. 289.11 Public Authority 289.12 Address 289.13 (........) 289.14 Telephone Number 289.15 289.16 DISCLOSURE 289.17 On the ... day of ......, 19.., the time of service of the 289.18 execution levy herein, there was due and owing the judgment 289.19 debtor from the third party the following: 289.20 (1) Money. Enter on the line below any amounts due and 289.21 owing the judgment debtor, except earnings, from the third party. 289.22 ......................... 289.23 (2) Setoff. Enter on the line below the amount of any 289.24 setoff, defense, lien, or claim which the third party claims 289.25 against the amount set forth on line (1). State the facts by 289.26 which the setoff, defense, lien, or claim is claimed. (Any 289.27 indebtedness to you incurred by the judgment debtor within ten 289.28 days prior to the receipt of the first execution levy on a debt 289.29 may not be claimed as a setoff, defense, lien, or claim against 289.30 the amount set forth on line (1).) 289.31 ......................... 289.32 (3) Exemption. Enter on the line below any amounts or 289.33 property claimed by the judgment debtor to be exempt from 289.34 execution. 289.35 ......................... 289.36 (4) Adverse Interest. Enter on the line below any amounts 289.37 claimed by other persons by reason of ownership or interest in 290.1 the judgment debtor's property. 290.2 ......................... 290.3 (5) Enter on the line below the total of lines (2), (3), 290.4 and (4). 290.5 ......................... 290.6 (6) Enter on the line below the difference obtained (never 290.7 less than zero when line (5) is subtracted from the amount on 290.8 line (1)). 290.9 ......................... 290.10 (7) Enter on the line below 100 percent of the amount of 290.11 the public authority's claim which remains unpaid. 290.12 ......................... 290.13 (8) Enter on the line below the lesser of line (6) and line 290.14 (7). You are instructed to remit this amount only if it is $10 290.15 or more. 290.16 ......................... 290.17 AFFIRMATION 290.18 I, .......... (person signing Affirmation), am the third 290.19 party or I am authorized by the third party to complete this 290.20 nonearnings disclosure, and have done so truthfully and to the 290.21 best of my knowledge. 290.22 Dated:.......... Signature 290.23 .......... 290.24 Title 290.25 .......... 290.26 Telephone Number 290.27 Subd. 5. [THIRD-PARTY DISCLOSURE AND REMITTANCE.] Within 290.28 15 days after receipt of the notice of child support judgment 290.29 levy, unless governed by section 552.05, the third party shall 290.30 disclose and remit to the public authority as much of the amount 290.31 due as the third party's own debt equals to the judgment debtor. 290.32 Subd. 6. [ORAL DISCLOSURE.] Before or after the service of 290.33 a written disclosure by a third party under subdivision 5, upon 290.34 a showing by affidavit upon information and belief that an oral 290.35 examination of the third party would provide a complete 290.36 disclosure of relevant facts, any party to the execution 290.37 proceedings may obtain an ex parte order requiring the third 290.38 party, or a representative of the third party designated by name 291.1 or by title, to appear for oral examination before the court or 291.2 a referee appointed by the court. Notice of the examination 291.3 must be given to all parties. 291.4 Subd. 7. [SUPPLEMENTAL COMPLAINT.] If a third party holds 291.5 property, money, earnings, or other indebtedness by a title that 291.6 is void as to the judgment debtor's creditors, the property may 291.7 be levied on although the judgment debtor would be barred from 291.8 maintaining an action to recover the property, money, earnings, 291.9 or other indebtedness. In this and all other cases where the 291.10 third party denies liability, the public authority may move the 291.11 court at any time before the third party is discharged, on 291.12 notice to both the judgment debtor and the third party for an 291.13 order making the third party a party to supplemental action and 291.14 granting the public authority leave to file a supplemental 291.15 complaint against the third party and the judgment debtor. The 291.16 supplemental complaint shall set forth the facts upon which the 291.17 public authority claims to charge the third party. If probable 291.18 cause is shown, the motion shall be granted. The supplemental 291.19 complaint shall be served upon the third party and the judgment 291.20 debtor and any other parties. The parties served shall answer 291.21 or respond pursuant to the Minnesota Rules of Civil Procedure 291.22 for the district courts, and if they fail to do so, judgment by 291.23 default may be entered against them. 291.24 Subd. 8. [JUDGMENT AGAINST THIRD PARTY UPON FAILURE TO 291.25 DISCLOSE OR REMIT.] Judgment may be entered against a third 291.26 party who has been served with a notice of child support 291.27 judgment levy and fails to disclose or remit the levied funds as 291.28 required in this chapter. Upon order to show cause served on 291.29 the third party and notice of motion supported by affidavit of 291.30 facts and affidavit of service upon both the judgment debtor and 291.31 third party, the court may render judgment against the third 291.32 party for an amount not exceeding 100 percent of the amount 291.33 claimed in the execution. Judgment against the third party 291.34 under this section shall not bar the public authority from 291.35 further remedies under this chapter as a result of any 291.36 subsequent defaults by the third party. The court upon good 292.1 cause shown may remove the default and permit the third party to 292.2 disclose or remit on just terms. 292.3 Subd. 9. [SATISFACTION.] Upon expiration, the public 292.4 authority making the execution shall file a partial satisfaction 292.5 by amount or the total satisfaction with the court administrator 292.6 without charge. 292.7 Subd. 10. [THIRD-PARTY GOOD FAITH REQUIREMENT.] The third 292.8 party is not liable to the judgment debtor, public authority, or 292.9 other person for wrongful retention if the third party retains 292.10 or remits disposable earnings, indebtedness, or money of the 292.11 judgment debtor or any other person, pending the third party's 292.12 disclosure or consistent with the disclosure the third party 292.13 makes, if the third party has a good faith belief that the 292.14 property retained or remitted is subject to the execution. In 292.15 addition, the third party may, at any time before or after 292.16 disclosure, proceed under Rule 67 of the Minnesota Rules of 292.17 Civil Procedure to make deposit into court. No third party is 292.18 liable for damages if the third party complies with the 292.19 provisions of this chapter. 292.20 Subd. 11. [BAD FAITH CLAIM.] If, in a proceeding brought 292.21 under section 552.05, subdivision 9, or a similar proceeding 292.22 under this chapter to determine a claim of exemption, the claim 292.23 of exemption is not upheld, and the court finds that it was 292.24 asserted in bad faith, the public authority shall be awarded 292.25 actual damages, costs, reasonable attorney fees resulting from 292.26 the additional proceedings, and an amount not to exceed $100. 292.27 If the claim of exemption is upheld, and the court finds that 292.28 the public authority disregarded the claim of exemption in bad 292.29 faith, the judgment debtor shall be awarded actual damages, 292.30 costs, reasonable attorney fees resulting from the additional 292.31 proceedings, and an amount not to exceed $100. The underlying 292.32 judgment shall be modified to reflect assessment of damages, 292.33 costs, and attorney fees. However, if the party in whose favor 292.34 a penalty assessment is made is not actually indebted to that 292.35 party's attorney for fees, the attorney fee award shall be made 292.36 directly to the attorney, and if not paid, an appropriate 293.1 judgment in favor of the attorney shall be entered. Any action 293.2 by a public authority made in bad faith and in violation of this 293.3 chapter renders the execution levy void and the public authority 293.4 liable to the judgment debtor named in the execution levy in the 293.5 amount of $100, actual damages, and reasonable attorney fees and 293.6 costs. 293.7 Subd. 12. [DISCHARGE OF A THIRD PARTY.] Subject to 293.8 subdivisions 6 and 13, the third party, after disclosure, shall 293.9 be discharged of any further obligation to the public authority 293.10 when one of the conditions in paragraphs (a) to (c) are met. 293.11 (a) The third party discloses that the third party is not 293.12 indebted to the judgment debtor or does not possess any 293.13 earnings, property, money, or indebtedness belonging to the 293.14 judgment debtor that is attachable as defined in subdivision 2. 293.15 The disclosure is conclusive against the public authority and 293.16 discharges the third party from any further obligation to the 293.17 public authority other than to retain and remit all nonexempt 293.18 disposable earnings, property, indebtedness, or money of the 293.19 judgment debtor which was disclosed. 293.20 (b) The third party discloses that the third party is 293.21 indebted to the judgment debtor as indicated on the execution 293.22 disclosure form. The disclosure is conclusive against the 293.23 public authority and discharges the third party from any further 293.24 obligation to the public authority other than to retain and 293.25 remit all nonexempt disposable earnings, property, indebtedness, 293.26 or money of the judgment debtor that was disclosed. 293.27 (c) The court may, upon motion of an interested person, 293.28 discharge the third party as to any disposable earnings, money, 293.29 property, or indebtedness in excess of the amount that may be 293.30 required to satisfy the public authority's claim. 293.31 Subd. 13. [EXCEPTIONS TO DISCHARGE OF A THIRD PARTY.] The 293.32 third party is not discharged if: 293.33 (a) Within 20 days of the service of the third party's 293.34 disclosure, an interested person serves a motion relating to the 293.35 execution levy. The hearing on the motion must be scheduled to 293.36 be heard within 30 days of the service of the motion. 294.1 (b) The public authority moves the court for leave to file 294.2 a supplemental complaint against the third party, as provided 294.3 for in subdivision 7, and the court upon proper showing vacates 294.4 the discharge of the third party. 294.5 Subd. 14. [JOINDER AND INTERVENTION BY PERSONS IN 294.6 INTEREST.] If it appears that a person, who is not a party to 294.7 the action, has or claims an interest in any of the disposable 294.8 earnings, other indebtedness, or money, the court shall permit 294.9 that person to intervene or join in the execution proceeding 294.10 under this chapter. If that person does not appear, the court 294.11 may summon that person to appear or order the claim barred. The 294.12 person so appearing or summoned shall be joined as a party and 294.13 be bound by the judgment. 294.14 Subd. 15. [APPEAL.] A party to an execution proceeding 294.15 aggrieved by an order or final judgment may appeal as in other 294.16 civil cases. 294.17 Subd. 16. [PRIORITY OF LEVY.] Notwithstanding section 294.18 52.12, a levy by the public authority made under this section on 294.19 an obligor's funds on deposit in a financial institution located 294.20 in this state has priority over any unexercised right of setoff 294.21 of the financial institution to apply the levied funds toward 294.22 the balance of an outstanding loan or loans owed by the obligor 294.23 to the financial institution. A claim by the financial 294.24 institution that it exercised its right to setoff prior to the 294.25 levy by the public authority must be substantiated by evidence 294.26 of the date of the setoff and must be verified by the sworn 294.27 statement of a responsible corporate officer of the financial 294.28 institution. For purposes of determining the priority of a levy 294.29 made under this section, the levy must be treated as if it were 294.30 an execution made under chapter 550. 294.31 Sec. 96. [552.05] [SUMMARY EXECUTION UPON FUNDS AT 294.32 FINANCIAL INSTITUTION.] 294.33 Subdivision 1. [PROCEDURE.] In addition to the provisions 294.34 of section 552.04, when levying upon funds at a financial 294.35 institution, this section must be complied with. If the notice 294.36 of child support judgment levy is being used by the public 295.1 authority to levy funds of a judgment debtor who is a natural 295.2 person and if the funds to be levied are held on deposit at any 295.3 financial institution, the public authority shall serve with the 295.4 notice of child support judgment levy and summary execution two 295.5 copies of an exemption notice. The notice must be substantially 295.6 in the form determined by the public authority. Failure of the 295.7 public authority to send the exemption notice renders the 295.8 execution levy void, and the financial institution shall take no 295.9 action. Upon receipt of the notice of child support judgment 295.10 levy and exemption notices, the financial institution shall 295.11 retain as much of the amount due as the financial institution 295.12 has on deposit owing to the judgment debtor, but not more than 295.13 100 percent of the amount remaining due on the judgment. 295.14 The notice informing a judgment debtor that an execution 295.15 levy has been used by the public authority to attach funds of 295.16 the judgment debtor to satisfy a claim must be substantially in 295.17 the form determined by the public authority. 295.18 Subd. 2. [EFFECT OF EXEMPTION NOTICE.] Within two business 295.19 days after receipt of the execution levy and exemption notices, 295.20 the financial institution shall serve upon the judgment debtor 295.21 two copies of the exemption notice. The financial institution 295.22 shall serve the notice by first class mail to the last known 295.23 address of the judgment debtor. If no claim of exemption is 295.24 received by the financial institution within 14 days after the 295.25 exemption notices are mailed to the judgment debtor, the funds 295.26 remain subject to the execution levy and shall be remitted to 295.27 the public authority within seven days. If the judgment debtor 295.28 elects to claim an exemption, the judgment debtor shall complete 295.29 the exemption notice, sign it under penalty of perjury, and 295.30 deliver one copy to the financial institution and one copy to 295.31 the public authority within 14 days of the date postmarked on 295.32 the correspondence mailed to the judgment debtor containing the 295.33 exemption notices. Failure of the judgment debtor to deliver 295.34 the executed exemption notice does not constitute a waiver of 295.35 any claimed right to an exemption. Upon timely receipt of a 295.36 claim of exemption, funds not claimed to be exempt by the 296.1 judgment debtor remain subject to the execution levy. All money 296.2 claimed to be exempt shall be released to the judgment debtor 296.3 upon the expiration of seven days after the date postmarked on 296.4 the envelope containing the executed exemption notice mailed to 296.5 the financial institution, or the date of personal delivery of 296.6 the executed exemption notice to the financial institution, 296.7 unless within that time the public authority interposes an 296.8 objection to the exemption. 296.9 Subd. 3. [OBJECTION TO EXEMPTION CLAIM.] Objection shall 296.10 be interposed by mailing or delivering one copy of the written 296.11 objection to the financial institution and one copy of the 296.12 written objection to the judgment debtor along with a copy of 296.13 the judgment debtor's claimed exemption form. Both copies of an 296.14 objection to an exemption claim shall be mailed or delivered on 296.15 the same date. The financial institution may rely on the date 296.16 of mailing or delivery of a notice to it in computing any time 296.17 periods in this section. The written objection must be 296.18 substantially in the form specified in subdivision 5. 296.19 Subd. 4. [DUTIES OF FINANCIAL INSTITUTION IF OBJECTION IS 296.20 MADE TO EXEMPTION CLAIM.] Upon receipt of a written objection 296.21 from the public authority within the specified seven-day period, 296.22 the financial institution shall retain the funds claimed to be 296.23 exempt. Unless the financial institution receives a request for 296.24 hearing and notice of hearing from the judgment debtor asserting 296.25 exemption rights within ten days after receipt of a written 296.26 objection to the exemption, the funds remain subject to the 296.27 execution levy as if no claim of exemption had been made and 296.28 shall be remitted to the public authority within seven days. If 296.29 a request for hearing and notice of hearing to determine the 296.30 validity of a claim of exemption is received by the financial 296.31 institution within the period provided, it shall retain the 296.32 funds claimed to be exempt until otherwise ordered by the court. 296.33 Subd. 5. [NOTICE OF OBJECTION.] (a) The written objection 296.34 to the judgment debtor's claim of exemption must be in 296.35 substantially the following form: 296.36 OFFICE OF ADMINISTRATIVE HEARINGS 297.1 ....... (Public Authority) OBJECTION TO 297.2 ....... (Judgment Debtor) EXEMPTION CLAIM 297.3 ....... (Garnishee)(Third Party) 297.4 The public authority objects to your claim for exemption 297.5 from levy of execution for the following reason(s): 297.6 .................... 297.7 .................... 297.8 .................... 297.9 Because of this objection, your financial institution will 297.10 retain the funds you claimed to be exempt for an additional ten 297.11 days. If you wish to request a hearing on your exemption claim, 297.12 you should do so within ten days of your receipt of this 297.13 objection. You may request a hearing by completing the attached 297.14 form and filing it with the office of administrative hearings. 297.15 (1) The office of administrative hearings shall provide 297.16 clerical assistance to help with the writing and filing of a 297.17 Request for Hearing by any person not represented by counsel. 297.18 The office of administrative hearings may charge a fee of $1 for 297.19 the filing of a Request for Hearing. 297.20 (2) Upon the filing of a Request for Hearing, the office of 297.21 administrative hearings shall schedule the matter for a hearing 297.22 no later than five business days from the date of filing. The 297.23 office of administrative hearings shall promptly send a 297.24 completed copy of the request, including the hearing date, time, 297.25 and place to the adverse party and to the financial institution 297.26 by first class mail. 297.27 (3) If it is possible that the financial institution might 297.28 not receive the requested mailed form mailed from the court 297.29 administrator within ten days, then you may want to personally 297.30 deliver a copy of the request to the financial institution after 297.31 you have filed your request with the office of administrative 297.32 hearings. 297.33 (4) An order stating whether your funds are exempt shall be 297.34 issued by the office of administrative hearings within three 297.35 days of the date of the hearing. 297.36 If you do not file a Request for Hearing within ten days of 297.37 the date you receive this objection, your financial institution 298.1 may turn your funds over to the public authority. 298.2 If you file a Request for Hearing and your financial 298.3 institution receives it within ten days of the date it received 298.4 this objection, your financial institution will retain your 298.5 funds claimed to be exempt until otherwise ordered by the office 298.6 of administrative hearings. 298.7 ........... 298.8 Attorney for Public Authority 298.9 Subd. 6. [REQUEST FOR HEARING AND NOTICE FOR HEARING.] The 298.10 request for hearing accompanying the objection notice must be in 298.11 substantially the following form: 298.12 OFFICE OF ADMINISTRATIVE HEARINGS 298.13 ........(Public Authority) REQUEST FOR HEARING 298.14 .....(Judgment Debtor) AND NOTICE FOR HEARING 298.15 .....(Garnishee)(Third Party) 298.16 I hereby request a hearing to resolve the exemption claim 298.17 which has been made in this case regarding funds in the account 298.18 of ..... (Judgment Debtor) at the ..... (Financial Institution.) 298.19 I believe the property being held is exempt because 298.20 ................................................ 298.21 Dated: ............. .............. 298.22 (JUDGMENT DEBTOR) 298.23 ................. 298.24 (ADDRESS) 298.25 ................. 298.26 HEARING DATE: ............ 298.27 HEARING PLACE: ........... 298.28 (Note to both parties: Bring with you to the hearing all 298.29 documents and materials relevant to the exemption claim and 298.30 objection. Failure to do so could delay the court's decision.) 298.31 Subd. 7. [RIGHT TO REQUEST REVIEW.] (a) To request 298.32 administrative review of an action taken by the public authority 298.33 under this section, the obligor must make a request in writing 298.34 directed to the public authority or file a motion with the court 298.35 within 20 days of the date the notice of a child support 298.36 judgment levy was served on the obligor. 298.37 (b) The public authority's receipt of a written request for 298.38 administrative review starts the administrative process. At a 298.39 hearing conducted under section 518.5511, the only issues to be 298.40 determined are whether: 299.1 (1) the public authority complied with the process required 299.2 by this section; 299.3 (2) the amount stated in the notice of child support 299.4 judgment levy is owed by the obligor; and 299.5 (3) the amount stated in the notice of child support 299.6 judgment levy is correct. 299.7 (c) The obligor's filing of a motion requesting a court 299.8 hearing under the Rules of Civil Procedure serves to stay the 299.9 levy on the obligor's property, but the lien remains in force 299.10 and effect until the court has issued a final ruling on the 299.11 matter and all periods for appeal have expired. At a court 299.12 hearing requested by the obligor, the only issues to be 299.13 determined are whether: 299.14 (1) the public authority complied with the process required 299.15 by this section; 299.16 (2) the amount stated in the notice of child support 299.17 judgment levy is owed by the obligor; and 299.18 (3) the amount stated in the notice of child support 299.19 judgment levy is correct. 299.20 (d) The court may review the proceeding taken by the public 299.21 authority under this section and may correct any mistakes of 299.22 fact but shall not reduce or retroactively modify child support 299.23 arrears. 299.24 Subd. 8. [RELEASE OF FUNDS.] At any time during the 299.25 procedure specified in this section, the judgment debtor or the 299.26 attorney for the public authority or the public authority may, 299.27 by a writing dated after the service of the writ of execution, 299.28 direct the financial institution to release the funds in 299.29 question to the other party. Upon receipt of a release, the 299.30 financial institution shall release the funds as directed. 299.31 Subd. 9. [SUBSEQUENT PROCEEDINGS; BAD FAITH CLAIM.] If in 299.32 subsequent proceedings brought by the judgment debtor or the 299.33 public authority, the claim of exemption is not upheld, and the 299.34 office of administrative hearings finds that it was asserted in 299.35 bad faith, the public authority shall be awarded actual damages, 299.36 costs, and reasonable attorney fees resulting from the 300.1 additional proceedings, and an amount not to exceed $100. The 300.2 underlying judgment must be modified to reflect assessment of 300.3 damages, costs, and attorney fees. However, if the party in 300.4 whose favor a penalty assessment is made is not actually 300.5 indebted to the party's attorney for fees, the attorney's fee 300.6 award shall be made directly to the attorney and if not paid, an 300.7 appropriate judgment in favor of the attorney shall be entered. 300.8 Upon motion of any party in interest, on notice, the office of 300.9 administrative hearings shall determine the validity of any 300.10 claim of exemption, and may make any order necessary to protect 300.11 the rights of those interested. No financial institution is 300.12 liable for damages for complying with this section. Both copies 300.13 of an exemption claim or an objection to an exemption claim must 300.14 be mailed or delivered on the same date. The financial 300.15 institution may rely on the date of mailing or delivery of a 300.16 notice to it in computing any time periods in this section. 300.17 Subd. 10. [FORMS.] The public authority shall develop 300.18 statutory forms for use as required under this section. 300.19 Sec. 97. [CHILD SUPPORT ENFORCEMENT PROGRAM; SERVICES 300.20 DELIVERY STUDY.] 300.21 The commissioner of human services shall conduct a study of 300.22 the overall state child support enforcement delivery system in 300.23 order to appropriately meet the performance requirements of new 300.24 federal law. 300.25 Sec. 98. [AGENCY CONSULTATION ON SUSPENDING RECREATIONAL 300.26 LICENSES.] 300.27 The commissioner shall consult with other state agencies to 300.28 establish procedures to meet federal requirements to suspend 300.29 recreational licenses of child support obligors who fail to pay 300.30 child support. 300.31 Sec. 99. [TRANSFER TO COMMISSIONER OF CHILDREN, FAMILIES, 300.32 AND LEARNING; REVISOR INSTRUCTION.] 300.33 Effective July 1, 1997, all duties and funding related to 300.34 family visitation centers under Minnesota Statutes, section 300.35 256F.09, are transferred to the commissioner of children, 300.36 families, and learning. In the next edition of Minnesota 301.1 Statutes, the revisor of statutes shall renumber Minnesota 301.2 Statutes, section 256F.09, in Minnesota Statutes, chapter 119A. 301.3 Sec. 100. [INSTRUCTION TO REVISOR.] 301.4 The revisor shall delete the references to sections 518.611 301.5 and 518.613 and insert a reference to section 518.6111 wherever 301.6 the occur in Minnesota Statutes and Minnesota Rules. 301.7 Sec. 101. [REPEALER.] 301.8 (a) Minnesota Statutes 1996, sections 518C.9011; and 301.9 609.375, subdivisions 3, 4, and 6, are repealed. 301.10 (b) Minnesota Statutes 1996, sections 256.74; 256.979, 301.11 subdivision 9; 256F.05, subdivisions 5 and 7; 518.5511, 301.12 subdivisions 5, 6, 7, 8, and 9; 518.611; 518.613; 518.645; and 301.13 518C.502, are repealed effective July 1, 1997. 301.14 Sec. 102. [EFFECTIVE DATE.] 301.15 Section 1 is effective the day following final enactment. 301.16 Sections 3, and 79 to 89 are effective July 1, 1998. 301.17 Section 82 (amending section 548.091, by adding a subdivision 5) 301.18 applies only to judgments first docketed on or after July 1, 301.19 1998. 301.20 Sections 20 to 27, amending the family preservation fund 301.21 provisions, are effective July 1, 1997. 301.22 ARTICLE 7 301.23 CONTINUING CARE FOR DISABLED PERSONS 301.24 Section 1. Minnesota Statutes 1996, section 62E.14, is 301.25 amended by adding a subdivision to read: 301.26 Subd. 4e. [WAIVER OF PREEXISTING CONDITIONS; PERSONS 301.27 COVERED BY PUBLICLY FUNDED HEALTH PROGRAMS.] A person may enroll 301.28 in the comprehensive plan with a waiver of the preexisting 301.29 condition limitation in subdivision 3, provided that: 301.30 (1) the person was formerly enrolled in the medical 301.31 assistance, general assistance medical care, or MinnesotaCare 301.32 program; 301.33 (2) the person is a Minnesota resident; and 301.34 (3) the person applies within 90 days of termination from 301.35 medical assistance, general assistance medical care, or 301.36 MinnesotaCare program. 302.1 Sec. 2. Minnesota Statutes 1996, section 245.652, 302.2 subdivision 1, is amended to read: 302.3 Subdivision 1. [PURPOSE.] The regional treatment centers 302.4 shall provide services designed to end a person's reliance on 302.5 chemical use or a person's chemical abuse and increase effective 302.6 and chemical-free functioning. Clinically effective programs 302.7 must be provided in accordance with section 246.64. Services 302.8 may be offered on the regional center campus or at sites 302.9 elsewhere in thecatchmentarea served by the regional treatment 302.10 center. 302.11 Sec. 3. Minnesota Statutes 1996, section 245.652, 302.12 subdivision 2, is amended to read: 302.13 Subd. 2. [SERVICES OFFERED.] Services providedmustmay 302.14 include, but are not limited to, the following: 302.15 (1) primary and extended residential care, including 302.16 residential treatment programs of varied duration intended to 302.17 deal with a person's chemical dependency or chemical abuse 302.18 problems; 302.19 (2) follow-up care to persons discharged from regional 302.20 treatment center programs or other chemical dependency programs; 302.21 (3) outpatient treatment programs; and 302.22 (4) other treatment services, as appropriate and as 302.23 provided under contract or shared service agreements. 302.24 Sec. 4. Minnesota Statutes 1996, section 245.652, 302.25 subdivision 4, is amended to read: 302.26 Subd. 4. [SYSTEM LOCATIONS.]Programs shall be located in302.27Anoka, Brainerd, Fergus Falls, St. Peter, and Willmar and may be302.28offered at other selected sites.Programs are currently located 302.29 in Walker, Anoka, Brainerd, Fergus Falls, St. Peter, Willmar, 302.30 and in the Moose Lake area, Cloquet, and Cambridge. Locations 302.31 of state-operated chemical dependency programs shall be 302.32 determined by needs of Minnesota counties and consumers. The 302.33 commissioner of human services shall have the authority to 302.34 consolidate or close any state-operated chemical dependency 302.35 programs that are not able to generate sufficient revenues to 302.36 cover their expenses, after reasonable attempts to generate 303.1 additional revenues have failed. Before the closure or 303.2 consolidation of any state-operated chemical dependency program, 303.3 the commissioner shall notify the chairs of the senate health 303.4 and family security finance division and the house of 303.5 representatives health and human services finance division. 303.6 Sec. 5. Minnesota Statutes 1996, section 246.0135, is 303.7 amended to read: 303.8 246.0135 [OPERATION OF REGIONAL TREATMENT CENTERS.] 303.9 (a) The commissioner of human services is prohibited from 303.10 closing any regional treatment center or state-operated nursing 303.11 homeorand, except for chemical dependency programs as provided 303.12 in section 245.652, any program at any of the regional treatment 303.13 centers or state-operated nursing homes, without specific 303.14 legislative authorization. For persons with mental retardation 303.15 or related conditions who move from one regional treatment 303.16 center to another regional treatment center, the provisions of 303.17 section 256B.092, subdivision 10, must be followed for both the 303.18 discharge from one regional treatment center and admission to 303.19 another regional treatment center, except that the move is not 303.20 subject to the consensus requirement of section 256B.092, 303.21 subdivision 10, paragraph (b). 303.22 (b) Prior to closing or downsizing a regional treatment 303.23 center, the commissioner of human services shall be responsible 303.24 for assuring that community-based alternatives developed in 303.25 response are adequate to meet the program needs identified by 303.26 each county within the catchment area and do not require 303.27 additional local county property tax expenditures. 303.28 (c) The nonfederal share of the cost of alternative 303.29 treatment or care developed as the result of the closure of a 303.30 regional treatment center, including costs associated with 303.31 fulfillment of responsibilities under chapter 253B shall be paid 303.32 from state funds appropriated for purposes specified in section 303.33 246.013. 303.34 (d) Counties in the catchment area of a regional treatment 303.35 center which has been closed or downsized may not at any time be 303.36 required to pay a greater cost of care for alternative care and 304.1 treatment than the county share set by the commissioner for the 304.2 cost of care provided by regional treatment centers. 304.3 (e) The commissioner may not divert state funds used for 304.4 providing for care or treatment of persons residing in a 304.5 regional treatment center for purposes unrelated to the care and 304.6 treatment of such persons. 304.7 Sec. 6. Minnesota Statutes 1996, section 246.02, 304.8 subdivision 2, is amended to read: 304.9 Subd. 2. The commissioner of human services shall act with 304.10 the advice of the medical policy directional committee on mental 304.11 health in the appointment and removal of the chief executive 304.12 officers of the following institutions: Anoka-Metro Regional 304.13 Treatment Center, Ah-Gwah-Ching Center, Fergus Falls Regional 304.14 Treatment Center, St. Peter Regional Treatment Center and 304.15 Minnesota Security Hospital, Willmar Regional Treatment Center, 304.16Faribault Regional Center,Cambridge Regional Human Services 304.17 Center, Brainerd Regional Human Services Center,and until June304.1830, 1995, Moose Lake Regional Treatment Center, and after June304.1930, 1995,Minnesota Sexual Psychopathic Personality Treatment 304.20 Center and until June 30, 1998, Faribault Regional Center. 304.21 Sec. 7. Minnesota Statutes 1996, section 252.025, 304.22 subdivision 1, is amended to read: 304.23 Subdivision 1. [REGIONAL TREATMENT CENTERS.] State 304.24 hospitals for persons with mental retardation shall be 304.25 established and maintained at Faribault until June 30, 1998, 304.26 Cambridge and Brainerd, and notwithstanding any provision to the 304.27 contrary they shall be respectively known as the Faribault 304.28 regional center, the Cambridge regional human services center, 304.29 and the Brainerd regional human services center. Each of the 304.30 foregoing state hospitals shall also be known by the name of 304.31 regional center at the discretion of the commissioner of human 304.32 services. The terms "human services" or "treatment" may be 304.33 included in the designation. 304.34 Sec. 8. Minnesota Statutes 1996, section 252.025, 304.35 subdivision 4, is amended to read: 304.36 Subd. 4. [STATE-PROVIDED SERVICES.] (a) It is the policy 305.1 of the state to capitalize and recapitalize the regional 305.2 treatment centers as necessary to prevent depreciation and 305.3 obsolescence of physical facilities and to ensure they retain 305.4 the physical capability to provide residential programs. 305.5 Consistent with that policy and with section 252.50, and within 305.6 the limits of appropriations made available for this purpose, 305.7 the commissioner may establish, by June 30, 1991, the following 305.8 state-operated, community-based programs for the least 305.9 vulnerable regional treatment center residents: at Brainerd 305.10 regional services center, two residential programs and two day 305.11 programs; at Cambridge regional treatment center, four 305.12 residential programs and two day programs; at Faribault regional 305.13 treatment center, ten residential programs and six day programs; 305.14 at Fergus Falls regional treatment center, two residential 305.15 programs and one day program; at Moose Lake regional treatment 305.16 center, four residential programs and two day programs; and at 305.17 Willmar regional treatment center, two residential programs and 305.18 one day program. 305.19 (b) By January 15, 1991, the commissioner shall report to 305.20 the legislature a plan to provide continued regional treatment 305.21 center capacity and state-operated, community-based residential 305.22 and day programs for persons with developmental disabilities at 305.23 Brainerd, Cambridge,Faribault,Fergus Falls, St. Peter, and 305.24 Willmar, as follows: 305.25 (1) by July 1, 1998, continued regional treatment center 305.26 capacity to serve 350 persons with developmental disabilities as 305.27 follows: at Brainerd, 80 persons; at Cambridge, 12 persons;at305.28Faribault, 110 persons;at Fergus Falls, 60 persons; at St. 305.29 Peter, 35 persons; at Willmar, 25 persons; and up to 16 crisis 305.30 beds in the Twin Cities metropolitan area; and 305.31 (2) by July 1, 1999, continued regional treatment center 305.32 capacity to serve 254 persons with developmental disabilities as 305.33 follows: at Brainerd, 57 persons; at Cambridge, 12 persons;at305.34Faribault, 80 persons;at Fergus Falls, 35 persons; at St. 305.35 Peter, 30 persons; at Willmar, 12 persons, and up to 16 crisis 305.36 beds in the Twin Cities metropolitan area. In addition, the 306.1 plan shall provide for the capacity to provide residential 306.2 services to 570 persons with developmental disabilities in 95 306.3 state-operated, community-based residential programs. 306.4 The commissioner is subject to a mandamus action under 306.5 chapter 586 for any failure to comply with the provisions of 306.6 this subdivision. 306.7 Sec. 9. Minnesota Statutes 1996, section 252.025, is 306.8 amended by adding a subdivision to read: 306.9 Subd. 7. [MINNESOTA EXTENDED TREATMENT OPTIONS.] The 306.10 commissioner shall develop by July 1, 1997, the Minnesota 306.11 extended treatment options to serve Minnesotans who have mental 306.12 retardation and exhibit severe behaviors which present a risk to 306.13 public safety. This program will provide specialized 306.14 residential services on the Cambridge campus and an array of 306.15 community support services statewide. 306.16 Sec. 10. Minnesota Statutes 1996, section 252.32, 306.17 subdivision 1a, is amended to read: 306.18 Subd. 1a. [SUPPORT GRANTS.] (a) Provision of support 306.19 grants must be limited to families who require support and whose 306.20 dependents are under the age of 22 and who have mental 306.21 retardation or who have a related condition and who have been 306.22 determined by a screening team established under section 306.23 256B.092 to be at risk of institutionalization. Families who 306.24 are receiving home and community-based waivered services for 306.25 persons with mental retardation or related conditions are not 306.26 eligible for support grants. Families whose annual adjusted 306.27 gross income is $60,000 or more are not eligible for support 306.28 grants except in cases where extreme hardship is demonstrated. 306.29 Beginning in state fiscal year 1994, the commissioner shall 306.30 adjust the income ceiling annually to reflect the projected 306.31 change in the average value in the United States Department of 306.32 Labor Bureau of Labor Statistics consumer price index (all 306.33 urban) for that year. 306.34 (b) Support grants may be made available as monthly subsidy 306.35 grants and lump sum grants. 306.36 (c) Support grants may be issued in the form of cash, 307.1 voucher, and direct county payment to a vendor. 307.2 (d) Applications for the support grant shall be made by the 307.3 legal guardian to the county social service agencyto the307.4department of human services. The application shall specify the 307.5 needs of the families, the form of the grant requested by the 307.6 families, and that the families have agreed to use the support 307.7 grant for items and services within the designated reimbursable 307.8 expense categories and recommendations of the county. 307.9 (e) Families who were receiving subsidies on the date of 307.10 implementation of the $60,000 income limit in paragraph (a) 307.11 continue to be eligible for a family support grant until 307.12 December 31, 1991, if all other eligibility criteria are met. 307.13 After December 31, 1991, these families are eligible for a grant 307.14 in the amount of one-half the grant they would otherwise 307.15 receive, for as long as they remain eligible under other 307.16 eligibility criteria. 307.17 Sec. 11. Minnesota Statutes 1996, section 252.32, 307.18 subdivision 3, is amended to read: 307.19 Subd. 3. [AMOUNT OF SUPPORT GRANT; USE.] Support grant 307.20 amounts shall be determined by thecommissioner of human307.21servicescounty social service agency. Each service and item 307.22 purchased with a support grant must: 307.23 (1) be over and above the normal costs of caring for the 307.24 dependent if the dependent did not have a disability; 307.25 (2) be directly attributable to the dependent's disabling 307.26 condition; and 307.27 (3) enable the family to delay or prevent the out-of-home 307.28 placement of the dependent. 307.29 The design and delivery of services and items purchased 307.30 under this section must suit the dependent's chronological age 307.31 and be provided in the least restrictive environment possible, 307.32 consistent with the needs identified in the individual service 307.33 plan. 307.34 Items and services purchased with support grants must be 307.35 those for which there are no other public or private funds 307.36 available to the family. Fees assessed to parents for health or 308.1 human services that are funded by federal, state, or county 308.2 dollars are not reimbursable through this program. 308.3 The maximum monthly amount shall be $250 per eligible 308.4 dependent, or $3,000 per eligible dependent per state fiscal 308.5 year, within the limits of available funds.During fiscal year308.61992 and 1993, the maximum monthly grant awarded to families who308.7are eligible for medical assistance shall be $200, except in308.8cases where extreme hardship is demonstrated.Thecommissioner308.9 county social service agency may consider the dependent's 308.10 supplemental security income in determining the amount of the 308.11 support grant.A varianceThe county social service agency may 308.12be granted by the commissioner toexceed $3,000 per state fiscal 308.13 year per eligible dependent for emergency circumstances in cases 308.14 where exceptional resources of the family are required to meet 308.15 the health, welfare-safety needs of the child. Thecommissioner308.16 county social service agency may set aside up to five percent of 308.17the appropriationtheir allocation to fund emergency situations. 308.18 Effective July 1, 1997, county social service agencies 308.19 shall continue to provide funds to families receiving state 308.20 grants on June 30, 1997, if eligibility criteria continue to be 308.21 met. Any adjustments to their monthly grant amount must be 308.22 based on the needs of the family and funding availability. 308.23 Sec. 12. Minnesota Statutes 1996, section 252.32, 308.24 subdivision 3a, is amended to read: 308.25 Subd. 3a. [REPORTS ANDREIMBURSEMENTALLOCATIONS.] (a) The 308.26 commissioner shall specify requirements for quarterly fiscal and 308.27 annual program reports according to section 256.01, subdivision 308.28 2, paragraph (17). Program reports shall include data which 308.29 will enable the commissioner to evaluate program effectiveness 308.30 and to audit compliance. The commissioner shall reimburse 308.31 county costs on a quarterly basis. 308.32 (b) Beginning January 1, 1998, the commissioner shall 308.33 allocate state funds made available under this section to county 308.34 social service agencies on a calendar year basis. The 308.35 commissioner shall allocate to each county first in amounts 308.36 equal to each county's guaranteed floor as described in clause 309.1 (1), and second, any remaining funds, after the allocation of 309.2 funds to the newly participating counties as provided for in 309.3 clause (3), shall be allocated in proportion to each county's 309.4 total number of families receiving a grant on July 1 of the most 309.5 recent calendar year. 309.6 (1) Each county's guaranteed floor shall be calculated as 309.7 follows: 309.8 (i) 95 percent of the county's allocation received in the 309.9 preceding calendar year. For the calendar year 1998 allocation, 309.10 the preceding calendar year shall be considered to be double the 309.11 six-month allocation as provided in clause (2); 309.12 (ii) when the amount of funds available for allocation is 309.13 less than the amount available in the preceding year, each 309.14 county's previous year allocation shall be reduced in proportion 309.15 to the reduction in statewide funding, for the purpose of 309.16 establishing the guaranteed floor. 309.17 (2) For the period July 1, 1997, to December 31, 1997, the 309.18 commissioner shall allocate to each county an amount equal to 309.19 the actual, state approved, grants issued to the families for 309.20 the month of January 1997, multiplied by six. This six-month 309.21 allocation shall be combined with the calendar year 1998 309.22 allocation and be administered as an 18-month allocation. 309.23 (3) At the commissioner's discretion, funds may be 309.24 allocated to any nonparticipating county that requests an 309.25 allocation under this section. Allocations to newly 309.26 participating counties are dependent upon the availability of 309.27 funds, as determined by the actual expenditure amount of the 309.28 participating counties for the most recently completed calendar 309.29 year. 309.30 (4) The commissioner shall regularly review the use of 309.31 family support fund allocations by county. The commissioner may 309.32 reallocate unexpended or unencumbered money at any time to those 309.33 counties that have a demonstrated need for additional funding. 309.34 (c) County allocations under this section will be adjusted 309.35 for transfers that occur pursuant to section 256.476. 309.36 Sec. 13. Minnesota Statutes 1996, section 252.32, 310.1 subdivision 3c, is amended to read: 310.2 Subd. 3c. [COUNTY BOARD RESPONSIBILITIES.] County boards 310.3 receiving funds under this section shall: 310.4 (1) determine the needs of families for services in 310.5 accordance with section 256B.092 or 256E.08 and any rules 310.6 adopted under those sections; 310.7 (2) determine the eligibility of all persons proposed for 310.8 program participation; 310.9 (3)recommend for approval allapprove a plan for items and 310.10 services to be reimbursed and inform families of 310.11 thecommissioner'scounty's approval decision; 310.12 (4) issue support grants directly to, or on behalf of, 310.13 eligible families; 310.14 (5) inform recipients of their right to appeal under 310.15 subdivision 3e; 310.16 (6) submit quarterly financial reports under subdivision 3b 310.17 and indicate on the screening documents the annual grant level 310.18 for the recipients; and 310.19 (7) coordinate services with other programs offered by the 310.20 county. 310.21 Sec. 14. Minnesota Statutes 1996, section 252.32, 310.22 subdivision 5, is amended to read: 310.23 Subd. 5. [COMPLIANCE.] If a county board or grantee does 310.24 not comply with this sectionand the rules adopted by the310.25commissioner of human services, the commissioner may recover, 310.26 suspend, or withhold payments. 310.27 Sec. 15. Minnesota Statutes 1996, section 254.04, is 310.28 amended to read: 310.29 254.04 [TREATMENT OF CHEMICALLY DEPENDENT PERSONS.] 310.30 The commissioner of human services is hereby authorized to 310.31 continue the treatment of chemically dependent persons at 310.32 Ah-Gwah-Ching and Moose Lake area programs as well as at the 310.33 regional treatment centers located at Anoka, Brainerd, Fergus 310.34 Falls,Moose Lake,St. Peter, and Willmar as specified in 310.35 section 245.652.During the year ending June 30, 1994, the310.36commissioner shall relocate, in the catchment area served by the311.1Moose Lake regional treatment center, two state-operated311.2off-campus programs designed to serve patients who are relocated311.3from the Moose Lake regional treatment center. One program311.4shall be a 35-bed program for women who are chemically311.5dependent; the other shall be a 25-bed program for men who are311.6chemically dependent. The facility space housing the Liberalis311.7chemical dependency program (building C-35) and the men's311.8chemical dependency program (4th floor main) may not be vacated311.9until suitable off-campus space for the women's chemical311.10dependency program of 35 beds and the men's chemical dependency311.11program of 25 beds is located and clients and staff are311.12relocated.311.13 Sec. 16. Minnesota Statutes 1996, section 254B.02, 311.14 subdivision 3, is amended to read: 311.15 Subd. 3. [RESERVE ACCOUNT.] The commissioner shall 311.16 allocate money from the reserve account to counties that, during 311.17 the current fiscal year, have met or exceeded the base level of 311.18 expenditures for eligible chemical dependency services from 311.19 local money. The commissioner shall establish the base level 311.20 for fiscal year 1988 as the amount of local money used for 311.21 eligible services in calendar year 1986. In later years, the 311.22 base level must be increased in the same proportion as state 311.23 appropriations to implement Laws 1986, chapter 394, sections 8 311.24 to 20, are increased. The base level must be decreased if the 311.25 fund balance from which allocations are made under section 311.26 254B.02, subdivision 1, is decreased in later years. The local 311.27 match rate for the reserve account is the same rate as applied 311.28 to the initial allocation. Reserve account payments must not be 311.29 included when calculating the county adjustments made according 311.30 to subdivision 2. For counties providing medical assistance or 311.31 general assistance medical care through managed care plans on 311.32 January 1, 1996, the base year is fiscal year 1995. For 311.33 counties beginning provision of managed care after January 1, 311.34 1996, the base year is the most recent fiscal year before 311.35 enrollment in managed care begins. For counties providing 311.36 managed care, the base level will be increased or decreased in 312.1 proportion to changes in the fund balance from which allocations 312.2 are made under subdivision 2, but will be additionally increased 312.3 or decreased in proportion to the change in county adjusted 312.4 population made in subdivision 1, paragraphs (b) and (c). 312.5 Sec. 17. Minnesota Statutes 1996, section 254B.03, 312.6 subdivision 1, is amended to read: 312.7 Subdivision 1. [LOCAL AGENCY DUTIES.] (a) Every local 312.8 agency shall provide chemical dependency services to persons 312.9 residing within its jurisdiction who meet criteria established 312.10 by the commissioner for placement in a chemical dependency 312.11 residential or nonresidential treatment service. Chemical 312.12 dependency money must be administered by the local agencies 312.13 according to law and rules adopted by the commissioner under 312.14 sections 14.001 to 14.69. 312.15 (b) In order to contain costs, the county board shall, with 312.16 the approval of the commissioner of human services, select 312.17 eligible vendors of chemical dependency services who can provide 312.18 economical and appropriate treatment. Unless the local agency 312.19 is a social services department directly administered by a 312.20 county or human services board, the local agency shall not be an 312.21 eligible vendor under section 254B.05. The commissioner may 312.22 approve proposals from county boards to provide services in an 312.23 economical manner or to control utilization, with safeguards to 312.24 ensure that necessary services are provided. If a county 312.25 implements a demonstration or experimental medical services 312.26 funding plan, the commissioner shall transfer the money as 312.27 appropriate. If a county selects a vendor located in another 312.28 state, the county shall ensure that the vendor is in compliance 312.29 with the rules governing licensure of programs located in the 312.30 state. 312.31 (c) For the biennium ending June 30, 1999, the rate for 312.32 vendors may not increase more than three percent above the rate 312.33 approved on January 1, 1997. Residential vendors may not 312.34 receive a rate increase in the biennium ending June 30, 1999, if 312.35 the rate charged on January 1, 1997, exceeds the statewide 312.36 median rate for that level of care. Rates for residential 313.1 levels of care for vendors who are enrolled after January 1, 313.2 1997, may not exceed the median rate for each level of care 313.3 provided. 313.4(c)(d) A culturally specific vendor that provides 313.5 assessments under a variance under Minnesota Rules, part 313.6 9530.6610, shall be allowed to provide assessment services to 313.7 persons not covered by the variance. 313.8 Sec. 18. Minnesota Statutes 1996, section 256B.0625, 313.9 subdivision 15, is amended to read: 313.10 Subd. 15. [HEALTH PLAN PREMIUMS AND COPAYMENTS.] Medical 313.11 assistance covers health care prepayment plan premiums, 313.12 insurance premiums, and copayments if determined to be 313.13 cost-effective by the commissioner. Effective for all premium 313.14 payments due on or after January 1, 1998, medical assistance 313.15 does not cover premiums for health insurance policies offered by 313.16 the Minnesota comprehensive health association under chapter 62E. 313.17 For purposes of obtaining Medicare part A and part B, and 313.18 copayments, expenditures may be made even if federal funding is 313.19 not available. 313.20 Sec. 19. [256B.095] [THREE-YEAR QUALITY ASSURANCE PILOT 313.21 PROJECT ESTABLISHED.] 313.22 Effective July 1, 1998, an alternative quality assurance 313.23 licensing system pilot project for programs for persons with 313.24 developmental disabilities is established in Dodge, Fillmore, 313.25 Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, Steele, 313.26 Wabasha, and Winona counties for the purpose of improving the 313.27 quality of services provided to persons with developmental 313.28 disabilities. A county, at its option, may choose to have all 313.29 programs for persons with developmental disabilities located 313.30 within the county licensed under chapter 245A using standards 313.31 determined under the alternative quality assurance licensing 313.32 system pilot project or may continue regulation of these 313.33 programs under the licensing system operated by the 313.34 commissioner. The pilot project expires on June 30, 2001. 313.35 Sec. 20. [256B.0951] [QUALITY ASSURANCE COMMISSION.] 313.36 Subdivision 1. [MEMBERSHIP.] The region 10 quality 314.1 assurance commission is established. The commission consists of 314.2 at least 13 but not more than 20 members as follows: at least 314.3 three but not more than five members representing advocacy 314.4 organizations; at least three but not more than five members 314.5 representing consumers, families, and their legal 314.6 representatives; at least three but not more than five members 314.7 representing service providers; and at least three but not more 314.8 than five members representing counties. Initial membership of 314.9 the commission shall be recruited and approved by the region 10 314.10 stakeholders group. Prior to approving the commission's 314.11 membership, the stakeholders group shall provide to the 314.12 commissioner a list of the membership in the stakeholders group, 314.13 as of February 1, 1997, a brief summary of meetings held by the 314.14 group since July 1, 1996, and copies of any materials prepared 314.15 by the group for public distribution. The first commission 314.16 shall establish membership guidelines for the transition and 314.17 recruitment of membership for the commission's ongoing 314.18 existence. Members of the commission who do not receive a 314.19 salary or wages from an employer for time spent on commission 314.20 duties may receive a per diem payment when performing commission 314.21 duties and functions. All members may be reimbursed for 314.22 expenses related to commission activities. Notwithstanding the 314.23 provisions of section 15.059, subdivision 5, the commission 314.24 expires on June 30, 2001. 314.25 Subd. 2. [AUTHORITY TO HIRE STAFF.] The commission may 314.26 hire staff to perform the duties assigned in this section. 314.27 Subd. 3. [COMMISSION DUTIES.] (a) By October 1, 1997, the 314.28 commission, in cooperation with the commissioners of human 314.29 services and health, shall do the following: (1) approve an 314.30 alternative quality assurance licensing system based on the 314.31 evaluation of outcomes; (2) approve measurable outcomes in the 314.32 areas of health and safety, consumer evaluation, education and 314.33 training, providers, and systems that shall be evaluated during 314.34 the alternative licensing process; and (3) establish variable 314.35 licensure periods not to exceed three years based on outcomes 314.36 achieved. For purposes of this subdivision, "outcome" means the 315.1 behavior, action, or status of a person that can be observed or 315.2 measured and can be reliably and validly determined. 315.3 (b) By January 15, 1998, the commission shall approve, in 315.4 cooperation with the commissioner of human services, a training 315.5 program for members of the quality assurance teams established 315.6 under section 256B.0952. 315.7 Subd. 4. [COMMISSION'S AUTHORITY TO RECOMMEND VARIANCES OF 315.8 LICENSING STANDARDS.] The commission may recommend to the 315.9 commissioners of human services and health variances from the 315.10 standards governing licensure of programs for persons with 315.11 developmental disabilities in order to improve the quality of 315.12 services by implementing an alternative developmental 315.13 disabilities licensing system if the commission determines that 315.14 the alternative licensing system does not affect the health or 315.15 safety of persons being served by the licensed program nor 315.16 compromise the qualifications of staff to provide services. 315.17 Subd. 5. [VARIANCE OF CERTAIN STANDARDS PROHIBITED.] The 315.18 safety standards, rights, or procedural protections under 315.19 sections 245.825; 245.91 to 245.97; 245A.04, subdivisions 3, 3a, 315.20 3b, and 3c; 245A.09, subdivision 2, paragraph (c), clauses (2) 315.21 and (5); 245A.12; 245A.13; 252.41, subdivision 9; 256B.092, 315.22 subdivisions 1b, clause (7), and 10; 626.556; 626.557, and 315.23 procedures for the monitoring of psychotropic medications shall 315.24 not be varied under the alternative licensing system pilot 315.25 project. The commission may make recommendations to the 315.26 commissioners of human services and health or to the legislature 315.27 regarding alternatives to or modifications of the rules 315.28 referenced in this subdivision. 315.29 Subd. 6. [PROGRESS REPORT.] The commission shall submit a 315.30 progress report to the legislature on pilot project development 315.31 by January 15, 1998. The report shall include recommendations 315.32 on any legislative changes necessary to improve cooperation 315.33 between the commission and the commissioners of human services 315.34 and health. 315.35 Sec. 21. [256B.0952] [COUNTY DUTIES; QUALITY ASSURANCE 315.36 TEAMS.] 316.1 Subdivision 1. [NOTIFICATION.] By January 15, 1998, each 316.2 affected county shall notify the commission and the 316.3 commissioners of human services and health as to whether it 316.4 chooses to implement on July 1, 1998, the alternative licensing 316.5 system for the pilot project. A county that does not implement 316.6 the alternative licensing system on July 1, 1998, may give 316.7 notice to the commission and the commissioners by January 15, 316.8 1999, or January 15, 2000, that it will implement the 316.9 alternative licensing system on the following July 1. A county 316.10 that implements the alternative licensing system commits to 316.11 participate until June 30, 2001. 316.12 Subd. 2. [APPOINTMENT OF REVIEW COUNCIL; DUTIES OF 316.13 COUNCIL.] A county or group of counties that choose to 316.14 participate in the alternative licensing system shall appoint a 316.15 quality assurance review council comprised of advocates; 316.16 consumers, families, and their legal representatives; providers; 316.17 and county staff. The council shall: 316.18 (1) review summary reports from quality assurance team 316.19 reviews and make recommendations to counties regarding program 316.20 licensure; 316.21 (2) make recommendations to the commission regarding the 316.22 alternative licensing system and quality assurance process; and 316.23 (3) resolve complaints between the quality assurance teams, 316.24 counties, providers, and consumers, families, and their legal 316.25 representatives. 316.26 Subd. 3. [NOTICE TO COMMISSIONERS.] The county, based on 316.27 reports from quality assurance managers and recommendations from 316.28 the quality assurance review council regarding the findings of 316.29 quality assurance teams, shall notify the commissioners of human 316.30 services and health regarding whether facilities, programs, or 316.31 services have met the outcome standards for licensure and are 316.32 eligible for payment. 316.33 Subd. 4. [APPOINTMENT OF QUALITY ASSURANCE MANAGER.] (a) A 316.34 county or group of counties that choose to participate in the 316.35 alternative licensing system shall designate a quality assurance 316.36 manager and shall establish quality assurance teams in 317.1 accordance with subdivision 5. The manager shall recruit, 317.2 train, and assign duties to the quality assurance team members. 317.3 In assigning team members to conduct the quality assurance 317.4 process at a facility, program, or service, the manager shall 317.5 take into account the size of the service provider, the number 317.6 of services to be reviewed, the skills necessary for team 317.7 members to complete the process, and other relevant factors. 317.8 The manager shall ensure that no team member has a financial, 317.9 personal, or family relationship with the facility, program, or 317.10 service being reviewed or with any clients of the facility, 317.11 program, or service. 317.12 (b) Quality assurance teams shall report the findings of 317.13 their quality assurance reviews to the quality assurance manager. 317.14 The quality assurance manager shall provide the report from the 317.15 quality assurance team to the county and commissioners of human 317.16 services and health and a summary of the report to the quality 317.17 assurance review council. 317.18 Subd. 5. [QUALITY ASSURANCE TEAMS.] Quality assurance 317.19 teams shall be comprised of county staff; providers; consumers, 317.20 families, and their legal representatives; members of advocacy 317.21 organizations; and other involved community members. Team 317.22 members must satisfactorily complete the training program 317.23 approved by the commission and must demonstrate 317.24 performance-based competency. Team members are not considered 317.25 to be county employees for purposes of workers' compensation, 317.26 unemployment compensation, or state retirement laws solely on 317.27 the basis of participation on a quality assurance team. The 317.28 county may pay a per diem to team members who do not receive a 317.29 salary or wages from an employer for time spent on alternative 317.30 quality assurance process matters. All team members may be 317.31 reimbursed for expenses related to their participation in the 317.32 alternative process. 317.33 Subd. 6. [LICENSING FUNCTIONS.] Participating counties 317.34 shall perform licensing functions and activities as delegated by 317.35 the commissioner of human services in accordance with section 317.36 245A.16. 318.1 Sec. 22. [256B.0953] [QUALITY ASSURANCE PROCESS.] 318.2 Subdivision 1. [PROCESS COMPONENTS.] (a) The quality 318.3 assurance licensing process consists of an evaluation by a 318.4 quality assurance team of the facility, program, or service 318.5 according to outcome-based measurements. The process must 318.6 include an evaluation of a random sample of program consumers. 318.7 The sample must be representative of each service provided. The 318.8 sample size must be at least five percent of consumers but not 318.9 less than three consumers. 318.10 (b) All consumers must be given the opportunity to be 318.11 included in the quality assurance process in addition to those 318.12 chosen for the random sample. 318.13 Subd. 2. [LICENSURE PERIODS.] (a) In order to be licensed 318.14 under the alternative quality assurance process, a facility, 318.15 program, or service must satisfy the health and safety outcomes 318.16 approved for the pilot project. 318.17 (b) Licensure shall be approved for periods of one to three 318.18 years for a facility, program, or service that satisfies the 318.19 requirements of paragraph (a) and achieves the outcome 318.20 measurements in the categories of consumer evaluation, education 318.21 and training, providers, and systems. 318.22 Subd. 3. [APPEALS PROCESS.] A facility, program, or 318.23 service may contest a licensing decision of the quality 318.24 assurance team as permitted under chapter 245A. 318.25 Sec. 23. [256B.0954] [CERTAIN PERSONS DEFINED AS MANDATED 318.26 REPORTERS.] 318.27 Members of the quality assurance commission established 318.28 under section 256B.0951, members of quality assurance review 318.29 councils established under section 256B.0952, quality assurance 318.30 managers appointed under section 256B.0952, and members of 318.31 quality assurance teams established under section 256B.0952 are 318.32 mandated reporters as that term is defined in sections 626.556, 318.33 subdivision 3, and 626.5572, subdivision 16. 318.34 Sec. 24. [256B.0955] [DUTIES OF THE COMMISSIONER OF HUMAN 318.35 SERVICES.] 318.36 (a) Effective July 1, 1998, the commissioner of human 319.1 services shall delegate authority to perform licensing functions 319.2 and activities, in accordance with section 245A.16, to counties 319.3 participating in the alternative licensing system. The 319.4 commissioner shall not license or reimburse a facility, program, 319.5 or service for persons with developmental disabilities in a 319.6 county that participates in the alternative licensing system if 319.7 the commissioner has received from the appropriate county 319.8 notification that the facility, program, or service has been 319.9 reviewed by a quality assurance team and has failed to qualify 319.10 for licensure. 319.11 (b) The commissioner may conduct random licensing 319.12 inspections based on outcomes adopted under section 256B.0951 at 319.13 facilities, programs, and services governed by the alternative 319.14 licensing system. The role of such random inspections shall be 319.15 to verify that the alternative licensing system protects the 319.16 safety and well-being of consumers and maintains the 319.17 availability of high-quality services for persons with 319.18 developmental disabilities. 319.19 (c) The commissioner shall provide technical assistance and 319.20 support or training to the alternative licensing system pilot 319.21 project. 319.22 (d) The commissioner and the commission shall establish an 319.23 ongoing evaluation process for the alternative licensing system. 319.24 (e) The commissioner shall contract with an independent 319.25 entity to conduct a financial review of the alternative 319.26 licensing system, including an evaluation of possible budgetary 319.27 savings within the department of human services and the 319.28 department of health as a result of implementation of the 319.29 alternative quality assurance licensing system. This review 319.30 must be completed by December 15, 2000. 319.31 (f) The commissioner and the commission shall submit a 319.32 report to the legislature by January 15, 2001, on the results of 319.33 the evaluation process of the alternative licensing system, a 319.34 summary of the results of the independent financial review, and 319.35 a recommendation on whether the pilot project should be extended 319.36 beyond June 30, 2001. 320.1 Sec. 25. [REQUEST FOR WAIVER.] 320.2 By January 1, 1998, the commissioner of human services or 320.3 health shall request a waiver from the federal Department of 320.4 Health and Human Services to permit the use of the alternative 320.5 quality assurance system to license and certify intermediate 320.6 care facilities for persons with mental retardation. 320.7 Sec. 26. Minnesota Statutes 1996, section 256B.49, 320.8 subdivision 1, is amended to read: 320.9 Subdivision 1. [STUDY; WAIVER APPLICATION.] The 320.10 commissioner shall authorize a study to assess the need for home 320.11 and community-based waivers for chronically ill children who 320.12 have been and will continue to be hospitalized without a waiver, 320.13 and for disabled individuals under the age of 65 who are likely 320.14 to reside in an acute care or nursing home facility in the 320.15 absence of a waiver. If a need for these waivers can be 320.16 demonstrated, the commissioner shall apply for federal waivers 320.17 necessary to secure, to the extent allowed by law, federal 320.18 participation under United States Code, title 42, sections 320.19 1396-1396p, as amended through December 31, 1982, for the 320.20 provision of home and community-based services to chronically 320.21 ill children who, in the absence of such a waiver, would remain 320.22 in an acute care setting, and to disabled individuals under the 320.23 age of 65 who, in the absence of a waiver, would reside in an 320.24 acute care or nursing home setting. If the need is 320.25 demonstrated, the commissioner shall request a waiver under 320.26 United States Code, title 42, sections 1396-1396p, to allow 320.27 medicaid eligibility for blind or disabled children with 320.28 ineligible parents where income deemed from the parents would 320.29 cause the applicant to be ineligible for supplemental security 320.30 income if the family shared a household and to furnish necessary 320.31 services in the home or community to disabled individuals under 320.32 the age of 65 who would be eligible for medicaid if 320.33 institutionalized in an acute care or nursing home setting. 320.34 These waivers are requested to furnish necessary services in the 320.35 home and community setting to children or disabled adults under 320.36 age 65 who are medicaid eligible when institutionalized in an 321.1 acute care or nursing home setting. The commissioner shall 321.2 assure that the cost of home and community-based care will not 321.3 be more than the cost of care if the eligible child or disabled 321.4 adult under age 65 were to remain institutionalized. The 321.5 average monthly limit for the cost of home and community-based 321.6 services to a community alternative care waiver client, 321.7 determined on a 12-month basis, shall not exceed the statewide 321.8 average medical assistance adjusted base year operating cost for 321.9 nursing and accommodation services under sections 256.9685 to 321.10 256.969 for the diagnostic category to which the waiver client 321.11 would be assigned except the admission and outlier rates shall 321.12 be converted to an overall per diem. The average monthly limit 321.13 for the cost of services to a traumatic brain injury 321.14 neurobehavioral hospital waiver client, determined on a 12-month 321.15 basis, shall not exceed the statewide average medical assistance 321.16 adjusted base-year operating cost for nursing and accommodation 321.17 services of neurobehavioral rehabilitation programs in Medicare 321.18 designated long-term hospitals under sections 256.9685 to 321.19 256.969. The following costs must be included in determining 321.20 the total average monthly costs for a waiver client: 321.21 (1) cost of all waivered services; and 321.22 (2) cost of skilled nursing, private duty nursing, home 321.23 health aide, and personal care services reimbursable by medical 321.24 assistance. 321.25 The commissioner of human services shall seek federal 321.26 waivers as necessary to implement the average monthly limit. 321.27 The commissioner shall seek to amend the federal waivers 321.28 obtained under this section to apply criteria to protect against 321.29 spousal impoverishment as authorized under United States Code, 321.30 title 42, section 1396r-5, and as implemented in sections 321.31 256B.0575, 256B.058, and 256B.059, except that the amendment 321.32 shall seek to add to the personal needs allowance permitted in 321.33 section 256B.0575, an amount equivalent to the group residential 321.34 housing rate as set by section 256I.03, subdivision 5. 321.35 Sec. 27. Minnesota Statutes 1996, section 256D.03, 321.36 subdivision 3b, is amended to read: 322.1 Subd. 3b. [COOPERATION.] General assistance or general 322.2 assistance medical care applicants and recipients must cooperate 322.3 with the state and local agency to identify potentially liable 322.4 third-party payors and assist the state in obtaining third-party 322.5 payments. Cooperation includes identifying any third party who 322.6 may be liable for care and services provided under this chapter 322.7 to the applicant, recipient, or any other family member for whom 322.8 application is made and providing relevant information to assist 322.9 the state in pursuing a potentially liable third party. General 322.10 assistance medical care applicants and recipients must cooperate 322.11 by providing information about any group health plan in which 322.12 they may be eligible to enroll. They must cooperate with the 322.13 state and local agency in determining if the plan is 322.14 cost-effective. If the plan is determined cost-effective and 322.15 the premium will be paid by the state or local agency or is 322.16 available at no cost to the person, they must enroll or remain 322.17 enrolled in the group health plan. Effective for all premium 322.18 payments due on or after January 1, 1998, general assistance 322.19 medical care does not pay for premiums for health insurance 322.20 offered by the Minnesota comprehensive health association under 322.21 chapter 62E. Cost-effective insurance premiums approved for 322.22 payment by the state agency and paid by the local agency are 322.23 eligible for reimbursement according to subdivision 6. 322.24 Sec. 28. Laws 1995, chapter 207, article 8, section 41, 322.25 subdivision 2, is amended to read: 322.26 Subd. 2. [PROGRAM DESIGN AND IMPLEMENTATION.] (a) The 322.27 pilot projects shall be established to design, plan, and improve 322.28 the mental health service delivery system for adults with 322.29 serious and persistent mental illness that would: 322.30 (1) provide an expanded array of services from which 322.31 clients can choose services appropriate to their needs; 322.32 (2) be based on purchasing strategies that improve access 322.33 and coordinate services without cost shifting; 322.34 (3) incorporate existing state facilities and resources 322.35 into the community mental health infrastructure through creative 322.36 partnerships with local vendors; and 323.1 (4) utilize existing categorical funding streams and 323.2 reimbursement sources in combined and creative ways, except 323.3 appropriations to regional treatment centers and all funds that 323.4 are attributable to the operation of state-operated services are 323.5 excluded unless appropriated specifically by the legislature for 323.6 a purpose consistent with this section. 323.7 (b) All projects funded by January 1, 1997, must complete 323.8theirthe planning phase and be operational by June 30, 1997; 323.9 all projects funded by January 1, 1998, must be operational by 323.10 June 30, 1998. 323.11 Sec. 29. [BRAINERD REGIONAL HUMAN SERVICES CENTER 323.12 GOVERNANCE DEMONSTRATION PROJECT.] 323.13 (a) The commissioner of human services is authorized to 323.14 establish a planning group comprised of representatives of the 323.15 Brainerd Regional Human Services Center and the 12 counties 323.16 within the catchment area of the Brainerd Regional Human 323.17 Services Center, to evaluate the feasibility of, and propose a 323.18 model for regional governance of the regional treatment center. 323.19 Establishment of a governance model that will enable further 323.20 integration of funding and service systems to ensure that 323.21 persons with mental illness or developmental disabilities in the 323.22 region are served according to law in a cost-efficient and 323.23 cost-effective manner will be the focal point of this planning 323.24 effort. 323.25 (b) The counties of Aitkin, Beltrami, Benton, Cass, 323.26 Clearwater, Crow Wing, Hubbard, Lake of the Woods, Morrison, 323.27 Stearns, Todd, and Wadena and the Brainerd Regional Human 323.28 Services Center will be represented on the planning group. The 323.29 chief executive officer of the Brainerd Regional Human Services 323.30 Center will convene the initial meeting of the planning group no 323.31 later than July 1, 1997. The planning group will select from 323.32 among its members a chairperson, identify other stakeholder 323.33 involvement in the planning process, and establish a project 323.34 work plan and meeting schedule. If the planning group 323.35 determines that it is feasible to proceed with regional 323.36 governance of the Brainerd Regional Human Services Center, it 324.1 shall formulate and make recommendations on the governance 324.2 structure and its operating principles to the commissioner of 324.3 human services no later than May 15, 1998, for review and 324.4 approval by the commissioner prior to implementation of the 324.5 governance structure on July 1, 1998. 324.6 (c) The design of the governance model must lead to a 324.7 mental health and developmental disabilities service system that 324.8 is regionally based and community-focused and includes the 324.9 long-term psychiatric hospital services of the regional 324.10 treatment center as a component part of this locally defined 324.11 system. The governing body will have decision-making authority 324.12 over the budget of the Brainerd Regional Human Services Center 324.13 and any related funds which county members agree to bring under 324.14 the auspices of the governance structure for purposes of this 324.15 demonstration project. The Brainerd Regional Human Services 324.16 Center portion of the regional treatment center biennial 324.17 appropriation for mental health and developmental disabilities 324.18 programs would be placed under the management of the regional 324.19 governance body in accordance with the demonstration project's 324.20 agreed upon implementation schedule. Project planning should 324.21 reflect the commitment to partnership between the state and 324.22 counties in considering those aspects of the service delivery in 324.23 the region that might be brought to a broader governance 324.24 structure in order to maximize benefits to clients for dollars 324.25 expended in the system. Design of the project to enhance 324.26 regional flexibility and support the community-based system 324.27 infrastructure will improve the regional capacity to meet the 324.28 needs of persons with mental illness and developmental 324.29 disabilities and assure the availability of safety net services 324.30 within the regional service system. 324.31 (d) Implementation of the regional governance project will 324.32 not proceed without the affirmative recommendation of the 324.33 project planning group. The planning group may discontinue the 324.34 project at any point that it collectively determines development 324.35 of a regional governance model to be unworkable by providing the 324.36 commissioner of human services 30 days' written notice and an 325.1 explanation of the reasons that prevented the project from going 325.2 forward. 325.3 Sec. 30. [MCHA TERMINATION NOTICE.] 325.4 The Minnesota comprehensive health association, in 325.5 consultation with the commissioner of human services, shall 325.6 provide written notice to all persons whose coverage under the 325.7 comprehensive health insurance plan terminates due to the change 325.8 in policy described in sections 18 and 27 and shall assist these 325.9 individuals in securing health coverage in the private market. 325.10 The notice must include the following information: 325.11 (1) the reason for termination; 325.12 (2) a description of the eligibility requirements for the 325.13 comprehensive health insurance plan; 325.14 (3) a description of medical assistance and general 325.15 assistance medical care eligibility categories; 325.16 (4) a description of the participation requirements to the 325.17 prepaid medical assistance program, prepaid general assistance 325.18 medical care, and exemptions from participation due to 325.19 disability as determined by the social security administration; 325.20 and 325.21 (5) a telephone number for the department of human services 325.22 for specific questions regarding the medical assistance and 325.23 general assistance medical care program. 325.24 Notice must be given at least six months before coverage is 325.25 terminated. 325.26 The commissioner of human services shall release to the 325.27 association any data necessary to provide the notice required in 325.28 this section. 325.29 Sec. 31. [NAMES REQUIRED ON GRAVES.] 325.30 Unless the individual's family indicates otherwise to the 325.31 appropriate authority, the commissioner of human services with 325.32 assistance of the communities in which regional treatment 325.33 centers are located and in consultation with the state council 325.34 on disability shall replace numbers with the names of 325.35 individuals whose graves are located at regional treatment 325.36 centers operated by the commissioner or formerly operated by the 326.1 commissioner. The commissioner and the state council on 326.2 disability shall develop a plan to accomplish this 326.3 systematically over a five-year period. The individual names 326.4 may be placed on a central marker or memorial for a designated 326.5 cemetery. 326.6 Sec. 32. [WAIVER AMENDMENT.] 326.7 By July 15, 1997, the commissioner of human services shall 326.8 submit proposed amendments to the Health Care Financing 326.9 Administration for changes in the home and community-based 326.10 waiver for persons with mental retardation or a related 326.11 condition that maximize the number of persons served within the 326.12 limits of appropriations and divert persons from institutional 326.13 placement. The commissioner shall monitor county utilization of 326.14 allocated resources and, as appropriate, reassign resources not 326.15 utilized. Priority consideration for the reassignment of 326.16 resources shall be given to counties who enter into written 326.17 agreements with other counties to jointly plan, request 326.18 resources, and develop services for persons with mental 326.19 retardation or a related condition who are screened and waiting 326.20 for waivered services. In addition to the priorities listed in 326.21 Minnesota Rules, part 9525.1880, the commissioner shall also 326.22 give priority consideration to persons whose living situations 326.23 are unstable due to the age or incapacity of the primary 326.24 caregiver. The commissioner shall report to the chairs of the 326.25 senate health and family security budget division and the house 326.26 health and human services finance division by March 1, 1998, on 326.27 the results of the waiver amendment, the authorization and 326.28 utilization of waivered services for persons with mental 326.29 retardation or a related condition, including crisis respite 326.30 services, plans to increase the number of counties working 326.31 together, additional persons served by the reassignment of 326.32 resources, and options which would allow an increased number of 326.33 persons served within the existing appropriation. 326.34 Sec. 33. [REPEALER.] 326.35 Minnesota Statutes 1996, sections 252.32, subdivision 4; 326.36 and 256B.501, subdivision 5c, are repealed. 327.1 ARTICLE 8 327.2 DEMONSTRATION PROJECT FOR PERSONS WITH DISABILITIES 327.3 Section 1. [256B.77] [COORDINATED SERVICE DELIVERY SYSTEM 327.4 FOR PEOPLE WITH DISABILITIES.] 327.5 Subdivision 1. [DEMONSTRATION PROJECT FOR PEOPLE WITH 327.6 DISABILITIES.] (a) The commissioner of human services, in 327.7 cooperation with county authorities, shall develop and implement 327.8 a demonstration project to create a coordinated service delivery 327.9 system in which the full medical assistance benefit set for 327.10 disabled persons eligible for medical assistance is provided and 327.11 funded on a capitated basis. The demonstration period shall be 327.12 a minimum of three years. 327.13 (b) Each demonstration site shall, under county authority, 327.14 establish a local group to assist the commissioner in planning, 327.15 designing, implementing, and evaluating the coordinated service 327.16 delivery system in their area. This local group shall include 327.17 county agencies, providers, consumers, family members, 327.18 advocates, tribal governments, a local representative of labor, 327.19 and advocacy organizations, and may include health plan 327.20 companies. Consumers, families, and consumer representatives 327.21 must be involved in the planning, implementation, and evaluation 327.22 processes for the demonstration project. 327.23 Subd. 2. [DEFINITIONS.] For the purposes of this section, 327.24 the following terms have the meanings given: 327.25 (a) "Acute care" means hospital, physician, and other 327.26 health and dental services covered in the medical assistance 327.27 benefit set that are not specified in the intergovernmental 327.28 contract or service delivery contract as continuing care 327.29 services. 327.30 (b) "Additional services" means services developed and 327.31 provided through the county administrative entity or service 327.32 delivery organization, which are in addition to the medical 327.33 assistance benefit set. 327.34 (c) "Advocate" means an individual who: 327.35 (1) has been authorized by the enrollee or the enrollee's 327.36 legal representative to help the enrollee understand information 328.1 presented and to speak on the enrollee's behalf, based on 328.2 directions and decisions by the enrollee or the enrollee's legal 328.3 representative; and 328.4 (2) represents only the enrollee and the enrollee's legal 328.5 representative. 328.6 (d) "Advocacy organization" means an organization whose 328.7 primary purpose is to advocate for the needs of persons with 328.8 disabilities. 328.9 (e) "Alternative services" means services developed and 328.10 provided through the county administrative entity or service 328.11 delivery organization that are not part of the medical 328.12 assistance benefit set. 328.13 (f) "Commissioner" means the commissioner of human services. 328.14 (g) "Continuing care" means any services, including 328.15 long-term support services, covered in the medical assistance 328.16 benefit set that are not specified in the intergovernmental 328.17 contract or service delivery contract as acute care. 328.18 (h) "County administrative entity" means the county 328.19 administrative structure defined and designated by the county 328.20 authority to implement the demonstration project under the 328.21 direction of the county authority. 328.22 (i) "County authority" means the board of county 328.23 commissioners or a single entity representing multiple boards of 328.24 county commissioners. 328.25 (j) "Demonstration period" means the period of time during 328.26 which county administrative entities or service delivery 328.27 organizations will provide services to enrollees. 328.28 (k) "Demonstration site" means the geographic area in which 328.29 eligible individuals may be included in the demonstration 328.30 project. 328.31 (l) "Department" means the department of human services. 328.32 (m) "Emergency" means a condition that if not immediately 328.33 treated could cause a person serious physical or mental 328.34 disability, continuation of severe pain, or death. Labor and 328.35 delivery is an emergency if it meets this definition. 328.36 (n) "Enrollee" means an eligible individual who is enrolled 329.1 in the demonstration project. 329.2 (o) "Informed choice" means a voluntary decision made by 329.3 the enrollee or the enrollee's legal representative, after 329.4 becoming familiar with the alternatives, and having been 329.5 provided sufficient relevant written and oral information at an 329.6 appropriate comprehension level and in a manner consistent with 329.7 the enrollee's or the enrollee's legal representative's primary 329.8 mode of communication. 329.9 (p) "Informed consent" means the written agreement, or an 329.10 agreement as documented in the record, by a competent enrollee, 329.11 or an enrollee's legal representative, who: 329.12 (1) has the capacity to make reasoned decisions based on 329.13 relevant information; 329.14 (2) is making decisions voluntarily and without coercion; 329.15 and 329.16 (3) has knowledge to make informed choice. 329.17 (q) "Intergovernmental contract" means the agreement 329.18 between the commissioner and the county authority. 329.19 (r) "Legal representative" means an individual who is 329.20 legally authorized to provide informed consent or make informed 329.21 choices on a person's behalf. A legal representative may be one 329.22 of the following individuals: 329.23 (1) the parent of a minor who has not been emancipated; 329.24 (2) a court-appointed guardian or conservator of a person 329.25 who is 18 years of age or older, in areas where legally 329.26 authorized to make decisions; 329.27 (3) a guardian ad litem or special guardian or conservator, 329.28 in areas where legally authorized to make decisions; 329.29 (4) legal counsel if so specified by the person; or 329.30 (5) any other legally authorized individual. 329.31 The county authority is prohibited from acting as legal 329.32 representative for any enrollee, as long as the provisions of 329.33 subdivision 15 are funded. 329.34 (s) "Life domain areas" include, but are not limited to: 329.35 home, family, education, employment, social environment, 329.36 psychological and emotional health, self-care, independence, 330.1 physical health, need for legal representation and legal needs, 330.2 financial needs, safety, and cultural identification and 330.3 spiritual needs. 330.4 (t) "Medical assistance benefit set" means the services 330.5 covered under this chapter and accompanying rules which are 330.6 provided according to the definition of medical necessity in 330.7 Minnesota Rules, part 9505.0175, subpart 25. 330.8 (u) "Outcome" means the targeted behavior, action, or 330.9 status of the enrollee that can be observed and or measured. 330.10 (v) "Personal support plan" means a document agreed to and 330.11 signed by the enrollee and the enrollee's legal representative, 330.12 if any, which describes: 330.13 (1) the assessed needs and strengths of the enrollee; 330.14 (2) the outcomes chosen by the enrollee or their legal 330.15 representative; 330.16 (3) the amount, type, setting, start date, duration, and 330.17 frequency of services and supports authorized by the county 330.18 administrative entity or service delivery organization to 330.19 achieve the chosen outcomes; 330.20 (4) a description of needed services and supports that are 330.21 not the responsibility of the county administrative entity or 330.22 service delivery organization and plans for addressing those 330.23 needs; 330.24 (5) plans for referring to and coordinating between all 330.25 agencies or individuals providing needed services and supports; 330.26 (6) the use of regulated treatment; and 330.27 (7) the transition of a child to the adult service system. 330.28 (w) "Regulated treatment" means any behaviorally altering 330.29 medication of any classification or any aversive or deprivation 330.30 procedure as defined in rules or statutes applicable to eligible 330.31 individuals. 330.32 (x) "Service delivery contract" means the agreement between 330.33 the commissioner or the county authority and the service 330.34 delivery organization in those areas in which the county 330.35 authority has provided written approval. 330.36 (y) "Service delivery organization" means an entity that is 331.1 licensed as a health maintenance organization under chapter 62D 331.2 or a community integrated service network under chapter 62N and 331.3 is under contract with the commissioner or a county authority to 331.4 participate in the demonstration project. If authorized in 331.5 contract by the commissioner or the county authority, a service 331.6 delivery organization participating in the demonstration project 331.7 shall have the duties, responsibilities, and obligations defined 331.8 under subdivisions 8, 9, 18, and 19. 331.9 (z) "Urgent situation" means circumstances in which care is 331.10 needed as soon as possible, usually with 24 hours, to protect 331.11 the health of an enrollee. 331.12 Subd. 3. [ASSURANCES TO THE COMMISSIONER OF HEALTH.] A 331.13 county authority that elects to participate in a demonstration 331.14 project for people with disabilities under this section is not 331.15 required to obtain a certificate of authority under chapter 62D 331.16 or 62N. A county authority that elects to participate in a 331.17 demonstration project for people with disabilities under this 331.18 section must assure the commissioner of health that the 331.19 requirements of chapters 62D and 62N are met. All enforcement 331.20 and rulemaking powers available under chapters 62D and 62N are 331.21 granted to the commissioner of health with respect to the county 331.22 authorities that contract with the commissioner to purchase 331.23 services in a demonstration project for people with disabilities 331.24 under this section. 331.25 Subd. 4. [FEDERAL WAIVERS.] The commissioner, in 331.26 consultation with county authorities, shall request any 331.27 authority from the United States Department of Health and Human 331.28 Services that is necessary to implement the demonstration 331.29 project under the medical assistance program; and authority to 331.30 combine Medicaid and Medicare funding for service delivery to 331.31 eligible individuals who are also eligible for Medicare, only if 331.32 this authority does not preclude county authority participation 331.33 under the waiver. Implementation of these programs may begin 331.34 without authority to include medicare funding. The commissioner 331.35 may authorize county authorities to begin enrollment of eligible 331.36 individuals upon federal approval but no earlier than July 1, 332.1 1998. 332.2 Subd. 5. [DEMONSTRATION SITES.] The commissioner shall 332.3 designate up to five demonstration sites with the approval of 332.4 the county authority. Demonstration sites may include one 332.5 county or a multicounty group. At least one of five sites shall 332.6 implement a model specifically addressing the needs of eligible 332.7 individuals with physical disabilities. By February 1, 1998, 332.8 the commissioner and the county authorities shall submit to the 332.9 chairs of the senate committee on health and family security and 332.10 the house committee on health and human services a phased 332.11 enrollment plan to ensure an orderly transition which protects 332.12 the health and safety of enrollees and ensures continuity of 332.13 services. 332.14 Subd. 6. [RESPONSIBILITIES OF THE COUNTY AUTHORITY.] (a) 332.15 The commissioner may execute an intergovernmental contract with 332.16 any county authority that demonstrates the ability to arrange 332.17 for and coordinate services for enrollees covered under this 332.18 section according to the terms and conditions specified by the 332.19 commissioner. With the written consent of the county authority, 332.20 the commissioner may issue a request for proposals for service 332.21 delivery organizations to provide portions of the medical 332.22 assistance benefit set not contracted for by the county 332.23 authority. County authorities that do not contract for the full 332.24 medical assistance benefit set must ensure coordination with the 332.25 entities responsible for the remainder of the covered services. 332.26 (b) No less than 90 days before the intergovernmental 332.27 contract is executed, the county authority shall submit to the 332.28 commissioner an initial proposal on how it will address the 332.29 areas listed in this subdivision and subdivisions 1, 7, 8, 9, 332.30 12, 18, and 19. The county authority shall submit to the 332.31 commissioner annual reports describing its progress in 332.32 addressing these areas. 332.33 (c) Each county authority shall develop policies to address 332.34 conflicts of interest, including public guardianship and 332.35 representative payee issues. 332.36 (d) Each county authority shall annually evaluate the 333.1 effectiveness of the service coordination provided according to 333.2 subdivision 12 and shall take remedial or corrective action if 333.3 the service coordination does not fulfill the requirements of 333.4 that subdivision. 333.5 Subd. 7. [ELIGIBILITY AND ENROLLMENT.] The commissioner, 333.6 in consultation with the county authority, shall develop a 333.7 process for enrolling eligible individuals in the demonstration 333.8 project. Enrollment into county administrative entities and 333.9 service delivery organizations shall be conducted according to 333.10 the terms of the federal waiver. Enrollment of eligible 333.11 individuals under the demonstration project may be phased in 333.12 with approval of the commissioner. The commissioner shall 333.13 ensure that eligibility for medical assistance and enrollment 333.14 for the person are determined by individuals outside of the 333.15 county administrative entity. 333.16 Subd. 7a. [ELIGIBLE INDIVIDUALS.] (a) Persons are eligible 333.17 for the demonstration project as provided in this subdivision. 333.18 (b) "Eligible individuals" means those persons living in 333.19 the demonstration site who are eligible for medical assistance 333.20 and are disabled based on a disability determination under 333.21 section 256B.055, subdivisions 7 and 12, or who are eligible for 333.22 medical assistance and have been diagnosed as having: 333.23 (1) serious and persistent mental illness as defined in 333.24 section 245.462, subdivision 20; 333.25 (2) severe emotional disturbance as defined in section 333.26 245.487, subdivision 6; or 333.27 (3) mental retardation or a related condition as defined in 333.28 section 252.27, subdivision 1a. 333.29 Other individuals may be included at the option of the county 333.30 authority based on agreement with the commissioner. 333.31 (c) Eligible individuals residing on a federally recognized 333.32 Indian reservation may be excluded from participation in the 333.33 demonstration project at the discretion of the tribal government 333.34 based on agreement with the commissioner, in consultation with 333.35 the county authority. 333.36 (d) Eligible individuals include individuals in excluded 334.1 time status, as defined in chapter 256G. Enrollees in excluded 334.2 time at the time of enrollment shall remain in excluded time 334.3 status as long as they live in the demonstration site and shall 334.4 be eligible for 90 days after placement outside the 334.5 demonstration site if they move to excluded time status in a 334.6 county within Minnesota other than their county of financial 334.7 responsibility. 334.8 (e) A person who is a sexual psychopathic personality as 334.9 defined in section 253B.02, subdivision 18a, or a sexually 334.10 dangerous person as defined in section 253B.02, subdivision 18b, 334.11 is excluded from enrollment in the demonstration project. 334.12 Subd. 8. [RESPONSIBILITIES OF THE COUNTY ADMINISTRATIVE 334.13 ENTITY.] (a) The county administrative entity shall meet the 334.14 requirements of this subdivision, unless the county authority or 334.15 the commissioner, with written approval of the county authority, 334.16 enters into a service delivery contract with a service delivery 334.17 organization for any or all of the requirements contained in 334.18 this subdivision. 334.19 (b) The county administrative entity shall enroll eligible 334.20 individuals regardless of health or disability status. 334.21 (c) The county administrative entity shall provide all 334.22 enrollees timely access to the medical assistance benefit set. 334.23 Alternative services and additional services are available to 334.24 enrollees at the option of the county administrative entity and 334.25 may be provided if specified in the personal support plan. 334.26 County authorities are not required to seek prior authorization 334.27 from the department as required by the laws and rules governing 334.28 medical assistance. 334.29 (d) The county administrative entity shall cover necessary 334.30 services as a result of an emergency without prior 334.31 authorization, even if the services were rendered outside of the 334.32 provider network. 334.33 (e) The county administrative entity shall authorize 334.34 necessary and appropriate services when needed and requested by 334.35 the enrollee or the enrollee's legal representative in response 334.36 to an urgent situation. Enrollees shall have 24-hour access to 335.1 urgent care services coordinated by experienced disability 335.2 providers who have information about enrollees' needs and 335.3 conditions. 335.4 (f) The county administrative entity shall accept the 335.5 capitation payment from the commissioner in return for the 335.6 provision of services for enrollees. 335.7 (g) The county administrative entity shall maintain 335.8 internal grievance and complaint procedures, including an 335.9 expedited informal complaint process in which the county 335.10 administrative entity must respond to verbal complaints within 335.11 ten calendar days, and a formal grievance process, in which the 335.12 county administrative entity must respond to written complaints 335.13 within 30 calendar days. 335.14 (h) The county administrative entity shall provide a 335.15 certificate of coverage, upon enrollment, to each enrollee and 335.16 the enrollee's legal representative, if any, which describes the 335.17 benefits covered by the county administrative entity, any 335.18 limitations on those benefits, and information about providers 335.19 and the service delivery network. This information must also be 335.20 made available to prospective enrollees. This certificate must 335.21 be approved by the commissioner. 335.22 (i) The county administrative entity shall present evidence 335.23 of an expedited process to approve exceptions to benefits, 335.24 provider network restrictions, and other plan limitations under 335.25 appropriate circumstances. 335.26 (j) The county administrative entity shall provide 335.27 enrollees or their legal representatives with written notice of 335.28 their appeal rights under subdivision 16, and of ombudsman and 335.29 advocacy programs under subdivisions 13 and 14, at the following 335.30 times: upon enrollment, upon submission of a written complaint, 335.31 when a service is reduced, denied, or terminated, or when 335.32 renewal of authorization for ongoing service is refused. 335.33 (k) The county administrative entity shall determine 335.34 immediate needs, including services, support, and assessments, 335.35 within 30 calendar days of enrollment, or within a shorter time 335.36 frame if specified in the intergovernmental contract. 336.1 (l) The county administrative entity shall assess the need 336.2 for services of new enrollees within 60 calendar days of 336.3 enrollment, or within a shorter time frame if specified in the 336.4 intergovernmental contract, and periodically reassess the need 336.5 for services for all enrollees. 336.6 (m) The county administrative entity shall ensure the 336.7 development of a personal support plan for each person within 60 336.8 calendar days of enrollment, or within a shorter time frame if 336.9 specified in the intergovernmental contract, unless otherwise 336.10 agreed to by the enrollee and the enrollee's legal 336.11 representative, if any. Until a personal support plan is 336.12 developed and agreed to by the enrollee, enrollees must have 336.13 access to the same amount, type, setting, duration, and 336.14 frequency of covered services that they had at the time of 336.15 enrollment unless other covered services are needed. For an 336.16 enrollee who is not receiving covered services at the time of 336.17 enrollment and for enrollees whose personal support plan is 336.18 being revised, access to the medical assistance benefit set must 336.19 be assured until a personal support plan is developed or 336.20 revised. The personal support plan must be based on choices, 336.21 preferences, and assessed needs and strengths of the enrollee. 336.22 The service coordinator shall develop the personal support plan, 336.23 in consultation with the enrollee or the enrollee's legal 336.24 representative and other individuals requested by the enrollee. 336.25 The personal support plan must be updated as needed or as 336.26 requested by the enrollee. Enrollees may choose not to have a 336.27 personal support plan. 336.28 (n) The county administrative entity shall ensure timely 336.29 authorization, arrangement, and continuity of needed and covered 336.30 supports and services. 336.31 (o) The county administrative entity shall offer service 336.32 coordination that fulfills the responsibilities under 336.33 subdivision 12 and is appropriate to the enrollee's needs, 336.34 choices, and preferences, including a choice of service 336.35 coordinator. 336.36 (p) The county administrative entity shall contract with 337.1 schools and other agencies as appropriate to provide otherwise 337.2 covered medically necessary medical assistance services as 337.3 described in an enrollee's individual family support plan, as 337.4 described in section 120.1701, or individual education plan, as 337.5 described in chapter 120. 337.6 (q) The county administrative entity shall develop and 337.7 implement strategies, based on consultation with affected 337.8 groups, to respect diversity and ensure culturally competent 337.9 service delivery in a manner that promotes the physical, social, 337.10 psychological, and spiritual well-being of enrollees and 337.11 preserves the dignity of individuals, families, and their 337.12 communities. 337.13 (r) When an enrollee changes county authorities, county 337.14 administrative entities shall ensure coordination with the 337.15 entity that is assuming responsibility for administering the 337.16 medical assistance benefit set to ensure continuity of supports 337.17 and services for the enrollee. 337.18 (s) The county administrative entity shall comply with 337.19 additional requirements as specified in the intergovernmental 337.20 contract. 337.21 (t) To the extent that alternatives are approved under 337.22 subdivision 17, county administrative entities must provide for 337.23 the health and safety of enrollees and protect the rights to 337.24 privacy and to provide informed consent. 337.25 Subd. 9. [CONSUMER CHOICE AND SAFEGUARDS.] (a) The 337.26 commissioner may require all eligible individuals to obtain 337.27 services covered under this chapter through county authorities. 337.28 Enrollees shall be given choices among a range of available 337.29 providers with expertise in serving persons of their age and 337.30 with their category of disability. If the county authority is 337.31 also a provider of services covered under the demonstration 337.32 project, other than service coordination, the enrollee shall be 337.33 given the choice of at least one other provider of that 337.34 service. The commissioner shall ensure that all enrollees have 337.35 continued access to medically necessary covered services. 337.36 (b) The commissioner must ensure that a set of enrollee 338.1 safeguards in the categories of access, choice, comprehensive 338.2 benefits, access to specialist care, disclosure of financial 338.3 incentives to providers, prohibition of exclusive provider 338.4 contracting and gag clauses, legal representation, guardianship, 338.5 representative payee, quality, rights and appeals, privacy, data 338.6 collection, and confidentiality are in place prior to enrollment 338.7 of eligible individuals. 338.8 (c) If multiple service delivery organizations are offered 338.9 for acute or continuing care within a demonstration site, 338.10 enrollees shall be given a choice of these organizations. A 338.11 choice is required if the county authority operates its own 338.12 health maintenance organization, community integrated service 338.13 network, or similar plan. Enrollees shall be given 338.14 opportunities to change enrollment in these organizations within 338.15 12 months following initial enrollment into the demonstration 338.16 project and shall also be offered an annual open enrollment 338.17 period, during which they are permitted to change their service 338.18 delivery organization. 338.19 (d) Enrollees shall have the option to change their primary 338.20 care provider once per month. 338.21 (e) The commissioner may waive the choice of provider 338.22 requirements in paragraph (a) or the choice of service delivery 338.23 organization requirements in paragraph (c) if the county 338.24 authority can demonstrate that, despite reasonable efforts, no 338.25 other provider of the service or service delivery organization 338.26 can be made available within the cost and quality requirements 338.27 of the demonstration project. 338.28 Subd. 10. [CAPITATION PAYMENT.] The commissioner shall pay 338.29 a capitation payment to the county authority and, when 338.30 applicable under subdivision 6, paragraph (a), to the service 338.31 delivery organization for each medical assistance eligible 338.32 enrollee. The commissioner shall develop capitation payment 338.33 rates for the initial contract period for each demonstration 338.34 site in consultation with an independent actuary, to ensure that 338.35 the cost of services under the demonstration project does not 338.36 exceed the estimated cost for medical assistance services for 339.1 the covered population under the fee-for-service system for the 339.2 demonstration period. For each year of the demonstration 339.3 project, the capitation payment rate shall be based on 96 339.4 percent of the projected per person costs that would otherwise 339.5 have been paid under medical assistance fee-for-service during 339.6 each of those years. Rates shall be adjusted within the limits 339.7 of the available risk adjustment technology, as mandated by 339.8 section 62Q.03. In addition, the commissioner shall implement 339.9 appropriate risk and savings sharing provisions with county 339.10 administrative entities and, when applicable under subdivision 339.11 6, paragraph (a), service delivery organizations within the 339.12 projected budget limits. Any savings beyond those allowed for 339.13 the county authority, county administrative entity, or service 339.14 delivery organization shall be first used to meet the unmet 339.15 needs of eligible individuals. Payments to providers 339.16 participating in the project are exempt from the requirements of 339.17 sections 256.966 and 256B.03, subdivision 2. 339.18 Subd. 11. [INTEGRATION OF FUNDING SOURCES.] The county 339.19 authority may integrate other local, state, and federal funding 339.20 sources with medical assistance funding. The commissioner's 339.21 approval is required for integration of state and federal funds 339.22 but not for local funds. During the demonstration project 339.23 period, county authorities must maintain the level of local 339.24 funds expended during the previous calendar year for populations 339.25 covered in the demonstration project. Excluding the state share 339.26 of Medicaid payments, state appropriations for state-operated 339.27 services shall not be integrated unless specifically approved by 339.28 the legislature. The commissioner may approve integration of 339.29 other state and federal funding if the intergovernmental 339.30 contract includes assurances that the people who would have been 339.31 served by these funds will receive comparable or better 339.32 services. The commissioner may withdraw approval for 339.33 integration of state and federal funds if the county authority 339.34 does not comply with these assurances. If the county authority 339.35 chooses to integrate funding, it must comply with the reporting 339.36 requirements of the commissioner, as specified in the 340.1 intergovernmental contract, to account for federal and state 340.2 Medicaid expenditures and expenditures of local funds. The 340.3 commissioner, upon the request and concurrence of a county 340.4 authority, may transfer state grant funds that would otherwise 340.5 be made available to the county authority to provide continuing 340.6 care for enrollees to the medical assistance account and, within 340.7 the limits of federal authority and available federal funding, 340.8 the commissioner shall adjust the capitation based on the amount 340.9 of this transfer. 340.10 Subd. 12. [SERVICE COORDINATION.] (a) For purposes of this 340.11 section, "service coordinator" means an individual selected by 340.12 the enrollee or the enrollee's legal representative and 340.13 authorized by the county administrative entity or service 340.14 delivery organization to work in partnership with the enrollee 340.15 to develop, coordinate, and in some instances, provide supports 340.16 and services identified in the personal support plan. Service 340.17 coordinators may only provide services and supports if the 340.18 enrollee is informed of potential conflicts of interest, is 340.19 given alternatives, and gives informed consent. Eligible 340.20 service coordinators are individuals age 18 or older who meet 340.21 the qualifications as described in paragraph (b). Enrollees, 340.22 their legal representatives, or their advocates are eligible to 340.23 be service coordinators if they have the capabilities to perform 340.24 the activities and functions outlined in paragraph (b). 340.25 Providers licensed under chapter 245A to provide residential 340.26 services, or providers who are providing residential services 340.27 covered under the group residential housing program may not act 340.28 as service coordinator for enrollees for whom they provide 340.29 residential services. This does not apply to providers of 340.30 short-term detoxification services. Each county administrative 340.31 entity or service delivery organization may develop further 340.32 criteria for eligible vendors of service coordination during the 340.33 demonstration period and shall determine whom it contracts with 340.34 or employs to provide service coordination. County 340.35 administrative entities and service delivery organizations may 340.36 pay enrollees or their representatives for service coordination 341.1 activities. 341.2 (b) The service coordinator shall act as a facilitator, 341.3 working in partnership with the enrollee to ensure that their 341.4 needs are identified and addressed. The level of involvement of 341.5 the service coordinator shall depend on the needs and desires of 341.6 the enrollee. The service coordinator shall have the knowledge, 341.7 skills, and abilities to, and is responsible for: 341.8 (1) arranging for an initial assessment, and periodic 341.9 reassessment as necessary, of supports and services based on the 341.10 enrollee's strengths, needs, choices, and preferences in life 341.11 domain areas; 341.12 (2) developing and updating the personal support plan based 341.13 on relevant ongoing assessment; 341.14 (3) arranging for and coordinating the provisions of 341.15 supports and services, including knowlegeable and skills 341.16 specialty services and prevention and early intervention 341.17 services, within the limitations negotiated with the county 341.18 administrative entity or service delivery organization; 341.19 (4) assisting the enrollee and the enrollee's legal 341.20 representative, if any, to maximize informed choice of and 341.21 control over services and supports and to exercise the 341.22 enrollee's rights and advocate on behalf of the enrollee; 341.23 (5) monitoring the progress toward achieving the enrollee's 341.24 outcomes in order to evaluate and adjust the timeliness and 341.25 adequacy of the implementation of the personal support plan; 341.26 (6) facilitating meetings and effectively collaborating 341.27 with a variety of agencies and persons, including attending 341.28 individual family service plan and individual education plan 341.29 meetings when requested by the enrollee or the enrollee's legal 341.30 representative; 341.31 (7) soliciting and analyzing relevant information; 341.32 (8) communicating effectively with the enrollee and with 341.33 other individuals participating in the enrollee's plan; 341.34 (8) educating and communicating effectively with the 341.35 enrollee about good health care practices and risk to the 341.36 enrollee's health with certain behaviors; 342.1 (10) having knowledge of basic enrollee protection 342.2 requirements, including data privacy; 342.3 (11) informing, educating, and assisting the enrollee in 342.4 identifying available service providers and accessing needed 342.5 resources and services beyond the limitations of the medical 342.6 assistance benefit set covered services; and 342.7 (12) providing other services as identified in the person 342.8 support plan. 342.9 (c) For the demonstration project, the qualifications and 342.10 standards for service coordination in this section shall replace 342.11 comparable existing provisions of existing statutes and rules 342.12 governing case management for eligible individuals. 342.13 Subd. 13. [OMBUDSMAN.] Enrollees shall have access to 342.14 ombudsman services established in section 256B.031, subdivision 342.15 6, and advocacy services provided by the ombudsman for mental 342.16 health and mental retardation established in sections 245.91 to 342.17 245.97. The managed care ombudsman and the ombudsman for mental 342.18 health and mental retardation shall coordinate services provided 342.19 to avoid duplication of services. For purposes of the 342.20 demonstration project, the powers and responsibilities of the 342.21 office of the ombudsman for mental health and mental 342.22 retardation, as provided in sections 245.91 to 245.97 are 342.23 expanded to include all eligible individuals, health plan 342.24 companies, agencies, and providers participating in the 342.25 demonstration project. 342.26 Subd. 14. [EXTERNAL ADVOCACY.] In addition to ombudsman 342.27 services, enrollees shall have access to advocacy services on a 342.28 local or regional basis. The purpose of external advocacy 342.29 includes providing individual advocacy services for enrollees 342.30 who have complaints or grievances with the county administrative 342.31 entity, service delivery organization, or a service provider; 342.32 assisting enrollees to understand the service delivery system 342.33 and select providers and, if applicable, a service delivery 342.34 organization; and understand and exercise their rights as an 342.35 enrollee. External advocacy contractors must demonstrate that 342.36 they have the expertise to advocate on behalf of all categories 343.1 of eligible individuals and are independent of the commissioner, 343.2 county authority, county administrative entity, service delivery 343.3 organization, or any service provider within the demonstration 343.4 project. 343.5 These advocacy services shall be provided through the 343.6 ombudsman for mental health and mental retardation directly, or 343.7 under contract with private, nonprofit organizations, with 343.8 funding provided through the demonstration project. The funding 343.9 shall be provided annually to the ombudsman's office based on 343.10 0.1 percent of the projected per person costs that would 343.11 otherwise have been paid under medical assistance 343.12 fee-for-service during those years. Funding for external 343.13 advocacy shall be provided for each year of the demonstration 343.14 period. This funding is in addition to the capitation payment 343.15 available under subdivision 10. 343.16 Subd. 15. [PUBLIC GUARDIANSHIP ALTERNATIVES.] Each county 343.17 authority with enrollees under public guardianship shall develop 343.18 a plan to discharge all those public guardianships and establish 343.19 appropriate private alternatives during the demonstration period. 343.20 The commissioner shall provide county authorities with 343.21 funding for public guardianship alternatives during the first 343.22 year of the demonstration project based on a proposal to 343.23 establish private alternatives for a specific number of 343.24 enrollees under public guardianship. Funding in subsequent 343.25 years shall be based on the county authority's performance in 343.26 achieving discharges of public guardianship and establishing 343.27 appropriate alternatives. The commissioner may establish fiscal 343.28 incentives to encourage county activity in this area. For each 343.29 year of the demonstration period, an appropriation is available 343.30 to the commissioner based on 0.2 percent of the projected per 343.31 person costs that would otherwise have been paid under medical 343.32 assistance fee-for-service for that year. This funding is in 343.33 addition to the capitation payment available under subdivision 343.34 10. 343.35 Subd. 16. [APPEALS.] Enrollees have the appeal rights 343.36 specified in section 256.045. Enrollees may request the 344.1 conciliation process as outlined under section 256.045, 344.2 subdivision 4a. If an enrollee appeals in writing to the state 344.3 agency on or before the latter of the effective day of the 344.4 proposed action or the tenth day after they have received the 344.5 decision of the county administrative entity or service delivery 344.6 organization to reduce, suspend, terminate, or deny continued 344.7 authorization for ongoing services which the enrollee had been 344.8 receiving, the county administrative entity or service delivery 344.9 organization must continue to authorize services at a level 344.10 equal to the level it previously authorized until the state 344.11 agency renders its decision. 344.12 Subd. 17. [APPROVAL OF ALTERNATIVES.] The commissioner may 344.13 approve alternatives to administrative rules if the commissioner 344.14 determines that appropriate alternative measures are in place to 344.15 protect the health, safety, and rights of enrollees and to 344.16 assure that services are of sufficient quality to produce the 344.17 outcomes described in the personal support plans. Prior 344.18 approval waivers, if needed by the demonstration project, shall 344.19 be extended. The commissioner shall not waive the rights or 344.20 procedural protections under sections 245.825; 245.91 to 245.97; 344.21 252.41, subdivision 9; 256B.092, subdivision 10; 626.556; and 344.22 626.557; or procedures for the monitoring of psychotropic 344.23 medications. Prohibited practices as defined in statutes and 344.24 rules governing service delivery to eligible individuals are 344.25 applicable to services delivered under this demonstration 344.26 project. 344.27 Subd. 18. [REPORTING.] Each county authority and service 344.28 delivery organization, and their contracted providers, shall 344.29 submit information as required by the commissioner in the 344.30 intergovernmental contract or service delivery contract, 344.31 including information about complaints, appeals, outcomes, 344.32 costs, including spending on services, service utilization, 344.33 identified unmet needs, services provided, rates of out-of-home 344.34 placement of children, institutionalization, commitments, number 344.35 of public guardianships discharged and alternatives to public 344.36 guardianship established, the use of emergency services, and 345.1 enrollee satisfaction. This information must be made available 345.2 to enrollees and the public. A county authority under an 345.3 intergovernmental contract and a service delivery organization 345.4 under a service delivery contract to provide services must 345.5 provide the most current listing of the providers who are 345.6 participating in the plan. This listing must be provided to 345.7 enrollees and be made available to the public. The 345.8 commissioner, county authorities, and service delivery 345.9 organizations shall also made all contracts and subcontracts 345.10 related to the demonstration project available to the public. 345.11 Subd. 19. [QUALITY MANAGEMENT AND EVALUATION.] County 345.12 authorities and service delivery organizations participating in 345.13 this demonstration project shall provide information to the 345.14 department as specified in the intergovernmental contract or 345.15 service delivery contract for the purpose of project evaluation. 345.16 This information may include both process and outcome evaluation 345.17 measures across areas that shall include enrollee satisfaction, 345.18 service delivery, service coordination, individual outcomes, and 345.19 costs. An independent evaluation of each demonstration site 345.20 shall be conducted prior to expansion of the demonstration 345.21 project to other sites. 345.22 Subd. 20. [LIMITATION ON REIMBURSEMENT.] The county 345.23 administrative entity or service delivery organization may limit 345.24 any reimbursement to providers not employed by or under contract 345.25 with the county administrative entity or service delivery 345.26 organization to the medical assistance rates paid by the 345.27 commissioner of human services to providers for services to 345.28 recipients not participating in the demonstration project. 345.29 Subd. 21. [COUNTY SOCIAL SERVICES OBLIGATIONS.] For 345.30 services that are outside of the medical assistance benefit set 345.31 for enrollees in excluded time status, the county of financial 345.32 responsibility must negotiate the provisions and payment of 345.33 services with the county of service prior to the provision of 345.34 services. 345.35 Subd. 22. [MINNESOTA COMMITMENT ACT SERVICES.] The county 345.36 administrative entity or service delivery organization is 346.1 financially responsible for all services for enrollees covered 346.2 by the medical assistance benefit set and ordered by the court 346.3 under the Minnesota Commitment Act, chapter 253B. The county 346.4 authority shall seek input from the county administrative entity 346.5 or service delivery organization in giving the court information 346.6 about services the enrollee needs and least restrictive 346.7 alternatives. The court order for services is deemed to comply 346.8 with the definition of medical necessity in Minnesota Rules, 346.9 part 9505.0175. The financial responsibility of the county 346.10 administrative entity or service delivery organization for 346.11 regional treatment center services to an enrollee while 346.12 committed to the regional treatment center is limited to 45 days 346.13 following commitment. Voluntary hospitalization for enrollees 346.14 at regional treatment centers must be covered by the county 346.15 administrative entity or service delivery organization if deemed 346.16 medically necessary by the county administrative entity or 346.17 service delivery organization. The regional treatment center 346.18 shall not accept a voluntary admission of an enrollee without 346.19 the authorization of the county administrative entity or service 346.20 delivery organization. An enrollee will maintain enrollee 346.21 status while receiving treatment under the Minnesota Commitment 346.22 Act or voluntary services in a regional treatment center. For 346.23 enrollees committed to the regional treatment center longer than 346.24 45 days, the commissioner may adjust the aggregate capitation 346.25 payments, as specified in the intergovernmental contract or 346.26 service delivery contract. 346.27 Subd. 23. [STAKEHOLDER COMMITTEE.] The commissioner shall 346.28 appoint a stakeholder committee to review and provide 346.29 recommendations on specifications for demonstration projects; 346.30 intergovernmental contracts; service delivery contracts; 346.31 alternatives to administrative rules proposed under subdivision 346.32 17; specific recommendations for legislation required for the 346.33 implementation of this project, including changes to statutes; 346.34 waivers of choice granted under subdivision 9, paragraph (e); 346.35 and other demonstration project policies and procedures as 346.36 requested by the commissioner. The stakeholder committee shall 347.1 include representatives from the following stakeholders: 347.2 consumers and their family members, advocates, advocacy 347.3 organizations, service providers, state government, counties, 347.4 and health plan companies. This stakeholder committee shall be 347.5 in operation for the demonstration period. The county 347.6 authorities shall continue to meet with state government to 347.7 develop the intergovernmental partnership. 347.8 Subd. 24. [REPORT TO THE LEGISLATURE.] By February 15 of 347.9 each year of the demonstration project, the commissioner shall 347.10 report to the legislature on the progress of the demonstration 347.11 project, including enrollee outcomes, enrollee satisfaction, 347.12 fiscal information, other information as described in 347.13 subdivision 18, recommendations from the stakeholder committee, 347.14 and descriptions of any rules or other administrative procedures 347.15 waived. 347.16 Subd. 25. [SEVERABILITY.] If any subdivision of this 347.17 section is not approved by the United States Department of 347.18 Health and Human Services, the commissioner, with the approval 347.19 of the county authority, retains the authority to implement the 347.20 remaining subdivisions. 347.21 Subd. 26. [SOUTHERN MINNESOTA HEALTH INITIATIVE PILOT 347.22 PROJECT.] When the commissioner contracts under subdivisions 1 347.23 and 6, paragraph (a), with the joint powers board for Blue 347.24 Earth, Freeborn, LeSueur, and Rice counties to participate in 347.25 the demonstration project for persons with disabilities under 347.26 subdivision 5, the commissioner shall also require health plans 347.27 participating in those counties under this section to contract 347.28 with the southern Minnesota health initiative (SMHI) joint 347.29 powers board to provide covered mental health and chemical 347.30 dependency services for the nonelderly/nondisabled persons who 347.31 reside in one of the four counties and who are required or elect 347.32 to participate in the prepaid medical assistance and general 347.33 assistance medical care programs. Enrollees may obtain covered 347.34 mental health and chemical dependency services through the SMHI 347.35 or through other health plan contractors. Participation of the 347.36 nonelderly/nondisabled with the SMHI is voluntary. The 348.1 commissioner shall identify a monthly per capita payment amount 348.2 that health plans are required to pay to the SMHI for all 348.3 nonelderly/nondisabled recipients who choose the SMHI for their 348.4 mental health and chemical dependency services. 348.5 ARTICLE 9 348.6 MISCELLANEOUS 348.7 Section 1. Minnesota Statutes 1996, section 16A.124, 348.8 subdivision 4b, is amended to read: 348.9 Subd. 4b. [HEALTH CARE PAYMENTS.] The commissioner of 348.10 human services must pay or deny a valid vendor obligation for 348.11 health services under the medical assistance, general assistance 348.12 medical care, or MinnesotaCare program within 30 days after 348.13 receipt. A "valid vendor obligation" means a clean claim 348.14 submitted directly to the commissioner by an eligible health 348.15 care provider for health services provided to an eligible 348.16 recipient. A "clean claim" means an original paper or 348.17 electronic claim with correct data elements, prepared in 348.18 accordance with the commissioner's published specifications for 348.19 claim preparation, that does not require an attachment or text 348.20 information to pay or deny the claim. Adjustment claims, claims 348.21 with attachments and text information, and claims submitted to 348.22 the commissioner as the secondary or tertiary payer, that have 348.23 been prepared in accordance with the commissioner's published 348.24 specifications, must be adjudicated within 90 days after receipt. 348.25 The agency is not required to make an interest penalty 348.26 payment on claims for which payment has been delayed for 348.27 purposes of reviewing potentially fraudulent or abusive billing 348.28 practices, if there is an eventual finding by the agency of 348.29 fraud or abuse. 348.30 Sec. 2. [181.301] [AFTER ACCIDENT COUNSELING.] 348.31 Subdivision 1. [COUNSELING AND LEAVE.] Every railroad 348.32 company shall make available to every affected member of an 348.33 operating crew involved in an accident on its railroad 348.34 right-of-way, which results in loss of life, counseling 348.35 services, or other critical incident stress debriefing services 348.36 within 48 hours of the accident. Upon request, the operating 349.1 crew members involved in the accident may be relieved from duty, 349.2 with compensation and applicable benefits, for up to three work 349.3 days following the accident. After returning to duty, a crew 349.4 member experiencing traumatic symptoms related to the accident 349.5 may be afforded additional time off upon recommendation by the 349.6 counseling service provider. 349.7 Subd. 2. [DATA PRIVACY.] No statements made in or 349.8 information derived from peer or professional counseling 349.9 performed under this section may be used in any disciplinary 349.10 proceedings against any employee or in any legal action 349.11 involving any party to the accident. 349.12 Subd. 3. [REQUEST FOR PLAN BY COMMISSIONER.] The 349.13 commissioner of health may request a copy of the railroad 349.14 company's plan which demonstrates evidence that the services 349.15 required in subdivision 1 are available to railroad employees. 349.16 Sec. 3. Minnesota Statutes 1996, section 245.03, 349.17 subdivision 2, is amended to read: 349.18 Subd. 2. [MISSION; EFFICIENCY.] It is part of the 349.19 department's mission that within the department's resources the 349.20 commissioner shall endeavor to: 349.21 (1) prevent the waste or unnecessary spending of public 349.22 money; 349.23 (2) use innovative fiscal and human resource practices to 349.24 manage the state's resources and operate the department as 349.25 efficiently as possible, including the authority to consolidate 349.26 different nonentitlement grant programs, having similar 349.27 functions or serving similar populations, as may be determined 349.28 by the commissioner, while protecting the original purposes of 349.29 the programs. Nonentitlement grant funds consolidated by the 349.30 commissioner shall be reflected in the department's biennial 349.31 budget. With approval of the commissioner, vendors who are 349.32 eligible for funding from any of the commissioner's granting 349.33 authority under section 256.01, subdivision 2, paragraph (1), 349.34 clause (f), may submit a single application for a grant 349.35 agreement including multiple awards; 349.36 (3) coordinate the department's activities wherever 350.1 appropriate with the activities of other governmental agencies; 350.2 (4) use technology where appropriate to increase agency 350.3 productivity, improve customer service, increase public access 350.4 to information about government, and increase public 350.5 participation in the business of government; 350.6 (5) utilize constructive and cooperative labor-management 350.7 practices to the extent otherwise required by chapters 43A and 350.8 179A; 350.9 (6) include specific objectives in the performance report 350.10 required under section 15.91 to increase the efficiency of 350.11 agency operations, when appropriate; and 350.12 (7) recommend to the legislature, in the performance report 350.13 of the department required under section 15.91, appropriate 350.14 changes in law necessary to carry out the mission of the 350.15 department. 350.16 Sec. 4. Minnesota Statutes 1996, section 256.025, 350.17 subdivision 1, is amended to read: 350.18 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 350.19 section, the following terms have the meanings given them. 350.20 (b) "Base amount" means the calendar year 1990 county share 350.21 of county agency expenditures for all of the programs specified 350.22 in subdivision 2, except for the programs in subdivision 2, 350.23 clauses (4), (7), and (13). The 1990 base amount for 350.24 subdivision 2, clause (4), shall be reduced by one-seventh for 350.25 each county, and the 1990 base amount for subdivision 2, clause 350.26 (7), shall be reduced by seven-tenths for each county, and those 350.27 amounts in total shall be the 1990 base amount for group 350.28 residential housing in subdivision 2, clause (13). Effective 350.29 January 1, 1998, the base amount for the programs in subdivision 350.30 2, clauses (1) and (6), shall be eliminated and shall be 350.31 considered the 1990 base amount for Minnesota family investment 350.32 program-statewide in subdivision 2, clause (14). 350.33 (c) "County agency expenditure" means the total expenditure 350.34 or cost incurred by the county of financial responsibility for 350.35 the benefits and services for each of the programs specified in 350.36 subdivision 2, excluding county optional costs which are not 351.1 reimbursable with state funds. The term includes the federal, 351.2 state, and county share of costs for programs in which there is 351.3 federal financial participation. For programs in which there is 351.4 no federal financial participation, the term includes the state 351.5 and county share of costs. The term excludes county 351.6 administrative costs, unless otherwise specified. 351.7 (d) "Nonfederal share" means the sum of state and county 351.8 shares of costs of the programs specified in subdivision 2. 351.9 (e) The "county share of county agency expenditures growth 351.10 amount" is the amount by which the county share of county agency 351.11 expenditures in calendar years 1991 to 2002 has increased over 351.12 the base amount. 351.13 Sec. 5. Minnesota Statutes 1996, section 256.025, 351.14 subdivision 2, is amended to read: 351.15 Subd. 2. [COVERED PROGRAMS AND SERVICES.] The procedures 351.16 in this section govern payment of county agency expenditures for 351.17 benefits and services distributed under the following programs: 351.18 (1) aid to families with dependent children under sections 351.19 256.82, subdivision 1, and 256.935, subdivision 1; 351.20 (2) medical assistance under sections 256B.041, subdivision 351.21 5, and 256B.19, subdivision 1; 351.22 (3) general assistance medical care under section 256D.03, 351.23 subdivision 6; 351.24 (4) general assistance under section 256D.03, subdivision 351.25 2; 351.26 (5) work readiness under section 256D.03, subdivision 2, 351.27 for assistance costs incurred prior to July 1, 1995; 351.28 (6) emergency assistance under section 256.871, subdivision 351.29 6; 351.30 (7) Minnesota supplemental aid under section 256D.36, 351.31 subdivision 1; 351.32 (8) preadmission screening and alternative care grants; 351.33 (9) work readiness services under section 256D.051 for 351.34 employment and training services costs incurred prior to July 1, 351.35 1995; 351.36 (10) case management services under section 256.736, 352.1 subdivision 13, for case management service costs incurred prior 352.2 to July 1, 1995; 352.3 (11) general assistance claims processing, medical 352.4 transportation and related costs; 352.5 (12) medical assistance, medical transportation and related 352.6 costs;and352.7 (13) group residential housing under section 256I.05, 352.8 subdivision 8, transferred from programs in clauses (4) and (7); 352.9 and 352.10 (14) Minnesota family investment program-statewide under 352.11 section 256J.02, subdivision 2, clauses (1), (3), and (4), 352.12 transferred from programs in clauses (1) and (6). 352.13 Sec. 6. Minnesota Statutes 1996, section 256.9742, is 352.14 amended to read: 352.15 256.9742 [DUTIES AND POWERS OF THE OFFICE.] 352.16 Subdivision 1. [DUTIES.] Theombudsmanombudsman's program 352.17 shall: 352.18 (1) gather information and evaluate any act, practice, 352.19 policy, procedure, or administrative action of a long-term care 352.20 facility, acute care facility, home care service provider, or 352.21 government agency that may adversely affect the health, safety, 352.22 welfare, or rights of any client; 352.23 (2) mediate or advocate on behalf of clients; 352.24 (3) monitor the development and implementation of federal, 352.25 state, or local laws, rules, regulations, and policies affecting 352.26 the rights and benefits of clients; 352.27 (4) comment on and recommend to the legislature and public 352.28 and private agencies regarding laws, rules, regulations, and 352.29 policies affecting clients; 352.30 (5) inform public agencies about the problems of clients; 352.31 (6) provide for training of volunteers and promote the 352.32 development of citizen participation in the work of the office; 352.33 (7) conduct public forums to obtain information about and 352.34 publicize issues affecting clients; 352.35 (8) provide public education regarding the health, safety, 352.36 welfare, and rights of clients; and 353.1 (9) collect and analyze data relating to complaints, 353.2 conditions, and services. 353.3 Subd. 1a. [DESIGNATION; LOCAL OMBUDSMANREPRESENTATIVES353.4 STAFF AND VOLUNTEERS.] (a) In designating an individual to 353.5 perform duties under this section, the ombudsman must determine 353.6 that the individual is qualified to perform the duties required 353.7 by this section. 353.8 (b) An individual designated as ombudsman staff under this 353.9 section must successfully complete an orientation training 353.10 conducted under the direction of the ombudsman or approved by 353.11 the ombudsman. Orientation training shall be at least 20 hours 353.12 and will consist of training in: investigation, dispute 353.13 resolution, health care regulation, confidentiality, resident 353.14 and patients' rights, and health care reimbursement. 353.15 (c) The ombudsman shall develop and implement a continuing 353.16 education program for individuals designated as ombudsman staff 353.17 under this section. The continuing education program shall be 353.18 at least 60 hours annually. 353.19 (d) An individual designated as an ombudsman volunteer 353.20 under this section must successfully complete an approved 353.21 orientation training course with a minimum curriculum including 353.22 federal and state bills of rights for long-term care residents, 353.23 acute hospital patients and home care clients, the Vulnerable 353.24 Adults Act, confidentiality, and the role of the ombudsman. 353.25 (e) The ombudsman shall develop and implement a continuing 353.26 education program for ombudsman volunteers which will provide a 353.27 minimum of 12 hours of continuing education per year. 353.28 (f) The ombudsman may withdraw an individual's designation 353.29 if the individual fails to perform duties of this section or 353.30 meet continuing education requirements. The individual may 353.31 request a reconsideration of such action by the board on aging 353.32 whose decision shall be final. 353.33 Subd. 2. [IMMUNITY FROM LIABILITY.] The ombudsman or 353.34 designee including staff and volunteers under this section is 353.35 immune from civil liability that otherwise might result from the 353.36 person's actions or omissions if the person's actions are in 354.1 good faith, are within the scope of the person's 354.2 responsibilities as an ombudsman or designee, and do not 354.3 constitute willful or reckless misconduct. 354.4 Subd. 3. [POSTING.] Every long-term care facility and 354.5 acute care facility shall post in a conspicuous place the 354.6 address and telephone number of the office. A home care service 354.7 provider shall provide all recipients, including those in 354.8 elderly housing with services under chapter 144D, with the 354.9 address and telephone number of the office. Counties shall 354.10 provide clients receiving a consumer support grant or a service 354.11 allowance with the name, address, and telephone number of the 354.12 office. The posting or notice is subject to approval by the 354.13 ombudsman. 354.14 Subd. 4. [ACCESS TO LONG-TERM CARE AND ACUTE CARE 354.15 FACILITIES AND CLIENTS.] The ombudsman or designee may: 354.16 (1) enter any long-term care facility without notice at any 354.17 time; 354.18 (2) enter any acute care facility without notice during 354.19 normal business hours; 354.20 (3) enter any acute care facility without notice at any 354.21 time to interview a patient or observe services being provided 354.22 to the patient as part of an investigation of a matter that is 354.23 within the scope of the ombudsman's authority, but only if the 354.24 ombudsman's or designee's presence does not intrude upon the 354.25 privacy of another patient or interfere with routine hospital 354.26 services provided to any patient in the facility; 354.27 (4) communicate privately and without restriction with any 354.28 client in accordance with section 144.651, as long as the 354.29 ombudsman has the client's consent for such communication; 354.30 (5) inspect records of a long-term care facility, home care 354.31 service provider, or acute care facility that pertain to the 354.32 care of the client according to sections 144.335 and 144.651; 354.33 and 354.34 (6) with the consent of a client or client's legal 354.35 guardian, the ombudsman or designated staff shall have access to 354.36 review records pertaining to the care of the client according to 355.1 sections 144.335 and 144.651. If a client cannot consent and 355.2 has no legal guardian, access to the records is authorized by 355.3 this section. 355.4 A person who denies access to the ombudsman or designee in 355.5 violation of this subdivision or aids, abets, invites, compels, 355.6 or coerces another to do so is guilty of a misdemeanor. 355.7 Subd. 5. [ACCESS TO STATE RECORDS.] The ombudsman or 355.8 designee, excluding volunteers, has access to data of a state 355.9 agency necessary for the discharge of the ombudsman's duties, 355.10 including records classified confidential or private under 355.11 chapter 13, or any other law. The data requested must be 355.12 related to a specific case and is subject to section 13.03, 355.13 subdivision 4. If the data concerns an individual, the 355.14 ombudsman or designee shall first obtain the individual's 355.15 consent. If the individual cannot consent and has no legal 355.16 guardian, then access to the data is authorized by this section. 355.17 Each state agency responsible for licensing, regulating, 355.18 and enforcing state and federal laws and regulations concerning 355.19 long-term care, home care service providers, and acute care 355.20 facilities shall forward to the ombudsman on a quarterly basis, 355.21 copies of all correction orders, penalty assessments, and 355.22 complaint investigation reports, for all long-term care 355.23 facilities, acute care facilities, and home care service 355.24 providers. 355.25 Subd. 6. [PROHIBITION AGAINST DISCRIMINATION OR 355.26 RETALIATION.] (a) No entity shall take discriminatory, 355.27 disciplinary, or retaliatory action against an employee or 355.28 volunteer, or a patient, resident, or guardian or family member 355.29 of a patient, resident, or guardian for filing in good faith a 355.30 complaint with or providing information to the ombudsman or 355.31 designee including volunteers. A person who violates this 355.32 subdivision or who aids, abets, invites, compels, or coerces 355.33 another to do so is guilty of a misdemeanor. 355.34 (b) There shall be a rebuttable presumption that any 355.35 adverse action, as defined below, within 90 days of report, is 355.36 discriminatory, disciplinary, or retaliatory. For the purpose 356.1 of this clause, the term "adverse action" refers to action taken 356.2 by the entity involved in a report against the person making the 356.3 report or the person with respect to whom the report was made 356.4 because of the report, and includes, but is not limited to: 356.5 (1) discharge or transfer from a facility; 356.6 (2) termination of service; 356.7 (3) restriction or prohibition of access to the facility or 356.8 its residents; 356.9 (4) discharge from or termination of employment; 356.10 (5) demotion or reduction in remuneration for services; and 356.11 (6) any restriction of rights set forth in section 144.651 356.12 or 144A.44. 356.13 Sec. 7. Minnesota Statutes 1996, section 256.9744, 356.14 subdivision 2, is amended to read: 356.15 Subd. 2. [RELEASE.] Data maintained by the office that 356.16 does not relate to the identity of a complainant, client 356.17 receiving home-care services, or a resident of a long-term 356.18 facility may be released at the discretion of the ombudsman 356.19 responsible for maintaining the data. Data relating to the 356.20 identity of a complainant, a client receiving home-care 356.21 services, or a resident of a long-term facility may be released 356.22 only with the consent of the complainant, the client or resident 356.23 or by court order. 356.24 Sec. 8. Minnesota Statutes 1996, section 256J.02, is 356.25 amended by adding a subdivision to read: 356.26 Subd. 6. [COUNTY SHARE.] The county share of the MFIP-S 356.27 program shall be eight percent of the expenditures for the 356.28 purposes under subdivision 2, clauses (1), (3), and (4). The 356.29 state shall reimburse the counties according to the payment 356.30 schedule set forth in section 256.025. Payment under this 356.31 subdivision is subject to the provisions of section 256.017. 356.32 Sec. 9. [256J.03] [TANF RESERVE ACCOUNT.] 356.33 There shall be created in the federal fund in the state 356.34 treasury a temporary assistance for needy families (TANF) 356.35 reserve account. All unexpended federal TANF block grant funds 356.36 authorized under title I of Public Law Number 104-193 and 357.1 appropriated for the biennium do not cancel to the general fund 357.2 but shall be transferred to the TANF reserve account. Amounts 357.3 remaining in the TANF reserve account do not cancel, but remain 357.4 in the account until appropriated. 357.5 Sec. 10. [256J.80] [JOBS-PLUS PILOT PROJECT.] 357.6 Subdivision 1. [PROJECT AUTHORIZED.] A three-year 357.7 jobs-plus pilot project administered by the Manpower 357.8 Demonstration Research Corporation is authorized in Ramsey 357.9 county. The commissioner of human services shall cooperate with 357.10 the St. Paul public housing authority, Ramsey county, the St. 357.11 Paul workforce development center, and the Manpower 357.12 Demonstration Research Corporation to develop and implement the 357.13 project. 357.14 Subd. 2. [PROJECT DESCRIPTION.] (a) Jobs-plus shall offer 357.15 intensive employment-related services and activities to 357.16 working-age family residents of the Mt. Airy Homes public 357.17 housing development. McDonough Homes and Roosevelt Homes public 357.18 housing developments shall be used as comparison sites. The 357.19 project shall incorporate community support for work, work 357.20 incentives, and best practices in preparing people for sustained 357.21 employment and in linking residents with jobs. 357.22 (b) The Mt. Airy community center shall serve as a hub for 357.23 delivery of pilot project services, delivery of related 357.24 services, and promotion of community support for work. The 357.25 center shall provide space for economic development and 357.26 supportive services programming and for activities that best 357.27 respond to diverse resident needs, including expanded child 357.28 care, computer technology access, employment-related and 357.29 workforce literacy training, job clubs, job fairs, special 357.30 workshops, and life skills training. 357.31 (c) The pilot project shall promote the involvement of Mt. 357.32 Airy Homes residents in the development and implementation of 357.33 the pilot project through community meetings, celebrations and 357.34 recognition events, and the inclusion of resident 357.35 representatives in planning and implementation activities. 357.36 (d) The commissioner may authorize work incentives that 358.1 exceed the incentives provided to participants in the Minnesota 358.2 family investment program-statewide (MFIP-S). 358.3 (e) The commissioner of human services, the St. Paul public 358.4 housing authority, Ramsey county, the St. Paul workforce 358.5 development center, and the Manpower Development Research 358.6 Corporation may negotiate changes as necessary in the program 358.7 outlined in paragraphs (a) to (d) in order to develop an 358.8 effective jobs-plus project. 358.9 Subd. 3. [PROJECT FUNDING.] The commissioner of human 358.10 services may authorize work incentives that are different from 358.11 the incentives provided under the MFIP-S program only if 358.12 nonstate funding is available to defray the additional costs 358.13 associated with utilizing the different work incentives. 358.14 Subd. 4. [RELEASE OF DATA.] Notwithstanding the provisions 358.15 of chapter 13, Ramsey county and the relevant state agencies 358.16 shall, upon request, release to the Manpower Demonstration 358.17 Research Corporation data on public assistance benefits 358.18 received, wages earned, and unemployment insurance benefits 358.19 received by residents of the Mt. Airy Homes, McDonough Homes, 358.20 and Roosevelt Homes public housing developments in St. Paul 358.21 during the period from 1992 to 2002 for the purposes of 358.22 complying with the research and evaluation requirements of the 358.23 jobs-plus program. 358.24 Sec. 11. Minnesota Statutes 1996, section 256E.06, is 358.25 amended by adding a subdivision to read: 358.26 Subd. 2b. [COUNTY SOCIAL SERVICE GRANTS FOR FORMER GRH 358.27 RECIPIENTS.] (a) Notwithstanding subdivisions 1 and 2, and 358.28 notwithstanding the provision in Laws 1995, chapter 207, article 358.29 1, section 2, subdivision 3, that authorized the commissioner to 358.30 transfer funds from the group residential housing account to 358.31 community social services aids to counties, beginning July 1, 358.32 1995, money used to provide continuous funding for assistance to 358.33 persons who are no longer eligible for assistance under the 358.34 group residential housing program under chapter 256I, as 358.35 specified in paragraph (b), is added to the community social 358.36 services aid amount for the county in which the group 359.1 residential housing setting for which the person is no longer 359.2 eligible is located. Notwithstanding the provision in Laws 359.3 1995, chapter 207, article 1, section 2, subdivision 3, that 359.4 required the increased community social services act 359.5 appropriations to be used to proportionately increase each 359.6 county's aid, this money must not be apportioned to any other 359.7 county or counties. 359.8 (b) Former group residential housing recipients for whom 359.9 money is added to a county's aid amount under paragraph (a) 359.10 include: 359.11 (1) persons receiving services in Hennepin county from a 359.12 provider that on August 1, 1984, was licensed under Minnesota 359.13 Rules, parts 9525.0520 to 9525.0660, but was funded as a group 359.14 residence under the general assistance or Minnesota supplemental 359.15 aid programs; 359.16 (2) persons residing in a setting with a semi-independent 359.17 living services license under Minnesota Rules, parts 9525.0900 359.18 to 9525.1020; or 359.19 (3) persons residing in family foster care settings who 359.20 have become ineligible for group residential housing assistance 359.21 because they receive services through the medical assistance 359.22 community-based waiver for persons with mental retardation or 359.23 related conditions under section 256B.0916. 359.24 Sec. 12. Minnesota Statutes 1996, section 518.17, 359.25 subdivision 1, is amended to read: 359.26 Subdivision 1. [THE BEST INTERESTS OF THE CHILD.] (a) "The 359.27 best interests of the child" means all relevant factors to be 359.28 considered and evaluated by the court including: 359.29 (1) the wishes of the child's parent or parents as to 359.30 custody; 359.31 (2) the reasonable preference of the child, if the court 359.32 deems the child to be of sufficient age to express preference; 359.33 (3) the child's primary caretaker; 359.34 (4) the intimacy of the relationship between each parent 359.35 and the child; 359.36 (5) the interaction and interrelationship of the child with 360.1 a parent or parents, siblings, and any other person who may 360.2 significantly affect the child's best interests; 360.3 (6) the child's adjustment to home, school, and community; 360.4 (7) the length of time the child has lived in a stable, 360.5 satisfactory environment and the desirability of maintaining 360.6 continuity; 360.7 (8) the permanence, as a family unit, of the existing or 360.8 proposed custodial home; 360.9 (9) the mental and physical health of all individuals 360.10 involved; except that a disability, as defined in section 360.11 363.01, of a proposed custodian or the child shall not be 360.12 determinative of the custody of the child, unless the proposed 360.13 custodial arrangement is not in the best interest of the child; 360.14 (10) the capacity and disposition of the parties to give 360.15 the child love, affection, and guidance, and to continue 360.16 educating and raising the child in the child's culture and 360.17 religion or creed, if any; 360.18 (11) the child's cultural background; 360.19 (12) the effect on the child of the actions of an abuser, 360.20 if related to domestic abuse, as defined in section 518B.01, 360.21 that has occurred between the parents or between a parent and 360.22 another individual, whether or not the individual alleged to 360.23 have committed domestic abuse is or ever was a family or 360.24 household member of the parent; and 360.25 (13) except in cases in which a finding of domestic abuse 360.26 as defined in section 518B.01 has been made, the disposition of 360.27 each parent to encourage and permit frequent and continuing 360.28 contact by the other parent with the child. 360.29 The court may not use one factor to the exclusion of all 360.30 others. The primary caretaker factor may not be used as a 360.31 presumption in determining the best interests of the child. The 360.32 court must make detailed findings on each of the factors and 360.33 explain how the factors led to its conclusions and to the 360.34 determination of the best interests of the child. 360.35 (b) The court shall not consider conduct of a proposed 360.36 custodian that does not affect the custodian's relationship to 361.1 the child. 361.2 Sec. 13. [STUDY ON OMBUDSMAN SERVICES.] 361.3 The senate health and family security budget division and 361.4 the house health and human services finance division shall (1) 361.5 study the regulatory effectiveness and efficiency of the current 361.6 ombudsman services to the elderly, developmentally disabled, 361.7 chemically dependent, and mentally ill; (2) study the 361.8 overlapping of services among all protective and advocacy 361.9 services currently funded by the state; and (3) make 361.10 recommendations on coordinating the current ombudsman services, 361.11 for the above described populations, in order to improve their 361.12 effectiveness and efficiency. The recommendations may include 361.13 proposed statute and rule changes relating to advocacy practices 361.14 and personal and professional conduct. 361.15 Sec. 14. [HEALTH CARE CONSUMER ASSISTANCE GRANTS; BOARD ON 361.16 AGING.] 361.17 The board on aging shall award a grant to each of the 14 361.18 area agencies on aging to develop projects to provide 361.19 information about health coverage and to provide assistance to 361.20 individuals in obtaining public and private health care benefits. 361.21 Projects must: 361.22 (1) train and support staff and volunteers to work in 361.23 partnership to provide one-on-one information and assistance 361.24 services; 361.25 (2) provide individual consumers with assistance in 361.26 understanding the terms of a certificate, contract, or policy of 361.27 health coverage, including but not limited to, terms relating to 361.28 covered services, limitations on services, limitations on access 361.29 to providers, and enrollee complaint and appeal procedures; 361.30 (3) assist individuals to understand medical bills and to 361.31 process health care claims and appeals to obtain health care 361.32 benefits; 361.33 (4) coordinate with existing health insurance counseling 361.34 programs serving Medicare eligible individuals or establish 361.35 programs to serve all consumers; 361.36 (5) target those individuals determined to be in greatest 362.1 social and economic need for counseling services; and 362.2 (6) operate according to United States Code, title 42, 362.3 section 1395b-4, if serving Medicare beneficiaries. 362.4 Sec. 15. [SERVICES PROVIDED TO DEAF-BLIND CHILDREN BY 362.5 LOCAL ORGANIZATIONS; PARENTAL CONTRIBUTION REQUIRED.] (a) An 362.6 organization that receives a grant from the commissioner of 362.7 human services to provide services to deaf-blind children and 362.8 their families must require the deaf-blind child's parents to be 362.9 responsible for the cost of services provided, based upon the 362.10 parents' ability to pay. In determining a parent's ability to 362.11 pay, the organization must utilize the contribution amount 362.12 sliding scale specified in Minnesota Statutes, section 252.27, 362.13 subdivision 2a. The commissioner must provide technical 362.14 assistance to the organization to assist the organization to 362.15 implement this sliding scale requirement. 362.16 (b) The commissioner and the organization must monitor the 362.17 implementation of the sliding scale requirement in paragraph 362.18 (a). If the commissioner and the organization develop 362.19 recommendations for an alternative method of implementing a 362.20 parental contribution sliding scale requirement that is easier 362.21 for the organization to administer, the commissioner must report 362.22 these recommendations to the chairs of the house health and 362.23 human services finance division and the senate health and family 362.24 security budget division by January 31, 1998. 362.25 Sec. 16. [REPEALER.] 362.26 Minnesota Statutes, section 256.026, is repealed effective 362.27 January 1, 1998. 362.28 Sec. 17. [EFFECTIVE DATE.] 362.29 Sections 2 and 11 are effective the day following final 362.30 enactment. 362.31 ARTICLE 10 362.32 MARRIAGE PROVISIONS 362.33 Section 1. Minnesota Statutes 1996, section 517.01, is 362.34 amended to read: 362.35 517.01 [MARRIAGE A CIVIL CONTRACT.] 362.36 Marriage, so far as its validity in law is concerned, is a 363.1 civil contract between a man and a woman, to which the consent 363.2 of the parties, capable in law of contracting, is essential. 363.3 Lawful marriage may be contracted only between persons of the 363.4 opposite sex and only when a license has been obtained as 363.5 provided by law and when the marriage is contracted in the 363.6 presence of two witnesses and solemnized by one authorized, or 363.7 whom one or both of the parties in good faith believe to be 363.8 authorized, so to do. Marriages subsequent to April 26, 1941, 363.9 not so contracted shall be null and void. 363.10 Sec. 2. Minnesota Statutes 1996, section 517.03, is 363.11 amended to read: 363.12 517.03 [PROHIBITED MARRIAGES.] 363.13 Subdivision 1. [GENERAL.] (a) The following marriages are 363.14 prohibited: 363.15(a)(1) a marriage entered into before the dissolution of 363.16 an earlier marriage of one of the parties becomes final, as 363.17 provided in section 518.145 or by the law of the jurisdiction 363.18 where the dissolution was granted; 363.19(b)(2) a marriage between an ancestor and a descendant, or 363.20 between a brother and a sister, whether the relationship is by 363.21 the half or the whole blood or by adoption; 363.22(c)(3) a marriage between an uncle and a niece, between an 363.23 aunt and a nephew, or between first cousins, whether the 363.24 relationship is by the half or the whole blood, except as to 363.25 marriages permitted by the established customs of aboriginal 363.26 cultures;provided, however, thatand 363.27 (4) a marriage between persons of the same sex. 363.28 (b) A marriage entered into by persons of the same sex, 363.29 either under common law or statute, that is recognized by 363.30 another state or foreign jurisdiction is void in this state and 363.31 contractual rights granted by virtue of the marriage or its 363.32 termination are unenforceable in this state. A same-sex 363.33 relationship may not be recognized by this state as being 363.34 entitled to the benefits of marriage. 363.35 Subd. 2. [MENTALLY RETARDED PERSONS; CONSENT BY 363.36 COMMISSIONER OF HUMAN SERVICES.] Mentally retarded persons 364.1 committed to the guardianship of the commissioner of human 364.2 services and mentally retarded persons committed to the 364.3 conservatorship of the commissioner of human services in which 364.4 the terms of the conservatorship limit the right to marry, may 364.5 marry on receipt of written consent of the commissioner. The 364.6 commissioner shall grant consent unless it appears from the 364.7 commissioner's investigation that the marriage is not in the 364.8 best interest of the ward or conservatee and the public. The 364.9 court administrator of the district court in the county where 364.10 the application for a license is made by the ward or conservatee 364.11 shall not issue the license unless the court administrator has 364.12 received a signed copy of the consent of the commissioner of 364.13 human services. 364.14 Sec. 3. Minnesota Statutes 1996, section 517.08, 364.15 subdivision 1a, is amended to read: 364.16 Subd. 1a. Application for a marriage license shall be made 364.17 upon a form provided for the purpose and shall contain the 364.18 following information: 364.19 (1) the full names of the parties,and the sex of each 364.20 party; 364.21 (2) their post office addresses and county and state of 364.22 residence,; 364.23 (3) their full ages,; 364.24 (4) if either party has previously been married, the 364.25 party's married name, and the date, place and court in which the 364.26 marriage was dissolved or annulled or the date and place of 364.27 death of the former spouse,; 364.28 (5) if either party is a minor, the name and address of the 364.29 minor's parents or guardian,; 364.30 (6) whether the parties are related to each other, and, if 364.31 so, their relationship,; 364.32 (7) the name and date of birth of any child of which both 364.33 parties are parents, born before the making of the application, 364.34 unless their parental rights and the parent and child 364.35 relationship with respect to the child have been terminated,; 364.36 (8) address of the bride and groom after the marriage to 365.1 which the court administrator shall send a certified copy of the 365.2 marriage certificate,; and 365.3 (9) the full names the parties will have after marriage. 365.4 Sec. 4. Minnesota Statutes 1996, section 517.20, is 365.5 amended to read: 365.6 517.20 [APPLICATION.] 365.7 Except as provided in section 517.03, subdivision 1, 365.8 paragraph (b), all marriages contracted within this state prior 365.9 to March 1, 1979 or outside this state that were valid at the 365.10 time of the contract or subsequently validated by the laws of 365.11 the place in which they were contracted or by the domicile of 365.12 the parties are valid in this state. 365.13 Sec. 5. [EFFECTIVE DATE.] 365.14 Sections 1, 2, and 4 are effective the day following final 365.15 enactment. Section 3 is effective July 1, 1997. Section 2, 365.16 subdivision 1, paragraph (b), and section 4 apply to all 365.17 marriages entered into in other jurisdictions before, on, or 365.18 after the effective date.