Minnesota Legislature
SF 1908
3rd 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 a 1.23 subdivision; 16A.124, subdivision 4b; 62D.04, 1.24 subdivision 5; 62E.14, by adding a subdivision; 1.25 62J.69, subdivision 2; 62N.10, subdivision 4; 1.26 103I.101, subdivision 6; 103I.208; 103I.401, 1.27 subdivision 1; 144.0721, subdivision 3; 144.121, 1.28 subdivision 1, and by adding subdivisions; 144.125; 1.29 144.226, subdivision 1, and by adding a subdivision; 1.30 144.394; 144.767, subdivision 1; 144A.071, 1.31 subdivisions 1, 2, and 4a; 144A.073, subdivision 2, 1.32 and by adding a subdivision; 145.925, subdivision 9; 1.33 151.40; 153A.17; 157.16, subdivision 3; 245.03, 1.34 subdivision 2; 245.4882, subdivision 5; 245.493, 1.35 subdivision 1, and by adding a subdivision; 245.652, 1.36 subdivisions 1, 2, and 4; 246.0135; 246.02, 1.37 subdivision 2; 252.025, subdivisions 1, 4, and by 1.38 adding a subdivision; 252.32, subdivisions 1a, 3, 3a, 1.39 3c, and 5; 254.04; 254B.02, subdivisions 1 and 3; 1.40 254B.03, subdivision 1; 254B.09, subdivisions 4, 5, 1.41 and 7; 256.01, subdivision 2, and by adding a 1.42 subdivision; 256.025, subdivisions 1 and 2; 256.045, 1.43 subdivisions 3, 3b, 4, 5, 7, and 8; 256.476, 1.44 subdivisions 2, 3, 4, and 5; 256.82, by adding a 1.45 subdivision; 256.87, subdivisions 1, 1a, 3, 5, and by 1.46 adding a subdivision; 256.9363, subdivision 7; 2.1 256.969, subdivision 1; 256.9695, subdivision 1; 2.2 256.9742; 256.9744, subdivision 2; 256.978, 2.3 subdivisions 1 and 2; 256.9792, subdivisions 1 and 2; 2.4 256.998, subdivisions 1, 6, 7, and by adding 2.5 subdivisions; 256B.037, subdivision 1a; 256B.04, by 2.6 adding a subdivision; 256B.055, subdivision 12; 2.7 256B.056, subdivisions 4 and 5; 256B.057, subdivisions 2.8 1, 1b, and 2; 256B.0625, subdivisions 14, 15, and by 2.9 adding a subdivision; 256B.0626; 256B.0627, 2.10 subdivision 5; 256B.064, subdivisions 1a, 1c, and 2; 2.11 256B.0911, subdivision 7; 256B.0913, subdivisions 7, 2.12 10, and 15; 256B.0915, subdivision 1b and by adding a 2.13 subdivision; 256B.0917, subdivisions 7 and 8; 2.14 256B.421, subdivision 1; 256B.431, subdivisions 3f, 2.15 25, and by adding subdivisions; 256B.434, subdivision 2.16 3; 256B.49, subdivision 1; 256B.69, subdivisions 2, 2.17 3a, 4, 5, 5b, 6, and by adding subdivisions; 256D.03, 2.18 subdivisions 3 and 3b; 256E.06, by adding a 2.19 subdivision; 256F.04, subdivisions 1 and 2; 256F.05, 2.20 subdivisions 2, 3, 4, and 8; 256F.06, subdivisions 1 2.21 and 2; 256F.11, subdivision 2; 256G.02, subdivision 6; 2.22 256I.05, subdivision 1a, and by adding a subdivision; 2.23 256J.69, by adding a subdivision; 257.62, subdivisions 2.24 1 and 2; 257.66, subdivision 3, and by adding a 2.25 subdivision; 257.70; 257.75, subdivisions 2, 3, 4, 5, 2.26 and 7; 299C.46, subdivision 3; 326.37, subdivision 1; 2.27 393.07, subdivision 2; 466.01, subdivision 1; 469.155, 2.28 subdivision 4; 471.59, subdivision 11; 508.63; 2.29 508A.63; 517.01; 517.03; 517.08, subdivision 1a; 2.30 517.20; 518.005, by adding a subdivision; 518.10; 2.31 518.148, subdivision 2; 518.17, subdivision 1; 2.32 518.171, subdivisions 1 and 4; 518.54, subdivision 6, 2.33 and by adding a subdivision; 518.551, subdivisions 12 2.34 and 13; 518.5512, by adding subdivisions; 518.616, by 2.35 adding a subdivision; 518.68, subdivision 2; 518C.101; 2.36 518C.204; 518C.205; 518C.207; 518C.301; 518C.304; 2.37 518C.305; 518C.310; 518C.401; 518C.501; 518C.603; 2.38 518C.605; 518C.608; 518C.611; 518C.612; 518C.701; 2.39 548.091, subdivisions 1a, 2a, 3a, and by adding 2.40 subdivisions; 550.37, subdivision 24; 626.556, 2.41 subdivisions 10b, 10d, 10e, 10f, 11c, and by adding a 2.42 subdivision; 626.558, subdivisions 1 and 2; and 2.43 626.559, subdivision 5; Laws 1995, chapter 207, 2.44 article 8, section 41, subdivision 2; and Laws 1997, 2.45 chapter 7, article 1, section 75; proposing coding for 2.46 new law in Minnesota Statutes, chapters 13B; 62J; 144; 2.47 145; 145A; 157; 181; 256; 256B; 257; 325F; 518; and 2.48 518C; proposing coding for new law as Minnesota 2.49 Statutes, chapters 256J and 552; amending 256J.02 as 2.50 proposed in SF1, by adding a subdivision; repealing 2.51 Minnesota Statutes 1996, sections 252.32, subdivision 2.52 4; 256.026; 256.74; 256.979, subdivision 9; 256B.057, 2.53 subdivisions 2a and 2b; 256B.0625, subdivision 13b; 2.54 256B.501, subdivision 5c; 256F.05, subdivisions 5 and 2.55 7; 469.154, subdivision 6; 518.5511, subdivisions 5, 2.56 6, 7, 8, and 9; 518.611; 518.613; 518.645; 518C.502; 2.57 518C.9011; and 609.375, subdivisions 3, 4, and 6. 2.58 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.59 ARTICLE 1 2.60 APPROPRIATIONS 2.61 Section 1. [HEALTH AND HUMAN SERVICES APPROPRIATIONS.] 2.62 The sums shown in the columns marked "APPROPRIATIONS" are 2.63 appropriated from the general fund, or any other fund named, to 2.64 the agencies and for the purposes specified in the following 3.1 sections of this article, to be available for the fiscal years 3.2 indicated for each purpose. The figures "1998" and "1999" where 3.3 used in this article, mean that the appropriation or 3.4 appropriations listed under them are available for the fiscal 3.5 year ending June 30, 1998, or June 30, 1999, respectively. 3.6 Where a dollar amount appears in parentheses, it means a 3.7 reduction of an appropriation. 3.8 SUMMARY BY FUND 3.9 APPROPRIATIONS BIENNIAL 3.10 1998 1999 TOTAL 3.11 General $2,548,012,000 $2,739,095,000 $5,287,107,000 3.12 Health Care 3.13 Access 13,700,000 -0- 13,700,000 3.14 State Government 3.15 Special Revenue 32,535,000 34,414,000 66,949,000 3.16 Metropolitan 3.17 Landfill Contingency 3.18 Action Fund 193,000 193,000 386,000 3.19 Minnesota Resources 150,000 -0- 150,000 3.20 Trunk Highway 1,652,000 1,678,000 3,330,000 3.21 TOTAL 2,596,242,000 2,775,380,000 5,371,622,000 3.22 APPROPRIATIONS 3.23 Available for the Year 3.24 Ending June 30 3.25 1998 1999 3.26 Sec. 2. COMMISSIONER OF 3.27 HUMAN SERVICES 3.28 Subdivision 1. Total 3.29 Appropriation 2,479,087,000 2,656,517,000 3.30 Summary by Fund 3.31 General 2,464,934,000 2,656,055,000 3.32 Health Care 3.33 Access 13,700,000 -0- 3.34 State Government 3.35 Special Revenue 453,000 462,000 3.36 Subd. 2. Agency Management 3.37 General 25,711,000 25,131,000 3.38 Health Care 3.39 Access -0- -0- 3.40 State Government 3.41 Special Revenue 342,000 350,000 3.42 The amounts that may be spent from the 3.43 appropriation for each purpose are as 3.44 follows: 4.1 (a) Financial Operations 4.2 General 8,073,000 7,255,000 4.3 Health Care 4.4 Access -0- -0- 4.5 [RECEIPTS FOR SYSTEMS PROJECTS.] 4.6 Appropriations and federal receipts for 4.7 information system projects for MAXIS, 4.8 electronic benefit system, social 4.9 services information system, child 4.10 support enforcement, and Minnesota 4.11 medicaid information system (MMIS II) 4.12 must be deposited in the state system 4.13 account authorized in Minnesota 4.14 Statutes, section 256.014. Money 4.15 appropriated for computer projects 4.16 approved by the information policy 4.17 office, funded by the legislature, and 4.18 approved by the commissioner of finance 4.19 may be transferred from one project to 4.20 another and from development to 4.21 operations as the commissioner of human 4.22 services considers necessary. Any 4.23 unexpended balance in the appropriation 4.24 for these projects does not cancel but 4.25 is available for ongoing development 4.26 and operations. 4.27 (b) Legal & Regulation Operations 4.28 General 6,158,000 6,146,000 4.29 Health Care 4.30 Access -0- -0- 4.31 State Government 4.32 Special Revenue 342,000 350,000 4.33 [CHILD CARE LICENSING; FIRE MARSHALL 4.34 ASSISTANCE.] Of this amount, $200,000 4.35 for the biennium is for the 4.36 commissioner to add two deputy state 4.37 fire marshall positions in the 4.38 licensing division. These positions 4.39 are to improve the speed of licensing 4.40 child care programs, to provide 4.41 technical assistance to applicants and 4.42 providers regarding fire safety, and to 4.43 improve communication between licensing 4.44 staff and fire officials. The state 4.45 fire marshall shall train and supervise 4.46 the positions. The state fire marshall 4.47 and the department shall develop an 4.48 interagency agreement outlining the 4.49 responsibilities and authorities for 4.50 these positions, and continuation of 4.51 cooperation to inspect programs that 4.52 exceed the resources of these two 4.53 positions. Unexpended funds for fiscal 4.54 year 1998 do not cancel but are 4.55 available to the commissioner for these 4.56 purposes for fiscal year 1999. 4.57 (c) Management Operations 4.58 General 11,480,000 11,730,000 4.59 Health Care 4.60 Access -0- -0- 5.1 [COMMUNICATION COSTS.] The commissioner 5.2 shall continue to operate the 5.3 department of human services 5.4 communication systems account 5.5 established in Laws 1993, First Special 5.6 Session chapter 1, article 1, section 5.7 2, subdivision 2, to manage shared 5.8 communication costs necessary for the 5.9 operation of the programs the 5.10 commissioner supervises. A 5.11 communications account may also be 5.12 established for each regional treatment 5.13 center which operates communication 5.14 systems. Each account shall be used to 5.15 manage shared communication costs 5.16 necessary for the operation of programs 5.17 the commissioner supervises. The 5.18 commissioner may distribute the costs 5.19 of operating and maintaining 5.20 communication systems to participants 5.21 in a manner that reflects actual 5.22 usage. Costs may include acquisition, 5.23 licensing, insurance, maintenance, 5.24 repair, staff time, and other costs as 5.25 determined by the commissioner. 5.26 Nonprofit organizations and state, 5.27 county, and local government agencies 5.28 involved in the operation of programs 5.29 the commissioner supervises may 5.30 participate in the use of the 5.31 department's communication technology 5.32 and share in the cost of operation. 5.33 The commissioner may accept on behalf 5.34 of the state any gift, bequest, devise, 5.35 or personal property of any kind, or 5.36 money tendered to the state for any 5.37 lawful purpose pertaining to the 5.38 communication activities of the 5.39 department. Any money received for 5.40 this purpose must be deposited in the 5.41 department of human services 5.42 communication systems accounts. Money 5.43 collected by the commissioner for the 5.44 use of communication systems must be 5.45 deposited in the state communication 5.46 systems account and is appropriated to 5.47 the commissioner for purposes of this 5.48 section. 5.49 [ISSUANCE OPERATIONS CENTER.] Payments 5.50 to the commissioner from other 5.51 governmental units and private 5.52 enterprises for (1) services performed 5.53 by the issuance operations center, or 5.54 (2) reports generated by the payment 5.55 and eligibility systems must be 5.56 deposited in the state systems account 5.57 authorized in Minnesota Statutes, 5.58 section 256.014. These payments are 5.59 appropriated to the commissioner for 5.60 the operation of the issuance center or 5.61 system, in accordance with Minnesota 5.62 Statutes, section 256.014. 5.63 Subd. 3. Children's Grants 5.64 General 38,027,000 40,527,000 5.65 [GRANT TO PROMOTE COMPLIANCE WITH 5.66 INDIAN CHILD WELFARE ACT.] Of this 6.1 appropriation, $90,000 each year is for 6.2 the commissioner to provide grants 6.3 according to Minnesota Statutes, 6.4 section 257.3571, subdivision 2a, to 6.5 the Indian child welfare defense 6.6 corporation to promote statewide 6.7 compliance with the Indian Child 6.8 Welfare Act. 6.9 [CHILDREN'S MENTAL HEALTH.] Of this 6.10 appropriation, $500,000 in fiscal year 6.11 1998 and $1,000,000 in fiscal year 1999 6.12 is for the commissioner to award grants 6.13 to counties for children's mental 6.14 health services. These grants may be 6.15 used to provide any of the following 6.16 services specified in Minnesota 6.17 Statutes, section 245.4871; family 6.18 community support services under 6.19 subdivision 17; day treatment services 6.20 under subdivision 10; case management 6.21 services under subdivision 3; 6.22 professional home-based family 6.23 treatment under subdivision 31; and 6.24 outpatient services under subdivision 6.25 29. Grant funds must be used to 6.26 provide appropriate personnel and 6.27 services according to an individual 6.28 family community support plan under 6.29 Minnesota Statutes, section 245.4882, 6.30 subdivision 4, that must be developed, 6.31 evaluated, and changed where needed, 6.32 using a process that respects the 6.33 consumer's identified cultural 6.34 community and enhances consumer 6.35 empowerment, best interests and 6.36 outcomes which strengthens and supports 6.37 children and their families. 6.38 In awarding these grants to counties, 6.39 the commissioner shall work with the 6.40 state advisory council on mental health 6.41 to ensure that the process for awarding 6.42 funds addresses the unmet need for 6.43 services under Minnesota Statutes, 6.44 sections 245.487 to 245.4888. The 6.45 commissioner shall also ensure that 6.46 these grant funds are not used to 6.47 replace existing funds, and that these 6.48 grant funds are used to enhance service 6.49 capacity at the community level 6.50 consistent with Minnesota Statutes, 6.51 sections 245.487 to 245.4888. 6.52 Subd. 4. Children's Services Management 6.53 General 3,161,000 3,192,000 6.54 Subd. 5. Basic Health Care Grants 6.55 Summary by Fund 6.56 General 820,289,000 938,836,000 6.57 Health Care 6.58 Access -0- -0- 6.59 The amounts that may be spent from this 6.60 appropriation for each purpose are as 6.61 follows: 7.1 (a) Minnesota Care Grants 7.2 Health Care 7.3 Access -0- -0- 7.4 (b) MA Basic Health Care Grants- 7.5 Families and Children 7.6 General 314,587,000 364,152,000 7.7 (c) MA Basic Health Care Grants- 7.8 Elderly & Disabled 7.9 General 335,493,000 403,053,000 7.10 [PUBLIC HEALTH NURSE ASSESSMENT.] The 7.11 reimbursement for public health nurse 7.12 visits relating to the provision of 7.13 personal care services under Minnesota 7.14 Statutes, sections 256B.0625, 7.15 subdivision 19a, and 256B.0627, is 7.16 $204.36 for the initial assessment 7.17 visit and $102.18 for each reassessment 7.18 visit. 7.19 [SURCHARGE COMPLIANCE.] In the event 7.20 that federal financial participation in 7.21 the Minnesota medical assistance 7.22 program is reduced as a result of a 7.23 determination that Minnesota is out of 7.24 compliance with Public Law Number 7.25 102-234 or its implementing regulations 7.26 or with any other federal law designed 7.27 to restrict provider tax programs or 7.28 intergovernmental transfers, the 7.29 commissioner shall appeal the 7.30 determination to the fullest extent 7.31 permitted by law and may ratably reduce 7.32 all medical assistance and general 7.33 assistance medical care payments to 7.34 providers other than the state of 7.35 Minnesota in order to eliminate any 7.36 shortfall resulting from the reduced 7.37 federal funding. Any amount later 7.38 recovered through the appeals process 7.39 shall be used to reimburse providers 7.40 for any ratable reductions taken. 7.41 (d) General Assistance Medical Care 7.42 General 168,737,000 168,444,000 7.43 Health Care 7.44 Access -0- -0- 7.45 [GAMC AND HEALTH CARE ACCESS FUND.] The 7.46 appropriation from the health care 7.47 access fund for fiscal year 1998 shall 7.48 be used for general assistance medical 7.49 care expenditures for: (1) adults with 7.50 dependent children under 21 whose gross 7.51 family income is equal to or less than 7.52 275 percent of the federal poverty 7.53 guidelines; and (2) adults without 7.54 children with earned income and whose 7.55 family gross income is between 75 7.56 percent of the federal poverty 7.57 guidelines and the amount set by 7.58 Minnesota Statutes, section 256.9354, 7.59 subdivision 5. 8.1 [TUBERCULOSIS COST OF CARE.] Of the 8.2 general fund appropriation, $89,000 for 8.3 the biennium is for the cost of care 8.4 that is required to be paid by the 8.5 commissioner under Minnesota Statutes, 8.6 section 144.4872, to diagnose or treat 8.7 tuberculosis carriers. 8.8 Subd. 6. Basic Health Care Management 8.9 General 23,977,000 24,583,000 8.10 Health Care 8.11 Access -0- -0- 8.12 [CONSUMER-OWNED HOUSING REVOLVING 8.13 ACCOUNT.] Effective the day following 8.14 final enactment, for the fiscal year 8.15 ending June 30, 1997, the commissioner 8.16 of human services may transfer $25,000 8.17 of the appropriation for basic health 8.18 care management to the commissioner of 8.19 the Minnesota housing finance agency to 8.20 establish an account to finance the 8.21 underwriting requirements of the 8.22 federal national mortgage association 8.23 pilot program for persons with 8.24 disabilities. Any unexpended balance 8.25 in this account does not cancel, but is 8.26 available to the commissioner of the 8.27 Minnesota housing finance agency for 8.28 the ongoing purposes of the account. 8.29 (a) Health Care Policy Administration 8.30 General 4,281,000 4,316,000 8.31 Health Care 8.32 Access -0- -0- 8.33 [CONSUMER SATISFACTION SURVEY.] Any 8.34 federal matching money received through 8.35 the medical assistance program for the 8.36 consumer satisfaction survey is 8.37 appropriated to the commissioner for 8.38 this purpose. The commissioner may 8.39 expend the federal money received for 8.40 the consumer satisfaction survey in 8.41 either year of the biennium. 8.42 (b) Health Care Operations 8.43 General 19,696,000 20,267,000 8.44 Health Care 8.45 Access -0- -0- 8.46 [PREPAID MEDICAL PROGRAMS.] The 8.47 nonfederal share of the prepaid medical 8.48 assistance program funds, which are 8.49 appropriated to fund county managed 8.50 care advocacy and enrollment operating 8.51 costs, shall be disbursed as grants 8.52 using either a reimbursement or block 8.53 grant mechanism. This appropriation may 8.54 also be transferred between grants and 8.55 a nongrant mechanism, and between 8.56 grants and nongrant administration 8.57 costs, with the approval of the 8.58 commissioner of finance. 9.1 [SYSTEMS CONTINUITY.] In the event of 9.2 disruption of technical systems or 9.3 computer operations, the commissioner 9.4 of human services may use available 9.5 grant appropriations to ensure 9.6 continuity of payments for maintaining 9.7 the health, safety, and well-being of 9.8 clients served by programs administered 9.9 by the department of human services. 9.10 Grant funds must be used in a manner 9.11 consistent with the original intent of 9.12 the appropriation. 9.13 Subd. 7. State-Operated Services 9.14 General 208,471,000 205,106,000 9.15 The amounts that may be spent from this 9.16 appropriation for each purpose are as 9.17 follows: 9.18 (a) RTC Facilities 9.19 General 193,738,000 189,050,000 9.20 [MITIGATION RELATED TO DD DOWNSIZING 9.21 AND MH PILOTS.] Money appropriated to 9.22 finance mitigation expenses related to 9.23 the downsizing of regional treatment 9.24 center developmental disabilities 9.25 programs and the establishment of 9.26 mental health pilot projects may be 9.27 transferred between fiscal years within 9.28 the biennium. 9.29 [FUNDING FOR GRAVE MARKERS.] Of this 9.30 appropriation, $200,000 for the 9.31 biennium ending June 30, 1999, is for 9.32 the commissioner to fund markers with 9.33 the names of individuals whose graves 9.34 are located at regional treatment 9.35 centers. This appropriation is 9.36 available only after all reasonable 9.37 efforts have been made to acquire funds 9.38 from private sources to fund the 9.39 markers, and after the private funds 9.40 collected, if any, have been exhausted. 9.41 [RTC CHEMICAL DEPENDENCY PROGRAMS.] 9.42 When the operations of the regional 9.43 treatment center chemical dependency 9.44 fund created in Minnesota Statutes, 9.45 section 246.18, subdivision 2, are 9.46 impeded by projected cash deficiencies 9.47 resulting from delays in the receipt of 9.48 grants, dedicated income, or other 9.49 similar receivables, and when the 9.50 deficiencies would be corrected within 9.51 the budget period involved, the 9.52 commissioner of finance may transfer 9.53 general fund cash reserves into this 9.54 account as necessary to meet cash 9.55 demands. The cash flow transfers must 9.56 be returned to the general fund in the 9.57 fiscal year that the transfer was 9.58 made. Any interest earned on general 9.59 fund cash flow transfers accrues to the 9.60 general fund and not the regional 9.61 treatment center chemical dependency 9.62 fund. 10.1 [RTC PILOT PROJECT.] The commissioner 10.2 may authorize the regional treatment 10.3 centers to enter into contracts with 10.4 health plans that provide services to 10.5 publicly funded clients to provide 10.6 services within the diagnostic 10.7 categories related to mental illness 10.8 and chemical dependency, provided that 10.9 the revenue is sufficient to cover 10.10 actual costs. Regional treatment 10.11 centers may establish revenue-based 10.12 acute care services to be provided 10.13 under these contracts, separate from 10.14 the appropriation-based services 10.15 otherwise provided at the regional 10.16 treatment center. The appropriation to 10.17 the regional treatment centers may be 10.18 used to cover start-up costs related to 10.19 these services, offset by revenue. The 10.20 commissioner, in conjunction with the 10.21 commissioner of administration, is 10.22 authorized to modify state contract 10.23 procedures that would otherwise impede 10.24 pilot projects in order for the 10.25 facility to participate in managed care 10.26 activities. The commissioner may 10.27 delegate the execution of these 10.28 contracts to the chief executive 10.29 officer of the regional treatment 10.30 center. The commissioner shall report 10.31 by January 15, 1998, to the house 10.32 health and human services and senate 10.33 health and family security committees 10.34 on pilot project development and 10.35 implementation. 10.36 [CAMBRIDGE REGIONAL HUMAN SERVICES 10.37 CENTER.] (a) The commissioner shall 10.38 maintain capacity at Cambridge regional 10.39 human services center and shall 10.40 continue to provide residential and 10.41 crisis services at Cambridge for 10.42 persons with complex behavioral and 10.43 social problems committed by the courts 10.44 from the Faribault regional center and 10.45 Cambridge regional human services 10.46 center catchment areas. Campus 10.47 programs shall operate with the aim of 10.48 facilitating the return of individuals 10.49 with clinically complex behavior and 10.50 social problems to community settings 10.51 and shall maintain sufficient support 10.52 services on campus as needed by the 10.53 programs. 10.54 (b) The commissioner shall develop and 10.55 present a plan and recommendations to 10.56 the legislature by January 15, 1998, 10.57 for the second phase of the Minnesota 10.58 extended treatment options (METO) 10.59 program at Cambridge regional human 10.60 services center to serve persons with 10.61 developmental disabilities who pose a 10.62 public risk. Phase two may increase 10.63 the on-campus program capacity of METO 10.64 by at least 36 additional beds. 10.65 [RTC RESTRUCTURING.] For purposes of 10.66 restructuring the regional treatment 10.67 centers and state nursing homes, any 10.68 regional treatment center or state 11.1 nursing home employee whose position is 11.2 to be eliminated shall be afforded the 11.3 options provided in applicable 11.4 collective bargaining agreements. All 11.5 salary and mitigation allocations from 11.6 fiscal year 1998 shall be carried 11.7 forward into fiscal year 1999. 11.8 Provided there is no conflict with any 11.9 collective bargaining agreement, any 11.10 regional treatment center or state 11.11 nursing home position reduction must 11.12 only be accomplished through 11.13 mitigation, attrition, transfer, and 11.14 other measures as provided in state or 11.15 applicable collective bargaining 11.16 agreements and in Minnesota Statutes, 11.17 section 252.50, subdivision 11, and not 11.18 through layoff. 11.19 [RTC POPULATION.] If the resident 11.20 population at the regional treatment 11.21 centers is projected to be higher than 11.22 the estimates upon which the medical 11.23 assistance forecast and budget 11.24 recommendations for the 1998-1999 11.25 biennium were based, the amount of the 11.26 medical assistance appropriation that 11.27 is attributable to the cost of services 11.28 that would have been provided as an 11.29 alternative to regional treatment 11.30 center services, including resources 11.31 for community placements and waivered 11.32 services for persons with mental 11.33 retardation and related conditions, is 11.34 transferred to the residential 11.35 facilities appropriation. 11.36 [REPAIRS AND BETTERMENTS.] The 11.37 commissioner may transfer unencumbered 11.38 appropriation balances between fiscal 11.39 years for the state residential 11.40 facilities repairs and betterments 11.41 account and special equipment. 11.42 [PROJECT LABOR.] Wages for project 11.43 labor may be paid by the commissioner 11.44 of human services out of repairs and 11.45 betterments money if the individual is 11.46 to be engaged in a construction project 11.47 or a repair project of short-term and 11.48 nonrecurring nature. Compensation for 11.49 project labor shall be based on the 11.50 prevailing wage rates, as defined in 11.51 Minnesota Statutes, section 177.42, 11.52 subdivision 6. Project laborers are 11.53 excluded from the provisions of 11.54 Minnesota Statutes, sections 43A.22 to 11.55 43A.30, and shall not be eligible for 11.56 state-paid insurance and benefits. 11.57 (b) State-Operated Community 11.58 Services - MI Adults 11.59 General 3,907,000 3,976,000 11.60 (c) State-Operated Community 11.61 Services - DD 11.62 General 10,826,000 12,080,000 11.63 Subd. 8. Continuing Care and 12.1 Community Support Grants 12.2 General 1,078,205,000 1,152,992,000 12.3 The amounts that may be spent from this 12.4 appropriation for each purpose are as 12.5 follows: 12.6 (a) Community Services Block Grants 12.7 54,203,000 54,203,000 12.8 [CSSA TRADITIONAL APPROPRIATION.] 12.9 Notwithstanding Minnesota Statutes, 12.10 section 256E.06, subdivisions 1 and 2, 12.11 the appropriations available under that 12.12 section in fiscal years 1998 and 1999 12.13 must be distributed to each county 12.14 proportionately to the aid received by 12.15 the county in calendar year 1996. The 12.16 commissioner, in consultation with 12.17 counties, shall study the formula 12.18 limitations in subdivision 2 of that 12.19 section, and report findings and any 12.20 recommendations for revision of the 12.21 CSSA formula and its formula limitation 12.22 provisions to the legislature by 12.23 January 15, 1998. 12.24 (b) Consumer Support Grants 12.25 1,757,000 1,757,000 12.26 (c) Aging Adult Service Grants 12.27 8,260,000 8,263,000 12.28 [OMBUDSMAN FOR OLDER MINNESOTANS.] Of 12.29 this appropriation, $225,000 each year 12.30 is for the board on aging's ombudsman 12.31 for older Minnesotans to expand its 12.32 activities relating to home care 12.33 services and other non-institutional 12.34 services, and to develop and implement 12.35 a continuing education program for 12.36 ombudsman volunteers. 12.37 [HEALTH CARE CONSUMER ASSISTANCE 12.38 GRANTS.] (a) Of this appropriation, 12.39 $125,000 in fiscal year 1998 and 12.40 $125,000 in fiscal year 1999 is to the 12.41 commissioner for the board on aging to 12.42 award grants for health insurance 12.43 counseling and assistance to the area 12.44 agencies on aging. 12.45 (b) The board shall explore 12.46 opportunities for obtaining alternative 12.47 funding from nonstate sources, 12.48 including contributions from 12.49 individuals seeking health insurance 12.50 counseling services. 12.51 [LIVING-AT-HOME/BLOCK NURSE PROGRAMS.] 12.52 Of this appropriation, $620,000 each 12.53 fiscal year is for the commissioner to 12.54 provide funding to 31 additional 12.55 living-at-home/block nurse programs; 12.56 $70,000 for the biennium is for the 12.57 commissioner to increase funding for 12.58 certain living-at-home/block nurse 13.1 programs so that funding for all 13.2 programs is at the same level for each 13.3 fiscal year; and $60,000 each fiscal 13.4 year is for the commissioner to provide 13.5 additional contract funding for the 13.6 organization awarded the contract for 13.7 the living-at-home/block nurse program. 13.8 [COUNTY MAINTENANCE; MEALS; AGING.] The 13.9 supplemental funding for nutrition 13.10 programs serving counties where 13.11 congregate and home-delivered meals 13.12 were locally financed prior to 13.13 participation in the nutrition program 13.14 of the Older Americans Act shall be 13.15 awarded at no less than the same levels 13.16 as in fiscal year 1997. 13.17 (d) Deaf and Hard-of-Hearing 13.18 Services Grants 13.19 1,599,000 1,549,000 13.20 [ASSISTANCE DOGS.] Of this 13.21 appropriation, $50,000 for the biennium 13.22 is for the commissioner to provide 13.23 grants to Minnesota nonprofit 13.24 organizations that train or provide 13.25 assistance dogs for persons with 13.26 disabilities. 13.27 [GRANT FOR SERVICES TO DEAF-BLIND 13.28 CHILDREN AND PERSONS.] Of this 13.29 appropriation, $200,000 for the 13.30 biennium is for a grant to an 13.31 organization that provides services to 13.32 deaf-blind persons. The grant must be 13.33 used to provide additional services to 13.34 deaf-blind children and their 13.35 families. Such services may include 13.36 providing intervenors to assist 13.37 deaf-blind children in participating in 13.38 their communities, and family education 13.39 specialists to teach siblings and 13.40 parents skills to support the 13.41 deaf-blind child in the family. The 13.42 commissioner shall use a 13.43 request-for-proposal process to award 13.44 the grants in this paragraph. 13.45 Of this appropriation, $200,000 for the 13.46 biennium is for a grant to an 13.47 organization that provides services to 13.48 deaf-blind persons. The grant must be 13.49 used to provide assistance to 13.50 deaf-blind persons who are working 13.51 towards establishing and maintaining 13.52 independence. The commissioner shall 13.53 use a request-for-proposal process to 13.54 award the grants in this paragraph. 13.55 [GRANT FOR SERVICES TO DEAF PERSONS 13.56 WITH MENTAL ILLNESS.] Of this 13.57 appropriation, $75,000 each year is for 13.58 a grant to a nonprofit agency that 13.59 serves deaf and hard-of-hearing adults 13.60 with mental illness through residential 13.61 programs and supported housing outreach 13.62 activities. The grant must be used to 13.63 expand community support services for 13.64 deaf and hard-of-hearing adults with 14.1 mental illness who use or wish to use 14.2 sign language as their primary means of 14.3 communication. 14.4 [ASSESSMENTS FOR DEAF, HARD-OF-HEARING 14.5 AND DEAF-BLIND CHILDREN.] Of this 14.6 appropriation, $200,000 each year is 14.7 for the commissioner to establish a 14.8 grant program for deaf, hard-of-hearing 14.9 and deaf-blind children in the state. 14.10 The grant program shall be used to 14.11 provide specialized statewide 14.12 psychological and social assessments, 14.13 family assessments, and school and 14.14 family consultation and training. 14.15 Services provided through this program 14.16 must be provided in cooperation with 14.17 the Minnesota resource center; the 14.18 department of children, families, and 14.19 learning; the St. Paul-Ramsey health 14.20 and wellness program serving deaf and 14.21 hard-of-hearing people; and greater 14.22 Minnesota community mental health 14.23 centers. 14.24 (e) Mental Health Grants 14.25 47,603,000 48,681,000 14.26 [ADOLESCENT COMPULSIVE GAMBLING GRANT.] 14.27 $125,000 for fiscal year 1998 and 14.28 $125,000 for fiscal year 1999 shall be 14.29 transferred by the director of the 14.30 lottery from the lottery prize fund 14.31 created under Minnesota Statutes, 14.32 section 349A.10, subdivision 2, to the 14.33 general fund. $125,000 for fiscal year 14.34 1998 and $125,000 for fiscal year 1999 14.35 is appropriated from the general fund 14.36 to the commissioner for the purposes of 14.37 a grant to a compulsive gambling 14.38 council located in St. Louis county for 14.39 a statewide compulsive gambling 14.40 prevention and education project for 14.41 adolescents. 14.42 [WOMEN'S MENTAL HEALTH CRISIS SERVICES 14.43 PILOT.] Of this appropriation, $250,000 14.44 in fiscal year 1998 is for the 14.45 commissioner to develop a one-year 14.46 pilot project community-based crisis 14.47 center for women who are experiencing a 14.48 mental health crisis as a result of 14.49 childhood physical or sexual abuse. 14.50 The commissioner shall provide a grant 14.51 to Hennepin county to contract with a 14.52 four-bed adult foster care facility to 14.53 provide these services. The 14.54 commissioner shall apply to the federal 14.55 health care financing administration 14.56 for all necessary waivers of the 14.57 medical assistance requirements for 14.58 funding of the mental health services 14.59 so that the services provided through 14.60 the pilot project may be reimbursed by 14.61 medical assistance, effective July 1, 14.62 1998, or upon receipt of federal 14.63 approval, whichever occurs first. 14.64 (f) Developmental Disabilities 14.65 Support Grants 15.1 6,278,000 6,228,000 15.2 [EPILEPSY LIVING SKILLS.] Of this 15.3 appropriation, $60,000 each year is for 15.4 the purposes of providing increased 15.5 funding for the living skills training 15.6 program for persons with intractable 15.7 epilepsy who need assistance in the 15.8 transition to independent living. This 15.9 amount must be included in the base 15.10 amount for this program. 15.11 (g) Medical Assistance Long-Term 15.12 Care Waivers and Home Care 15.13 237,254,000 273,979,000 15.14 [COUNTY WAIVERED SERVICES RESERVE.] 15.15 Notwithstanding the provisions of 15.16 Minnesota Statutes, section 256B.092, 15.17 subdivision 4, and Minnesota Rules, 15.18 part 9525.1830, subpart 2, the 15.19 commissioner may approve written 15.20 procedures and criteria for the 15.21 allocation of home- and community-based 15.22 waivered services funding for persons 15.23 with mental retardation or related 15.24 conditions which enables a county to 15.25 maintain a reserve resource account. 15.26 The reserve resource account may not 15.27 exceed five percent of the county 15.28 agency's total annual allocation of 15.29 home- and community-based waivered 15.30 services funds. The reserve may be 15.31 utilized to ensure the county's ability 15.32 to meet the changing needs of current 15.33 recipients, to ensure the health and 15.34 safety needs of current recipients, or 15.35 to provide short-term emergency 15.36 intervention care to eligible waiver 15.37 recipients. 15.38 [REIMBURSEMENT INCREASES.] Effective 15.39 for services rendered on or after July 15.40 1, 1997, the commissioner shall 15.41 increase reimbursement rates by five 15.42 percent for home- and community-based 15.43 waiver services for persons with mental 15.44 retardation or related conditions under 15.45 Minnesota Statutes, section 256B.501; 15.46 home- and community-based waiver 15.47 services for the elderly under 15.48 Minnesota Statutes, section 256B.0915; 15.49 community alternatives for disabled 15.50 individuals waiver services under 15.51 Minnesota Statutes, section 256B.49; 15.52 community alternative care waiver 15.53 services under Minnesota Statutes, 15.54 section 256B.49; traumatic brain injury 15.55 waiver services under Minnesota 15.56 Statutes, section 256B.49; nursing 15.57 services and home health services under 15.58 Minnesota Statutes, section 256B.0625, 15.59 subdivision 6a; personal care services 15.60 and nursing supervision of personal 15.61 care services under Minnesota Statutes, 15.62 section 256B.0625, subdivision 19a; 15.63 private duty nursing services under 15.64 Minnesota Statutes, section 256B.0625, 15.65 subdivision 7; day training and 16.1 habilitation services for adults with 16.2 mental retardation or related 16.3 conditions under Minnesota Statutes, 16.4 sections 252.40 to 252.47; physical 16.5 therapy services under Minnesota 16.6 Statutes, section 256B.0625, 16.7 subdivision 8, and 256D.03, subdivision 16.8 4; occupational therapy services under 16.9 Minnesota Statutes, sections 256B.0625, 16.10 subdivision 8a, and 256D.03, 16.11 subdivision 4; speech-language therapy 16.12 services under Minnesota Statutes, 16.13 section 256D.03, subdivision 4, and 16.14 Minnesota Rules, part 9505.0390; 16.15 respiratory therapy services under 16.16 Minnesota Statutes, section 256D.03, 16.17 subdivision 4, and Minnesota Rules, 16.18 part 9505.0295; dental services under 16.19 Minnesota Statutes, sections 256B.0625, 16.20 subdivision 9, and 256D.03, subdivision 16.21 4; alternative care services under 16.22 Minnesota Statutes, section 256B.0913; 16.23 adult residential program grants under 16.24 Minnesota Rules, parts 9535.2000 to 16.25 9535.3000; adult and family community 16.26 support grants under Minnesota Rules, 16.27 parts 9535.1700 to 9535.1760; and 16.28 semi-independent living services under 16.29 Minnesota Statutes, section 252.275, 16.30 and including SILS funding under county 16.31 social serivces grants formerly funded 16.32 under Minnesota Statutes, chapter 16.33 256I. The commissioner shall also 16.34 increase prepaid medical assistance 16.35 program capitation rates as appropriate 16.36 to reflect the rate increases in this 16.37 paragraph. The money for the 16.38 reimbursement increases under this 16.39 paragraph shall be appropriated from 16.40 the budget reserve account in the 16.41 general fund. These funds are to be 16.42 used solely for salary increases to 16.43 direct care staff. 16.44 (h) Medical Assistance Long-Term 16.45 Care Facilities 16.46 570,518,000 593,797,000 16.47 [ICF/MR AND NURSING FACILITY 16.48 INFLATION.] The commissioner of human 16.49 services shall grant inflation 16.50 adjustments for nursing facilities with 16.51 rate years beginning during the 16.52 biennium according to Minnesota 16.53 Statutes, section 256B.431, and shall 16.54 grant inflation adjustments for 16.55 intermediate care facilities for 16.56 persons with mental retardation or 16.57 related conditions with rate years 16.58 beginning during the biennium according 16.59 to Minnesota Statutes, section 256B.501. 16.60 [ICF/MR RATE EXEMPTIONS.] For the rate 16.61 year beginning October 1, 1997, the 16.62 commissioner shall exempt ICF/MR 16.63 facilities from reductions to the 16.64 payment rates under Minnesota Statutes, 16.65 section 256B.501, subdivision 5b, 16.66 paragraph (d), clause (6), if the 16.67 facility: (1) has had a settle-up 17.1 payment rate established in the 17.2 reporting year preceding the rate year 17.3 for a one-time rate adjustment; (2) is 17.4 a newly established facility; (3) is an 17.5 A to B conversion project under the 17.6 payment rule; (4) has a payment rate 17.7 subject to a community conversion 17.8 project under Minnesota Statutes, 17.9 section 252.292; (5) has a payment rate 17.10 established under Minnesota Statutes, 17.11 section 245A.12 or 245A.13; or (6) is a 17.12 facility created by the relocation of 17.13 more than 25 percent of the capacity of 17.14 a related facility during the reporting 17.15 year. 17.16 (i) Alternative Care Grants 17.17 General 48,610,000 53,623,000 17.18 [PREADMISSION SCREENING TRANSFER.] 17.19 Effective the day following final 17.20 enactment, up to $40,000 of the 17.21 appropriation for preadmission 17.22 screening and alternative care for 17.23 fiscal year 1997 may be transferred to 17.24 the health care administration account 17.25 to pay the state's share of county 17.26 claims for conducting nursing home 17.27 assessments for persons with mental 17.28 illness or mental retardation as 17.29 required by Public Law Number 100-203. 17.30 [ALTERNATIVE CARE TRANSFER.] Any money 17.31 allocated to the alternative care 17.32 program that is not spent for the 17.33 purposes indicated does not cancel but 17.34 shall be transferred to the medical 17.35 assistance account. 17.36 [PREADMISSION SCREENING AMOUNT.] The 17.37 preadmission screening payment to all 17.38 counties shall continue at the payment 17.39 amount in effect for fiscal year 1997. 17.40 [PAS/AC APPROPRIATION.] The 17.41 commissioner may expend the money 17.42 appropriated for preadmission screening 17.43 and the alternative care program for 17.44 these purposes in either year of the 17.45 biennium. 17.46 (j) Group Residential Housing 17.47 General 62,115,000 69,276,000 17.48 (k) Chemical Dependency 17.49 Entitlement Grants 17.50 General 35,643,000 37,271,000 17.51 [CHEMICAL DEPENDENCY FUNDS TRANSFER.] 17.52 $11,340,000 from the consolidated 17.53 chemical dependency general reserve 17.54 fund available in fiscal year 1998 is 17.55 transferred to the general fund. 17.56 (l) Chemical Dependency 17.57 Nonentitlement Grants 17.58 General 4,365,000 4,365,000 18.1 [DETOXIFICATION TRANSPORTATION.] Any 18.2 amounts remaining after detoxification 18.3 transportation funds are allocated for 18.4 fiscal year 1997 under Minnesota 18.5 Statutes, section 254A.17, subdivision 18.6 3, do not cancel, but must be 18.7 reallocated to counties in proportion 18.8 to their unmet need. This provision is 18.9 effective the day following final 18.10 enactment. 18.11 Subd. 9. Continuing Care and 18.12 Community Support Management 18.13 General 20,515,000 21,283,000 18.14 State Government 18.15 Special Revenue 111,000 112,000 18.16 [QUALITY ASSURANCE PILOT PROJECT.] (a) 18.17 Of this appropriation, $114,200 each 18.18 year is for the commissioner to 18.19 transfer to the quality assurance 18.20 commission for the purposes of 18.21 Minnesota Statutes, section 256B.0951; 18.22 $10,000 each year is for the 18.23 commissioner to contract with an 18.24 independent entity to conduct a 18.25 financial review under Minnesota 18.26 Statutes, section 256B.0955, paragraph 18.27 (e); and $5,000 each year is for the 18.28 commissioner to establish and implement 18.29 an ongoing evaluation process under 18.30 Minnesota Statutes, section 256B.0955, 18.31 paragraph (d). 18.32 (b) Of this appropriation, $210,800 in 18.33 fiscal year 1998 and $241,800 in fiscal 18.34 year 1999 is for the commissioner to 18.35 provide grants to counties 18.36 participating in the alternative 18.37 quality assurance licensing system 18.38 under Minnesota Statutes, section 18.39 256B.0953. This appropriation shall be 18.40 transferred to the counties that choose 18.41 by January 15, 1998 to participate in 18.42 the alternative licensing system 18.43 beginning July 1, 1998. Each 18.44 participating county shall receive a 18.45 pro rata share of this appropriation, 18.46 based upon the county's calendar year 18.47 1997 case management caseload for 18.48 persons with developmental disabilities. 18.49 [JOINT-PURCHASER DEMO PROJECT 18.50 START-UP.] Of this appropriation, 18.51 $80,000 for the biennium ending June 18.52 30, 1999, is for a grant to the Goodhue 18.53 and Wabasha public health board to be 18.54 used for the development and start-up 18.55 operational costs for a joint purchaser 18.56 demonstration project described in Laws 18.57 1995, chapter 207, article 6, section 18.58 119, in Goodhue and Wabasha counties. 18.59 This is a one-time appropriation and 18.60 shall not become part of the base for 18.61 the 2000-2001 biennial budget. 18.62 [PILOT PROJECT FOR ASSISTED LIVING 18.63 SERVICES FOR SENIOR CITIZENS IN PUBLIC 18.64 HOUSING.] Of this appropriation, 19.1 $50,000 in fiscal year 1998 is for a 19.2 pilot project to provide assisted 19.3 living services for unserved and 19.4 underserved frail elderly and disabled 19.5 persons with a focus on those who 19.6 experience language and cultural 19.7 barriers. The project shall be 19.8 designed to offer frail elderly persons 19.9 an opportunity to receive 19.10 community-based support services in a 19.11 public housing setting to enable them 19.12 to remain in their homes. The project 19.13 shall also serve younger disabled 19.14 persons on waiver programs who live in 19.15 public housing and would otherwise be 19.16 in nursing homes. The commissioner 19.17 shall provide pilot project funding to 19.18 Hennepin county to contract with the 19.19 Korean service center at the Cedars 19.20 high-rises. The center shall agree to 19.21 do the following: 19.22 (1) facilitate or provide needed 19.23 community support services while taking 19.24 advantage of current local, state, and 19.25 federal programs that provide services 19.26 to senior citizens and handicapped 19.27 individuals; 19.28 (2) negotiate appropriate agreements 19.29 with the Minneapolis public housing 19.30 authority and Hennepin county; 19.31 (3) ensure that all participants are 19.32 screened for eligibility for services 19.33 by Hennepin county; 19.34 (4) become a licensed home care service 19.35 provider or subcontract with a licensed 19.36 provider to deliver needed services; 19.37 (5) contract for meals to be provided 19.38 through its congregate dining program; 19.39 and 19.40 (6) form other partnerships as needed 19.41 to ensure the development of a 19.42 successful, culturally sensitive 19.43 program for meeting the needs of 19.44 Korean, Southeast Asian, and other 19.45 frail elderly and disabled persons 19.46 living in public housing in southeast 19.47 Minneapolis. 19.48 The grantee must have the project 19.49 evaluated by an outside evaluator, 19.50 based on measurement standards 19.51 developed by the commissioner. The 19.52 grantee must submit the evaluation to 19.53 the commissioner no later than December 19.54 15, 1999, and the commissioner must 19.55 submit the evaluation with 19.56 recommendations on the project's 19.57 continuation and expansion by January 19.58 15, 2000. 19.59 [TRANSIT SERVICE SUBSIDIES.] The 19.60 commissioner shall examine 19.61 circumstances where providers receive 19.62 state or federal funds for transit 19.63 service operating subsidies or to 20.1 purchase transit equipment, and receive 20.2 medical assistance reimbursement for 20.3 medical transportation services in 20.4 amounts greater than the fee charged by 20.5 the provider to persons from whom 20.6 services are not reimbursed by medical 20.7 assistance. 20.8 The commissioner's analysis may involve 20.9 assistance from the commissioner of the 20.10 department of health. 20.11 The commissioner shall submit a report 20.12 on the study to the legislature by 20.13 January 15, 1998. 20.14 Subd. 10. Economic Support Grants 20.15 General 211,090,000 211,036,000 20.16 [GIFTS.] Notwithstanding any other law 20.17 to the contrary, the commissioner may 20.18 accept on behalf of the state 20.19 additional funding from sources other 20.20 than state funds for the purpose of 20.21 financing assistance program grants 20.22 costs or nongrant administrative 20.23 costs. All such additional funding is 20.24 appropriated to the commissioner for 20.25 use as designated by the grantee of 20.26 funding. 20.27 The amounts that may be spent from this 20.28 appropriation for each purpose are as 20.29 follows: 20.30 (a) Assistance to Families Grants 20.31 General 89,518,000 110,688,000 20.32 (b) Assistance to 20.33 Families - County 20.34 Management -0- -0- 20.35 (c) Work Grants 20.36 General 5,878,000 5,884,000 20.37 (d) Minnesota Family 20.38 Investment Plan 20.39 General 27,433,000 5,037,000 20.40 [WELFARE REFORM CARRYOVER.] Unexpended 20.41 grant funds for the statewide 20.42 implementation of the Minnesota family 20.43 investment program and employment and 20.44 training programs and for the work 20.45 first and work focused pilot programs 20.46 appropriated in fiscal year 1998 for 20.47 the implementation of welfare reform 20.48 initiatives do not cancel and are 20.49 available to the commissioner for these 20.50 purposes in fiscal year 1999. 20.51 (e) Aid to Families With 20.52 Dependent Children 20.53 General 619,000 -0- 20.54 [AFDC SUPPLEMENTARY GRANTS.] Of the 21.1 appropriation for aid to families with 21.2 dependent children, the commissioner 21.3 shall provide supplementary grants not 21.4 to exceed $200,000 a year for aid to 21.5 families with dependent children until 21.6 the AFDC program no longer exists. The 21.7 commissioner shall include the 21.8 following costs in determining the 21.9 amount of the supplementary grants: 21.10 major home repairs, repair of major 21.11 home appliances, utility recaps, 21.12 supplementary dietary needs not covered 21.13 by medical assistance, and replacements 21.14 of furnishings and essential major 21.15 appliances. 21.16 [CASH BENEFITS IN ADVANCE.] The 21.17 commissioner, with the advance approval 21.18 of the commissioner of finance, is 21.19 authorized to issue cash assistance 21.20 benefits up to three days before the 21.21 first day of each month, including 21.22 three days before the start of each 21.23 state fiscal year. Of the money 21.24 appropriated for cash assistance grants 21.25 for each fiscal year, up to three 21.26 percent of the annual state 21.27 appropriation is available to the 21.28 commissioner in the previous fiscal 21.29 year. If that amount is insufficient 21.30 for the costs incurred, an additional 21.31 amount of the appropriation as needed 21.32 may be transferred with the advance 21.33 approval of the commissioner of 21.34 finance. This paragraph is effective 21.35 the day following final enactment. 21.36 (f) Child Support Enforcement 21.37 General 5,790,000 5,372,000 21.38 [CHILD SUPPORT PAYMENT CENTER.] 21.39 Payments to the commissioner from other 21.40 governmental units, private 21.41 enterprises, and individuals for 21.42 services performed by the Child Support 21.43 Payment Center must be deposited in the 21.44 state systems account authorized in 21.45 Minnesota Statutes, section 256.014. 21.46 These payments are appropriated to the 21.47 commissioner for the operation of the 21.48 Child Support Payment Center or system, 21.49 in accordance with Minnesota Statutes, 21.50 section 256.014. 21.51 [CHILD SUPPORT ENFORCEMENT PAYMENT 21.52 CENTER RECOUPMENT ACCOUNT.] The child 21.53 support enforcement payment center is 21.54 authorized to establish an account to 21.55 cover checks issued in error or in 21.56 cases where insufficient funds are 21.57 available to pay the checks. All 21.58 recoupments against payments from the 21.59 account must be deposited in the child 21.60 support enforcement payment center 21.61 recoupment account and are appropriated 21.62 to the commissioner for the purposes of 21.63 the account. Any unexpended balance in 21.64 the account does not cancel, but is 21.65 available until expended. For the 21.66 period June 1, 1997, to June 30, 1997, 22.1 the commissioner may transfer general 22.2 fund administrative money to the child 22.3 support enforcement payment center 22.4 recoupment account to cover 22.5 underfinanced and unfunded checks 22.6 during this period only. This 22.7 paragraph is effective the day 22.8 following final enactment. 22.9 [CHILD SUPPORT ENFORCEMENT CARRYOVER.] 22.10 Unexpended funds for child support 22.11 enforcement grants and county 22.12 performance incentives for fiscal year 22.13 1998 do not cancel but are available to 22.14 the commissioner for these purposes for 22.15 fiscal year 1999. 22.16 [CHILD SUPPORT ENFORCEMENT 22.17 APPROPRIATIONS.] Of this appropriation 22.18 for the biennium ending June 30, 1999, 22.19 the commissioner shall transfer: 22.20 $150,000 to the attorney general for 22.21 the continuation of the public 22.22 education campaign specified in 22.23 Minnesota Statutes, section 8.35; and 22.24 $68,000 to the attorney general for the 22.25 purposes specified in Minnesota 22.26 Statutes, section 518.575. Any balance 22.27 remaining in the first year does not 22.28 cancel, but is available in the second 22.29 year. 22.30 (g) General Assistance 22.31 General 54,766,000 54,010,000 22.32 [GA STANDARD.] The commissioner shall 22.33 set the monthly standard of assistance 22.34 for general assistance units consisting 22.35 of an adult recipient who is childless 22.36 and unmarried or living apart from his 22.37 or her parents or a legal guardian at 22.38 $203. 22.39 (h) Minnesota Supplemental Aid 22.40 General 25,181,000 28,440,000 22.41 (i) Refugee Services 22.42 General 1,905,000 1,605,000 22.43 Subd. 11. Economic Support 22.44 Management 22.45 General 35,488,000 33,369,000 22.46 Health Care 22.47 Access -0- -0- 22.48 The amounts that may be spent from this 22.49 appropriation for each purpose are as 22.50 follows: 22.51 (a) Economic Support Policy 22.52 Administration 22.53 General 10,781,000 9,013,000 22.54 [COMBINED MANUAL PRODUCTION COSTS.] The 22.55 commissioner may increase the fee 23.1 charged to, and may retain money 23.2 received from, individuals and private 23.3 entities in order to recover the 23.4 difference between the costs of 23.5 producing the department of human 23.6 services combined manual and the 23.7 subsidized price charged to individuals 23.8 and private entities on January 1, 23.9 1996. This provision does not apply to 23.10 government agencies and nonprofit 23.11 agencies serving the legal or social 23.12 service needs of clients. 23.13 [PLAN FOR TRIBAL OPERATION OF FAMILY 23.14 ASSISTANCE PROGRAM.] Of this 23.15 appropriation, $148,000 is for the 23.16 commissioner to assist tribes in the 23.17 development of a plan for providing 23.18 state funds in support of a family 23.19 assistance program administered by 23.20 Indian tribes that have a reservation 23.21 in Minnesota and that have federal 23.22 approval to operate a tribal program. 23.23 The commissioner and the tribes shall 23.24 collaborate in the development of the 23.25 plan. The plan shall be reported to 23.26 the legislature no later than February 23.27 15, 1998. 23.28 [COOPERATION FOR CHILDREN, PARENT 23.29 EDUCATION.] Of this appropriation the 23.30 commissioner shall transfer to the 23.31 state court administrator $100,000 in 23.32 fiscal year 1998 and $100,000 in fiscal 23.33 year 1999 for the implementation of the 23.34 cooperation for the children program 23.35 and the parent education program. The 23.36 commissioner shall also request all 23.37 federal funds available for visitation 23.38 access grants under the authority of 23.39 the Personal Responsibility and Work 23.40 Opportunity Act of 1996. The 23.41 commissioner may accept on behalf of 23.42 the state any federal funding for the 23.43 purpose of financing visitation access 23.44 programs and shall transfer any funds 23.45 received for this purpose to the state 23.46 court administrator for implementation 23.47 of the parent education program and the 23.48 cooperation for the children program. 23.49 The state court administrator shall 23.50 monitor, evaluate and report on such 23.51 programs in accordance with any 23.52 applicable federal regulations. 23.53 (b) Economic Support Policy 23.54 Operations 23.55 General 28,602,000 28,126,000 23.56 Health Care 23.57 Access -0- -0- 23.58 [CITIZENSHIP TRAINING.] The funds 23.59 appropriated for citizenship training 23.60 shall be awarded to nonprofit 23.61 organizations through a competitive 23.62 bidding process based on criteria 23.63 established by the commissioner of 23.64 human services. Notice of the 23.65 availability of funds shall be 24.1 published in the State Register. 24.2 [ELECTRONIC BENEFIT TRANSFER (EBT) 24.3 COUNTY ALLOCATION.] Of the amount 24.4 appropriated for electronic benefit 24.5 transfer, an allocation shall be made 24.6 each year to counties for EBT-related 24.7 expenses. One hundred percent of the 24.8 appropriation shall be allocated to 24.9 counties based on each county's average 24.10 monthly number of food stamp households 24.11 as a proportion of statewide average 24.12 monthly food stamp households for the 24.13 fiscal year ending June 30, 1996. 24.14 [EBT TRANSACTION COSTS.] (a) Of the 24.15 amount appropriated for the statewide 24.16 expansion of electronic benefit 24.17 transfer (EBT), $350,000 for the 24.18 biennium is to reimburse participating 24.19 retailers at the rate of eight cents 24.20 per transaction for the new costs 24.21 associated with the change from paper 24.22 food stamp coupons to electronic food 24.23 stamp benefits. This reimbursement is 24.24 only available to retailers utilizing 24.25 their own EBT equipment; it is not 24.26 available to retailers utilizing EBT 24.27 equipment that is supplied by the 24.28 commissioner of human services. Any 24.29 balance remaining in the first year 24.30 does not cancel, but is available in 24.31 the second year. This appropriation 24.32 shall not be added to the base for this 24.33 activity in the 2000-2001 biennial 24.34 budget. 24.35 (b) The commissioner, in consultation 24.36 with retailers participating in the 24.37 food stamp program in counties that 24.38 have implemented EBT, retailers in 24.39 counties that have not implemented EBT, 24.40 representatives of the Minnesota 24.41 grocers association, and an independent 24.42 party that has a demonstrated capacity 24.43 to become knowledgeable about food 24.44 stamp transactions and EBT 24.45 transactions, shall conduct a study of 24.46 the statewide expansion of EBT. The 24.47 study shall examine and quantify the 24.48 savings to the state of implementing 24.49 EBT statewide and the true EBT-related 24.50 costs of participating retailers. The 24.51 commissioner shall report the results 24.52 of the study to the legislature by 24.53 January 15, 1998. The report must 24.54 include, at a minimum, a recommendation 24.55 of whether a transaction fee for 24.56 participating retailers is necessary, 24.57 and the amount of the transaction fee 24.58 if one is recommended. 24.59 [FRAUD PREVENTION AND CONTROL FUNDING.] 24.60 Unexpended funds appropriated for the 24.61 provision of program integrity 24.62 activities for fiscal year 1998 are 24.63 also available to the commissioner to 24.64 fund fraud prevention and control 24.65 initiatives, and do not cancel but are 24.66 available to the commissioner for these 24.67 purposes for fiscal year 1999. 25.1 Unexpended funds may be transferred 25.2 between the fraud prevention 25.3 investigation program and fraud control 25.4 programs to promote the provisions of 25.5 Minnesota Statutes, sections 256.983 25.6 and 256.9861. 25.7 [TRIBAL OPERATION OF ASSISTANCE 25.8 PROGRAMS; FEASIBILITY CONSIDERED.] The 25.9 commissioner of human services, in 25.10 consultation with the federally- 25.11 recognized Indian tribes, the 25.12 commissioner of children, families, and 25.13 learning and the commissioner of 25.14 economic security, shall explore the 25.15 feasibility of having the 25.16 federally-recognized Indian tribes 25.17 administer or operate state and 25.18 federally funded programs such as 25.19 MFIP-S, diversionary assistance, food 25.20 stamps, general assistance, emergency 25.21 assistance, child support enforcement, 25.22 and child care assistance. The 25.23 exploration shall consider the state 25.24 and federal funding needed for the 25.25 programs under consideration. 25.26 [NEW CHANCE PROGRAM.] Of this 25.27 appropriation, $140,000 each year is 25.28 for a grant to the new chance program. 25.29 The new chance program shall provide 25.30 comprehensive services through a 25.31 private, nonprofit agency to young 25.32 parents in Hennepin county who have 25.33 dropped out of school and are receiving 25.34 public assistance. The program 25.35 administrator shall report annually to 25.36 the commissioner on skills development, 25.37 education, job training, and job 25.38 placement outcomes for program 25.39 participants. 25.40 (c) Assistance to Families 25.41 State Management 25.42 -0- -0- 25.43 Subd. 12. Federal TANF Funds 25.44 [FEDERAL TANF FUNDS.] Federal Temporary 25.45 Assistance for Needy Families block 25.46 grant funds authorized under title I of 25.47 Public Law Number 104-193, the Personal 25.48 Responsibility and Work Opportunity 25.49 Reconciliation Act of 1996, are 25.50 appropriated to the commissioner in 25.51 amounts up to $278,621,000 in fiscal 25.52 year 1998 and $267,792,000 in fiscal 25.53 year 1999. 25.54 [TRANSFER TO TANF CHILD CARE.] Of this 25.55 appropriation, $3,770,000 each year 25.56 from the federal TANF block grant is 25.57 transferred to the commissioner of 25.58 children, families, and learning for 25.59 the purposes of providing TANF child 25.60 care assistance. 25.61 Sec. 3. COMMISSIONER OF HEALTH 25.62 Subdivision 1. Total 26.1 Appropriation 81,371,000 80,209,000 26.2 Summary by Fund 26.3 General 59,670,000 57,946,000 26.4 Metropolitan 26.5 Landfill Contingency 26.6 Action Fund 193,000 193,000 26.7 State Government 26.8 Special Revenue 21,860,000 22,070,000 26.9 Health Care 26.10 Access -0- -0- 26.11 Minnesota Resources 150,000 -0- 26.12 [LANDFILL CONTINGENCY.] The 26.13 appropriation from the metropolitan 26.14 landfill contingency action fund is for 26.15 monitoring well water supplies and 26.16 conducting health assessments in the 26.17 metropolitan area. 26.18 [FEES TO COVER COSTS, RECOVER 26.19 DEFICITS.] The commissioner of health 26.20 shall set fees to cover current program 26.21 costs and recover deficits. 26.22 Subd. 2. Health Systems 26.23 and Special Populations 57,278,000 56,476,000 26.24 Summary by Fund 26.25 General 48,056,000 47,241,000 26.26 State Government 26.27 Special Revenue 9,222,000 9,235,000 26.28 Health Care 26.29 Access -0- -0- 26.30 [FEES; DRUG AND ALCOHOL COUNSELOR 26.31 LICENSE.] When setting fees for the 26.32 drug and alcohol counselor license, the 26.33 department is exempt from Minnesota 26.34 Statutes, section 16A.1285, subdivision 26.35 2. 26.36 [FEES; HEARING INSTRUMENT DISPENSER 26.37 LICENSE.] When setting fees for the 26.38 hearing instrument dispenser license, 26.39 the department is exempt from Minnesota 26.40 Statutes, section 16A.1285, subdivision 26.41 2. 26.42 [STATE VITAL RECORDS REDESIGN PROJECT 26.43 ACCOUNT.] The amount appropriated for 26.44 the vital records redesign project 26.45 shall be available until expended for 26.46 ongoing development and operations. 26.47 [WIC PROGRAM.] Of this appropriation, 26.48 $650,000 in 1998 is provided to 26.49 maintain services of the program, 26.50 $700,000 in 1998 and $700,000 in 1999 26.51 is added to the base level funding for 26.52 the WIC food program in order to 26.53 maintain the existing level of the 26.54 program, and $100,000 in 1998 is for 27.1 the commissioner to develop and 27.2 implement an outreach program to 27.3 apprise potential recipients of the WIC 27.4 food program of the importance of good 27.5 nutrition and the availability of the 27.6 program. 27.7 [WIC TRANSFERS.] General fund 27.8 appropriations for the women, infants, 27.9 and children food supplement program 27.10 (WIC) are available for either year of 27.11 the biennium. Transfers of 27.12 appropriations between fiscal years 27.13 must be for the purpose of maximizing 27.14 federal funds or minimizing 27.15 fluctuations in the number of 27.16 participants. 27.17 [LOCAL PUBLIC HEALTH FINANCING.] Of the 27.18 appropriation, $6,026,000 in fiscal 27.19 year 1998 and $5,255,000 in fiscal year 27.20 1999 is for local public health 27.21 financing. Of this amount, $5,476,000 27.22 in fiscal year 1998 and $4,705,000 in 27.23 fiscal year 1999 shall be distributed 27.24 according to the community health 27.25 services subsidy formula in Minnesota 27.26 Statutes, section 145A.13. No more 27.27 than $550,000 each year is for 27.28 technical assistance provided by the 27.29 commissioner under Minnesota Statutes, 27.30 section 145A.12. 27.31 [JUVENILE ASSESSMENT CENTERS.] Of this 27.32 appropriation, $500,000 each year of 27.33 the biennium ending June 30, 1999, is 27.34 for the commissioner to develop and 27.35 pilot up to three juvenile assessment 27.36 centers, in partnership with the 27.37 commissioner of children, families and 27.38 learning. The commissioner may 27.39 transfer these appropriations to the 27.40 commissioner of children, families, and 27.41 learning and to other commissioners as 27.42 appropriate. The centers will serve as 27.43 central intake facilities for juveniles 27.44 entering the juvenile justice system or 27.45 involved in CHIPS proceedings; 27.46 facilitate screening for risk factors 27.47 for further involvement in the juvenile 27.48 justice system; refer juveniles to 27.49 appropriate service providers; and 27.50 provide decision-makers with timely 27.51 information. 27.52 [CARRYOVER; MINNESOTA CHILDREN WITH 27.53 SPECIAL HEALTH NEEDS.] General fund 27.54 appropriations for treatment services 27.55 in the services for children with 27.56 special health care needs program are 27.57 available for either year of the 27.58 biennium. 27.59 [HEALTH CARE ASSISTANCE FOR DISABLED 27.60 CHILDREN INELIGIBLE FOR SSI.] 27.61 Notwithstanding the requirements of 27.62 Minnesota Rules, part 4705.0100, 27.63 subpart 14, children who: (a) are 27.64 eligible for medical assistance as of 27.65 June 30, 1997, and become ineligible 27.66 for medical assistance due to changes 28.1 in supplemental security income 28.2 disability standards for children 28.3 enacted in (PRWORA) Public Law Number 28.4 104-193; and (b) are not eligible for 28.5 MinnesotaCare, are eligible for health 28.6 care services through Minnesota 28.7 services for children with special 28.8 health care needs under Minnesota 28.9 Rules, parts 4705.0100 to 4705.1600 for 28.10 the fiscal year ending June 30, 1998. 28.11 The commissioner of health shall report 28.12 to the legislature by March 1, 1998, on 28.13 the number of children eligible under 28.14 this provision, their health care 28.15 needs, family income as a percentage of 28.16 the federal poverty level, the extent 28.17 to which families have employer-based 28.18 health coverage, and recommendations on 28.19 how to meet the future needs of 28.20 children eligible under this provision. 28.21 [MERC TRUST FUND.] Of the general fund 28.22 appropriation, $7,200,000 each year is 28.23 for the medical education and research 28.24 (MERC) trust fund established under 28.25 Minnesota Statutes, section 62J.69. 28.26 The commissioner may use up to $150,000 28.27 of this appropriation each year for the 28.28 administration of the MERC trust fund. 28.29 [INDIAN DIABETES PREVENTION 28.30 ACTIVITIES.] (a) Of this general fund 28.31 appropriation, $90,000 in fiscal year 28.32 1998 is for development of a 28.33 comprehensive school-based intervention 28.34 program designed to reduce the risk 28.35 factors associated with diabetes among 28.36 American Indian school children in 28.37 grades 1 through 4. 28.38 (b) Of this general fund appropriation, 28.39 $90,000 in fiscal year 1999 is for the 28.40 implementation of the program developed 28.41 under paragraph (a). This 28.42 appropriation is available only if 28.43 matched by $1 of nonstate money for 28.44 each $1 of the appropriation. 28.45 [HOME VISITING PROGRAMS.] (a) Of this 28.46 appropriation, $140,000 in 1998 and 28.47 $1,295,000 in 1999 is for the home 28.48 visiting programs for infant care under 28.49 Minnesota Statutes, section 145A.16. 28.50 These amounts are available until June 28.51 30, 1999. 28.52 (b) Of this appropriation, $225,000 in 28.53 1998 and $180,000 in 1999 is to 28.54 continue funding the home visiting 28.55 programs that received one-year funding 28.56 under Laws 1995, chapter 480, article 28.57 1, section 9. This amount is available 28.58 until expended. 28.59 [FETAL ALCOHOL SYNDROME.] $1,000,000 is 28.60 appropriated from the general fund to 28.61 the commissioner of health for each 28.62 year of the biennium ending June 30, 28.63 1999, to prevent and reduce harm from 28.64 Fetal Alcohol Syndrome (FAS) and Fetal 28.65 Alcohol Effect (FAE). Of this amount: 29.1 (1) the commissioner shall transfer 29.2 $50,000 in fiscal year 1998 and $50,000 29.3 in fiscal year 1999 to the commissioner 29.4 of public safety to enforce Minnesota 29.5 Statutes, section 340A.410, subdivision 29.6 4b, and to develop a training packet 29.7 for alcohol beverage sales and service 29.8 providers; and (2) the commissioner 29.9 shall transfer $800,000 each year to 29.10 the commissioner of human services to 29.11 provide transitional chemical 29.12 dependency services to pregnant women. 29.13 Of the appropriation, $150,000 each 29.14 year is for training health care 29.15 providers to screen and refer pregnant 29.16 women for alcohol abuse, identifying 29.17 affected children and referring them to 29.18 needed services, and designing and 29.19 implementing a statewide plan to 29.20 promote responsible drinking and reduce 29.21 binge drinking, underage drinking, and 29.22 fetal alcohol exposure. 29.23 [EXPANSION TARGETED TO ABSTINENCE.] Of 29.24 this appropriation, $600,000 for each 29.25 year is from the increased 29.26 appropriation to expand family planning 29.27 services for family planning grants to 29.28 fund abstinence education and 29.29 counseling programs for minors under 29.30 Minnesota Statutes, section 145.925. 29.31 [COMPLAINT INVESTIGATIONS.] Of the 29.32 appropriation, $127,000 each year from 29.33 the state government special revenue 29.34 fund, and $88,000 each year from the 29.35 general fund, is for the commissioner 29.36 to conduct complaint investigations of 29.37 nursing facilities, hospitals and home 29.38 health care providers. 29.39 [HOME STAFFING STUDY.] The commissioner 29.40 of health, in consultation with the 29.41 commissioner of human services, shall 29.42 study nursing home staffing to 29.43 determine if Minnesota nursing homes 29.44 are adequately staffed to assure high 29.45 quality care of residents. The study 29.46 shall examine: 29.47 (1) Whether nursing home staff levels 29.48 and qualifications have changed to 29.49 reflect the rising acuity levels of 29.50 nursing home patients. 29.51 (2) Whether more training is necessary 29.52 for nursing assistant and who care for 29.53 sicker patients. 29.54 (3) The percentage of nursing care in 29.55 nursing homes that is delivered by 29.56 nursing assistants as opposed to 29.57 licensed nurses, how this has changed 29.58 over the past five years, and what the 29.59 implications are for care. 29.60 (4) Whether the use of nursing pools or 29.61 agencies has increased over the past 29.62 five years, the implications of the use 29.63 of pools for continuity of care and for 30.1 costs to nursing homes, and whether a 30.2 restriction on the use of nursing pools 30.3 is advisable. 30.4 (5) Whether injury rates are related to 30.5 staffing, and whether increased 30.6 staffing would reduce injury rates, 30.7 lead to greater continuity of care, and 30.8 lower worker compensation costs to the 30.9 nursing home industry. 30.10 (6) Whether high turnover rates and 30.11 difficulty in attracting and retaining 30.12 nursing assistant staff in nursing 30.13 homes are related to low wages, and 30.14 whether the state should provide wage 30.15 enhancements for nursing assistants to 30.16 bring wages to a level adequate to 30.17 attract and retain good staff. 30.18 (7) Whether Minnesota should adopt new 30.19 staffing standards for its nursing 30.20 homes to reflect the increases in 30.21 patients' acuity levels and the 30.22 increased use of nursing assistants for 30.23 nursing care, and whether the state 30.24 should adopt a "ratio" standard that 30.25 requires the number of licensed nurses 30.26 and nursing assistants on staff to be 30.27 based on the number of patients and the 30.28 time of day. 30.29 The commissioner shall present 30.30 recommendations to the legislature by 30.31 December 15, 1997. 30.32 Subd. 3. Health Protection 21,295,000 20,558,000 30.33 Summary by Fund 30.34 General 8,472,000 7,688,000 30.35 Metro Landfill 30.36 Contingency 193,000 193,000 30.37 State Government 30.38 Special Revenue 12,480,000 12,677,000 30.39 Minnesota Resources 150,000 -0- 30.40 [DEMO PROJECTS FOR HIV EDUCATION IN 30.41 SCHOOLS.] Of this appropriation, the 30.42 commissioner shall transfer $300,000 30.43 for the biennium ending June 30, 1999, 30.44 to the commissioner of children, 30.45 families, and learning to establish a 30.46 demonstration project to provide grants 30.47 to school districts under Minnesota 30.48 Statutes, section 121.203. In 30.49 selecting participating districts the 30.50 commissioner shall give first priority 30.51 to school districts outside of the 30.52 seven-county metropolitan area, and 30.53 second priority to school districts in 30.54 the seven-county metropolitan area 30.55 other than the Minneapolis and St. Paul 30.56 school districts. The commissioner 30.57 shall issue a request for proposals by 30.58 October 1, 1997, and shall select 30.59 districts by December 15, 1997. The 30.60 commissioner shall evaluate the 31.1 projects, and by June 15, 1999, develop 31.2 model programs for districts to 31.3 implement Minnesota Statutes, section 31.4 121.203. This appropriation shall not 31.5 become part of the base for 2000-2001 31.6 biennium. 31.7 [PREVENTION OF PERINATAL TRANSMISSION 31.8 OF HIV.] Of this appropriation, 31.9 $500,000 for the biennium is for 31.10 activities related to prevention of 31.11 perinatal transmission of HIV. Of this 31.12 amount, $225,000 in fiscal year 1998 31.13 and $200,000 in fiscal year 1999 is to 31.14 conduct a statewide education campaign 31.15 for pregnant women and their health 31.16 care providers, and $75,000 is for 31.17 demonstration grants to providers to 31.18 develop procedures for incorporating 31.19 HIV awareness and education into 31.20 perinatal care. 31.21 [EVALUATION REQUIRED.] Of this 31.22 appropriation, $100,000 for the 31.23 biennium is for the commissioner to 31.24 evaluate the effects of Minnesota 31.25 Statutes, section 151.40, subdivision 31.26 2, and Minnesota Statutes, section 31.27 152.01, subdivision 18, paragraph (b). 31.28 The commissioner shall submit an 31.29 interim evaluation report to the 31.30 legislature by January 15, 2000, and a 31.31 final report by January 15, 2002. 31.32 [PROVIDER REIMBURSEMENT FOR HEALTH CARE 31.33 SERVICES TO CRIME VICTIMS.] Of this 31.34 appropriation $25,000 each year is for 31.35 the commissioner to reimburse health 31.36 care providers for counseling, testing, 31.37 and early intervention services 31.38 provided to crime victims who requested 31.39 the services. 31.40 Subd. 4. Management and 31.41 Support Services 3,300,000 3,175,000 31.42 Summary by Fund 31.43 General 3,142,000 3,017,000 31.44 Health Care 31.45 Access -0- -0- 31.46 State Government 31.47 Special Revenue 158,000 158,000 31.48 [HEALTH DEPARTMENT COMPUTER PROJECTS.] 31.49 Money appropriated for computer 31.50 projects approved by the information 31.51 policy office, funded by the 31.52 legislature, and approved by the 31.53 commissioner of finance does not cancel 31.54 but is available for development and 31.55 implementation. 31.56 [HOSPITAL CONVERSION.] Of the 31.57 appropriation from the general fund, 31.58 for the fiscal year ending June 30, 31.59 1998, the commissioner of health shall 31.60 provide $75,000 to a 28-bed hospital 31.61 located in Chisago county that is in 32.1 the process of closing and converting 32.2 to an outpatient and emergency services 32.3 facility, for the facility's EMS and 32.4 advanced life support services. 32.5 Sec. 4. VETERANS NURSING 32.6 HOMES BOARD 20,709,000 24,342,000 32.7 [SPECIAL REVENUE ACCOUNT.] The general 32.8 fund appropriations made to the 32.9 veterans homes board shall be 32.10 transferred to a veterans homes special 32.11 revenue account in the special revenue 32.12 fund in the same manner as other 32.13 receipts are deposited in accordance 32.14 with Minnesota Statutes, section 32.15 198.34, and are appropriated to the 32.16 veterans homes board of directors for 32.17 the operation of board facilities and 32.18 programs. 32.19 [SETTING THE COST OF CARE.] The 32.20 veterans homes board may set the cost 32.21 of care at the Fergus Falls facility 32.22 for fiscal year 1998 based on the cost 32.23 of average skilled nursing care 32.24 provided to residents of the 32.25 Minneapolis veterans home for fiscal 32.26 year 1998. The board may set the cost 32.27 of care at the Fergus Falls facilities 32.28 for fiscal year 1999 based on the cost 32.29 of average skilled nursing care for 32.30 residents of the Minneapolis veterans 32.31 home for fiscal year 1999. 32.32 [LICENSED CAPACITY.] The department of 32.33 health shall not reduce the licensed 32.34 bed capacity for the Minneapolis 32.35 veterans home pending completion of the 32.36 project authorized by Laws 1990, 32.37 chapter 610, article 1, section 9, 32.38 subdivision 3. 32.39 [ALLOWANCE FOR FOOD.] The allowance for 32.40 food may be adjusted annually to 32.41 reflect changes in the producer price 32.42 index, as prepared by the United States 32.43 Bureau of Labor Statistics, with the 32.44 approval of the commissioner of 32.45 finance. Adjustments for fiscal year 32.46 1998 and fiscal year 1999 must be based 32.47 on the June 1996 and June 1997 producer 32.48 price index respectively, but the 32.49 adjustment must be prorated if it would 32.50 require money in excess of the 32.51 appropriation. 32.52 Sec. 5. HEALTH-RELATED BOARDS 32.53 Subdivision 1. Total 32.54 Appropriation 9,598,000 9,618,000 32.55 [STATE GOVERNMENT SPECIAL REVENUE 32.56 FUND.] The appropriations in this 32.57 section are from the state government 32.58 special revenue fund. 32.59 [NO SPENDING IN EXCESS OF REVENUES.] 32.60 The commissioner of finance shall not 32.61 permit the allotment, encumbrance, or 32.62 expenditure of money appropriated in 33.1 this section in excess of the 33.2 anticipated biennial revenues or 33.3 accumulated surplus revenues from fees 33.4 collected by the boards. Neither this 33.5 provision nor Minnesota Statutes, 33.6 section 214.06, applies to transfers 33.7 from the general contingent account. 33.8 Subd. 2. Board of Chiropractic 33.9 Examiners 332,000 340,000 33.10 Subd. 3. Board of Dentistry 742,000 760,000 33.11 Subd. 4. Board of Dietetic 33.12 and Nutrition Practice 90,000 90,000 33.13 Subd. 5. Board of Marriage and 33.14 Family Therapy 103,000 104,000 33.15 Subd. 6. Board of Medical 33.16 Practice 3,672,000 3,711,000 33.17 Of these appropriations, $291,000 the 33.18 first year and $296,000 the second year 33.19 are for the Health Professional 33.20 Services Activity. 33.21 Subd. 7. Board of Nursing 2,067,000 2,106,000 33.22 [DISCIPLINE AND LICENSING SYSTEMS 33.23 PROJECT.] Of this appropriation, 33.24 $235,000 the first year and $235,000 33.25 the second year is to complete the 33.26 implementation of the discipline and 33.27 licensing systems project. 33.28 Subd. 8. Board of Nursing 33.29 Home Administrators 177,000 181,000 33.30 Subd. 9. Board of Optometry 82,000 85,000 33.31 Subd. 10. Board of Pharmacy 1,020,000 1,040,000 33.32 Of these appropriations, $216,000 the 33.33 first year and $222,000 the second year 33.34 are for the health boards 33.35 administrative services unit. The 33.36 administrative services unit may 33.37 receive and expend reimbursements for 33.38 services performed for other agencies. 33.39 Subd. 11. Board of Podiatry 33,000 33,000 33.40 Subd. 12. Board of Psychology 424,000 436,000 33.41 Subd. 13. Board of Social Work 715,000 588,000 33.42 Subd. 14. Board of Veterinary 33.43 Medicine 141,000 144,000 33.44 Sec. 6. EMERGENCY MEDICAL 33.45 SERVICES BOARD 2,494,000 2,262,000 33.46 Summary by Fund 33.47 General 842,000 584,000 33.48 Trunk Highway 1,652,000 1,678,000 33.49 [CALS PROGRAM.] $206,000 is 33.50 appropriated from the general fund to 34.1 the emergency medical services 34.2 regulatory board to be available until 34.3 June 30, 1999. $200,000 of the 34.4 appropriation is to implement the 34.5 comprehensive advanced life support 34.6 (CALS) program or similar program. 34.7 $6,000 of the appropriation is for 34.8 administrative costs of implementing 34.9 the CALS program. 34.10 [EMS BOARD DATA COLLECTION.] Of this 34.11 appropriation, $52,000 for the biennium 34.12 ending June 30, 1999, is from the 34.13 general fund to the emergency medical 34.14 services regulatory to be used as 34.15 start-up costs for the financial data 34.16 collection system. 34.17 Sec. 7. COUNCIL ON DISABILITY 616,000 631,000 34.18 Sec. 8. OMBUDSMAN FOR MENTAL 34.19 HEALTH AND MENTAL RETARDATION 1,399,000 1,323,000 34.20 [CARRYOVER.] $25,000 of the 34.21 appropriation from Laws 1995, chapter 34.22 207, article 1, section 7, does not 34.23 cancel but is available until June 30, 34.24 1999. 34.25 Sec. 9. OMBUDSMAN 34.26 FOR FAMILIES 157,000 161,000 34.27 Sec. 10. TRANSFERS 34.28 Subdivision 1. Grant Programs 34.29 The commissioner of human services, 34.30 with the approval of the commissioner 34.31 of finance, and after notification of 34.32 the chair of the senate health care and 34.33 family services finance division and 34.34 the chair of the house health and human 34.35 services finance division, may transfer 34.36 unencumbered appropriation balances for 34.37 the biennium ending June 30, 1999, 34.38 within fiscal years among the aid to 34.39 families with dependent children, 34.40 Minnesota family investment 34.41 program-statewide, Minnesota family 34.42 investment plan, general assistance, 34.43 general assistance medical care, 34.44 medical assistance, Minnesota 34.45 supplemental aid, and group residential 34.46 housing programs, and the entitlement 34.47 portion of the chemical dependency 34.48 consolidated treatment fund, and 34.49 between fiscal years of the biennium. 34.50 Subd. 2. Approval Required 34.51 Positions, salary money, and nonsalary 34.52 administrative money may be transferred 34.53 within the departments of human 34.54 services and health and within the 34.55 programs operated by the veterans 34.56 nursing homes board as the 34.57 commissioners and the board consider 34.58 necessary, with the advance approval of 34.59 the commissioner of finance. The 34.60 commissioner of finance shall inform 34.61 the chairs of the house health and 35.1 human services finance division and the 35.2 senate health and family security 35.3 budget division quarterly about 35.4 transfers made under this provision. 35.5 Sec. 11. PROVISIONS 35.6 (a) Money appropriated to the 35.7 commissioner of human services for the 35.8 purchase of provisions within the item 35.9 "current expense" must be used solely 35.10 for that purpose. Money provided and 35.11 not used for the purchase of provisions 35.12 must be canceled into the fund from 35.13 which appropriated, except that money 35.14 provided and not used for the purchase 35.15 of provisions because of population 35.16 decreases may be transferred and used 35.17 for the purchase of drugs and medical 35.18 and hospital supplies and equipment 35.19 with written approval of the governor 35.20 after consultation with the legislative 35.21 advisory commission. 35.22 (b) For fiscal year 1998, the allowance 35.23 for food may be adjusted to the 35.24 equivalent of the 75th percentile of 35.25 the comparable raw food costs for 35.26 community nursing homes as reported to 35.27 the commissioner of human services. 35.28 For fiscal year 1999 an adjustment may 35.29 be made to reflect the annual change in 35.30 the United States Bureau of Labor 35.31 Statistics producer price index as of 35.32 June 1998 with the approval of the 35.33 commissioner of finance. The 35.34 adjustments for either year must be 35.35 prorated if they would require money in 35.36 excess of this appropriation. 35.37 Sec. 12. CARRYOVER LIMITATION 35.38 None of the appropriations in this act 35.39 which are allowed to be carried forward 35.40 from fiscal year 1998 to fiscal year 35.41 1999 shall become part of the base 35.42 level funding for the 2000-2001 35.43 biennial budget, unless specifically 35.44 directed by the legislature. 35.45 Sec. 13. SUNSET OF UNCODIFIED LANGUAGE 35.46 All uncodified language contained in 35.47 this article expires on June 30, 1999, 35.48 unless a different expiration is 35.49 explicit. 35.50 Sec. 14. COMMISSIONER OF 35.51 ADMINISTRATION 1,270,000 -0- 35.52 [VETERANS HOMES IMPROVEMENTS.] Of this 35.53 appropriation, $1,270,000 for the 35.54 biennium is for the commissioner to 35.55 accomplish the repair and replacement 35.56 of sanitary sewers, fire protection 35.57 water mains, roof drains, and deep 35.58 sandstone tunnels at the Minneapolis 35.59 veterans home, Minneapolis campus. 35.60 Sec. 15. [TRANSFER FROM TANF CHILD CARE.] 36.1 The appropriations from the general fund for TANF child 36.2 care in article 4, section 72, subdivision 3, of H.F. 2147, if 36.3 enacted, are reduced by $3,770,000 each year. The commissioner 36.4 of children, families, and learning shall transfer $3,770,000 36.5 each year in general fund appropriations to the commissioner of 36.6 human services. 36.7 ARTICLE 2 36.8 HEALTH DEPARTMENT 36.9 Section 1. Minnesota Statutes 1996, section 62J.69, 36.10 subdivision 2, is amended to read: 36.11 Subd. 2. [ALLOCATION AND FUNDING FOR MEDICAL EDUCATION AND 36.12 RESEARCH.] (a) The commissioner may establish a trust fund for 36.13 the purposes of funding medical education and research 36.14 activities in the state of Minnesota. 36.15 (b) By January 1, 1997, the commissioner may appoint an 36.16 advisory committee to provide advice and oversight on the 36.17 distribution of funds from the medical education and research 36.18 trust fund. If a committee is appointed, the commissioner 36.19 shall: (1) consider the interest of all stakeholders when 36.20 selecting committee members; (2) select members that represent 36.21 both urban and rural interest; and (3) select members that 36.22 include ambulatory care as well as inpatient perspectives. The 36.23 commissioner shall appoint to the advisory committee 36.24 representatives of the following groups: medical researchers, 36.25 public and private academic medical centers, managed care 36.26 organizations, Blue Cross and Blue Shield of Minnesota, 36.27 commercial carriers, Minnesota Medical Association, Minnesota 36.28 Nurses Association, medical product manufacturers, employers, 36.29 and other relevant stakeholders, including consumers. The 36.30 advisory committee is governed by section 15.059, for membership 36.31 terms and removal of members and will sunset on June 30, 1999. 36.32 (c) Eligible applicants for funds are accredited medical 36.33 education teaching institutions, consortia, and programs. 36.34 Applications must be received by September 30 of each year for 36.35 distribution by January 1 of the following year. An application 36.36 for funds must include the following: 37.1 (1) the official name and address of the institution, 37.2 facility, or program that is applying for funding; 37.3 (2) the name, title, and business address of those persons 37.4 responsible for administering the funds; 37.5 (3) the total number, type, and specialty orientation of 37.6 eligible trainees in each accredited medical education program 37.7 applying for funds; 37.8 (4) audited clinical training costs per trainee for each 37.9 medical education program; 37.10 (5) a description of current sources of funding for medical 37.11 education costs including a description and dollar amount of all 37.12 state and federal financial support; 37.13 (6) other revenue received for the purposes of clinical 37.14 training; 37.15 (7) a statement identifying unfunded costs; and 37.16 (8) other supporting information the commissioner, with 37.17 advice from the advisory committee, determines is necessary for 37.18 the equitable distribution of funds. 37.19 (d) The commissioner shall distribute medical education 37.20 funds to all qualifying applicants based on the following basic 37.21 criteria: (1) total medical education funds available; (2) 37.22 total trainees in each eligible education program; and (3) the 37.23 statewide average cost per trainee, by type of trainee, in each 37.24 medical education program. Funds distributed shall not be used 37.25 to displace current funding appropriations from federal or state 37.26 sources. 37.27 (e) Medical education programs receiving funds from the 37.28 trust fund must submit annual cost and program reports based on 37.29 criteria established by the commissioner. The reports must 37.30 include: 37.31 (1) the total number of eligible trainees in the program; 37.32 (2) the type of programs and residencies funded; 37.33 (3) the average cost per trainee and a detailed breakdown 37.34 of the components of those costs; 37.35 (4) other state or federal appropriations received for the 37.36 purposes of clinical training; 38.1 (5) other revenue received for the purposes of clinical 38.2 training; and 38.3 (6) other information the commissioner, with advice from 38.4 the advisory committee, deems appropriate to evaluate the 38.5 effectiveness of the use of funds for clinical training. 38.6 The commissioner, with advice from the advisory committee, 38.7 will provide an annual summary report to the legislature on 38.8 program implementation due February 15 of each year. 38.9 (f) The commissioner is authorized to distribute funds made 38.10 available through: 38.11 (1) voluntary contributions by employers or other entities; 38.12 (2) allocations for the department of human services to 38.13 support medical education and research; and 38.14 (3) other sources as identified and deemed appropriate by 38.15 the legislature for inclusion in the trust fund. 38.16 (g) The advisory committee shall continue to study and make 38.17 recommendations on: 38.18 (1) the funding of medical research consistent with work 38.19 currently mandated by the legislature and under way at the 38.20 department of health; and 38.21 (2) the costs and benefits associated with medical 38.22 education and research. 38.23 (h) The commissioner of health, in consultation with the 38.24 medical education and research costs advisory committee, shall 38.25 continue to consider additional broad-based funding sources, and 38.26 shall recommend potential sources of funding to the legislative 38.27 commission on health care access by January 15, 1998. 38.28 (i) The commissioner of health, in consultation with the 38.29 commissioner of human services, shall assess the possibility of 38.30 further base rate reductions to the prepaid medical assistance 38.31 and prepaid general assistance medical care programs and shall 38.32 study the feasibility of inclusion of MinnesotaCare funding in 38.33 the trust fund. The study shall examine whether the 1999 38.34 allocation established in section 256B.69, subdivision 5c, 38.35 paragraph (b), sufficiently reflects the direct and indirect 38.36 components of medical education. The study shall also examine 39.1 the appropriateness of transferring an education component from 39.2 the MinnesotaCare rates, and the appropriate amount and timing 39.3 of any such transfer. Recommendations on the possible inclusion 39.4 of MinnesotaCare funding and any further base rate reductions 39.5 from the prepaid medical assistance and prepaid general 39.6 assistance medical care programs shall be reported to the 39.7 legislative commission on health care access by January 15, 1998. 39.8 Sec. 2. [62J.70] [AMBULANCE SERVICES FINANCIAL DATA.] 39.9 Subdivision 1. [ESTABLISHMENT.] The emergency medical 39.10 services regulatory board established under chapter 144E shall 39.11 establish a financial data collection system for all ambulance 39.12 services licensed in this state. To establish the financial 39.13 database, the emergency medical services regulatory board may 39.14 contract with an entity that has experience in ambulance service 39.15 financial data collection. 39.16 Subd. 2. [DATA CLASSIFICATION.] All financial data 39.17 collected by the emergency medical services regulatory board 39.18 shall be classified as nonpublic data under section 13.02, 39.19 subdivision 9. 39.20 Sec. 3. Minnesota Statutes 1996, section 103I.101, 39.21 subdivision 6, is amended to read: 39.22 Subd. 6. [FEES FOR VARIANCES.] The commissioner shall 39.23 charge a nonrefundable application fee of$100$120 to cover the 39.24 administrative cost of processing a request for a variance or 39.25 modification of rules adopted by the commissioner under this 39.26 chapter. 39.27 Sec. 4. Minnesota Statutes 1996, section 103I.208, is 39.28 amended to read: 39.29 103I.208 [WELLNOTIFICATION FILING FEES AND PERMIT FEES.] 39.30 Subdivision 1. [WELL NOTIFICATION FEE.] The well 39.31 notification fee to be paid by a property owner is: 39.32 (1) for a new well,$100$120, which includes the state 39.33 core function fee;and39.34 (2) for a well sealing, $20, which includes the state core 39.35 function fee; and 39.36 (3) for construction of a dewatering well,$100$120, which 40.1 includes the state core function fee, for each well except a 40.2 dewatering project comprising five or more wells shall be 40.3 assessed a single fee of$500$600 for the wells recorded on the 40.4 notification. 40.5 Subd. 1a. [STATE CORE FUNCTION FEE.] The state core 40.6 function fee to be collected by the state and delegated boards 40.7 of health and used to support state core functions is: 40.8 (1) for a new well, $20; and 40.9 (2) for a well sealing, $5. 40.10 Subd. 2. [PERMIT FEE.] The permit fee to be paid by a 40.11 property owner is: 40.12 (1) for a well that is not in use under a maintenance 40.13 permit, $100 annually; 40.14 (2) for construction of a monitoring well,$100$120, which 40.15 includes the state core function fee; 40.16 (3) for a monitoring well that is unsealed under a 40.17 maintenance permit, $100 annually; 40.18 (4) for monitoring wells used as a leak detection device at 40.19 a single motor fuel retail outlet or petroleum bulk storage site 40.20 excluding tank farms, the construction permit fee is$100$120, 40.21 which includes the state core function fee, per site regardless 40.22 of the number of wells constructed on the site, and the annual 40.23 fee for a maintenance permit for unsealed monitoring wells is 40.24 $100 per site regardless of the number of monitoring wells 40.25 located on site; 40.26 (5) for a groundwater thermal exchange device, in addition 40.27 to the notification fee for wells,$100$120, which includes the 40.28 state core function fee; 40.29 (6) for a vertical heat exchanger,$100$120;and40.30 (7) for a dewatering well that is unsealed under a 40.31 maintenance permit, $100 annually for each well, except a 40.32 dewatering project comprising more than five wells shall be 40.33 issued a single permit for $500 annually for wells recorded on 40.34 the permit; and 40.35 (8) for excavating holes for the purpose of installing 40.36 elevator shafts, $120 for each hole. 41.1 Sec. 5. Minnesota Statutes 1996, section 103I.401, 41.2 subdivision 1, is amended to read: 41.3 Subdivision 1. [PERMIT REQUIRED.] (a) A person may not 41.4 construct an elevator shaft until a permit for the hole or 41.5 excavation is issued by the commissioner. 41.6 (b)The fee for excavating holes for the purpose of41.7installing elevator shafts is $100 for each hole.41.8(c)The elevator shaft permit preempts local permits except 41.9 local building permits, and counties and home rule charter or 41.10 statutory cities may not require a permit for elevator shaft 41.11 holes or excavations. 41.12 Sec. 6. Minnesota Statutes 1996, section 144.121, 41.13 subdivision 1, is amended to read: 41.14 Subdivision 1. [REGISTRATION; FEES.] The fee for the 41.15 registration for X-ray machines andradiumother sources of 41.16 ionizing radiation required to be registered under rules adopted 41.17 by the state commissioner of health pursuant to section 144.12, 41.18 shall be in an amountprescribed by the commissioneras 41.19 described in subdivision 1a pursuant to section 144.122.The41.20first fee for registration shall be due on January 1, 1975.The 41.21 registration shall expire and be renewed as prescribed by the 41.22 commissioner pursuant to section 144.122. 41.23 Sec. 7. Minnesota Statutes 1996, section 144.121, is 41.24 amended by adding a subdivision to read: 41.25 Subd. 1a. [FEES FOR X-RAY MACHINES AND OTHER SOURCES OF 41.26 IONIZING RADIATION.] After July 1, 1997, a facility with x-ray 41.27 machines or other sources of ionizing radiation must biennially 41.28 pay an initial or biennial renewal registration fee consisting 41.29 of a base facility fee of $132 and an additional fee for each 41.30 x-ray machine or other source of ionizing radiation as follows: 41.31 (1) medical or veterinary equipment $106 41.32 (2) dental x-ray equipment $ 66 41.33 (3) accelerator $132 41.34 (4) radiation therapy equipment $132 41.35 (5) x-ray equipment not used on humans or animals $106 41.36 (6) devices with sources of ionizing radiation 42.1 not used on humans or animals $106 42.2 (7) sources of radium $198 42.3 Sec. 8. Minnesota Statutes 1996, section 144.121, is 42.4 amended by adding a subdivision to read: 42.5 Subd. 1b. [PENALTY FEE FOR LATE REGISTRATION.] 42.6 Applications for initial or renewal registrations submitted to 42.7 the commissioner after the time specified by the commissioner 42.8 shall be accompanied by a penalty fee of $20 in addition to the 42.9 fees prescribed in subdivision 1a. 42.10 Sec. 9. Minnesota Statutes 1996, section 144.121, is 42.11 amended by adding a subdivision to read: 42.12 Subd. 1c. [FEE FOR X-RAY MACHINES AND OTHER SOURCES OF 42.13 IONIZING RADIATION REGISTERED DURING LAST 12 MONTHS OF A 42.14 BIENNIAL REGISTRATION PERIOD.] The initial registration fee of 42.15 x-ray machines or other sources of radiation required to be 42.16 registered during the last 12 months of a biennial registration 42.17 period will be 50 percent of the applicable registration fee 42.18 prescribed in subdivision 1a. 42.19 Sec. 10. [144.124] [TESTS OF NEWBORN INFANTS FOR HEARING 42.20 LOSS.] 42.21 Subdivision 1. [LEGISLATIVE DECLARATION AND POLICY.] (a) 42.22 The legislature hereby finds, determines, and declares: 42.23 (1) that hearing loss occurs in newborn infants more 42.24 frequently than any other health condition for which newborn 42.25 infant screening is currently required; 42.26 (2) that 80 percent of the language ability of a child is 42.27 established by the time the child is 18 months of age, and that 42.28 hearing is vitally important to the health development of 42.29 language skills; 42.30 (3) that early detection of either mild or severe hearing 42.31 loss in a child and early intervention has been determined to be 42.32 highly effective in facilitating a child's healthy development 42.33 in a manner consistent with the child's age and cognitive 42.34 ability; 42.35 (4) that children with hearing loss who do not receive 42.36 early intervention require special educational services, and 43.1 that the costs of such publicly funded services exceed the costs 43.2 of screening infants for hearing loss; and 43.3 (5) that appropriate testing and identification of newborn 43.4 infants with hearing loss will facilitate early intervention, 43.5 and may therefore promote the healthy development of children 43.6 and reduce public expenditures. 43.7 (b) For these reasons, the legislature declares that it is 43.8 the public policy of this state that every newborn infant should 43.9 be screened for hearing loss unless the parents object on the 43.10 grounds that a test would conflict with their consciences or 43.11 religious beliefs. 43.12 Subd. 2. [PROGRAM IMPLEMENTATION.] (a) To accomplish the 43.13 goal of screening all newborn infants for hearing loss, the 43.14 commissioner of health shall work with hospitals, the medical 43.15 community, audiologists, insurance companies, parents, and deaf 43.16 and hard-of-hearing citizens to establish and implement a 43.17 voluntary plan for hospitals and other health care facilities to 43.18 screen all infants for hearing loss. 43.19 (b) The commissioner of health shall appoint a department 43.20 work group to make recommendations to the commissioner on 43.21 formulating a plan to achieve, on a voluntary basis, universal 43.22 screening of infants for hearing loss. The work group shall 43.23 include the following representatives: 43.24 (1) a representative of the health insurance industry 43.25 designated by the health insurance industry; 43.26 (2) a representative of the Minnesota hospital and 43.27 healthcare partnership; 43.28 (3) a total of two representatives from the following 43.29 physician groups designated by the Minnesota medical 43.30 association: pediatrics, family practice, and ENT; 43.31 (4) two audiologists designated by the Minnesota 43.32 speech-language-hearing association and the Minnesota academy of 43.33 audiology; 43.34 (5) a representative of hospital neonatal nurseries; 43.35 (6) a representative of Part H (IDEA) early childhood 43.36 special education; 44.1 (7) the commissioner of health or a designee; 44.2 (8) a representative of the department of human services; 44.3 (9) a public health nurse; 44.4 (10) a parent of a deaf or hard-of-hearing child; 44.5 (11) a deaf or hard-of-hearing person; and 44.6 (12) a representative of the Minnesota commission serving 44.7 deaf and hard-of-hearing people. 44.8 Members of the work group shall not collect a per diem or 44.9 compensation as provided in section 15.0575. 44.10 (c) The plan shall include the following: 44.11 (1) measurable goals and timetables for achieving universal 44.12 screening of infants for hearing loss throughout the state; and 44.13 (2) the design and implementation of training necessary to 44.14 assist hospitals and other health care facilities to screen 44.15 infants for hearing loss according to recognized standards of 44.16 care. 44.17 (d) The work group shall report to the legislature by 44.18 January 1, 1998, on progress made toward achieving universal 44.19 screening of infants in Minnesota to assist the legislature in 44.20 determining whether this goal can be accomplished on a voluntary 44.21 basis. 44.22 Sec. 11. Minnesota Statutes 1996, section 144.125, is 44.23 amended to read: 44.24 144.125 [TESTS OF INFANTS FOR INBORN METABOLIC ERRORS.] 44.25 It is the duty of (1) the administrative officer or other 44.26 person in charge of each institution caring for infants 28 days 44.27 or less of age and (2) the person required in pursuance of the 44.28 provisions of section 144.215, to register the birth of a child, 44.29 to cause to have administered to every infant or child in its 44.30 care tests for hemoglobinopathy, phenylketonuria, and other 44.31 inborn errors of metabolism in accordance with rules prescribed 44.32 by the state commissioner of health. In determining which tests 44.33 must be administered, the commissioner shall take into 44.34 consideration the adequacy of laboratory methods to detect the 44.35 inborn metabolic error, the ability to treat or prevent medical 44.36 conditions caused by the inborn metabolic error, and the 45.1 severity of the medical conditions caused by the inborn 45.2 metabolic error. Testing and the recording and reporting of the 45.3 results of the tests shall be performed at the times and in the 45.4 manner prescribed by the commissioner of health. The 45.5 commissioner shall charge laboratory service fees for conducting 45.6 the tests of infants for inborn metabolic errors so that the 45.7 total of fees collected will approximate the costs of conducting 45.8 the tests and implementing and maintaining a system to follow-up 45.9 infants with inborn metabolic errors. Costs associated with 45.10 capital expenditures and the development of new procedures may 45.11 be prorated over a three-year period when calculating the amount 45.12 of the fees. 45.13 Sec. 12. Minnesota Statutes 1996, section 144.226, 45.14 subdivision 1, is amended to read: 45.15 Subdivision 1. [WHICH SERVICES ARE FOR FEE.] The fees 45.16 forany ofthe following services shall beinthe following or 45.17 an amount prescribed by rule of the commissioner: 45.18 (a) The fee for the issuance of a certified copy or 45.19 certification of a vital record, or a certification that the 45.20 record cannot be found;is $8. No fee shall be charged for a 45.21 certified birth or death record that is reissued within one year 45.22 of the original issue, if the previously issued record is 45.23 surrendered. 45.24 (b) The fee for the replacement of a birthcertificate;45.25 record for all events except adoption is $20. 45.26 (c) The fee for the filing of a delayed registration of 45.27 birth or death;is $20. 45.28 (d) Thealteration, correction, or completionfee for the 45.29 amendment of any vital record, provided thatwhen requested more 45.30 than one year after the filing of the record is $20. No fee 45.31 shall be charged for analteration, correction, or45.32completionamendment requested within one year after the filing 45.33 of the certificate; and. 45.34 (e) The fee for the verification of information fromor45.35noncertified copies ofvital records is $8 when the applicant 45.36 furnishes the specific information to locate the record. When 46.1 the applicant does not furnish specific information, the fee is 46.2 $20 per hour for staff time expended. Specific information 46.3 shall include the correct date of the event and the correct name 46.4 of the registrant. Fees charged shall approximate the costs 46.5 incurred in searching and copying the records. The fee shall be 46.6 payable at time of application. 46.7 (f) The fee for issuance of a certified or noncertified 46.8 copy of any document on file pertaining to a vital record or a 46.9 certification that the record cannot be found is $8. 46.10 Sec. 13. Minnesota Statutes 1996, section 144.226, is 46.11 amended by adding a subdivision to read: 46.12 Subd. 4. [VITAL RECORDS SURCHARGE.] In addition to any fee 46.13 prescribed under subdivision 1, there is a nonrefundable 46.14 surcharge of $3 for each certified and noncertified birth or 46.15 death record. The local or state registrar shall forward this 46.16 amount to the state treasurer to be deposited into the state 46.17 government special revenue fund. This surcharge shall not be 46.18 charged under those circumstances in which no fee for a birth or 46.19 death record is permitted under subdivision 1, paragraph (a). 46.20 This surcharge requirement expires June 30, 2002. 46.21 Sec. 14. Minnesota Statutes 1996, section 144.394, is 46.22 amended to read: 46.23 144.394 [SMOKING PREVENTIONHEALTH PROMOTION AND 46.24 EDUCATION.] 46.25 The commissioner may sell at market value,allnonsmoking46.26or tobacco use prevention advertisinghealth promotion and 46.27 health education materials. Proceeds from the sale of the 46.28advertisingmaterials are appropriated to the department of 46.29 health forits nonsmokingthe program that developed the 46.30 material. 46.31 Sec. 15. Minnesota Statutes 1996, section 144.767, 46.32 subdivision 1, is amended to read: 46.33 Subdivision 1. [REPORT TO EMPLOYER.] Results of tests 46.34 conducted under this section shall be reported by the facility 46.35 to a designated agent of the emergency medical services agency 46.36 that employs or uses the emergency medical services personnel 47.1 and to the emergency medical services personnel who report the 47.2 significant exposure. The test results shall be reported 47.3 without personally identifying information and may not be used 47.4 as evidence in any criminal prosecution. 47.5 Sec. 16. Minnesota Statutes 1996, section 145.411, is 47.6 amended by adding a subdivision to read: 47.7 Subd. 6. [COMMISSIONER.] "Commissioner" means the 47.8 commissioner of health. 47.9 Sec. 17. [145.4131] [RECORDING AND REPORTING ABORTION 47.10 DATA.] 47.11 Subdivision 1. [FORMS.] (a) Within 90 days of the 47.12 effective date of this section, the commissioner shall prepare a 47.13 reporting form for physicians performing abortions. A copy of 47.14 this section shall be attached to the form. A physician 47.15 performing an abortion shall obtain a form from the commissioner. 47.16 (b) The form shall require the following information: 47.17 (1) the number of abortions performed by the physician in 47.18 the previous calendar year, reported by month; 47.19 (2) the method used for each abortion; 47.20 (3) the approximate gestational age of each child subject 47.21 to abortion, expressed in one of the following increments: 47.22 (i) less than nine weeks; 47.23 (ii) nine to ten weeks; 47.24 (iii) 11 to 12 weeks; 47.25 (iv) 13 to 15 weeks; 47.26 (v) 16 to 20 weeks; 47.27 (vi) 21 to 24 weeks; 47.28 (vii) 25 to 30 weeks; 47.29 (viii) 31 to 36 weeks; or 47.30 (ix) 37 weeks to term; 47.31 (4) the age of the mother on whom the abortion was 47.32 performed at the time the abortion was performed; 47.33 (5) the specific reason for the abortion, including, but 47.34 not limited to, the following: 47.35 (i) the pregnancy was a result of rape; 47.36 (ii) the pregnancy was a result of incest; 48.1 (iii) the mother cannot afford the child; 48.2 (iv) the mother does not want the child; 48.3 (v) the mother's emotional health is at stake; 48.4 (vi) the mother will suffer substantial and irreversible 48.5 impairment of a major bodily function if the pregnancy 48.6 continues; or 48.7 (vii) other; 48.8 (6) whether the abortion was paid for by: 48.9 (i) private insurance; 48.10 (ii) a public health plan; or 48.11 (iii) another form of payment; 48.12 (7) whether coverage was under: 48.13 (i) a fee-for-service insurance company; 48.14 (ii) a managed care company; or 48.15 (iii) another type of health carrier; 48.16 (8) complications, if any, for each abortion and for the 48.17 aftermath of each abortion. Space for a description of any 48.18 complications shall be available on the form; 48.19 (9) the fee collected for each abortion; 48.20 (10) the type of anesthetic used, if any, for each 48.21 abortion; 48.22 (11) the method used to dispose of fetal tissue and 48.23 remains; 48.24 (12) the medical specialty of the physician performing the 48.25 abortion; and 48.26 (13) whether the physician performing the abortion has had 48.27 a physician's license suspended or revoked or has had other 48.28 professional sanctions in this or another state. 48.29 Subd. 2. [SUBMISSION.] A physician performing an abortion 48.30 shall complete and submit the form to the commissioner no later 48.31 than April 1 for abortions performed in the previous calendar 48.32 year. 48.33 Subd. 3. [ADDITIONAL REPORTING.] Nothing in this section 48.34 shall be construed to preclude the voluntary or required 48.35 submission of other reports or forms regarding abortions. 48.36 Sec. 18. [145.4132] [RECORDING AND REPORTING ABORTION 49.1 COMPLICATION DATA.] 49.2 Subdivision 1. [FORMS.] (a) Within 90 days of the 49.3 effective date of this section, the commissioner shall prepare 49.4 an abortion complication reporting form for all physicians 49.5 licensed and practicing in the state. A copy of this section 49.6 shall be attached to the form. 49.7 (b) The board of medical practice shall ensure that the 49.8 abortion complication reporting form is distributed: 49.9 (1) to all physicians licensed to practice in the state, 49.10 within 120 days after the effective date of this section and by 49.11 December 1 of each subsequent year; and 49.12 (2) to a physician who is newly licensed to practice in the 49.13 state, at the same time as official notification to the 49.14 physician that the physician is so licensed. 49.15 Subd. 2. [REQUIRED REPORTING.] A physician licensed and 49.16 practicing in the state who encounters an illness or injury that 49.17 is related to an induced abortion shall complete and submit an 49.18 abortion complication reporting form to the commissioner. 49.19 Subd. 3. [SUBMISSION.] A physician required to submit an 49.20 abortion complication reporting form to the commissioner shall 49.21 do so as soon as practicable after the encounter with the 49.22 abortion related illness or injury, but in no case more than 60 49.23 days after the encounter. 49.24 Subd. 4. [ADDITIONAL REPORTING.] Nothing in this section 49.25 shall be construed to preclude the voluntary or required 49.26 submission of other reports or forms regarding abortion 49.27 complications. 49.28 Sec. 19. [145.4133] [REPORTING OUT-OF-STATE ABORTIONS.] 49.29 The commissioner of human services shall report to the 49.30 commissioner by April 1 each year the following information 49.31 regarding abortions paid for with state funds and performed out 49.32 of state in the previous calendar year: 49.33 (1) the total number of abortions performed out of state 49.34 and partially or fully paid for with state funds through the 49.35 medical assistance, general assistance medical care, or 49.36 MinnesotaCare program or any other program; 50.1 (2) the total amount of state funds used to pay for the 50.2 abortions and expenses incidental to the abortions; and 50.3 (3) the gestational age of each unborn child at the time of 50.4 abortion. 50.5 Sec. 20. [145.4134] [COMMISSIONER'S PUBLIC REPORT.] 50.6 (a) By July 1 of each year, the commissioner shall issue a 50.7 public report providing statistics for the previous calendar 50.8 year compiled from the data submitted under sections 145.4131 to 50.9 145.4133. Each report shall provide the statistics for all 50.10 previous calendar years, adjusted to reflect any additional 50.11 information from late or corrected reports. The commissioner 50.12 shall ensure that none of the information included in the public 50.13 reports can reasonably lead to identification of an individual 50.14 having performed or having had an abortion. All data included 50.15 on the forms under sections 145.4131 to 145.4133 must be 50.16 included in the public report. The commissioner shall submit 50.17 the report to the senate health care committee and the house 50.18 health and human services committee. 50.19 (b) The commissioner may, by rules adopted under chapter 50.20 14, alter the submission dates established under sections 50.21 145.4131 to 145.4133 for administrative convenience, fiscal 50.22 savings, or other valid reason, provided that physicians and the 50.23 commissioner of health submit the required information once each 50.24 year and the commissioner issues a report once each year. 50.25 Sec. 21. [145.4135] [ENFORCEMENT; PENALTIES.] 50.26 (a) A physician who fails to submit the required forms 50.27 under sections 145.4131 and 145.4132 within 30 days following 50.28 the due date is subject to a late fee of $500 for each 30-day 50.29 period, or portion thereof, that the forms are overdue. A 50.30 physician required to report under this section who does not 50.31 submit a report, or submits only an incomplete report, more than 50.32 one year following the due date, may be fined and, in an action 50.33 brought by the commissioner, be directed by a court of competent 50.34 jurisdiction to submit a complete report within a period stated 50.35 by court order or be subject to sanctions for civil contempt. 50.36 (b) If the commissioner fails to issue the public report 51.1 required under this section, or fails in any way to enforce this 51.2 section, a group of ten or more citizens of the state may seek 51.3 an injunction in a court of competent jurisdiction against the 51.4 commissioner requiring that a complete report be issued within a 51.5 period stated by court order or requiring that enforcement 51.6 action be taken. Failure to abide by an injunction shall 51.7 subject the commissioner to sanctions for civil contempt. 51.8 (c) A physician who knowingly or recklessly submits a false 51.9 report under this section is guilty of a misdemeanor. 51.10 (d) The commissioner may take reasonable steps to ensure 51.11 compliance with sections 145.4131 to 145.4133 and to verify data 51.12 provided, including but not limited to inspection of places 51.13 where abortions are performed in accordance with chapter 14. 51.14 Sec. 22. [145.4136] [SEVERABILITY.] 51.15 If any one or more provision, section, subsection, 51.16 sentence, clause, phrase, or word of sections 145.4131 to 51.17 145.4135, or the application thereof to any person or 51.18 circumstance is found to be unconstitutional, the same is hereby 51.19 declared to be severable and the balance of sections 145.4131 to 51.20 145.4135 shall remain effective notwithstanding such 51.21 unconstitutionality. The legislature hereby declares that it 51.22 would have passed sections 145.4131 to 145.4135, and each 51.23 provision, section, subsection, sentence, clause, phrase, or 51.24 word thereof, irrespective of the fact that any one or more 51.25 provision, section, subsection, sentence, clause, phrase, or 51.26 word be declared unconstitutional. 51.27 Sec. 23. [145.9241] [PREVENTION OF PERINATAL TRANSMISSION 51.28 OF HIV.] 51.29 The commissioner shall conduct a statewide education 51.30 campaign to educate pregnant women and health care providers 51.31 about the risk of perinatal transmission of HIV and the value of 51.32 HIV screening early in pregnancy. The commissioner shall also 51.33 provide demonstration grants to health care providers to allow 51.34 these providers to develop procedures for incorporating HIV 51.35 awareness and education into prenatal care. 51.36 Sec. 24. Minnesota Statutes 1996, section 145.925, 52.1 subdivision 1a, is amended to read: 52.2 Subd. 1a. [FAMILY PLANNING SERVICES; DEFINED.] "Family 52.3 planning services" means counseling by trained personnel 52.4 regarding family planning; counseling and education for minors 52.5 by trained personnel regarding abstinence; distribution of 52.6 information relating to family planning, abstinence education 52.7 for minors, referral to licensed physicians or local health 52.8 agencies for consultation, examination, medical treatment, 52.9 genetic counseling, and prescriptions for the purpose of family 52.10 planning; and the distribution of family planning products, such 52.11 as charts, thermometers, drugs, medical preparations, and 52.12 contraceptive devices. For purposes of sections 145A.01 to 52.13 145A.14, family planning shall mean voluntary action by 52.14 individuals to prevent or aid conception but does not include 52.15 the performance, or make referrals for encouragement of 52.16 voluntary termination of pregnancy. 52.17 Sec. 25. [145A.16] [UNIVERSALLY OFFERED HOME VISITING 52.18 PROGRAMS FOR INFANT CARE.] 52.19 Subdivision 1. [ESTABLISHMENT.] The commissioner shall 52.20 establish a grant program for universally offered home visiting 52.21 programs funded at a level that could serve, if accepted, all 52.22 live births in designated geographic areas. The commissioner 52.23 shall designate the geographic area to be served by each 52.24 program. At least one program must provide home visiting 52.25 services to families within the seven-county metropolitan area, 52.26 and at least one program must provide home visiting services to 52.27 families outside the metropolitan area. The purpose of the 52.28 program is to strengthen families and to promote positive 52.29 parenting and healthy child development. 52.30 Subd. 2. [STEERING COMMITTEE.] The commissioner shall 52.31 establish an ad hoc steering committee to develop and implement 52.32 a comprehensive plan for the universally offered home visiting 52.33 programs. The members of the ad hoc steering committee shall 52.34 include, at a minimum, representatives of local public health 52.35 departments, public health nurses, other health care providers, 52.36 paraprofessionals, community-based family workers, 53.1 representatives of health insurance plans, and other individuals 53.2 with expertise in the field of home visiting, early childhood 53.3 health and development, and child abuse prevention. 53.4 Subd. 3. [PROGRAM REQUIREMENTS.] The commissioner shall 53.5 award grants using a request for proposal system. Existing home 53.6 visiting programs may apply for the grants. Health information 53.7 and assessment, counseling, social support, educational 53.8 services, and referrals to community resources must be offered 53.9 to all families, regardless of need or risk, beginning 53.10 prenatally or as soon after birth as possible, and continuing as 53.11 needed. Each program applying for a grant must have access to 53.12 adequate community resources to complement the home visiting 53.13 services and must be designed to: 53.14 (1) identify all newborn infants within the geographic area 53.15 served by the program. Identification may be made prenatally or 53.16 at the time of birth; 53.17 (2) offer a home visit by a trained home visitor. 53.18 In offering a home visit, the program offering the home 53.19 visit must provide the mother or pregnant woman with a written 53.20 consent form containing the following information: the parent's 53.21 right to refuse a home visit, the goals of the home visiting 53.22 program, how the information obtained from the home visit will 53.23 be used, and who will receive or have access to the information 53.24 collected. If the mother or pregnant woman agrees to accept a 53.25 home visit, she must sign the consent form and shall be given a 53.26 copy of the signed form. If home visiting is accepted, the 53.27 first visit must occur prenatally with the consent of the 53.28 pregnant woman or as soon after birth as possible and must 53.29 include a public health nursing assessment by a public health 53.30 nurse; 53.31 (3) offer, at a minimum, information on infant care, child 53.32 growth and development, positive parenting, the prevention of 53.33 disease and exposure to environmental hazards, and support 53.34 services available in the community; 53.35 (4) provide information about and referral to health care 53.36 services, if needed, including family planning, pediatric 54.1 preventive services, immunizations, and developmental 54.2 assessments, and provide information on the availability of 54.3 public assistance programs as appropriate; 54.4 (5) recruit home visit workers who will represent, to the 54.5 extent possible, all the races, cultures, and languages spoken 54.6 by eligible families in the designated geographic areas; and 54.7 (6) train and supervise home visitors according to the 54.8 requirements established under subdivision 6. 54.9 Subd. 4. [PATIENT CONSENT REQUIRED.] Other than 54.10 information from the birth record, no information on the birth 54.11 or on the medical or psychological condition of the mother or 54.12 child obtained from, or in connection with, a home visit may be 54.13 released to any state or local agency or representative or any 54.14 other individual or entity without the express consent of the 54.15 child's parent or guardian. 54.16 Subd. 5. [COORDINATION.] To minimize duplication, a 54.17 program receiving a grant must establish a coalition that 54.18 includes parents, health care providers that provide services to 54.19 families with young children in the service area, and 54.20 representatives of local schools, governmental and nonprofit 54.21 agencies, community-based organizations, health insurance plans, 54.22 and local hospitals. The coalition must designate the roles of 54.23 all provider agencies, family identification methods, referral 54.24 mechanisms, and payment responsibilities appropriate for the 54.25 existing systems in the program's service area. The coalition 54.26 must also coordinate with other programs offered by school 54.27 boards under section 121.882, subdivision 2b, and programs 54.28 offered under section 145A.15. 54.29 Subd. 6. [TRAINING.] The commissioner shall establish 54.30 training requirements for home visitors and minimum requirements 54.31 for supervision by a public health nurse. The requirements for 54.32 nurses must be consistent with chapter 148. Training must 54.33 include child development, positive parenting techniques, and 54.34 diverse cultural practices in child rearing and family systems. 54.35 A program may use grant money to train home visitors. 54.36 Subd. 7. [EVALUATION.] (a) The commissioner shall evaluate 55.1 the effectiveness of the home visiting programs, taking into 55.2 consideration the following goals: 55.3 (1) appropriate child growth, development, and access to 55.4 health care; 55.5 (2) appropriate utilization of preventive health care and 55.6 medical care for acute illnesses; 55.7 (3) lower rates of substantiated child abuse and neglect; 55.8 (4) up-to-date immunizations; 55.9 (5) a reduction in unintended pregnancies; 55.10 (6) increasing families' understanding of lead poisoning 55.11 prevention; 55.12 (7) lower rates of unintentional injuries; and 55.13 (8) fewer hospitalizations and emergency room visits. 55.14 (b) The commissioner shall report to the legislature by 55.15 February 15, 1998, on the comprehensive plan for the universally 55.16 offered home visiting programs and recommend any draft 55.17 legislation needed to implement the plan. The commissioner 55.18 shall report to the legislature biennially beginning December 55.19 15, 2001, on the effectiveness of the universally offered home 55.20 visiting programs. In the report due December 15, 2001, the 55.21 commissioner shall include recommendations on the feasibility 55.22 and cost of expanding the program statewide. 55.23 Subd. 8. [TECHNICAL ASSISTANCE.] The commissioner shall 55.24 provide administrative and technical assistance to each program, 55.25 including assistance conducting short- and long-term evaluations 55.26 of the home visiting program required under subdivision 7. The 55.27 commissioner may request research and evaluation support from 55.28 the University of Minnesota. 55.29 Subd. 9. [MATCHING FUNDS.] The commissioner and the grant 55.30 programs shall seek to supplement any state funding with private 55.31 and other nonstate funding sources, including other grants and 55.32 insurance coverage for services provided. Program funding may 55.33 be used only to supplement, not to replace, existing funds being 55.34 used for home visiting. 55.35 Sec. 26. Minnesota Statutes 1996, section 151.40, is 55.36 amended to read: 56.1 151.40 [POSSESSION AND SALE OF HYPODERMIC SYRINGES AND 56.2 NEEDLES.] 56.3 Subdivision 1. [GENERALLY.] Except as otherwise provided 56.4 in subdivision 2, itshall beis unlawful for any person to 56.5 possess, control, manufacture, sell, furnish, dispense, or 56.6 otherwise dispose of hypodermic syringes or needles or any 56.7 instrument or implement which can be adapted for subcutaneous 56.8 injections, except by the following persons when acting in the 56.9 course of their practice or employment: licensed practitioners, 56.10 registered pharmacies and their employees or agents, licensed 56.11 pharmacists, licensed doctors of veterinary medicine or their 56.12 assistants, registered nurses, registered medical technologists, 56.13 medical interns, licensed drug wholesalers, their employees or 56.14 agents, licensed hospitals, licensed nursing homes, bona fide 56.15 hospitals where animals are treated, licensed morticians, 56.16 syringe and needle manufacturers, their dealers and agents, 56.17 persons engaged in animal husbandry, clinical laboratories, 56.18 persons engaged in bona fide research or education or industrial 56.19 use of hypodermic syringes and needles provided such persons 56.20 cannot use hypodermic syringes and needles for the 56.21 administration of drugs to human beings unless such drugs are 56.22 prescribed, dispensed, and administered by a person lawfully 56.23 authorized to do so, persons who administer drugs pursuant to an 56.24 order or direction of a licensed doctor of medicine or of a 56.25 licensed doctor of osteopathy duly licensed to practice medicine. 56.26 Subd. 2. [SALES OF LIMITED QUANTITIES OF CLEAN NEEDLES AND 56.27 SYRINGES.] (a) A registered pharmacy or its agent or a licensed 56.28 pharmacist may sell, without a prescription, unused hypodermic 56.29 needles and syringes in quantities of ten or fewer, provided 56.30 that the pharmacy or pharmacist require the purchaser to return 56.31 for disposal an equal or greater number of used hypodermic 56.32 needles and syringes as is purchased, and the pharmacy or 56.33 pharmacist complies with all of the requirements of this 56.34 subdivision. 56.35 (b) At any location where hypodermic needles and syringes 56.36 are kept for retail sale under this subdivision, the needles and 57.1 syringes shall be stored in a manner that makes them available 57.2 only to authorized personnel and not openly available to 57.3 customers. 57.4 (c) No registered pharmacy or licensed pharmacist may 57.5 advertise to the public the availability for retail sale, 57.6 without a prescription, of hypodermic needles or syringes in 57.7 quantities of ten or fewer. 57.8 (d) A registered pharmacy or licensed pharmacist that sells 57.9 hypodermic needles or syringes under this section may give the 57.10 purchaser the materials developed by the commissioner of health 57.11 under section 31. 57.12 Sec. 27. Minnesota Statutes 1996, section 153A.17, is 57.13 amended to read: 57.14 153A.17 [EXPENSES; FEES.] 57.15 The expenses for administering the certification 57.16 requirements including the complaint handling system for hearing 57.17 aid dispensers in sections 153A.14 and 153A.15 and the consumer 57.18 information center under section 153A.18 must be paid from 57.19 initial application and examination fees, renewal fees, 57.20 penalties, and fines. All fees are nonrefundable. The 57.21 certificate application fee is$280$165 for audiologists 57.22 registered under section 148.511 and $490 for all others, the 57.23 examination fee is $200 for the written portion and $200 for the 57.24 practical portion each time one or the other is taken, and the 57.25 trainee application fee is $100, except that the certification57.26application fee for a registered audiologist is $280 minus the57.27audiologist registration fee of $101.In addition, both57.28certification and examination fees are subject to57.29 Notwithstanding the policy set forth in section 16A.1285, 57.30 subdivision 2, a surcharge of$60$165 for audiologists 57.31 registered under section 148.511 and $330 for all others shall 57.32 be paid at the time of application or renewal until June 30, 57.33 2003, to recover, over a five-year period,the commissioner's 57.34 accumulated direct expenditures for administering the 57.35 requirements of this chapter, but not registration of hearing57.36instrument dispensers under section 214.13, before November 1,58.11994. The penalty fee for late submission of a renewal 58.2 application is$70$200. All fees, penalties, and fines 58.3 received must be deposited in the state government special 58.4 revenue fund. The commissioner may prorate the certification 58.5 fee for new applicants based on the number of quarters remaining 58.6 in the annual certification period. 58.7 Sec. 28. Minnesota Statutes 1996, section 157.16, 58.8 subdivision 3, is amended to read: 58.9 Subd. 3. [ESTABLISHMENT FEES; DEFINITIONS.] (a) The 58.10 following fees are required for food and beverage service 58.11 establishments, hotels, motels, lodging establishments, and 58.12 resorts licensed under this chapter. Food and beverage service 58.13 establishments must pay the highest applicable fee under 58.14 paragraph (e), clause (1), (2), (3), or (4), and establishments 58.15 serving alcohol must pay the highest applicable fee under 58.16 paragraph (e), clause (6) or (7). 58.17 (b) All food and beverage service establishments, except 58.18 special event food stands, and all hotels, motels, lodging 58.19 establishments, and resorts shall pay an annual base fee of $100. 58.20 (c) A special event food stand shall pay a flat fee of $60 58.21 annually. "Special event food stand" means a fee category where 58.22 food is prepared or served in conjunction with celebrations, 58.23 county fairs, or special events from a special event food stand 58.24 as defined in section 157.15. 58.25 (d) A special event food stand-limited shall pay a flat fee 58.26 of $30. 58.27 (e) In addition to the base fee in paragraph (b), each food 58.28 and beverage service establishment, other than a special event 58.29 food stand, and each hotel, motel, lodging establishment, and 58.30 resort shall pay an additional annual fee for each fee category 58.31 as specified in this paragraph: 58.32 (1) Limited food menu selection, $30. "Limited food menu 58.33 selection" means a fee category that provides one or more of the 58.34 following: 58.35 (i) prepackaged food that receives heat treatment and is 58.36 served in the package; 59.1 (ii) frozen pizza that is heated and served; 59.2 (iii) a continental breakfast such as rolls, coffee, juice, 59.3 milk, and cold cereal; 59.4 (iv) soft drinks, coffee, or nonalcoholic beverages; or 59.5 (v) cleaning for eating, drinking, or cooking utensils, 59.6 when the only food served is prepared off site. 59.7 (2) Smallmenu selection with limited equipment59.8 establishment, including boarding establishments, $55. 59.9 "Smallmenu selection with limited equipmentestablishment" 59.10 means a fee category that has no salad bar and meets one or more 59.11 of the following: 59.12 (i) possesses food service equipment that consists of no 59.13 more than a deep fat fryer, a grill, two hot holding containers, 59.14 and one or more microwave ovens; 59.15 (ii) serves dipped ice cream or soft serve frozen desserts; 59.16 (iii) serves breakfast in an owner-occupied bed and 59.17 breakfast establishment;or59.18 (iv) is a boarding establishment; or 59.19 (v) meets the equipment criteria in clause (3), item (i) or 59.20 (ii), and has a maximum patron seating capacity of not more than 59.21 50. 59.22 (3)SmallMedium establishmentwith full menu selection, 59.23 $150. "SmallMedium establishmentwith full menu selection" 59.24 means a fee category that meets one or more of the following: 59.25 (i) possesses food service equipment that includes a range, 59.26 oven, steam table, salad bar, or salad preparation area; 59.27 (ii) possesses food service equipment that includes more 59.28 than one deep fat fryer, one grill, or two hot holding 59.29 containers; or 59.30 (iii) is an establishment where food is prepared at one 59.31 location and served at one or more separate locations. 59.32 Establishments meeting criteria in clause (2), item (v), 59.33 are not included in this fee category. 59.34 (4) Large establishmentwith full menu selection, $250. 59.35 "Large establishmentwith full menu selection" means either: 59.36 (i) a fee category that (A) meets the criteria in clause 60.1 (3), items (i) or (ii), for asmallmedium establishmentwith60.2full menu selection, (B) seats more than 175 people, and (C) 60.3 offers the full menu selection an average of five or more days a 60.4 week during the weeks of operation; or 60.5 (ii) a fee category that (A) meets the criteria in clause 60.6 (3), item (iii), for asmallmedium establishmentwith full menu60.7selection, and (B) prepares and serves 500 or more meals per day. 60.8 (5) Other food and beverage service, including food carts, 60.9 mobile food units, seasonal temporary food stands, and seasonal 60.10 permanent food stands, $30. 60.11 (6) Beer or wine table service, $30. "Beer or wine table 60.12 service" means a fee category where the only alcoholic beverage 60.13 service is beer or wine, served to customers seated at tables. 60.14 (7) Alcoholic beverage service, other than beer or wine 60.15 table service, $75. 60.16 "Alcohol beverage service, other than beer or wine table 60.17 service" means a fee category where alcoholic mixed drinks are 60.18 served or where beer or wine are served from a bar. 60.19 (8) Lodging per sleeping accommodation unit, $4, including 60.20 hotels, motels, lodging establishments, and resorts, up to a 60.21 maximum of $400. "Lodging per sleeping accommodation unit" 60.22 means a fee category including the number of guest rooms, 60.23 cottages, or other rental units of a hotel, motel, lodging 60.24 establishment, or resort; or the number of beds in a dormitory. 60.25 (9) First public swimming pool, $100; each additional 60.26 public swimming pool, $50. "Public swimming pool" means a fee 60.27 category that has the meaning given in Minnesota Rules, part 60.28 4717.0250, subpart 8. 60.29 (10) First spa, $50; each additional spa, $25. "Spa pool" 60.30 means a fee category that has the meaning given in Minnesota 60.31 Rules, part 4717.0250, subpart 9. 60.32 (11) Private sewer or water, $30. "Individual private 60.33 water" means a fee category with a water supply other than a 60.34 community public water supply as defined in Minnesota Rules, 60.35 chapter 4720. "Individual private sewer" means a fee category 60.36 with an individual sewage treatment system which uses subsurface 61.1 treatment and disposal. 61.2 (f) A fee is not required for a food and beverage service 61.3 establishment operated by a school as defined in sections 120.05 61.4 and 120.101. 61.5 (g) A fee of $150 for review of the construction plans must 61.6 accompany the initial license application for food and beverage 61.7 service establishments, hotels, motels, lodging establishments, 61.8 or resorts. 61.9 (h) When existing food and beverage service establishments, 61.10 hotels, motels, lodging establishments, or resorts are 61.11 extensively remodeled, a fee of $150 must be submitted with the 61.12 remodeling plans. 61.13 (i) Seasonal temporary food stands, special event food 61.14 stands, and special event food stands-limited are not required 61.15 to submit construction or remodeling plans for review. 61.16 Sec. 29. [157.25] [FOOD SAFETY QUALITY ASSURANCE.] 61.17 Subdivision 1. [DEFINITIONS.] For purposes of this 61.18 section, the following terms have the meanings given them: 61.19 (1) "critical control point" means a point or procedure in 61.20 a specific food system where loss of control may result in an 61.21 unacceptable health risk; 61.22 (2) "HACCP" means hazard analysis critical control point; 61.23 (3) "HACCP plan" means a written document that delineates 61.24 the formal procedures for following the HACCP principles 61.25 developed by the national advisory committee on microbiological 61.26 criteria for foods; and 61.27 (4) "hazard" means any biological, chemical, or physical 61.28 property that may cause an unacceptable consumer health risk. 61.29 Subd. 2. [PILOT PROJECT.] The commissioner of health shall 61.30 request proposals from the regulated food and beverage service 61.31 establishment industry to participate in a cooperative effort to 61.32 develop HACCP plans using quality assurance principles for 61.33 monitoring risks and hazards. The commissioner shall select up 61.34 to 25 proposals for HACCP plans. 61.35 Sec. 30. Minnesota Statutes 1996, section 256B.0625, 61.36 subdivision 14, is amended to read: 62.1 Subd. 14. [DIAGNOSTIC, SCREENING, AND PREVENTIVE 62.2 SERVICES.] (a) Medical assistance covers diagnostic, screening, 62.3 and preventive services. 62.4 (b) "Preventive services" include services related to 62.5 pregnancy, including: 62.6 (1) services for those conditions which may complicate a 62.7 pregnancy and which may be available to a pregnant woman 62.8 determined to be at risk of poor pregnancy outcome; and 62.9 (2) prenatal HIV risk assessment, education, counseling, 62.10 and testing. Preventive services available to a woman at risk 62.11 of poor pregnancy outcome may differ in an amount, duration, or 62.12 scope from those available to other individuals eligible for 62.13 medical assistance. 62.14 (c) "Screening services" include, but are not limited to, 62.15 blood lead tests. 62.16 Sec. 31. Minnesota Statutes 1996, section 256B.69, is 62.17 amended by adding a subdivision to read: 62.18 Subd. 5c. [MEDICAL EDUCATION AND RESEARCH TRUST FUND.] (a) 62.19 In January 1999 and each year thereafter, the commissioner of 62.20 human services shall transfer an amount equal to the reduction 62.21 in prepaid medical assistance and prepaid general assistance 62.22 medical care capitation rates, excluding nursing facility and 62.23 elderly waiver payments, resulting from paragraph (b) to the 62.24 medical education and research trust fund established under 62.25 section 62J.69. The medical education and research trust fund 62.26 shall disburse funds to eligible programs within 60 days of 62.27 receipt of funds from the commissioner of human services. 62.28 (b) The base rate prior to plan specific adjustments for 62.29 prepaid medical assistance and prepaid general assistance 62.30 medical care capitation rates shall be reduced 4.5 percent for 62.31 Hennepin county, 1.4 percent for the remaining metropolitan 62.32 counties, and 1.2 percent for the nonmetropolitan Minnesota 62.33 counties. 62.34 (c) In the event a federal waiver is not approved by June 62.35 1, 1998, the transfers in 1999 shall be delayed one year. 62.36 Sec. 32. Minnesota Statutes 1996, section 256J.69, is 63.1 amended by adding a subdivision to read: 63.2 Subd. 3. [MEDICAL ASSISTANCE AND GENERAL ASSISTANCE 63.3 SERVICE.] The commissioner of health, in consultation with the 63.4 medical education and research costs advisory committee, shall 63.5 develop a system to recognize those teaching programs which 63.6 serve higher numbers or high proportions of public program 63.7 recipients and shall report to the legislative commission on 63.8 health care access by January 15, 1998, on an allocation formula 63.9 to implement this system. 63.10 Sec. 33. [325F.785] [SALES OF HIV HOME COLLECTION KITS.] 63.11 Subdivision 1. [DEFINITION.] For purposes of this section, 63.12 "seller" means a person who regularly sells goods at retail to 63.13 purchasers. 63.14 Subd. 2. [PROVISION OF INFORMATION REQUIRED.] Effective 63.15 January 1, 1998, a seller may provide each purchaser of an HIV 63.16 home collection kit, at the time of purchase, with written 63.17 information about the phone numbers for public HIV counseling 63.18 and testing sites and the state's HIV hotline. 63.19 Sec. 34. Minnesota Statutes 1996, section 326.37, 63.20 subdivision 1, is amended to read: 63.21 Subdivision 1. [RULES.] The state commissioner of health 63.22 may, by rule, prescribe minimum standards which shall be 63.23 uniform, and which standards shall thereafter be effective for 63.24 all new plumbing installations, including additions, extensions, 63.25 alterations, and replacements connected with any water or sewage 63.26 disposal system owned or operated by or for any municipality, 63.27 institution, factory, office building, hotel, apartment 63.28 building, or any other place of business regardless of location 63.29 or the population of the city or town in which located. 63.30 Notwithstanding the provisions of Minnesota Rules, part 63.31 4715.3130, as they apply to review of plans and specifications, 63.32 the commissioner may allow plumbing construction, alteration, or 63.33 extension to proceed without approval of the plans or 63.34 specifications by the commissioner. 63.35 The commissioner shall administer the provisions of 63.36 sections 326.37 to 326.45 and for such purposes may employ 64.1 plumbing inspectors and other assistants. 64.2 Sec. 35. [AMERICAN INDIAN DIABETES PREVENTION ADVISORY 64.3 TASK FORCE.] 64.4 Subdivision 1. [ESTABLISHMENT.] The commissioner of health 64.5 shall convene an American Indian diabetes prevention advisory 64.6 task force. The task force must include representatives from 64.7 the American Indian tribes located in the state and urban 64.8 American Indian representatives. 64.9 Subd. 2. [DUTIES.] The task force shall advise the 64.10 commissioner on the adaptation of curricula and the 64.11 dissemination of information designed to reduce the risk factors 64.12 associated with diabetes among American Indian school children 64.13 in grades 1 through 4. The curricula and information must be 64.14 sensitive to traditional American Indian values and culture and 64.15 must encourage full participation by the American Indian 64.16 community. 64.17 Sec. 36. [RULE CHANGE; RADIOGRAPHIC ABSORPTIONMETRY.] 64.18 The commissioner of health shall amend Minnesota Rules, 64.19 part 4730.1210, subpart 2, item G, to permit the use of direct 64.20 exposure x-ray film in radiographic absorptionmetry for the 64.21 diagnosis and management of osteoporosis. The commissioner may 64.22 use the rulemaking procedures under Minnesota Statutes, section 64.23 14.388. 64.24 Sec. 37. [MINORITY HEALTH INITIATIVE.] 64.25 Subdivision 1. [PURPOSE.] The purpose of this section is 64.26 to plan for the expansion and increase of information and 64.27 statistical research on minority health in Minnesota. The plan 64.28 must build upon the recommendations of the 1997 populations of 64.29 color in Minnesota health status report. 64.30 Subd. 2. [REPORT TO THE LEGISLATURE.] (a) The commissioner 64.31 of health, through the office of minority health, shall prepare 64.32 and transmit to the legislature, according to Minnesota 64.33 Statutes, section 3.195, and no later than January 15, 1998, a 64.34 written report addressing the following: 64.35 (1) identifying the legal and administrative barriers that 64.36 hinder the sharing of information on minority health issues 65.1 among executive branch agencies, and recommending remedies to 65.2 these barriers; 65.3 (2) assessing the current database of information on 65.4 minority health issues, evaluating data collection standards and 65.5 procedures in the department of health, identifying minority 65.6 health issues that should be given priority for increased 65.7 research to close the gaps and disparities including cancer 65.8 incidence among populations of color, and recommending methods 65.9 for expanding the current database of information on minority 65.10 health; and 65.11 (3) planning a grant program targeted at supporting 65.12 minority health and wellness programs that focus on prevention 65.13 of illness and disease, health education, and health promotion. 65.14 (b) As part of the report in paragraph (a), the 65.15 commissioner, through the office of minority health, shall study 65.16 how the department of health could be better organized to 65.17 accomplish the tasks specified in paragraph (a) and shall 65.18 propose an organizational structure to accomplish these tasks. 65.19 (c) The commissioner, through the office of minority 65.20 health, may appoint advisory committees as appropriate to 65.21 accomplish the tasks in paragraphs (a) and (b). The terms, 65.22 compensation, and removal of members are governed by Minnesota 65.23 Statutes, section 15.059, except that members do not receive per 65.24 diem compensation. 65.25 Sec. 38. [MATERIALS RELATED TO COUNSELING AND TESTING.] 65.26 The commissioner of health shall provide technical 65.27 assistance to pharmacies and to sellers related to compliance 65.28 with Minnesota Statutes, sections 151.40 and 325F.785. The 65.29 commissioner shall develop printed materials, including the 65.30 written information described under Minnesota Statutes, section 65.31 325F.785, and shall provide these printed materials at no charge 65.32 to pharmacies that sell hypodermic needles or syringes under 65.33 Minnesota Statutes, section 151.40 and sellers of HIV home 65.34 collection kits under Minnesota Statutes, section 325F.785. A 65.35 pharmacy or seller may request and the commissioner may 65.36 authorize use of other methods for providing written information 66.1 to purchasers. 66.2 Sec. 39. [STUDY OF HIV AND HBV PREVENTION PROGRAM.] 66.3 The commissioner of health shall evaluate the effectiveness 66.4 of the HIV and HBV prevention program established under 66.5 Minnesota Statutes, sections 214.17 to 214.25. The commissioner 66.6 shall evaluate the effectiveness of the program in maintaining 66.7 public confidence in the safety of health care provider 66.8 settings, educating the public about HIV infection risk in such 66.9 settings, prevention of HIV and HBV infections, and fairly and 66.10 efficiently working with affected health care providers. The 66.11 results in Minnesota shall be compared to similar efforts in 66.12 other states. The commissioner shall present recommendations to 66.13 the legislature by January 15, 1998, on whether the program 66.14 should be continued, and whether modifications to the program 66.15 are necessary if a recommendation is made to continue the 66.16 program. 66.17 Sec. 40. [DEMONSTRATION PROJECTS FOR HIV EDUCATION IN 66.18 SCHOOLS.] 66.19 The commissioner of children, families, and learning shall 66.20 establish a demonstration project to provide grants to school 66.21 districts to develop effective strategies and programs to 66.22 prevent and reduce the risk of HIV/AIDS as required under 66.23 Minnesota Statutes, section 121.203. In selecting school 66.24 districts to participate in the demonstration project, the 66.25 commissioner shall give first priority to school districts 66.26 located outside of the seven-county metropolitan area, and 66.27 second priority to school districts in the seven-county 66.28 metropolitan area that are located outside of the cities of 66.29 Minneapolis and St. Paul. The commissioner shall issue a 66.30 request for proposals by October 1, 1997, and shall select 66.31 school districts by December 15, 1997. The commissioner shall 66.32 evaluate the demonstration projects and by June 15, 1999, 66.33 develop model programs for school districts to use in 66.34 implementing Minnesota Statutes, section 121.203. 66.35 Sec. 41. [REPORT TO LEGISLATURE.] 66.36 By July 1, 1999, the emergency medical services regulatory 67.1 board shall submit to the legislature a comprehensive proposal 67.2 for regulating ambulance service rates. 67.3 Sec. 42. [REPORT REQUIRED; CALS PROGRAM.] 67.4 The emergency medical services regulatory board, by 67.5 December 1, 1999, shall report to the chairs of the house health 67.6 and human services finance division and the senate health and 67.7 family security budget division on the implementation of the 67.8 comprehensive advanced life support (CALS) program or similar 67.9 program. 67.10 Sec. 43. [EFFECTIVE DATE.] 67.11 Sections 3 to 5 and 19 are effective July 1, 1998. 67.12 ARTICLE 3 67.13 LONG-TERM CARE FACILITIES 67.14 Section 1. Minnesota Statutes 1996, section 144A.071, 67.15 subdivision 1, is amended to read: 67.16 Subdivision 1. [FINDINGS.] The legislature declares that a 67.17 moratorium on the licensure and medical assistance certification 67.18 of new nursing home beds and construction projects that 67.19 exceedthe lesser of $500,000 or 25 percent of a facility's67.20appraised value$1,000,000 is necessary to control nursing home 67.21 expenditure growth and enable the state to meet the needs of its 67.22 elderly by providing high quality services in the most 67.23 appropriate manner along a continuum of care. 67.24 Sec. 2. Minnesota Statutes 1996, section 144A.071, 67.25 subdivision 2, is amended to read: 67.26 Subd. 2. [MORATORIUM.] The commissioner of health, in 67.27 coordination with the commissioner of human services, shall deny 67.28 each request for new licensed or certified nursing home or 67.29 certified boarding care beds except as provided in subdivision 3 67.30 or 4a, or section 144A.073. "Certified bed" means a nursing 67.31 home bed or a boarding care bed certified by the commissioner of 67.32 health for the purposes of the medical assistance program, under 67.33 United States Code, title 42, sections 1396 et seq. 67.34 The commissioner of human services, in coordination with 67.35 the commissioner of health, shall deny any request to issue a 67.36 license under section 252.28 and chapter 245A to a nursing home 68.1 or boarding care home, if that license would result in an 68.2 increase in the medical assistance reimbursement amount. 68.3 In addition, the commissioner of health must not approve 68.4 any construction project whose cost exceeds$500,000, or 2568.5percent of the facility's appraised value, whichever is less,68.6 $1,000,000 unless: 68.7 (a) any construction costs exceedingthe lesser of $500,00068.8or 25 percent of the facility's appraised value$1,000,000 are 68.9 not added to the facility's appraised value and are not included 68.10 in the facility's payment rate for reimbursement under the 68.11 medical assistance program; or 68.12 (b) the project: 68.13 (1) has been approved through the process described in 68.14 section 144A.073; 68.15 (2) meets an exception in subdivision 3 or 4a; 68.16 (3) is necessary to correct violations of state or federal 68.17 law issued by the commissioner of health; 68.18 (4) is necessary to repair or replace a portion of the 68.19 facility that was damaged by fire, lightning, groundshifts, or 68.20 other such hazards, including environmental hazards, provided 68.21 that the provisions of subdivision 4a, clause (a), are met; 68.22 (5) as of May 1, 1992, the facility has submitted to the 68.23 commissioner of health written documentation evidencing that the 68.24 facility meets the "commenced construction" definition as 68.25 specified in subdivision 1a, clause (d), or that substantial 68.26 steps have been taken prior to April 1, 1992, relating to the 68.27 construction project. "Substantial steps" require that the 68.28 facility has made arrangements with outside parties relating to 68.29 the construction project and include the hiring of an architect 68.30 or construction firm, submission of preliminary plans to the 68.31 department of health or documentation from a financial 68.32 institution that financing arrangements for the construction 68.33 project have been made; or 68.34 (6) is being proposed by a licensed nursing facility that 68.35 is not certified to participate in the medical assistance 68.36 program and will not result in new licensed or certified beds. 69.1 Prior to the final plan approval of any construction 69.2 project, the commissioner of health shall be provided with an 69.3 itemized cost estimate for the project construction costs. If a 69.4 construction project is anticipated to be completed in phases, 69.5 the total estimated cost of all phases of the project shall be 69.6 submitted to the commissioner and shall be considered as one 69.7 construction project. Once the construction project is 69.8 completed and prior to the final clearance by the commissioner, 69.9 the total project construction costs for the construction 69.10 project shall be submitted to the commissioner. If the final 69.11 project construction cost exceeds the dollar threshold in this 69.12 subdivision, the commissioner of human services shall not 69.13 recognize any of the project construction costs or the related 69.14 financing costs in excess of this threshold in establishing the 69.15 facility's property-related payment rate. 69.16 The dollar thresholds for construction projects are as 69.17 follows: for construction projects other than those authorized 69.18 in clauses (1) to (6), the dollar threshold is$500,000 or 2569.19percent of appraised value, whichever is less$1,000,000. For 69.20 projects authorized after July 1, 1993, under clause (1), the 69.21 dollar threshold is the cost estimate submitted with a proposal 69.22 for an exception under section 144A.073, plus inflation as 69.23 calculated according to section 256B.431, subdivision 3f, 69.24 paragraph (a). For projects authorized under clauses (2) to 69.25 (4), the dollar threshold is the itemized estimate project 69.26 construction costs submitted to the commissioner of health at 69.27 the time of final plan approval, plus inflation as calculated 69.28 according to section 256B.431, subdivision 3f, paragraph (a). 69.29 The commissioner of health shall adopt rules to implement 69.30 this section or to amend the emergency rules for granting 69.31 exceptions to the moratorium on nursing homes under section 69.32 144A.073. 69.33 Sec. 3. Minnesota Statutes 1996, section 144A.071, 69.34 subdivision 4a, is amended to read: 69.35 Subd. 4a. [EXCEPTIONS FOR REPLACEMENT BEDS.] It is in the 69.36 best interest of the state to ensure that nursing homes and 70.1 boarding care homes continue to meet the physical plant 70.2 licensing and certification requirements by permitting certain 70.3 construction projects. Facilities should be maintained in 70.4 condition to satisfy the physical and emotional needs of 70.5 residents while allowing the state to maintain control over 70.6 nursing home expenditure growth. 70.7 The commissioner of health in coordination with the 70.8 commissioner of human services, may approve the renovation, 70.9 replacement, upgrading, or relocation of a nursing home or 70.10 boarding care home, under the following conditions: 70.11 (a) to license or certify beds in a new facility 70.12 constructed to replace a facility or to make repairs in an 70.13 existing facility that was destroyed or damaged after June 30, 70.14 1987, by fire, lightning, or other hazard provided: 70.15 (i) destruction was not caused by the intentional act of or 70.16 at the direction of a controlling person of the facility; 70.17 (ii) at the time the facility was destroyed or damaged the 70.18 controlling persons of the facility maintained insurance 70.19 coverage for the type of hazard that occurred in an amount that 70.20 a reasonable person would conclude was adequate; 70.21 (iii) the net proceeds from an insurance settlement for the 70.22 damages caused by the hazard are applied to the cost of the new 70.23 facility or repairs; 70.24 (iv) the new facility is constructed on the same site as 70.25 the destroyed facility or on another site subject to the 70.26 restrictions in section 144A.073, subdivision 5; 70.27 (v) the number of licensed and certified beds in the new 70.28 facility does not exceed the number of licensed and certified 70.29 beds in the destroyed facility; and 70.30 (vi) the commissioner determines that the replacement beds 70.31 are needed to prevent an inadequate supply of beds. 70.32 Project construction costs incurred for repairs authorized under 70.33 this clause shall not be considered in the dollar threshold 70.34 amount defined in subdivision 2; 70.35 (b) to license or certify beds that are moved from one 70.36 location to another within a nursing home facility, provided the 71.1 total costs of remodeling performed in conjunction with the 71.2 relocation of beds does not exceed25 percent of the appraised71.3value of the facility or $500,000, whichever is less$1,000,000; 71.4 (c) to license or certify beds in a project recommended for 71.5 approval under section 144A.073; 71.6 (d) to license or certify beds that are moved from an 71.7 existing state nursing home to a different state facility, 71.8 provided there is no net increase in the number of state nursing 71.9 home beds; 71.10 (e) to certify and license as nursing home beds boarding 71.11 care beds in a certified boarding care facility if the beds meet 71.12 the standards for nursing home licensure, or in a facility that 71.13 was granted an exception to the moratorium under section 71.14 144A.073, and if the cost of any remodeling of the facility does 71.15 not exceed25 percent of the appraised value of the facility or71.16$500,000, whichever is less$1,000,000. If boarding care beds 71.17 are licensed as nursing home beds, the number of boarding care 71.18 beds in the facility must not increase beyond the number 71.19 remaining at the time of the upgrade in licensure. The 71.20 provisions contained in section 144A.073 regarding the upgrading 71.21 of the facilities do not apply to facilities that satisfy these 71.22 requirements; 71.23 (f) to license and certify up to 40 beds transferred from 71.24 an existing facility owned and operated by the Amherst H. Wilder 71.25 Foundation in the city of St. Paul to a new unit at the same 71.26 location as the existing facility that will serve persons with 71.27 Alzheimer's disease and other related disorders. The transfer 71.28 of beds may occur gradually or in stages, provided the total 71.29 number of beds transferred does not exceed 40. At the time of 71.30 licensure and certification of a bed or beds in the new unit, 71.31 the commissioner of health shall delicense and decertify the 71.32 same number of beds in the existing facility. As a condition of 71.33 receiving a license or certification under this clause, the 71.34 facility must make a written commitment to the commissioner of 71.35 human services that it will not seek to receive an increase in 71.36 its property-related payment rate as a result of the transfers 72.1 allowed under this paragraph; 72.2 (g) to license and certify nursing home beds to replace 72.3 currently licensed and certified boarding care beds which may be 72.4 located either in a remodeled or renovated boarding care or 72.5 nursing home facility or in a remodeled, renovated, newly 72.6 constructed, or replacement nursing home facility within the 72.7 identifiable complex of health care facilities in which the 72.8 currently licensed boarding care beds are presently located, 72.9 provided that the number of boarding care beds in the facility 72.10 or complex are decreased by the number to be licensed as nursing 72.11 home beds and further provided that, if the total costs of new 72.12 construction, replacement, remodeling, or renovation exceed ten 72.13 percent of the appraised value of the facility or $200,000, 72.14 whichever is less, the facility makes a written commitment to 72.15 the commissioner of human services that it will not seek to 72.16 receive an increase in its property-related payment rate by 72.17 reason of the new construction, replacement, remodeling, or 72.18 renovation. The provisions contained in section 144A.073 72.19 regarding the upgrading of facilities do not apply to facilities 72.20 that satisfy these requirements; 72.21 (h) to license as a nursing home and certify as a nursing 72.22 facility a facility that is licensed as a boarding care facility 72.23 but not certified under the medical assistance program, but only 72.24 if the commissioner of human services certifies to the 72.25 commissioner of health that licensing the facility as a nursing 72.26 home and certifying the facility as a nursing facility will 72.27 result in a net annual savings to the state general fund of 72.28 $200,000 or more; 72.29 (i) to certify, after September 30, 1992, and prior to July 72.30 1, 1993, existing nursing home beds in a facility that was 72.31 licensed and in operation prior to January 1, 1992; 72.32 (j) to license and certify new nursing home beds to replace 72.33 beds in a facility condemned as part of an economic 72.34 redevelopment plan in a city of the first class, provided the 72.35 new facility is located within one mile of the site of the old 72.36 facility. Operating and property costs for the new facility 73.1 must be determined and allowed under existing reimbursement 73.2 rules; 73.3 (k) to license and certify up to 20 new nursing home beds 73.4 in a community-operated hospital and attached convalescent and 73.5 nursing care facility with 40 beds on April 21, 1991, that 73.6 suspended operation of the hospital in April 1986. The 73.7 commissioner of human services shall provide the facility with 73.8 the same per diem property-related payment rate for each 73.9 additional licensed and certified bed as it will receive for its 73.10 existing 40 beds; 73.11 (l) to license or certify beds in renovation, replacement, 73.12 or upgrading projects as defined in section 144A.073, 73.13 subdivision 1, so long as the cumulative total costs of the 73.14 facility's remodeling projects do not exceed25 percent of the73.15appraised value of the facility or $500,000, whichever is73.16less$1,000,000; 73.17 (m) to license and certify beds that are moved from one 73.18 location to another for the purposes of converting up to five 73.19 four-bed wards to single or double occupancy rooms in a nursing 73.20 home that, as of January 1, 1993, was county-owned and had a 73.21 licensed capacity of 115 beds; 73.22 (n) to allow a facility that on April 16, 1993, was a 73.23 106-bed licensed and certified nursing facility located in 73.24 Minneapolis to layaway all of its licensed and certified nursing 73.25 home beds. These beds may be relicensed and recertified in a 73.26 newly-constructed teaching nursing home facility affiliated with 73.27 a teaching hospital upon approval by the legislature. The 73.28 proposal must be developed in consultation with the interagency 73.29 committee on long-term care planning. The beds on layaway 73.30 status shall have the same status as voluntarily delicensed and 73.31 decertified beds, except that beds on layaway status remain 73.32 subject to the surcharge in section 256.9657. This layaway 73.33 provision expires July 1,19971998; 73.34 (o) to allow a project which will be completed in 73.35 conjunction with an approved moratorium exception project for a 73.36 nursing home in southern Cass county and which is directly 74.1 related to that portion of the facility that must be repaired, 74.2 renovated, or replaced, to correct an emergency plumbing problem 74.3 for which a state correction order has been issued and which 74.4 must be corrected by August 31, 1993; 74.5 (p) to allow a facility that on April 16, 1993, was a 74.6 368-bed licensed and certified nursing facility located in 74.7 Minneapolis to layaway, upon 30 days prior written notice to the 74.8 commissioner, up to 30 of the facility's licensed and certified 74.9 beds by converting three-bed wards to single or double 74.10 occupancy. Beds on layaway status shall have the same status as 74.11 voluntarily delicensed and decertified beds except that beds on 74.12 layaway status remain subject to the surcharge in section 74.13 256.9657, remain subject to the license application and renewal 74.14 fees under section 144A.07 and shall be subject to a $100 per 74.15 bed reactivation fee. In addition, at any time within three 74.16 years of the effective date of the layaway, the beds on layaway 74.17 status may be: 74.18 (1) relicensed and recertified upon relocation and 74.19 reactivation of some or all of the beds to an existing licensed 74.20 and certified facility or facilities located in Pine River, 74.21 Brainerd, or International Falls; provided that the total 74.22 project construction costs related to the relocation of beds 74.23 from layaway status for any facility receiving relocated beds 74.24 may not exceed the dollar threshold provided in subdivision 2 74.25 unless the construction project has been approved through the 74.26 moratorium exception process under section 144A.073; 74.27 (2) relicensed and recertified, upon reactivation of some 74.28 or all of the beds within the facility which placed the beds in 74.29 layaway status, if the commissioner has determined a need for 74.30 the reactivation of the beds on layaway status. 74.31 The property-related payment rate of a facility placing 74.32 beds on layaway status must be adjusted by the incremental 74.33 change in its rental per diem after recalculating the rental per 74.34 diem as provided in section 256B.431, subdivision 3a, paragraph 74.35 (d). The property-related payment rate for a facility 74.36 relicensing and recertifying beds from layaway status must be 75.1 adjusted by the incremental change in its rental per diem after 75.2 recalculating its rental per diem using the number of beds after 75.3 the relicensing to establish the facility's capacity day 75.4 divisor, which shall be effective the first day of the month 75.5 following the month in which the relicensing and recertification 75.6 became effective. Any beds remaining on layaway status more 75.7 than three years after the date the layaway status became 75.8 effective must be removed from layaway status and immediately 75.9 delicensed and decertified; 75.10 (q)to license and certify beds in a renovation and75.11remodeling project to convert 13 three-bed wards into 13 two-bed75.12rooms and 13 single-bed rooms, expand space, and add75.13improvements in a nursing home that, as of January 1, 1994, met75.14the following conditions: the nursing home was located in75.15Ramsey county; was not owned by a hospital corporation; had a75.16licensed capacity of 64 beds; and had been ranked among the top75.1715 applicants by the 1993 moratorium exceptions advisory review75.18panel. The total project construction cost estimate for this75.19project must not exceed the cost estimate submitted in75.20connection with the 1993 moratorium exception process;75.21(r)to license and certify beds in a renovation and 75.22 remodeling project to convert 12 four-bed wards into 24 two-bed 75.23 rooms, expand space, and add improvements in a nursing home 75.24 that, as of January 1, 1994, met the following conditions: the 75.25 nursing home was located in Ramsey county; had a licensed 75.26 capacity of 154 beds; and had been ranked among the top 15 75.27 applicants by the 1993 moratorium exceptions advisory review 75.28 panel. The total project construction cost estimate for this 75.29 project must not exceed the cost estimate submitted in 75.30 connection with the 1993 moratorium exception process; 75.31(s)(r) to license and certify up to 117 beds that are 75.32 relocated from a licensed and certified 138-bed nursing facility 75.33 located in St. Paul to a hospital with 130 licensed hospital 75.34 beds located in South St. Paul, provided that the nursing 75.35 facility and hospital are owned by the same or a related 75.36 organization and that prior to the date the relocation is 76.1 completed the hospital ceases operation of its inpatient 76.2 hospital services at that hospital. After relocation, the 76.3 nursing facility's status under section 256B.431, subdivision 76.4 2j, shall be the same as it was prior to relocation. The 76.5 nursing facility's property-related payment rate resulting from 76.6 the project authorized in this paragraph shall become effective 76.7 no earlier than April 1, 1996. For purposes of calculating the 76.8 incremental change in the facility's rental per diem resulting 76.9 from this project, the allowable appraised value of the nursing 76.10 facility portion of the existing health care facility physical 76.11 plant prior to the renovation and relocation may not exceed 76.12 $2,490,000; 76.13(t)(s) to license and certify two beds in a facility to 76.14 replace beds that were voluntarily delicensed and decertified on 76.15 June 28, 1991; 76.16(u)(t) to allow 16 licensed and certified beds located on 76.17 July 1, 1994, in a 142-bed nursing home and 21-bed boarding care 76.18 home facility in Minneapolis, notwithstanding the licensure and 76.19 certification after July 1, 1995, of the Minneapolis facility as 76.20 a 147-bed nursing home facility after completion of a 76.21 construction project approved in 1993 under section 144A.073, to 76.22 be laid away upon 30 days' prior written notice to the 76.23 commissioner. Beds on layaway status shall have the same status 76.24 as voluntarily delicensed or decertified beds except that they 76.25 shall remain subject to the surcharge in section 256.9657. The 76.26 16 beds on layaway status may be relicensed as nursing home beds 76.27 and recertified at any time within five years of the effective 76.28 date of the layaway upon relocation of some or all of the beds 76.29 to a licensed and certified facility located in Watertown, 76.30 provided that the total project construction costs related to 76.31 the relocation of beds from layaway status for the Watertown 76.32 facility may not exceed the dollar threshold provided in 76.33 subdivision 2 unless the construction project has been approved 76.34 through the moratorium exception process under section 144A.073. 76.35 The property-related payment rate of the facility placing 76.36 beds on layaway status must be adjusted by the incremental 77.1 change in its rental per diem after recalculating the rental per 77.2 diem as provided in section 256B.431, subdivision 3a, paragraph 77.3 (d). The property-related payment rate for the facility 77.4 relicensing and recertifying beds from layaway status must be 77.5 adjusted by the incremental change in its rental per diem after 77.6 recalculating its rental per diem using the number of beds after 77.7 the relicensing to establish the facility's capacity day 77.8 divisor, which shall be effective the first day of the month 77.9 following the month in which the relicensing and recertification 77.10 became effective. Any beds remaining on layaway status more 77.11 than five years after the date the layaway status became 77.12 effective must be removed from layaway status and immediately 77.13 delicensed and decertified; 77.14(v)(u) to license and certify beds that are moved within 77.15 an existing area of a facility or to a newly-constructed 77.16 addition which is built for the purpose of eliminating three- 77.17 and four-bed rooms and adding space for dining, lounge areas, 77.18 bathing rooms, and ancillary service areas in a nursing home 77.19 that, as of January 1, 1995, was located in Fridley and had a 77.20 licensed capacity of 129 beds;or77.21(w)(v) to relocate 36 beds in Crow Wing county and four 77.22 beds from Hennepin county to a 160-bed facility in Crow Wing 77.23 county, provided all the affected beds are under common 77.24 ownership.; or 77.25 (w) to license and certify beds in a renovation and 77.26 remodeling project to convert 13 three-bed wards into 13 two-bed 77.27 rooms and 13 single-bed rooms, expand space, and add 77.28 improvements in a nursing home that, as of January 1, 1994, met 77.29 the following conditions: the nursing home was located in 77.30 Ramsey county, was not owned by a hospital corporation, had a 77.31 licensed capacity of 64 beds, and had been ranked among the top 77.32 15 applicants by the 1993 moratorium exceptions advisory review 77.33 panel. The total project construction cost estimate for this 77.34 project must not exceed the cost estimate submitted in 77.35 connection with the 1993 moratorium exception process. 77.36 Sec. 4. Minnesota Statutes 1996, section 144A.073, 78.1 subdivision 2, is amended to read: 78.2 Subd. 2. [REQUEST FOR PROPOSALS.] At the authorization by 78.3 the legislature of additional medical assistance expenditures 78.4 for exceptions to the moratorium on nursing homes, the 78.5 interagency committee shall publish in the State Register a 78.6 request for proposals for nursing home projects to be licensed 78.7 or certified under section 144A.071, subdivision 4a, clause 78.8 (c). The public notice of this funding and the request for 78.9 proposals must specify how the approval criteria will be 78.10 prioritized by the advisory review panel, the interagency 78.11 long-term care planning committee, and the commissioner. The 78.12 notice must describe the information that must accompany a 78.13 request and state that proposals must be submitted to the 78.14 interagency committee within 90 days of the date of 78.15 publication. The notice must include the amount of the 78.16 legislative appropriation available for the additional costs to 78.17 the medical assistance program of projects approved under this 78.18 section. If no money is appropriated for a year, the 78.19 interagency committee shall publish a notice to that effect, and 78.20 no proposals shall be requested. If money is appropriated, the 78.21 interagency committee shall initiate the application and review 78.22 process described in this section at least twice each biennium 78.23 and up to four times each biennium, according to dates 78.24 established by rule. Authorized funds shall be allocated 78.25 proportionally to the number of processes. Funds not encumbered 78.26 by an earlier process within a biennium shall carry forward to 78.27 subsequent iterations of the process. Authorization for 78.28 expenditures does not carry forward into the following 78.29 biennium. To be considered for approval, a proposal must 78.30 include the following information: 78.31 (1) whether the request is for renovation, replacement, 78.32 upgrading, conversion, or relocation; 78.33 (2) a description of the problem the project is designed to 78.34 address; 78.35 (3) a description of the proposed project; 78.36 (4) an analysis of projected costs of the nursing facility 79.1 proposal, which are not required to exceed the cost threshold 79.2 referred to in section 144A.071, subdivision 1, to be considered 79.3 under this section, including initial construction and 79.4 remodeling costs; site preparation costs; financing costs, 79.5 including the current estimated long-term financing costs of the 79.6 proposal, which consists of estimates of the amount and sources 79.7 of money, reserves if required under the proposed funding 79.8 mechanism, annual payments schedule, interest rates, length of 79.9 term, closing costs and fees, insurance costs, and any completed 79.10 marketing study or underwriting review; and estimated operating 79.11 costs during the first two years after completion of the 79.12 project; 79.13 (5) for proposals involving replacement of all or part of a 79.14 facility, the proposed location of the replacement facility and 79.15 an estimate of the cost of addressing the problem through 79.16 renovation; 79.17 (6) for proposals involving renovation, an estimate of the 79.18 cost of addressing the problem through replacement; 79.19 (7) the proposed timetable for commencing construction and 79.20 completing the project; 79.21 (8) a statement of any licensure or certification issues, 79.22 such as certification survey deficiencies; 79.23 (9) the proposed relocation plan for current residents if 79.24 beds are to be closed so that the department of human services 79.25 can estimate the total costs of a proposal; and 79.26 (10) other information required by permanent rule of the 79.27 commissioner of health in accordance with subdivisions 4 and 8. 79.28 Sec. 5. Minnesota Statutes 1996, section 144A.073, is 79.29 amended by adding a subdivision to read: 79.30 Subd. 9. [BUDGET REQUEST.] The commissioner of finance 79.31 shall include in each biennial budget request a line-item for 79.32 the nursing home moratorium exception process. If the 79.33 commissioner does not request funding for this item, the 79.34 commissioner of finance must justify the decision in the budget 79.35 pages. 79.36 Sec. 6. Minnesota Statutes 1996, section 256B.421, 80.1 subdivision 1, is amended to read: 80.2 Subdivision 1. [SCOPE.] For the purposes of this section 80.3 and sections 256B.41, 256B.411, 256B.431, 256B.432, 80.4 256B.433, 256B.434, 256B.435, 256B.47, 256B.48, 256B.50, and 80.5 256B.502, the following terms and phrases shall have the meaning 80.6 given to them. 80.7 Sec. 7. Minnesota Statutes 1996, section 256B.431, is 80.8 amended by adding a subdivision to read: 80.9 Subd. 2s. [RATES FOR A RELOCATED FACILITY.] For a nursing 80.10 facility whose construction project was authorized according to 80.11 section 144A.073, subdivision 5, paragraph (g), the operating 80.12 cost payment rates for the third location shall be determined 80.13 based on Minnesota Rules, part 9549.0057. Subdivision 25, 80.14 paragraphs (b), clause (3); and (d), shall not apply until the 80.15 second rate year after the settle-up cost report is filed. 80.16 Notwithstanding this section, real estate taxes and special 80.17 assessments payable by the third location, a 501(c)(3) nonprofit 80.18 corporation, shall be included in the payment rates determined 80.19 under this subdivision for all subsequent rate years. 80.20 Sec. 8. Minnesota Statutes 1996, section 256B.431, 80.21 subdivision 25, is amended to read: 80.22 Subd. 25. [CHANGES TO NURSING FACILITY REIMBURSEMENT 80.23 BEGINNING JULY 1, 1995.] The nursing facility reimbursement 80.24 changes in paragraphs (a) to (h) shall apply in the sequence 80.25 specified to Minnesota Rules, parts 9549.0010 to 9549.0080, and 80.26 this section, beginning July 1, 1995. 80.27 (a) The eight-cent adjustment to care-related rates in 80.28 subdivision 22, paragraph (e), shall no longer apply. 80.29 (b) For rate years beginning on or after July 1, 1995, the 80.30 commissioner shall limit a nursing facility's allowable 80.31 operating per diem for each case mix category for each rate year 80.32 as in clauses (1) to (3). 80.33 (1) For the rate year beginning July 1, 1995, the 80.34 commissioner shall group nursing facilities into two groups, 80.35 freestanding and nonfreestanding, within each geographic group, 80.36 using their operating cost per diem for the case mix A 81.1 classification. A nonfreestanding nursing facility is a nursing 81.2 facility whose other operating cost per diem is subject to the 81.3 hospital attached, short length of stay, or the rule 80 limits. 81.4 All other nursing facilities shall be considered freestanding 81.5 nursing facilities. The commissioner shall then array all 81.6 nursing facilities in each grouping by their allowable case mix 81.7 A operating cost per diem. In calculating a nursing facility's 81.8 operating cost per diem for this purpose, the commissioner shall 81.9 exclude the raw food cost per diem related to providing special 81.10 diets that are based on religious beliefs, as determined in 81.11 subdivision 2b, paragraph (h). For those nursing facilities in 81.12 each grouping whose case mix A operating cost per diem: 81.13 (i) is at or below the median minus 1.0 standard deviation 81.14 of the array, the commissioner shall limit the nursing 81.15 facility's allowable operating cost per diem for each case mix 81.16 category to the lesser of the prior reporting year's allowable 81.17 operating cost per diems plus the inflation factor as 81.18 established in paragraph (f), clause (2), increased by six 81.19 percentage points, or the current reporting year's corresponding 81.20 allowable operating cost per diem; 81.21 (ii) is between minus .5 standard deviation and minus 1.0 81.22 standard deviation below the median of the array, the 81.23 commissioner shall limit the nursing facility's allowable 81.24 operating cost per diem for each case mix category to the lesser 81.25 of the prior reporting year's allowable operating cost per diems 81.26 plus the inflation factor as established in paragraph (f), 81.27 clause (2), increased by four percentage points, or the current 81.28 reporting year's corresponding allowable operating cost per 81.29 diem; or 81.30 (iii) is equal to or above minus .5 standard deviation 81.31 below the median of the array, the commissioner shall limit the 81.32 nursing facility's allowable operating cost per diem for each 81.33 case mix category to the lesser of the prior reporting year's 81.34 allowable operating cost per diems plus the inflation factor as 81.35 established in paragraph (f), clause (2), increased by three 81.36 percentage points, or the current reporting year's corresponding 82.1 allowable operating cost per diem. 82.2 (2) For the rate year beginning on July 1, 1996, the 82.3 commissioner shall limit the nursing facility's allowable 82.4 operating cost per diem for each case mix category to the lesser 82.5 of the prior reporting year's allowable operating cost per diems 82.6 plus the inflation factor as established in paragraph (f), 82.7 clause (2), increased by one percentage point or the current 82.8 reporting year's corresponding allowable operating cost per 82.9 diems; and 82.10 (3) For rate years beginning on or after July 1, 1997, the 82.11 commissioner shall limit the nursing facility's allowable 82.12 operating cost per diem for each case mix category to the lesser 82.13 of the reporting year prior to the current reporting year's 82.14 allowable operating cost per diems plus the inflation factor as 82.15 established in paragraph (f), clause (2), or the current 82.16 reporting year's corresponding allowable operating cost per 82.17 diems. 82.18 (c) For rate years beginning on July 1, 1995, the 82.19 commissioner shall limit the allowable operating cost per diems 82.20 for high cost nursing facilities. After application of the 82.21 limits in paragraph (b) to each nursing facility's operating 82.22 cost per diems, the commissioner shall group nursing facilities 82.23 into two groups, freestanding or nonfreestanding, within each 82.24 geographic group. A nonfreestanding nursing facility is a 82.25 nursing facility whose other operating cost per diems are 82.26 subject to hospital attached, short length of stay, or rule 80 82.27 limits. All other nursing facilities shall be considered 82.28 freestanding nursing facilities. The commissioner shall then 82.29 array all nursing facilities within each grouping by their 82.30 allowable case mix A operating cost per diems. In calculating a 82.31 nursing facility's operating cost per diem for this purpose, the 82.32 commissioner shall exclude the raw food cost per diem related to 82.33 providing special diets that are based on religious beliefs, as 82.34 determined in subdivision 2b, paragraph (h). For those nursing 82.35 facilities in each grouping whose case mix A operating cost per 82.36 diem exceeds 1.0 standard deviation above the median, the 83.1 commissioner shall reduce their allowable operating cost per 83.2 diems by two percent. For those nursing facilities in each 83.3 grouping whose case mix A operating cost per diem exceeds 0.5 83.4 standard deviation above the median but is less than or equal to 83.5 1.0 standard deviation above the median, the commissioner shall 83.6 reduce their allowable operating cost per diems by one percent. 83.7 (d) For rate years beginning on or after July 1, 1996, the 83.8 commissioner shall limit the allowable operating cost per diems 83.9 for high cost nursing facilities. After application of the 83.10 limits in paragraph (b) to each nursing facility's operating 83.11 cost per diems, the commissioner shall group nursing facilities 83.12 into two groups, freestanding or nonfreestanding, within each 83.13 geographic group. A nonfreestanding nursing facility is a 83.14 nursing facility whose other operating cost per diems are 83.15 subject to hospital attached, short length of stay, or rule 80 83.16 limits. All other nursing facilities shall be considered 83.17 freestanding nursing facilities. The commissioner shall then 83.18 array all nursing facilities within each grouping by their 83.19 allowable case mix A operating cost per diems. In calculating a 83.20 nursing facility's operating cost per diem for this purpose, the 83.21 commissioner shall exclude the raw food cost per diem related to 83.22 providing special diets that are based on religious beliefs, as 83.23 determined in subdivision 2b, paragraph (h). In those nursing 83.24 facilities in each grouping whose case mix A operating cost per 83.25 diem exceeds 1.0 standard deviation above the median, the 83.26 commissioner shall reduce their allowable operating cost per 83.27 diems by three percent. For those nursing facilities in each 83.28 grouping whose case mix A operating cost per diem exceeds 0.5 83.29 standard deviation above the median but is less than or equal to 83.30 1.0 standard deviation above the median, the commissioner shall 83.31 reduce their allowable operating cost per diems by two percent. 83.32 (e) For rate years beginning on or after July 1, 1995, the 83.33 commissioner shall determine a nursing facility's efficiency 83.34 incentive by first computing the allowable difference, which is 83.35 the lesser of $4.50 or the amount by which the facility's other 83.36 operating cost limit exceeds its nonadjusted other operating 84.1 cost per diem for that rate year. The commissioner shall 84.2 compute the efficiency incentive by: 84.3 (1) subtracting the allowable difference from $4.50 and 84.4 dividing the result by $4.50; 84.5 (2) multiplying 0.20 by the ratio resulting from clause 84.6 (1), and then; 84.7 (3) adding 0.50 to the result from clause (2); and 84.8 (4) multiplying the result from clause (3) times the 84.9 allowable difference. 84.10 The nursing facility's efficiency incentive payment shall 84.11 be the lesser of $2.25 or the product obtained in clause (4). 84.12 (f) For rate years beginning on or after July 1, 1995, the 84.13 forecasted price index for a nursing facility's allowable 84.14 operating cost per diems shall be determined under clauses (1) 84.15 to (3) using the change in the Consumer Price Index-All Items 84.16 (United States city average) (CPI-U) or the change in the 84.17 Nursing Home Market Basket, both as forecasted by Data Resources 84.18 Inc., whichever is applicable. The commissioner shall use the 84.19 indices as forecasted in the fourth quarter of the calendar year 84.20 preceding the rate year, subject to subdivision 2l, paragraph 84.21 (c). If, as a result of federal legislative or administrative 84.22 action, the methodology used to calculate the Consumer Price 84.23 Index-All Items (United States city average) (CPI-U) changes, 84.24 the commissioner shall develop a conversion factor or other 84.25 methodology to convert the CPI-U index factor that results from 84.26 the new methodology to an index factor that approximates, as 84.27 closely as possible, the index factor that would have resulted 84.28 from application of the original CPI-U methodology prior to any 84.29 changes in methodology. The commissioner shall use the 84.30 conversion factor or other methodology to calculate an adjusted 84.31 inflation index. The adjusted inflation index must be used to 84.32 calculate payment rates under this section instead of the CPI-U 84.33 index specified in paragraph (d). If the commissioner is 84.34 required to develop an adjusted inflation index, the 84.35 commissioner shall report to the legislature as part of the next 84.36 budget submission the fiscal impact of applying this index. 85.1 (1) The CPI-U forecasted index for allowable operating cost 85.2 per diems shall be based on the 21-month period from the 85.3 midpoint of the nursing facility's reporting year to the 85.4 midpoint of the rate year following the reporting year. 85.5 (2) The Nursing Home Market Basket forecasted index for 85.6 allowable operating costs and per diem limits shall be based on 85.7 the 12-month period between the midpoints of the two reporting 85.8 years preceding the rate year. 85.9 (3) For rate years beginning on or after July 1, 1996, the 85.10 forecasted index for operating cost limits referred to in 85.11 subdivision 21, paragraph (b), shall be based on the CPI-U for 85.12 the 12-month period between the midpoints of the two reporting 85.13 years preceding the rate year. 85.14 (g) After applying these provisions for the respective rate 85.15 years, the commissioner shall index these allowable operating 85.16 costs per diems by the inflation factor provided for in 85.17 paragraph (f), clause (1), and add the nursing facility's 85.18 efficiency incentive as computed in paragraph (e). 85.19 (h)(1) A nursing facility licensed for 302 beds on 85.20 September 30, 1993, that was approved under the moratorium 85.21 exception process in section 144A.073 for a partial replacement, 85.22 and completed the replacement project in December 1994, is 85.23 exempt from paragraphs (b) to (d) for rate years beginning on or 85.24 after July 1, 1995. 85.25 (2) For the rate year beginning July 1, 1997, after 85.26 computing this nursing facility's payment rate according to 85.27 section 256B.434, the commissioner shall make a one-year rate 85.28 adjustment of $8.62 to the facility's contract payment rate for 85.29 the rate effect of operating cost changes associated with the 85.30 facility's 1994 downsizing project. 85.31 (3) For rate years beginning on or after July 1, 1997, the 85.32 commissioner shall add 35 cents to the facility's base property 85.33 related payment rate for the rate effect of reducing its 85.34 licensed capacity to 290 beds from 302 beds and shall add 83 85.35 cents to the facility's real estate tax and special assessment 85.36 payment rate for payments in lieu of real estate taxes. The 86.1 adjustments in this clause shall remain in effect for the 86.2 duration of the facility's contract under section 256B.434. 86.3 (i) Notwithstanding Laws 1996, chapter 451, article 3, 86.4 section 11, paragraph (h), for the rate years beginning on July 86.5 1, 1996, July 1, 1997, and July 1, 1998, a nursing facility 86.6 licensed for 40 beds effective May 1, 1992, with a subsequent 86.7 increase of 20 Medicare/Medicaid certified beds, effective 86.8 January 26, 1993, in accordance with an increase in licensure is 86.9 exempt from paragraphs (b) to (d). 86.10 (j) For the rate year beginning July 1, 1997, the 86.11 commissioner shall compute the payment rate for a nursing 86.12 facility licensed for 94 beds on September 30, 1996, that 86.13 applied in October 1993 for approval of a total replacement 86.14 under the moratorium exception process in section 144A.073, and 86.15 completed the approved replacement in June 1995, with an 86.16 aggregate spend-up limit under paragraph (b) or Laws 1996, 86.17 chapter 451, article 3, section 11, increased by $3.98, and 86.18 after computing the facility's payment rate according to section 86.19 256B.431, the commissioner shall make a one year positive rate 86.20 adjustment of $3.19 for operating costs related to the newly 86.21 constructed total replacement, without application of paragraphs 86.22 (b) to (d) or Laws 1996, chapter 451, article 3, section 11. 86.23 The facility's per diems, before the $3.19 adjustment, shall be 86.24 used as the prior reporting year's allowable operating cost per 86.25 diems for payment rate calculation for the rate year beginning 86.26 July 1, 1998. 86.27 (k) For the purpose of applying the limit stated in 86.28 paragraph (b), clause (3), a nursing facility in Kandiyohi 86.29 county licensed for 86 beds that was granted hospital-attached 86.30 status on December 1, 1994, shall have the prior year's 86.31 allowable care-related per diems increased by $3.207 and the 86.32 prior year's other operating cost per diems increased by $4.777 86.33 before adding the inflation in paragraph (f), clause (2), for 86.34 the rate year beginning on July 1, 1997. 86.35 (l) For the purpose of applying the limit stated in 86.36 paragraph (b), clause (3), a 117 bed nursing facility located in 87.1 Pine county shall have the prior year's allowable operating cost 87.2 per diem payment rate increased by $1.50 before adding the 87.3 inflation in paragraph (f), clause (2), for the rate year 87.4 beginning on July 1, 1997. 87.5 Sec. 9. Minnesota Statutes 1996, section 256B.431, is 87.6 amended by adding a subdivision to read: 87.7 Subd. 26. [CHANGES TO NURSING FACILITY REIMBURSEMENT 87.8 BEGINNING JULY 1, 1997.] The nursing facility reimbursement 87.9 changes in paragraphs (a) to (f) shall apply in the sequence 87.10 specified to Minnesota Rules, parts 9549.0010 to 9549.0080, and 87.11 this section, beginning July 1, 1997. 87.12 (a) For rate years beginning on or after July 1, 1997, the 87.13 commissioner shall limit a nursing facility's allowable 87.14 operating per diem for each case mix category for each rate year 87.15 as follows: 87.16 (1) Notwithstanding Laws 1996, chapter 451, article 3, 87.17 section 11, paragraph (h), for purposes of computing the 87.18 spend-up limits for the rate year beginning July 1, 1997, the 87.19 nursing facility's prior cost report year's allowable operating 87.20 cost base shall be its allowed operating costs used to set the 87.21 payment rates paid for the rate year beginning July 1, 1996. 87.22 (2) The commissioner shall group nursing facilities into 87.23 two groups, freestanding and nonfreestanding, within each 87.24 geographic group, using their operating cost per diem for the 87.25 case mix A classification. A nonfreestanding nursing facility 87.26 is a nursing facility whose other operating cost per diem is 87.27 subject to the hospital attached, short length of stay, or the 87.28 rule 80 limits. All other nursing facilities shall be 87.29 considered freestanding nursing facilities. The commissioner 87.30 shall then array all nursing facilities in each grouping by 87.31 their allowable case mix A operating cost per diem. In 87.32 calculating a nursing facility's operating cost per diem for 87.33 this purpose, the commissioner shall exclude the raw food cost 87.34 per diem related to providing special diets that are based on 87.35 religious beliefs, as determined in subdivision 2b, paragraph 87.36 (h). For those nursing facilities in each grouping whose case 88.1 mix A operating cost per diem: 88.2 (i) is at or below the median of the array, the 88.3 commissioner shall limit the nursing facility's allowable 88.4 operating cost per diem for each case mix category to the lesser 88.5 of the prior reporting year's allowable operating cost per diems 88.6 plus the inflation factor as established in paragraph (d), 88.7 clause (2), increased by two percentage points, or the current 88.8 reporting year's corresponding allowable operating cost per 88.9 diem; or 88.10 (ii) is above the median of the array, the commissioner 88.11 shall limit the nursing facility's allowable operating cost per 88.12 diem for each case mix category to the lesser of the prior 88.13 reporting year's allowable operating cost per diems plus the 88.14 inflation factor as established in paragraph (d), clause (2), 88.15 increased by one percentage point, or the current reporting 88.16 year's corresponding allowable operating cost per diem. 88.17 (b) For rate years beginning on July 1, 1997, the 88.18 commissioner shall limit the allowable operating cost per diems 88.19 for high cost nursing facilities. After application of the 88.20 limits in paragraph (a) to each nursing facility's operating 88.21 cost per diems, the commissioner shall group nursing facilities 88.22 into two groups, freestanding or nonfreestanding, within each 88.23 geographic group. A nonfreestanding nursing facility is a 88.24 nursing facility whose other operating cost per diems are 88.25 subject to hospital attached, short length of stay, or rule 80 88.26 limits. All other nursing facilities shall be considered 88.27 freestanding nursing facilities. The commissioner shall then 88.28 array all nursing facilities within each grouping by their 88.29 allowable case mix A operating cost per diems. In calculating a 88.30 nursing facility's operating cost per diem for this purpose, the 88.31 commissioner shall exclude the raw food cost per diem related to 88.32 providing special diets that are based on religious beliefs, as 88.33 determined in subdivision 2b, paragraph (h). For those nursing 88.34 facilities in each grouping whose case mix A operating cost per 88.35 diem exceeds 1.0 standard deviation above the median, the 88.36 commissioner shall reduce their allowable operating cost per 89.1 diems by three percent. For those nursing facilities in each 89.2 grouping whose case mix A operating cost per diem exceeds 0.5 89.3 standard deviation above the median but is less than or equal to 89.4 1.0 standard deviation above the median, the commissioner shall 89.5 reduce their allowable operating cost per diems by two percent. 89.6 However, in no case shall a nursing facility's operating cost 89.7 per diems be reduced below its grouping's limit established at 89.8 0.5 standard deviations above the median. 89.9 (c) For rate years beginning on or after July 1, 1997, the 89.10 commissioner shall determine a nursing facility's efficiency 89.11 incentive by first computing the allowable difference, which is 89.12 the lesser of $4.50 or the amount by which the facility's other 89.13 operating cost limit exceeds its nonadjusted other operating 89.14 cost per diem for that rate year. In determining the amount of 89.15 the efficiency incentive for hospital attached nursing 89.16 facilities, the commissioner must use the other operating cost 89.17 limit applicable to the freestanding nursing facilities in their 89.18 same geographic group. The commissioner shall compute the 89.19 efficiency incentive by: 89.20 (1) subtracting the allowable difference from $4.50 and 89.21 dividing the result by $4.50; 89.22 (2) multiplying 0.20 by the ratio resulting from clause 89.23 (1), and then; 89.24 (3) adding 0.50 to the result from clause (2); and 89.25 (4) multiplying the result from clause (3) times the 89.26 allowable difference. 89.27 The nursing facility's efficiency incentive payment shall 89.28 be the lesser of $2.25 or the product obtained in clause (4). 89.29 (d) For rate years beginning on or after July 1, 1997, the 89.30 forecasted price index for a nursing facility's allowable 89.31 operating cost per diems shall be determined under clauses (1) 89.32 and (2) using the change in the Consumer Price Index-All Items 89.33 (United States city average) (CPI-U) as forecasted by Data 89.34 Resources Inc. The commissioner shall use the indices as 89.35 forecasted in the fourth quarter of the calendar year preceding 89.36 the rate year, subject to subdivision 2l, paragraph (c). 90.1 (1) The CPI-U forecasted index for allowable operating cost 90.2 per diems shall be based on the 21-month period from the 90.3 midpoint of the nursing facility's reporting year to the 90.4 midpoint of the rate year following the reporting year. 90.5 (2) For rate years beginning on or after July 1, 1997, the 90.6 forecasted index for operating cost limits referred to in 90.7 subdivision 21, paragraph (b), shall be based on the CPI-U for 90.8 the 12-month period between the midpoints of the two reporting 90.9 years preceding the rate year. 90.10 (e) After applying these provisions for the respective rate 90.11 years, the commissioner shall index these allowable operating 90.12 costs per diems by the inflation factor provided for in 90.13 paragraph (d), clause (1), and add the nursing facility's 90.14 efficiency incentive as computed in paragraph (c). 90.15 (f) Notwithstanding Laws 1996, chapter 451, article 3, 90.16 section 11, paragraph (h), for the rate years beginning on July 90.17 1, 1997, and July 1, 1998, a nursing facility licensed for 40 90.18 beds effective May 1, 1992, with a subsequent increase of 20 90.19 Medicare/Medicaid certified beds, effective January 26, 1993, in 90.20 accordance with an increase in licensure is exempt from 90.21 paragraphs (a) and (b). 90.22 Sec. 10. Minnesota Statutes 1996, section 256B.434, 90.23 subdivision 3, is amended to read: 90.24 Subd. 3. [DURATION AND TERMINATION OF CONTRACTS.] (a) 90.25 Subject to available resources, the commissioner may begin to 90.26 execute contracts with nursing facilities November 1, 1995. 90.27 (b) All contracts entered into under this section are for a 90.28 term offour yearsone year. Either party may terminate a 90.29 contracteffective July 1 of any year by providing written90.30notice to the other party no later than April 1 of that yearat 90.31 any time without cause by providing 30 calendar days advance 90.32 written notice to the other party. The decision to terminate a 90.33 contract is not appealable. If neither party provides written 90.34 notice of terminationby April 1, the contract is automatically90.35renewed for the next rate yearthe contract shall be 90.36 renegotiated for additional one-year terms, for up to a total of 91.1 four consecutive one-year terms. The provisions of the contract 91.2 shall be renegotiated annually by the parties prior to the 91.3 expiration date of the contract. The parties may voluntarily 91.4 renegotiate the terms of the contract at any time by mutual 91.5 agreement. 91.6 (c) If a nursing facility fails to comply with the terms of 91.7 a contract, the commissioner shall provide reasonable notice 91.8 regarding the breach of contract and a reasonable opportunity 91.9 for the facility to come into compliance. If the facility fails 91.10 to come into compliance or to remain in compliance, the 91.11 commissioner may terminate the contract. If a contract is 91.12 terminated, the contract payment remains in effect for the 91.13 remainder of the rate year in which the contract was terminated, 91.14 but in all other respects the provisions of this section do not 91.15 apply to that facility effective the date the contract is 91.16 terminated. The contract shall contain a provision governing 91.17 the transition back to the cost-based reimbursement system 91.18 established under section 256B.431, subdivision 25, and 91.19 Minnesota Rules, parts 9549.0010 to 9549.0080. A contract 91.20 entered into under this section may be amended by mutual 91.21 agreement of the parties. 91.22 Sec. 11. [256B.435] [NURSING FACILITY CONVERSION 91.23 DEMONSTRATION PROJECT.] 91.24 Subdivision 1. [DEMONSTRATION PROJECT.] The commissioner 91.25 shall design and implement a process to start July 1, 1998, 91.26 which will decrease the number of Minnesota nursing facilities 91.27 participating in the medical assistance program by June 30, 91.28 2002. That process must include voluntary nursing facility 91.29 closures and, as necessary, selective medical assistance 91.30 decertification of nursing facilities to achieve the goal of 91.31 approximately 20 fewer nursing facilities. The total number of 91.32 licensed nursing home and boarding care home beds participating 91.33 in the medical assistance program upon completion of the project 91.34 must decrease by at least 2000 beds. Nursing facilities subject 91.35 to this project include those with payment rates determined 91.36 under sections 256B.431, 256B.434, and 256B.48, subdivision 1a. 92.1 Subd. 2. [VOLUNTARY NURSING FACILITY CLOSURES.] (a) For 92.2 the rate years beginning on or after July 1, 1998, a nursing 92.3 facility may elect to cease operations as a nursing home or 92.4 boarding care facility, and apply for technical assistance and 92.5 incentive payments under this subdivision. The commissioner 92.6 shall issue a request for proposal (RFP) by October 1, 1997, 92.7 outlining the process and criteria for nursing facilities 92.8 interested in applying to voluntarily close. A nursing facility 92.9 seeking to transfer some of its nursing facility beds to another 92.10 location may be eligible for the incentives under this 92.11 subdivision provided that: 92.12 (1) the number of beds closed is at least 70 percent of its 92.13 capacity; 92.14 (2) the estimated cost to medical assistance of the 92.15 transferred beds, as determined by the commissioner, is at least 92.16 budget neutral; and 92.17 (3) other total closure proposals are given higher priority. 92.18 (b) The commissioner shall make available technical support 92.19 to facilitate a nursing facility seeking voluntary closure under 92.20 this section. Department technical support shall include 92.21 assistance in: general transition planning; coordination of 92.22 discharge planning and resident relocation efforts in 92.23 coordination with the affected county and nursing facility; 92.24 identification of alternative community resources and placements 92.25 for displaced facility residents; assessing potential alternate 92.26 uses of the facility's capital assets; and identifying possible 92.27 financing for facility renovations consistent with identified 92.28 alternative uses. 92.29 (c) The commissioner and the nursing facility may negotiate 92.30 a closure incentive payment of up to $1,000 per bed for a 92.31 nursing facility which agrees to delicense all or substantially 92.32 all of its licensed nursing home and boarding care home beds. 92.33 The nursing facility's proposal must include a plan for 92.34 cost-effective alternative placement of its residents. The 92.35 provider's proposal must also indicate the intended purpose of 92.36 the incentive payment. If the intended use of the incentive 93.1 payment is for facility renovations that will result in another 93.2 public use or for the promotion of another community 93.3 alternative, the commissioner must give higher priority to those 93.4 proposals. Once established, the commissioner's determination 93.5 and incentive payment are not appealable. The commissioner must 93.6 not exceed the biennial appropriation for this purpose. Nothing 93.7 shall preclude a nursing facility from electing to voluntarily 93.8 close without benefit of the incentive payments and technical 93.9 support and assistance set forth in this subdivision. 93.10 Subd. 3. [SELECTIVE DECERTIFICATION OF NURSING 93.11 FACILITIES.] (a) Beginning July 1, 1999, the commissioner shall 93.12 implement a process to reduce the number of nursing facility 93.13 beds through selective decertification in order to achieve the 93.14 goal of approximately 20 fewer nursing facilities participating 93.15 in the medical assistance program by June 30, 2002. The 93.16 mechanism to be utilized to implement the selective 93.17 decertification process will be by nonrenewal of provider 93.18 agreements. Notwithstanding section 256B.04, subdivisions 4 and 93.19 12, and Minnesota Rules, part 9505.0195, the commissioner may 93.20 terminate provider agreements. The commissioner, with 93.21 cooperation from the commissioner of health, shall develop any 93.22 necessary federal waiver requests to permit a selective medical 93.23 assistance decertification process. The commissioners should 93.24 submit any needed federal waiver requests by February 1, 1998. 93.25 (b) In developing the waiver and decertification process, 93.26 the commissioner shall develop criteria that will be used to 93.27 define which nursing facilities to decertify. The commissioner 93.28 shall consider using the following factors in developing 93.29 criteria: 93.30 (1) availability and capacity of cost-effective community 93.31 alternatives; 93.32 (2) future demographics and bed supply for county; 93.33 (3) high proportion of case mix A residents; 93.34 (4) low case mix score; 93.35 (5) high case mix A operating cost per diem; 93.36 (6) type of licensure; 94.1 (7) percent of total and medical assistance occupancy; 94.2 (8) a measure of care quality; and 94.3 (9) any other factor deemed relevant by the commissioner. 94.4 (c) In determining the nursing facility decertification 94.5 criteria to be used, the commissioner shall establish an 94.6 advisory committee. The advisory committee's composition shall 94.7 include consumers or their representatives, counties, 94.8 legislators, and providers or their representatives, as well as 94.9 representatives of the departments of health and human services. 94.10 (d) The commissioner shall recommend to the 1999 94.11 legislature adoption of a process and criteria for determining 94.12 the schedule by which nursing facilities will be decertified 94.13 beginning in fiscal year 2000 under this subdivision. 94.14 Subd. 4. [RULEMAKING EXEMPTION.] The commissioner is 94.15 exempt from all rulemaking requirements in chapter 14 for the 94.16 demonstration project under this section. 94.17 Subd. 5. [LEGISLATIVE REPORTS.] The commissioner shall 94.18 report annually to the legislature every February, from 1999 to 94.19 2003, on the status and progress of the demonstration project 94.20 and shall make recommendations as needed to improve the 94.21 project's effectiveness. 94.22 Sec. 12. Minnesota Statutes 1996, section 256I.05, is 94.23 amended by adding a subdivision to read: 94.24 Subd. 1d. [SUPPLEMENTARY SERVICE RATES FOR CERTAIN 94.25 FACILITIES SERVING PERSONS WITH MENTAL ILLNESS OR CHEMICAL 94.26 DEPENDENCY.] Notwithstanding the provisions of subdivisions 1a 94.27 and 1c for the fiscal year ending June 30, 1998, a county agency 94.28 may negotiate a supplementary service rate in addition to the 94.29 board and lodging rate for facilities licensed and registered by 94.30 the Minnesota department of health under section 157.17 prior to 94.31 December 31, 1994, if the facility meets the following criteria: 94.32 (1) at least 75 percent of the residents have a primary 94.33 diagnosis of mental illness, chemical dependency, or both, and 94.34 have related special needs; 94.35 (2) the facility provides 24-hour, on-site, year-round 94.36 supportive services by qualified staff capable of intervention 95.1 in a crisis of persons with late-state inebriety or mental 95.2 illness who are vulnerable to abuse or neglect; 95.3 (3) the services at the facility include, but are not 95.4 limited to: 95.5 (i) secure central storage of medication; 95.6 (ii) reminders and monitoring of medication for 95.7 self-administration; 95.8 (iii) support for developing an individual medical and 95.9 social service plan, updating the plan, and monitoring 95.10 compliance with the plan; and 95.11 (iv) assistance with setting up meetings, appointments, and 95.12 transportation to access medical, chemical health, and mental 95.13 health service providers; 95.14 (4) each resident has a documented need for at least one of 95.15 the services provided; 95.16 (5) each resident has been offered an opportunity to apply 95.17 for admission to a licensed residential treatment program for 95.18 mental illness, chemical dependency, or both, have refused that 95.19 offer, and the offer and their refusal has been documented to 95.20 writing; and 95.21 (6) the residents are not eligible for home and 95.22 community-based services waivers because of their unique need 95.23 for community support. 95.24 After the increase, the total supplementary service rate 95.25 must not exceed the statewide rate limit for residential care 95.26 services in effect January 1, 1997, for the community 95.27 alternatives for disabled individuals waivers services program 95.28 for individuals with a case mix "A" classification. 95.29 Sec. 13. Laws 1997, chapter 7, article 1, section 75, is 95.30 amended to read: 95.31 Sec. 75. [REPEALER; SECTION 144A.61, SUBDIVISION 6 NOTE.] 95.32 Laws 1989, chapter 282, article 3, section 28, subdivision 95.33 6, is repealed. 95.34 Sec. 14. [EFFECTIVE DATE.] 95.35 Section 8 is effective the day following final enactment. 95.36 ARTICLE 4 96.1 HEALTH CARE 96.2 Section 1. Minnesota Statutes 1996, section 62D.04, 96.3 subdivision 5, is amended to read: 96.4 Subd. 5. [PARTICIPATION; GOVERNMENT PROGRAMS.] Health 96.5 maintenance organizations shall, as a condition of receiving and 96.6 retaining a certificate of authority, participate in the medical 96.7 assistance, general assistance medical care, and MinnesotaCare 96.8 programs. A health maintenance organization is required to 96.9 submit proposals in good faith that meet the requirements of the 96.10 request for proposal provided that the requirements can be 96.11 reasonably met by a health maintenance organization to serve 96.12 individuals eligible for the above programs in a geographic 96.13 region of the state if, at the time of publication of a request 96.14 for proposal, the percentage of recipients in the public 96.15 programs in the region who are enrolled in the health 96.16 maintenance organization is less than the health maintenance 96.17 organization's percentage of the total number of individuals 96.18 enrolled in health maintenance organizations in the same 96.19 region. Geographic regions shall be defined by the commissioner 96.20 of human services in the request for proposals. 96.21 Sec. 2. Minnesota Statutes 1996, section 62N.10, 96.22 subdivision 4, is amended to read: 96.23 Subd. 4. [PARTICIPATION; GOVERNMENT PROGRAMS.] Integrated 96.24 service networks shall, as a condition of licensure, participate 96.25 in the medical assistance, general assistance medical care, and 96.26 MinnesotaCare programs. An integrated service network is 96.27 required to submit proposals in good faith that meet the 96.28 requirements of the request for proposals provided that the 96.29 requirements can be reasonably met by an integrated service 96.30 network to serve persons who are eligible for the above programs 96.31 if, at the time of publication of a request for proposal, the 96.32 percentage of recipients in the public programs in the region 96.33 who are enrolled in the integrated service network is less than 96.34 the integrated service network's percentage of the total number 96.35 of individuals enrolled in integrated service networks in the 96.36 same region. Geographic regions shall be defined by the 97.1 commissioner of human services in the request for proposals. 97.2 Sec. 3. Minnesota Statutes 1996, section 144.0721, 97.3 subdivision 3, is amended to read: 97.4 Subd. 3. [LEVEL OF CARE CRITERIA; MODIFICATIONS.] The 97.5 commissioner shall seek appropriate federal waivers to implement 97.6 this subdivision. Notwithstanding any laws or rules to the 97.7 contrary, effective July 1,19961997, Minnesota's level of care 97.8 criteria for admission of any person to a nursing facility 97.9 licensed under chapter 144A, or a boarding care home licensed 97.10 under sections 144.50 to 144.56, are modified as follows: 97.11 (1) the resident reimbursement classifications and 97.12 terminology established by rule under sections 256B.41 to 97.13 256B.48 are the basis for applying the level of care criteria 97.14 changes; 97.15 (2) an applicant to a certified nursing facility or 97.16 certified boarding care home who is dependent in zero, one, or 97.17 two case mix activities of daily living, is classified as a case 97.18 mix A, and is independent in orientation and self-preservation, 97.19 is reclassified as a high function class A person and is not 97.20 eligible for admission to Minnesota certified nursing facilities 97.21 or certified boarding care homes; 97.22 (3) applicants in clause (2) who are dependent in one or 97.23 two case mix activities of daily living, who are eligible for 97.24 assistance as determined under sections 256B.055 and 256B.056 or 97.25 meet eligibility criteria for section 256B.0913 are eligible for 97.26 a service allowance under section 256B.0913, subdivision 15, and 97.27 are not eligible for services under sections 256B.0913, 97.28 subdivisions 1 to 14, and 256B.0915.Applicants in clause (2)97.29shall have the option of receiving personal care assistant and97.30home health aide services under section 256B.0625, if otherwise97.31eligible, or of receiving the service allowance option, but not97.32both.Applicants in clause (2) shall have the option of 97.33 residing in community settings under sections 256I.01 to 97.34 256I.06, if otherwise eligible, or receiving the services 97.35 allowance option under section 256B.0913, subdivision 15, but 97.36 not both; 98.1 (4) residents of a certified nursing facility or certified 98.2 boarding care home who were admitted before July 1,19961997, 98.3 or individuals receiving services under section 256B.0913, 98.4 subdivisions 1 to 14, or 256B.0915, before July 1,19961997, 98.5 are not subject to the new level of care criteria unless the 98.6 resident is discharged home or to another service setting other 98.7 than a certified nursing facility or certified boarding care 98.8 home and applies for admission to a certified nursing facility 98.9 or certified boarding care home after June 30,19961997; 98.10 (5) the local screening teams under section 256B.0911shall98.11make preliminary determinations concerningmay determine the 98.12 existence of extraordinary circumstances which render 98.13 nonadmission to a certified nursing or certified boarding care 98.14 home a serious threat to the health and safety of applicants in 98.15 clause (2) and may authorizeanadmissionfor a short-term stay98.16atto a certified nursing facility or certified boarding care 98.17 home in accordance with a treatment and discharge planfor up to98.1830 days per year; and 98.19 (6) an individual deemed ineligible for admission to 98.20 Minnesota certified nursing facilities is entitled to an appeal 98.21 under section 256.045, subdivision 3. 98.22 If the commissioner determines upon appeal that an 98.23 applicant in clause (2) presents extraordinary circumstances 98.24 including but not limited to the absence or inaccessibility of 98.25 suitable alternatives, contravening family circumstances,andor 98.26 protective service issues, the applicant may be eligible for 98.27 admission to Minnesota certified nursing facilities or certified 98.28 boarding care homes. 98.29 Sec. 4. Minnesota Statutes 1996, section 254B.02, 98.30 subdivision 1, is amended to read: 98.31 Subdivision 1. [CHEMICAL DEPENDENCY TREATMENT ALLOCATION.] 98.32 The chemical dependency funds appropriated for allocation shall 98.33 be placed in a special revenue account.For the fiscal year98.34beginning July 1, 1987, funds shall be transferred to operate98.35the vendor payment, invoice processing, and collections system98.36for one year.The commissioner shall annually transfer funds 99.1 from the chemical dependency fund to pay for operation of the 99.2 drug and alcohol abuse normative evaluation system and to pay 99.3 for all costs incurred by adding two positions for licensing of 99.4 chemical dependency treatment and rehabilitation programs 99.5 located in hospitals for which funds are not otherwise 99.6 appropriated. For each year of the biennium ending June 30, 99.7 1999, the commissioner shall allocate funds to the American 99.8 Indian chemical dependency tribal account for treatment of 99.9 American Indians by eligible vendors under section 254B.05, 99.10 equal to the amount allocated in fiscal year 1997. The 99.11 commissioner shall annually divide the money available in the 99.12 chemical dependency fund that is not held in reserve by counties 99.13 from a previous allocation, or allocated to the American Indian 99.14 chemical dependency tribal account.TwelveSix percent of the 99.15 remaining money must be reserved for the nonreservation American 99.16 Indian chemical dependency allocation for treatment of American 99.17 Indians by eligible vendors under section 254B.05, subdivision 99.18 1. The remainder of the money must be allocated among the 99.19 counties according to the following formula, using state 99.20 demographer data and other data sources determined by the 99.21 commissioner: 99.22 (a) For purposes of this formula, American Indians and 99.23 children under age 14 are subtracted from the population of each 99.24 county to determine the restricted population. 99.25 (b) The amount of chemical dependency fund expenditures for 99.26 entitled persons for services not covered by prepaid plans 99.27 governed by section 256B.69 in the previous year is divided by 99.28 the amount of chemical dependency fund expenditures for entitled 99.29 persons for all services to determine the proportion of exempt 99.30 service expenditures for each county. 99.31 (c) The prepaid plan months of eligibility is multiplied by 99.32 the proportion of exempt service expenditures to determine the 99.33 adjusted prepaid plan months of eligibility for each county. 99.34 (d) The adjusted prepaid plan months of eligibility is 99.35 added to the number of restricted population fee for service 99.36 months of eligibility for aid to families with dependent 100.1 children, general assistance, and medical assistance and divided 100.2 by the county restricted population to determine county per 100.3 capita months of covered service eligibility. 100.4 (e) The number of adjusted prepaid plan months of 100.5 eligibility for the state is added to the number of fee for 100.6 service months of eligibility for aid to families with dependent 100.7 children, general assistance, and medical assistance for the 100.8 state restricted population and divided by the state restricted 100.9 population to determine state per capita months of covered 100.10 service eligibility. 100.11 (f) The county per capita months of covered service 100.12 eligibility is divided by the state per capita months of covered 100.13 service eligibility to determine the county welfare caseload 100.14 factor. 100.15 (g) The median married couple income for the most recent 100.16 three-year period available for the state is divided by the 100.17 median married couple income for the same period for each county 100.18 to determine the income factor for each county. 100.19 (h) The county restricted population is multiplied by the 100.20 sum of the county welfare caseload factor and the county income 100.21 factor to determine the adjusted population. 100.22 (i) $15,000 shall be allocated to each county. 100.23 (j) The remaining funds shall be allocated proportional to 100.24 the county adjusted population. 100.25 Sec. 5. Minnesota Statutes 1996, section 254B.09, 100.26 subdivision 4, is amended to read: 100.27 Subd. 4. [TRIBAL ALLOCATION.]Forty-two and one-half100.28 Eighty-five percent of the American Indian chemical dependency 100.29 tribal account must be allocated to the federally recognized 100.30 American Indian tribal governing bodies that have entered into 100.31 an agreement under subdivision 2 as follows: $10,000 must be 100.32 allocated to each governing body and the remainder must be 100.33 allocated in direct proportion to the population of the 100.34 reservation according to the most recently available estimates 100.35 from the federal Bureau of Indian Affairs. When a tribal 100.36 governing body has not entered into an agreement with the 101.1 commissioner under subdivision 2, the county may use funds 101.2 allocated to the reservation to pay for chemical dependency 101.3 services for a current resident of the county and of the 101.4 reservation. 101.5 Sec. 6. Minnesota Statutes 1996, section 254B.09, 101.6 subdivision 5, is amended to read: 101.7 Subd. 5. [TRIBAL RESERVE ACCOUNT.] The commissioner shall 101.8 reserve7.515 percent of the American Indian chemical 101.9 dependency tribal account. The reserve must be allocated to 101.10 those tribal units that have used all money allocated under 101.11 subdivision 4 according to agreements made under subdivision 2 101.12 and to counties submitting invoices for American Indians under 101.13 subdivision 1 when all money allocated under subdivision 4 has 101.14 been used. An American Indian tribal governing body or a county 101.15 submitting invoices under subdivision 1 may receive not more 101.16 than 30 percent of the reserve account in a year. The 101.17 commissioner may refuse to make reserve payments for persons not 101.18 eligible under section 254B.04, subdivision 1, if the tribal 101.19 governing body responsible for treatment placement has exhausted 101.20 its allocation. Money must be allocated as invoices are 101.21 received. 101.22 Sec. 7. Minnesota Statutes 1996, section 254B.09, 101.23 subdivision 7, is amended to read: 101.24 Subd. 7. [NONRESERVATION INDIAN ACCOUNT.]Fifty percent of101.25 The nonreservation American Indian chemical dependency 101.26 allocation must be held in reserve by the commissioner in an 101.27 account for treatment of Indians not residing on lands of a 101.28 reservation receiving money under subdivision 4. This money 101.29 must be used to pay for services certified by county invoice to 101.30 have been provided to an American Indian eligible recipient. 101.31 Money allocated under this subdivision may be used for payments 101.32 on behalf of American Indian county residents only if, in 101.33 addition to other placement standards, the county certifies that 101.34 the placement was appropriate to the cultural orientation of the 101.35 client. Any funds for treatment of nonreservation Indians 101.36 remaining at the end of a fiscal year shall be reallocated under 102.1 section 254B.02. 102.2 Sec. 8. Minnesota Statutes 1996, section 256.045, 102.3 subdivision 3, is amended to read: 102.4 Subd. 3. [STATE AGENCY HEARINGS.] (a) State agency 102.5 hearings are available for the following: (1) any person 102.6 applying for, receiving or having received public assistance or 102.7 a program of social services granted by the state agency or a 102.8 county agency under sections 252.32, 256.031 to 256.036, and 102.9 256.72 to 256.879, chapters 256B, 256D, 256E, 261, or the 102.10 federal Food Stamp Act whose application for assistance is 102.11 denied, not acted upon with reasonable promptness, or whose 102.12 assistance is suspended, reduced, terminated, or claimed to have 102.13 been incorrectly paid; (2) any patient or relative aggrieved by 102.14 an order of the commissioner under section 252.27; (3) a party 102.15 aggrieved by a ruling of a prepaid health plan; (4) any 102.16 individual or facility determined by a lead agency to have 102.17 maltreated a vulnerable adult under section 626.557 after they 102.18 have exercised their right to administrative reconsideration 102.19 under section 626.557; (5) any person whose claim for foster 102.20 care payment pursuant to a placement of the child resulting from 102.21 a child protection assessment under section 626.556 is denied or 102.22 not acted upon with reasonable promptness, regardless of funding 102.23 source; (6) any person to whom a right of appeal pursuant to 102.24 this section is given by other provision of law; or (7) an 102.25 applicant aggrieved by an adverse decision to an application for 102.26 a hardship waiver under section 256B.15. The failure to 102.27 exercise the right to an administrative reconsideration shall 102.28 not be a bar to a hearing under this section if federal law 102.29 provides an individual the right to a hearing to dispute a 102.30 finding of maltreatment. Individuals and organizations 102.31 specified in this section may contest the specified action, 102.32 decision, or final disposition before the state agency by 102.33 submitting a written request for a hearing to the state agency 102.34 within 30 days after receiving written notice of the action, 102.35 decision, or final disposition, or within 90 days of such 102.36 written notice if the applicant, recipient, patient, or relative 103.1 shows good cause why the request was not submitted within the 103.2 30-day time limit. 103.3 The hearing for an individual or facility under clause (4) 103.4 is the only administrative appeal to the final lead agency 103.5 disposition specifically, including a challenge to the accuracy 103.6 and completeness of data under section 13.04. Hearings 103.7 requested under clause (4) apply only to incidents of 103.8 maltreatment that occur on or after October 1, 1995. Hearings 103.9 requested by nursing assistants in nursing homes alleged to have 103.10 maltreated a resident prior to October 1, 1995, shall be held as 103.11 a contested case proceeding under the provisions of chapter 14. 103.12 For purposes of this section, bargaining unit grievance 103.13 procedures are not an administrative appeal. 103.14 The scope of hearings involving claims to foster care 103.15 payments under clause (5) shall be limited to the issue of 103.16 whether the county is legally responsible for a child's 103.17 placement under court order or voluntary placement agreement 103.18 and, if so, the correct amount of foster care payment to be made 103.19 on the child's behalf and shall not include review of the 103.20 propriety of the county's child protection determination or 103.21 child placement decision. 103.22 (b)Except for a prepaid health plan,A vendor of medical 103.23 care as defined in section 256B.02, subdivision 7, or a vendor 103.24 under contract with a county agency to provide social services 103.25 under section 256E.08, subdivision 4, is not a party and may not 103.26 request a hearing under this section, except if assisting a 103.27 recipient as provided in subdivision 4. 103.28 (c) An applicant or recipient is not entitled to receive 103.29 social services beyond the services included in the amended 103.30 community social services plan developed under section 256E.081, 103.31 subdivision 3, if the county agency has met the requirements in 103.32 section 256E.081. 103.33 Sec. 9. Minnesota Statutes 1996, section 256.045, 103.34 subdivision 5, is amended to read: 103.35 Subd. 5. [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] 103.36 This subdivision does not apply to appeals under subdivision 104.1 3b. A state human services referee shall conduct a hearing on 104.2 the appeal and shall recommend an order to the commissioner of 104.3 human services. The recommended order must be based on all 104.4 relevant evidence and must not be limited to a review of the 104.5 propriety of the state or county agency's action. A referee may 104.6 take official notice of adjudicative facts. The commissioner of 104.7 human services may accept the recommended order of a state human 104.8 services referee and issue the order to the county agency and 104.9 the applicant, recipient, former recipient, or prepaid health 104.10 plan. The commissioner on refusing to accept the recommended 104.11 order of the state human services referee, shall notify the 104.12 county agency and the applicant, recipient, former recipient, or 104.13 prepaid health plan of that fact and shall state reasons 104.14 therefor and shall allow each party ten days' time to submit 104.15 additional written argument on the matter. After the expiration 104.16 of the ten-day period, the commissioner shall issue an order on 104.17 the matter to the county agency and the applicant, recipient, 104.18 former recipient, or prepaid health plan. 104.19 A party aggrieved by an order of the commissioner may 104.20 appeal under subdivision 7, or request reconsideration by the 104.21 commissioner within 30 days after the date the commissioner 104.22 issues the order. The commissioner may reconsider an order upon 104.23 request of any party or on the commissioner's own motion. A 104.24 request for reconsideration does not stay implementation of the 104.25 commissioner's order. Upon reconsideration, the commissioner 104.26 may issue an amended order or an order affirming the original 104.27 order. 104.28 Any order of the commissioner issued under this subdivision 104.29 shall be conclusive upon the parties unless appeal is taken in 104.30 the manner provided by subdivision 7. Any order of the 104.31 commissioner is binding on the parties and must be implemented 104.32 by the state agencyor, a county agency, or a prepaid health 104.33 plan according to subdivision 3a, until the order is reversed by 104.34 the district court, or unless the commissioner or a district 104.35 court orders monthly assistance or aid or services paid or 104.36 provided under subdivision 10. 105.1Except for a prepaid health plan,A vendor of medical care 105.2 as defined in section 256B.02, subdivision 7, or a vendor under 105.3 contract with a county agency to provide social services under 105.4 section 256E.08, subdivision 4, is not a party and may not 105.5 request a hearing or seek judicial review of an order issued 105.6 under this section, unless assisting a recipient as provided in 105.7 subdivision 4. A prepaid health plan is a party to an appeal 105.8 under subdivision 3a, but cannot seek judicial review of an 105.9 order issued under this section. 105.10 Sec. 10. Minnesota Statutes 1996, section 256.045, 105.11 subdivision 7, is amended to read: 105.12 Subd. 7. [JUDICIAL REVIEW.] Except for a prepaid health 105.13 plan, any party who is aggrieved by an order of the commissioner 105.14 of human services, or the commissioner of health in appeals 105.15 within the commissioner's jurisdiction under subdivision 3b, may 105.16 appeal the order to the district court of the county responsible 105.17 for furnishing assistance, or, in appeals under subdivision 3b, 105.18 the county where the maltreatment occurred, by serving a written 105.19 copy of a notice of appeal upon the commissioner and any adverse 105.20 party of record within 30 days after the date the commissioner 105.21 issued the order, the amended order, or order affirming the 105.22 original order, and by filing the original notice and proof of 105.23 service with the court administrator of the district court. 105.24 Service may be made personally or by mail; service by mail is 105.25 complete upon mailing; no filing fee shall be required by the 105.26 court administrator in appeals taken pursuant to this 105.27 subdivision, with the exception of appeals taken under 105.28 subdivision 3b. The commissioner may elect to become a party to 105.29 the proceedings in the district court. Except for appeals under 105.30 subdivision 3b, any party may demand that the commissioner 105.31 furnish all parties to the proceedings with a copy of the 105.32 decision, and a transcript of any testimony, evidence, or other 105.33 supporting papers from the hearing held before the human 105.34 services referee, by serving a written demand upon the 105.35 commissioner within 30 days after service of the notice of 105.36 appeal. Any party aggrieved by the failure of an adverse party 106.1 to obey an order issued by the commissioner under subdivision 5 106.2 may compel performance according to the order in the manner 106.3 prescribed in sections 586.01 to 586.12. 106.4 Sec. 11. Minnesota Statutes 1996, section 256.476, 106.5 subdivision 2, is amended to read: 106.6 Subd. 2. [DEFINITIONS.] For purposes of this section, the 106.7 following terms have the meanings given them: 106.8 (a) "County board" means the county board of commissioners 106.9 for the county of financial responsibility as defined in section 106.10 256G.02, subdivision 4, or its designated representative. When 106.11 a human services board has been established under sections 106.12 402.01 to 402.10, it shall be considered the county board for 106.13 the purposes of this section. 106.14 (b) "Family" means the person's birth parents, adoptive 106.15 parents or stepparents, siblings or stepsiblings, children or 106.16 stepchildren, grandparents, grandchildren, niece, nephew, aunt, 106.17 uncle, or spouse. For the purposes of this section, a family 106.18 member is at least 18 years of age. 106.19 (c) "Functional limitations" means the long-term inability 106.20 to perform an activity or task in one or more areas of major 106.21 life activity, including self-care, understanding and use of 106.22 language, learning, mobility, self-direction, and capacity for 106.23 independent living. For the purpose of this section, the 106.24 inability to perform an activity or task results from a mental, 106.25 emotional, psychological, sensory, or physical disability, 106.26 condition, or illness. 106.27 (d) "Informed choice" means a voluntary decision made by 106.28 the person or the person's legal representative, after becoming 106.29 familiarized with the alternatives to: 106.30 (1) select a preferred alternative from a number of 106.31 feasible alternatives; 106.32 (2) select an alternative which may be developed in the 106.33 future; and 106.34 (3) refuse any or all alternatives. 106.35 (e) "Local agency" means the local agency authorized by the 106.36 county board to carry out the provisions of this section. 107.1 (f) "Person" or "persons" means a person or persons meeting 107.2 the eligibility criteria in subdivision 3. 107.3 (g)"Responsible individual""Authorized representative" 107.4 means an individual designated by the person or their legal 107.5 representative to act on their behalf. This individual may be a 107.6 family member, guardian, representative payee, or other 107.7 individual designated by the person or their legal 107.8 representative, if any, to assist in purchasing and arranging 107.9 for supports. For the purposes of this section,a responsible107.10individualan authorized representative is at least 18 years of 107.11 age. 107.12 (h) "Screening" means the screening of a person's service 107.13 needs under sections 256B.0911 and 256B.092. 107.14 (i) "Supports" means services, care, aids, home 107.15 modifications, or assistance purchased by the person or the 107.16 person's family. Examples of supports include respite care, 107.17 assistance with daily living, and adaptive aids. For the 107.18 purpose of this section, notwithstanding the provisions of 107.19 section 144A.43, supports purchased under the consumer support 107.20 program are not considered home care services. 107.21 (j) "Program of origination" means the program the 107.22 individual transferred from when approved for the consumer 107.23 support grant program. 107.24 Sec. 12. Minnesota Statutes 1996, section 256.476, 107.25 subdivision 3, is amended to read: 107.26 Subd. 3. [ELIGIBILITY TO APPLY FOR GRANTS.] (a) A person 107.27 is eligible to apply for a consumer support grant if the person 107.28 meets all of the following criteria: 107.29 (1) the person is eligible for and has been approved to 107.30 receive services under medical assistance as determined under 107.31 sections 256B.055 and 256B.056 or the person is eligible for and 107.32 has been approved to receive services under alternative care 107.33 services as determined under section 256B.0913 or the person has 107.34 been approved to receive a grant under the developmental 107.35 disability family support program under section 252.32; 107.36 (2) the person is able to direct and purchase the person's 108.1 own care and supports, or the person has a family member, legal 108.2 representative, or otherresponsible individualauthorized 108.3 representative who can purchase and arrange supports on the 108.4 person's behalf; 108.5 (3) the person has functional limitations, requires ongoing 108.6 supports to live in the community, and is at risk of or would 108.7 continue institutionalization without such supports; and 108.8 (4) the person will live in a home. For the purpose of 108.9 this section, "home" means the person's own home or home of a 108.10 person's family member. These homes are natural home settings 108.11 and are not licensed by the department of health or human 108.12 services. 108.13 (b) Persons may not concurrently receive a consumer support 108.14 grant if they are: 108.15 (1) receiving home and community-based services under 108.16 United States Code, title 42, section 1396h(c); personal care 108.17 attendant and home health aide services under section 256B.0625; 108.18 a developmental disability family support grant; or alternative 108.19 care services under section 256B.0913; or 108.20 (2) residing in an institutional or congregate care setting. 108.21 (c) A person or person's family receiving a consumer 108.22 support grant shall not be charged a fee or premium by a local 108.23 agency for participating in the program. A person or person's 108.24 family is not eligible for a consumer support grant if their 108.25 income is at a level where they are required to pay a parental 108.26 fee under sections 252.27, 256B.055, subdivision 12, and 256B.14 108.27 and rules adopted under those sections for medical assistance 108.28 services to a disabled child living with at least one parent. 108.29 (d) The commissioner may limit the participation of nursing 108.30 facility residents, residents of intermediate care facilities 108.31 for persons with mental retardation, and the recipients of 108.32 services from federal waiver programs in the consumer support 108.33 grant program if the participation of these individuals will 108.34 result in an increase in the cost to the state. 108.35 (e) The commissioner shall establish a budgeted 108.36 appropriation each fiscal year for the consumer support grant 109.1 program. The number of individuals participating in the program 109.2 will be adjusted so the total amount allocated to counties does 109.3 not exceed the amount of the budgeted appropriation. The 109.4 budgeted appropriation will be adjusted annually to accommodate 109.5 changes in demand for the consumer support grants. 109.6 Sec. 13. Minnesota Statutes 1996, section 256.476, 109.7 subdivision 4, is amended to read: 109.8 Subd. 4. [SUPPORT GRANTS; CRITERIA AND LIMITATIONS.] (a) A 109.9 county board may choose to participate in the consumer support 109.10 grant program. If a county board chooses to participate in the 109.11 program, the local agency shall establish written procedures and 109.12 criteria to determine the amount and use of support grants. 109.13 These procedures must include, at least, the availability of 109.14 respite care, assistance with daily living, and adaptive aids. 109.15 The local agency may establish monthly or annual maximum amounts 109.16 for grants and procedures where exceptional resources may be 109.17 required to meet the health and safety needs of the person on a 109.18 time-limited basis, however, the total amount awarded to each 109.19 individual may not exceed the limits established in subdivision 109.20 5, paragraph (f). 109.21 (b) Support grants to a person or a person's familymay109.22 will be provided through a monthly subsidyor lump sumpayment 109.23basisand be in the form of cash, voucher, or direct county 109.24 payment to vendor. Support grant amounts must be determined by 109.25 the local agency. Each service and item purchased with a 109.26 support grant must meet all of the following criteria: 109.27 (1) it must be over and above the normal cost of caring for 109.28 the person if the person did not have functional limitations; 109.29 (2) it must be directly attributable to the person's 109.30 functional limitations; 109.31 (3) it must enable the person or the person's family to 109.32 delay or prevent out-of-home placement of the person; and 109.33 (4) it must be consistent with the needs identified in the 109.34 service plan, when applicable. 109.35 (c) Items and services purchased with support grants must 109.36 be those for which there are no other public or private funds 110.1 available to the person or the person's family. Fees assessed 110.2 to the person or the person's family for health and human 110.3 services are not reimbursable through the grant. 110.4 (d) In approving or denying applications, the local agency 110.5 shall consider the following factors: 110.6 (1) the extent and areas of the person's functional 110.7 limitations; 110.8 (2) the degree of need in the home environment for 110.9 additional support; and 110.10 (3) the potential effectiveness of the grant to maintain 110.11 and support the person in the family environment or the person's 110.12 own home. 110.13 (e) At the time of application to the program or screening 110.14 for other services, the person or the person's family shall be 110.15 provided sufficient information to ensure an informed choice of 110.16 alternatives by the person, the person's legal representative, 110.17 if any, or the person's family. The application shall be made 110.18 to the local agency and shall specify the needs of the person 110.19 and family, the form and amount of grant requested, the items 110.20 and services to be reimbursed, and evidence of eligibility for 110.21 medical assistance or alternative care program. 110.22 (f) Upon approval of an application by the local agency and 110.23 agreement on a support plan for the person or person's family, 110.24 the local agency shall make grants to the person or the person's 110.25 family. The grant shall be in an amount for the direct costs of 110.26 the services or supports outlined in the service agreement. 110.27 (g) Reimbursable costs shall not include costs for 110.28 resources already available, such as special education classes, 110.29 day training and habilitation, case management, other services 110.30 to which the person is entitled, medical costs covered by 110.31 insurance or other health programs, or other resources usually 110.32 available at no cost to the person or the person's family. 110.33 (h) The state of Minnesota, the county boards participating 110.34 in the consumer support grant program, or the agencies acting on 110.35 behalf of the county boards in the implementation and 110.36 administration of the consumer support grant program shall not 111.1 be liable for damages, injuries, or liabilities sustained 111.2 through the purchase of support by the individual, the 111.3 individual's family, or the authorized representative under this 111.4 section with funds received through the consumer support grant 111.5 program. Liabilities include but are not limited to: workers' 111.6 compensation liability, the Federal Insurance Contributions Act 111.7 (FICA), or the Federal Unemployment Tax Act (FUTA). For 111.8 purposes of this section, participating county boards and 111.9 agencies acting on behalf of county boards are exempt from the 111.10 provisions of section 268.04. 111.11 Sec. 14. Minnesota Statutes 1996, section 256.476, 111.12 subdivision 5, is amended to read: 111.13 Subd. 5. [REIMBURSEMENT, ALLOCATIONS, AND REPORTING.] (a) 111.14 For the purpose of transferring persons to the consumer support 111.15 grant program from specific programs or services, such as the 111.16 developmental disability family support program and alternative 111.17 care program, personal care attendant, home health aide, or 111.18 nursing facility services, the amount of funds transferred by 111.19 the commissioner between the developmental disability family 111.20 support program account, the alternative care account, the 111.21 medical assistance account, or the consumer support grant 111.22 account shall be based on each county's participation in 111.23 transferring persons to the consumer support grant program from 111.24 those programs and services. 111.25 (b) At the beginning of each fiscal year, county 111.26 allocations for consumer support grants shall be based on: 111.27 (1) the number of persons to whom the county board expects 111.28 to provide consumer supports grants; 111.29 (2) their eligibility for current program and services; 111.30 (3) the amount of nonfederal dollars expended on those 111.31 individuals for those programs and services; or in situations 111.32 where an individual is unable to obtain the support needed from 111.33 the program of origination due to the unavailability of service 111.34 providers at the time or the location where the supports are 111.35 needed, the allocation will be based on the county's best 111.36 estimate of the nonfederal dollars that would have been expended 112.1 if the services had been available; and 112.2 (4) projected dates when persons will start receiving 112.3 grants. County allocations shall be adjusted periodically by 112.4 the commissioner based on the actual transfer of persons or 112.5 service openings, and the nonfederal dollars associated with 112.6 those persons or service openings, to the consumer support grant 112.7 program. 112.8 (c) The amount of funds transferred by the commissioner 112.9 from the alternative care account and the medical assistance 112.10 account for an individual may be changed if it is determined by 112.11 the county or its agent that the individual's need for support 112.12 has changed. 112.13 (d) The authority to utilize funds transferred to the 112.14 consumer support grant account for the purposes of implementing 112.15 and administering the consumer support grant program will not be 112.16 limited or constrained by the spending authority provided to the 112.17 program of origination. 112.18 (e) The commissioner shall use up to five percent of each 112.19 county's allocation, as adjusted, for payments to that county 112.20 for administrative expenses, to be paid as a proportionate 112.21 addition to reported direct service expenditures. 112.22(d)(f) Except as provided below, the county allocation for 112.23 each individual or individual's family cannot exceed 80 percent 112.24 of the total nonfederal dollars expended on the individual by 112.25 the program of origination except for the developmental 112.26 disabilities family support grant program which can be approved 112.27 up to 100 percent of the nonfederal dollars and in situations as 112.28 described in paragraph (b), clause (4). In situations where 112.29 exceptional need exists or the individual's need for support 112.30 increases, up to 100 percent of the nonfederal dollars expended 112.31 may be allocated to the county. Allocations that exceed 80 112.32 percent of the nonfederal dollars expended on the individual by 112.33 the program of origination must be approved by the 112.34 commissioner. The remainder of the amount expended on the 112.35 individual by the program of origination will be used in the 112.36 following proportions: half will be made available to the 113.1 consumer support grant program and participating counties for 113.2 consumer training, resource development, and other costs, and 113.3 half will be returned to the state general fund. 113.4 (g) The commissioner may recover, suspend, or withhold 113.5 payments if the county board, local agency, or grantee does not 113.6 comply with the requirements of this section. 113.7 Sec. 15. Minnesota Statutes 1996, section 256.9363, 113.8 subdivision 7, is amended to read: 113.9 Subd. 7. [MANAGED CARE PLAN VENDOR REQUIREMENTS.] The 113.10 following requirements apply to all counties or vendors who 113.11 contract with the department of human services to serve 113.12 MinnesotaCare recipients. Managed care plan contractors: 113.13 (1) shall authorize and arrange for the provision of the 113.14 full range of services listed in section 256.9353, except dental 113.15 services provided under section 256B.037, in order to ensure 113.16 appropriate health care is delivered to enrollees; 113.17 (2) shall accept the prospective, per capita payment or 113.18 other contractually defined payment from the commissioner in 113.19 return for the provision and coordination of covered health care 113.20 services for eligible individuals enrolled in the program; 113.21 (3) may contract with other health care and social service 113.22 practitioners to provide services to enrollees; 113.23 (4) shall provide for an enrollee grievance process as 113.24 required by the commissioner and set forth in the contract with 113.25 the department; 113.26 (5) shall retain all revenue from enrollee copayments; 113.27 (6) shall accept all eligible MinnesotaCare enrollees, 113.28 without regard to health status or previous utilization of 113.29 health services; 113.30 (7) shall demonstrate capacity to accept financial risk 113.31 according to requirements specified in the contract with the 113.32 department. A health maintenance organization licensed under 113.33 chapter 62D, or a nonprofit health plan licensed under chapter 113.34 62C, is not required to demonstrate financial risk capacity, 113.35 beyond that which is required to comply with chapters 62C and 113.36 62D; and 114.1 (8) shall submit information as required by the 114.2 commissioner, including data required for assessing enrollee 114.3 satisfaction, quality of care, cost, and utilization of services. 114.4 Sec. 16. Minnesota Statutes 1996, section 256.969, 114.5 subdivision 1, is amended to read: 114.6 Subdivision 1. [HOSPITAL COST INDEX.] (a) The hospital 114.7 cost index shall be the change in the Consumer Price Index-All 114.8 Items (United States city average) (CPI-U) forecasted by Data 114.9 Resources, Inc. The commissioner shall use the indices as 114.10 forecasted in the third quarter of the calendar year prior to 114.11 the rate year. The hospital cost index may be used to adjust 114.12 the base year operating payment rate through the rate year on an 114.13 annually compounded basis. 114.14 (b) For fiscal years beginning on or after July 1, 1993, 114.15 the commissioner of human services shall not provide automatic 114.16 annual inflation adjustments for hospital payment rates under 114.17 medical assistance, nor under general assistance medical care, 114.18 except that the inflation adjustments under paragraph (a) for 114.19 medical assistance, excluding general assistance medical care, 114.20 shall apply through calendar year19971999. The commissioner 114.21 of finance shall include as a budget change request in each 114.22 biennial detailed expenditure budget submitted to the 114.23 legislature under section 16A.11 annual adjustments in hospital 114.24 payment rates under medical assistance and general assistance 114.25 medical care, based upon the hospital cost index. 114.26 Sec. 17. Minnesota Statutes 1996, section 256.9695, 114.27 subdivision 1, is amended to read: 114.28 Subdivision 1. [APPEALS.] A hospital may appeal a decision 114.29 arising from the application of standards or methods under 114.30 section 256.9685, 256.9686, or 256.969, if an appeal would 114.31 result in a change to the hospital's payment rate or payments. 114.32 Both overpayments and underpayments that result from the 114.33 submission of appeals shall be implemented. Regardless of any 114.34 appeal outcome, relative values shall not be recalculated. The 114.35 appeal shall be heard by an administrative law judge according 114.36 to sections 14.57 to 14.62, or upon agreement by both parties, 115.1 according to a modified appeals procedure established by the 115.2 commissioner and the office of administrative hearings. In any 115.3 proceeding under this section, the appealing party must 115.4 demonstrate by a preponderance of the evidence that the 115.5 commissioner's determination is incorrect or not according to 115.6 law. 115.7 (a) To appeal a payment rate or payment determination or a 115.8 determination made from base year information, the hospital 115.9 shall file a written appeal request to the commissioner within 115.10 60 days of the date the payment rate determination was mailed. 115.11 The appeal request shall specify: (i) the disputed items; (ii) 115.12 the authority in federal or state statute or rule upon which the 115.13 hospital relies for each disputed item; and (iii) the name and 115.14 address of the person to contact regarding the appeal. Facts to 115.15 be considered in any appeal of base year information are limited 115.16 to those in existence at the time the payment rates of the first 115.17 rate year were established from the base year information. In 115.18 the case of Medicare settled appeals, the 60-day appeal period 115.19 shall begin on the mailing date of the notice by the Medicare 115.20 program or the date the medical assistance payment rate 115.21 determination notice is mailed, whichever is later. 115.22 (b) To appeal a payment rate or payment change that results 115.23 from a difference in case mix between the base year and a rate 115.24 year, the procedures and requirements of paragraph (a) apply. 115.25 However, the appeal must be filed with the commissioner within 115.26 120 days after the end of a rate year. A case mix appeal must 115.27 apply to the cost of services to all medical assistance patients 115.28 that received inpatient services from the hospital during the 115.29 rate year appealed. For case mix appeals filed after January 1, 115.30 1997, the difference in case mix and the corresponding payment 115.31 adjustment must exceed a threshold of five percent. 115.32 Sec. 18. Minnesota Statutes 1996, section 256B.04, is 115.33 amended by adding a subdivision to read: 115.34 Subd. 1a. [COMPREHENSIVE HEALTH SERVICES SYSTEM.] The 115.35 commissioner shall carry out the duties in this section with the 115.36 participation of the boards of county commissioners, and with 116.1 full consideration for the interests of counties, to plan and 116.2 implement a unified, accountable, comprehensive health services 116.3 system that: 116.4 (1) promotes accessible and quality health care for all 116.5 Minnesotans; 116.6 (2) assures provision of adequate health care within 116.7 limited state and county resources; 116.8 (3) avoids shifting funding burdens to county tax 116.9 resources; 116.10 (4) provides statewide eligibility, benefit, and service 116.11 expectations; 116.12 (5) manages care, develops risk management strategies, and 116.13 contains cost in all health and human services; and 116.14 (6) supports effective implementation of publicly funded 116.15 health and human services for all areas of the state. 116.16 Sec. 19. Minnesota Statutes 1996, section 256B.055, 116.17 subdivision 12, is amended to read: 116.18 Subd. 12. [DISABLED CHILDREN.] (a) A person is eligible 116.19 for medical assistance if the person is under age 19 and 116.20 qualifies as a disabled individual under United States Code, 116.21 title 42, section 1382c(a), and would be eligible for medical 116.22 assistance under the state plan if residing in a medical 116.23 institution, and the child requires a level of care provided in 116.24 a hospital, nursing facility, or intermediate care facility for 116.25 persons with mental retardation or related conditions, for whom 116.26 home care is appropriate, provided that the cost to medical 116.27 assistance under this section is not more than the amount that 116.28 medical assistance would pay for if the child resides in an 116.29 institution. After the child is determined to be eligible under 116.30 this section, the commissioner shall review the child's 116.31 disability under United States Code, title 42, section 1382c(a) 116.32 and level of care defined under this section no more often than 116.33 annually and may elect, based on the recommendation of health 116.34 care professionals under contract with the state medical review 116.35 team, to extend the review of disability and level of care up to 116.36 a maximum of four years. The commissioner's decision on the 117.1 frequency of continuing review of disability and level of care 117.2 is not subject to administrative appeal under section 256.045. 117.3 Nothing in this subdivision shall be construed as affecting 117.4 other redeterminations of medical assistance eligibility under 117.5 this chapter and annual cost-effective reviews under this 117.6 section. 117.7 (b) For purposes of this subdivision, "hospital" means an 117.8 institution as defined in section 144.696, subdivision 3, 117.9 144.55, subdivision 3, or Minnesota Rules, part 4640.3600, and 117.10 licensed pursuant to sections 144.50 to 144.58. For purposes of 117.11 this subdivision, a child requires a level of care provided in a 117.12 hospital if the child is determined by the commissioner to need 117.13 an extensive array of health services, including mental health 117.14 services, for an undetermined period of time, whose health 117.15 condition requires frequent monitoring and treatment by a health 117.16 care professional or by a person supervised by a health care 117.17 professional, who would reside in a hospital or require frequent 117.18 hospitalization if these services were not provided, and the 117.19 daily care needs are more complex than a nursing facility level 117.20 of care. 117.21 A child with serious emotional disturbance requires a level 117.22 of care provided in a hospital if the commissioner determines 117.23 that the individual requires 24-hour supervision because the 117.24 person exhibits recurrent or frequent suicidal or homicidal 117.25 ideation or behavior, recurrent or frequent psychosomatic 117.26 disorders or somatopsychic disorders that may become life 117.27 threatening, recurrent or frequent severe socially unacceptable 117.28 behavior associated with psychiatric disorder, ongoing and 117.29 chronic psychosis or severe, ongoing and chronic developmental 117.30 problems requiring continuous skilled observation, or severe 117.31 disabling symptoms for which office-centered outpatient 117.32 treatment is not adequate, and which overall severely impact the 117.33 individual's ability to function. 117.34 (c) For purposes of this subdivision, "nursing facility" 117.35 means a facility which provides nursing care as defined in 117.36 section 144A.01, subdivision 5, licensed pursuant to sections 118.1 144A.02 to 144A.10, which is appropriate if a person is in 118.2 active restorative treatment; is in need of special treatments 118.3 provided or supervised by a licensed nurse; or has unpredictable 118.4 episodes of active disease processes requiring immediate 118.5 judgment by a licensed nurse. For purposes of this subdivision, 118.6 a child requires the level of care provided in a nursing 118.7 facility if the child is determined by the commissioner to meet 118.8 the requirements of the preadmission screening assessment 118.9 document under section 256B.0911 and the home care independent 118.10 rating document under section 256B.0627, subdivision 5, 118.11 paragraph (f), item (iii), adjusted to address age-appropriate 118.12 standards for children age 18 and under, pursuant to section 118.13 256B.0627, subdivision 5, paragraph (d), clause (2). 118.14 (d) For purposes of this subdivision, "intermediate care 118.15 facility for persons with mental retardation or related 118.16 conditions" or "ICF/MR" means a program licensed to provide 118.17 services to persons with mental retardation under section 118.18 252.28, and chapter 245A, and a physical plant licensed as a 118.19 supervised living facility under chapter 144, which together are 118.20 certified by the Minnesota department of health as meeting the 118.21 standards in Code of Federal Regulations, title 42, part 483, 118.22 for an intermediate care facility which provides services for 118.23 persons with mental retardation or persons with related 118.24 conditions who require 24-hour supervision and active treatment 118.25 for medical, behavioral, or habilitation needs. For purposes of 118.26 this subdivision, a child requires a level of care provided in 118.27 an ICF/MR if the commissioner finds that the child has mental 118.28 retardation or a related condition in accordance with section 118.29 256B.092, is in need of a 24-hour plan of care and active 118.30 treatment similar to persons with mental retardation, and there 118.31 is a reasonable indication that the child will need ICF/MR 118.32 services. 118.33 (e) For purposes of this subdivision, a person requires the 118.34 level of care provided in a nursing facility if the person 118.35 requires 24-hour monitoring or supervision and a plan of mental 118.36 health treatment because of specific symptoms or functional 119.1 impairments associated with a serious mental illness or disorder 119.2 diagnosis, which meet severity criteria for mental health 119.3 established by the commissionerbased on standards developed for119.4the Wisconsin Katie Beckett programand published inJuly 1994119.5 March 1997 as the Minnesota Mental Health Level of Care for 119.6 Children and Adolescents with Severe Emotional Disorders. 119.7 (f) The determination of the level of care needed by the 119.8 child shall be made by the commissioner based on information 119.9 supplied to the commissioner by the parent or guardian, the 119.10 child's physician or physicians, and other professionals as 119.11 requested by the commissioner. The commissioner shall establish 119.12 a screening team to conduct the level of care determinations 119.13 according to this subdivision. 119.14 (g) If a child meets the conditions in paragraph (b), (c), 119.15 (d), or (e), the commissioner must assess the case to determine 119.16 whether: 119.17 (1) the child qualifies as a disabled individual under 119.18 United States Code, title 42, section 1382c(a), and would be 119.19 eligible for medical assistance if residing in a medical 119.20 institution; and 119.21 (2) the cost of medical assistance services for the child, 119.22 if eligible under this subdivision, would not be more than the 119.23 cost to medical assistance if the child resides in a medical 119.24 institution to be determined as follows: 119.25 (i) for a child who requires a level of care provided in an 119.26 ICF/MR, the cost of care for the child in an institution shall 119.27 be determined using the average payment rate established for the 119.28 regional treatment centers that are certified as ICFs/MR; 119.29 (ii) for a child who requires a level of care provided in 119.30 an inpatient hospital setting according to paragraph (b), 119.31 cost-effectiveness shall be determined according to Minnesota 119.32 Rules, part 9505.3520, items F and G; and 119.33 (iii) for a child who requires a level of care provided in 119.34 a nursing facility according to paragraph (c) or (e), 119.35 cost-effectiveness shall be determined according to Minnesota 119.36 Rules, part 9505.3040, except that the nursing facility average 120.1 rate shall be adjusted to reflect rates which would be paid for 120.2 children under age 16. The commissioner may authorize an amount 120.3 up to the amount medical assistance would pay for a child 120.4 referred to the commissioner by the preadmission screening team 120.5 under section 256B.0911. 120.6 (h) Children eligible for medical assistance services under 120.7 section 256B.055, subdivision 12, as of June 30, 1995, must be 120.8 screened according to the criteria in this subdivision prior to 120.9 January 1, 1996. Children found to be ineligible may not be 120.10 removed from the program until January 1, 1996. 120.11 Sec. 20. Minnesota Statutes 1996, section 256B.056, 120.12 subdivision 4, is amended to read: 120.13 Subd. 4. [INCOME.] To be eligible for medical assistance, 120.14 a person must not have, or anticipate receiving, semiannual 120.15 income in excess of 120 percent of the income standards by 120.16 family size used in the aid to families with dependent children 120.17 program, except that families and children may have an income up 120.18 to 133-1/3 percent of the AFDC income standard. In computing 120.19 income to determine eligibility of persons who are not residents 120.20 of long-term care facilities, the commissioner shall disregard 120.21 increases in income as required by Public Law Numbers 94-566, 120.22 section 503; 99-272; and 99-509. Veterans aid and attendance 120.23 benefits and Veterans Administration unusual medical expense 120.24 payments are considered income to the recipient. 120.25 Sec. 21. Minnesota Statutes 1996, section 256B.056, 120.26 subdivision 5, is amended to read: 120.27 Subd. 5. [EXCESS INCOME.] A person who has excess income 120.28 is eligible for medical assistance if the person has expenses 120.29 for medical care that are more than the amount of the person's 120.30 excess income, computed by deducting incurred medical expenses 120.31 from the excess income to reduce the excess to the income 120.32 standard specified in subdivision 4. The person shall elect to 120.33 have the medical expenses deducted at the beginning of a 120.34 one-month budget period or at the beginning of a six-month 120.35 budget period.Until June 30, 1993, or the date the Medicaid120.36Management Information System (MMIS) upgrade is implemented,121.1whichever occurs last,The commissioner shall allow persons 121.2 eligible for assistance on a one-month spenddown basis under 121.3 this subdivision to elect to pay the monthly spenddown amount in 121.4 advance of the month of eligibility to thelocalstate agency in 121.5 order to maintain eligibility on a continuous basis. If the 121.6 recipient does not pay the spenddown amount on or before 121.7 the10th20th of the month, the recipient is ineligible for this 121.8 option for the following month.The local agency must deposit121.9spenddown payments into its treasury and issue a monthly payment121.10to the state agency with the necessary individual account121.11information.The local agency shall code theclient eligibility121.12 Medicaid Management Information System (MMIS) to indicate that 121.13 thespenddown obligation has been satisfied for the month121.14paidrecipient has elected this option. The state agency shall 121.15 conveythis informationrecipient eligibility information 121.16 relative to the collection of the spenddown to providers through 121.17eligibility cards which list no remaining spenddown obligation.121.18After the implementation of the MMIS upgrade,the Electronic 121.19 Verification System (EVS). A recipient electing advance payment 121.20 must pay the state agency the monthly spenddown amount on or 121.21 before the10th20th of the month in order to be eligible for 121.22 this option in the following month. 121.23 Sec. 22. Minnesota Statutes 1996, section 256B.057, 121.24 subdivision 1, is amended to read: 121.25 Subdivision 1. [PREGNANT WOMEN AND INFANTS.] An infant 121.26 less than one year of age or a pregnant woman who has written 121.27 verification of a positive pregnancy test from a physician or 121.28 licensed registered nurse, is eligible for medical assistance if 121.29 countable family income is equal to or less than 275 percent of 121.30 the federal poverty guideline for the same family size. For 121.31 purposes of this subdivision, "countable family income" means 121.32 the amount of income considered available using the methodology 121.33 of the AFDC program, except for the earned income disregard and 121.34 employment deductions. An amount equal to the amount of earned 121.35 income exceeding 275 percent of the federal poverty guideline, 121.36 up to a maximum of the amount by which the combined total of 185 122.1 percent of the federal poverty guideline plus the earned income 122.2 disregards and deductions of the AFDC program exceeds 275 122.3 percent of the federal poverty guideline will be deducted for 122.4 pregnant women and infants less than one year of age. 122.5Eligibility for a pregnant woman or infant less than one year of122.6age under this subdivision must be determined without regard to122.7asset standards established in section 256B.056, subdivision 3.122.8 An infant born on or after January 1, 1991, to a woman who 122.9 was eligible for and receiving medical assistance on the date of 122.10 the child's birth shall continue to be eligible for medical 122.11 assistance without redetermination until the child's first 122.12 birthday, as long as the child remains in the woman's household. 122.13 Sec. 23. Minnesota Statutes 1996, section 256B.057, 122.14 subdivision 1b, is amended to read: 122.15 Subd. 1b. [PREGNANT WOMEN AND INFANTS; EXPANSION.] This 122.16 subdivision supersedes subdivision 1 as long as the Minnesota 122.17 health care reform waiver remains in effect. When the waiver 122.18 expires, the commissioner of human services shall publish a 122.19 notice in the State Register and notify the revisor of 122.20 statutes. An infant less than two years of age or a pregnant 122.21 woman who has written verification of a positive pregnancy test 122.22 from a physician or licensed registered nurse, is eligible for 122.23 medical assistance if countable family income is equal to or 122.24 less than 275 percent of the federal poverty guideline for the 122.25 same family size. For purposes of this subdivision, "countable 122.26 family income" means the amount of income considered available 122.27 using the methodology of the AFDC program, except for the earned 122.28 income disregard and employment deductions. An amount equal to 122.29 the amount of earned income exceeding 275 percent of the federal 122.30 poverty guideline, up to a maximum of the amount by which the 122.31 combined total of 185 percent of the federal poverty guideline 122.32 plus the earned income disregards and deductions of the AFDC 122.33 program exceeds 275 percent of the federal poverty guideline 122.34 will be deducted for pregnant women and infants less than two 122.35 years of age.Eligibility for a pregnant woman or infant less122.36than two years of age under this subdivision must be determined123.1without regard to asset standards established in section123.2256B.056, subdivision 3.123.3 An infant born on or after January 1, 1991, to a woman who 123.4 was eligible for and receiving medical assistance on the date of 123.5 the child's birth shall continue to be eligible for medical 123.6 assistance without redetermination until the child's second 123.7 birthday, as long as the child remains in the woman's household. 123.8 Sec. 24. Minnesota Statutes 1996, section 256B.057, 123.9 subdivision 2, is amended to read: 123.10 Subd. 2. [CHILDREN.] A child one through five years of age 123.11 in a family whose countable income is less than 133 percent of 123.12 the federal poverty guidelines for the same family size, is 123.13 eligible for medical assistance. A child six through 18 years 123.14 of age, who was born after September 30, 1983, in a family whose 123.15 countable income is less than 100 percent of the federal poverty 123.16 guidelines for the same family size is eligible for medical 123.17 assistance.Eligibility for children under this subdivision123.18must be determined without regard to asset standards established123.19in section 256B.056, subdivision 3.123.20 Sec. 25. Minnesota Statutes 1996, section 256B.0625, 123.21 subdivision 13b, is amended to read: 123.22 Subd. 13b. [PHARMACY COPAYMENT REQUIREMENTS.] A copayment 123.23 of $1 per prescription shall be required under the medical 123.24 assistance and general assistance medical care programs 123.25 according to paragraphs (a) to (d): 123.26 (a) A copayment shall not be required of children, pregnant 123.27 women through the postpartum period, recipients whose only 123.28 available income is a personal needs allowance in the amount 123.29 established under section 256B.35 or 256B.36, recipients 123.30 residing in a setting which receives funding under sections 123.31 256I.01 to 256I.06, or institutionalized recipients or, under 123.32 medical assistance only, from any other persons required to be 123.33 exempted under federal law; 123.34 (b) A copayment shall not be required for family planning 123.35 services or supplies, psychotropic drugs or emergency services; 123.36 (c) A provider may not deny a prescription to a recipient 124.1 because the recipient is unable to pay the copayment; 124.2 (d) A lower copayment shall be collected, under medical 124.3 assistance only, up to the maximum permitted by federal law, for 124.4 prescriptions on which federal law prohibits a $1 copayment; and 124.5 (e)The amount of the copayment under this subdivision124.6shall be subtracted from the payment under subdivision 13; and124.7(f)This subdivision does not apply to services under the 124.8 MinnesotaCare program. 124.9 Sec. 26. Minnesota Statutes 1996, section 256B.0625, is 124.10 amended by adding a subdivision to read: 124.11 Subd. 31a. [AUGMENTATIVE AND ALTERNATIVE COMMUNICATION 124.12 SYSTEMS.] (a) Medical assistance covers augmentative and 124.13 alternative communication systems consisting of electronic or 124.14 nonelectronic devices and the related components necessary to 124.15 enable a person with severe expressive communication limitations 124.16 to produce or transmit messages or symbols in a manner that 124.17 compensates for that disability. 124.18 (b) By January 1, 1998, the commissioner, in cooperation 124.19 with the commissioner of administration, shall establish an 124.20 augmentative and alternative communication system purchasing 124.21 program within a state agency or by contract with a qualified 124.22 private entity. The purpose of this service is to facilitate 124.23 ready availability of the augmentative and alternative 124.24 communication systems needed to meet the needs of persons with 124.25 severe expressive communication limitations in an efficient and 124.26 cost-effective manner. This program shall: 124.27 (1) coordinate purchase and rental of augmentative and 124.28 alternative communication systems; 124.29 (2) negotiate agreements with manufacturers and vendors for 124.30 purchase of components of these systems, for warranty coverage, 124.31 and for repair service; 124.32 (3) when efficient and cost-effective, maintain and 124.33 refurbish if needed, an inventory of components of augmentative 124.34 and alternative communication systems for short- or long-term 124.35 loan to recipients; 124.36 (4) facilitate training sessions for service providers, 125.1 consumers, and families on augmentative and alternative 125.2 communication systems; and 125.3 (5) develop a recycling program for used augmentative and 125.4 alternative communications systems to be reissued and used for 125.5 trials and short-term use, when appropriate. 125.6 The availability of components of augmentative and 125.7 alternative communication systems through this program is 125.8 subject to prior authorization requirements established under 125.9 subdivision 25. 125.10 Reimbursement rates established by this purchasing program 125.11 are not subject to Minnesota Rules, part 9505.0445, item S or T. 125.12 (c) Augmentative and alternative communication systems and 125.13 related components that are prior authorized by the department 125.14 through pass through vendors during the period from January 1, 125.15 1997, until the augmentative and alternative communication 125.16 system purchasing program or other alternatives are operational 125.17 shall be paid under the medical assistance program at the actual 125.18 price charged the pass through vendor plus 20 percent to cover 125.19 administrative costs of prior authorization and billing and 125.20 shipping charges. 125.21 Sec. 27. Minnesota Statutes 1996, section 256B.0626, is 125.22 amended to read: 125.23 256B.0626 [ESTIMATION OF 50TH PERCENTILE OF PREVAILING 125.24 CHARGES.] 125.25 (a) The 50th percentile of the prevailing charge for the 125.26 base year identified in statute must be estimated by the 125.27 commissioner in the following situations: 125.28 (1) there were less thantenfive billings in the calendar 125.29 year specified in legislation governing maximum payment rates; 125.30 (2) the service was not available in the calendar year 125.31 specified in legislation governing maximum payment rates; 125.32 (3) the payment amount is the result of a provider appeal; 125.33 (4) the procedure code description has changed since the 125.34 calendar year specified in legislation governing maximum payment 125.35 rates, and, therefore, the prevailing charge information 125.36 reflects the same code but a different procedure description; or 126.1 (5) the 50th percentile reflects a payment which is grossly 126.2 inequitable when compared with payment rates for procedures or 126.3 services which are substantially similar. 126.4 (b) When one of the situations identified in paragraph (a) 126.5 occurs, the commissioner shall use the following methodology to 126.6 reconstruct a rate comparable to the 50th percentile of the 126.7 prevailing rate: 126.8 (1) refer to information which exists for the firstnine126.9 four billings in the calendar year specified in legislation 126.10 governing maximum payment rates; or 126.11 (2) refer to surrounding or comparable procedure codes; or 126.12 (3) refer to the 50th percentile of years subsequent to the 126.13 calendar year specified in legislation governing maximum payment 126.14 rates, and reduce that amount by applying an appropriate 126.15 Consumer Price Index formula; or 126.16 (4) refer to relative value indexes; or 126.17 (5) refer to reimbursement information from other third 126.18 parties, such as Medicare. 126.19 Sec. 28. Minnesota Statutes 1996, section 256B.0627, 126.20 subdivision 5, is amended to read: 126.21 Subd. 5. [LIMITATION ON PAYMENTS.] Medical assistance 126.22 payments for home care services shall be limited according to 126.23 this subdivision. 126.24 (a) [LIMITS ON SERVICES WITHOUT PRIOR AUTHORIZATION.] A 126.25 recipient may receive the following home care services during a 126.26 calendar year: 126.27 (1) any initial assessment;and126.28 (2) up to two reassessments per year done to determine a 126.29 recipient's need for personal care services; and 126.30 (3) up to five skilled nurse visits. 126.31 (b) [PRIOR AUTHORIZATION; EXCEPTIONS.] All home care 126.32 services above the limits in paragraph (a) must receive the 126.33 commissioner's prior authorization, except when: 126.34 (1) the home care services were required to treat an 126.35 emergency medical condition that if not immediately treated 126.36 could cause a recipient serious physical or mental disability, 127.1 continuation of severe pain, or death. The provider must 127.2 request retroactive authorization no later than five working 127.3 days after giving the initial service. The provider must be 127.4 able to substantiate the emergency by documentation such as 127.5 reports, notes, and admission or discharge histories; 127.6 (2) the home care services were provided on or after the 127.7 date on which the recipient's eligibility began, but before the 127.8 date on which the recipient was notified that the case was 127.9 opened. Authorization will be considered if the request is 127.10 submitted by the provider within 20 working days of the date the 127.11 recipient was notified that the case was opened; 127.12 (3) a third-party payor for home care services has denied 127.13 or adjusted a payment. Authorization requests must be submitted 127.14 by the provider within 20 working days of the notice of denial 127.15 or adjustment. A copy of the notice must be included with the 127.16 request; 127.17 (4) the commissioner has determined that a county or state 127.18 human services agency has made an error; or 127.19 (5) the professional nurse determines an immediate need for 127.20 up to 40 skilled nursing or home health aide visits per calendar 127.21 year and submits a request for authorization within 20 working 127.22 days of the initial service date, and medical assistance is 127.23 determined to be the appropriate payer. 127.24 (c) [RETROACTIVE AUTHORIZATION.] A request for retroactive 127.25 authorization will be evaluated according to the same criteria 127.26 applied to prior authorization requests. 127.27 (d) [ASSESSMENT AND SERVICE PLAN.] Assessments under 127.28 section 256B.0627, subdivision 1, paragraph (a), shall be 127.29 conducted initially, and at least annually thereafter, in person 127.30 with the recipient and result in a completed service plan using 127.31 forms specified by the commissioner. Within 30 days of 127.32 recipient or responsible party request for home care services, 127.33 the assessment, the service plan, and other information 127.34 necessary to determine medical necessity such as diagnostic or 127.35 testing information, social or medical histories, and hospital 127.36 or facility discharge summaries shall be submitted to the 128.1 commissioner. For personal care services: 128.2 (1) The amount and type of service authorized based upon 128.3 the assessment and service plan will follow the recipient if the 128.4 recipient chooses to change providers. 128.5 (2) If the recipient's medical need changes, the 128.6 recipient's provider may assess the need for a change in service 128.7 authorization and request the change from the county public 128.8 health nurse. Within 30 days of the request, the public health 128.9 nurse will determine whether to request the change in services 128.10 based upon the provider assessment, or conduct a home visit to 128.11 assess the need and determine whether the change is appropriate. 128.12 (3) To continue to receive personal care services when the 128.13 recipient displays no significant change, the county public 128.14 health nurse has the option to review with the commissioner, or 128.15 the commissioner's designee, the service plan on record and 128.16 receive authorization for up to an additional 12 months at a 128.17 time for up to three years. 128.18 (e) [PRIOR AUTHORIZATION.] The commissioner, or the 128.19 commissioner's designee, shall review the assessment, the 128.20 service plan, and any additional information that is submitted. 128.21 The commissioner shall, within 30 days after receiving a 128.22 complete request, assessment, and service plan, authorize home 128.23 care services as follows: 128.24 (1) [HOME HEALTH SERVICES.] All home health services 128.25 provided by a licensed nurse or a home health aide must be prior 128.26 authorized by the commissioner or the commissioner's designee. 128.27 Prior authorization must be based on medical necessity and 128.28 cost-effectiveness when compared with other care options. When 128.29 home health services are used in combination with personal care 128.30 and private duty nursing, the cost of all home care services 128.31 shall be considered for cost-effectiveness. The commissioner 128.32 shall limit nurse and home health aide visits to no more than 128.33 one visit each per day. 128.34 (2) [PERSONAL CARE SERVICES.] (i) All personal care 128.35 services and registered nurse supervision must be prior 128.36 authorized by the commissioner or the commissioner's designee 129.1 except for the assessments established in paragraph (a). The 129.2 amount of personal care services authorized must be based on the 129.3 recipient's home care rating. A child may not be found to be 129.4 dependent in an activity of daily living if because of the 129.5 child's age an adult would either perform the activity for the 129.6 child or assist the child with the activity and the amount of 129.7 assistance needed is similar to the assistance appropriate for a 129.8 typical child of the same age. Based on medical necessity, the 129.9 commissioner may authorize: 129.10 (A) up to two times the average number of direct care hours 129.11 provided in nursing facilities for the recipient's comparable 129.12 case mix level; or 129.13 (B) up to three times the average number of direct care 129.14 hours provided in nursing facilities for recipients who have 129.15 complex medical needs or are dependent in at least seven 129.16 activities of daily living and need physical assistance with 129.17 eating or have a neurological diagnosis; or 129.18 (C) up to 60 percent of the average reimbursement rate, as 129.19 of July 1, 1991, for care provided in a regional treatment 129.20 center for recipients who have Level I behavior, plus any 129.21 inflation adjustment as provided by the legislature for personal 129.22 care service; or 129.23 (D) up to the amount the commissioner would pay, as of July 129.24 1, 1991, plus any inflation adjustment provided for home care 129.25 services, for care provided in a regional treatment center for 129.26 recipients referred to the commissioner by a regional treatment 129.27 center preadmission evaluation team. For purposes of this 129.28 clause, home care services means all services provided in the 129.29 home or community that would be included in the payment to a 129.30 regional treatment center; or 129.31 (E) up to the amount medical assistance would reimburse for 129.32 facility care for recipients referred to the commissioner by a 129.33 preadmission screening team established under section 256B.0911 129.34 or 256B.092; and 129.35 (F) a reasonable amount of time for the provision of 129.36 nursing supervision of personal care services. 130.1 (ii) The number of direct care hours shall be determined 130.2 according to the annual cost report submitted to the department 130.3 by nursing facilities. The average number of direct care hours, 130.4 as established by May 1, 1992, shall be calculated and 130.5 incorporated into the home care limits on July 1, 1992. These 130.6 limits shall be calculated to the nearest quarter hour. 130.7 (iii) The home care rating shall be determined by the 130.8 commissioner or the commissioner's designee based on information 130.9 submitted to the commissioner by the county public health nurse 130.10 on forms specified by the commissioner. The home care rating 130.11 shall be a combination of current assessment tools developed 130.12 under sections 256B.0911 and 256B.501 with an addition for 130.13 seizure activity that will assess the frequency and severity of 130.14 seizure activity and with adjustments, additions, and 130.15 clarifications that are necessary to reflect the needs and 130.16 conditions of recipients who need home care including children 130.17 and adults under 65 years of age. The commissioner shall 130.18 establish these forms and protocols under this section and shall 130.19 use an advisory group, including representatives of recipients, 130.20 providers, and counties, for consultation in establishing and 130.21 revising the forms and protocols. 130.22 (iv) A recipient shall qualify as having complex medical 130.23 needs if the care required is difficult to perform and because 130.24 of recipient's medical condition requires more time than 130.25 community-based standards allow or requires more skill than 130.26 would ordinarily be required and the recipient needs or has one 130.27 or more of the following: 130.28 (A) daily tube feedings; 130.29 (B) daily parenteral therapy; 130.30 (C) wound or decubiti care; 130.31 (D) postural drainage, percussion, nebulizer treatments, 130.32 suctioning, tracheotomy care, oxygen, mechanical ventilation; 130.33 (E) catheterization; 130.34 (F) ostomy care; 130.35 (G) quadriplegia; or 130.36 (H) other comparable medical conditions or treatments the 131.1 commissioner determines would otherwise require institutional 131.2 care. 131.3 (v) A recipient shall qualify as having Level I behavior if 131.4 there is reasonable supporting evidence that the recipient 131.5 exhibits, or that without supervision, observation, or 131.6 redirection would exhibit, one or more of the following 131.7 behaviors that cause, or have the potential to cause: 131.8 (A) injury to the recipient's own body; 131.9 (B) physical injury to other people; or 131.10 (C) destruction of property. 131.11 (vi) Time authorized for personal care relating to Level I 131.12 behavior in subclause (v), items (A) to (C), shall be based on 131.13 the predictability, frequency, and amount of intervention 131.14 required. 131.15 (vii) A recipient shall qualify as having Level II behavior 131.16 if the recipient exhibits on a daily basis one or more of the 131.17 following behaviors that interfere with the completion of 131.18 personal care services under subdivision 4, paragraph (a): 131.19 (A) unusual or repetitive habits; 131.20 (B) withdrawn behavior; or 131.21 (C) offensive behavior. 131.22 (viii) A recipient with a home care rating of Level II 131.23 behavior in subclause (vii), items (A) to (C), shall be rated as 131.24 comparable to a recipient with complex medical needs under 131.25 subclause (iv). If a recipient has both complex medical needs 131.26 and Level II behavior, the home care rating shall be the next 131.27 complex category up to the maximum rating under subclause (i), 131.28 item (B). 131.29 (3) [PRIVATE DUTY NURSING SERVICES.] All private duty 131.30 nursing services shall be prior authorized by the commissioner 131.31 or the commissioner's designee. Prior authorization for private 131.32 duty nursing services shall be based on medical necessity and 131.33 cost-effectiveness when compared with alternative care options. 131.34 The commissioner may authorize medically necessary private duty 131.35 nursing services in quarter-hour units when: 131.36 (i) the recipient requires more individual and continuous 132.1 care than can be provided during a nurse visit; or 132.2 (ii) the cares are outside of the scope of services that 132.3 can be provided by a home health aide or personal care assistant. 132.4 The commissioner may authorize: 132.5 (A) up to two times the average amount of direct care hours 132.6 provided in nursing facilities statewide for case mix 132.7 classification "K" as established by the annual cost report 132.8 submitted to the department by nursing facilities in May 1992; 132.9 (B) private duty nursing in combination with other home 132.10 care services up to the total cost allowed under clause (2); 132.11 (C) up to 16 hours per day if the recipient requires more 132.12 nursing than the maximum number of direct care hours as 132.13 established in item (A) and the recipient meets the hospital 132.14 admission criteria established under Minnesota Rules, parts 132.15 9505.0500 to 9505.0540. 132.16 The commissioner may authorize up to 16 hours per day of 132.17 medically necessary private duty nursing services or up to 24 132.18 hours per day of medically necessary private duty nursing 132.19 services until such time as the commissioner is able to make a 132.20 determination of eligibility for recipients who are 132.21 cooperatively applying for home care services under the 132.22 community alternative care program developed under section 132.23 256B.49, or until it is determined by the appropriate regulatory 132.24 agency that a health benefit plan is or is not required to pay 132.25 for appropriate medically necessary health care services. 132.26 Recipients or their representatives must cooperatively assist 132.27 the commissioner in obtaining this determination. Recipients 132.28 who are eligible for the community alternative care program may 132.29 not receive more hours of nursing under this section than would 132.30 otherwise be authorized under section 256B.49. 132.31 (4) [VENTILATOR-DEPENDENT RECIPIENTS.] If the recipient is 132.32 ventilator-dependent, the monthly medical assistance 132.33 authorization for home care services shall not exceed what the 132.34 commissioner would pay for care at the highest cost hospital 132.35 designated as a long-term hospital under the Medicare program. 132.36 For purposes of this clause, home care services means all 133.1 services provided in the home that would be included in the 133.2 payment for care at the long-term hospital. 133.3 "Ventilator-dependent" means an individual who receives 133.4 mechanical ventilation for life support at least six hours per 133.5 day and is expected to be or has been dependent for at least 30 133.6 consecutive days. 133.7 (f) [PRIOR AUTHORIZATION; TIME LIMITS.] The commissioner 133.8 or the commissioner's designee shall determine the time period 133.9 for which a prior authorization shall be effective. If the 133.10 recipient continues to require home care services beyond the 133.11 duration of the prior authorization, the home care provider must 133.12 request a new prior authorization. Under no circumstances, 133.13 other than the exceptions in paragraph (b), shall a prior 133.14 authorization be valid prior to the date the commissioner 133.15 receives the request or for more than 12 months. A recipient 133.16 who appeals a reduction in previously authorized home care 133.17 services may continue previously authorized services, other than 133.18 temporary services under paragraph (h), pending an appeal under 133.19 section 256.045. The commissioner must provide a detailed 133.20 explanation of why the authorized services are reduced in amount 133.21 from those requested by the home care provider. 133.22 (g) [APPROVAL OF HOME CARE SERVICES.] The commissioner or 133.23 the commissioner's designee shall determine the medical 133.24 necessity of home care services, the level of caregiver 133.25 according to subdivision 2, and the institutional comparison 133.26 according to this subdivision, the cost-effectiveness of 133.27 services, and the amount, scope, and duration of home care 133.28 services reimbursable by medical assistance, based on the 133.29 assessment, primary payer coverage determination information as 133.30 required, the service plan, the recipient's age, the cost of 133.31 services, the recipient's medical condition, and diagnosis or 133.32 disability. The commissioner may publish additional criteria 133.33 for determining medical necessity according to section 256B.04. 133.34 (h) [PRIOR AUTHORIZATION REQUESTS; TEMPORARY SERVICES.] 133.35 The agency nurse, the independently enrolled private duty nurse, 133.36 or county public health nurse may request a temporary 134.1 authorization for home care services by telephone. The 134.2 commissioner may approve a temporary level of home care services 134.3 based on the assessment, and service or care plan information, 134.4 and primary payer coverage determination information as required. 134.5 Authorization for a temporary level of home care services 134.6 including nurse supervision is limited to the time specified by 134.7 the commissioner, but shall not exceed 45 days, unless extended 134.8 because the county public health nurse has not completed the 134.9 required assessment and service plan, or the commissioner's 134.10 determination has not been made. The level of services 134.11 authorized under this provision shall have no bearing on a 134.12 future prior authorization. 134.13 (i) [PRIOR AUTHORIZATION REQUIRED IN FOSTER CARE SETTING.] 134.14 Home care services provided in an adult or child foster care 134.15 setting must receive prior authorization by the department 134.16 according to the limits established in paragraph (a). 134.17 The commissioner may not authorize: 134.18 (1) home care services that are the responsibility of the 134.19 foster care provider under the terms of the foster care 134.20 placement agreement and administrative rules. Requests for home 134.21 care services for recipients residing in a foster care setting 134.22 must include the foster care placement agreement and 134.23 determination of difficulty of care; 134.24 (2) personal care services when the foster care license 134.25 holder is also the personal care provider or personal care 134.26 assistant unless the recipient can direct the recipient's own 134.27 care, or case management is provided as required in section 134.28 256B.0625, subdivision 19a; 134.29 (3) personal care services when the responsible party is an 134.30 employee of, or under contract with, or has any direct or 134.31 indirect financial relationship with the personal care provider 134.32 or personal care assistant, unless case management is provided 134.33 as required in section 256B.0625, subdivision 19a; 134.34 (4) home care services when the number of foster care 134.35 residents is greater than four unless the county responsible for 134.36 the recipient's foster placement made the placement prior to 135.1 April 1, 1992, requests that home care services be provided, and 135.2 case management is provided as required in section 256B.0625, 135.3 subdivision 19a; or 135.4 (5) home care services when combined with foster care 135.5 payments, other than room and board payments that exceed the 135.6 total amount that public funds would pay for the recipient's 135.7 care in a medical institution. 135.8 Sec. 29. [256B.0635] [COPAYMENT; NONEMERGENCY SERVICES 135.9 PROVIDED IN EMERGENCY ROOMS.] 135.10 A copayment shall be required for nonemergency services 135.11 provided in an emergency room under the medical assistance, 135.12 general assistance medical care, and MinnesotaCare programs 135.13 according to paragraphs (a) to (f): 135.14 (a) The amount of the copayment shall be $5. 135.15 (b) A copayment shall not be required of children, pregnant 135.16 women through the postpartum period, institutionalized 135.17 recipients or, under medical assistance only, from any other 135.18 persons required to be exempted under federal law. 135.19 (c) A copayment shall not be required for family planning 135.20 services or supplies, or emergency services. 135.21 (d) A provider may not deny services to a recipient because 135.22 the recipient is unable to pay the copayment. 135.23 (e) The commissioner shall reduce the reimbursement for 135.24 nonemergency services provided in an emergency room from the 135.25 amount of the copayment required to be collected. 135.26 (f) the commissioner shall seek a federal waiver to allow 135.27 the $5 copayment. 135.28 Sec. 30. Minnesota Statutes 1996, section 256B.064, 135.29 subdivision 1a, is amended to read: 135.30 Subd. 1a. [GROUNDS FOR MONETARY RECOVERY AND SANCTIONS 135.31 AGAINST VENDORS.] The commissioner may seek monetary recovery 135.32 and impose sanctions against vendors of medical care for any of 135.33 the following: fraud, theft, or abuse in connection with the 135.34 provision of medical care to recipients of public assistance; a 135.35 pattern of presentment of false or duplicate claims or claims 135.36 for services not medically necessary; a pattern of making false 136.1 statements of material facts for the purpose of obtaining 136.2 greater compensation than that to which the vendor is legally 136.3 entitled; suspension or termination as a Medicare vendor;and136.4 refusal to grant the state agency access during regular business 136.5 hours to examine all records necessary to disclose the extent of 136.6 services provided to program recipients; and any reason for 136.7 which a vendor could be excluded from participation in the 136.8 Medicare program under section 1128, 1128A, or 1866(b)(2) of the 136.9 Social Security Act. The determination of services not 136.10 medically necessary may be made by the commissioner in 136.11 consultation with a peer advisory task force appointed by the 136.12 commissioner on the recommendation of appropriate professional 136.13 organizations. The task force expires as provided in section 136.14 15.059, subdivision 5. 136.15 Sec. 31. Minnesota Statutes 1996, section 256B.064, 136.16 subdivision 1c, is amended to read: 136.17 Subd. 1c. [METHODS OF MONETARY RECOVERY.] The commissioner 136.18 may obtain monetary recoveryfor the conduct described in136.19subdivision 1a by the followingfrom a vendor who has been 136.20 improperly paid either as a result of conduct described in 136.21 subdivision 1a or as a result of a vendor or department error, 136.22 regardless of whether the error was intentional. The 136.23 commissioner may obtain monetary recovery using methods, 136.24 including but not limited to the following: assessing and 136.25 recovering moneyerroneouslyimproperly paid and debiting from 136.26 future payments any moneyerroneouslyimproperly paid, except136.27that. Patterns need not be proven as a precondition to monetary 136.28 recoveryforof erroneous or false claims, duplicate claims, 136.29 claims for services not medically necessary, or claims based on 136.30 false statements. The commissionermayshall charge interest on 136.31 money to be recovered if the recovery is to be made by 136.32 installment payments or debits. The interest charged shall be 136.33 the rate established by the commissioner of revenue under 136.34 section 270.75. 136.35 Sec. 32. Minnesota Statutes 1996, section 256B.064, 136.36 subdivision 2, is amended to read: 137.1 Subd. 2. [IMPOSITION OF MONETARY RECOVERY AND SANCTIONS.] 137.2 (a) The commissioner shall determine monetary amounts to be 137.3 recovered and the sanction to be imposed upon a vendor of 137.4 medical care for conduct described by subdivision 1a. Exceptin137.5the case of a conviction for conduct described in subdivision 1a137.6 as provided in paragraph (b), neither a monetary recovery nor a 137.7 sanction will besoughtimposed by the commissioner without 137.8 prior notice and an opportunity for a hearing,pursuant137.9 according to chapter 14, on the commissioner's proposed action, 137.10 provided that the commissioner may suspend or reduce payment to 137.11 a vendor of medical care, except a nursing home or convalescent 137.12 care facility, after notice and prior to the hearing if in the 137.13 commissioner's opinion that action is necessary to protect the 137.14 public welfare and the interests of the program. 137.15 (b) Except for a nursing home or convalescent care 137.16 facility, the commissioner may withhold or reduce payments to a 137.17 vendor of medical care without providing advance notice of such 137.18 withholding or reduction if either of the following occurs: 137.19 (1) the vendor is convicted of a crime involving the 137.20 conduct described in subdivision 1a; or 137.21 (2) the commissioner receives reliable evidence of fraud or 137.22 willful misrepresentation by the vendor. 137.23 (c) The commissioner must send notice of the withholding or 137.24 reduction of payments under paragraph (b) within five days of 137.25 taking such action. The notice must: 137.26 (1) state that payments are being withheld according to 137.27 paragraph (b); 137.28 (2) except in the case of a conviction for conduct 137.29 described in subdivision 1a, state that the withholding is for a 137.30 temporary period and cite the circumstances under which 137.31 withholding will be terminated; 137.32 (3) identify the types of claims to which the withholding 137.33 applies; and 137.34 (4) inform the vendor of the right to submit written 137.35 evidence for consideration by the commissioner. 137.36 The withholding or reduction of payments will not continue 138.1 after the commissioner determines there is insufficient evidence 138.2 of fraud or willful misrepresentation by the vendor, or after 138.3 legal proceedings relating to the alleged fraud or willful 138.4 misrepresentation are completed, unless the commissioner has 138.5 sent notice of intention to impose monetary recovery or 138.6 sanctions under paragraph (a). 138.7 (d) Upon receipt of a notice under paragraph (a) that a 138.8 monetary recovery or sanction is to be imposed, a vendor may 138.9 request a contested case, as defined in section 14.02, 138.10 subdivision 3, by filing with the commissioner a written request 138.11 of appeal. The appeal request must be received by the 138.12 commissioner no later than 30 days after the date the 138.13 notification of monetary recovery or sanction was mailed to the 138.14 vendor. The appeal request must specify: 138.15 (1) each disputed item, the reason for the dispute, and an 138.16 estimate of the dollar amount involved for each disputed item; 138.17 (2) the computation that the vendor believes is correct; 138.18 (3) the authority in statute or rule upon which the vendor 138.19 relies for each disputed item; 138.20 (4) the name and address of the person or entity with whom 138.21 contacts may be made regarding the appeal; and 138.22 (5) other information required by the commissioner. 138.23 Sec. 33. Minnesota Statutes 1996, section 256B.0644, is 138.24 amended to read: 138.25 256B.0644 [PARTICIPATION REQUIRED FOR REIMBURSEMENT UNDER 138.26 OTHER STATE HEALTH CARE PROGRAMS.] 138.27 A vendor of medical care, as defined in section 256B.02, 138.28 subdivision 7, except a vendor of dental services, and a health 138.29 maintenance organization, as defined in chapter 62D, must 138.30 participate as a provider or contractor in the medical 138.31 assistance program, general assistance medical care program, and 138.32 MinnesotaCare as a condition of participating as a provider in 138.33 health insurance plans and programs or contractor for state 138.34 employees established under section 43A.18, the public employees 138.35 insurance program under section 43A.316, for health insurance 138.36 plans offered to local statutory or home rule charter city, 139.1 county, and school district employees, the workers' compensation 139.2 system under section 176.135, and insurance plans provided 139.3 through the Minnesota comprehensive health association under 139.4 sections 62E.01 to 62E.16. The limitations on insurance plans 139.5 offered to local government employees shall not be applicable in 139.6 geographic areas where provider participation is limited by 139.7 managed care contracts with the department of human services. 139.8 For providers other than health maintenance organizations, 139.9 participation in the medical assistance program means that (1) 139.10 the provider accepts new medical assistance, general assistance 139.11 medical care, and MinnesotaCare patients or (2) at least 20 139.12 percent of the provider's patients are covered by medical 139.13 assistance, general assistance medical care, and MinnesotaCare 139.14 as their primary source of coverage. The commissioner shall 139.15 establish participation requirements for health maintenance 139.16 organizations. The commissioner shall provide lists of 139.17 participating medical assistance providers on a quarterly basis 139.18 to the commissioner of employee relations, the commissioner of 139.19 labor and industry, and the commissioner of commerce. Each of 139.20 the commissioners shall develop and implement procedures to 139.21 exclude as participating providers in the program or programs 139.22 under their jurisdiction those providers who do not participate 139.23 in the medical assistance program. The commissioner of employee 139.24 relations shall implement this section through contracts with 139.25 participating healthand dentalcarriers. 139.26 Sec. 34. Minnesota Statutes 1996, section 256B.0911, 139.27 subdivision 7, is amended to read: 139.28 Subd. 7. [REIMBURSEMENT FOR CERTIFIED NURSING FACILITIES.] 139.29 (a) Medical assistance reimbursement for nursing facilities 139.30 shall be authorized for a medical assistance recipient only if a 139.31 preadmission screening has been conducted prior to admission or 139.32 the local county agency has authorized an exemption. Medical 139.33 assistance reimbursement for nursing facilities shall not be 139.34 provided for any recipient who the local screener has determined 139.35 does not meet the level of care criteria for nursing facility 139.36 placement or, if indicated, has not had a level II PASARR 140.1 evaluation completed unless an admission for a recipient with 140.2 mental illness is approved by the local mental health authority 140.3 or an admission for a recipient with mental retardation or 140.4 related condition is approved by the state mental retardation 140.5 authority. The county preadmission screening team may deny 140.6 certified nursing facility admission using the level of care 140.7 criteria established under section 144.0721 and deny medical 140.8 assistance reimbursement for certified nursing facility care. 140.9 Persons receiving care in a certified nursing facility or 140.10 certified boarding care home who are reassessed by the 140.11 commissioner of health according to section 144.0722 and 140.12 determined to no longer meet the level of care criteria for a 140.13 certified nursing facility or certified boarding care home may 140.14 no longer remain a resident in the certified nursing facility or 140.15 certified boarding care home and must be relocated to the 140.16 community as provided under paragraphs (b), (c), and (d), if the 140.17 persons were admitted on or after July 1,19961997. 140.18 (b) A resident who, upon reassessment, is determined to no 140.19 longer meet the level of care criteria for a certified nursing 140.20 facility or certified boarding care home is deemed to not need 140.21 the services provided by a nursing facility. Such a resident 140.22 may not receive medical assistance payment for nursing facility 140.23 or boarding care services and must be discharged according to 140.24 this subdivision. 140.25 A resident who is determined to no longer need nursing 140.26 facility services may ask for a reconsideration of the 140.27 resident's case mix and level of care assessment under section 140.28 144.0722. If reconsideration is not requested, the resident may 140.29 not appeal the assessment. If the resident is determined to not 140.30 meet the level of care criteria for treatment in a nursing 140.31 facility, the commissioner of human services shall notify the 140.32 nursing facility that the resident's health has improved 140.33 sufficiently so the resident no longer needs the services 140.34 provided by a nursing facility and that the resident must be 140.35 discharged within 60 days after the facility receives notice, 140.36 regardless of the source of payment for the resident's care. 141.1 The ground for discharge shall be that the resident's health has 141.2 improved sufficiently so that the resident no longer needs the 141.3 services of the nursing facility. The nursing facility shall 141.4 discharge the resident according to federal regulations that 141.5 govern discharge of residents of certified nursing facilities. 141.6 If the resident's care is paid for by medical assistance, the 141.7 commissioner of human services must also notify the resident 141.8 that medical assistance payment for the resident's nursing 141.9 facility services will terminate 60 days after the resident 141.10 receives the notice. 141.11 (c) The resident may request, within 14 days of receiving 141.12 notice of discharge or of termination of medical assistance 141.13 payments, an assessment from the local screening team defined 141.14 under section 256B.0911 to determine whether extraordinary 141.15 circumstances as defined in section 144.0721, subdivision 3, 141.16 exist. The screening team must issue a written decision within 141.17 ten days of the resident's request. If the screening team finds 141.18 that extraordinary circumstances exist, the resident need not be 141.19 discharged and medical assistance payments shall not be 141.20 discontinued on the resident's behalf. 141.21 (d) A resident notified of discharge or of discontinuance 141.22 of medical assistance payment under this section may appeal 141.23 under section 256.045 within 30 days of receiving notice of 141.24 discharge or of termination of medical assistance payments, or 141.25 within 30 days of the screening team's decision that 141.26 extraordinary circumstances do not exist, whichever is later. 141.27 Medical assistance payments shall continue and the resident 141.28 shall not be discharged until the commissioner of human services 141.29 issues a decision on the appeal. The nursing facility may 141.30 participate in the hearing for the limited purpose of proving 141.31 that the resident meets the level of care criteria. If, after a 141.32 hearing, the commissioner of human services determines either 141.33 that the resident meets the level of care criteria for nursing 141.34 facility services or that extraordinary circumstances as defined 141.35 in section 144.0721, subdivision 3, exist, medical assistance 141.36 shall not be terminated and the resident shall not be 142.1 discharged. A resident's appeal of discharge under this section 142.2 may be appealed only under section 256.045 and not section 142.3 144.135. 142.4 (e) Persons receiving services under section 256B.0913, 142.5 subdivisions 1 to 14, or 256B.0915 who are reassessed and found 142.6 to not meet the level of care criteria for admission to a 142.7 certified nursing facility or certified boarding care home may 142.8 no longer receive these services if persons were admitted to the 142.9 program on or after July 1,19961997. Reassessed individuals 142.10 ineligible for services under section 256B.0913, subdivisions 1 142.11 to 14, or 256B.0915, are entitled to an appeal under section 142.12 256.045, subdivision 3. The commissioner shall make a request 142.13 to the health care financing administration for a waiver 142.14 allowing screening team approval of Medicaid payments for 142.15 certified nursing facility care. An individual has a choice and 142.16 makes the final decision between nursing facility placement and 142.17 community placement after the screening team's recommendation, 142.18 except as provided in paragraphs (b) and (c). 142.19(b)(f) The local county mental health authority or the 142.20 state mental retardation authority under Public Law Numbers 142.21 100-203 and 101-508 may prohibit admission to a nursing 142.22 facility, if the individual does not meet the nursing facility 142.23 level of care criteria or needs specialized services as defined 142.24 in Public Law Numbers 100-203 and 101-508. For purposes of this 142.25 section, "specialized services" for a person with mental 142.26 retardation or a related condition means "active treatment" as 142.27 that term is defined in Code of Federal Regulations, title 42, 142.28 section 483.440(a)(1). 142.29(c)(g) Upon the receipt by the commissioner of approval by 142.30 the Secretary of Health and Human Services of the waiver 142.31 requested under paragraph (a), the local screener shall deny 142.32 medical assistance reimbursement for nursing facility care for 142.33 an individual whose long-term care needs can be met in a 142.34 community-based setting and whose cost of community-based home 142.35 care services is less than 75 percent of the average payment for 142.36 nursing facility care for that individual's case mix 143.1 classification, and who is either: 143.2 (i) a current medical assistance recipient being screened 143.3 for admission to a nursing facility; or 143.4 (ii) an individual who would be eligible for medical 143.5 assistance within 180 days of entering a nursing facility and 143.6 who meets a nursing facility level of care. 143.7(d)(h) Appeals from the screening team's recommendation or 143.8 the county agency's final decision shall be made according to 143.9 section 256.045, subdivision 3. 143.10 Sec. 35. Minnesota Statutes 1996, section 256B.0913, 143.11 subdivision 7, is amended to read: 143.12 Subd. 7. [CASE MANAGEMENT.]The lead agency shall appoint143.13a social worker from the county agency or a registered nurse143.14from the county public health nursing service of the local board143.15of health to be the case manager for any person receiving143.16services funded by the alternative care program.Providers of 143.17 case management services for persons receiving services funded 143.18 by the alternative care program must meet the qualification 143.19 requirements and standards specified in section 256B.0915, 143.20 subdivision 1b. The case manager must ensure the health and 143.21 safety of the individual client and is responsible for the 143.22 cost-effectiveness of the alternative care individual care 143.23 plan. The county may allow a case manager employed by the 143.24 county to delegate certain aspects of the case management 143.25 activity to another individual employed by the county provided 143.26 there is oversight of the individual by the case manager. The 143.27 case manager may not delegate those aspects which require 143.28 professional judgment including assessments, reassessments, and 143.29 care plan development. 143.30 Sec. 36. Minnesota Statutes 1996, section 256B.0913, 143.31 subdivision 10, is amended to read: 143.32 Subd. 10. [ALLOCATION FORMULA.] (a) The alternative care 143.33 appropriation for fiscal years 1992 and beyond shall cover only 143.34 180-day eligible clients. 143.35 (b) Prior to July 1 of each year, the commissioner shall 143.36 allocate to county agencies the state funds available for 144.1 alternative care for persons eligible under subdivision 2. The 144.2 allocation for fiscal year 1992 shall be calculated using a base 144.3 that is adjusted to exclude the medical assistance share of 144.4 alternative care expenditures. The adjusted base is calculated 144.5 by multiplying each county's allocation for fiscal year 1991 by 144.6 the percentage of county alternative care expenditures for 144.7 180-day eligible clients. The percentage is determined based on 144.8 expenditures for services rendered in fiscal year 1989 or 144.9 calendar year 1989, whichever is greater. 144.10 (c) If the county expenditures for 180-day eligible clients 144.11 are 95 percent or more of its adjusted base allocation, the 144.12 allocation for the next fiscal year is 100 percent of the 144.13 adjusted base, plus inflation to the extent that inflation is 144.14 included in the state budget. 144.15 (d) If the county expenditures for 180-day eligible clients 144.16 are less than 95 percent of its adjusted base allocation, the 144.17 allocation for the next fiscal year is the adjusted base 144.18 allocation less the amount of unspent funds below the 95 percent 144.19 level. 144.20 (e) For fiscal year 1992 only, a county may receive an 144.21 increased allocation if annualized service costs for the month 144.22 of May 1991 for 180-day eligible clients are greater than the 144.23 allocation otherwise determined. A county may apply for this 144.24 increase by reporting projected expenditures for May to the 144.25 commissioner by June 1, 1991. The amount of the allocation may 144.26 exceed the amount calculated in paragraph (b). The projected 144.27 expenditures for May must be based on actual 180-day eligible 144.28 client caseload and the individual cost of clients' care plans. 144.29 If a county does not report its expenditures for May, the amount 144.30 in paragraph (c) or (d) shall be used. 144.31 (f) Calculations for paragraphs (c) and (d) are to be made 144.32 as follows: for each county, the determination of expenditures 144.33 shall be based on payments for services rendered from April 1 144.34 through March 31 in the base year, to the extent that claims 144.35 have been submitted by June 1 of that year. Calculations for 144.36 paragraphs (c) and (d) must also include the funds transferred 145.1 to the consumer support grant program for clients who have 145.2 transferred to that program from April 1 through March 31 in the 145.3 base year. 145.4 Sec. 37. Minnesota Statutes 1996, section 256B.0913, 145.5 subdivision 15, is amended to read: 145.6 Subd. 15. [SERVICE ALLOWANCE FUND AVAILABILITY.] (a) 145.7 Effective July 1,19961997, the commissioner may use 145.8 alternative care funds for services to high function class A 145.9 persons as defined in section 144.0721, subdivision 3, clause 145.10 (2). The county alternative care grant allocation will be 145.11 supplemented with a special allocation amountbased on the145.12projected number of eligible high function class A's and145.13computed on the basis of $240 per month per projected eligible145.14person. Individual monthly expenditures under the service145.15allowance option are permitted to be either greater or less than145.16the amount of $240 per month based on individual need. County145.17allocations shall be adjusted periodically based on the actual145.18provision of services to high function class A persons. The 145.19 allocation will be distributed by a population based formula and 145.20 shall not exceed the proportion of projected savings made 145.21 available under section 144.0721, subdivision 3. 145.22 (b) Counties shall have the option of providing services, 145.23 cash service allowances, vouchers, or a combination of these 145.24 options to high function class A persons defined in section 145.25 144.0721, subdivision 3, clause (2). High function class A 145.26 persons may choose services from among the categories of 145.27 services listed under subdivision 5, except for case management 145.28 services. 145.29 (c) If the special allocation under this section to a 145.30 county is not sufficient to serve all persons who qualify 145.31 foralternative care servicesthe service allowance, the county 145.32 is not required to provide anyalternative careservices to a 145.33 high function class A person but shall establish a waiting list 145.34 to provide services as special allocation funding becomes 145.35 available. 145.36 Sec. 38. Minnesota Statutes 1996, section 256B.0915, 146.1 subdivision 1b, is amended to read: 146.2 Subd. 1b. [PROVIDER QUALIFICATIONS AND STANDARDS.] The 146.3 commissioner must enroll qualified providers of elderly case 146.4 management services under the home and community-based waiver 146.5 for the elderly under section 1915(c) of the Social Security 146.6 Act. The enrollment process shall ensure the provider's ability 146.7 to meet the qualification requirements and standards in this 146.8 subdivision and other federal and state requirements of this 146.9 service. An elderly case management provider is an enrolled 146.10 medical assistance provider who is determined by the 146.11 commissioner to have all of the following characteristics: 146.12 (1)the legal authority for alternative care program146.13administration under section 256B.0913;146.14(2)the demonstrated capacity and experience to provide the 146.15 components of case management to coordinate and link community 146.16 resources needed by the eligible population; 146.17(3)(2) administrative capacity and experience in serving 146.18 the target population for whom it will provide services and in 146.19 ensuring quality of services under state and federal 146.20 requirements; 146.21(4) the legal authority to provide preadmission screening146.22under section 256B.0911, subdivision 4;146.23(5)(3) a financial management system that provides 146.24 accurate documentation of services and costs under state and 146.25 federal requirements; 146.26(6)(4) the capacity to document and maintain individual 146.27 case records under state and federal requirements; and 146.28(7)(5) the county may allow a case manager employed by the 146.29 county to delegate certain aspects of the case management 146.30 activity to another individual employed by the county provided 146.31 there is oversight of the individual by the case manager. The 146.32 case manager may not delegate those aspects which require 146.33 professional judgment including assessments, reassessments, and 146.34 care plan development. 146.35 Sec. 39. Minnesota Statutes 1996, section 256B.0915, is 146.36 amended by adding a subdivision to read: 147.1 Subd. 7. [PREPAID ELDERLY WAIVER SERVICES.] An individual 147.2 for whom a prepaid health plan is liable for nursing home 147.3 services or elderly waiver services according to section 147.4 256B.69, subdivision 6a, is not eligible to receive 147.5 county-administered elderly waiver services under this section. 147.6 Sec. 40. Minnesota Statutes 1996, section 256B.0917, 147.7 subdivision 7, is amended to read: 147.8 Subd. 7. [CONTRACT.] (a) The commissioner of human 147.9 services shall execute a contract withan organization147.10experienced in establishing and operating community-based147.11programs that have used the principles listed in subdivision 8,147.12paragraph (b), in order to meet the independent living and147.13health needs of senior citizens aged 65 and over and provide147.14community-based long-term care for senior citizens in their147.15homesLiving at Home/Block Nurse Program, Inc. (LAH/BN, Inc.). 147.16 Theorganizationcontract shall require LAH/BN, Inc. to: 147.17 (1)assist the commissioner in developingdevelop criteria 147.18 for andin awardingaward grants to establish community-based 147.19 organizations that will implement living-at-home/block nurse 147.20 programs throughout the state; 147.21 (2)assist the commissioner in awardingaward grants to 147.22 enable current living-at-home/block nurse programs to continue 147.23 to implement the combined living-at-home/block nurse program 147.24 model; 147.25 (3) serve as a state technical assistance center to assist 147.26 and coordinate the living-at-home/block nurse programs 147.27 established; and 147.28 (4)develop the implementation plan required by subdivision147.2910manage contracts with individual living-at-home/block nurse 147.30 programs. 147.31 (b) The contract shall be effective July 1, 1997, and 147.32 section 16B.17 shall not apply. 147.33 Sec. 41. Minnesota Statutes 1996, section 256B.0917, 147.34 subdivision 8, is amended to read: 147.35 Subd. 8. [LIVING-AT-HOME/BLOCK NURSE PROGRAM GRANT.] (a) 147.36 Thecommissioner, in cooperation with theorganization awarded 148.1 the contract under subdivision 7, shall develop and administer a 148.2 grant program to establish or expand up to1546 community-based 148.3 organizations that will implement living-at-home/block nurse 148.4 programs that are designed to enable senior citizens to live as 148.5 independently as possible in their homes and in their 148.6 communities. At leastsevenone-half of the programs must be in 148.7 counties outside the seven-county metropolitan area.The148.8living-at-home/block nurse program funds shall be available to148.9the four to six SAIL projects established under this section.148.10 Nonprofit organizations and units of local government are 148.11 eligible to apply for grants to establish the community 148.12 organizations that will implement living-at-home/block nurse 148.13 programs. In awarding grants, thecommissionerorganization 148.14 awarded the contract under subdivision 7 shall give preference 148.15 to nonprofit organizations and units of local government from 148.16 communities that: 148.17 (1) have high nursing home occupancy rates; 148.18 (2) have a shortage of health care professionals;and148.19 (3) are located in counties adjacent to, or are located in, 148.20 counties with existing living-at-home/block nurse programs; and 148.21 (4) meet other criteria established bythe commissioner148.22 LAH/BN, Inc., in consultation with theorganization under148.23contractcommissioner. 148.24 (b) Grant applicants must also meet the following criteria: 148.25 (1) the local community demonstrates a readiness to 148.26 establish a community model of care, including the formation of 148.27 a board of directors, advisory committee, or similar group, of 148.28 which at least two-thirds is comprised of community citizens 148.29 interested in community-based care for older persons; 148.30 (2) the program has sponsorship by a credible, 148.31 representative organization within the community; 148.32 (3) the program has defined specific geographic boundaries 148.33 and defined its organization, staffing and coordination/delivery 148.34 of services; 148.35 (4) the program demonstrates a team approach to 148.36 coordination and care, ensuring that the older adult 149.1 participants, their families, the formal and informal providers 149.2 are all part of the effort to plan and provide services; and 149.3 (5) the program provides assurances that all community 149.4 resources and funding will be coordinated and that other funding 149.5 sources will be maximized, including a person's own resources. 149.6 (c) Grant applicants must provide a minimum of five percent 149.7 of total estimated development costs from local community 149.8 funding. Grants shall be awarded fortwo-yearfour-year 149.9 periods, and the base amount shall not exceed$40,000$80,000 149.10 per applicant for the grant period. Thecommissioner, in149.11consultation with theorganization under contract,may increase 149.12 the grant amount for applicants from communities that have 149.13 socioeconomic characteristics that indicate a higher level of 149.14 need fordevelopmentassistance. Subject to the availability of 149.15 funding, grants and grant renewals awarded or entered into on or 149.16 after July 1, 1997, shall be renewed by LAH/BN, Inc. every four 149.17 years, unless LAH/BN, Inc. determines that the grant recipient 149.18 has not satisfactorily operated the living-at-home/block nurse 149.19 program in compliance with the requirements of paragraphs (b) 149.20 and (d). Grants provided to living-at-home/block nurse programs 149.21 under this paragraph may be used for both program development 149.22 and the delivery of services. 149.23 (d) Each living-at-home/block nurse program shall be 149.24 designed by representatives of the communities being served to 149.25 ensure that the program addresses the specific needs of the 149.26 community residents. The programs must be designed to: 149.27 (1) incorporate the basic community, organizational, and 149.28 service delivery principles of the living-at-home/block nurse 149.29 program model; 149.30 (2) provide senior citizens with registered nurse directed 149.31 assessment, provision and coordination of health and personal 149.32 care services on a sliding fee basis as an alternative to 149.33 expensive nursing home care; 149.34 (3) provide information, support services, homemaking 149.35 services, counseling, and training for the client and family 149.36 caregivers; 150.1 (4) encourage the development and use of respite care, 150.2 caregiver support, and in-home support programs, such as adult 150.3 foster care and in-home adult day care; 150.4 (5) encourage neighborhood residents and local 150.5 organizations to collaborate in meeting the needs of senior 150.6 citizens in their communities; 150.7 (6) recruit, train, and direct the use of volunteers to 150.8 provide informal services and other appropriate support to 150.9 senior citizens and their caregivers; and 150.10 (7) provide coordination and management of formal and 150.11 informal services to senior citizens and their families using 150.12 less expensive alternatives. 150.13 Sec. 42. Minnesota Statutes 1996, section 256B.431, 150.14 subdivision 3f, is amended to read: 150.15 Subd. 3f. [PROPERTY COSTS AFTER JULY 1, 1988.] (a) 150.16 [INVESTMENT PER BED LIMIT.] For the rate year beginning July 1, 150.17 1988, the replacement-cost-new per bed limit must be $32,571 per 150.18 licensed bed in multiple bedrooms and $48,857 per licensed bed 150.19 in a single bedroom. For the rate year beginning July 1, 1989, 150.20 the replacement-cost-new per bed limit for a single bedroom must 150.21 be $49,907 adjusted according to Minnesota Rules, part 150.22 9549.0060, subpart 4, item A, subitem (1). Beginning January 1, 150.23 1990, the replacement-cost-new per bed limits must be adjusted 150.24 annually as specified in Minnesota Rules, part 9549.0060, 150.25 subpart 4, item A, subitem (1). Beginning January 1, 1991, the 150.26 replacement-cost-new per bed limits will be adjusted annually as 150.27 specified in Minnesota Rules, part 9549.0060, subpart 4, item A, 150.28 subitem (1), except that the index utilized will be the Bureau 150.29 of the Census: Composite fixed-weighted price index as 150.30 published in theSurvey of Current BusinessC30 Report, Value of 150.31 New Construction Put in Place. 150.32 (b) [RENTAL FACTOR.] For the rate year beginning July 1, 150.33 1988, the commissioner shall increase the rental factor as 150.34 established in Minnesota Rules, part 9549.0060, subpart 8, item 150.35 A, by 6.2 percent rounded to the nearest 100th percent for the 150.36 purpose of reimbursing nursing facilities for soft costs and 151.1 entrepreneurial profits not included in the cost valuation 151.2 services used by the state's contracted appraisers. For rate 151.3 years beginning on or after July 1, 1989, the rental factor is 151.4 the amount determined under this paragraph for the rate year 151.5 beginning July 1, 1988. 151.6 (c) [OCCUPANCY FACTOR.] For rate years beginning on or 151.7 after July 1, 1988, in order to determine property-related 151.8 payment rates under Minnesota Rules, part 9549.0060, for all 151.9 nursing facilities except those whose average length of stay in 151.10 a skilled level of care within a nursing facility is 180 days or 151.11 less, the commissioner shall use 95 percent of capacity days. 151.12 For a nursing facility whose average length of stay in a skilled 151.13 level of care within a nursing facility is 180 days or less, the 151.14 commissioner shall use the greater of resident days or 80 151.15 percent of capacity days but in no event shall the divisor 151.16 exceed 95 percent of capacity days. 151.17 (d) [EQUIPMENT ALLOWANCE.] For rate years beginning on 151.18 July 1, 1988, and July 1, 1989, the commissioner shall add ten 151.19 cents per resident per day to each nursing facility's 151.20 property-related payment rate. The ten-cent property-related 151.21 payment rate increase is not cumulative from rate year to rate 151.22 year. For the rate year beginning July 1, 1990, the 151.23 commissioner shall increase each nursing facility's equipment 151.24 allowance as established in Minnesota Rules, part 9549.0060, 151.25 subpart 10, by ten cents per resident per day. For rate years 151.26 beginning on or after July 1, 1991, the adjusted equipment 151.27 allowance must be adjusted annually for inflation as in 151.28 Minnesota Rules, part 9549.0060, subpart 10, item E. For the 151.29 rate period beginning October 1, 1992, the equipment allowance 151.30 for each nursing facility shall be increased by 28 percent. For 151.31 rate years beginning after June 30, 1993, the allowance must be 151.32 adjusted annually for inflation. 151.33 (e) [POST CHAPTER 199 RELATED-ORGANIZATION DEBTS AND 151.34 INTEREST EXPENSE.] For rate years beginning on or after July 1, 151.35 1990, Minnesota Rules, part 9549.0060, subpart 5, item E, shall 151.36 not apply to outstanding related organization debt incurred 152.1 prior to May 23, 1983, provided that the debt was an allowable 152.2 debt under Minnesota Rules, parts 9510.0010 to 9510.0480, the 152.3 debt is subject to repayment through annual principal payments, 152.4 and the nursing facility demonstrates to the commissioner's 152.5 satisfaction that the interest rate on the debt was less than 152.6 market interest rates for similar arms-length transactions at 152.7 the time the debt was incurred. If the debt was incurred due to 152.8 a sale between family members, the nursing facility must also 152.9 demonstrate that the seller no longer participates in the 152.10 management or operation of the nursing facility. Debts meeting 152.11 the conditions of this paragraph are subject to all other 152.12 provisions of Minnesota Rules, parts 9549.0010 to 9549.0080. 152.13 (f) [BUILDING CAPITAL ALLOWANCE FOR NURSING FACILITIES 152.14 WITH OPERATING LEASES.] For rate years beginning on or after 152.15 July 1, 1990, a nursing facility with operating lease costs 152.16 incurred for the nursing facility's buildings shall receive its 152.17 building capital allowance computed in accordance with Minnesota 152.18 Rules, part 9549.0060, subpart 8. 152.19 Sec. 43. Minnesota Statutes 1996, section 256B.69, 152.20 subdivision 2, is amended to read: 152.21 Subd. 2. [DEFINITIONS.] For the purposes of this section, 152.22 the following terms have the meanings given. 152.23 (a) "Commissioner" means the commissioner of human services. 152.24 For the remainder of this section, the commissioner's 152.25 responsibilities for methods and policies for implementing the 152.26 project will be proposed by the project advisory committees and 152.27 approved by the commissioner. 152.28 (b) "Demonstration provider" meansan individual, agency,152.29organization, or group of these entitiesa health maintenance 152.30 organization or community integrated service network authorized 152.31 and operating under chapter 62D or 62N that participates in the 152.32 demonstration project according to criteria, standards, methods, 152.33 and other requirements established for the project and approved 152.34 by the commissioner. 152.35 (c) "Eligible individuals" means those persons eligible for 152.36 medical assistance benefits as defined in sections 256B.055, 153.1 256B.056, and 256B.06. 153.2 (d) "Limitation of choice" means suspending freedom of 153.3 choice while allowing eligible individuals to choose among the 153.4 demonstration providers. 153.5 (e) This paragraph supersedes paragraph (c) as long as the 153.6 Minnesota health care reform waiver remains in effect. When the 153.7 waiver expires, this paragraph expires and the commissioner of 153.8 human services shall publish a notice in the State Register and 153.9 notify the revisor of statutes. "Eligible individuals" means 153.10 those persons eligible for medical assistance benefits as 153.11 defined in sections 256B.055, 256B.056, and 256B.06. 153.12 Notwithstanding sections 256B.055, 256B.056, and 256B.06, an 153.13 individual who becomes ineligible for the program because of 153.14 failure to submit income reports or recertification forms in a 153.15 timely manner, shall remain enrolled in the prepaid health plan 153.16 and shall remain eligible to receive medical assistance coverage 153.17 through the last day of the month following the month in which 153.18 the enrollee became ineligible for the medical assistance 153.19 program. 153.20 Sec. 44. Minnesota Statutes 1996, section 256B.69, 153.21 subdivision 3a, is amended to read: 153.22 Subd. 3a. [COUNTY AUTHORITY.] (a) The commissioner, when 153.23 implementing the general assistance medical care, or medical 153.24 assistance prepayment program within a county, must include the 153.25 county board in the process of development, approval, and 153.26 issuance of the request for proposals to provide services to 153.27 eligible individuals within the proposed county. County boards 153.28 must be given reasonable opportunity to make recommendations 153.29 regarding the development, issuance, review of responses, and 153.30 changes needed in the request for proposals. The commissioner 153.31 must provide county boards the opportunity to review each 153.32 proposal based on the identification of community needs under 153.33 chapters 145A and 256E and county advocacy activities. If a 153.34 county board finds that a proposal does not address certain 153.35 community needs, the county board and commissioner shall 153.36 continue efforts for improving the proposal and network prior to 154.1 the approval of the contract. The county board shall make 154.2 recommendations regarding the approval of local networks and 154.3 their operations to ensure adequate availability and access to 154.4 covered services. The provider or health plan must respond 154.5 directly to county advocates and the state prepaid medical 154.6 assistance ombudsperson regarding service delivery and must be 154.7 accountable to the state regarding contracts with medical 154.8 assistance and general assistance medical care funds. The 154.9 county board may recommend a maximum number of participating 154.10 health plans after considering the size of the enrolling 154.11 population; ensuring adequate access and capacity; considering 154.12 the client and county administrative complexity; and considering 154.13 the need to promote the viability of locally developed health 154.14 plans. The county board or a single entity representing a group 154.15 of county boards and the commissioner shall mutually select 154.16 health plans for participation at the time of initial 154.17 implementation of the prepaid medical assistance program in that 154.18 county or group of counties and at the time of contract renewal. 154.19 The commissioner shall also seek input for contract requirements 154.20 from the county or single entity representing a group of county 154.21 boards at each contract renewal and incorporate those 154.22 recommendations into the contract negotiation process. The 154.23 commissioner, in conjunction with the county board, shall 154.24 actively seek to develop a mutually agreeable timetable prior to 154.25 the development of the request for proposal, but counties must 154.26 agree to initial enrollment beginning on or before January 1, 154.27 1999, in either the prepaid medical assistance and general 154.28 assistance medical care programs or county-based purchasing 154.29 under section 256B.692. At least 90 days before enrollment in 154.30 the medical assistance and general assistance medical care 154.31 prepaid programs begins in a county in which the prepaid 154.32 programs have not been established, the commissioner shall 154.33 provide a report to the chairs of senate and house committees 154.34 having jurisdiction over state health care programs which 154.35 verifies that the commissioner complied with the requirements 154.36 for county involvement that are specified in this subdivision. 155.1 (b) The commissioner shall seek a federal waiver to allow a 155.2 fee-for-service plan option to MinnesotaCare enrollees. The 155.3 commissioner shall develop an increase of the premium fees 155.4 required under section 256.9356 up to 20 percent of the premium 155.5 fees for the enrollees who elect the fee-for-service option. 155.6 Prior to implementation, the commissioner shall submit this fee 155.7 schedule to the chair and ranking minority member of the senate 155.8 health care committee, the senate health care and family 155.9 services funding division, the house of representatives health 155.10 and human services committee, and the house of representatives 155.11 health and human services finance division. 155.12 (c) At the option of the county board, the board may 155.13 develop contract requirements related to the achievement of 155.14 local public health goals to meet the health needs of the 155.15 medical assistance and general assistance medical care 155.16 enrollees. If the county board and the commissioner mutually 155.17 agree to such requirements, the department shall include such 155.18 requirements in all health plan contracts governing the prepaid 155.19 medical assistance and general assistance medical care programs 155.20 in that county at initial implementation of the program in that 155.21 county and at the time of contract renewal. The county board 155.22 may participate in the enforcement of the contract provisions 155.23 related to local public health goals. 155.24 (d) For counties in which prepaid medical assistance and 155.25 general assistance medical care programs have not been 155.26 established, the commissioner shall not implement those programs 155.27 if a county board submits acceptable and timely preliminary and 155.28 final proposals under section 256B.692, until county-based 155.29 purchasing is no longer operational in that county. For 155.30 counties in which prepaid medical assistance and general 155.31 assistance medical care programs are in existence on or after 155.32 September 1, 1997, the commissioner must terminate contracts 155.33 with health plans according to section 256B.692, subdivision 5, 155.34 if the county board submits and the commissioner accepts 155.35 preliminary and final proposals according to that subdivision. 155.36 However, in order to ensure quality of care, no individual 156.1 currently enrolled with a prepaid health plan in a state 156.2 prepayment program may be required to change to a county 156.3 purchasing program until: 156.4 (1) the commissioner of health has determined that the 156.5 county purchasing program meets all requirements of section 156.6 256B.692 and is capable of meeting all member health care needs; 156.7 and 156.8 (2) the individual has been given sufficient information to 156.9 make an informed decision through an open enrollment process. 156.10 (e) In the event that a county board or a single entity 156.11 representing a group of county boards and the commissioner 156.12 cannot reach agreement regarding: (i) the selection of 156.13 participating health plans in that county; (ii) contract 156.14 requirements; or (iii) implementation and enforcement of county 156.15 requirements including provisions regarding local public health 156.16 goals, the commissioner shall resolve all disputes after taking 156.17 into account the recommendations of a three-person mediation 156.18 panel. The panel shall be composed of one designee of the 156.19 president of the association of Minnesota counties, one designee 156.20 of the commissioner of human services, and one designee of the 156.21 commissioner of health. 156.22 Sec. 45. Minnesota Statutes 1996, section 256B.69, 156.23 subdivision 4, is amended to read: 156.24 Subd. 4. [LIMITATION OF CHOICE.] The commissioner shall 156.25 develop criteria to determine when limitation of choice may be 156.26 implemented in the experimental counties. The criteria shall 156.27 ensure that all eligible individuals in the county have 156.28 continuing access to the full range of medical assistance 156.29 services as specified in subdivision 6. The commissioner shall 156.30 exempt the following persons from participation in the project, 156.31 in addition to those who do not meet the criteria for limitation 156.32 of choice: (1) persons eligible for medical assistance 156.33 according to section 256B.055, subdivision 1; (2) persons 156.34 eligible for medical assistance due to blindness or disability 156.35 as determined by the social security administration or the state 156.36 medical review team, unless: (i) they are 65 years of age or 157.1 older, or (ii) they reside in Itasca county or they reside in a 157.2 county in which the commissioner conducts a pilot project under 157.3 a waiver granted pursuant to section 1115 of the Social Security 157.4 Act; (3) recipients who currently have private coverage through 157.5 a health maintenance organization; (4) recipients who are 157.6 eligible for medical assistance by spending down excess income 157.7 for medical expenses other than the nursing facility per diem 157.8 expense; (5) recipients who receive benefits under the Refugee 157.9 Assistance Program, established under United States Code, title 157.10 8, section 1522(e); (6) children who are both determined to be 157.11 severely emotionally disturbed and receiving case management 157.12 services according to section 256B.0625, subdivision 20; and (7) 157.13 adults under age 65 who are both determined to be seriously and 157.14 persistently mentally ill and received case management services 157.15 according to section 256B.0625, subdivision 20. Children under 157.16 age 21 who are in foster placement may enroll in the project on 157.17 an elective basis. Individuals excluded under clauses (6) and 157.18 (7) may choose to enroll on an elective basis. The commissioner 157.19 may allow persons with a one-month spenddown who are otherwise 157.20 eligible to enroll to voluntarily enroll or remain enrolled, if 157.21 they elect to prepay their monthly spenddown to the state. 157.22 Effective July 1, 1999, the commissioner may require individuals 157.23 who are eligible for medical assistance on a spenddown basis to 157.24 enroll in the prepaid medical assistance program and may require 157.25 that the spenddown amount be paid to the state, county, or 157.26 health plan as a condition of eligibility for medical 157.27 assistance. The commissioner shall request any necessary 157.28 federal authority to require the enrollment of individuals with 157.29 spenddowns into the prepaid medical assistance demonstration 157.30 project. Beginning on or after July 1, 1997, the commissioner 157.31 may require those individuals to enroll in the prepaid medical 157.32 assistance program who otherwise would have been excluded under 157.33 clauses (1) and (3) and under Minnesota Rules, part 9500.1452, 157.34 subpart 2, items H, K, and L. Before limitation of choice is 157.35 implemented, eligible individuals shall be notified and after 157.36 notification, shall be allowed to choose only among 158.1 demonstration providers. The commissioner may assign an 158.2 individual with private coverage through a health maintenance 158.3 organization, to the same health maintenance organization for 158.4 medical assistance coverage, if the health maintenance 158.5 organization is under contract for medical assistance in the 158.6 individual's county of residence. After initially choosing a 158.7 provider, the recipient is allowed to change that choice only at 158.8 specified times as allowed by the commissioner. If a 158.9 demonstration provider ends participation in the project for any 158.10 reason, a recipient enrolled with that provider must select a 158.11 new provider but may change providers without cause once more 158.12 within the first 60 days after enrollment with the second 158.13 provider. 158.14 Sec. 46. Minnesota Statutes 1996, section 256B.69, 158.15 subdivision 5, is amended to read: 158.16 Subd. 5. [PROSPECTIVE PER CAPITA PAYMENT.] The 158.17 commissioner shall establish the method and amount of payments 158.18 for services. The commissioner shall annually contract with 158.19 demonstration providers to provide services consistent with 158.20 these established methods and amounts for payment. 158.21Notwithstanding section 62D.02, subdivision 1, payments for158.22services rendered as part of the project may be made to158.23providers that are not licensed health maintenance organizations158.24on a risk-based, prepaid capitation basis.158.25 If allowed by the commissioner, a demonstration provider 158.26 may contract with an insurer, health care provider, nonprofit 158.27 health service plan corporation, or the commissioner, to provide 158.28 insurance or similar protection against the cost of care 158.29 provided by the demonstration provider or to provide coverage 158.30 against the risks incurred by demonstration providers under this 158.31 section. The recipients enrolled with a demonstration provider 158.32 are a permissible group under group insurance laws and chapter 158.33 62C, the Nonprofit Health Service Plan Corporations Act. Under 158.34 this type of contract, the insurer or corporation may make 158.35 benefit payments to a demonstration provider for services 158.36 rendered or to be rendered to a recipient. Any insurer or 159.1 nonprofit health service plan corporation licensed to do 159.2 business in this state is authorized to provide this insurance 159.3 or similar protection. 159.4 Payments to providers participating in the project are 159.5 exempt from the requirements of sections 256.966 and 256B.03, 159.6 subdivision 2. The commissioner shall complete development of 159.7 capitation rates for payments before delivery of services under 159.8 this section is begun. For payments made during calendar year 159.9 1990 and later years, the commissioner shall contract with an 159.10 independent actuary to establish prepayment rates. 159.11 By January 15, 1996, the commissioner shall report to the 159.12 legislature on the methodology used to allocate to participating 159.13 counties available administrative reimbursement for advocacy and 159.14 enrollment costs. The report shall reflect the commissioner's 159.15 judgment as to the adequacy of the funds made available and of 159.16 the methodology for equitable distribution of the funds. The 159.17 commissioner must involve participating counties in the 159.18 development of the report. 159.19 Sec. 47. Minnesota Statutes 1996, section 256B.69, 159.20 subdivision 5b, is amended to read: 159.21 Subd. 5b. [PROSPECTIVE REIMBURSEMENT RATES.] For prepaid 159.22 medical assistance and general assistance medical care program 159.23 contract rates set by the commissioner under subdivision 5 and 159.24 effective on or after January 1,1997, through December 31,159.25 1998, capitation rates for nonmetropolitan counties shall on a 159.26 weighted average be no less than8587 percent of the capitation 159.27 rates for metropolitan counties, excluding Hennepin county. The 159.28 commissioner shall make a pro rata adjustment in capitation 159.29 rates paid to counties other than nonmetropolitan counties in 159.30 order to make this provision budget neutral. 159.31 Sec. 48. Minnesota Statutes 1996, section 256B.69, 159.32 subdivision 6, is amended to read: 159.33 Subd. 6. [SERVICE DELIVERY.] (a) Each demonstration 159.34 provider shall be responsible for the health care coordination 159.35 for eligible individuals. Demonstration providers: 159.36 (1) shall authorize and arrange for the provision of all 160.1 needed health services including but not limited to the full 160.2 range of services listed in sections 256B.02, subdivision 8, and 160.3 256B.0625, except dental services provided under section 160.4 256B.037, in order to ensure appropriate health care is 160.5 delivered to enrollees; 160.6 (2) shall accept the prospective, per capita payment from 160.7 the commissioner in return for the provision of comprehensive 160.8 and coordinated health care services for eligible individuals 160.9 enrolled in the program; 160.10 (3) may contract with other health care and social service 160.11 practitioners to provide services to enrollees; and 160.12 (4) shall institute recipient grievance procedures 160.13 according to the method established by the project, utilizing 160.14 applicable requirements of chapter 62D. Disputes not resolved 160.15 through this process shall be appealable to the commissioner as 160.16 provided in subdivision 11. 160.17 (b) Demonstration providers must comply with the standards 160.18 for claims settlement under section 72A.201, subdivisions 4, 5, 160.19 7, and 8, when contracting with other health care and social 160.20 service practitioners to provide services to enrollees. A 160.21 demonstration provider must pay a clean claim, as defined in 160.22 Code of Federal Regulations, title 42, section 447.45(b), within 160.23 30 business days of the date of acceptance of the claim. 160.24 Sec. 49. Minnesota Statutes 1996, section 256B.69, is 160.25 amended by adding a subdivision to read: 160.26 Subd. 6a. [NURSING HOME SERVICES.] (a) Notwithstanding 160.27 Minnesota Rules, part 9500.1457, subpart 1, item B, nursing 160.28 facility services as defined in section 256B.0625, subdivision 160.29 2, which are provided in a nursing facility certified by the 160.30 Minnesota department of health for services provided and 160.31 eligible for payment under Medicaid, shall be covered under the 160.32 prepaid medical assistance program for individuals who are not 160.33 residing in a nursing facility at the time of enrollment in the 160.34 prepaid medical assistance program. Liability for coverage of 160.35 nursing facility services by a participating health plan is 160.36 limited to 365 days for any person enrolled under the prepaid 161.1 medical assistance program. 161.2 (b) For individuals enrolled in the Minnesota senior health 161.3 options project authorized under subdivision 23, nursing 161.4 facility services shall be covered according to the terms and 161.5 conditions of the federal waiver governing that demonstration 161.6 project. 161.7 Sec. 50. Minnesota Statutes 1996, section 256B.69, is 161.8 amended by adding a subdivision to read: 161.9 Subd. 6b. [ELDERLY WAIVER SERVICES.] Notwithstanding 161.10 Minnesota Rules, part 9500.1457, subpart 1, item C, elderly 161.11 waiver services shall be covered under the prepaid medical 161.12 assistance program for all individuals who are eligible 161.13 according to section 256B.0915. For individuals enrolled in the 161.14 Minnesota senior health options project authorized under 161.15 subdivision 23, elderly waiver services shall be covered 161.16 according to the terms and conditions of the federal waiver 161.17 governing that demonstration project. 161.18 Sec. 51. [256B.692] [COUNTY-BASED PURCHASING.] 161.19 Subdivision 1. [IN GENERAL.] County boards or groups of 161.20 county boards may elect to purchase or provide health care 161.21 services on behalf of persons eligible for medical assistance 161.22 and general assistance medical care who would otherwise be 161.23 required to or may elect to participate in the prepaid medical 161.24 assistance or prepaid general assistance medical care programs, 161.25 according to sections 256B.69 and 256D.03. Counties that elect 161.26 to purchase or provide health care under this section must 161.27 provide all services included in prepaid managed care programs 161.28 according to sections 256B.69, subdivisions 1 to 22, and 161.29 256D.03. County-based purchasing under this section is governed 161.30 by section 256B.69, unless otherwise provided for under this 161.31 section. 161.32 Subd. 2. [DUTIES OF THE COMMISSIONER OF HEALTH.] 161.33 Notwithstanding chapters 62D and 62N, a county that elects to 161.34 purchase medical assistance and general assistance medical care 161.35 in return for a fixed sum without regard to the frequency or 161.36 extent of services furnished to any particular enrollee is not 162.1 required to obtain a certificate of authority under chapter 62D 162.2 or 62N. A county that elects to purchase medical assistance and 162.3 general assistance medical care services under this section must 162.4 satisfy the commissioner of health that the requirements of 162.5 chapter 62D, applicable to health maintenance organizations, or 162.6 chapter 62N, applicable to community integrated service 162.7 networks, will be met. A county must also assure the 162.8 commissioner of health that the requirements of section 72A.201 162.9 will be met. All enforcement and rulemaking powers available 162.10 under chapters 62D and 62N are hereby granted to the 162.11 commissioner of health with respect to counties that purchase 162.12 medical assistance and general assistance medical care services 162.13 under this section. 162.14 Subd. 3. [REQUIREMENTS OF THE COUNTY BOARD.] A county 162.15 board that intends to purchase or provide health care under this 162.16 section, which may include purchasing all or part of these 162.17 services from health plans or individual providers on a 162.18 fee-for-service basis, or providing these services directly, 162.19 must demonstrate the ability to follow and agree to the 162.20 following requirements: 162.21 (1) purchase all covered services for a fixed payment from 162.22 the state that does not exceed the estimated state and federal 162.23 cost that would have occurred under the prepaid medical 162.24 assistance and general assistance medical care programs; 162.25 (2) ensure that covered services are accessible to all 162.26 enrollees and that enrollees have a reasonable choice of 162.27 providers, as well as health plans or networks, when possible. 162.28 If the county is also a provider of service, the county board 162.29 shall develop a process to ensure that providers employed by the 162.30 county are not the sole referral source and are not the sole 162.31 provider of health care services, if other providers which meet 162.32 the same quality and cost requirements are available; 162.33 (3) issue payments to participating vendors or networks in 162.34 a timely manner; 162.35 (4) establish a process to ensure and improve the quality 162.36 of care provided; 163.1 (5) provide appropriate quality and other required data in 163.2 a format required by the state; 163.3 (6) provide a system for advocacy, enrollee protection, and 163.4 complaints and appeals that is independent of care providers or 163.5 other risk bearers and complies with section 256B.69; 163.6 (7) for counties within the seven-county metropolitan area, 163.7 ensure that the implementation and operation of the Minnesota 163.8 senior health options demonstration project, authorized under 163.9 section 256B.69, subdivision 23, will not be impeded; 163.10 (8) ensure that all recipients that are enrolled in the 163.11 prepaid medical assistance or general assistance medical care 163.12 program will be transferred to county-based purchasing without 163.13 utilizing the department's fee-for-service claims payment 163.14 system; and 163.15 (9) ensure that the state and the medical assistance and 163.16 general assistance medical care recipients shall be held 163.17 harmless for the payment of obligations incurred by the county 163.18 if the county, or a health plan providing services on behalf of 163.19 the county, or a provider participating in county purchasing, 163.20 becomes insolvent and the state has made the payments due to the 163.21 county under this section. 163.22 Subd. 4. [PAYMENTS TO COUNTIES.] The commissioner shall 163.23 pay counties that are purchasing or providing health care under 163.24 this section a per capita payment for all enrolled recipients. 163.25 Payments shall not exceed payments that otherwise would have 163.26 been paid to health plans under medical assistance and general 163.27 assistance medical care for that county or region. This payment 163.28 is in addition to any administrative allocation to counties for 163.29 education, enrollment, and advocacy. The state of Minnesota and 163.30 the United States Department of Health and Human Services are 163.31 not liable for any costs incurred by a county that exceed the 163.32 payments to the county made under this subdivision. A county 163.33 whose costs exceed the payments made by the state, or any 163.34 affected enrollees or creditors of that county, shall have no 163.35 rights under chapter 61B or section 62D.181. A county may 163.36 assign risk for the cost of care to a third party. 164.1 Subd. 5. [COUNTY PROPOSALS.] (a) On or before September 1, 164.2 1997, a county board that wishes to purchase or provide health 164.3 care under this section must submit a preliminary proposal that 164.4 substantially demonstrates the county's ability to meet all the 164.5 requirements of this section in response to criteria for 164.6 proposals issued by the department on or before July 1, 1997. 164.7 The county board must submit a final proposal on or before July 164.8 1, 1998, that demonstrates the ability to meet all the 164.9 requirements of this section, including beginning enrollment on 164.10 January 1, 1999. 164.11 Counties submitting preliminary proposals must establish a 164.12 local planning process that involves input from medical 164.13 assistance and general assistance medical care recipients, 164.14 recipient advocates, providers, and representatives of local 164.15 school districts, labor, and tribal government, to advise on the 164.16 development of a final proposal and its implementation. 164.17 (b) After January 1, 1999, for a county in which the 164.18 prepaid medical assistance program is in existence, the county 164.19 board must submit a preliminary proposal at least 15 months 164.20 prior to termination of health plan contracts in that county and 164.21 a final proposal six months prior to the health plan contract 164.22 termination date in order to begin enrollment after the 164.23 termination. Nothing in this section shall impede or delay 164.24 implementation or continuation of the prepaid medical assistance 164.25 and general assistance medical care programs in counties for 164.26 which the board does not submit a proposal, or submits a 164.27 proposal that is not in compliance with this section. 164.28 Subd. 6. [COMMISSIONER'S AUTHORITY.] The commissioner may: 164.29 (a) reject any preliminary or final proposal that 164.30 substantially fails to meet the requirements of this section, or 164.31 that the commissioner determines would substantially impair the 164.32 state's ability to purchase health care services in other areas 164.33 of the state, or would substantially impair the implementation 164.34 and operation of the Minnesota senior health options 164.35 demonstration project authorized under section 256B.69, 164.36 subdivision 23; and 165.1 (b) assume operation of a county's purchasing of health 165.2 care for enrollees in medical assistance and general assistance 165.3 medical care in the event that the contract with the county is 165.4 terminated. 165.5 Subd. 7. [DISPUTE RESOLUTION.] In the event the 165.6 commissioner rejects a proposal under subdivision 6, the county 165.7 board may request the recommendation of a three-person mediation 165.8 panel. The commissioner shall resolve all disputes after taking 165.9 into account the recommendations of the mediation panel. The 165.10 panel shall be composed of one designee of the president of the 165.11 association of Minnesota counties, one designee of the 165.12 commissioner of human services, and one designee of the 165.13 commissioner of health. 165.14 Subd. 8. [APPEALS.] A county that conducts county-based 165.15 purchasing shall be considered to be a prepaid health plan for 165.16 purposes of section 256.045. 165.17 Subd. 9. [FEDERAL APPROVAL.] The commissioner shall 165.18 request any federal waivers and federal approval required to 165.19 implement this section. County-based purchasing shall not be 165.20 implemented without obtaining all federal approval required to 165.21 maintain federal matching funds in the medical assistance 165.22 program. 165.23 Subd. 10. [REPORT TO THE LEGISLATURE.] The commissioner 165.24 shall submit a report to the legislature by February 1, 1998, on 165.25 the preliminary proposals submitted on or before September 1, 165.26 1997. 165.27 Sec. 52. Minnesota Statutes 1996, section 256D.03, 165.28 subdivision 3, is amended to read: 165.29 Subd. 3. [GENERAL ASSISTANCE MEDICAL CARE; ELIGIBILITY.] 165.30 (a) General assistance medical care may be paid for any person 165.31 who is not eligible for medical assistance under chapter 256B, 165.32 including eligibility for medical assistance based on a 165.33 spenddown of excess income according to section 256B.056, 165.34 subdivision 5, and: 165.35 (1) who is receiving assistance under section 256D.05, or 165.36 who is having a payment made on the person's behalf under 166.1 sections 256I.01 to 256I.06; or 166.2 (2)(i) who is a resident of Minnesota; and whose equity in 166.3 assets is not in excess of $1,000 per assistance unit.No asset166.4test shall be applied to children and their parents living in166.5the same household.Exempt assets, the reduction of excess 166.6 assets, and the waiver of excess assets must conform to the 166.7 medical assistance program in chapter 256B, with the following 166.8 exception: the maximum amount of undistributed funds in a trust 166.9 that could be distributed to or on behalf of the beneficiary by 166.10 the trustee, assuming the full exercise of the trustee's 166.11 discretion under the terms of the trust, must be applied toward 166.12 the asset maximum; and 166.13 (ii) who has countable income not in excess of the 166.14 assistance standards established in section 256B.056, 166.15 subdivision 4, or whose excess income is spent down pursuant to 166.16 section 256B.056, subdivision 5, using a six-month budget 166.17 period, except that a one-month budget period must be used for166.18recipients residing in a long-term care facility. The method 166.19 for calculating earned income disregards and deductions for a 166.20 person who resides with a dependent child under age 21 shallbe166.21as specified in section 256.74, subdivision 1follow section 166.22 256B.056, subdivision 1a. However, if a disregard of $30 and 166.23 one-third of the remainderdescribed in section 256.74,166.24subdivision 1, clause (4),has been applied to the wage earner's 166.25 income, the disregard shall not be applied again until the wage 166.26 earner's income has not been considered in an eligibility 166.27 determination for general assistance, general assistance medical 166.28 care, medical assistance, oraid to families with dependent166.29childrenMFIP-S for 12 consecutive months. The earned income 166.30 and work expense deductions for a person who does not reside 166.31 with a dependent child under age 21 shall be the same as the 166.32 method used to determine eligibility for a person under section 166.33 256D.06, subdivision 1, except the disregard of the first $50 of 166.34 earned income is not allowed; or 166.35 (3) who would be eligible for medical assistance except 166.36 that the person resides in a facility that is determined by the 167.1 commissioner or the federal health care financing administration 167.2 to be an institution for mental diseases. 167.3 (b) Eligibility is available for the month of application, 167.4 and for three months prior to application if the person was 167.5 eligible in those prior months. A redetermination of 167.6 eligibility must occur every 12 months. 167.7 (c) General assistance medical care is not available for a 167.8 person in a correctional facility unless the person is detained 167.9 by law for less than one year in a county correctional or 167.10 detention facility as a person accused or convicted of a crime, 167.11 or admitted as an inpatient to a hospital on a criminal hold 167.12 order, and the person is a recipient of general assistance 167.13 medical care at the time the person is detained by law or 167.14 admitted on a criminal hold order and as long as the person 167.15 continues to meet other eligibility requirements of this 167.16 subdivision. 167.17 (d) General assistance medical care is not available for 167.18 applicants or recipients who do not cooperate with the county 167.19 agency to meet the requirements of medical assistance. 167.20 (e) In determining the amount of assets of an individual, 167.21 there shall be included any asset or interest in an asset, 167.22 including an asset excluded under paragraph (a), that was given 167.23 away, sold, or disposed of for less than fair market value 167.24 within the 60 months preceding application for general 167.25 assistance medical care or during the period of eligibility. 167.26 Any transfer described in this paragraph shall be presumed to 167.27 have been for the purpose of establishing eligibility for 167.28 general assistance medical care, unless the individual furnishes 167.29 convincing evidence to establish that the transaction was 167.30 exclusively for another purpose. For purposes of this 167.31 paragraph, the value of the asset or interest shall be the fair 167.32 market value at the time it was given away, sold, or disposed 167.33 of, less the amount of compensation received. For any 167.34 uncompensated transfer, the number of months of ineligibility, 167.35 including partial months, shall be calculated by dividing the 167.36 uncompensated transfer amount by the average monthly per person 168.1 payment made by the medical assistance program to skilled 168.2 nursing facilities for the previous calendar year. The 168.3 individual shall remain ineligible until this fixed period has 168.4 expired. The period of ineligibility may exceed 30 months, and 168.5 a reapplication for benefits after 30 months from the date of 168.6 the transfer shall not result in eligibility unless and until 168.7 the period of ineligibility has expired. The period of 168.8 ineligibility begins in the month the transfer was reported to 168.9 the county agency, or if the transfer was not reported, the 168.10 month in which the county agency discovered the transfer, 168.11 whichever comes first. For applicants, the period of 168.12 ineligibility begins on the date of the first approved 168.13 application. 168.14 (f)(1) Beginning October 1, 1993, an undocumented alien or 168.15 a nonimmigrant is ineligible for general assistance medical care 168.16 other than emergency services. For purposes of this 168.17 subdivision, a nonimmigrant is an individual in one or more of 168.18 the classes listed in United States Code, title 8, section 168.19 1101(a)(15), and an undocumented alien is an individual who 168.20 resides in the United States without the approval or 168.21 acquiescence of the Immigration and Naturalization Service. 168.22 (2) This subdivision does not apply to a child under age 168.23 18, to a Cuban or Haitian entrant as defined in Public Law 168.24 Number 96-422, section 501(e)(1) or (2)(a), or to an alien who 168.25 is aged, blind, or disabled as defined in United States Code, 168.26 title 42, section 1382c(a)(1). 168.27 (3) For purposes of paragraph (f), "emergency services" has 168.28 the meaning given in Code of Federal Regulations, title 42, 168.29 section 440.255(b)(1), except that it also means services 168.30 rendered because of suspected or actual pesticide poisoning. 168.31 Sec. 53. Minnesota Statutes 1996, section 256G.02, 168.32 subdivision 6, is amended to read: 168.33 Subd. 6. [EXCLUDED TIME.] "Excluded time" means: 168.34 (a) any period an applicant spends in a hospital, 168.35 sanitarium, nursing home, shelter other than an emergency 168.36 shelter, halfway house, foster home, semi-independent living 169.1 domicile or services program, residential facility offering 169.2 care, board and lodging facility or other institution for the 169.3 hospitalization or care of human beings, as defined in section 169.4 144.50, 144A.01, or 245A.02, subdivision 14; maternity home, 169.5 battered women's shelter, or correctional facility; or any 169.6 facility based on an emergency hold under sections 253B.05, 169.7 subdivisions 1 and 2, and 253B.07, subdivision 6; 169.8 (b) any period an applicant spends on a placement basis in 169.9 a training and habilitation program, including a rehabilitation 169.10 facility or work or employment program as defined in section 169.11 268A.01; or receiving personal care assistant services pursuant 169.12 to section 256B.0627, subdivision 4; semi-independent living 169.13 services provided under section 252.275, and Minnesota Rules, 169.14 parts 9525.0500 to 9525.0660; day training and habilitation 169.15 programs, and community-based servicesand assisted living 169.16 services; and 169.17 (c) any placement for a person with an indeterminate 169.18 commitment, including independent living. 169.19 Sec. 54. Minnesota Statutes 1996, section 256G.05, 169.20 subdivision 2, is amended to read: 169.21 Subd. 2. [NON-MINNESOTA RESIDENTS.] State residence is not 169.22 required for receiving emergency assistance in the general 169.23 assistance,general assistance medical care,and Minnesota 169.24 supplemental aid programs only. The receipt of emergency 169.25 assistance must not be used as a factor in determining county or 169.26 state residence. Non-Minnesota residents are not eligible for 169.27 emergency general assistance medical care, except emergency 169.28 hospital services, and professional services incident to the 169.29 hospital services, for the treatment of acute trauma resulting 169.30 from an accident occurring in Minnesota. To be eligible under 169.31 this subdivision a non-Minnesota resident must verify that they 169.32 are not eligible for coverage under any other health care 169.33 program, including coverage from a program in their state of 169.34 residence. 169.35 Sec. 55. Minnesota Statutes 1996, section 256I.05, 169.36 subdivision 1a, is amended to read: 170.1 Subd. 1a. [SUPPLEMENTARY RATES.] In addition to the room 170.2 and board rate specified in subdivision 1, the county agency may 170.3 negotiate a payment not to exceed $426.37 for other services 170.4 necessary to provide room and board provided by the group 170.5 residence if the residence is licensed by or registered by the 170.6 department of health, or licensed by the department of human 170.7 services to provide services in addition to room and board, and 170.8 if the provider of services is not also concurrently receiving 170.9 funding for services for a recipient under a home and 170.10 community-based waiver under title XIX of the Social Security 170.11 Act; or funding from the medical assistance program under 170.12 section 256B.0627, subdivision 4, for personal care services for 170.13 residents in the setting; or residing in a setting which 170.14 receives funding under Minnesota Rules, parts 9535.2000 to 170.15 9535.3000. If funding is available for other necessary services 170.16 through a home and community-based waiver, or personal care 170.17 services under section 256B.0627, subdivision 4, then the GRH 170.18 rate is limited to the rate set in subdivision 1. The 170.19 registration and licensure requirement does not apply to 170.20 establishments which are exempt from state licensure because 170.21 they are located on Indian reservations and for which the tribe 170.22 has prescribed health and safety requirements. Service payments 170.23 under this section may be prohibited under rules to prevent the 170.24 supplanting of federal funds with state funds. The commissioner 170.25 shall pursue the feasibility of obtaining the approval of the 170.26 Secretary of Health and Human Services to provide home and 170.27 community-based waiver services under title XIX of the Social 170.28 Security Act for residents who are not eligible for an existing 170.29 home and community-based waiver due to a primary diagnosis of 170.30 mental illness or chemical dependency and shall apply for a 170.31 waiver if it is determined to be cost-effective. The 170.32 commissioner is authorized to make cost-neutral transfers from 170.33 the GRH fund for beds under this section to other funding 170.34 programs administered by the department after consultation with 170.35 the county or counties in which the affected beds are located. 170.36 The commissioner may also make cost neutral transfers from the 171.1 GRH fund to county human service agencies for beds permanently 171.2 removed from the GRH census under a plan submitted by the county 171.3 agency and approved by the commissioner. The commissioner shall 171.4 report the amount of any transfers under this provision annually 171.5 to the legislature. 171.6 Sec. 56. Minnesota Statutes 1996, section 469.155, 171.7 subdivision 4, is amended to read: 171.8 Subd. 4. [REFINANCING HEALTH FACILITIES.] It may issue 171.9 revenue bonds to pay, purchase, or discharge all or any part of 171.10 the outstanding indebtedness of a contracting party engaged 171.11 primarily in the operation of one or more nonprofit hospitals or 171.12 nursing homes previously incurred in the acquisition or 171.13 betterment of its existing hospital or nursing home facilities 171.14 to the extent deemed necessary by the governing body of the 171.15 municipality or redevelopment agency; this may include any 171.16 unpaid interest on the indebtedness accrued or to accrue to the 171.17 date on which the indebtedness is finally paid, and any premium 171.18 the governing body of the municipality or redevelopment agency 171.19 determines to be necessary to be paid to pay, purchase, or 171.20 defease the outstanding indebtedness. If revenue bonds are 171.21 issued for this purpose, the refinancing and the existing 171.22 properties of the contracting party shall be deemed to 171.23 constitute a project under section 469.153, subdivision 2, 171.24 clause (d).Revenue bonds may not be issued pursuant to this171.25subdivision unless the application for approval of the project171.26pursuant to section 469.154 shows that a reduction in debt171.27service charges is estimated to result and will be reflected in171.28charges to patients and third-party payors. Proceeds of revenue171.29bonds issued pursuant to this subdivision may not be used for171.30any purpose inconsistent with the provisions of chapter 256B.171.31Nothing in this subdivision prohibits the use of revenue bond171.32proceeds to pay outstanding indebtedness of a contracting party171.33to the extent permitted by law on March 28, 1978.171.34 Sec. 57. [WAIVER MODIFICATION.] 171.35 The commissioner of human services shall seek federal 171.36 approval for any modifications to the health care reform waiver 172.1 necessary to implement the asset standard changes in sections 20 172.2 to 22 and 27. 172.3 Sec. 58. [NEED FOR NONSTANDARD WHEELCHAIRS.] 172.4 The commissioner of human services, in consultation with 172.5 the System of Technology to Achieve Results (STAR) program, 172.6 shall present a report to the legislature by January 1, 1998, on 172.7 the need for nonstandard wheelchairs for recipients residing in 172.8 long-term care facilities. A standard wheelchair is a manual 172.9 wheelchair that is 16 to 20 inches wide and 18 inches deep with 172.10 sling seat and back upholstery and a seat height of 19-1/2 172.11 inches. The report shall: 172.12 (1) determine how many medical assistance recipients who 172.13 reside in long-term care facilities cannot independently operate 172.14 a standard wheelchair, but can safely and independently operate 172.15 a power or other nonstandard wheelchair; 172.16 (2) determine how many medical assistance recipients who 172.17 reside in long-term care facilities require a wheelchair to be 172.18 permanently modified by the addition of an item to accommodate 172.19 their health needs; 172.20 (3) determine how many medical assistance recipients who 172.21 reside in long-term care facilities have seating or positioning 172.22 needs which cannot be accommodated in a standard wheelchair; 172.23 (4) determine the average cost of a nonstandard wheelchair; 172.24 (5) determine the capability of long-term care facilities 172.25 to provide nonstandard wheelchairs to meet medical assistance 172.26 recipients needs; and 172.27 (6) determine to what extent in the past four years the 172.28 department of health has enforced regulations or rules relating 172.29 to a long-term care facility's obligation to meet the mobility 172.30 needs of residents. 172.31 Sec. 59. [REPEALER.] 172.32 Minnesota Statutes 1996, sections 256B.057, subdivisions 2a 172.33 and 2b; and 469.154, subdivision 6, are repealed. 172.34 Sec. 60. [EFFECTIVE DATE.] 172.35 Sections 11 to 14 and 35 are effective the day following 172.36 final enactment. 173.1 ARTICLE 5 173.2 CHILDREN'S PROGRAMS 173.3 Section 1. Minnesota Statutes 1996, section 245.4882, 173.4 subdivision 5, is amended to read: 173.5 Subd. 5. [SPECIALIZED RESIDENTIAL TREATMENT SERVICES.] The 173.6 commissioner of human services shall continue efforts to further 173.7 interagency collaboration to develop a comprehensive system of 173.8 services, including family community support and specialized 173.9 residential treatment services for children. The services shall 173.10 be designed for children with emotional disturbance who exhibit 173.11 violent or destructive behavior and for whom local treatment 173.12 services are not feasible due to the small number of children 173.13 statewide who need the services and the specialized nature of 173.14 the services required. The services shall be located in 173.15 community settings.If no appropriate services are available in173.16Minnesota or within the geographical area in which the residents173.17of the county normally do business, the commissioner is173.18responsible, effective July 1, 1997, for 50 percent of the173.19nonfederal costs of out-of-state treatment of children for whom173.20no appropriate resources are available in Minnesota. Counties173.21are eligible to receive enhanced state funding under this173.22section only if they have established juvenile screening teams173.23under section 260.151, subdivision 3, and if the out-of-state173.24treatment has been approved by the commissioner. By January 1,173.251995, the commissioners of human services and corrections shall173.26jointly develop a plan, including a financing strategy, for173.27increasing the in-state availability of treatment within a173.28secure setting. By July 1, 1994, the commissioner of human173.29services shall also:173.30(1) conduct a study and develop a plan to meet the needs of173.31children with both a developmental disability and severe173.32emotional disturbance; and173.33(2) study the feasibility of expanding medical assistance173.34coverage to include specialized residential treatment for the173.35children described in this subdivision.173.36 Sec. 2. Minnesota Statutes 1996, section 245.493, 174.1 subdivision 1, is amended to read: 174.2 Subdivision 1. [REQUIREMENTS TO QUALIFY AS A LOCAL 174.3 CHILDREN'S MENTAL HEALTH COLLABORATIVE.] In order to qualify as 174.4 a local children's mental health collaborative and be eligible 174.5 to receive start-up funds, the representatives of the local 174.6 system of care, including entities provided under section 174.7 245.4875, subdivision 6, and nongovernmental entities such as 174.8 parents of children in the target population; parent and 174.9 consumer organizations; community, civic, and religious 174.10 organizations; private and nonprofit mental and physical health 174.11 care providers; culturally specific organizations; local 174.12 foundations; and businesses, or at a minimum one county, one 174.13 school district or special education cooperative,andone mental 174.14 health entity, and, by July 1, 1998, one juvenile justice or 174.15 corrections entity, must agree to the following: 174.16 (1) to establish a local children's mental health 174.17 collaborative and develop an integrated service system; and 174.18 (2) to commit resources to providing services through the 174.19 local children's mental health collaborative. 174.20 Sec. 3. Minnesota Statutes 1996, section 245.493, is 174.21 amended by adding a subdivision to read: 174.22 Subd. 1a. [DUTIES OF CERTAIN COORDINATING BODIES.] By 174.23 mutual agreement of the collaborative and a coordinating body 174.24 listed in this subdivision, a children's mental health 174.25 collaborative or a collaborative established by the merger of a 174.26 children's mental health collaborative and a family services 174.27 collaborative under section 121.8355, may assume the duties of a 174.28 community transition interagency committee established under 174.29 section 120.17, subdivision 16; an interagency early 174.30 intervention committee established under 120.1701, subdivision 174.31 5; a local advisory council established under section 245.4875, 174.32 subdivision 5; or a local coordinating council established under 174.33 section 245.4875, subdivision 6. 174.34 Sec. 4. Minnesota Statutes 1996, section 256.01, 174.35 subdivision 2, is amended to read: 174.36 Subd. 2. [SPECIFIC POWERS.] Subject to the provisions of 175.1 section 241.021, subdivision 2, the commissioner of human 175.2 services shall: 175.3 (1) Administer and supervise all forms of public assistance 175.4 provided for by state law and other welfare activities or 175.5 services as are vested in the commissioner. Administration and 175.6 supervision of human services activities or services includes, 175.7 but is not limited to, assuring timely and accurate distribution 175.8 of benefits, completeness of service, and quality program 175.9 management. In addition to administering and supervising human 175.10 services activities vested by law in the department, the 175.11 commissioner shall have the authority to: 175.12 (a) require county agency participation in training and 175.13 technical assistance programs to promote compliance with 175.14 statutes, rules, federal laws, regulations, and policies 175.15 governing human services; 175.16 (b) monitor, on an ongoing basis, the performance of county 175.17 agencies in the operation and administration of human services, 175.18 enforce compliance with statutes, rules, federal laws, 175.19 regulations, and policies governing welfare services and promote 175.20 excellence of administration and program operation; 175.21 (c) develop a quality control program or other monitoring 175.22 program to review county performance and accuracy of benefit 175.23 determinations; 175.24 (d) require county agencies to make an adjustment to the 175.25 public assistance benefits issued to any individual consistent 175.26 with federal law and regulation and state law and rule and to 175.27 issue or recover benefits as appropriate; 175.28 (e) delay or deny payment of all or part of the state and 175.29 federal share of benefits and administrative reimbursement 175.30 according to the procedures set forth in section 256.017; and 175.31 (f) make contracts with and grants to public and private 175.32 agencies and organizations, both profit and nonprofit, and 175.33 individuals, using appropriated funds. 175.34 (2) Inform county agencies, on a timely basis, of changes 175.35 in statute, rule, federal law, regulation, and policy necessary 175.36 to county agency administration of the programs. 176.1 (3) Administer and supervise all child welfare activities; 176.2 promote the enforcement of laws protecting handicapped, 176.3 dependent, neglected and delinquent children, and children born 176.4 to mothers who were not married to the children's fathers at the 176.5 times of the conception nor at the births of the children; 176.6 license and supervise child-caring and child-placing agencies 176.7 and institutions; supervise the care of children in boarding and 176.8 foster homes or in private institutions; and generally perform 176.9 all functions relating to the field of child welfare now vested 176.10 in the state board of control. 176.11 (4) Administer and supervise all noninstitutional service 176.12 to handicapped persons, including those who are visually 176.13 impaired, hearing impaired, or physically impaired or otherwise 176.14 handicapped. The commissioner may provide and contract for the 176.15 care and treatment of qualified indigent children in facilities 176.16 other than those located and available at state hospitals when 176.17 it is not feasible to provide the service in state hospitals. 176.18 (5) Assist and actively cooperate with other departments, 176.19 agencies and institutions, local, state, and federal, by 176.20 performing services in conformity with the purposes of Laws 176.21 1939, chapter 431. 176.22 (6) Act as the agent of and cooperate with the federal 176.23 government in matters of mutual concern relative to and in 176.24 conformity with the provisions of Laws 1939, chapter 431, 176.25 including the administration of any federal funds granted to the 176.26 state to aid in the performance of any functions of the 176.27 commissioner as specified in Laws 1939, chapter 431, and 176.28 including the promulgation of rules making uniformly available 176.29 medical care benefits to all recipients of public assistance, at 176.30 such times as the federal government increases its participation 176.31 in assistance expenditures for medical care to recipients of 176.32 public assistance, the cost thereof to be borne in the same 176.33 proportion as are grants of aid to said recipients. 176.34 (7) Establish and maintain any administrative units 176.35 reasonably necessary for the performance of administrative 176.36 functions common to all divisions of the department. 177.1 (8) Act as designated guardian of both the estate and the 177.2 person of all the wards of the state of Minnesota, whether by 177.3 operation of law or by an order of court, without any further 177.4 act or proceeding whatever, except as to persons committed as 177.5 mentally retarded. For children under the guardianship of the 177.6 commissioner whose interests would be best served by adoptive 177.7 placement, the commissioner may contract with a licensed 177.8 child-placing agency to provide adoption services. A contract 177.9 with a licensed child-placing agency must be designed to 177.10 supplement existing county efforts, and shall not replace 177.11 existing county programs, unless the replacement is agreed to by 177.12 the county board after consultation with the appropriate 177.13 exclusive bargaining representative, or the commissioner has 177.14 evidence that the county's rate of placing these children 177.15 continues to be substantially below that of other counties. 177.16 (9) Act as coordinating referral and informational center 177.17 on requests for service for newly arrived immigrants coming to 177.18 Minnesota. 177.19 (10) The specific enumeration of powers and duties as 177.20 hereinabove set forth shall in no way be construed to be a 177.21 limitation upon the general transfer of powers herein contained. 177.22 (11) Establish county, regional, or statewide schedules of 177.23 maximum fees and charges which may be paid by county agencies 177.24 for medical, dental, surgical, hospital, nursing and nursing 177.25 home care and medicine and medical supplies under all programs 177.26 of medical care provided by the state and for congregate living 177.27 care under the income maintenance programs. 177.28 (12) Have the authority to conduct and administer 177.29 experimental projects to test methods and procedures of 177.30 administering assistance and services to recipients or potential 177.31 recipients of public welfare. To carry out such experimental 177.32 projects, it is further provided that the commissioner of human 177.33 services is authorized to waive the enforcement of existing 177.34 specific statutory program requirements, rules, and standards in 177.35 one or more counties. The order establishing the waiver shall 177.36 provide alternative methods and procedures of administration, 178.1 shall not be in conflict with the basic purposes, coverage, or 178.2 benefits provided by law, and in no event shall the duration of 178.3 a project exceed four years. It is further provided that no 178.4 order establishing an experimental project as authorized by the 178.5 provisions of this section shall become effective until the 178.6 following conditions have been met: 178.7 (a) The proposed comprehensive plan, including estimated 178.8 project costs and the proposed order establishing the waiver, 178.9 shall be filed with the secretary of the senate and chief clerk 178.10 of the house of representatives at least 60 days prior to its 178.11 effective date. 178.12 (b) The secretary of health, education, and welfare of the 178.13 United States has agreed, for the same project, to waive state 178.14 plan requirements relative to statewide uniformity. 178.15 (c) A comprehensive plan, including estimated project 178.16 costs, shall be approved by the legislative advisory commission 178.17 and filed with the commissioner of administration. 178.18 (13) In accordance with federal requirements, establish 178.19 procedures to be followed by local welfare boards in creating 178.20 citizen advisory committees, including procedures for selection 178.21 of committee members. 178.22 (14) Allocate federal fiscal disallowances or sanctions 178.23 which are based on quality control error rates for the aid to 178.24 families with dependent children, medical assistance, or food 178.25 stamp program in the following manner: 178.26 (a) One-half of the total amount of the disallowance shall 178.27 be borne by the county boards responsible for administering the 178.28 programs. For the medical assistance and AFDC programs, 178.29 disallowances shall be shared by each county board in the same 178.30 proportion as that county's expenditures for the sanctioned 178.31 program are to the total of all counties' expenditures for the 178.32 AFDC and medical assistance programs. For the food stamp 178.33 program, sanctions shall be shared by each county board, with 50 178.34 percent of the sanction being distributed to each county in the 178.35 same proportion as that county's administrative costs for food 178.36 stamps are to the total of all food stamp administrative costs 179.1 for all counties, and 50 percent of the sanctions being 179.2 distributed to each county in the same proportion as that 179.3 county's value of food stamp benefits issued are to the total of 179.4 all benefits issued for all counties. Each county shall pay its 179.5 share of the disallowance to the state of Minnesota. When a 179.6 county fails to pay the amount due hereunder, the commissioner 179.7 may deduct the amount from reimbursement otherwise due the 179.8 county, or the attorney general, upon the request of the 179.9 commissioner, may institute civil action to recover the amount 179.10 due. 179.11 (b) Notwithstanding the provisions of paragraph (a), if the 179.12 disallowance results from knowing noncompliance by one or more 179.13 counties with a specific program instruction, and that knowing 179.14 noncompliance is a matter of official county board record, the 179.15 commissioner may require payment or recover from the county or 179.16 counties, in the manner prescribed in paragraph (a), an amount 179.17 equal to the portion of the total disallowance which resulted 179.18 from the noncompliance, and may distribute the balance of the 179.19 disallowance according to paragraph (a). 179.20 (15) Develop and implement special projects that maximize 179.21 reimbursements and result in the recovery of money to the 179.22 state. For the purpose of recovering state money, the 179.23 commissioner may enter into contracts with third parties. Any 179.24 recoveries that result from projects or contracts entered into 179.25 under this paragraph shall be deposited in the state treasury 179.26 and credited to a special account until the balance in the 179.27 account reaches $1,000,000. When the balance in the account 179.28 exceeds $1,000,000, the excess shall be transferred and credited 179.29 to the general fund. All money in the account is appropriated 179.30 to the commissioner for the purposes of this paragraph. 179.31 (16) Have the authority to make direct payments to 179.32 facilities providing shelter to women and their children 179.33 pursuant to section 256D.05, subdivision 3. Upon the written 179.34 request of a shelter facility that has been denied payments 179.35 under section 256D.05, subdivision 3, the commissioner shall 179.36 review all relevant evidence and make a determination within 30 180.1 days of the request for review regarding issuance of direct 180.2 payments to the shelter facility. Failure to act within 30 days 180.3 shall be considered a determination not to issue direct payments. 180.4 (17) Have the authority to establish and enforce the 180.5 following county reporting requirements: 180.6 (a) The commissioner shall establish fiscal and statistical 180.7 reporting requirements necessary to account for the expenditure 180.8 of funds allocated to counties for human services programs. 180.9 When establishing financial and statistical reporting 180.10 requirements, the commissioner shall evaluate all reports, in 180.11 consultation with the counties, to determine if the reports can 180.12 be simplified or the number of reports can be reduced. 180.13 (b) The county board shall submit monthly or quarterly 180.14 reports to the department as required by the commissioner. 180.15 Monthly reports are due no later than 15 working days after the 180.16 end of the month. Quarterly reports are due no later than 30 180.17 calendar days after the end of the quarter, unless the 180.18 commissioner determines that the deadline must be shortened to 180.19 20 calendar days to avoid jeopardizing compliance with federal 180.20 deadlines or risking a loss of federal funding. Only reports 180.21 that are complete, legible, and in the required format shall be 180.22 accepted by the commissioner. 180.23 (c) If the required reports are not received by the 180.24 deadlines established in clause (b), the commissioner may delay 180.25 payments and withhold funds from the county board until the next 180.26 reporting period. When the report is needed to account for the 180.27 use of federal funds and the late report results in a reduction 180.28 in federal funding, the commissioner shall withhold from the 180.29 county boards with late reports an amount equal to the reduction 180.30 in federal funding until full federal funding is received. 180.31 (d) A county board that submits reports that are late, 180.32 illegible, incomplete, or not in the required format for two out 180.33 of three consecutive reporting periods is considered 180.34 noncompliant. When a county board is found to be noncompliant, 180.35 the commissioner shall notify the county board of the reason the 180.36 county board is considered noncompliant and request that the 181.1 county board develop a corrective action plan stating how the 181.2 county board plans to correct the problem. The corrective 181.3 action plan must be submitted to the commissioner within 45 days 181.4 after the date the county board received notice of noncompliance. 181.5 (e) The final deadline for fiscal reports or amendments to 181.6 fiscal reports is one year after the date the report was 181.7 originally due. If the commissioner does not receive a report 181.8 by the final deadline, the county board forfeits the funding 181.9 associated with the report for that reporting period and the 181.10 county board must repay any funds associated with the report 181.11 received for that reporting period. 181.12 (f) The commissioner may not delay payments, withhold 181.13 funds, or require repayment under paragraph (c) or (e) if the 181.14 county demonstrates that the commissioner failed to provide 181.15 appropriate forms, guidelines, and technical assistance to 181.16 enable the county to comply with the requirements. If the 181.17 county board disagrees with an action taken by the commissioner 181.18 under paragraph (c) or (e), the county board may appeal the 181.19 action according to sections 14.57 to 14.69. 181.20 (g) Counties subject to withholding of funds under 181.21 paragraph (c) or forfeiture or repayment of funds under 181.22 paragraph (e) shall not reduce or withhold benefits or services 181.23 to clients to cover costs incurred due to actions taken by the 181.24 commissioner under paragraph (c) or (e). 181.25 (18) Allocate federal fiscal disallowances or sanctions for 181.26 audit exceptions when federal fiscal disallowances or sanctions 181.27 are based on a statewide random sample for the foster care 181.28 program under title IV-E of the Social Security Act, United 181.29 States Code, title 42, in direct proportion to each county's 181.30 title IV-E foster care maintenance claim for that period. 181.31 Sec. 5. Minnesota Statutes 1996, section 256.01, is 181.32 amended by adding a subdivision to read: 181.33 Subd. 14. [CHILD WELFARE REFORM PILOTS.] The commissioner 181.34 of human services shall encourage local reforms in the delivery 181.35 of child welfare services and is authorized to approve local 181.36 pilot programs which focus on reforming the child protection and 182.1 child welfare systems in Minnesota. Authority to approve pilots 182.2 includes authority to waive existing state rule and statutory 182.3 requirements as needed to accomplish reform efforts. Pilot 182.4 programs must be required to address responsibility for safety 182.5 and protection of children, be time limited, and include 182.6 evaluation of the pilot program. 182.7 Sec. 6. Minnesota Statutes 1996, section 256.045, 182.8 subdivision 3, is amended to read: 182.9 Subd. 3. [STATE AGENCY HEARINGS.] (a) State agency 182.10 hearings are available for the following: (1) any person 182.11 applying for, receiving or having received public assistance or 182.12 a program of social services granted by the state agency or a 182.13 county agency under sections 252.32, 256.031 to 256.036, and 182.14 256.72 to 256.879, chapters 256B, 256D, 256E, 261, or the 182.15 federal Food Stamp Act whose application for assistance is 182.16 denied, not acted upon with reasonable promptness, or whose 182.17 assistance is suspended, reduced, terminated, or claimed to have 182.18 been incorrectly paid; (2) any patient or relative aggrieved by 182.19 an order of the commissioner under section 252.27; (3) a party 182.20 aggrieved by a ruling of a prepaid health plan; (4) any 182.21 individual or facility determined by a lead agency to have 182.22 maltreated a vulnerable adult under section 626.557 after they 182.23 have exercised their right to administrative reconsideration 182.24 under section 626.557; (5) any person whose claim for foster 182.25 care payment pursuant to a placement of the child resulting from 182.26 a child protection assessment under section 626.556 is denied or 182.27 not acted upon with reasonable promptness, regardless of funding 182.28 source; (6) any person to whom a right of appeal pursuant to 182.29 this section is given by other provision of law;or(7) an 182.30 applicant aggrieved by an adverse decision to an application for 182.31 a hardship waiver under section 256B.15; or (8) an individual or 182.32 facility determined to have maltreated a minor under section 182.33 626.556, after the individual or facility has exercised the 182.34 right to administrative reconsideration under section 626.556. 182.35 The failure to exercise the right to an administrative 182.36 reconsideration shall not be a bar to a hearing under this 183.1 section if federal law provides an individual the right to a 183.2 hearing to dispute a finding of maltreatment. Individuals and 183.3 organizations specified in this section may contest the 183.4 specified action, decision, or final disposition before the 183.5 state agency by submitting a written request for a hearing to 183.6 the state agency within 30 days after receiving written notice 183.7 of the action, decision, or final disposition, or within 90 days 183.8 of such written notice if the applicant, recipient, patient, or 183.9 relative shows good cause why the request was not submitted 183.10 within the 30-day time limit. 183.11 The hearing for an individual or facility under clause (4) 183.12 or (8) is the only administrative appeal to the finallead183.13 agencydispositiondetermination specifically, including a 183.14 challenge to the accuracy and completeness of data under section 183.15 13.04. Hearings requested under clause (4) apply only to 183.16 incidents of maltreatment that occur on or after October 1, 183.17 1995. Hearings requested by nursing assistants in nursing homes 183.18 alleged to have maltreated a resident prior to October 1, 1995, 183.19 shall be held as a contested case proceeding under the 183.20 provisions of chapter 14. Hearings requested under clause (8) 183.21 apply only to incidents of maltreatment that occur on or after 183.22 July 1, 1997. A hearing for an individual or facility under 183.23 clause (8) is only available when there is no juvenile court or 183.24 adult criminal action pending. If such action is filed in 183.25 either court while an administrative review is pending, the 183.26 administrative review must be suspended until the judicial 183.27 actions are completed. If the juvenile court action or criminal 183.28 charge is dismissed or the criminal action overturned, the 183.29 matter may be considered in an administrative hearing. 183.30 For purposes of this section, bargaining unit grievance 183.31 procedures are not an administrative appeal. 183.32 The scope of hearings involving claims to foster care 183.33 payments under clause (5) shall be limited to the issue of 183.34 whether the county is legally responsible for a child's 183.35 placement under court order or voluntary placement agreement 183.36 and, if so, the correct amount of foster care payment to be made 184.1 on the child's behalf and shall not include review of the 184.2 propriety of the county's child protection determination or 184.3 child placement decision. 184.4 (b) Except for a prepaid health plan, a vendor of medical 184.5 care as defined in section 256B.02, subdivision 7, or a vendor 184.6 under contract with a county agency to provide social services 184.7 under section 256E.08, subdivision 4, is not a party and may not 184.8 request a hearing under this section, except if assisting a 184.9 recipient as provided in subdivision 4. 184.10 (c) An applicant or recipient is not entitled to receive 184.11 social services beyond the services included in the amended 184.12 community social services plan developed under section 256E.081, 184.13 subdivision 3, if the county agency has met the requirements in 184.14 section 256E.081. 184.15 Sec. 7. Minnesota Statutes 1996, section 256.045, 184.16 subdivision 3b, is amended to read: 184.17 Subd. 3b. [STANDARD OF EVIDENCE FOR MALTREATMENT 184.18 HEARINGS.] The state human services referee shall determine that 184.19 maltreatment has occurred if a preponderance of evidence exists 184.20 to support the final disposition undersectionsections 626.556 184.21 and 626.557. 184.22 The state human services referee shall recommend an order 184.23 to the commissioner of health or human services, as applicable, 184.24 who shall issue a final order. The commissioner shall affirm, 184.25 reverse, or modify the final disposition. Any order of the 184.26 commissioner issued in accordance with this subdivision is 184.27 conclusive upon the parties unless appeal is taken in the manner 184.28 provided in subdivision 7. In any licensing appeal under 184.29 chapter 245A and sections 144.50 to 144.58 and 144A.02 to 184.30 144A.46, the commissioner'sfindingsdetermination as towhether184.31 maltreatmentoccurredis conclusive. 184.32 Sec. 8. Minnesota Statutes 1996, section 256.045, 184.33 subdivision 4, is amended to read: 184.34 Subd. 4. [CONDUCT OF HEARINGS.] (a) All hearings held 184.35 pursuant to subdivision 3, 3a, 3b, or 4a shall be conducted 184.36 according to the provisions of the federal Social Security Act 185.1 and the regulations implemented in accordance with that act to 185.2 enable this state to qualify for federal grants-in-aid, and 185.3 according to the rules and written policies of the commissioner 185.4 of human services. County agencies shall install equipment 185.5 necessary to conduct telephone hearings. A state human services 185.6 referee may schedule a telephone conference hearing when the 185.7 distance or time required to travel to the county agency offices 185.8 will cause a delay in the issuance of an order, or to promote 185.9 efficiency, or at the mutual request of the parties. Hearings 185.10 may be conducted by telephone conferences unless the applicant, 185.11 recipient, former recipient, person, or facility contesting 185.12 maltreatment objects. The hearing shall not be held earlier 185.13 than five days after filing of the required notice with the 185.14 county or state agency. The state human services referee shall 185.15 notify all interested persons of the time, date, and location of 185.16 the hearing at least five days before the date of the hearing. 185.17 Interested persons may be represented by legal counsel or other 185.18 representative of their choice, including a provider of therapy 185.19 services, at the hearing and may appear personally, testify and 185.20 offer evidence, and examine and cross-examine witnesses. The 185.21 applicant, recipient, former recipient, person, or facility 185.22 contesting maltreatment shall have the opportunity to examine 185.23 the contents of the case file and all documents and records to 185.24 be used by the county or state agency at the hearing at a 185.25 reasonable time before the date of the hearing and during the 185.26 hearing.In cases alleging discharge for maltreatment,In 185.27 hearings under subdivision 3, paragraph (b), clauses (4) and 185.28 (8), either party may subpoena the private data relating to the 185.29 investigationmemorandumprepared by theleadagency under 185.30 section 626.556 or 626.557 that is not otherwise accessible 185.31 under section 13.04, provided thenameidentity of the reporter 185.32 may not be disclosed. 185.33 (b) The private data obtained by subpoena in a hearing 185.34 under subdivision 3, paragraph (a), clause (4) or (8), must be 185.35 subject to a protective order which prohibits its disclosure for 185.36 any other purpose outside the hearing provided for in this 186.1 section without prior order of the district court. Disclosure 186.2 without court order is punishable by a sentence of not more than 186.3 90 days imprisonment or a fine of not more than $700, or both. 186.4 These restrictions on the use of private data do not prohibit 186.5 access to the data under section 13.03, subdivision 6. Except 186.6 for appeals under subdivision 3, paragraph (a), clauses (4), 186.7 (5), and (8), upon request, the county agency shall provide 186.8 reimbursement for transportation, child care, photocopying, 186.9 medical assessment, witness fee, and other necessary and 186.10 reasonable costs incurred by the applicant, recipient, or former 186.11 recipient in connection with the appeal, except in appeals186.12brought under subdivision 3b. All evidence, except that 186.13 privileged by law, commonly accepted by reasonable people in the 186.14 conduct of their affairs as having probative value with respect 186.15 to the issues shall be submitted at the hearing and such hearing 186.16 shall not be "a contested case" within the meaning of section 186.17 14.02, subdivision 3. The agency must present its evidence 186.18 prior to or at the hearing, and may not submit evidence after 186.19 the hearing except by agreement of the parties at the hearing, 186.20 provided therecipientpetitioner has the opportunity to respond. 186.21 Sec. 9. Minnesota Statutes 1996, section 256.045, 186.22 subdivision 5, is amended to read: 186.23 Subd. 5. [ORDERS OF THE COMMISSIONER OF HUMAN SERVICES.] 186.24This subdivision does not apply to appeals under subdivision186.253b.A state human services referee shall conduct a hearing on 186.26 the appeal and shall recommend an order to the commissioner of 186.27 human services. The recommended order must be based on all 186.28 relevant evidence and must not be limited to a review of the 186.29 propriety of the state or county agency's action. A referee may 186.30 take official notice of adjudicative facts. The commissioner of 186.31 human services may accept the recommended order of a state human 186.32 services referee and issue the order to the county agency and 186.33 the applicant, recipient, former recipient, or prepaid health 186.34 plan. The commissioner on refusing to accept the recommended 186.35 order of the state human services referee, shall notify the 186.36countypetitioner, the agencyand the applicant, recipient,187.1former recipient, or prepaid health plan of that fact and shall 187.2 state reasons therefor and shall allow each party ten days' time 187.3 to submit additional written argument on the matter. After the 187.4 expiration of the ten-day period, the commissioner shall issue 187.5 an order on the matter to thecountypetitioner, the agencyand187.6the applicant, recipient, former recipient, or prepaid health 187.7 plan. 187.8 A party aggrieved by an order of the commissioner may 187.9 appeal under subdivision 7, or request reconsideration by the 187.10 commissioner within 30 days after the date the commissioner 187.11 issues the order. The commissioner may reconsider an order upon 187.12 request of any party or on the commissioner's own motion. A 187.13 request for reconsideration does not stay implementation of the 187.14 commissioner's order. Upon reconsideration, the commissioner 187.15 may issue an amended order or an order affirming the original 187.16 order. 187.17 Any order of the commissioner issued under this subdivision 187.18 shall be conclusive upon the parties unless appeal is taken in 187.19 the manner provided by subdivision 7. Any order of the 187.20 commissioner is binding on the parties and must be implemented 187.21 by the state agency or a county agency until the order is 187.22 reversed by the district court, or unless the commissioner or a 187.23 district court orders monthly assistance or aid or services paid 187.24 or provided under subdivision 10. 187.25 Except for a prepaid health plan, a vendor of medical care 187.26 as defined in section 256B.02, subdivision 7, or a vendor under 187.27 contract with a county agency to provide social services under 187.28 section 256E.08, subdivision 4, is not a party and may not 187.29 request a hearing or seek judicial review of an order issued 187.30 under this section, unless assisting a recipient as provided in 187.31 subdivision 4. 187.32 Sec. 10. Minnesota Statutes 1996, section 256.045, 187.33 subdivision 8, is amended to read: 187.34 Subd. 8. [HEARING.] Any party may obtain a hearing at a 187.35 special term of the district court by serving a written notice 187.36 of the time and place of the hearing at least ten days prior to 188.1 the date of the hearing.Except for appeals under subdivision188.23b,The court may consider the matter in or out of chambers, and 188.3 shall take no new or additional evidence unless it determines 188.4 that such evidence is necessary for a more equitable disposition 188.5 of the appeal. 188.6 Sec. 11. Minnesota Statutes 1996, section 256.82, is 188.7 amended by adding a subdivision to read: 188.8 Subd. 5. [DIFFICULTY OF CARE ASSESSMENT PILOT 188.9 PROJECT.] Notwithstanding any law to the contrary, the 188.10 commissioner of human services shall conduct a two-year 188.11 statewide pilot project beginning July 1, 1997, to conduct a 188.12 difficulty of care assessment process which both assesses an 188.13 individual child's current functioning and identifies needs in a 188.14 variety of life situations. The pilot project must take into 188.15 consideration existing difficulty of care payments so that, to 188.16 the extent possible, no child for whom a difficulty of care rate 188.17 is currently established will be adversely affected. The pilot 188.18 project must include an evaluation and an interim report to the 188.19 legislature by January 15, 1999. 188.20 Sec. 12. Minnesota Statutes 1996, section 256F.11, 188.21 subdivision 2, is amended to read: 188.22 Subd. 2. [FUND DISTRIBUTION.] In distributing funds, the 188.23 commissioner shall give priority consideration to agencies and 188.24 organizations with experience in working with abused or 188.25 neglected children and their families, and with children at high 188.26 risk of abuse and neglect and their families, and serve 188.27 communities which demonstrate the greatest need for these 188.28 services. Funds shall be distributed to crisis nurseries 188.29 according to a formula developed by the commissioner in 188.30 consultation with the Minnesota crisis nursery association. 188.31 This formula shall include funding for all existing crisis 188.32 nursery programs that meet program requirements as specified in 188.33 paragraph (a), and consideration of factors reflecting the need 188.34 for services in each service area, including, but not limited 188.35 to, the number of children 18 years of age and under living in 188.36 the service area, the percent of children 18 years of age and 189.1 under living in poverty in the service area, and factors 189.2 reflecting the cost of providing services, including, but not 189.3 limited to, the number of days of service provided in the 189.4 previous year. At least 25 percent of available funds for state 189.5 fiscal year 1998 shall be set aside to accomplish any of the 189.6 following: establish new crisis nursery programs; increase 189.7 statewide availability of crisis nursery services; and enhance 189.8 or expand services at existing crisis nursery programs. 189.9 (a) The crisis nurseries must: 189.10 (1) be available 24 hours a day, seven days a week; 189.11 (2) provide services for children up to three days at any 189.12 one time; 189.13 (3) make referrals for parents to counseling services and 189.14 other community resources to help alleviate the underlying cause 189.15 of the precipitating stress or crisis; 189.16 (4) provide services without a fee for a maximum of 30 days 189.17 in any year; 189.18 (5) provide services to children from birth to 12 years of 189.19 age; 189.20 (6) provide an initial assessment and intake interview 189.21 conducted by a skilled professional who will identify the 189.22 presenting problem and make an immediate referral to an 189.23 appropriate agency or program to prevent maltreatment and 189.24 out-of-home placement of children; 189.25 (7) maintain the clients' confidentiality to the extent 189.26 required by law, and also comply with statutory reporting 189.27 requirements which may mandate a report to child protective 189.28 services; 189.29 (8) contain a volunteer component; 189.30 (9) provide preservice training and ongoing training to 189.31 providers and volunteers; 189.32 (10) evaluate the services provided by documenting use of 189.33 services, the result of family referrals made to community 189.34 resources, and how the services reduced the risk of 189.35 maltreatment; 189.36 (11) provide age appropriate programming; 190.1 (12) provide developmental assessments; 190.2 (13) provide medical assessments as determined by using a 190.3 risk screening tool; 190.4 (14) meet United States Department of Agriculture 190.5 regulations concerning meals and provide three meals a day and 190.6 three snacks during a 24-hour period; and 190.7 (15) provide appropriate sleep and nap arrangements for 190.8 children. 190.9 (b) The crisis nurseries are encouraged to provide: 190.10 (1) on-site support groups for facility model programs, or 190.11 agency sponsored parent support groups for volunteer family 190.12 model programs; 190.13 (2) parent education classes or programs that include 190.14 parent-child interaction; and 190.15 (3) opportunities for parents to volunteer, if appropriate, 190.16 to assist with child care in a supervised setting in order to 190.17 enhance their parenting skills and self-esteem, in addition to 190.18 providing them the opportunity to give something back to the 190.19 program. 190.20 (c) Parents shall retain custody of their children during 190.21 placement in a crisis facility. 190.22 The crisis nurseries are encouraged to include one or more 190.23 parents who have used the crisis nursery services on the 190.24 program's multidisciplinary advisory board. 190.25 Sec. 13. [257.85] [RELATIVE CUSTODY ASSISTANCE.] 190.26 Subdivision 1. [CITATION.] This section may be cited as 190.27 the "Relative Custody Assistance Act." 190.28 Subd. 2. [PURPOSE.] The purpose of the Relative Custody 190.29 Assistance Act is to assist relatives who provide a permanent 190.30 placement for children who have been in court-ordered foster 190.31 care by taking permanent legal and physical custody of the 190.32 child. Relative custody assistance is designed to remove 190.33 barriers to establishing custody with a relative that result 190.34 from the special needs of the child and the limited financial 190.35 resources available to the relative custodian to meet those 190.36 needs. This section establishes a system of financial support 191.1 through state and county partnership for relatives who assume 191.2 permanent legal and physical custody of a child through a 191.3 Minnesota juvenile court order entered pursuant to section 191.4 260.191, subdivision 3b, and finding: 191.5 (1) that the child cannot return to the home of the child's 191.6 parents; and 191.7 (2) that it is in the child's best interests that permanent 191.8 legal and physical custody be transferred to the relative. 191.9 Relative custody assistance is designed to determine a 191.10 supplement to the cash assistance otherwise available to the 191.11 relative custodian of a child that would raise the total amount 191.12 of assistance to the amount the child would be eligible to 191.13 receive through the adoption assistance program if an adoption 191.14 assistance agreement were entered on the child's behalf. A 191.15 percentage of the supplement so determined is then paid based 191.16 upon the income of the relative custodian's family. 191.17 Subd. 3. [SCOPE.] The provisions of this section apply to 191.18 those situations in which the legal and physical custody of a 191.19 child is established with a relative according to section 191.20 260.191, subdivision 3b, by a court order issued on or after 191.21 July 1, 1997. 191.22 Subd. 4. [DEFINITIONS.] For purposes of this section, the 191.23 terms defined in this subdivision have the meanings given them. 191.24 (a) "AFDC or MFIP standard" means the monthly standard of 191.25 need used to calculate assistance under the AFDC program, the 191.26 transitional standard used to calculate assistance under the 191.27 MFIP-S program, or, if neither of those is applicable, the 191.28 analogous transitional standard used to calculate assistance 191.29 under the MFIP or MFIP-R programs. 191.30 (b) "Local agency" means the local social service agency 191.31 with legal custody of a child prior to the transfer of permanent 191.32 legal and physical custody to a relative. 191.33 (c) "Permanent legal and physical custody" means permanent 191.34 legal and physical custody ordered by a Minnesota juvenile court 191.35 under section 260.191, subdivision 3b. 191.36 (d) "Relative" means an individual, other than a parent, 192.1 who is related to a child by blood, marriage, or adoption. 192.2 (e) "Relative custodian" means a relative of a child for 192.3 whom the relative has permanent legal and physical custody. 192.4 (f) "Relative custody assistance agreement" means an 192.5 agreement entered into between a local agency and the relative 192.6 of a child who has been or will be awarded permanent legal and 192.7 physical custody of the child. 192.8 (g) "Relative custody assistance payment" means a monthly 192.9 cash grant made to a relative custodian pursuant to a relative 192.10 custody assistance agreement and in an amount calculated under 192.11 subdivision 8. 192.12 (h) "Remains in the physical custody of the relative 192.13 custodian" means that the relative custodian is providing 192.14 day-to-day care for the child and that the child lives with the 192.15 relative custodian; absence from the relative custodian's home 192.16 for a period of more than 120 days raises a presumption that the 192.17 child no longer remains in the physical custody of the relative 192.18 custodian. 192.19 Subd. 5. [DUTIES OF LOCAL AGENCY.] When a local agency 192.20 seeks a court order under section 260.191, subdivision 3b, to 192.21 establish permanent legal and physical custody of a child with a 192.22 relative, or if such an order is issued by the court, the local 192.23 agency shall perform the duties in this subdivision. 192.24 (a) As soon as possible after the local agency determines 192.25 that it will seek to establish permanent legal and physical 192.26 custody of the child with a relative or, if the agency did not 192.27 seek to establish custody, as soon as possible after the 192.28 issuance of the court order establishing custody, the local 192.29 agency shall inform the relative about the relative custody 192.30 assistance program, including eligibility criteria and payment 192.31 levels. Anytime prior to, but not later than seven days after, 192.32 the date the court issues the order establishing permanent legal 192.33 and physical custody of the child with a relative, the local 192.34 agency shall determine whether the eligibility criteria in 192.35 subdivision 7 are met to allow the relative to receive relative 192.36 custody assistance. Not later than seven days after determining 193.1 whether the eligibility criteria are met, the local agency shall 193.2 inform the relative custodian of its determination and of the 193.3 process for appealing that determination under subdivision 10. 193.4 (b) If the local agency determines that the relative 193.5 custodian is eligible to receive relative custody assistance, 193.6 the local agency shall prepare the relative custody assistance 193.7 agreement and ensure that it meets the requirements of 193.8 subdivision 6. 193.9 (c) The local agency shall make monthly payments to the 193.10 relative as set forth in the relative custody assistance 193.11 agreement. On a quarterly basis and on a form to be provided by 193.12 the commissioner, the local agency shall make claims for 193.13 reimbursement from the commissioner for relative custody 193.14 assistance payments made. 193.15 (d) For a relative custody assistance agreement that is in 193.16 place for longer than one year, and as long as the agreement 193.17 remains in effect, the local agency shall send an annual 193.18 affidavit form to the relative custodian of the eligible child 193.19 within the month before the anniversary date of the agreement. 193.20 The local agency shall monitor whether the annual affidavit is 193.21 returned by the relative custodian within 30 days following the 193.22 anniversary date of the agreement. The local agency shall 193.23 review the affidavit and any other information in its possession 193.24 to ensure continuing eligibility for relative custody assistance 193.25 and that the amount of payment made according to the agreement 193.26 is correct. 193.27 (e) When the local agency determines that a relative 193.28 custody assistance agreement should be terminated or modified, 193.29 it shall provide notice of the proposed termination or 193.30 modification to the relative custodian at least ten days before 193.31 the proposed action along with information about the process for 193.32 appealing the proposed action. 193.33 Subd. 6. [RELATIVE CUSTODY ASSISTANCE AGREEMENT.] (a) A 193.34 relative custody assistance agreement will not be effective, 193.35 unless it is signed by the local agency and the relative 193.36 custodian no later than 30 days after the date of the order 194.1 establishing permanent legal and physical custody with the 194.2 relative, except that a local agency may enter into a relative 194.3 custody assistance agreement with a relative custodian more than 194.4 30 days after the date of the order if it certifies that the 194.5 delay in entering the agreement was through no fault of the 194.6 relative custodian. There must be a separate agreement for each 194.7 child for whom the relative custodian is receiving relative 194.8 custody assistance. 194.9 (b) Regardless of when the relative custody assistance 194.10 agreement is signed by the local agency and relative custodian, 194.11 the effective date of the agreement shall be the first day of 194.12 the month following the date of the order establishing permanent 194.13 legal and physical custody or the date that the last party signs 194.14 the agreement, whichever occurs later. 194.15 (c) If MFIP-S is not the applicable program for a child at 194.16 the time that a relative custody assistance agreement is entered 194.17 on behalf of the child, when MFIP-S becomes the applicable 194.18 program, if the relative custodian had been receiving custody 194.19 assistance payments calculated based upon a different program, 194.20 the amount of relative custody assistance payment under 194.21 subdivision 8 shall be recalculated under the MFIP-S program. 194.22 (d) The relative custody assistance agreement shall be in a 194.23 form specified by the commissioner and shall include provisions 194.24 relating to the following: 194.25 (1) the responsibilities of all parties to the agreement; 194.26 (2) the payment terms, including the financial 194.27 circumstances of the relative custodian, the needs of the child, 194.28 the amount and calculation of the relative custody assistance 194.29 payments, and that the amount of the payments shall be 194.30 reevaluated annually; 194.31 (3) the effective date of the agreement, which shall also 194.32 be the anniversary date for the purpose of submitting the annual 194.33 affidavit under subdivision 9; 194.34 (4) that failure to submit the affidavit as required by 194.35 subdivision 9 will be grounds for terminating the agreement; 194.36 (5) the agreement's expected duration, which shall not 195.1 extend beyond the child's eighteenth birthday; 195.2 (6) any specific known circumstances that could cause the 195.3 agreement or payments to be modified, reduced, or terminated and 195.4 the relative custodian's appeal rights under subdivision 10; 195.5 (7) that the relative custodian must notify the local 195.6 agency within 30 days of any of the following: 195.7 (i) a change in the child's status; 195.8 (ii) a change in the relationship between the relative 195.9 custodian and the child; 195.10 (iii) a change in composition or level of income of the 195.11 relative custodian's family; 195.12 (iv) a change in eligibility or receipt of benefits under 195.13 AFDC, MFIP-S, or other assistance program; and 195.14 (v) any other change that could effect eligibility for or 195.15 amount of relative custody assistance; 195.16 (8) that failure to provide notice of a change as required 195.17 by clause (7) will be grounds for terminating the agreement; 195.18 (9) that the amount of relative custody assistance is 195.19 subject to the availability of state funds to reimburse the 195.20 local agency making the payments; 195.21 (10) that the relative custodian may choose to temporarily 195.22 stop receiving payments under the agreement at any time by 195.23 providing 30 days' notice to the local agency and may choose to 195.24 begin receiving payments again by providing the same notice but 195.25 any payments the relative custodian chooses not to receive are 195.26 forfeit; and 195.27 (11) that the local agency will continue to be responsible 195.28 for making relative custody assistance payments under the 195.29 agreement regardless of the relative custodian's place of 195.30 residence. 195.31 Subd. 7. [ELIGIBILITY CRITERIA.] A local agency shall 195.32 enter into a relative custody assistance agreement under 195.33 subdivision 6 if it certifies that the following criteria are 195.34 met: 195.35 (1) the juvenile court has determined or is expected to 195.36 determine that the child, under the former or current custody of 196.1 the local agency, cannot return to the home of the child's 196.2 parents; 196.3 (2) the court, upon determining that it is in the child's 196.4 best interests, has issued or is expected to issue an order 196.5 transferring permanent legal and physical custody of the child 196.6 to the relative; and 196.7 (3) the child either: 196.8 (i) is a member of a sibling group to be placed together; 196.9 or 196.10 (ii) has a physical, mental, emotional, or behavioral 196.11 disability that will require financial support. 196.12 When the local agency bases its certification that the 196.13 criteria in clause (1) or (2) are met upon the expectation that 196.14 the juvenile court will take a certain action, the relative 196.15 custody assistance agreement does not become effective until and 196.16 unless the court acts as expected. 196.17 Subd. 8. [AMOUNT OF RELATIVE CUSTODY ASSISTANCE 196.18 PAYMENTS.] (a) The amount of a monthly relative custody 196.19 assistance payment shall be determined according to the 196.20 provisions of this paragraph. 196.21 (1) The total maximum assistance rate is equal to the base 196.22 assistance rate plus, if applicable, the supplemental assistance 196.23 rate. 196.24 (i) The base assistance rate is equal to the maximum amount 196.25 that could be received as basic maintenance for a child of the 196.26 same age under the adoption assistance program. 196.27 (ii) The local agency shall determine whether the child has 196.28 physical, mental, emotional, or behavioral disabilities that 196.29 require care, supervision, or structure beyond that ordinarily 196.30 provided in a family setting to children of the same age such 196.31 that the child would be eligible for supplemental maintenance 196.32 payments under the adoption assistance program if an adoption 196.33 assistance agreement were entered on the child's behalf. If the 196.34 local agency determines that the child has such a disability, 196.35 the supplemental assistance rate shall be the maximum amount of 196.36 monthly supplemental maintenance payment that could be received 197.1 on behalf of a child of the same age, disabilities, and 197.2 circumstances under the adoption assistance program. 197.3 (2) The net maximum assistance rate is equal to the total 197.4 maximum assistance rate from clause (1) less the following 197.5 offsets: 197.6 (i) if the child is or will be part of an assistance unit 197.7 receiving an AFDC, MFIP-S, or other MFIP grant, the portion of 197.8 the AFDC or MFIP standard relating to the child; 197.9 (ii) Supplemental Security Income payments received by or 197.10 on behalf of the child; 197.11 (iii) veteran's benefits received by or on behalf of the 197.12 child; and 197.13 (iv) any other income of the child, including child support 197.14 payments made on behalf of the child. 197.15 (3) The relative custody assistance payment to be made to 197.16 the relative custodian shall be a percentage of the net maximum 197.17 assistance rate calculated in clause (2) based upon the gross 197.18 income of the relative custodian's family, including the child 197.19 for whom the relative has permanent legal and physical custody. 197.20 In no case shall the amount of the relative custody assistance 197.21 payment exceed that which the child could qualify for under the 197.22 adoption assistance program if an adoption assistance agreement 197.23 were entered on the child's behalf. The relative custody 197.24 assistance payment shall be calculated as follows: 197.25 (i) if the relative custodian's gross family income is less 197.26 than or equal to 200 percent of federal poverty guidelines, the 197.27 relative custody assistance payment shall be the full amount of 197.28 the net maximum assistance rate; 197.29 (ii) if the relative custodian's gross family income is 197.30 greater than 200 percent and less than or equal to 225 percent 197.31 of federal poverty guidelines, the relative custody assistance 197.32 payment shall be 80 percent of the net maximum assistance rate; 197.33 (iii) if the relative custodian's gross family income is 197.34 greater than 225 percent and less than or equal to 250 percent 197.35 of federal poverty guidelines, the relative custody assistance 197.36 payment shall be 60 percent of the net maximum assistance rate; 198.1 (iv) if the relative custodian's gross family income is 198.2 greater than 250 percent and less than or equal to 275 percent 198.3 of federal poverty guidelines, the relative custody assistance 198.4 payment shall be 40 percent of the net maximum assistance rate; 198.5 (v) if the relative custodian's gross family income is 198.6 greater than 275 percent and less than or equal to 300 percent 198.7 of federal poverty guidelines, the relative custody assistance 198.8 payment shall be 20 percent of the net maximum assistance rate; 198.9 or 198.10 (vi) if the relative custodian's gross family income is 198.11 greater than 300 percent of federal poverty guidelines, no 198.12 relative custody assistance payment shall be made. 198.13 (b) This paragraph sets forth the provisions pertaining to 198.14 the relationship between relative custody assistance and AFDC, 198.15 MFIP-S, or other MFIP programs: 198.16 (1) the relative custodian of a child for whom the relative 198.17 is receiving relative custody assistance is expected to seek 198.18 whatever assistance is available for the child through the AFDC, 198.19 MFIP-S, or other MFIP programs. If a relative custodian fails 198.20 to apply for assistance through AFDC, MFIP-S, or other MFIP 198.21 program for which the child is eligible, the child's portion of 198.22 the AFDC or MFIP standard will be calculated as if application 198.23 had been made and assistance received; 198.24 (2) the portion of the AFDC or MFIP standard relating to 198.25 each child for whom relative custody assistance is being 198.26 received shall be calculated as follows: 198.27 (i) determine the total AFDC or MFIP standard for the 198.28 assistance unit; 198.29 (ii) determine the amount that the AFDC or MFIP standard 198.30 would have been if the assistance unit had not included the 198.31 children for whom relative custody assistance is being received; 198.32 (iii) subtract the amount determined in item (ii) from the 198.33 amount determined in item (i); and 198.34 (iv) divide the result in item (iii) by the number of 198.35 children for whom relative custody assistance is being received 198.36 that are part of the assistance unit; or 199.1 (3) if a child for whom relative custody assistance is 199.2 being received is not eligible for assistance through the AFDC, 199.3 MFIP-S, or other MFIP programs, the portion of AFDC or MFIP 199.4 standard relating to that child shall be equal to zero. 199.5 Subd. 9. [ANNUAL AFFIDAVIT.] When a relative custody 199.6 assistance agreement remains in effect for more than one year, 199.7 the local agency shall require the relative custodian to 199.8 annually submit an affidavit in a form to be specified by the 199.9 commissioner. The affidavit must be submitted to the local 199.10 agency each year no later than 30 days after the relative 199.11 custody assistance agreement's anniversary date. The affidavit 199.12 shall document the following: 199.13 (1) that the child remains in the physical custody of the 199.14 relative custodian; 199.15 (2) that there is a continuing need for the relative 199.16 custody assistance payments due to the child's physical, mental, 199.17 emotional, or behavioral needs; and 199.18 (3) the current gross income of the relative custodian's 199.19 family. 199.20 The relative custody assistance agreement may be modified 199.21 based on information or documentation presented to the local 199.22 agency under this requirement and as required by annual 199.23 adjustments to the federal poverty guidelines. 199.24 Subd. 10. [RIGHT OF APPEAL.] A relative custodian who 199.25 enters into a relative custody assistance agreement with a local 199.26 agency has the right to appeal to the commissioner under section 199.27 256.045 when the local agency establishes, denies, terminates, 199.28 or modifies the agreement. Upon appeal, the commissioner may 199.29 review only: 199.30 (1) whether the local agency has met the legal requirements 199.31 imposed by this chapter for establishing, denying, terminating, 199.32 or modifying the agreement; 199.33 (2) whether the amount of the relative custody assistance 199.34 payment was correctly calculated under the method in subdivision 199.35 8; 199.36 (3) whether the local agency paid for correct time periods 200.1 under the relative custody assistance agreement; 200.2 (4) whether the child remains in the physical custody of 200.3 the relative custodian; 200.4 (5) whether the local agency correctly calculated the 200.5 amount of the supplemental assistance rate based on a change in 200.6 the child's physical, mental, emotional, or behavioral needs, 200.7 the relative custodian's failure to document the continuing need 200.8 for the supplemental assistance rate after the local agency has 200.9 requested such documentation; and 200.10 (6) whether the local agency correctly calculated or 200.11 terminated the amount of relative custody assistance based on 200.12 the relative custodian's failure to provide documentation of the 200.13 gross income of the relative custodian's family after the local 200.14 agency has requested such documentation. 200.15 Subd. 11. [CHILD'S COUNTY OF RESIDENCE.] For the purposes 200.16 of the Unitary Residency Act, time spent by a child in the 200.17 custody of a relative custodian receiving payments under this 200.18 section is not excluded time. A child is a resident of the 200.19 county where the relative custodian is a resident. 200.20 Subd. 12. [FINANCIAL CONSIDERATIONS.] (a) Payment of 200.21 relative custody assistance pursuant to a relative custody 200.22 assistance agreement is subject to the availability of state 200.23 funds and payments may be reduced or suspended on order of the 200.24 commissioner if insufficient funds are available. 200.25 (b) Upon receipt from a local agency of a claim for 200.26 reimbursement, the commissioner shall reimburse the local agency 200.27 in an amount equal to 100 percent of the relative custody 200.28 assistance payments provided to relative custodians. The local 200.29 agency may not seek and the commissioner shall not provide 200.30 reimbursement for the administrative costs associated with 200.31 performing the duties in subdivision 5. 200.32 (c) For the purposes of determining eligibility or payment 200.33 amounts under the AFDC, MFIP-S, and other MFIP programs, 200.34 relative custody assistance payments shall be considered 200.35 excluded income. 200.36 Sec. 14. Minnesota Statutes 1996, section 393.07, 201.1 subdivision 2, is amended to read: 201.2 Subd. 2. [ADMINISTRATION OF PUBLIC WELFARE.] The local 201.3 social services agency, subject to the supervision of the 201.4 commissioner of human services, shall administer all forms of 201.5 public welfare, both for children and adults, responsibility for 201.6 which now or hereafter may be imposed on the commissioner of 201.7 human services by law, including general assistance, aid to 201.8 dependent children, county supplementation, if any, or state aid 201.9 to recipients of supplemental security income for aged, blind 201.10 and disabled, child welfare services, mental health services, 201.11 and other public assistance or public welfare services, provided 201.12 that the local social services agency shall not employ public 201.13 health nursing or home health service personnel other than 201.14 homemaker-home help aides, but shall contract for or purchase 201.15 the necessary services from existing community agencies. The 201.16 duties of the local social services agency shall be performed in 201.17 accordance with the standards and rules which may be promulgated 201.18 by the commissioner of human services to achieve the purposes 201.19 intended by law and in order to comply with the requirements of 201.20 the federal Social Security Act in respect to public assistance 201.21 and child welfare services, so that the state may qualify for 201.22 grants-in-aid available under that act. To avoid administrative 201.23 penalties under section 256.017, the local social services 201.24 agency must comply with (1) policies established by state law 201.25 and (2) instructions from the commissioner relating (i) to 201.26 public assistance program policies consistent with federal law 201.27 and regulation and state law and rule and (ii) to local agency 201.28 program operations. The commissioner may enforce local social 201.29 services agency compliance with the instructions, and may delay, 201.30 withhold, or deny payment of all or part of the state and 201.31 federal share of benefits and federal administrative 201.32 reimbursement, according to the provisions under section 201.33 256.017. The local social services agency shall supervise wards 201.34 of the commissioner and, when so designated, act as agent of the 201.35 commissioner of human services in the placement of the 201.36 commissioner's wards in adoptive homes or in other foster care 202.1 facilities. The local social services agency shall cooperate as 202.2 needed when the commissioner contracts with a licensed child 202.3 placement agency for adoption services for a child under the 202.4 commissioner's guardianship. The local social services agency 202.5 may contract with a bank or other financial institution to 202.6 provide services associated with the processing of public 202.7 assistance checks and pay a service fee for these services, 202.8 provided the fee charged does not exceed the fee charged to 202.9 other customers of the institution for similar services. 202.10 Sec. 15. Minnesota Statutes 1996, section 466.01, 202.11 subdivision 1, is amended to read: 202.12 Subdivision 1. [MUNICIPALITY.] For the purposes of 202.13 sections 466.01 to 466.15, "municipality" means any city, 202.14 whether organized under home rule charter or otherwise, any 202.15 county, town, public authority, public corporation, nonprofit 202.16 firefighting corporation that has associated with it a relief 202.17 association as defined in section 424A.001, subdivision 4, 202.18 special district, school district, however organized, county 202.19 agricultural society organized pursuant to chapter 38, joint 202.20 powers board or organization created under section 471.59 or 202.21 other statute, public library, regional public library system, 202.22 multicounty multitype library system, family services 202.23 collaborative established under section 121.8355, children's 202.24 mental health collaboratives established under sections 245.491 202.25 to 245.496, or a collaborative established by the merger of a 202.26 children's mental health collaborative and a family services 202.27 collaborative, other political subdivision, or community action 202.28 agency. 202.29 Sec. 16. Minnesota Statutes 1996, section 471.59, 202.30 subdivision 11, is amended to read: 202.31 Subd. 11. [JOINT POWERS BOARD.] (a) Two or more 202.32 governmental units, through action of their governing bodies, by 202.33 adoption of a joint powers agreement that complies with the 202.34 provisions of subdivisions 1 to 5, may establish a joint board 202.35 to issue bonds or obligations under any law by which any of the 202.36 governmental units establishing the joint board may 203.1 independently issue bonds or obligations and may use the 203.2 proceeds of the bonds or obligations to carry out the purposes 203.3 of the law under which the bonds or obligations are issued. A 203.4 joint board established under this section may issue obligations 203.5 and other forms of indebtedness only in accordance with express 203.6 authority granted by the action of the governing bodies of the 203.7 governmental units that established the joint board. Except as 203.8 provided in paragraph (b), the joint board established under 203.9 this subdivision must be composed solely of members of the 203.10 governing bodies of the governmental unit that established the 203.11 joint board. A joint board established under this subdivision 203.12 may not pledge the full faith and credit or taxing power of any 203.13 of the governmental units that established the joint board. The 203.14 obligations or other forms of indebtedness must be obligations 203.15 of the joint board issued on behalf of the governmental units 203.16 creating the joint board. The obligations or other forms of 203.17 indebtedness must be issued in the same manner and subject to 203.18 the same conditions and limitations that would apply if the 203.19 obligations were issued or indebtedness incurred by one of the 203.20 governmental units that established the joint board, provided 203.21 that any reference to a governmental unit in the statute, law, 203.22 or charter provision authorizing the issuance of the bonds or 203.23 the incurring of the indebtedness is considered a reference to 203.24 the joint board. 203.25 (b) Notwithstanding paragraph (a), one school district, one 203.26 county, and one public health entity, through action of their 203.27 governing bodies, may establish a joint board to establish and 203.28 govern a family services collaborative under section 121.8355. 203.29 The school district, county, and public health entity may 203.30 include other governmental entities at their discretion. The 203.31 membership of a board established under this paragraph, in 203.32 addition to members of the governing bodies of the participating 203.33 governmental units, must include the representation required by 203.34 section 121.8355, subdivision 1, paragraph (a), selected in 203.35 accordance with section 121.8355, subdivision 1, paragraph (c). 203.36 (c) Notwithstanding paragraph (a), counties, school 204.1 districts, and mental health entities, through action of their 204.2 governing bodies, may establish a joint board to establish and 204.3 govern a children's mental health collaborative under sections 204.4 245.491 to 245.496, or a collaborative established by the merger 204.5 of a children's mental health collaborative and a family 204.6 services collaborative under section 121.8355. The county, 204.7 school district, and mental health entities may include other 204.8 entities at their discretion. The membership of a board 204.9 established under this paragraph, in addition to members of the 204.10 governing bodies of the participating governmental units, must 204.11 include the representation provided by section 245.493, 204.12 subdivision 1. 204.13 Sec. 17. Minnesota Statutes 1996, section 626.556, 204.14 subdivision 10b, is amended to read: 204.15 Subd. 10b. [DUTIES OF COMMISSIONER; NEGLECT OR ABUSE IN A 204.16 FACILITY.] (a) The commissioner shall immediately investigate if 204.17 the report alleges that: 204.18 (1) a child who is in the care of a facility as defined in 204.19 subdivision 2 is neglected, physically abused, or sexually 204.20 abused by an individual in that facility, or has been so 204.21 neglected or abused by an individual in that facility within the 204.22 three years preceding the report; or 204.23 (2) a child was neglected, physically abused, or sexually 204.24 abused by an individual in a facility defined in subdivision 2, 204.25 while in the care of that facility within the three years 204.26 preceding the report. 204.27 The commissioner shall arrange for the transmittal to the 204.28 commissioner of reports received by local agencies and may 204.29 delegate to a local welfare agency the duty to investigate 204.30 reports. In conducting an investigation under this section, the 204.31 commissioner has the powers and duties specified for local 204.32 welfare agencies under this section. The commissioner or local 204.33 welfare agency may interview any children who are or have been 204.34 in the care of a facility under investigation and their parents, 204.35 guardians, or legal custodians. 204.36 (b) Prior to any interview, the commissioner or local 205.1 welfare agency shall notify the parent, guardian, or legal 205.2 custodian of a child who will be interviewed in the manner 205.3 provided for in subdivision 10d, paragraph (a). If reasonable 205.4 efforts to reach the parent, guardian, or legal custodian of a 205.5 child in an out-of-home placement have failed, the child may be 205.6 interviewed if there is reason to believe the interview is 205.7 necessary to protect the child or other children in the 205.8 facility. The commissioner or local agency must provide the 205.9 information required in this subdivision to the parent, 205.10 guardian, or legal custodian of a child interviewed without 205.11 parental notification as soon as possible after the interview. 205.12 When the investigation is completed, any parent, guardian, or 205.13 legal custodian notified under this subdivision shall receive 205.14 the written memorandum provided for in subdivision 10d, 205.15 paragraph (c). 205.16 (c) In conducting investigations under this subdivision the 205.17 commissioner or local welfare agency shall obtain access to 205.18 information consistent with subdivision 10, paragraphs (h), (i), 205.19 and (j). 205.20 (d) Except for foster care and family child care, the 205.21 commissioner has the primary responsibility for the 205.22 investigations and notifications required under subdivisions 10d 205.23 and 10f for reports that allege maltreatment related to the care 205.24 provided by or in facilities licensed by the commissioner. The 205.25 commissioner may request assistance from the local social 205.26 service agency. 205.27 Sec. 18. Minnesota Statutes 1996, section 626.556, 205.28 subdivision 10d, is amended to read: 205.29 Subd. 10d. [NOTIFICATION OF NEGLECT OR ABUSE IN A 205.30 FACILITY.] (a) When a report is received that alleges neglect, 205.31 physical abuse, or sexual abuse of a child while in the care of 205.32 a facility required to be licensed pursuant tosections 245A.01205.33to 245A.16chapter 245A, the commissioner or local welfare 205.34 agency investigating the report shall provide the following 205.35 information to the parent, guardian, or legal custodian of a 205.36 child alleged to have been neglected, physically abused, or 206.1 sexually abused: the name of the facility; the fact that a 206.2 report alleging neglect, physical abuse, or sexual abuse of a 206.3 child in the facility has been received; the nature of the 206.4 alleged neglect, physical abuse, or sexual abuse; that the 206.5 agency is conducting an investigation; any protective or 206.6 corrective measures being taken pending the outcome of the 206.7 investigation; and that a written memorandum will be provided 206.8 when the investigation is completed. 206.9 (b) The commissioner or local welfare agency may also 206.10 provide the information in paragraph (a) to the parent, 206.11 guardian, or legal custodian of any other child in the facility 206.12 if the investigative agency knows or has reason to believe the 206.13 alleged neglect, physical abuse, or sexual abuse has occurred. 206.14 In determining whether to exercise this authority, the 206.15 commissioner or local welfare agency shall consider the 206.16 seriousness of the alleged neglect, physical abuse, or sexual 206.17 abuse; the number of children allegedly neglected, physically 206.18 abused, or sexually abused; the number of alleged perpetrators; 206.19 and the length of the investigation. The facility shall be 206.20 notified whenever this discretion is exercised. 206.21 (c) When the commissioner or local welfare agency has 206.22 completed its investigation, every parent, guardian, or legal 206.23 custodian notified of the investigation by the commissioner or 206.24 local welfare agency shall be provided with the following 206.25 information in a written memorandum: the name of the facility 206.26 investigated; the nature of the alleged neglect, physical abuse, 206.27 or sexual abuse; the investigator's name; a summary of the 206.28 investigation findings; a statement whether maltreatment was 206.29 found; and the protective or corrective measures that are being 206.30 or will be taken. The memorandum shall be written in a manner 206.31 that protects the identity of the reporter and the child and 206.32 shall not contain the name, or to the extent possible, reveal 206.33 the identity of the alleged perpetrator or of those interviewed 206.34 during the investigation. The commissioner or local welfare 206.35 agency shall also provide the written memorandum to the parent, 206.36 guardian, or legal custodian of each child in the facility if 207.1 maltreatment is determined to exist. 207.2 Sec. 19. Minnesota Statutes 1996, section 626.556, 207.3 subdivision 10e, is amended to read: 207.4 Subd. 10e. [DETERMINATIONS.] Upon the conclusion of every 207.5 assessment or investigation it conducts, the local welfare 207.6 agency shall make two determinations: first, whether 207.7 maltreatment has occurred; and second, whether child protective 207.8 services are needed. When maltreatment is determined in an 207.9 investigation involving a facility, the investigating agency 207.10 shall also determine whether the facility or individual was 207.11 responsible for the maltreatment using the mitigating factors in 207.12 paragraph (d). Determinations under this subdivision must be 207.13 made based on a preponderance of the evidence. 207.14 (a) For the purposes of this subdivision, "maltreatment" 207.15 means any of the following acts or omissions committed by a 207.16 person responsible for the child's care: 207.17 (1) physical abuse as defined in subdivision 2, paragraph 207.18 (d); 207.19 (2) neglect as defined in subdivision 2, paragraph (c); 207.20 (3) sexual abuse as defined in subdivision 2, paragraph 207.21 (a); or 207.22 (4) mental injury as defined in subdivision 2, paragraph 207.23 (k). 207.24 (b) For the purposes of this subdivision, a determination 207.25 that child protective services are needed means that the local 207.26 welfare agency has documented conditions during the assessment 207.27 or investigation sufficient to cause a child protection worker, 207.28 as defined in section 626.559, subdivision 1, to conclude that a 207.29 child is at significant risk of maltreatment if protective 207.30 intervention is not provided and that the individuals 207.31 responsible for the child's care have not taken or are not 207.32 likely to take actions to protect the child from maltreatment or 207.33 risk of maltreatment. 207.34 (c) This subdivision does not mean that maltreatment has 207.35 occurred solely because the child's parent, guardian, or other 207.36 person responsible for the child's care in good faith selects 208.1 and depends upon spiritual means or prayer for treatment or care 208.2 of disease or remedial care of the child, in lieu of medical 208.3 care. However, if lack of medical care may result in serious 208.4 danger to the child's health, the local welfare agency may 208.5 ensure that necessary medical services are provided to the child. 208.6 (d) When determining whether the facility or individual is 208.7 the responsible party for determined maltreatment in a facility, 208.8 the investigating agency shall consider at least the following 208.9 mitigating factors: 208.10 (1) whether the actions of the facility or the individual 208.11 caregivers were in accordance with, and followed the terms of, 208.12 an erroneous physician order, prescription, individual care 208.13 plan, or directive; however, this is not a mitigating factor 208.14 when the facility or caregiver was responsible for the issuance 208.15 of the erroneous order, prescription, individual care plan, or 208.16 directive or knew or should have known of the errors and took no 208.17 reasonable measures to correct the defect before administering 208.18 care; 208.19 (2) comparative responsibility between the facility, other 208.20 caregivers, and requirements placed upon an employee, including 208.21 the facility's compliance with related regulatory standards and 208.22 the adequacy of facility policies and procedures, facility 208.23 training, an individual's participation in the training, the 208.24 caregiver's supervision, and facility staffing levels and the 208.25 scope of the individual employee's authority and discretion; and 208.26 (3) whether the facility or individual followed 208.27 professional standards in exercising professional judgment. 208.28 Sec. 20. Minnesota Statutes 1996, section 626.556, 208.29 subdivision 10f, is amended to read: 208.30 Subd. 10f. [NOTICE OF DETERMINATIONS.] Within ten working 208.31 days of the conclusion of an assessment, the local welfare 208.32 agency shall notify the parent or guardian of the child, the 208.33 person determined to be maltreating the child, and if 208.34 applicable, the director of the facility, of the determination 208.35 and a summary of the specific reasons for the determination. 208.36 The notice must also include a certification that the 209.1 information collection procedures under subdivision 10, 209.2 paragraphs (h), (i), and (j), were followed and a notice of the 209.3 right of a data subject to obtain access to other private data 209.4 on the subject collected, created, or maintained under this 209.5 section. In addition, the notice shall include the length of 209.6 time that the records will be kept under subdivision 11c. When 209.7 there is no determination of either maltreatment or a need for 209.8 services, the notice shall also include the alleged 209.9 perpetrator's right to have the records destroyed. The 209.10 investigating agency shall notify the designee of the child who 209.11 is the subject of the report, and any person or facility 209.12 determined to have maltreated a child, of their appeal rights 209.13 under this section. 209.14 Sec. 21. Minnesota Statutes 1996, section 626.556, is 209.15 amended by adding a subdivision to read: 209.16 Subd. 10i. [ADMINISTRATIVE RECONSIDERATION OF THE FINAL 209.17 DETERMINATION OF MALTREATMENT.] (a) An individual or facility 209.18 that the commissioner or a local social service agency 209.19 determines has maltreated a child, or the child's designee, 209.20 regardless of the determination, who contests the investigating 209.21 agency's final determination regarding maltreatment, may request 209.22 the investigating agency to reconsider its final determination 209.23 regarding maltreatment. The request for reconsideration must be 209.24 submitted in writing to the investigating agency within 15 209.25 calendar days after receipt of notice of the final determination 209.26 regarding maltreatment. 209.27 (b) If the investigating agency denies the request or fails 209.28 to act upon the request within 15 calendar days after receiving 209.29 the request for reconsideration, the person or facility entitled 209.30 to a fair hearing under section 256.045 may submit to the 209.31 commissioner of human services a written request for a hearing 209.32 under that section. 209.33 (c) If, as a result of the reconsideration, the 209.34 investigating agency changes the final determination of 209.35 maltreatment, it shall notify the parties specified in 209.36 subdivisions 10b, 10d, and 10f. 210.1 Sec. 22. Minnesota Statutes 1996, section 626.556, 210.2 subdivision 11c, is amended to read: 210.3 Subd. 11c. [WELFARE, COURT SERVICES AGENCY, AND SCHOOL 210.4 RECORDS MAINTAINED.] Notwithstanding sections 138.163 and 210.5 138.17, records maintained or records derived from reports of 210.6 abuse by local welfare agencies, court services agencies, or 210.7 schools under this section shall be destroyed as provided in 210.8 paragraphs (a) to (d) by the responsible authority. 210.9 (a) If upon assessment or investigation there is no 210.10 determination of maltreatment or the need for child protective 210.11 services, the records may be maintained for a period of four 210.12 years. After the individual alleged to have maltreated a child 210.13 is notified under subdivision 10f of the determinations at the 210.14 conclusion of the assessment or investigation, upon that 210.15 individual's request, records shall be destroyed within 30 210.16 days or after the appeal rights under subdivision 10i have been 210.17 concluded, whichever is later. 210.18 (b) All records relating to reports which, upon assessment 210.19 or investigation, indicate either maltreatment or a need for 210.20 child protective services shall be maintained for at least ten 210.21 years after the date of the final entry in the case record. 210.22 (c) All records regarding a report of maltreatment, 210.23 including any notification of intent to interview which was 210.24 received by a school under subdivision 10, paragraph (d), shall 210.25 be destroyed by the school when ordered to do so by the agency 210.26 conducting the assessment or investigation. The agency shall 210.27 order the destruction of the notification when other records 210.28 relating to the report under investigation or assessment are 210.29 destroyed under this subdivision. 210.30 (d) Private or confidential data released to a court 210.31 services agency under subdivision 10h must be destroyed by the 210.32 court services agency when ordered to do so by the local welfare 210.33 agency that released the data. The local welfare agency shall 210.34 order destruction of the data when other records relating to the 210.35 assessment or investigation are destroyed under this subdivision. 210.36 Sec. 23. Minnesota Statutes 1996, section 626.558, 211.1 subdivision 1, is amended to read: 211.2 Subdivision 1. [ESTABLISHMENT OF THE TEAM.] A county shall 211.3 establish a multidisciplinary child protection team that may 211.4 include, but not be limited to, the director of the local 211.5 welfare agency or designees, the county attorney or designees, 211.6 the county sheriff or designees, representatives of health and 211.7 education, representatives of mental health or other appropriate 211.8 human service or community-based agencies, and parent groups. 211.9 As used in this section, a "community-based agency" may include, 211.10 but is not limited to, schools, social service agencies, family 211.11 service and mental health collaboratives, early childhood and 211.12 family education programs, Head Start, or other agencies serving 211.13 children and families. 211.14 Sec. 24. Minnesota Statutes 1996, section 626.558, 211.15 subdivision 2, is amended to read: 211.16 Subd. 2. [DUTIES OF TEAM.] A multidisciplinary child 211.17 protection team may provide public and professional education, 211.18 develop resources for prevention, intervention, and treatment, 211.19 and provide case consultation to the local welfare agencyto211.20better enable the agency to carry out its child protection211.21functions under section 626.556 and the community social211.22services act.or other interested community-based agencies. The 211.23 community-based agencies may request case consultation from the 211.24 multidisciplinary child protection team regarding a child or 211.25 family for whom the community-based agency is providing 211.26 services. As used in this section, "case consultation" means a 211.27 case review process in which recommendations are made concerning 211.28 services to be provided to the identified children and family. 211.29 Case consultation may be performed by a committee or 211.30 subcommittee of members representing human services, including 211.31 mental health and chemical dependency; law enforcement, 211.32 including probation and parole; the county attorney; health 211.33 care; education; community-based agencies and other necessary 211.34 agencies; and persons directly involved in an individual case as 211.35 designated by other members performing case consultation. 211.36 Sec. 25. Minnesota Statutes 1996, section 626.559, 212.1 subdivision 5, is amended to read: 212.2 Subd. 5. [TRAININGREVENUE.] The commissioner of human 212.3 services shall add the following funds to the funds appropriated 212.4 under section 626.5591, subdivision 2, to develop and support 212.5 training: 212.6 (a) The commissioner of human services shall submit claims 212.7 for federal reimbursement earned through the activities and 212.8 services supported through department of human services child 212.9 protection or child welfare training funds. Federal revenue 212.10 earned must be used to improve and expand training services by 212.11 the department. The department expenditures eligible for 212.12 federal reimbursement under this section must not be made from 212.13 federal funds or funds used to match other federal funds. 212.14 (b) Each year, the commissioner of human services shall 212.15 withhold from funds distributed to each county under Minnesota 212.16 Rules, parts 9550.0300 to 9550.0370, an amount equivalent to 1.5 212.17 percent of each county's annual Title XX allocation under 212.18 section 256E.07. The commissioner must use these funds to 212.19 ensure decentralization of training. 212.20 (c) The federal revenueearnedunder this subdivision is 212.21 available for these purposes until the funds are expended. 212.22 Sec. 26. [EVALUATION REPORT REQUIRED.] 212.23 The commissioner shall report the results of the evaluation 212.24 required under section 5 to the chairs of the house and senate 212.25 health and human services policy committees by January 1, 1999. 212.26 Sec. 27. [UNIFORM CONTRIBUTION SCHEDULE FOR OUT-OF-HOME 212.27 PLACEMENT; REPORT.] 212.28 The commissioner of human services shall prepare 212.29 recommendations and report to the 1998 legislature regarding a 212.30 uniform relative contribution schedule to reimburse costs 212.31 associated with out-of-home placement. The commissioner shall 212.32 use the child support guidelines in Minnesota Statutes, chapter 212.33 518, as the basis for the uniform contribution schedule. The 212.34 recommendations and report are due December 1, 1997. 212.35 Sec. 28. [MALTREATMENT OF MINORS ADVISORY COMMITTEE.] 212.36 The commissioner of human services, with the cooperation of 213.1 the commissioners of health and children, families, and learning 213.2 and the attorney general, shall establish an advisory committee 213.3 to review the Maltreatment of Minors Act, Minnesota Statutes, 213.4 section 626.556, to determine whether existing state policy and 213.5 procedures for protecting children who are at risk of 213.6 maltreatment in the home, school, or community are effective. 213.7 The committee shall include consumers, advocacy and 213.8 provider organizations, county practitioners and administrators, 213.9 school districts, law enforcement agencies, communities of 213.10 color, professional associations, labor organizations, office of 213.11 the ombudsman for mental health and mental retardation, and the 213.12 commissioners of health, human services, and children, families, 213.13 and learning. 213.14 In making recommendations, the advisory committee shall 213.15 review all services and protections available under existing 213.16 state and federal laws with the focus on eliminating duplication 213.17 of effort among various local, state, and federal agencies and 213.18 minimizing possible conflicts of interest by establishing a 213.19 statewide process of coordination of responsibilities. The 213.20 advisory committee shall submit a report to the legislature by 213.21 February 15, 1998, that includes a detailed plan with specific 213.22 law, rule, or administrative procedure changes to implement the 213.23 recommendations. 213.24 ARTICLE 6 213.25 CHILD SUPPORT ENFORCEMENT 213.26 Section 1. Minnesota Statutes 1996, section 13.46, 213.27 subdivision 2, is amended to read: 213.28 Subd. 2. [GENERAL.] (a) Unless the data is summary data or 213.29 a statute specifically provides a different classification, data 213.30 on individuals collected, maintained, used, or disseminated by 213.31 the welfare system is private data on individuals, and shall not 213.32 be disclosed except: 213.33 (1)pursuantaccording to section 13.05; 213.34 (2)pursuantaccording to court order; 213.35 (3)pursuantaccording to a statute specifically 213.36 authorizing access to the private data; 214.1 (4) to an agent of the welfare system, including a law 214.2 enforcement person, attorney, or investigator acting for it in 214.3 the investigation or prosecution of a criminal or civil 214.4 proceeding relating to the administration of a program; 214.5 (5) to personnel of the welfare system who require the data 214.6 to determine eligibility, amount of assistance, and the need to 214.7 provide services of additional programs to the individual; 214.8 (6) to administer federal funds or programs; 214.9 (7) between personnel of the welfare system working in the 214.10 same program; 214.11 (8) the amounts of cash public assistance and relief paid 214.12 to welfare recipients in this state, including their names, 214.13 social security numbers, income, addresses, and other data as 214.14 required, upon request by the department of revenue to 214.15 administer the property tax refund law, supplemental housing 214.16 allowance, early refund of refundable tax credits, and the 214.17 income tax. "Refundable tax credits" means the dependent care 214.18 credit under section 290.067, the Minnesota working family 214.19 credit under section 290.0671, the property tax refund under 214.20 section 290A.04, and, if the required federal waiver or waivers 214.21 are granted, the federal earned income tax credit under section 214.22 32 of the Internal Revenue Code; 214.23 (9) to the Minnesota department of economic security for 214.24 the purpose of monitoring the eligibility of the data subject 214.25 for reemployment insurance, for any employment or training 214.26 program administered, supervised, or certified by that agency, 214.27 or for the purpose of administering any rehabilitation program, 214.28 whether alone or in conjunction with the welfare system, and to 214.29 verify receipt of energy assistance for the telephone assistance 214.30 plan; 214.31 (10) to appropriate parties in connection with an emergency 214.32 if knowledge of the information is necessary to protect the 214.33 health or safety of the individual or other individuals or 214.34 persons; 214.35 (11) data maintained by residential programs as defined in 214.36 section 245A.02 may be disclosed to the protection and advocacy 215.1 system established in this statepursuantaccording to Part C of 215.2 Public Law Number 98-527 to protect the legal and human rights 215.3 of persons with mental retardation or other related conditions 215.4 who live in residential facilities for these persons if the 215.5 protection and advocacy system receives a complaint by or on 215.6 behalf of that person and the person does not have a legal 215.7 guardian or the state or a designee of the state is the legal 215.8 guardian of the person; 215.9 (12) to the county medical examiner or the county coroner 215.10 for identifying or locating relatives or friends of a deceased 215.11 person; 215.12 (13) data on a child support obligor who makes payments to 215.13 the public agency may be disclosed to the higher education 215.14 services office to the extent necessary to determine eligibility 215.15 under section 136A.121, subdivision 2, clause (5); 215.16 (14) participant social security numbers and names 215.17 collected by the telephone assistance program may be disclosed 215.18 to the department of revenue to conduct an electronic data match 215.19 with the property tax refund database to determine eligibility 215.20 under section 237.70, subdivision 4a; 215.21 (15) the current address of a recipient of aid to families 215.22 with dependent children may be disclosed to law enforcement 215.23 officers who provide the name and social security number of the 215.24 recipient and satisfactorily demonstrate that: (i) the 215.25 recipient is a fugitive felon, including the grounds for this 215.26 determination; (ii) the location or apprehension of the felon is 215.27 within the law enforcement officer's official duties; and (iii) 215.28 the request is made in writing and in the proper exercise of 215.29 those duties; 215.30 (16) the current address of a recipient of general 215.31 assistance, work readiness, or general assistance medical care 215.32 may be disclosed to probation officers and corrections agents 215.33 who are supervising the recipient, and to law enforcement 215.34 officers who are investigating the recipient in connection with 215.35 a felony level offense; 215.36 (17) information obtained from food stamp applicant or 216.1 recipient households may be disclosed to local, state, or 216.2 federal law enforcement officials, upon their written request, 216.3 for the purpose of investigating an alleged violation of the 216.4 food stamp act, in accordance with Code of Federal Regulations, 216.5 title 7, section 272.1(c); 216.6 (18) data on a child support obligor who is in arrears may 216.7 be disclosed for purposes of publishing the data pursuant to 216.8 section 518.575; 216.9 (19) data on child support payments made by a child support 216.10 obligor may be disclosed to the obligee; 216.11 (20) data in the work reporting system may be disclosed 216.12 under section 256.998, subdivision 7; 216.13 (21) to the department of children, families, and learning 216.14 for the purpose of matching department of children, families, 216.15 and learning student data with public assistance data to 216.16 determine students eligible for free and reduced price meals, 216.17 meal supplements, and free milkpursuantaccording to United 216.18 States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, 216.19 and 1773; to produce accurate numbers of students receiving aid 216.20 to families with dependent children as required by section 216.21 124.175; and to allocate federal and state funds that are 216.22 distributed based on income of the student's family;or216.23 (22) the current address and telephone number of program 216.24 recipients and emergency contacts may be released to the 216.25 commissioner of health or a local board of health as defined in 216.26 section 145A.02, subdivision 2, when the commissioner or local 216.27 board of health has reason to believe that a program recipient 216.28 is a disease case, carrier, suspect case, or at risk of illness, 216.29 and the data are necessary to locate the person.; or 216.30 (23) to other agencies, statewide systems, and political 216.31 subdivisions of this state, including the attorney general, and 216.32 agencies of other states, interstate information networks, 216.33 federal agencies, and other entities as required by federal 216.34 regulation or law for the administration of the child support 216.35 enforcement program. 216.36 (b) Information on persons who have been treated for drug 217.1 or alcohol abuse may only be disclosed in accordance with the 217.2 requirements of Code of Federal Regulations, title 42, sections 217.3 2.1 to 2.67. 217.4 (c) Data provided to law enforcement agencies under 217.5 paragraph (a), clause (15), (16), or (17), or paragraph (b), are 217.6 investigative data and are confidential or protected nonpublic 217.7 while the investigation is active. The data are private after 217.8 the investigation becomes inactive under section 13.82, 217.9 subdivision 5, paragraph (a) or (b). 217.10 (d) Mental health data shall be treated as provided in 217.11 subdivisions 7, 8, and 9, but is not subject to the access 217.12 provisions of subdivision 10, paragraph (b). 217.13 Sec. 2. Minnesota Statutes 1996, section 13.99, is amended 217.14 by adding a subdivision to read: 217.15 Subd. 101d. [CHILD SUPPORT PARTIES.] Certain data 217.16 regarding the location of parties in connection with child 217.17 support proceedings are governed by sections 256.87, subdivision 217.18 8; 257.70; and 518.005, subdivision 5. Certain data on newly 217.19 hired employees maintained by the public authority for support 217.20 enforcement are governed by section 256.998. 217.21 Sec. 3. [13B.06] [CHILD SUPPORT OR MAINTENANCE OBLIGOR 217.22 DATA MATCHES.] 217.23 Subdivision 1. [DEFINITIONS.] The definitions in this 217.24 subdivision apply to this section. 217.25 (a) "Account" means a demand deposit account, checking or 217.26 negotiable withdraw order account, savings account, time deposit 217.27 account, or money market mutual fund. 217.28 (b) "Account information" means the type of account, the 217.29 account number, whether the account is singly or jointly owned, 217.30 and, in the case of jointly owned accounts, the name and address 217.31 of the nonobligor account owner if available. 217.32 (c) "Financial institution" means any of the following that 217.33 do business within the state: 217.34 (1) federal or state commercial banks and federal or state 217.35 savings banks, including savings and loan associations and 217.36 cooperative banks; 218.1 (2) federal and state chartered credit unions; 218.2 (3) benefit associations; 218.3 (4) life insurance companies; 218.4 (5) safe deposit companies; and 218.5 (6) money market mutual funds. 218.6 (d) "Obligor" means an individual who is in arrears in 218.7 court-ordered child support or maintenance payments, or both, in 218.8 an amount equal to or greater than three times the obligor's 218.9 total monthly support and maintenance payments, irrespective of 218.10 when the arrears arose, and is not in compliance with a written 218.11 payment agreement regarding both current support and arrearages 218.12 approved by the court, an administrative law judge, or the 218.13 public authority. 218.14 (e) "Public authority" means the public authority 218.15 responsible for child support enforcement. 218.16 Subd. 2. [DATA MATCH SYSTEM ESTABLISHED.] The commissioner 218.17 of human services shall establish a process for the comparison 218.18 of account information data held by financial institutions with 218.19 the public authority's database of child support obligors. The 218.20 commissioner shall inform the financial industry of the 218.21 requirements of this section and the means by which financial 218.22 institutions can comply. The commissioner may contract for 218.23 services to carry out this section. 218.24 Subd. 3. [DUTY TO PROVIDE DATA.] On written request by a 218.25 public authority, a financial institution shall provide to the 218.26 public authority on a quarterly basis the name, address, social 218.27 security number, tax identification number if known, and all 218.28 account information for each obligor who maintains an account at 218.29 the financial institution. 218.30 Subd. 4. [METHOD TO PROVIDE DATA.] (a) To comply with the 218.31 requirements of this section, a financial institution may either: 218.32 (1) provide to the public authority a list of all account 218.33 holders for the public authority to compare against its list of 218.34 child support obligors for the purpose of identifying which 218.35 obligors maintain an account at the financial institution; or 218.36 (2) obtain a list of child support obligors from the public 219.1 authority and compare that data to the data maintained at the 219.2 financial institution to identify which of the identified 219.3 obligors maintains an account at the financial institution. 219.4 (b) A financial institution shall elect either method in 219.5 writing upon written request of the public authority, and the 219.6 election remains in effect unless the public authority agrees in 219.7 writing to a change. 219.8 (c) The commissioner shall keep track of the number of 219.9 financial institutions who are electing to report under 219.10 paragraph (a), clauses (1) and (2), respectively, and shall 219.11 report this information to the legislature by December 1, 1999. 219.12 Subd. 5. [MEANS TO PROVIDE DATA.] A financial institution 219.13 may provide the required data by submitting electronic media in 219.14 a compatible format, delivering, mailing, or telefaxing a copy 219.15 of the data, or by other means authorized by the commissioner of 219.16 human services that will result in timely reporting. 219.17 Subd. 6. [ACCESS TO DATA.] (a) With regard to account 219.18 information on all account holders provided by a financial 219.19 institution under subdivision 4, paragraph (a), clause (1), the 219.20 commissioner of human services shall retain the reported 219.21 information only until the account information is compared 219.22 against the public authority's obligor database. 219.23 Notwithstanding section 138.17, all account information that 219.24 does not pertain to an obligor listed in the public authority's 219.25 database must be immediately discarded, and no retention or 219.26 publication may be made of that data by the public authority. 219.27 All account information that does pertain to an obligor listed 219.28 in the public authority's database must be incorporated into the 219.29 public authority's database. Access to that data is governed by 219.30 chapter 13. 219.31 (b) With regard to data on obligors provided by the public 219.32 authority to a financial institution under subdivision 4, 219.33 paragraph (a), clause (2), the financial institution shall 219.34 retain the reported information only until the financial 219.35 institution's database is compared against the public 219.36 authority's database. All data that does not pertain to an 220.1 account holder at the financial institution must be immediately 220.2 discarded, and no retention or publication may be made of that 220.3 data by the financial institution. 220.4 Subd. 7. [FEES.] A financial institution may charge and 220.5 collect a fee from the public authority for providing account 220.6 information to the public authority. No financial institution 220.7 shall charge or collect a fee that exceeds its actual costs of 220.8 complying with this section. The commissioner, together with an 220.9 advisory group consisting of representatives of the financial 220.10 institutions in the state, shall determine a fee structure that 220.11 minimizes the cost to the state and reasonably meets the needs 220.12 of the financial institutions, and shall report to the chairs of 220.13 the judiciary committees in the house of representatives and the 220.14 senate by February 1, 1998, a recommended fee structure for 220.15 inclusion in this section. 220.16 Subd. 8. [FAILURE TO RESPOND TO REQUEST FOR 220.17 INFORMATION.] The public authority shall send by certified mail 220.18 a written notice of noncompliance to a financial institution 220.19 that fails to respond to a first written request for information 220.20 under this section. The notice of noncompliance must explain 220.21 the requirements of this section and advise the financial 220.22 institution of the penalty for noncompliance. A financial 220.23 institution that receives a second notice of noncompliance is 220.24 subject to a civil penalty of $1,000 for its failure to comply. 220.25 A financial institution that continues to fail to comply with 220.26 this section is subject to a civil penalty of $5,000 for the 220.27 third and each subsequent failure to comply. These penalties 220.28 may be imposed and collected by the public authority. 220.29 A financial institution that has been served with a notice 220.30 of noncompliance and incurs a second or subsequent notice of 220.31 noncompliance has the right to a contested case hearing under 220.32 chapter 14. A financial institution has 20 days from the date 220.33 of the service of the notice of noncompliance to file a request 220.34 for a contested case hearing with the commissioner. The order 220.35 of the administrative law judge constitutes the final decision 220.36 in the case. 221.1 Subd. 9. [IMMUNITY.] A financial institution that provides 221.2 or reasonably attempts to provide information to the public 221.3 authority in compliance with this section is not liable to any 221.4 person for disclosing the information or for taking any other 221.5 action in good faith as authorized by this section or section 221.6 548.092. 221.7 Subd. 10. [CIVIL ACTION FOR UNAUTHORIZED DISCLOSURE BY 221.8 FINANCIAL INSTITUTION.] (a) An account holder may bring a civil 221.9 action in district court against a financial institution for 221.10 unauthorized disclosure of data received from the public 221.11 authority under subdivision 4, paragraph (a), clause (2). A 221.12 financial institution found to have violated this subdivision 221.13 shall be liable as provided in paragraph (b) or (c). 221.14 (b) Any financial institution that willfully and 221.15 maliciously discloses data received from the public authority 221.16 under subdivision 4 is liable to that account holder in an 221.17 amount equal to the sum of: 221.18 (1) any actual damages sustained by the consumer as a 221.19 result of the disclosure; and 221.20 (2) in the case of any successful action to enforce any 221.21 liability under this section, the costs of the action taken and 221.22 reasonable attorney fees as determined by the court. 221.23 (c) Any financial institution that negligently discloses 221.24 data received from the public authority under subdivision 4 is 221.25 liable to that account holder in an amount equal to any actual 221.26 damages sustained by the account holder as a result of the 221.27 disclosure. 221.28 (d) A financial institution may not be held liable in any 221.29 action brought under this subdivision if the financial 221.30 institution shows, by a preponderance of evidence, that the 221.31 disclosure was not intentional and resulted from a bona fide 221.32 error notwithstanding the maintenance of procedures reasonably 221.33 adapted to avoid any error. 221.34 Sec. 4. [256.741] [CHILD SUPPORT AND MAINTENANCE.] 221.35 Subdivision 1. [PUBLIC ASSISTANCE.] (a) The term "public 221.36 assistance" as used in this chapter and chapters 257, 518, and 222.1 518C includes any form of cash assistance provided under Title 222.2 IV-A of the Social Security Act, including child care 222.3 assistance; any form of medical assistance as defined under 222.4 Title XIX of the Social Security Act, including MinnesotaCare; 222.5 and foster care as provided under Title IV-E of the Social 222.6 Security Act. 222.7 (b) The term "child support agency" as used in this section 222.8 refers to the public authority responsible for child support 222.9 enforcement. 222.10 (c) The term "public assistance agency" as used in this 222.11 section refers to any public authority providing public 222.12 assistance to an individual. 222.13 Subd. 2. [ASSIGNMENT OF SUPPORT AND MAINTENANCE 222.14 RIGHTS.] (a) An individual receiving public assistance in the 222.15 form of cash assistance is considered to have assigned to the 222.16 state at the time of application all rights to child support and 222.17 maintenance from any other person the applicant or recipient may 222.18 have in the individual's own behalf or in the behalf of any 222.19 other family member for whom application for public assistance 222.20 is made. An assistance unit is ineligible for aid to families 222.21 with dependent children or its successor program unless the 222.22 caregiver assigns all rights to child support and spousal 222.23 maintenance benefits under this section. 222.24 (1) An assignment made according to this section is 222.25 effective as to: 222.26 (i) any current child support and current spousal 222.27 maintenance; and 222.28 (ii) any accrued child support and spousal maintenance 222.29 arrears. 222.30 (2) An assignment made after September 30, 1997, is 222.31 effective as to: 222.32 (i) any current child support and current spousal 222.33 maintenance; 222.34 (ii) any accrued child support and spousal maintenance 222.35 arrears collected before October 1, 2000; and 222.36 (iii) any accrued child support and spousal maintenance 223.1 arrears collected under federal tax intercept. 223.2 (b) An individual receiving public assistance in the form 223.3 of medical assistance, including MinnesotaCare, is considered to 223.4 have assigned to the state at the time of application all rights 223.5 to medical support from any other person the individual may have 223.6 in the individual's own behalf or in the behalf of any other 223.7 family member for whom medical assistance is provided. 223.8 An assignment made after September 30, 1997, is effective 223.9 as to any medical support accruing after the date of medical 223.10 assistance or MinnesotaCare eligibility. 223.11 (c) An individual receiving public assistance in the form 223.12 of child care assistance under title IV-A of the Social Security 223.13 Act is considered to have assigned to the state at the time of 223.14 application all rights to child care support from any other 223.15 person the individual may have in the individual's own behalf or 223.16 in the behalf of any other family member for whom child care 223.17 assistance is provided. 223.18 An assignment made according to this paragraph is effective 223.19 as to: 223.20 (1) any current child care support and any child care 223.21 support arrears assigned and accruing after the effective date 223.22 of this section that are collected before October 1, 2000; and 223.23 (2) any accrued child care support arrears collected under 223.24 federal tax intercept. 223.25 Subd. 3. [EXISTING ASSIGNMENTS.] All assignments based on 223.26 the receipt of public assistance in existence prior to the 223.27 effective date of this section are permanently assigned to the 223.28 state. 223.29 Subd. 4. [EFFECT OF ASSIGNMENT.] All assignments in this 223.30 section take effect upon a determination that the applicant is 223.31 eligible for public assistance. The amount of support assigned 223.32 under this subdivision cannot exceed the total amount of public 223.33 assistance issued. 223.34 Subd. 5. [COOPERATION WITH CHILD SUPPORT 223.35 ENFORCEMENT.] After notification from a public assistance agency 223.36 that an individual has applied for or is receiving any form of 224.1 public assistance, the child support agency shall determine 224.2 whether the party is cooperating with the agency in establishing 224.3 paternity, child support, modification of an existing child 224.4 support order, or enforcement of an existing child support 224.5 order. The public assistance agency shall notify each applicant 224.6 or recipient in writing of the right to claim a good cause 224.7 exemption from cooperating with the requirements in this 224.8 section. A copy of the notice shall be furnished to the 224.9 applicant or recipient, and the applicant or recipient and a 224.10 representative from the public authority shall acknowledge 224.11 receipt of the notice by signing and dating a copy of the notice. 224.12 The individual shall cooperate with the child support 224.13 agency by: 224.14 (1) providing all known information regarding the alleged 224.15 father or obligor including name, address, social security 224.16 number, telephone number, place of employment or school, and the 224.17 names and addresses of any relatives; 224.18 (2) appearing at interviews, hearings, and legal 224.19 proceedings; 224.20 (3) submitting to genetic tests including genetic testing 224.21 of the child, under a judicial or administrative order; and 224.22 (4) providing additional information known by the 224.23 individual as necessary for cooperating in good faith with the 224.24 child support agency. 224.25 The caregiver of a minor child shall cooperate with the 224.26 efforts of the public authority to collect support according to 224.27 this subdivision. A caregiver shall forward to the public 224.28 authority all support the caregiver receives during the period 224.29 the assignment of support required under section 256.741, 224.30 subdivision 1, is in effect. Support received by a caregiver, 224.31 and not forwarded to the public authority, must be repaid to the 224.32 child support enforcement unit for any month following the date 224.33 on which initial eligibility is determined, except as provided 224.34 under subdivision 8, paragraph (b), clause (4). 224.35 Subd. 6. [DETERMINATION.] If the individual cannot provide 224.36 the information required in subdivision 5, before making a 225.1 determination that the individual is cooperating, the child 225.2 support agency shall make a finding that the individual could 225.3 not reasonably be expected to provide the information. In 225.4 making this finding, the child support agency shall consider: 225.5 (1) the age of the child for whom support is being sought; 225.6 (2) the circumstances surrounding the conception of the 225.7 child; 225.8 (3) the age and mental capacity of the parent or caregiver 225.9 of the child for whom support is being sought; 225.10 (4) the time period that has expired since the parent or 225.11 caregiver of the child for whom support is sought last had 225.12 contact with the alleged father or obligor, or such person's 225.13 relatives; and 225.14 (5) statements from the applicant or recipient or other 225.15 individuals that show evidence of an inability to provide 225.16 correct information about the alleged father or obligor because 225.17 of deception by the alleged father or obligor. 225.18 Subd. 7. [NONCOOPERATION.] Unless good cause is found to 225.19 exist under subdivision 10, upon a determination of 225.20 noncooperation by the child support agency, the agency shall 225.21 promptly notify the individual and each public assistance agency 225.22 providing public assistance to the individual that the 225.23 individual is not cooperating with the child support agency. 225.24 Upon notice of noncooperation, the individual shall be 225.25 sanctioned in the amount determined according to the public 225.26 assistance agency responsible for enforcing the sanction. 225.27 Subd. 8. [REFUSAL TO COOPERATE WITH SUPPORT 225.28 REQUIREMENTS.] (a) Failure by a caregiver to satisfy any of the 225.29 requirements of subdivision 5 constitutes refusal to cooperate, 225.30 and the sanctions under subdivision 8a apply. The IV-D agency 225.31 must determine whether a caregiver has refused to cooperate 225.32 according to the applicable provisions of this section. 225.33 (b) Determination by the IV-D agency that a caregiver has 225.34 refused to cooperate shall give rise to sanctions under 225.35 subdivision 8a. 225.36 Subd. 8a. [SANCTIONS FOR REFUSAL TO COOPERATE WITH SUPPORT 226.1 REQUIREMENTS.] (a) The grant of an MFIP-S caregiver who refuses 226.2 to cooperate, as determined by the child support enforcement 226.3 agency, with support requirements under this section and section 226.4 256J.30, if enacted, must be reduced by 25 percent, and the 226.5 assistance unit's rent and utilities, if any, shall be vendor 226.6 paid up to the amount of the reduced MFIP-S grant. The residual 226.7 amount of the grant, if any, must be paid to the caregiver. A 226.8 sanction under this subdivision becomes effective ten days after 226.9 the required notice is given. The sanction must be in effect 226.10 for a minimum of one month, and shall be removed only when the 226.11 caregiver cooperates with the support requirements. For 226.12 purposes of this subdivision, each month that a participant 226.13 fails to comply with a requirement of section 256J.30, if 226.14 enacted, shall be considered a separate occurrence of 226.15 noncompliance. A participant who has had one or more sanctions 226.16 imposed must remain in compliance with the provisions of this 226.17 chapter for 12 months in order for a subsequent sanction to be 226.18 considered a first occurrence. A sanction under this 226.19 subdivision is not subject to the notice requirements of section 226.20 256J.57, subdivision 2, if enacted. 226.21 (b) For a participant who is subject concurrently to 226.22 sanctions under paragraph (a) and sanctions under section 226.23 256J.46, subdivision 2, if enacted, for failure to comply with 226.24 other program requirements, the sanctions shall be prescribed in 226.25 the order and manner in this paragraph. The participant's grant 226.26 must be reduced by 25 percent, and the assistance unit's rent 226.27 and utilities shall be vendor paid up to the amount of the 226.28 reduced grant, as provided in subdivision 1. The residual 226.29 amount of the grant after vendor payment, if any, must be 226.30 reduced by ten percent of the applicable transitional standard 226.31 before it is paid to the participant. If the assistance unit is 226.32 a two-parent family and both parents are in noncompliance under 226.33 this subdivision, the residual amount of the grant, if any, must 226.34 be reduced by an additional five percent of the applicable 226.35 transitional standard before it is paid to the participant. The 226.36 sanction must be in effect for a minimum of one month, and shall 227.1 be removed only when the participant is in compliance. 227.2 Subd. 9. [GOOD CAUSE EXEMPTION FROM COOPERATING WITH 227.3 SUPPORT REQUIREMENTS.] The IV-A or IV-D agency must notify the 227.4 caregiver that the caregiver may claim a good cause exemption 227.5 from cooperating with the requirements in subdivision 5. Good 227.6 cause may be claimed and exemptions determined according to 227.7 subdivisions 10 to 13. 227.8 Subd. 10. [GOOD CAUSE EXEMPTION.] (a) Cooperation with the 227.9 child support agency under subdivision 5 is not necessary if the 227.10 individual asserts, and both the child support agency and the 227.11 public assistance agency find, good cause exists under this 227.12 subdivision for failing to cooperate. An individual may request 227.13 a good cause exemption by filing a written claim with the public 227.14 assistance agency on a form provided by the commissioner of 227.15 human services. Upon notification of a claim for good cause 227.16 exemption, the child support agency shall cease all child 227.17 support enforcement efforts until the claim for good cause 227.18 exemption is reviewed and the validity of the claim is 227.19 determined. Designated representatives from public assistance 227.20 agencies and at least one representative from the child support 227.21 enforcement agency shall review each claim for a good cause 227.22 exemption and determine its validity. 227.23 (b) Good cause exists when an individual documents that 227.24 pursuit of child support enforcement services could reasonably 227.25 result in: 227.26 (1) physical or emotional harm to the child for whom 227.27 support is sought; 227.28 (2) physical harm to the parent or caregiver with whom the 227.29 child is living that would reduce the ability to adequately care 227.30 for the child; or 227.31 (3) emotional harm to the parent or caregiver with whom the 227.32 child is living, of such nature or degree that it would reduce 227.33 the person's ability to adequately care for the child. 227.34 The physical and emotional harm under this paragraph must 227.35 be of a serious nature in order to justify a finding of good 227.36 cause exemption. A finding of good cause exemption based on 228.1 emotional harm may only be based upon a demonstration of 228.2 emotional impairment that substantially affects the individual's 228.3 ability to function. 228.4 (c) Good cause also exists when the designated 228.5 representatives in this subdivision believe that pursuing child 228.6 support enforcement would be detrimental to the child for whom 228.7 support is sought and the individual applicant or recipient 228.8 documents any of the following: 228.9 (1) the child for whom child support enforcement is sought 228.10 was conceived as a result of incest or rape; 228.11 (2) legal proceedings for the adoption of the child are 228.12 pending before a court of competent jurisdiction; or 228.13 (3) the parent or caregiver of the child is currently being 228.14 assisted by a public or licensed private social service agency 228.15 to resolve the issues of whether to keep the child or place the 228.16 child for adoption. 228.17 The parent or caregiver's right to claim a good cause 228.18 exemption based solely on this paragraph expires if the 228.19 assistance lasts more than 90 days. 228.20 (d) The public authority shall consider the best interests 228.21 of the child in determining good cause. 228.22 Subd. 11. [PROOF OF GOOD CAUSE.] (a) An individual seeking 228.23 a good cause exemption has 20 days from the date the good cause 228.24 claim was provided to the public assistance agency to supply 228.25 evidence supporting the claim. The public assistance agency may 228.26 extend the time period in this section if it believes the 228.27 individual is cooperating and needs additional time to submit 228.28 the evidence required by this section. Failure to provide such 228.29 evidence shall result in the child support agency resuming child 228.30 support enforcement efforts. 228.31 (b) Evidence supporting a good cause claim includes, but is 228.32 not limited to: 228.33 (1) a birth certificate, or medical or law enforcement 228.34 records indicating that the child was conceived as the result of 228.35 incest or rape; 228.36 (2) court documents or other records indicating that legal 229.1 proceedings for adoption are pending before a court of competent 229.2 jurisdiction; 229.3 (3) court, medical, criminal, child protective services, 229.4 social services, domestic violence advocate services, 229.5 psychological, or law enforcement records indicating that the 229.6 alleged father or obligor might inflict physical or emotional 229.7 harm on the child, parent, or caregiver; 229.8 (4) medical records or written statements from a licensed 229.9 medical professional indicating the emotional health history or 229.10 status of the custodial parent, child, or caregiver, or 229.11 indicating a diagnosis or prognosis concerning their emotional 229.12 health; 229.13 (5) a written statement from a public or licensed private 229.14 social services agency that the individual is deciding whether 229.15 to keep the child or place the child for adoption; or 229.16 (6) sworn statements from individuals other than the 229.17 applicant or recipient that provide evidence supporting the good 229.18 cause claim. 229.19 (c) The child support agency and the public assistance 229.20 agency shall assist an individual in obtaining the evidence in 229.21 this section upon request of the individual. 229.22 Subd. 12. [DECISION.] A good cause exemption shall be 229.23 granted if the individual's claim and the investigation of the 229.24 supporting evidence satisfy the investigating agencies that the 229.25 individual has good cause for refusing to cooperate. 229.26 Subd. 13. [DURATION.] A good cause exemption shall not 229.27 continue for more than one year without redetermination of 229.28 cooperation and good cause pursuant to this section. The child 229.29 support agency may redetermine cooperation and the designated 229.30 representatives in subdivision 10 may redetermine the granting 229.31 of a good cause exemption before the one-year expiration in this 229.32 subdivision. 229.33 A good cause exemption must be allowed under subsequent 229.34 applications and redeterminations without additional evidence 229.35 when the factors which led to the exemption continue to exist. 229.36 A good cause exemption must end when the factors that led to the 230.1 exemption have changed. 230.2 Sec. 5. Minnesota Statutes 1996, section 256.87, 230.3 subdivision 1, is amended to read: 230.4 Subdivision 1. [ACTIONS AGAINST PARENTS FOR ASSISTANCE 230.5 FURNISHED.] A parent of a child is liable for the amount of 230.6 assistance furnishedunder sections 256.031 to 256.0361, 256.72230.7to 256.87, orunder Title IV-A or IV-E of the Social Security 230.8 Act or medical assistance underchapter 256, 256B, or 256DTitle 230.9 XIX of the Social Security Act to and for the benefit of the 230.10 child, including any assistance furnished for the benefit of the 230.11 caretaker of the child, which the parent has had the ability to 230.12 pay. Ability to pay must be determined according to chapter 230.13 518. The parent's liability is limited to the two years 230.14 immediately preceding the commencement of the action, except 230.15 that where child support has been previously ordered, the state 230.16 or county agency providing the assistance, as assignee of the 230.17 obligee, shall be entitled to judgments for child support 230.18 payments accruing within ten years preceding the date of the 230.19 commencement of the action up to the full amount of assistance 230.20 furnished. The action may be ordered by the state agency or 230.21 county agency and shall be brought in the name of the countyby230.22the county attorney of the county in which the assistance was230.23granted,orbyin the name of the state agency against the 230.24 parent for the recovery of the amount of assistance granted, 230.25 together with the costs and disbursements of the action. 230.26 Sec. 6. Minnesota Statutes 1996, section 256.87, 230.27 subdivision 1a, is amended to read: 230.28 Subd. 1a. [CONTINUING SUPPORT CONTRIBUTIONS.] In addition 230.29 to granting the county or state agency a money judgment, the 230.30 court may, upon a motion or order to show cause, order 230.31 continuing support contributions by a parent found able to 230.32 reimburse the county or state agency. The order shall be 230.33 effective for the period of time during which the recipient 230.34 receives public assistance from any county or state agency and 230.35 thereafter. The order shall require support according to 230.36 chapter 518. An order for continuing contributions is 231.1 reinstated without further hearing upon notice to the parent by 231.2 any county or state agency that assistance is again being 231.3 provided for the child of the parentunder sections 256.031 to231.4256.0361, 256.72 to 256.87, orunder Title IV-A or IV-E of the 231.5 Social Security Act or medical assistance underchapter 256,231.6256B, or 256DTitle XIX of the Social Security Act. The notice 231.7 shall be in writing and shall indicate that the parent may 231.8 request a hearing for modification of the amount of support or 231.9 maintenance. 231.10 Sec. 7. Minnesota Statutes 1996, section 256.87, 231.11 subdivision 3, is amended to read: 231.12 Subd. 3. [CONTINUING CONTRIBUTIONS TO FORMER RECIPIENT.] 231.13 The order for continuing support contributions shall remain in 231.14 effect following the period after public assistance granted 231.15 undersections 256.72 to 256.87Title IV-A or IV-E of the Social 231.16 Security Act is terminated unless the former recipient files an 231.17 affidavit with the court requesting termination of the order. 231.18 Sec. 8. Minnesota Statutes 1996, section 256.87, 231.19 subdivision 5, is amended to read: 231.20 Subd. 5. [CHILD NOT RECEIVING ASSISTANCE.] A person or 231.21 entity having physical custody of a dependent child not 231.22 receiving public assistanceunder sections 256.031 to 256.0361,231.23or 256.72 to 256.87as defined in section 256.741 has a cause of 231.24 action for child support against the child'sabsentnoncustodial 231.25 parents. Upon a motion served on theabsentnoncustodial 231.26 parent, the court shall order child support payments, including 231.27 medical support and child care support, from the 231.28absentnoncustodial parent under chapter 518.The absentA 231.29 noncustodial parent's liability may include up to the two years 231.30 immediately preceding the commencement of the action. This 231.31 subdivision applies only if the person or entity has physical 231.32 custody with the consent of a custodial parent or approval of 231.33 the court. 231.34 Sec. 9. Minnesota Statutes 1996, section 256.87, is 231.35 amended by adding a subdivision to read: 231.36 Subd. 8. [DISCLOSURE PROHIBITED.] Notwithstanding 232.1 statutory or other authorization for the public authority to 232.2 release private data on the location of a party to the action, 232.3 information on the location of one party may not be released to 232.4 the other party by the public authority if: 232.5 (1) the public authority has knowledge that a protective 232.6 order with respect to the other party has been entered; or 232.7 (2) the public authority has reason to believe that the 232.8 release of the information may result in physical or emotional 232.9 harm to the other party. 232.10 Sec. 10. Minnesota Statutes 1996, section 256.978, 232.11 subdivision 1, is amended to read: 232.12 Subdivision 1. [REQUEST FOR INFORMATION.] Thecommissioner232.13of human servicespublic authority responsible for child support 232.14 in this state or any other state, in order to locate a person to 232.15 establish paternity,and child support or to modify or enforce 232.16 child support,or to enforce a child support obligation in232.17arrears,may request information reasonably necessary to the 232.18 inquiry from the records of all departments, boards, bureaus, or 232.19 other agencies of this state, which shall, notwithstanding the 232.20 provisions of section 268.12, subdivision 12, or any other law 232.21 to the contrary, provide the information necessary for this 232.22 purpose. Employers, utility companies, insurance companies, 232.23 financial institutions, and labor associations doing business in 232.24 this state shall provide information as provided under 232.25 subdivision 2 upon written or electronic request by an agency 232.26 responsible for child support enforcement regarding individuals 232.27 owing or allegedly owing a duty to support within 30 days ofthe232.28receiptservice of thewrittenrequest made by the public 232.29 authority. Information requested and used or transmitted by the 232.30 commissionerpursuantaccording to the authority conferred by 232.31 this section may be made availableonly to public officials and232.32agencies of this state and its political subdivisions and other232.33states of the union and their political subdivisions who are232.34seeking to enforce the support liability of parents or to locate232.35parents. The commissioner may not release the information to an232.36agency or political subdivision of another state unless the233.1agency or political subdivision is directed to maintain the data233.2consistent with its classification in this state. Information233.3obtained under this section may not be released except to the233.4extent necessary for the administration of the child support233.5enforcement program or when otherwise authorized by law.to 233.6 other agencies, statewide systems, and political subdivisions of 233.7 this state, and agencies of other states, interstate information 233.8 networks, federal agencies, and other entities as required by 233.9 federal regulation or law for the administration of the child 233.10 support enforcement program. 233.11 For purposes of this section, "state" includes the District 233.12 of Columbia, Puerto Rico, the United States Virgin Islands, and 233.13 any territory or insular possession subject to the jurisdiction 233.14 of the United States. 233.15 Sec. 11. Minnesota Statutes 1996, section 256.978, 233.16 subdivision 2, is amended to read: 233.17 Subd. 2. [ACCESS TO INFORMATION.] (a) Awrittenrequest 233.18 for information by the public authority responsible for child 233.19 support of this state or any other state may be made to: 233.20 (1) employers when there is reasonable cause to believe 233.21 that the subject of the inquiry is or was an employee or 233.22 independent contractor of the employer. Information to be 233.23 released by employers is limited to place of residence, 233.24 employment status, wage or payment information, benefit 233.25 information, and social security number; 233.26 (2) utility companies when there is reasonable cause to 233.27 believe that the subject of the inquiry is or was a retail 233.28 customer of the utility company. Customer information to be 233.29 released by utility companies is limited to place of residence, 233.30 home telephone, work telephone, source of income, employer and 233.31 place of employment, and social security number; 233.32 (3) insurance companies when there isan arrearage of child233.33support and there isreasonable cause to believe that the 233.34 subject of the inquiry is or was receiving funds either in the 233.35 form of a lump sum or periodic payments. Information to be 233.36 released by insurance companies is limited to place of 234.1 residence, home telephone, work telephone, employer, social 234.2 security number, and amounts and type of payments made to the 234.3 subject of the inquiry; 234.4 (4) labor organizations when there is reasonable cause to 234.5 believe that the subject of the inquiry is or was a member of 234.6 the labor association. Information to be released by labor 234.7 associations is limited to place of residence, home telephone, 234.8 work telephone, social security number, and current and past 234.9 employment information; and 234.10 (5) financial institutions whenthere is an arrearage of234.11child support andthere is reasonable cause to believe that the 234.12 subject of the inquiry has or has had accounts, stocks, loans, 234.13 certificates of deposits, treasury bills, life insurance 234.14 policies, or other forms of financial dealings with the 234.15 institution. Information to be released by the financial 234.16 institution is limited to place of residence, home telephone, 234.17 work telephone, identifying information on the type of financial 234.18 relationships, social security number, current value of 234.19 financial relationships, and current indebtedness of the subject 234.20 with the financial institution. 234.21 (b) For purposes of this subdivision, utility companies 234.22 include telephone companies, radio common carriers, and 234.23 telecommunications carriers as defined in section 237.01, and 234.24 companies that provide electrical, telephone, natural gas, 234.25 propane gas, oil, coal, or cable television services to retail 234.26 customers. The term financial institution includes banks, 234.27 savings and loans, credit unions, brokerage firms, mortgage 234.28 companies,andinsurance companies., benefit associations, safe 234.29 deposit companies, money market mutual funds, or similar 234.30 entities authorized to do business in the state. 234.31 Sec. 12. Minnesota Statutes 1996, section 256.9792, 234.32 subdivision 1, is amended to read: 234.33 Subdivision 1. [ARREARAGE COLLECTIONS.] Arrearage 234.34 collection projects are created to increase the revenue to the 234.35 state and counties, reduceAFDCpublic assistance expenditures 234.36 for former public assistance cases, and increase payments of 235.1 arrearages to persons who are not receiving public assistance by 235.2 submitting cases for arrearage collection to collection 235.3 entities, including but not limited to, the department of 235.4 revenue and private collection agencies. 235.5 Sec. 13. Minnesota Statutes 1996, section 256.9792, 235.6 subdivision 2, is amended to read: 235.7 Subd. 2. [DEFINITIONS.] (a) The definitions in this 235.8 subdivision apply to this section: 235.9 (b) "Public assistance arrearage case" means a case where 235.10 current support may be due, no payment, with the exception of 235.11 tax offset, has been made within the last 90 days, and the 235.12 arrearages are assigned to the public agencypursuantaccording 235.13 to section256.74, subdivision 5256.741. 235.14 (c) "Public authority" means the public authority 235.15 responsible for child support enforcement. 235.16 (d) "Nonpublic assistance arrearage case" means a support 235.17 case where arrearages have accrued that have not been assigned 235.18pursuantaccording to section256.74, subdivision 5256.741. 235.19 Sec. 14. Minnesota Statutes 1996, section 256.998, 235.20 subdivision 1, is amended to read: 235.21 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 235.22 subdivision apply to this section. 235.23 (b) "Date of hiring" means the earlier of: (1) the first 235.24 day for which an employee is owed compensation by an employer; 235.25 or (2) the first day that an employee reports to work or 235.26 performs labor or services for an employer. 235.27 (c) "Earnings" means payment owed by an employer for labor 235.28 or services rendered by an employee. 235.29 (d) "Employee" means a person who resides or works in 235.30 Minnesotaand, performs services for compensation, in whatever 235.31 form, for an employer and satisfies the criteria of an employee 235.32 under chapter 24 of the Internal Revenue Code. Employee does 235.33 not include: 235.34 (1) persons hired for domestic service in the private home 235.35 of the employer, as defined in the Federal Tax Code.; or 235.36 (2) an employee of the federal or state agency performing 236.1 intelligence or counterintelligence functions, if the head of 236.2 such agency has determined that reporting according to this law 236.3 would endanger the safety of the employee or compromise an 236.4 ongoing investigation or intelligence mission. 236.5 (e) "Employer" means a person or entity located or doing 236.6 business in this state that employs one or more employees for 236.7 payment, and satisfies the criteria of an employer under chapter 236.8 24 of the Internal Revenue Code. Employer includes a labor 236.9 organization as defined in paragraph (g). Employer also 236.10 includes the state, political or other governmental subdivisions 236.11 of the state, and the federal government. 236.12 (f) "Hiring" means engaging a person to perform services 236.13 for compensation and includes the reemploying or return to work 236.14 of any previous employee who was laid off, furloughed, 236.15 separated, granted a leave without pay, or terminated from 236.16 employment. 236.17 (g) "Labor organization" means entities located or doing 236.18 business in this state that meet the criteria of labor 236.19 organization under section 2(5) of the National Labor Relations 236.20 Act. This includes any entity, that may also be known as a 236.21 hiring hall, used to carry out requirements described in chapter 236.22 7 of the National Labor Relations Act. 236.23 (h) "Payor" means a person or entity located or doing 236.24 business in Minnesota who pays money to an independent 236.25 contractor according to an agreement for the performance of 236.26 services. 236.27 Sec. 15. Minnesota Statutes 1996, section 256.998, 236.28 subdivision 6, is amended to read: 236.29 Subd. 6. [SANCTIONS.] If an employer fails to report under 236.30 this section, the commissioner of human services, by certified 236.31 mail, shall send the employer a written notice of noncompliance 236.32 requesting that the employer comply with the reporting 236.33 requirements of this section. The notice of noncompliance must 236.34 explain the reporting procedure under this section and advise 236.35 the employer of the penalty for noncompliance. An employer who 236.36 has received a notice of noncompliance and later incurs a second 237.1 violation is subject to a civil penalty of$50$25 for each 237.2 intentionally unreported employee. An employer who has received 237.3 a notice of noncomplianceand later incurs a third or subsequent237.4violationis subject to a civil penalty of $500 for each 237.5 intentionally unreported employee., if noncompliance is the 237.6 result of a conspiracy between an employer and an employee not 237.7 to supply the required report or to supply a false or incomplete 237.8 report. These penalties may be imposed and collected by the 237.9 commissioner of human services. An employer who has been served 237.10 with a notice of noncompliance and incurs a second or subsequent 237.11 notice of noncompliance, has the right to a contested case 237.12 hearing according to chapter 14. An employer has 20 days from 237.13 the date of service of the notice of noncompliance, to file a 237.14 request for a contested case hearing with the commissioner. The 237.15 order of the administrative law judge constitutes the final 237.16 decision in the case. 237.17 Sec. 16. Minnesota Statutes 1996, section 256.998, 237.18 subdivision 7, is amended to read: 237.19 Subd. 7. [ACCESS TO DATA.] The commissioner of human 237.20 services shall retain the information reported to the work 237.21 reporting system for a period of six months. Data in the work 237.22 reporting system may be disclosed to the public authority 237.23 responsible for child support enforcement, federal agencies,and237.24 state and local agencies of other states for the purposes of 237.25 enforcing state and federal laws governing child support., and 237.26 agencies responsible for the administration of programs under 237.27 Title IV-A of the Social Security Act, the department of 237.28 economic security, and the department of labor and industry. 237.29 Sec. 17. Minnesota Statutes 1996, section 256.998, is 237.30 amended by adding a subdivision to read: 237.31 Subd. 10. [USE OF WORK REPORTING SYSTEM INFORMATION IN 237.32 DETERMINING ELIGIBILITY FOR PUBLIC ASSISTANCE PROGRAMS.] The 237.33 commissioner of human services is authorized to use information 237.34 from the work reporting system to determine eligibility for 237.35 applicants and recipients of public assistance programs 237.36 administered by the department of human services. Data 238.1 including names, dates of birth, and social security numbers of 238.2 people applying for or receiving public assistance benefits will 238.3 be compared to the work reporting system information to 238.4 determine if applicants or recipients of public assistance are 238.5 employed. County agencies will be notified of discrepancies in 238.6 information obtained from the work reporting system. 238.7 Sec. 18. Minnesota Statutes 1996, section 256.998, is 238.8 amended by adding a subdivision to read: 238.9 Subd. 11. [ACTION ON INFORMATION.] Upon receipt of the 238.10 discrepant information, county agencies will notify clients of 238.11 the information and request verification of employment status 238.12 and earnings. County agencies must attempt to resolve the 238.13 discrepancy within 45 days of receipt of the information. 238.14 Sec. 19. Minnesota Statutes 1996, section 256.998, is 238.15 amended by adding a subdivision to read: 238.16 Subd. 12. [CLIENT NOTIFICATION.] Persons applying for 238.17 public assistance programs administered by the department of 238.18 human services will be notified at the time of application that 238.19 data including their name, date of birth, and social security 238.20 number will be shared with the work reporting system to 238.21 determine possible employment. All current public assistance 238.22 recipients will be notified of this provision prior to its 238.23 implementation. 238.24 Sec. 20. Minnesota Statutes 1996, section 256F.04, 238.25 subdivision 1, is amended to read: 238.26 Subdivision 1. [FAMILY PRESERVATION FUND.] The 238.27 commissioner shall establish a family preservation fund to 238.28 assist counties in providing placement prevention and family 238.29 reunification services.This fund shall include a basic grant238.30for family preservation services, a placement earnings grant238.31under section 256.8711, subdivision 6b, paragraph (a), and a238.32development grant under section 256.8711, subdivision 6a, to238.33assist counties in developing and expanding their family238.34preservation core services as defined in section 256F.03,238.35subdivision 10. Beginning with calendar year 1998, after each238.36annual or quarterly calculation, these three component grants239.1shall be added together and treated as a single family239.2preservation grant.239.3 Sec. 21. Minnesota Statutes 1996, section 256F.04, 239.4 subdivision 2, is amended to read: 239.5 Subd. 2. [FORMS AND INSTRUCTIONS.] The commissioner shall 239.6 provide necessary forms and instructions to the counties for 239.7 their community social services plan, as required in section 239.8 256E.09, that incorporate the information necessary to apply for 239.9 a family preservation fund grant, and to exercise county options 239.10 under section 256F.05,subdivisions 7, paragraph (a), or239.11 subdivision 8, paragraph (c). 239.12 Sec. 22. Minnesota Statutes 1996, section 256F.05, 239.13 subdivision 2, is amended to read: 239.14 Subd. 2. [MONEY AVAILABLE FORTHE BASIC GRANTFAMILY 239.15 PRESERVATION.] Money appropriated for family preservation under 239.16 sections 256F.04 to 256F.07, together with an amount as 239.17 determined by the commissioner oftitle IV-Bfunds distributed 239.18 to Minnesota according tothe Social Security Act,United States 239.19 Code, title 42, chapter 7, subchapter IV, part B, section 621, 239.20 must be distributed to counties on a calendar year basis 239.21 according to the formula in subdivision 3. 239.22 Sec. 23. Minnesota Statutes 1996, section 256F.05, 239.23 subdivision 3, is amended to read: 239.24 Subd. 3. [BASICGRANT FORMULA.] (a) The amount of money 239.25 allocated to counties under subdivision 2 shall first be 239.26 allocated in amounts equal to each county's guaranteed floor 239.27 according to paragraph (b), and second, any remaining available 239.28 funds allocated as follows: 239.29 (1)9050 percent of the funds shall be allocated based on 239.30 the population of the county under age 19 years as compared to 239.31 the state as a whole as determined by the most recent data from 239.32 the state demographer's office;and239.33 (2)ten20 percent of funds shall be allocated based on the 239.34 county's percentage share of the unduplicated number of families 239.35 who received family preservation services under section 256F.03, 239.36 subdivision 5, paragraphs (a), (b), (c), and (e), in the most 240.1 recent calendar year available as determined by the 240.2 commissioner; 240.3 (3) ten percent of the funds shall be allocated based on 240.4 the county's percentage share of the unduplicated number of 240.5 children in substitute care in the most recent calendar year 240.6 available as determined by the commissioner; 240.7 (4) ten percent of the funds shall be allocated based on 240.8 the county's percentage share of the number of determined 240.9 maltreatment reports in the most recent calendar year available 240.10 as determined by the commissioner; 240.11 (5) five percent of the funds shall be allocated based on 240.12 the county's percentage share of the number of American Indian 240.13 children under age 18 residing in the county in the most recent 240.14 calendar year as determined by the commissioner; and 240.15 (6) five percent of the funds shall be allocated based on 240.16 the county's percentage share of the number ofminoritychildren 240.17 of color receiving children's case management services as 240.18 defined by the commissioner based on the most recent data as 240.19 determined by the commissioner. 240.20 (b) Each county'sbasicgrant guaranteed floor shall be 240.21 calculated as follows: 240.22 (1) 90 percent of the county's allocation received in the 240.23 preceding calendar year. For calendar year 1996 only, the240.24allocation received in the preceding calendar year shall be240.25determined by the commissioner based on the funding previously240.26distributed as separate grants under sections 256F.04 to 256F.07240.27 or $25,000, whichever is greater; and 240.28 (2) when the amounts of funds available for allocation is 240.29 less than the amount available in the previous year, each 240.30 county's previous year allocation shall be reduced in proportion 240.31 to the reduction in the statewide funding, for the purpose of 240.32 establishing the guaranteed floor. 240.33 (c) The commissioner shall regularly review the use of 240.34 family preservation fund allocations by county. The 240.35 commissioner may reallocate unexpended or unencumbered money at 240.36 any time among those counties that have expended or are 241.1 projected to expend their full allocation. 241.2 (d) For the period of July 1, 1997, to December 31, 1998, 241.3 only, each county shall receive an 18-month allocation. For the 241.4 purposes of determining the guaranteed floor for this 18-month 241.5 allocation, the allocation received in the preceding calendar 241.6 year shall be determined by the commissioner based on the 241.7 funding previously distributed separately under sections 241.8 256.8711 and 256F.04. 241.9 Sec. 24. Minnesota Statutes 1996, section 256F.05, 241.10 subdivision 4, is amended to read: 241.11 Subd. 4. [PAYMENTS.] The commissioner shall make grant 241.12 payments to each county whose biennial community social services 241.13 plan has been approved under section 256F.04, subdivision 2. 241.14 Thebasicgrantunder subdivisions 2 and 3 and the development241.15grant under section 256.8711, subdivision 6a,shall be paid to 241.16 counties in four installments per year. The commissioner may 241.17 certify the payments for the first three months of a calendar 241.18 year. Subsequent payments shall be based on reported 241.19 expenditures and may be adjusted for anticipated spending 241.20 patterns.The placement earnings grant under section 256.8711,241.21subdivision 6b, paragraph (a), shall be based on earnings and241.22coordinated with the other payments. In calendar years 1996 and241.231997, the placement earnings grant and the development grant241.24shall be distributed separately from the basic grant, except as241.25provided in subdivision 7, paragraph (a). Beginning with241.26calendar year 1998, after each annual or quarterly calculation,241.27these three component grants shall be added together into a241.28single family preservation fund grant and treated as a single241.29grant.241.30 Sec. 25. Minnesota Statutes 1996, section 256F.05, 241.31 subdivision 8, is amended to read: 241.32 Subd. 8. [USES OF FAMILY PRESERVATION FUND GRANTS.]For241.33both basic grants and single family preservation fund grants:241.34 (a) A county which has not demonstrated that year that its 241.35 family preservation core services are developed as provided in 241.36 subdivision 1a, must use its family preservation fund grant 242.1 exclusively for family preservation services defined in section 242.2 256F.03, subdivision 5, paragraphs (a), (b), (c), and (e). 242.3 (b) A county which has demonstrated that year that its 242.4 family preservation core services are developed becomes eligible 242.5 either to continue using its family preservation fund grant as 242.6 provided in paragraph (a), or to exercise the expanded service 242.7 option under paragraph (c). 242.8 (c) The expanded service option permits an eligible county 242.9 to use its family preservation fund grant for child welfare 242.10preventativepreventive servicesas defined in section 256F.10,242.11subdivision 7, paragraph (d). For purposes of this section, 242.12 child welfare preventive services are those services directed 242.13 toward a specific child or family that further the goals of 242.14 section 256F.01 and include assessments, family preservation 242.15 services, service coordination, community-based treatment, 242.16 crisis nursery services when the parents retain custody and 242.17 there is no voluntary placement agreement with a child-placing 242.18 agency, respite care except when it is provided under a medical 242.19 assistance waiver, home-based services, and other related 242.20 services. For purposes of this section, child welfare 242.21 preventive services shall not include shelter care or other 242.22 placement services under the authority of the court or public 242.23 agency to address an emergency. To exercise this option, an 242.24 eligible county must notify the commissioner in writing of its 242.25 intention to do so no later than 30 days into the quarter during 242.26 which it intends to begin or in its county plan, as provided in 242.27 section 256F.04, subdivision 2. Effective with the first day of 242.28 that quarter, the county must maintain its base level of 242.29 expenditures for child welfarepreventativepreventive services 242.30 and use the family preservation fund to expand them. The base 242.31 level of expenditures for a county shall be that established 242.32 under section 256F.10, subdivision 7. For counties which have 242.33 no such base established, a comparable base shall be established 242.34 with the base year being the calendar year ending at least two 242.35 calendar quarters before the first calendar quarter in which the 242.36 county exercises its expanded service option. The commissioner 243.1 shall, at the request of the counties, reduce, suspend, or 243.2 eliminate either or both of a county's obligations to continue 243.3 the base level of expenditures and to expand child welfare 243.4preventativepreventive servicesbased on conditions described243.5in section 256F.10, subdivision 7, paragraph (b) or (c)under 243.6 extraordinary circumstances. 243.7(d) Each county's placement earnings and development grant243.8shall be determined under section 256.8711, but after each243.9annual or quarterly calculation, if added to that county's basic243.10grant, the three component grants shall be treated as a single243.11family preservation fund grant.243.12 Sec. 26. Minnesota Statutes 1996, section 256F.06, 243.13 subdivision 1, is amended to read: 243.14 Subdivision 1. [RESPONSIBILITIES.] A county board may, 243.15 alone or in combination with other county boards, apply for a 243.16 family preservation fund grant as provided in section 256F.04, 243.17 subdivision 2. Upon approval of the grant, the county board may 243.18 contract for or directly provide family-based and other eligible 243.19 services. A county board may contract with or directly provide 243.20 eligible services to children and families through a local 243.21 collaborative. 243.22 Sec. 27. Minnesota Statutes 1996, section 256F.06, 243.23 subdivision 2, is amended to read: 243.24 Subd. 2. [DEVELOPING FAMILY PRESERVATION CORE SERVICES.]A243.25county board shall endeavor to develop and expand its family243.26preservation core services.When a county can demonstrate that 243.27 its family preservation core services are developed as provided 243.28 in section 256F.05, subdivision 1a, a county board becomes 243.29 eligible to exercise the expanded service option under section 243.30 256F.05, subdivision 8, paragraph (c).For calendar years 1996243.31and 1997, the county board also becomes eligible to request that243.32its basic, placement earnings, and development grants be added243.33into a single grant under section 256F.05, subdivision 7,243.34paragraph (a).243.35 Sec. 28. Minnesota Statutes 1996, section 257.62, 243.36 subdivision 1, is amended to read: 244.1 Subdivision 1. [BLOOD OR GENETIC TESTS REQUIRED.] (a) The 244.2 court or public authority may, and upon request of a party 244.3 shall, require the child, mother, or alleged father to submit to 244.4 blood or genetic tests. A mother or alleged father requesting 244.5 the tests shall file with the court an affidavit either alleging 244.6 or denying paternity and setting forth facts that establish the 244.7 reasonable possibility that there was, or was not, the requisite 244.8 sexual contact between the parties. 244.9 (b) A copy of the test results must be served onthe244.10parties as provided in section 543.20each party by first class 244.11 mail to the party's last known address. Any objection to the 244.12 results of blood or genetic tests must be made in writing no 244.13 later than15 days prior to a hearing at which time those test244.14results may be introduced into evidence30 days after service of 244.15 the results. Test results served upon a party must include 244.16 notice of this right to object. 244.17 (c) If the alleged father is dead, the court may, and upon 244.18 request of a party shall, require the decedent's parents or 244.19 brothers and sisters or both to submit to blood or genetic 244.20 tests. However, in a case involving these relatives of an 244.21 alleged father, who is deceased, the court may refuse to order 244.22 blood or genetic tests if the court makes an express finding 244.23 that submitting to the tests presents a danger to the health of 244.24 one or more of these relatives that outweighs the child's 244.25 interest in having the tests performed. Unless the person gives 244.26 consent to the use, the results of any blood or genetic tests of 244.27 the decedent's parents, brothers, or sisters may be used only to 244.28 establish the right of the child to public assistance including 244.29 but not limited to social security and veterans' benefits. The 244.30 tests shall be performed by a qualified expert appointed by the 244.31 court. 244.32 Sec. 29. Minnesota Statutes 1996, section 257.62, 244.33 subdivision 2, is amended to read: 244.34 Subd. 2.The court, upon reasonable request by a party,244.35shall order that independent tests be performed by other244.36qualified experts.Unless otherwise agreed by the parties, a 245.1 party wanting additional testing must first contest the original 245.2 tests in subdivision 1, paragraph (b), and must pay in advance 245.3 for the additional testing. The additional testing shall be 245.4 performed by another qualified expert. 245.5 Sec. 30. Minnesota Statutes 1996, section 257.66, 245.6 subdivision 3, is amended to read: 245.7 Subd. 3. [JUDGMENT; ORDER.] The judgment or order shall 245.8 contain provisions concerning the duty of support, the custody 245.9 of the child, the name of the child, the social security number 245.10 of the mother, father, and child, if known at the time of 245.11 adjudication, visitation privileges with the child, the 245.12 furnishing of bond or other security for the payment of the 245.13 judgment, or any other matter in the best interest of the 245.14 child. Custody and visitation and all subsequent motions 245.15 related to them shall proceed and be determined under section 245.16 257.541. The remaining matters and all subsequent motions 245.17 related to them shall proceed and be determined in accordance 245.18 with chapter 518. The judgment or order may direct the 245.19 appropriate party to pay all or a proportion of the reasonable 245.20 expenses of the mother's pregnancy and confinement, after 245.21 consideration of the relevant facts, including the relative 245.22 financial means of the parents; the earning ability of each 245.23 parent; and any health insurance policies held by either parent, 245.24 or by a spouse or parent of the parent, which would provide 245.25 benefits for the expenses incurred by the mother during her 245.26 pregnancy and confinement. Pregnancy and confinement expenses 245.27 and genetic testing costs, submitted by the public authority, 245.28 are admissible as evidence without third-party foundation 245.29 testimony and shall constitute prima facie evidence of the 245.30 amounts incurred for such services or for the genetic testing. 245.31 Remedies available for the collection and enforcement of child 245.32 support apply to confinement costs and are considered additional 245.33 child support. 245.34 Sec. 31. Minnesota Statutes 1996, section 257.66, is 245.35 amended by adding a subdivision to read: 245.36 Subd. 6. [REQUIRED INFORMATION.] Upon entry of judgment or 246.1 order, each parent who is a party in a paternity proceeding 246.2 shall: 246.3 (1) file with the public authority responsible for child 246.4 support enforcement the party's social security number, 246.5 residential and mailing address, telephone number, driver's 246.6 license number, and name, address, and telephone number of any 246.7 employer if the party is receiving services from the public 246.8 authority or begins receiving services from the public 246.9 authority; 246.10 (2) file the information in clause (1) with the district 246.11 court; and 246.12 (3) notify the court and, if applicable, the public 246.13 authority responsible for child support enforcement of any 246.14 change in the information required under this section within ten 246.15 days of the change. 246.16 Sec. 32. Minnesota Statutes 1996, section 257.70, is 246.17 amended to read: 246.18 257.70 [HEARINGS AND RECORDS; CONFIDENTIALITY.] 246.19 (a) Notwithstanding any other law concerning public 246.20 hearings and records, any hearing or trial held under sections 246.21 257.51 to 257.74 shall be held in closed court without 246.22 admittance of any person other than those necessary to the 246.23 action or proceeding. All papers and records, other than the 246.24 final judgment, pertaining to the action or proceeding, whether 246.25 part of the permanent record of the court or of a file in the 246.26 state department of human services or elsewhere, are subject to 246.27 inspection only upon consent of the court and all interested 246.28 persons, or in exceptional cases only upon an order of the court 246.29 for good cause shown. 246.30 (b) In all actions under this chapter in which public 246.31 assistance is assigned under section 256.741 or the public 246.32 authority provides services to a party or parties to the action, 246.33 notwithstanding statutory or other authorization for the public 246.34 authority to release private data on the location of a party to 246.35 the action, information on the location of one party may not be 246.36 released by the public authority to the other party if: 247.1 (1) the public authority has knowledge that a protective 247.2 order with respect to the other party has been entered; or 247.3 (2) the public authority has reason to believe that the 247.4 release of the information may result in physical or emotional 247.5 harm to the other party. 247.6 Sec. 33. Minnesota Statutes 1996, section 257.75, 247.7 subdivision 2, is amended to read: 247.8 Subd. 2. [REVOCATION OF RECOGNITION.] A recognition may be 247.9 revoked in a writing signed by the mother or father before a 247.10 notary public and filed with the state registrar of vital 247.11 statistics within the earlier of 30 days after the recognition 247.12 is executed.or the date of an administrative or judicial 247.13 hearing relating to the child in which the revoking party is a 247.14 party to the related action. A joinder in a recognition may be 247.15 revoked in a writing signed by the man who executed the joinder 247.16 and filed with the state registrar of vital statistics within 30 247.17 days after the joinder is executed. Upon receipt of a 247.18 revocation of the recognition of parentage or joinder in a 247.19 recognition, the state registrar of vital statistics shall 247.20 forward a copy of the revocation to the nonrevoking parent, or, 247.21 in the case of a joinder in a recognition, to the mother and 247.22 father who executed the recognition. 247.23 Sec. 34. Minnesota Statutes 1996, section 257.75, 247.24 subdivision 3, is amended to read: 247.25 Subd. 3. [EFFECT OF RECOGNITION.] Subject to subdivision 2 247.26 and section 257.55, subdivision 1, paragraph (g) or (h), the 247.27 recognition has the force and effect of a judgment or order 247.28 determining the existence of the parent and child relationship 247.29 under section 257.66. If the conditions in section 257.55, 247.30 subdivision 1, paragraph (g) or (h), exist, the recognition 247.31 creates only a presumption of paternity for purposes of sections 247.32 257.51 to 257.74. Once a recognition has been properly executed 247.33 and filed with the state registrar of vital statistics, if there 247.34 are no competing presumptions of paternity, a judicial or 247.35 administrative court shall not allow further action to determine 247.36 parentage regarding the signator of recognition. Until an order 248.1 is entered granting custody to another, the mother has sole 248.2 custody. The recognition is: 248.3 (1) a basis for bringing an action to award custody or 248.4 visitation rights to either parent, establishing a child support 248.5 obligation which may include up to the two years immediately 248.6 preceding the commencement of the action, ordering a 248.7 contribution by a parent under section 256.87, or ordering a 248.8 contribution to the reasonable expenses of the mother's 248.9 pregnancy and confinement, as provided under section 257.66, 248.10 subdivision 3, or ordering reimbursement for the costs of blood 248.11 or genetic testing, as provided under section 257.69, 248.12 subdivision 2; 248.13 (2) determinative for all other purposes related to the 248.14 existence of the parent and child relationship; and 248.15 (3) entitled to full faith and credit in other 248.16 jurisdictions. 248.17 Sec. 35. Minnesota Statutes 1996, section 257.75, 248.18 subdivision 4, is amended to read: 248.19 Subd. 4. [ACTION TO VACATE RECOGNITION.] (a) An action to 248.20 vacate a recognition of paternity may be brought by the mother, 248.21 father, husband or former husband who executed a joinder, or the 248.22 child. A mother, father, or husband or former husband who 248.23 executed a joinder must bring the action within one year of the 248.24 execution of the recognition or within six months after the 248.25 person bringing the action obtains the results of blood or 248.26 genetic tests that indicate that the man who executed the 248.27 recognition is not the father of the child. A child must bring 248.28 an action to vacate within six months after the child obtains 248.29 the result of blood or genetic tests that indicate that the man 248.30 who executed the recognition is not the father of the child, or 248.31 within one year of reaching the age of majority, whichever is 248.32 later. If the court finds a prima facie basis for vacating the 248.33 recognition, the court shall order the child, mother, father, 248.34 and husband or former husband who executed a joinder to submit 248.35 to blood tests. If the court issues an order for the taking of 248.36 blood tests, the court shall require the party seeking to vacate 249.1 the recognition to make advance payment for the costs of the 249.2 blood tests. If the party fails to pay for the costs of the 249.3 blood tests, the court shall dismiss the action to vacate with 249.4 prejudice. The court may also order the party seeking to vacate 249.5 the recognition to pay the other party's reasonable attorney 249.6 fees, costs, and disbursements. If the results of the blood 249.7 tests establish that the man who executed the recognition is not 249.8 the father, the court shall vacate the recognition. If a 249.9 recognition is vacated, any joinder in the recognition under 249.10 subdivision 1a is also vacated. The court shall terminate the 249.11 obligation of a party to pay ongoing child support based on the 249.12 recognition. A modification of child support based on a 249.13 recognition may be made retroactive with respect to any period 249.14 during which the moving party has pending a motion to vacate the 249.15 recognition but only from the date of service of notice of the 249.16 motion on the responding party. 249.17 (b) The burden of proof in an action to vacate the 249.18 recognition is on the moving party. The moving party must 249.19 request the vacation on the basis of fraud, duress, or material 249.20 mistake of fact. The legal responsibilities in existence at the 249.21 time of an action to vacate, including child support 249.22 obligations, may not be suspended during the proceeding, except 249.23 for good cause shown. 249.24 Sec. 36. Minnesota Statutes 1996, section 257.75, 249.25 subdivision 5, is amended to read: 249.26 Subd. 5. [RECOGNITION FORM.] The commissioner of human 249.27 services shall prepare a form for the recognition of parentage 249.28 under this section. In preparing the form, the commissioner 249.29 shall consult with the individuals specified in subdivision 6. 249.30 The recognition form must be drafted so that the force and 249.31 effect of the recognition, the alternatives to executing a 249.32 recognition, and the benefits and responsibilities of 249.33 establishing paternity are clear and understandable. The form 249.34 must include a notice regarding the finality of a recognition 249.35 and the revocation procedure under subdivision 2. The form must 249.36 include a provision for each parent to verify that the parent 250.1 has read or viewed the educational materials prepared by the 250.2 commissioner of human services describing the recognition of 250.3 paternity. If feasible, the individual providing the form to 250.4 the parents for execution shall provide oral notice of the 250.5 rights, responsibilities, and alternatives to executing the 250.6 recognition. Notice may be provided by audio tape, videotape, 250.7 or similar means. Each parent must receive a copy of the 250.8 recognition. 250.9 Sec. 37. Minnesota Statutes 1996, section 257.75, 250.10 subdivision 7, is amended to read: 250.11 Subd. 7. [HOSPITAL AND DEPARTMENT OF HEALTH DISTRIBUTION 250.12 OF EDUCATIONAL MATERIALS; RECOGNITION FORM.] Hospitals that 250.13 provide obstetric services and the state registrar of vital 250.14 statistics shall distribute the educational materials and 250.15 recognition of parentage forms prepared by the commissioner of 250.16 human services to new parents and shall assist parents in 250.17 understanding the recognition of parentage form., including 250.18 following the provisions for notice under subdivision 5. On and 250.19 after January 1, 1994, hospitals may not distribute the 250.20 declaration of parentage forms. 250.21 Sec. 38. Minnesota Statutes 1996, section 299C.46, 250.22 subdivision 3, is amended to read: 250.23 Subd. 3. [AUTHORIZED USE, FEE.] (a) The data 250.24 communications network shall be used exclusively by: 250.25 (1) criminal justice agencies in connection with the 250.26 performance of duties required by law; 250.27 (2) agencies investigating federal security clearances of 250.28 individuals for assignment or retention in federal employment 250.29 with duties related to national security, as required by Public 250.30 Law Number 99-1691;and250.31 (3) other agencies to the extent necessary to provide for 250.32 protection of the public or property in an emergency or disaster 250.33 situation.; and 250.34 (4) the public authority responsible for child support 250.35 enforcement in connection with the performance of its duties. 250.36 (b) The commissioner of public safety shall establish a 251.1 monthly network access charge to be paid by each participating 251.2 criminal justice agency. The network access charge shall be a 251.3 standard fee established for each terminal, computer, or other 251.4 equipment directly addressable by the criminal justice data 251.5 communications network, as follows: January 1, 1984 to December 251.6 31, 1984, $40 connect fee per month; January 1, 1985 and 251.7 thereafter, $50 connect fee per month. 251.8 (c) The commissioner of public safety is authorized to 251.9 arrange for the connection of the data communications network 251.10 with the criminal justice information system of the federal 251.11 government, any adjacent state, or Canada. 251.12 Sec. 39. Minnesota Statutes 1996, section 508.63, is 251.13 amended to read: 251.14 508.63 [REGISTRATION OF INSTRUMENTS CREATING LIENS; 251.15 JUDGMENTS.] 251.16 No judgment requiring the payment of money shall be a lien 251.17 upon registered land, except as herein provided. Any person 251.18 claiming such lien shall file with the registrar a certified 251.19 copy of the judgment, together with a written statement 251.20 containing a description of each parcel of land in which the 251.21 judgment debtor has a registered interest and upon which the 251.22 lien is claimed, and a proper reference to the certificate or 251.23 certificates of title to such land. Upon filing such copy and 251.24 statement, the registrar shall enter a memorial of such judgment 251.25 upon each certificate designated in such statement, and the 251.26 judgment shall thereupon be and become a lien upon the judgment 251.27 debtor's interest in the land described in such certificate or 251.28 certificates. At any time after filing the certified copy of 251.29 such judgment, any person claiming the lien may, by filing a 251.30 written statement, as herein provided, cause a memorial of such 251.31 judgment to be entered upon any certificate of title to land in 251.32 which the judgment debtor has a registered interest and not 251.33 described in any previous statement and the judgment shall 251.34 thereupon be and become a lien upon the judgment debtor's 251.35 interest in such land. The public authority for child support 251.36 enforcement may present for filing a notice of judgment lien 252.1 under section 548.091 with identifying information for a parcel 252.2 of real property. Upon receipt of the notice of judgment lien, 252.3 the registrar shall enter a memorial of it upon each certificate 252.4 which can reasonably be identified as owned by the judgment 252.5 debtor on the basis of the information provided. The judgment 252.6 shall survive and the lien thereof shall continue for a period 252.7 of ten years from the date of the judgment and no longer, and 252.8 the registrar of titles shall not carry forward to a new 252.9 certificate of title the memorial of the judgment after that 252.10 period. In every case where an instrument of any description, 252.11 or a copy of any writ, order, or decree, is required by law to 252.12 be filed or recorded in order to create or preserve any lien, 252.13 writ, or attachment upon unregistered land, such instrument or 252.14 copy, if intended to affect registered land, shall, in lieu of 252.15 recording, be filed and registered with the registrar. In 252.16 addition to any facts required by law to be stated in such 252.17 instruments to entitle them to be filed or recorded, they shall 252.18 also contain a reference to the number of the certificate of 252.19 title of the land to be affected, and, if the attachment, 252.20 charge, or lien is not claimed on all the land described in any 252.21 certificate of title, such instrument shall contain a 252.22 description sufficient to identify the land. 252.23 Sec. 40. Minnesota Statutes 1996, section 508A.63, is 252.24 amended to read: 252.25 508A.63 [REGISTRATION OF INSTRUMENTS CREATING LIENS; 252.26 JUDGMENTS.] 252.27 No judgment requiring the payment of money shall be a lien 252.28 upon land registered under sections 508A.01 to 508A.85, except 252.29 as herein provided. Any person claiming a lien shall file with 252.30 the registrar a certified copy of the judgment, together with a 252.31 written statement containing a description of each parcel of 252.32 land in which the judgment debtor has a registered interest and 252.33 upon which the lien is claimed, and a proper reference to the 252.34 CPT or CPTs to the land. Upon filing the copy and statement, 252.35 the registrar shall enter a memorial of the judgment upon each 252.36 CPT designated in the statement, and the judgment shall then be 253.1 and become a lien upon the judgment debtor's interest in the 253.2 land described in CPT or CPTs. At any time after filing the 253.3 certified copy of the judgment, any person claiming the lien 253.4 may, by filing a written statement, as herein provided, cause a 253.5 memorial of the judgment to be entered upon any CPT to land in 253.6 which the judgment debtor has a registered interest and not 253.7 described in any previous statement and the judgment shall then 253.8 be and become a lien upon the judgment debtor's interest in the 253.9 land. The public authority for child support enforcement may 253.10 present for filing a notice of judgment lien under section 253.11 548.091 with identifying information for a parcel of real 253.12 property. Upon receipt of the notice of judgment lien, the 253.13 registrar shall enter a memorial of it upon each certificate of 253.14 possessory title which reasonably can be identified as owned by 253.15 the judgment debtor on the basis of the information provided. 253.16 The judgment shall survive and the lien thereof shall continue 253.17 for a period of ten years from the date of the judgment and no 253.18 longer; and the registrar shall not carry forward to a new 253.19 certificate of title the memorial of the judgment after that 253.20 period. In every case where an instrument of any description, 253.21 or a copy of any writ, order, or decree, is required by law to 253.22 be filed or recorded in order to create or preserve any lien, 253.23 writ, or attachment upon unregistered land, the instrument or 253.24 copy, if intended to affect registered land, shall, in lieu of 253.25 recording, be filed and registered with the registrar. In 253.26 addition to any facts required by law to be stated in the 253.27 instruments to entitle them to be filed or recorded, they shall 253.28 also contain a reference to the number of the CPT of the land to 253.29 be affected. If the attachment, charge, or lien is not claimed 253.30 on all the land described in any CPT, the instrument shall 253.31 contain a description sufficient to identify the land. 253.32 Sec. 41. Minnesota Statutes 1996, section 518.005, is 253.33 amended by adding a subdivision to read: 253.34 Subd. 5. [PROHIBITED DISCLOSURE.] In all proceedings under 253.35 this chapter in which public assistance is assigned under 253.36 section 256.741 or the public authority provides services to a 254.1 party or parties to the proceedings, notwithstanding statutory 254.2 or other authorization for the public authority to release 254.3 private data on the location of a party to the action, 254.4 information on the location of one party may not be released by 254.5 the public authority to the other party if: 254.6 (1) the public authority has knowledge that a protective 254.7 order with respect to the other party has been entered; or 254.8 (2) the public authority has reason to believe that the 254.9 release of the information may result in physical or emotional 254.10 harm to the other party. 254.11 Sec. 42. Minnesota Statutes 1996, section 518.10, is 254.12 amended to read: 254.13 518.10 [REQUISITES OF PETITION.] 254.14 The petition for dissolution of marriage or legal 254.15 separation shall state and allege: 254.16 (a) The nameand, address, and, in circumstances in which 254.17 child support or spousal maintenance will be addressed, social 254.18 security number of the petitioner and any prior or other name 254.19 used by the petitioner; 254.20 (b) The name and, if known, the address and, in 254.21 circumstances in which child support or spousal maintenance will 254.22 be addressed, social security number of the respondent and any 254.23 prior or other name used by the respondent and known to the 254.24 petitioner; 254.25 (c) The place and date of the marriage of the parties; 254.26 (d) In the case of a petition for dissolution, that either 254.27 the petitioner or the respondent or both: 254.28 (1) Has resided in this state for not less than 180 days 254.29 immediately preceding the commencement of the proceeding, or 254.30 (2) Has been a member of the armed services and has been 254.31 stationed in this state for not less than 180 days immediately 254.32 preceding the commencement of the proceeding, or 254.33 (3) Has been a domiciliary of this state for not less than 254.34 180 days immediately preceding the commencement of the 254.35 proceeding; 254.36 (e) The name at the time of the petition and any prior or 255.1 other name, age and date of birth of each living minor or 255.2 dependent child of the parties born before the marriage or born 255.3 or adopted during the marriage and a reference to, and the 255.4 expected date of birth of, a child of the parties conceived 255.5 during the marriage but not born; 255.6 (f) Whether or not a separate proceeding for dissolution, 255.7 legal separation, or custody is pending in a court in this state 255.8 or elsewhere; 255.9 (g) In the case of a petition for dissolution, that there 255.10 has been an irretrievable breakdown of the marriage 255.11 relationship; 255.12 (h) In the case of a petition for legal separation, that 255.13 there is a need for a decree of legal separation; and 255.14 (i) Any temporary or permanent maintenance, child support, 255.15 child custody, disposition of property, attorneys' fees, costs 255.16 and disbursements applied for without setting forth the amounts. 255.17 The petition shall be verified by the petitioner or 255.18 petitioners, and its allegations established by competent 255.19 evidence. 255.20 Sec. 43. Minnesota Statutes 1996, section 518.148, 255.21 subdivision 2, is amended to read: 255.22 Subd. 2. [REQUIRED INFORMATION.] The certificate shall 255.23 include the following information: 255.24 (1) the full caption and file number of the case and the 255.25 title "Certificate of Dissolution"; 255.26 (2) the names and any prior or other names of the parties 255.27 to the dissolution; 255.28 (3) the names of any living minor or dependent children as 255.29 identified in the judgment and decree; 255.30 (4) that the marriage of the parties is dissolved;and255.31 (5) the date of the judgment and decree.; and 255.32 (6) the social security number of the parties to the 255.33 dissolution and the social security number of any living minor 255.34 or dependent children identified in the judgment and decree. 255.35 Sec. 44. Minnesota Statutes 1996, section 518.171, 255.36 subdivision 1, is amended to read: 256.1 Subdivision 1. [ORDER.] Compliance with this section 256.2 constitutes compliance with a qualified medical child support 256.3 order as described in the federal Employee Retirement Income 256.4 Security Act of 1974 (ERISA) as amended by the federal Omnibus 256.5 Budget Reconciliation Act of 1993 (OBRA). 256.6 (a) Every child support order must: 256.7 (1) expressly assign or reserve the responsibility for 256.8 maintaining medical insurance for the minor children and the 256.9 division of uninsured medical and dental costs; and 256.10 (2) contain the namesand, last known addresses,if anyand 256.11 social security number of the custodial parent and noncustodial 256.12 parent, of the dependents unless the court prohibits the 256.13 inclusion of an address or social security number and orders the 256.14 custodial parent to provide the address and social security 256.15 number to the administrator of the health plan. The court shall 256.16 order the party with the better group dependent health and 256.17 dental insurance coverage or health insurance plan to name the 256.18 minor child as beneficiary on any health and dental insurance 256.19 plan that is available to the party on: 256.20 (i) a group basis; 256.21 (ii) through an employer or union; or 256.22 (iii) through a group health plan governed under the ERISA 256.23 and included within the definitions relating to health plans 256.24 found in section 62A.011, 62A.048, or 62E.06, subdivision 2. 256.25 "Health insurance" or "health insurance coverage" as used in 256.26 this section means coverage that is comparable to or better than 256.27 a number two qualified plan as defined in section 62E.06, 256.28 subdivision 2. "Health insurance" or "health insurance 256.29 coverage" as used in this section does not include medical 256.30 assistance provided under chapter 256, 256B, or 256D. 256.31 (b) If the court finds that dependent health or dental 256.32 insurance is not available to the obligor or obligee on a group 256.33 basis or through an employer or union, or that group insurance 256.34 is not accessible to the obligee, the court may require the 256.35 obligor (1) to obtain other dependent health or dental 256.36 insurance, (2) to be liable for reasonable and necessary medical 257.1 or dental expenses of the child, or (3) to pay no less than $50 257.2 per month to be applied to the medical and dental expenses of 257.3 the children or to the cost of health insurance dependent 257.4 coverage. 257.5 (c) If the court finds that the available dependent health 257.6 or dental insurance does not pay all the reasonable and 257.7 necessary medical or dental expenses of the child, including any 257.8 existing or anticipated extraordinary medical expenses, and the 257.9 court finds that the obligor has the financial ability to 257.10 contribute to the payment of these medical or dental expenses, 257.11 the court shall require the obligor to be liable for all or a 257.12 portion of the medical or dental expenses of the child not 257.13 covered by the required health or dental plan. Medical and 257.14 dental expenses include, but are not limited to, necessary 257.15 orthodontia and eye care, including prescription lenses. 257.16 (d) Unless otherwise agreed by the parties and approved by 257.17 the court, if the court finds that the obligee is not receiving 257.18 public assistance for the child and has the financial ability to 257.19 contribute to the cost of medical and dental expenses for the 257.20 child, including the cost of insurance, the court shall order 257.21 the obligee and obligor to each assume a portion of these 257.22 expenses based on their proportionate share of their total net 257.23 income as defined in section 518.54, subdivision 6. 257.24 (e) Payments ordered under this section are subject to 257.25 section 518.611. An obligee who fails to apply payments 257.26 received to the medical expenses of the dependents may be found 257.27 in contempt of this order. 257.28 Sec. 45. Minnesota Statutes 1996, section 518.171, 257.29 subdivision 4, is amended to read: 257.30 Subd. 4. [EFFECT OF ORDER.] (a) The order is binding on 257.31 the employer or union and the health and dental insurance plan 257.32 when service under subdivision 3 has been made. In the case of 257.33 an obligor who changes employment and is required to provide 257.34 health coverage for the child, a new employer that provides 257.35 health care coverage shall enroll the child in the obligor's 257.36 health plan upon receipt of an order or notice for health 258.1 insurance, unless the obligor contests the enrollment. The 258.2 obligor may contest the enrollment on the limited grounds that 258.3 the enrollment is improper due to mistake of fact or that the 258.4 enrollment meets the requirements of section 518.64, subdivision 258.5 2. If the obligor chooses to contest the enrollment, the 258.6 obligor must do so no later than 15 days after the employer 258.7 notifies the obligor of the enrollment, by doing all of the 258.8 following: 258.9 (i) filing a request for contested hearing according to 258.10 section 518.5511, subdivision 3a; 258.11 (ii) serving a copy of the request for contested hearing 258.12 upon the public authority and the obligee; and 258.13 (iii) securing a date for the contested hearing no later 258.14 than 45 days after the notice of enrollment. 258.15 (b) The enrollment must remain in place during the time 258.16 period in which the obligor contests the withholding. 258.17 (c) If the court finds that an arrearage of at least 30 258.18 days existed as of the date of the notice of withholding, the 258.19 court shall order income withholding to continue. If the court 258.20 finds a mistake in the amount of the arrearage to be withheld, 258.21 the court shall continue the income withholding, but it shall 258.22 correct the amount of the arrearage to be withheld. An employer 258.23 or union that is included under ERISA may not deny enrollment 258.24 based on exclusionary clauses described in section 62A.048. 258.25 Uponreceipt of the order, or uponapplication of the 258.26 obligorpursuantaccording to the order or notice, the employer 258.27 or union and its health and dental insurance plan shall enroll 258.28 the minor child as a beneficiary in the group insurance plan and 258.29 withhold any required premium from the obligor's income or 258.30 wages. If more than one plan is offered by the employer or 258.31 union, the child shall be enrolled in the least costly health 258.32 insurance plan otherwise available to the obligor that is 258.33 comparable to a number two qualified plan. If the obligor is 258.34 not enrolled in a health insurance plan, the employer or union 258.35 shall also enroll the obligor in the chosen plan if enrollment 258.36 of the obligor is necessary in order to obtain dependent 259.1 coverage under the plan. Enrollment of dependents and the 259.2 obligor shall be immediate and not dependent upon open 259.3 enrollment periods. Enrollment is not subject to the 259.4 underwriting policies described in section 62A.048. 259.5 (b) An employer or union that willfully fails to comply 259.6 with the order is liable for any health or dental expenses 259.7 incurred by the dependents during the period of time the 259.8 dependents were eligible to be enrolled in the insurance 259.9 program, and for any other premium costs incurred because the 259.10 employer or union willfully failed to comply with the order. An 259.11 employer or union that fails to comply with the order is subject 259.12 to contempt under section 518.615 and is also subject to a fine 259.13 of $500 to be paid to the obligee or public authority. Fines 259.14 paid to the public authority are designated for child support 259.15 enforcement services. 259.16 (c) Failure of the obligor to execute any documents 259.17 necessary to enroll the dependent in the group health and dental 259.18 insurance plan will not affect the obligation of the employer or 259.19 union and group health and dental insurance plan to enroll the 259.20 dependent in a plan. Information and authorization provided by 259.21 the public authority responsible for child support enforcement, 259.22 or by the custodial parent or guardian, is valid for the 259.23 purposes of meeting enrollment requirements of the health plan. 259.24 The insurance coverage for a child eligible under subdivision 5 259.25 shall not be terminated except as authorized in subdivision 5. 259.26 Sec. 46. Minnesota Statutes 1996, section 518.54, is 259.27 amended by adding a subdivision to read: 259.28 Subd. 4a. [SUPPORT ORDER.] "Support order" means a 259.29 judgment, decree, or order, whether temporary, final, or subject 259.30 to modification, issued by a court or administrative agency of 259.31 competent jurisdiction, for the support and maintenance of a 259.32 child, including a child who has attained the age of majority 259.33 under the law of the issuing state, or a child and the parent 259.34 with whom the child is living, that provides for monetary 259.35 support, child care, medical support including expenses for 259.36 confinement and pregnancy, arrearages, or reimbursement, and 260.1 which may include related costs and fees, interest and 260.2 penalties, income withholding, and other relief. This definition 260.3 applies to orders issued under this chapter and chapters 256, 260.4 257, and 518C. 260.5 Sec. 47. Minnesota Statutes 1996, section 518.54, 260.6 subdivision 6, is amended to read: 260.7 Subd. 6. [INCOME.] "Income" means any form of periodic 260.8 payment to an individual including, but not limited to, wages, 260.9 salaries, payments to an independent contractor, workers' 260.10 compensation, reemployment insurance, annuity, military and 260.11 naval retirement, pension and disability payments. Benefits 260.12 received undersections 256.72 to 256.87 and chapter 256DTitle 260.13 IV-A of the Social Security Act are not income under this 260.14 section. 260.15 Sec. 48. Minnesota Statutes 1996, section 518.551, 260.16 subdivision 12, is amended to read: 260.17 Subd. 12. [OCCUPATIONAL LICENSE SUSPENSION.] (a) Upon 260.18 motion of an obligee, if the court finds that the obligor is or 260.19 may be licensed by a licensing board listed in section 214.01 or 260.20 other state, county, or municipal agency or board that issues an 260.21 occupational license and the obligor is in arrears in 260.22 court-ordered child support or maintenance payments or both in 260.23 an amount equal to or greater than three times the obligor's 260.24 total monthly support and maintenance payments and is not in 260.25 compliance with a written payment agreement regarding both 260.26 current support and arrearages approved by the court, an 260.27 administrative law judge, or the public authority, the 260.28 administrative law judge, or the court shall direct the 260.29 licensing board or other licensing agency to suspend the license 260.30 under section 214.101. The court's order must be stayed for 90 260.31 days in order to allow the obligor to execute a written payment 260.32 agreement regarding both current support and arrearages. The 260.33 payment agreement must be approved by either the court or the 260.34 public authority responsible for child support enforcement. If 260.35 the obligor has not executed or is not in compliance with a 260.36 written payment agreement regarding both current support and 261.1 arrearages after the 90 days expires, the court's order becomes 261.2 effective. If the obligor is a licensed attorney, the court 261.3 shall report the matter to the lawyers professional 261.4 responsibility board for appropriate action in accordance with 261.5 the rules of professional conduct. The remedy under this 261.6 subdivision is in addition to any other enforcement remedy 261.7 available to the court. 261.8 (b) If a public authority responsible for child support 261.9 enforcement finds that the obligor is or may be licensed by a 261.10 licensing board listed in section 214.01 or other state, county, 261.11 or municipal agency or board that issues an occupational license 261.12 and the obligor is in arrears in court-ordered child support or 261.13 maintenance payments or both in an amount equal to or greater 261.14 than three times the obligor's total monthly support and 261.15 maintenance payments and is not in compliance with a written 261.16 payment agreement regarding both current support and arrearages 261.17 approved by the court, an administrative law judge, or the 261.18 public authority, the court, an administrative law judge, or the 261.19 public authority shall direct the licensing board or other 261.20 licensing agency to suspend the license under section 214.101. 261.21 If the obligor is a licensed attorney, the public authority may 261.22 report the matter to the lawyers professional responsibility 261.23 board for appropriate action in accordance with the rules of 261.24 professional conduct. The remedy under this subdivision is in 261.25 addition to any other enforcement remedy available to the public 261.26 authority. 261.27 (c) At least 90 days before notifying a licensing authority 261.28 or the lawyers professional responsibility board under paragraph 261.29 (b), the public authority shall mail a written notice to the 261.30 license holder addressed to the license holder's last known 261.31 address that the public authority intends to seek license 261.32 suspension under this subdivision and that the license holder 261.33 must request a hearing within 30 days in order to contest the 261.34 suspension. If the license holder makes a written request for a 261.35 hearing within 30 days of the date of the notice, either a court 261.36 hearing or a contested administrative proceeding must be held 262.1 under section 518.5511, subdivision 4. Notwithstanding any law 262.2 to the contrary, the license holder must be served with 14 days' 262.3 notice in writing specifying the time and place of the hearing 262.4 and the allegations against the license holder. The notice may 262.5 be served personally or by mail. If the public authority does 262.6 not receive a request for a hearing within 30 days of the date 262.7 of the notice, and the obligor does not execute a written 262.8 payment agreement regarding both current support and arrearages 262.9 approved by thecourt, an administrative law judge or thepublic 262.10 authority within 90 days of the date of the notice, the public 262.11 authority shall direct the licensing board or other licensing 262.12 agency to suspend the obligor's license under paragraph (b), or 262.13 shall report the matter to the lawyers professional 262.14 responsibility board. 262.15 (d) The administrative law judge, on behalf of the public 262.16 authority, or the court shall notify the lawyers professional 262.17 responsibility board for appropriate action in accordance with 262.18 the rules of professional responsibility conduct or order the 262.19 licensing board or licensing agency to suspend the license if 262.20 the judge finds that: 262.21 (1) the person is licensed by a licensing board or other 262.22 state agency that issues an occupational license; 262.23 (2) the person has not made full payment of arrearages 262.24 found to be due by the public authority; and 262.25 (3) the person has not executed or is not in compliance 262.26 with a payment plan approved by the court, an administrative law 262.27 judge, or the public authority. 262.28 (e) Within 15 days of the date on which the obligor either 262.29 makes full payment of arrearages found to be due by the court or 262.30 public authority or executes and initiates good faith compliance 262.31 with a written payment plan approved by the court, an 262.32 administrative law judge, or the public authority, the court, an 262.33 administrative law judge, or the public authority responsible 262.34 for child support enforcement shall notify the licensing board 262.35 or licensing agency or the lawyers professional responsibility 262.36 board that the obligor is no longer ineligible for license 263.1 issuance, reinstatement, or renewal under this subdivision. 263.2 (f) In addition to the criteria established under this 263.3 section for the suspension of an obligor's occupational license, 263.4 a court, an administrative law judge, or the public authority 263.5 may direct the licensing board or other licensing agency to 263.6 suspend the license of an obligor who has failed, after 263.7 receiving notice, to comply with a subpoena or warrant relating 263.8 to a paternity or child support proceeding. 263.9 Sec. 49. Minnesota Statutes 1996, section 518.551, 263.10 subdivision 13, is amended to read: 263.11 Subd. 13. [DRIVER'S LICENSE SUSPENSION.] (a) Upon motion 263.12 of an obligee, which has been properly served on the obligor and 263.13 upon which there has been an opportunity for hearing, if a court 263.14 finds that the obligor has been or may be issued a driver's 263.15 license by the commissioner of public safety and the obligor is 263.16 in arrears in court-ordered child support or maintenance 263.17 payments, or both, in an amount equal to or greater than three 263.18 times the obligor's total monthly support and maintenance 263.19 payments and is not in compliance with a written payment 263.20 agreement regarding both current support and arrearages approved 263.21 by the court, an administrative law judge, or the public 263.22 authority, the court shall order the commissioner of public 263.23 safety to suspend the obligor's driver's license. The court's 263.24 order must be stayed for 90 days in order to allow the obligor 263.25 to execute a written payment agreement regarding both current 263.26 support and arrearages, which payment agreement must be approved 263.27 by either the court or the public authority responsible for 263.28 child support enforcement. If the obligor has not executed or 263.29 is not in compliance with a written payment agreement regarding 263.30 both current support and arrearages after the 90 days expires, 263.31 the court's order becomes effective and the commissioner of 263.32 public safety shall suspend the obligor's driver's license. The 263.33 remedy under this subdivision is in addition to any other 263.34 enforcement remedy available to the court. An obligee may not 263.35 bring a motion under this paragraph within 12 months of a denial 263.36 of a previous motion under this paragraph. 264.1 (b) If a public authority responsible for child support 264.2 enforcement determines that the obligor has been or may be 264.3 issued a driver's license by the commissioner of public safety 264.4 and the obligor is in arrears in court-ordered child support or 264.5 maintenance payments or both in an amount equal to or greater 264.6 than three times the obligor's total monthly support and 264.7 maintenance payments and not in compliance with a written 264.8 payment agreement regarding both current support and arrearages 264.9 approved by the court, an administrative law judge, or the 264.10 public authority, the public authority shall direct the 264.11 commissioner of public safety to suspend the obligor's driver's 264.12 license. The remedy under this subdivision is in addition to 264.13 any other enforcement remedy available to the public authority. 264.14 (c) At least 90 days prior to notifying the commissioner of 264.15 public safetypursuantaccording to paragraph (b), the public 264.16 authority must mail a written notice to the obligor at the 264.17 obligor's last known address, that it intends to seek suspension 264.18 of the obligor's driver's license and that the obligor must 264.19 request a hearing within 30 days in order to contest the 264.20 suspension. If the obligor makes a written request for a 264.21 hearing within 30 days of the date of the notice, either a court 264.22 hearing or a contested administrative proceeding must be held 264.23 under section 518.5511, subdivision 4. Notwithstanding any law 264.24 to the contrary, the obligor must be served with 14 days' notice 264.25 in writing specifying the time and place of the hearing and the 264.26 allegations against the obligor. The notice may be served 264.27 personally or by mail. If the public authority does not receive 264.28 a request for a hearing within 30 days of the date of the 264.29 notice, and the obligor does not execute a written payment 264.30 agreement regarding both current support and arrearages approved 264.31 bythe court, an administrative law judge, orthe public 264.32 authority within 90 days of the date of the notice, the public 264.33 authority shall direct the commissioner of public safety to 264.34 suspend the obligor's driver's license under paragraph (b). 264.35 (d) At a hearing requested by the obligor under paragraph 264.36 (c), and on finding that the obligor is in arrears in 265.1 court-ordered child support or maintenance payments or both in 265.2 an amount equal to or greater than three times the obligor's 265.3 total monthly support and maintenance payments, the district 265.4 court or the administrative law judge shall order the 265.5 commissioner of public safety to suspend the obligor's driver's 265.6 license or operating privileges unless the court or 265.7 administrative law judge determines that the obligor has 265.8 executed and is in compliance with a written payment agreement 265.9 regarding both current support and arrearages approved by the 265.10 court, an administrative law judge, or the public authority. 265.11 (e) An obligor whose driver's license or operating 265.12 privileges are suspended may provide proof to the court or the 265.13 public authority responsible for child support enforcement that 265.14 the obligor is in compliance with all written payment agreements 265.15 regarding both current support and arrearages. Within 15 days 265.16 of the receipt of that proof, the court or public authority 265.17 shall inform the commissioner of public safety that the 265.18 obligor's driver's license or operating privileges should no 265.19 longer be suspended. 265.20 (f) On January 15, 1997, and every two years after that, 265.21 the commissioner of human services shall submit a report to the 265.22 legislature that identifies the following information relevant 265.23 to the implementation of this section: 265.24 (1) the number of child support obligors notified of an 265.25 intent to suspend a driver's license; 265.26 (2) the amount collected in payments from the child support 265.27 obligors notified of an intent to suspend a driver's license; 265.28 (3) the number of cases paid in full and payment agreements 265.29 executed in response to notification of an intent to suspend a 265.30 driver's license; 265.31 (4) the number of cases in which there has been 265.32 notification and no payments or payment agreements; 265.33 (5) the number of driver's licenses suspended; and 265.34 (6) the cost of implementation and operation of the 265.35 requirements of this section. 265.36 (g) In addition to the criteria established under this 266.1 section for the suspension of an obligor's driver's license, a 266.2 court, an administrative law judge, or the public authority may 266.3 direct the commissioner of public safety to suspend the license 266.4 of an obligor who has failed, after receiving notice, to comply 266.5 with a subpoena or warrant relating to a paternity or child 266.6 support proceeding. 266.7 Sec. 50. Minnesota Statutes 1996, section 518.5512, is 266.8 amended by adding a subdivision to read: 266.9 Subd. 6. [ADMINISTRATIVE AUTHORITY.] (a) In each case in 266.10 which support rights are assigned under section 256.741, 266.11 subdivision 1, or where the public authority is providing 266.12 services under an application for child support services, a 266.13 nonattorney employee of the public authority may, without 266.14 requirement of a court order: 266.15 (1) recognize and enforce orders of child support agencies 266.16 of other states; 266.17 (2) compel by subpoena the production of all papers, books, 266.18 records, documents, or other evidentiary material needed to 266.19 establish a parentage or child support order or to modify or 266.20 enforce a child support order; 266.21 (3) change the payee to the appropriate person, 266.22 organization, or agency authorized to receive or collect child 266.23 support or any other person or agency designated as the 266.24 caretaker of the child by agreement of the legal custodian or by 266.25 court order; 266.26 (4) order income withholding of child support under section 266.27 518.611; 266.28 (5) secure assets to satisfy the debt or arrearage in cases 266.29 in which there is a support debt or arrearage by: 266.30 (i) intercepting or seizing periodic or lump-sum payments 266.31 from state or local agencies, including reemployment insurance, 266.32 workers' compensation payments, judgments, settlements, and 266.33 lotteries; 266.34 (ii) attaching and seizing assets of the obligor held in 266.35 financial institutions or public or private retirement funds; 266.36 and 267.1 (iii) imposing liens and, in appropriate cases, forcing the 267.2 sale of property and the distribution of proceeds; and 267.3 (6) increase the amount of the monthly support payments to 267.4 include amounts for debts or arrearages for the purpose of 267.5 securing overdue support. 267.6 (b) Subpoenas may be served anywhere within the state and 267.7 served outside the state in the same manner as prescribed by law 267.8 for service of process of subpoenas issued by the district court 267.9 of this state. When a subpoena under this subdivision is served 267.10 on a third-party recordkeeper, written notice of the subpoena 267.11 shall be mailed to the person who is the subject of the 267.12 subpoenaed material at the person's last known address within 267.13 three days of the day the subpoena is served. This notice 267.14 provision does not apply if there is reasonable cause to believe 267.15 the giving of the notice may lead to interference with the 267.16 production of the subpoenaed documents. 267.17 (c) A person served with a subpoena may make a written 267.18 objection to the public authority or court before the time 267.19 specified in the subpoena for compliance. The public authority 267.20 or the court shall cancel or modify the subpoena, if 267.21 appropriate. The public authority shall pay the reasonable 267.22 costs of producing the documents, if requested. 267.23 (d) Subpoenas shall be enforceable in the same manner as 267.24 subpoenas of the district court, in proceedings initiated by 267.25 complaint of the public authority in the district court. 267.26 Sec. 51. Minnesota Statutes 1996, section 518.5512, is 267.27 amended by adding a subdivision to read: 267.28 Subd. 7. [CONTROLLING ORDER DETERMINATION.] The public 267.29 authority or a party may request the office of administrative 267.30 hearings to determine a controlling order according to section 267.31 518C.207, paragraph (c). 267.32 Sec. 52. [518.6111] [INCOME WITHHOLDING.] 267.33 Subdivision 1. [DEFINITIONS.] (a) For the purpose of this 267.34 section, the following terms have the meanings provided in this 267.35 subdivision unless otherwise stated. 267.36 (b) "Payor of funds" means any person or entity that 268.1 provides funds to an obligor, including an employer as defined 268.2 under chapter 24 of the Internal Revenue Code, section 3401(d), 268.3 an independent contractor, payor of workers' compensation 268.4 benefits or reemployment insurance, or a financial institution 268.5 as defined in section 256.978, subdivision 2, paragraph (b). 268.6 (c) "Business day" means a day on which state offices are 268.7 open for regular business. 268.8 (d) "Arrears" means amounts owed under a support order that 268.9 are past due. 268.10 Subd. 2. [APPLICATION.] This section applies to all 268.11 support orders issued by a court or an administrative tribunal 268.12 and orders for or notices of withholding issued by the public 268.13 authority according to section 518.5512, subdivision 6, 268.14 paragraph (a), clause (4). 268.15 Subd. 3. [ORDER.] Every support order must address income 268.16 withholding. Whenever a support order is initially entered or 268.17 modified, the full amount of the support order must be withheld 268.18 from the income of the obligor and forwarded to the public 268.19 authority. Every order for support or maintenance shall provide 268.20 for a conspicuous notice of the provisions of this section that 268.21 complies with section 518.68, subdivision 2. An order without 268.22 this notice remains subject to this section. This section 268.23 applies regardless of the source of income of the person 268.24 obligated to pay the support or maintenance. 268.25 A payor of funds shall implement income withholding 268.26 according to this section upon receipt of an order for or notice 268.27 of withholding. The notice of withholding shall be on a form 268.28 provided by the commissioner of human services. 268.29 Subd. 4. [COLLECTION SERVICES.] The commissioner of human 268.30 services shall prepare and make available to the courts a notice 268.31 of services that explains child support and maintenance 268.32 collection services available through the public authority, 268.33 including income withholding. Upon receiving a petition for 268.34 dissolution of marriage or legal separation, the court 268.35 administrator shall promptly send the notice of services to the 268.36 petitioner and respondent at the addresses stated in the 269.1 petition. 269.2 Upon receipt of a support order requiring income 269.3 withholding, a petitioner or respondent, who is not a recipient 269.4 of public assistance and does not receive child support services 269.5 from the public authority, shall apply to the public authority 269.6 for either full child support collection services or for income 269.7 withholding only services. 269.8 For those persons applying for income withholding only 269.9 services, a monthly service fee of $15 must be charged to the 269.10 obligor. This fee is in addition to the amount of the support 269.11 order and shall be withheld through income withholding. The 269.12 public authority shall explain the service options in this 269.13 section to the affected parties and encourage the application 269.14 for full child support collection services. 269.15 Subd. 5. [PAYOR OF FUNDS RESPONSIBILITIES.] (a) An order 269.16 for or notice of withholding is binding on a payor of funds upon 269.17 receipt. Withholding must begin no later than the first pay 269.18 period that occurs after 14 days following the date of receipt 269.19 of the order for or notice of withholding. In the case of a 269.20 financial institution, preauthorized transfers must occur in 269.21 accordance with a court-ordered payment schedule. 269.22 (b) A payor of funds shall withhold from the income payable 269.23 to the obligor the amount specified in the order or notice of 269.24 withholding and amounts specified under subdivisions 6 and 9 and 269.25 shall remit the amounts withheld to the public authority within 269.26 seven business days of the date the obligor is paid the 269.27 remainder of the income. The payor of funds shall include with 269.28 the remittance the social security number of the obligor, the 269.29 case type indicator, and the date the obligor is paid the 269.30 remainder of the income. The obligor is considered to have paid 269.31 the amount withheld as of the date the obligor received the 269.32 remainder of the income. A payor of funds may combine all 269.33 amounts withheld from one pay period into one payment to each 269.34 public authority, but shall separately identify each obligor 269.35 making payment. 269.36 (c) A payor of funds shall not discharge, or refuse to 270.1 hire, or otherwise discipline an employee as a result of wage or 270.2 salary withholding authorized by this section. A payor of funds 270.3 shall be liable to the obligee for any amounts required to be 270.4 withheld. A payor of funds that fails to withhold or transfer 270.5 funds in accordance with this section is also liable to the 270.6 obligee for interest on the funds at the rate applicable to 270.7 judgments under section 549.09 computed from the date the funds 270.8 were required to be withheld or transferred. A payor of funds 270.9 is liable for reasonable attorney fees of the obligee or public 270.10 authority incurred in enforcing the liability under this 270.11 paragraph. A payor of funds that has failed to comply with the 270.12 requirements of this section is subject to contempt sanctions 270.13 under section 518.615. If the payor of funds is an employer or 270.14 independent contractor and violates this subdivision, a court 270.15 may award the obligor twice the wages lost as a result of this 270.16 violation. If a court finds a payor of funds violated this 270.17 subdivision, the court shall impose a civil fine of not less 270.18 than $500. 270.19 (d) If a single employee is subject to multiple withholding 270.20 orders or multiple notices of withholding for the support of 270.21 more than one child, the payor of funds shall comply with all of 270.22 the orders or notices to the extent that the total amount 270.23 withheld from the obligor's income does not exceed the limits 270.24 imposed under the Consumer Credit Protection Act, United States 270.25 Code, title 15, section 1637(b), giving priority to amounts 270.26 designated in each order or notice as current support as follows: 270.27 (1) if the total of the amounts designated in the orders 270.28 for or notices of withholding as current support exceeds the 270.29 amount available for income withholding, the payor of funds 270.30 shall allocate to each order or notice an amount for current 270.31 support equal to the amount designated in that order or notice 270.32 as current support, divided by the total of the amounts 270.33 designated in the orders or notices as current support, 270.34 multiplied by the amount of the income available for income 270.35 withholding; and 270.36 (2) if the total of the amounts designated in the orders 271.1 for or notices of withholding as current support does not exceed 271.2 the amount available for income withholding, the payor of funds 271.3 shall pay the amounts designated as current support, and shall 271.4 allocate to each order or notice an amount for past due support, 271.5 equal to the amount designated in that order or notice as past 271.6 due support, divided by the total of the amounts designated in 271.7 the orders or notices as past due support, multiplied by the 271.8 amount of income remaining available for income withholding 271.9 after the payment of current support. 271.10 (e) When an order for or notice of withholding is in effect 271.11 and the obligor's employment is terminated, the obligor and the 271.12 payor of funds shall notify the public authority of the 271.13 termination within ten days of the termination date. The 271.14 termination notice shall include the obligor's home address and 271.15 the name and address of the obligor's new payor of funds, if 271.16 known. 271.17 (f) A payor of funds may deduct one dollar from the 271.18 obligor's remaining salary for each payment made pursuant to an 271.19 order for or notice of withholding under this section to cover 271.20 the expenses of withholding. 271.21 Subd. 6. [FINANCIAL INSTITUTIONS.] (a) If income 271.22 withholding is ineffective due to the obligor's method of 271.23 obtaining income, the court shall order the obligor to identify 271.24 a child support deposit account owned solely by the obligor, or 271.25 to establish an account, in a financial institution located in 271.26 this state for the purpose of depositing court-ordered child 271.27 support payments. The court shall order the obligor to execute 271.28 an agreement with the appropriate public authority for 271.29 preauthorized transfers from the obligor's child support account 271.30 payable to an account of the public authority. The court shall 271.31 order the obligor to disclose to the court all deposit accounts 271.32 owned by the obligor in whole or in part in any financial 271.33 institution. The court may order the obligor to disclose to the 271.34 court the opening or closing of any deposit account owned in 271.35 whole or in part by the obligor within 30 days of the opening or 271.36 closing. The court may order the obligor to execute an 272.1 agreement with the appropriate public authority for 272.2 preauthorized transfers from any deposit account owned in whole 272.3 or in part by the obligor to the obligor's child support deposit 272.4 account if necessary to satisfy court-ordered child support 272.5 payments. The court may order a financial institution to 272.6 disclose to the court the account number and any other 272.7 information regarding accounts owned in whole or in part by the 272.8 obligor. An obligor who fails to comply with this subdivision, 272.9 fails to deposit funds in at least one deposit account 272.10 sufficient to pay court-ordered child support, or stops payment 272.11 or revokes authorization of any preauthorized transfer is 272.12 subject to contempt of court procedures under chapter 588. 272.13 (b) A financial institution shall execute preauthorized 272.14 transfers for the deposit accounts of the obligor in the amount 272.15 specified in the order and amounts required under this section 272.16 as directed by the public authority. A financial institution is 272.17 liable to the obligee if funds in any of the obligor's deposit 272.18 accounts identified in the court order equal the amount stated 272.19 in the preauthorization agreement but are not transferred by the 272.20 financial institution in accordance with the agreement. 272.21 Subd. 7. [SUBSEQUENT INCOME WITHHOLDING.] (a) This 272.22 subdivision applies to support orders that do not contain 272.23 provisions for income withholding. 272.24 (b) For cases in which the public authority is providing 272.25 child support enforcement services to the parties, the income 272.26 withholding under this subdivision shall take effect without 272.27 prior judicial notice to the obligor and without the need for 272.28 judicial or administrative hearing. Withholding shall result 272.29 when: 272.30 (1) the obligor requests it in writing to the public 272.31 authority; 272.32 (2) the obligor fails to make the payments as required in 272.33 the support order and is at least 30 days in arrears; 272.34 (3) the obligee or obligor serves on the public authority a 272.35 copy of the notice of income withholding, a copy of the court's 272.36 order, an application, and the fee to use the public authority's 273.1 collection services; or 273.2 (4) the public authority commences withholding according to 273.3 section 518.5512, subdivision 6, paragraph (a), clause (4). 273.4 (c) For cases in which the public authority is not 273.5 providing child support services to the parties, income 273.6 withholding under this subdivision shall take effect when an 273.7 obligee requests it by making a written motion to the court and 273.8 the court finds that previous support has not been paid on a 273.9 timely consistent basis or that the obligor has threatened 273.10 expressly or otherwise to stop or reduce payments. 273.11 (d) Within two days after the public authority commences 273.12 withholding under this subdivision, the public authority shall 273.13 send to the obligor at the obligor's last known address, notice 273.14 that withholding has commenced. The notice shall include the 273.15 information provided to the payor of funds in the notice of 273.16 withholding. 273.17 Subd. 8. [CONTEST.] (a) The obligor may contest 273.18 withholding under subdivision 7 on the limited grounds that the 273.19 withholding or the amount withheld is improper due to mistake of 273.20 fact. If the obligor chooses to contest the withholding, the 273.21 obligor must do so no later than 15 days after the employer 273.22 commences withholding, by doing all of the following: 273.23 (1) file a request for contested hearing according to 273.24 section 518.5511, subdivision 4, and include in the request the 273.25 alleged mistake of fact; 273.26 (2) serve a copy of the request for contested hearing upon 273.27 the public authority and the obligee; and 273.28 (3) secure a date for the contested hearing no later than 273.29 45 days after receiving notice that withholding has commenced. 273.30 (b) The income withholding must remain in place while the 273.31 obligor contests the withholding. 273.32 (c) If the court finds that an arrearage of at least 30 273.33 days existed as of the date of the notice of withholding, the 273.34 court shall order income withholding to continue. If the court 273.35 finds a mistake in the amount of the arrearage to be withheld, 273.36 the court shall continue the income withholding, but it shall 274.1 correct the amount of the arrearage to be withheld. 274.2 Subd. 9. [PRIORITY.] (a) An order for or notice of 274.3 withholding under this section or execution or garnishment upon 274.4 a judgment for child support arrearage or preadjudicated 274.5 expenses shall have priority over an attachment, execution, 274.6 garnishment, or wage assignment and shall not be subject to the 274.7 statutory limitations on amounts levied against the income of 274.8 the obligor. Amounts withheld from an employee's income must 274.9 not exceed the maximum permitted under the Consumer Credit 274.10 Protection Act, United States Code, title 15, section 1673(b). 274.11 (b) If more than one order for or notice of withholding 274.12 exists involving the same obligor and child, the public 274.13 authority shall enforce the most current order or notice. An 274.14 order for or notice of withholding that was previously 274.15 implemented according to this section shall end as of the date 274.16 of the most current order. The public authority shall notify 274.17 the payor of funds to withhold under the most current 274.18 withholding order or notice. 274.19 Subd. 10. [ARREARAGE ORDER.] (a) This section does not 274.20 prevent the court from ordering the payor of funds to withhold 274.21 amounts to satisfy the obligor's previous arrearage in support 274.22 order payments. This remedy shall not operate to exclude 274.23 availability of other remedies to enforce judgments. The 274.24 employer or payor of funds shall withhold from the obligor's 274.25 income an additional amount equal to 20 percent of the monthly 274.26 child support or maintenance obligation until the arrearage is 274.27 paid. 274.28 (b) Notwithstanding any law to the contrary, funds from 274.29 income sources included in section 518.54, subdivision 6, 274.30 whether periodic or lump sum, are not exempt from attachment or 274.31 execution upon a judgment for child support arrearage. 274.32 (c) Absent an order to the contrary, if an arrearage exists 274.33 at the time a support order would otherwise terminate, income 274.34 withholding shall continue in effect or may be implemented in an 274.35 amount equal to the support order plus an additional 20 percent 274.36 of the monthly child support obligation, until all arrears have 275.1 been paid in full. 275.2 Subd. 11. [LUMP-SUM PAYMENTS.] Before transmittal to the 275.3 obligor of a lump-sum payment of $500 or more including, but not 275.4 limited to, severance pay, accumulated sick pay, vacation pay, 275.5 bonuses, commissions, or other pay or benefits, a payor of funds: 275.6 (1) who has been served with an order for or notice of 275.7 income withholding under this section shall: 275.8 (i) notify the public authority of the lump-sum payment 275.9 that is to be paid to the obligor; 275.10 (ii) hold the lump sum payment for 30 days after the date 275.11 on which the lump sum payment would otherwise have been paid to 275.12 the obligor, notwithstanding sections 181.08, 181.101, 181.11, 275.13 181.13, and 181.145; and 275.14 (iii) upon order of the court, and after a showing of past 275.15 willful nonpayment of support, pay any specified amount of the 275.16 lump-sum payment to the public authority for future support; or 275.17 (2) shall pay the lessor of the amount of the lump-sum 275.18 payment or the total amount of the judgment and arrearages upon 275.19 service by United States mail of a sworn affidavit from the 275.20 public authority or a court order that includes the following 275.21 information: 275.22 (i) that a judgment entered pursuant to section 548.091, 275.23 subdivision 1a, exists against the obligor, or that other 275.24 support arrearages exist; 275.25 (ii) the current balance of the judgment or arrearage; and 275.26 (iii) that a portion of the judgment or arrearage remains 275.27 unpaid. 275.28 The Consumer Credit Protection Act, United States Code, 275.29 title 15, section 1673(b), does not apply to lump-sum payments. 275.30 Subd. 12. [INTERSTATE INCOME WITHHOLDING.] (a) Upon 275.31 receipt of an order for support entered in another state and the 275.32 specified documentation from an authorized agency, the public 275.33 authority shall implement income withholding. A payor of funds 275.34 in this state shall withhold income under court orders for 275.35 withholding issued by other states or territories. 275.36 (b) An employer receiving an income withholding notice from 276.1 another state shall withhold and distribute the funds as 276.2 directed in the withholding notice and shall apply the law of 276.3 the obligor's principal place of employment when determining: 276.4 (1) the employer's fee for processing an income withholding 276.5 notice; 276.6 (2) the maximum amount permitted to be withheld from the 276.7 obligor's income; and 276.8 (3) deadlines for implementing and forwarding the child 276.9 support payment. 276.10 (c) An obligor may contest withholding under this 276.11 subdivision pursuant to section 518C.506. 276.12 Subd. 13. [ORDER TERMINATING INCOME WITHHOLDING.] An order 276.13 terminating income withholding must specify the effective date 276.14 of the order and reference the initial order or decree that 276.15 establishes the support obligation and shall be entered once the 276.16 following conditions have been met: 276.17 (1) the obligor serves written notice of the application 276.18 for termination of income withholding by mail upon the obligee 276.19 at the obligee's last known mailing address, and a duplicate 276.20 copy of the application is served on the public authority; 276.21 (2) the application for termination of income withholding 276.22 specifies the event that terminates the support obligation, the 276.23 effective date of the termination of the support obligation, and 276.24 the applicable provisions of the order or decree that 276.25 established the support obligation; 276.26 (3) the application includes the complete name of the 276.27 obligor's payor of funds, the business mailing address, the 276.28 court action and court file number, and the support and 276.29 collections file number, if known; and 276.30 (4) after receipt of the application for termination of 276.31 income withholding, the obligee or the public authority fails 276.32 within 20 days to request a contested hearing on the issue of 276.33 whether income withholding of support should continue clearly 276.34 specifying the basis for the continued support obligation and, 276.35 ex parte, to stay the service of the order terminating income 276.36 withholding upon the obligor's payor of funds, pending the 277.1 outcome of the contest hearing. 277.2 Subd. 14. [TERMINATION BY PUBLIC AUTHORITY.] If the public 277.3 authority determines that income withholding is no longer 277.4 applicable, the public authority shall notify the obligee and 277.5 the obligor of intent to terminate income withholding. 277.6 Five days following notification to the obligee and 277.7 obligor, the public authority shall issue a notice to the payor 277.8 of funds terminating income withholding, without a requirement 277.9 for a court order unless the obligee has requested a contested 277.10 hearing under section 518.5511, subdivision 4. 277.11 Subd. 15. [CONTRACT FOR SERVICE.] To carry out the 277.12 provisions of this section, the public authority responsible for 277.13 child support enforcement may contract for services, including 277.14 the use of electronic funds transfer. 277.15 Subd. 16. [WAIVER.] (a) If child support or maintenance is 277.16 not assigned under section 256.741, the court may waive the 277.17 requirements of this section if the court finds there is no 277.18 arrearage in child support and maintenance as of the date of the 277.19 hearing and: 277.20 (1) one party demonstrates and the court finds there is 277.21 good cause to waive the requirements of this section or to 277.22 terminate an order for or notice of income withholding 277.23 previously entered under this section; or 277.24 (2) all parties reach an agreement and the agreement is 277.25 approved by the court after a finding that the agreement is 277.26 likely to result in regular and timely payments. The court's 277.27 findings waiving the requirements of this paragraph shall 277.28 include a written explanation of the reasons why income 277.29 withholding would not be in the best interests of the child. 277.30 In addition to the other requirements in this subdivision, 277.31 if the case involves a modification of support, the court shall 277.32 make a finding that support has been timely made. 277.33 (b) If the court waives income withholding, the obligee or 277.34 obligor may at any time request income withholding under 277.35 subdivision 7. 277.36 Subd. 17. [NONLIABILITY; PAYOR OF FUNDS.] A payor of funds 278.1 who complies with an income withholding order or notice of 278.2 withholding according to this chapter or chapter 518C that 278.3 appears regular on its face shall not be subject to civil 278.4 liability to any individual or agency for taking action in 278.5 compliance with the order or notice. 278.6 Subd. 18. [ELECTRONIC TRANSMISSION.] Orders or notices for 278.7 withholding under this section may be transmitted for 278.8 enforcement purposes by electronic means. 278.9 Sec. 53. Minnesota Statutes 1996, section 518.616, is 278.10 amended by adding a subdivision to read: 278.11 Subd. 1a. [COURT ORDERS FOR CHILDREN RECEIVING PUBLIC 278.12 ASSISTANCE.] For any order enforced by the public authority for 278.13 children receiving assistance under any of the programs referred 278.14 to in section 256.741, subdivision 8, the public authority may 278.15 seek a court order requiring the obligor to participate in work 278.16 activities if the obligor is in arrears in child support. Work 278.17 activities include the following: 278.18 (1) unsubsidized employment; 278.19 (2) subsidized private sector employment; 278.20 (3) subsidized public sector employment or work experience 278.21 only if sufficient private sector employment is unavailable; 278.22 (4) on-the-job training; 278.23 (5) job search and job readiness; 278.24 (6) education directly related to employment, in the case 278.25 of an obligor who: 278.26 (i) has not attained 20 years of age; and 278.27 (ii) has not received a high school diploma or certificate 278.28 of high school equivalency; 278.29 (7) job skills training directly related to employment; and 278.30 (8) satisfactory attendance at a secondary school in the 278.31 case of an obligor who: 278.32 (i) has not completed secondary school; and 278.33 (ii) is a dependent child, or a head of a household and who 278.34 has not attained 20 years of age; and 278.35 (9) vocational educational training, not to exceed 12 278.36 months with respect to any individual. 279.1 Sec. 54. Minnesota Statutes 1996, section 518.68, 279.2 subdivision 2, is amended to read: 279.3 Subd. 2. [CONTENTS.] The required notices must be 279.4 substantially as follows: 279.5 IMPORTANT NOTICE 279.6 1. PAYMENTS TO PUBLIC AGENCY 279.7PursuantAccording to Minnesota Statutes, section 518.551, 279.8 subdivision 1, payments ordered for maintenance and support 279.9 must be paid to the public agency responsible for child 279.10 support enforcement as long as the person entitled to 279.11 receive the payments is receiving or has applied for public 279.12 assistance or has applied for support and maintenance 279.13 collection services. MAIL PAYMENTS TO: 279.14 2. DEPRIVING ANOTHER OF CUSTODIAL OR PARENTAL RIGHTS -- A 279.15 FELONY 279.16 A person may be charged with a felony who conceals a minor 279.17 child or takes, obtains, retains, or fails to return a 279.18 minor child from or to the child's parent (or person with 279.19 custodial or visitation rights),pursuantaccording to 279.20 Minnesota Statutes, section 609.26. A copy of that section 279.21 is available from any district court clerk. 279.22 3. RULES OF SUPPORT, MAINTENANCE, VISITATION 279.23 (a) Payment of support or spousal maintenance is to be as 279.24 ordered, and the giving of gifts or making purchases of 279.25 food, clothing, and the like will not fulfill the 279.26 obligation. 279.27 (b) Payment of support must be made as it becomes due, and 279.28 failure to secure or denial of rights of visitation is NOT 279.29 an excuse for nonpayment, but the aggrieved party must seek 279.30 relief through a proper motion filed with the court. 279.31 (c) Nonpayment of support is not grounds to deny 279.32 visitation. The party entitled to receive support may 279.33 apply for support and collection services, file a contempt 279.34 motion, or obtain a judgment as provided in Minnesota 279.35 Statutes, section 548.091. 279.36 (d) The payment of support or spousal maintenance takes 280.1 priority over payment of debts and other obligations. 280.2 (e) A party who accepts additional obligations of support 280.3 does so with the full knowledge of the party's prior 280.4 obligation under this proceeding. 280.5 (f) Child support or maintenance is based on annual income, 280.6 and it is the responsibility of a person with seasonal 280.7 employment to budget income so that payments are made 280.8 throughout the year as ordered. 280.9 (g) If there is a layoff or a pay reduction, support may be 280.10 reduced as of the time of the layoff or pay reduction if a 280.11 motion to reduce the support is served and filed with the 280.12 court at that time, but any such reduction must be ordered 280.13 by the court. The court is not permitted to reduce support 280.14 retroactively, except as provided in Minnesota Statutes, 280.15 section 518.64, subdivision 2, paragraph (c). 280.16 4. PARENTAL RIGHTS FROM MINNESOTA STATUTES, SECTION 518.17, 280.17 SUBDIVISION 3 280.18 Unless otherwise provided by the Court: 280.19 (a) Each party has the right of access to, and to receive 280.20 copies of, school, medical, dental, religious training, and 280.21 other important records and information about the minor 280.22 children. Each party has the right of access to 280.23 information regarding health or dental insurance available 280.24 to the minor children. Presentation of a copy of this 280.25 order to the custodian of a record or other information 280.26 about the minor children constitutes sufficient 280.27 authorization for the release of the record or information 280.28 to the requesting party. 280.29 (b) Each party shall keep the other informed as to the name 280.30 and address of the school of attendance of the minor 280.31 children. Each party has the right to be informed by 280.32 school officials about the children's welfare, educational 280.33 progress and status, and to attend school and parent 280.34 teacher conferences. The school is not required to hold a 280.35 separate conference for each party. 280.36 (c) In case of an accident or serious illness of a minor 281.1 child, each party shall notify the other party of the 281.2 accident or illness, and the name of the health care 281.3 provider and the place of treatment. 281.4 (d) Each party has the right of reasonable access and 281.5 telephone contact with the minor children. 281.6 5. WAGE AND INCOME DEDUCTION OF SUPPORT AND MAINTENANCE 281.7 Child support and/or spousal maintenance may be withheld 281.8 from income, with or without notice to the person obligated 281.9 to pay, when the conditions of Minnesota Statutes, sections 281.10 518.611 and 518.613, have been met. A copy of those 281.11 sections is available from any district court clerk. 281.12 6. CHANGE OF ADDRESS OR RESIDENCE 281.13 Unless otherwise ordered,the person responsible to make281.14support or maintenance paymentseach party shall notify the 281.15person entitled to receive the paymentother party, the 281.16 court, and the public authority responsible for collection, 281.17 if applicable, ofa change of address or residencethe 281.18 following information within60ten days ofthe address or281.19residence changeany change: the residential and mailing 281.20 address, telephone number, driver's license number, social 281.21 security number, and name, address, and telephone number of 281.22 the employer. 281.23 7. COST OF LIVING INCREASE OF SUPPORT AND MAINTENANCE 281.24 Child support and/or spousal maintenance may be adjusted 281.25 every two years based upon a change in the cost of living 281.26 (using Department of Labor Consumer Price Index .........., 281.27 unless otherwise specified in this order) when the 281.28 conditions of Minnesota Statutes, section 518.641, are met. 281.29 Cost of living increases are compounded. A copy of 281.30 Minnesota Statutes, section 518.641, and forms necessary to 281.31 request or contest a cost of living increase are available 281.32 from any district court clerk. 281.33 8. JUDGMENTS FOR UNPAID SUPPORT 281.34 If a person fails to make a child support payment, the 281.35 payment owed becomes a judgment against the person 281.36 responsible to make the payment by operation of law on or 282.1 after the date the payment is due, and the person entitled 282.2 to receive the payment or the public agency may obtain 282.3 entry and docketing of the judgment WITHOUT NOTICE to the 282.4 person responsible to make the payment under Minnesota 282.5 Statutes, section 548.091. Interest begins to accrue on a 282.6 payment or installment of child support whenever the unpaid 282.7 amount due is greater than the current support due, 282.8pursuantaccording to Minnesota Statutes, section 548.091, 282.9 subdivision 1a. 282.10 9. JUDGMENTS FOR UNPAID MAINTENANCE 282.11 A judgment for unpaid spousal maintenance may be entered 282.12 when the conditions of Minnesota Statutes, section 548.091, 282.13 are met. A copy of that section is available from any 282.14 district court clerk. 282.15 10. ATTORNEY FEES AND COLLECTION COSTS FOR ENFORCEMENT OF CHILD 282.16 SUPPORT 282.17 A judgment for attorney fees and other collection costs 282.18 incurred in enforcing a child support order will be entered 282.19 against the person responsible to pay support when the 282.20 conditions of section 518.14, subdivision 2, are met. A 282.21 copy of section 518.14 and forms necessary to request or 282.22 contest these attorney fees and collection costs are 282.23 available from any district court clerk. 282.24 11. VISITATION EXPEDITOR PROCESS 282.25 On request of either party or on its own motion, the court 282.26 may appoint a visitation expeditor to resolve visitation 282.27 disputes under Minnesota Statutes, section 518.1751. A 282.28 copy of that section and a description of the expeditor 282.29 process is available from any district court clerk. 282.30 12. VISITATION REMEDIES AND PENALTIES 282.31 Remedies and penalties for the wrongful denial of 282.32 visitation rights are available under Minnesota Statutes, 282.33 section 518.175, subdivision 6. These include compensatory 282.34 visitation; civil penalties; bond requirements; contempt; 282.35 and reversal of custody. A copy of that subdivision and 282.36 forms for requesting relief are available from any district 283.1 court clerk. 283.2 Sec. 55. Minnesota Statutes 1996, section 518C.101, is 283.3 amended to read: 283.4 518C.101 [DEFINITIONS.] 283.5 In this chapter: 283.6 (a) "Child" means an individual, whether over or under the 283.7 age of majority, who is or is alleged to be owed a duty of 283.8 support by the individual's parent or who is or is alleged to be 283.9 the beneficiary of a support order directed to the parent. 283.10 (b) "Child support order" means a support order for a 283.11 child, including a child who has attained the age of majority 283.12 under the law of the issuing state. 283.13 (c) "Duty of support" means an obligation imposed or 283.14 imposable by law to provide support for a child, spouse, or 283.15 former spouse, including an unsatisfied obligation to provide 283.16 support. 283.17 (d) "Home state" means the state in which a child lived 283.18 with a parent or a person acting as parent for at least six 283.19 consecutive months immediately preceding the time of filing of a 283.20 petition or comparable pleading for support and, if a child is 283.21 less than six months old, the state in which the child lived 283.22 from birth with any of them. A period of temporary absence of 283.23 any of them is counted as part of the six-month or other period. 283.24 (e) "Income" includes earnings or other periodic 283.25 entitlements to money from any source and any other property 283.26 subject to withholding for support under the law of this state. 283.27 (f) "Income-withholding order" means an order or other 283.28 legal process directed to an obligor's employer or other debtor 283.29 under section 518.611or 518.613, to withhold support from the 283.30 income of the obligor. 283.31 (g) "Initiating state" means a stateinfrom which a 283.32 proceeding is forwarded or in which a proceeding is filed for 283.33 forwarding to a responding state under this chapter or a law or 283.34 procedure substantially similar to this chapter, the uniform 283.35 reciprocal enforcement of support act, or the revised uniform283.36reciprocal enforcement of support act is filed for forwarding to284.1a responding state. 284.2 (h) "Initiating tribunal" means the authorized tribunal in 284.3 an initiating state. 284.4 (i) "Issuing state" means the state in which a tribunal 284.5 issues a support order or renders a judgment determining 284.6 parentage. 284.7 (j) "Issuing tribunal" means the tribunal that issues a 284.8 support order or renders a judgment determining parentage. 284.9 (k) "Law" includes decisional and statutory law and rules 284.10 and regulations having the force of law. 284.11 (l) "Obligee" means: 284.12 (1) an individual to whom a duty of support is or is 284.13 alleged to be owed or in whose favor a support order has been 284.14 issued or a judgment determining parentage has been rendered; 284.15 (2) a state or political subdivision to which the rights 284.16 under a duty of support or support order have been assigned or 284.17 which has independent claims based on financial assistance 284.18 provided to an individual obligee; or 284.19 (3) an individual seeking a judgment determining parentage 284.20 of the individual's child. 284.21 (m) "Obligor" means an individual, or the estate of a 284.22 decedent: 284.23 (1) who owes or is alleged to owe a duty of support; 284.24 (2) who is alleged but has not been adjudicated to be a 284.25 parent of a child; or 284.26 (3) who is liable under a support order. 284.27 (n)"Petition" means a petition or comparable pleading used284.28pursuant to section 518.5511.284.29(o)"Register" means to file a support order or judgment 284.30 determining parentage in the office of the court administrator. 284.31(p)(o) "Registering tribunal" means a tribunal in which a 284.32 support order is registered. 284.33(q)(p) "Responding state" means a statetoin which a 284.34 proceeding is filed or to which a proceeding is forwarded for 284.35 filing from an initiating state under this chapter or a law or 284.36 procedure substantially similar to this chapter, the uniform 285.1 reciprocal enforcement of support act, or the revised uniform 285.2 reciprocal enforcement of support act. 285.3(r)(q) "Responding tribunal" means the authorized tribunal 285.4 in a responding state. 285.5(s)(r) "Spousal support order" means a support order for a 285.6 spouse or former spouse of the obligor. 285.7(t)(s) "State" means a state of the United States, the 285.8 District of Columbia,the Commonwealth ofPuerto Rico, the 285.9 United States Virgin Islands, or any territory or insular 285.10 possession subject to the jurisdiction of the United 285.11 States."State"This term also includes: 285.12 (1) an Indian tribe; and 285.13 (2) a foreign jurisdiction that has enacted a law or 285.14 established procedures for issuance and enforcement of support 285.15 ordersthatwhich are substantially similar to the procedures 285.16 under this chapter, the Uniform Reciprocal Enforcement of 285.17 Support Act, or the Revised Uniform Reciprocal Enforcement of 285.18 Support Act. 285.19(u)(t) "Support enforcement agency" means a public 285.20 official or agency authorized to seek: 285.21 (1)seekenforcement of support orders or laws relating to 285.22 the duty of support; 285.23 (2)seekestablishment or modification of child support; 285.24 (3)seekdetermination of parentage; or 285.25 (4) to locate obligors or their assets. 285.26(v)(u) "Support order" means a judgment, decree, or order, 285.27 whether temporary, final, or subject to modification, for the 285.28 benefit of a child, a spouse, or a former spouse, which provides 285.29 for monetary support, health care, arrearages, or reimbursement, 285.30 and may include related costs and fees, interest, income 285.31 withholding, attorney's fees, and other relief. 285.32(w)(v) "Tribunal" means a court, administrative agency, or 285.33 quasi-judicial entity authorized to establish, enforce, or 285.34 modify support orders or to determine parentage. 285.35 Sec. 56. Minnesota Statutes 1996, section 518C.204, is 285.36 amended to read: 286.1 518C.204 [SIMULTANEOUS PROCEEDINGS IN ANOTHER STATE.] 286.2 (a) A tribunal of this state may exercise jurisdiction to 286.3 establish a support order if the petition or comparable pleading 286.4 is filed after apetition or comparablepleading is filed in 286.5 another state only if: 286.6 (1) the petition or comparable pleading in this state is 286.7 filed before the expiration of the time allowed in the other 286.8 state for filing a responsive pleading challenging the exercise 286.9 of jurisdiction by the other state; 286.10 (2) the contesting party timely challenges the exercise of 286.11 jurisdiction in the other state; and 286.12 (3) if relevant, this state is the home state of the child. 286.13 (b) A tribunal of this state may not exercise jurisdiction 286.14 to establish a support order if the petition or comparable 286.15 pleading is filed before a petition or comparable pleading is 286.16 filed in another state if: 286.17 (1) the petition or comparable pleading in the other state 286.18 is filed before the expiration of the time allowed in this state 286.19 for filing a responsive pleading challenging the exercise of 286.20 jurisdiction by this state; 286.21 (2) the contesting party timely challenges the exercise of 286.22 jurisdiction in this state; and 286.23 (3) if relevant, the other state is the home state of the 286.24 child. 286.25 Sec. 57. Minnesota Statutes 1996, section 518C.205, is 286.26 amended to read: 286.27 518C.205 [CONTINUING, EXCLUSIVE JURISDICTION.] 286.28 (a) A tribunal of this state issuing a support order 286.29 consistent with the law of this state has continuing, exclusive 286.30 jurisdiction over a child support order: 286.31 (1) as long as this state remains the residence of the 286.32 obligor, the individual obligee, or the child for whose benefit 286.33 the support order is issued; or 286.34 (2) untileach individual party hasall of the parties who 286.35 are individuals have filed writtenconsentconsents with the 286.36 tribunal of this state for a tribunal of another state to modify 287.1 the order and assume continuing, exclusive jurisdiction. 287.2 (b) A tribunal of this state issuing a child support order 287.3 consistent with the law of this state may not exercise its 287.4 continuing jurisdiction to modify the order if the order has 287.5 been modified by a tribunal of another statepursuantaccording 287.6 to this section or a law substantially similar to this chapter. 287.7 (c) If a child support order of this state is modified by a 287.8 tribunal of another statepursuantaccording to this section or 287.9 a law substantially similar to this chapter, a tribunal of this 287.10 state loses its continuing, exclusive jurisdiction with regard 287.11 to prospective enforcement of the order issued in this state, 287.12 and may only: 287.13 (1) enforce the order that was modified as to amounts 287.14 accruing before the modification; 287.15 (2) enforce nonmodifiable aspects of that order; and 287.16 (3) provide other appropriate relief for violations of that 287.17 order which occurred before the effective date of the 287.18 modification. 287.19 (d) A tribunal of this state shall recognize the 287.20 continuing, exclusive jurisdiction of a tribunal of another 287.21 state which has issued a child support orderpursuantaccording 287.22 to this section or a law substantially similar to this chapter. 287.23 (e) A temporary support order issued ex parte or pending 287.24 resolution of a jurisdictional conflict does not create 287.25 continuing, exclusive jurisdiction in the issuing tribunal. 287.26 (f) A tribunal of this state issuing a support order 287.27 consistent with the law of this state has continuing, exclusive 287.28 jurisdiction over a spousal support order throughout the 287.29 existence of the support obligation. A tribunal of this state 287.30 may not modify a spousal support order issued by a tribunal of 287.31 another state having continuing, exclusive jurisdiction over 287.32 that order under the law of that state. 287.33 Sec. 58. Minnesota Statutes 1996, section 518C.207, is 287.34 amended to read: 287.35 518C.207 [RECOGNITION OF CONTROLLING CHILD SUPPORT 287.36ORDERSORDER.] 288.1 (a)If a proceeding is brought under this chapter, and one288.2or more child support orders have been issued in this or another288.3state with regard to an obligor and a child, a tribunal of this288.4state shall apply the following rules in determining which order288.5to recognize for purposes of continuing, exclusive jurisdiction:288.6(1)If a proceeding is brought under this chapter and only 288.7 one tribunal has issued a child support order, the order of that 288.8 tribunal is controlling and must be recognized. 288.9 (b) If a proceeding is brought under this chapter, and two 288.10 or more child support orders have been issued by tribunals of 288.11 this state or another state with regard to the same obligor and 288.12 child, a tribunal of this state shall apply the rules in clauses 288.13 (1) to (3) determining which order to recognize for purposes of 288.14 continuing, exclusive jurisdiction. 288.15 (1) If only one of the tribunals would have continuing, 288.16 exclusive jurisdiction under this chapter, the order of that 288.17 tribunal is controlling and must be recognized. 288.18 (2) Iftwo ormore than one of the tribunals would have 288.19issued child support orders for the same obligor and child, and288.20only one of the tribunals would have continuing, exclusive288.21jurisdiction under this chapter, the order of that tribunal must288.22be recognizedcontinuing, exclusive jurisdiction under this 288.23 chapter, an order issued by a tribunal in the current home state 288.24 of the child is controlling and must be recognized, but if an 288.25 order has not been issued in the current home state of the 288.26 child, the most recently issued order controls and must be 288.27 recognized. 288.28 (3) Iftwo or morenone of the tribunals would haveissued288.29child support orders for the same obligor and child, and more288.30than one of the tribunals would havecontinuing, exclusive 288.31 jurisdiction under this chapter,an order issued by a tribunal288.32in the current home state of the child must be recognized, but288.33if an order has not been issued in the current home state of the288.34child, the order most recently issued must be recognizedthe 288.35 tribunal of this state having jurisdiction over the parties 288.36 shall issue a child support order, which controls and must be 289.1 recognized. 289.2(4)(c) If two or moretribunals have issuedchild support 289.3 orders have been issued for the same obligor and child, and none289.4of the tribunals would have continuing, exclusive jurisdiction289.5under this chapter, the tribunal of this state may issue a child289.6support order, which must be recognizedand if the obligor or 289.7 the individual obligee resides in this state, a party may 289.8 request a tribunal of this state to determine which order is 289.9 controlling and must be recognized under paragraph (b). The 289.10 request must be accompanied by a certified copy of every support 289.11 order in effect. The requesting party shall give notice of the 289.12 request to each party whose rights may be affected by the 289.13 determination. 289.14(b)(d) The tribunal thathasissuedanthe controlling 289.15 orderrecognizedunder paragraph (a), (b), or (c) is the 289.16 tribunalhavingthat has continuing, exclusive 289.17 jurisdiction under section 518C.205. 289.18 (e) A tribunal of this state which determines by order the 289.19 identity of the controlling order under paragraph (b), clause 289.20 (1) or (2), or which issues a new controlling order under 289.21 paragraph (b), clause (3), shall state in that order the basis 289.22 upon which the tribunal made its determination. 289.23 (f) Within 30 days after issuance of an order determining 289.24 the identity of the controlling order, the party obtaining the 289.25 order shall file a certified copy of the order with each 289.26 tribunal that issued or registered an earlier order of child 289.27 support. A party who obtains the order and fails to file a 289.28 certified copy is subject to appropriate sanctions by a tribunal 289.29 in which the issue of failure to file arises. The failure to 289.30 file does not affect the validity or enforceability of the 289.31 controlling order. 289.32 Sec. 59. Minnesota Statutes 1996, section 518C.301, is 289.33 amended to read: 289.34 518C.301 [PROCEEDINGS UNDER THIS CHAPTER.] 289.35 (a) Except as otherwise provided in this chapter, sections 289.36 518C.301 to 518C.319 apply to all proceedings under this chapter. 290.1 (b) This chapter provides for the following proceedings: 290.2 (1) establishment of an order for spousal support or child 290.3 supportpursuantaccording to section 518C.401; 290.4 (2) enforcement of a support order and income-withholding 290.5 order of another state without registrationpursuantaccording 290.6 tosectionssection 518C.501and 518C.502; 290.7 (3) registration of an order for spousal support or child 290.8 support of another state for enforcementpursuantaccording to 290.9 sections 518C.601 to 518C.612; 290.10 (4) modification of an order for child support or spousal 290.11 support issued by a tribunal of this statepursuantaccording to 290.12 sections 518C.203 to 518C.206; 290.13 (5) registration of an order for child support of another 290.14 state for modificationpursuantaccording to sections 518C.601 290.15 to 518C.612; 290.16 (6) determination of parentagepursuantaccording to 290.17 section 518C.701; and 290.18 (7) assertion of jurisdiction over nonresidentspursuant290.19 according to sections 518C.201 and 518C.202. 290.20 (c) An individual petitioner or a support enforcement 290.21 agency may commence a proceeding authorized under this chapter 290.22 by filing a petition in an initiating tribunal for forwarding to 290.23 a responding tribunal or by filing a petition or a comparable 290.24 pleading directly in a tribunal of another state which has or 290.25 can obtain personal jurisdiction over the respondent. 290.26 Sec. 60. Minnesota Statutes 1996, section 518C.304, is 290.27 amended to read: 290.28 518C.304 [DUTIES OF INITIATING TRIBUNAL.] 290.29 (a) Upon the filing of a petition authorized by this 290.30 chapter, an initiating tribunal of this state shall forward 290.31 three copies of the petition and its accompanying documents: 290.32 (1) to the responding tribunal or appropriate support 290.33 enforcement agency in the responding state; or 290.34 (2) if the identity of the responding tribunal is unknown, 290.35 to the state information agency of the responding state with a 290.36 request that they be forwarded to the appropriate tribunal and 291.1 that receipt be acknowledged. 291.2 (b) If a responding state has not enacted the language in 291.3 this chapter or a law or procedure substantially similar to this 291.4 chapter, a tribunal of this state may issue a certificate or 291.5 other document and make a finding required by the law of the 291.6 responding state. If the responding state is a foreign 291.7 jurisdiction, the tribunal may specify the amount of support 291.8 sought and provide other documents necessary to satisfy the 291.9 requirements of the responding state. 291.10 Sec. 61. Minnesota Statutes 1996, section 518C.305, is 291.11 amended to read: 291.12 518C.305 [DUTIES AND POWERS OF RESPONDING TRIBUNAL.] 291.13 (a) When a responding tribunal of this state receives a 291.14 petition or comparable pleading from an initiating tribunal or 291.15 directlypursuantaccording to section 518C.301, paragraph (c), 291.16 it shall cause the petition or pleading to be filed and notify 291.17 the petitioner by first class mail where and when it was filed. 291.18 (b) A responding tribunal of this state, to the extent 291.19 otherwise authorized by law, may do one or more of the following: 291.20 (1) issue or enforce a support order, modify a child 291.21 support order, or render a judgment to determine parentage; 291.22 (2) order an obligor to comply with a support order, 291.23 specifying the amount and the manner of compliance; 291.24 (3) order income withholding; 291.25 (4) determine the amount of any arrearages, and specify a 291.26 method of payment; 291.27 (5) enforce orders by civil or criminal contempt, or both; 291.28 (6) set aside property for satisfaction of the support 291.29 order; 291.30 (7) place liens and order execution on the obligor's 291.31 property; 291.32 (8) order an obligor to keep the tribunal informed of the 291.33 obligor's current residential address, telephone number, 291.34 employer, address of employment, and telephone number at the 291.35 place of employment; 291.36 (9) issue a bench warrant for an obligor who has failed 292.1 after proper notice to appear at a hearing ordered by the 292.2 tribunal and enter the bench warrant in any local and state 292.3 computer systems for criminal warrants; 292.4 (10) order the obligor to seek appropriate employment by 292.5 specified methods; 292.6 (11) award reasonable attorney's fees and other fees and 292.7 costs; and 292.8 (12) grant any other available remedy. 292.9 (c) A responding tribunal of this state shall include in a 292.10 support order issued under this chapter, or in the documents 292.11 accompanying the order, the calculations on which the support 292.12 order is based. 292.13 (d) A responding tribunal of this state may not condition 292.14 the payment of a support order issued under this chapter upon 292.15 compliance by a party with provisions for visitation. 292.16 (e) If a responding tribunal of this state issues an order 292.17 under this chapter, the tribunal shall send a copy of the order 292.18 by first class mail to the petitioner and the respondent and to 292.19 the initiating tribunal, if any. 292.20 Sec. 62. Minnesota Statutes 1996, section 518C.310, is 292.21 amended to read: 292.22 518C.310 [DUTIES OF STATE INFORMATION AGENCY.] 292.23 (a) The unit within the department of human services that 292.24 receives and disseminates incoming interstate actions under 292.25 title IV-D of the Social Security Act from section 518C.02, 292.26 subdivision 1a, is the state information agency under this 292.27 chapter. 292.28 (b) The state information agency shall: 292.29 (1) compile and maintain a current list, including 292.30 addresses, of the tribunals in this state which have 292.31 jurisdiction under this chapter and any support enforcement 292.32 agencies in this state and transmit a copy to the state 292.33 information agency of every other state; 292.34 (2) maintain a register of tribunals and support 292.35 enforcement agencies received from other states; 292.36 (3) forward to the appropriate tribunal in the place in 293.1 this state in which the individual obligee or the obligor 293.2 resides, or in which the obligor's property is believed to be 293.3 located, all documents concerning a proceeding under this 293.4 chapter received from an initiating tribunal or the state 293.5 information agency of the initiating state; and 293.6 (4) obtain information concerning the location of the 293.7 obligor and the obligor's property within this state not exempt 293.8 from execution, by such means as postal verification and federal 293.9 or state locator services, examination of telephone directories, 293.10 requests for the obligor's address from employers, and 293.11 examination of governmental records, including, to the extent 293.12 not prohibited by other law, those relating to real property, 293.13 vital statistics, law enforcement, taxation, motor vehicles, 293.14 driver's licenses, and social security; and293.15(5) determine which foreign jurisdictions and Indian tribes293.16have substantially similar procedures for issuance and293.17enforcement of support orders. The state information agency293.18shall compile and maintain a list, including addresses, of all293.19these foreign jurisdictions and Indian tribes. The state293.20information agency shall make this list available to all state293.21tribunals and all support enforcement agencies. 293.22 Sec. 63. Minnesota Statutes 1996, section 518C.401, is 293.23 amended to read: 293.24 518C.401 [PETITION TO ESTABLISH SUPPORT ORDER.] 293.25 (a) If a support order entitled to recognition under this 293.26 chapter has not been issued, a responding tribunal of this state 293.27 may issue a support order if: 293.28 (1) the individual seeking the order resides in another 293.29 state; or 293.30 (2) the support enforcement agency seeking the order is 293.31 located in another state. 293.32 (b) The tribunal may issue a temporary child support order 293.33 if: 293.34 (1) the respondent has signed a verified statement 293.35 acknowledging parentage; 293.36 (2) the respondent has been determined byor pursuant to294.1 law to be the parent; or 294.2 (3) there is other clear and convincing evidence that the 294.3 respondent is the child's parent. 294.4 (c) Upon a finding, after notice and opportunity to be 294.5 heard, that an obligor owes a duty of support, the tribunal 294.6 shall issue a support order directed to the obligor and may 294.7 issue other orderspursuantaccording to section 518C.305. 294.8 Sec. 64. Minnesota Statutes 1996, section 518C.501, is 294.9 amended to read: 294.10 518C.501 [RECOGNITIONEMPLOYER'S RECEIPT OF 294.11 INCOME-WITHHOLDING ORDER OF ANOTHER STATE.] 294.12(a)An income-withholding order issued in another state may 294.13 be sentby first class mailto the person or entity defined as 294.14 the obligor's employer under section 518.611or 518.613without 294.15 first filing a petition or comparable pleading or registering 294.16 the order with a tribunal of this state.Upon receipt of the294.17order, the employer shall:294.18(1) treat an income-withholding order issued in another294.19state which appears regular on its face as if it had been issued294.20by a tribunal of this state;294.21(2) immediately provide a copy of the order to the obligor;294.22and294.23(3) distribute the funds as directed in the withholding294.24order.294.25(b) An obligor may contest the validity or enforcement of294.26an income-withholding order issued in another state in the same294.27manner as if the order had been issued by a tribunal of this294.28state. Section 518C.604 applies to the contest. The obligor294.29shall give notice of the contest to any support enforcement294.30agency providing services to the obligee and to:294.31(1) the person or agency designated to receive payments in294.32the income-withholding order; or294.33(2) if no person or agency is designated, the obligee.294.34 Sec. 65. [518C.503] [EMPLOYER'S COMPLIANCE WITH 294.35 INCOME-WITHHOLDING ORDER OF ANOTHER STATE.] 294.36 (a) Upon receipt of an income-withholding order, the 295.1 obligor's employer shall immediately provide a copy of the order 295.2 to the obligor. 295.3 (b) The employer shall treat an income-withholding order 295.4 issued in another state which appears regular on its face as if 295.5 it had been issued by a tribunal of this state. 295.6 (c) Except as otherwise provided in paragraph (d) and 295.7 section 518C.505, the employer shall withhold and distribute the 295.8 funds specified in the withholding order by complying with the 295.9 terms of the order which specify: 295.10 (1) the duration and amount of periodic payments of current 295.11 child support, stated as a sum certain; 295.12 (2) the person or agency designated to receive payments and 295.13 the address to which the payments are to be forwarded; 295.14 (3) medical support, whether in the form of periodic cash 295.15 payment, stated as a sum certain, or ordering the obligor to 295.16 provide health insurance coverage for the child under a policy 295.17 available through the obligor's employment; 295.18 (4) the amount of periodic payments of fees and costs for a 295.19 support enforcement agency, the issuing tribunal, and the 295.20 obligee's attorney, stated as sums certain; and 295.21 (5) the amount of periodic payments of arrearages and 295.22 interest on arrearages, stated as sums certain. 295.23 (d) An employer shall comply with the laws of the state of 295.24 the obligor's principal place of employment for withholding from 295.25 income with respect to: 295.26 (1) the employer's fee for processing an income-withholding 295.27 order; 295.28 (2) the maximum amount permitted to be withheld from the 295.29 obligor's income; and 295.30 (3) the times within which the employer must implement the 295.31 withholding order and forward the child support payment. 295.32 Sec. 66. [518C.504] [COMPLIANCE WITH MULTIPLE 295.33 INCOME-WITHHOLDING ORDERS.] 295.34 If an obligor's employer receives multiple 295.35 income-withholding orders with respect to the earnings of the 295.36 same obligor, the employer satisfies the terms of the multiple 296.1 orders if the employer complies with the law of the state of the 296.2 obligor's principal place of employment to establish the 296.3 priorities for withholding and allocating income withheld for 296.4 multiple child support obligees. 296.5 Sec. 67. [518C.505] [IMMUNITY FROM CIVIL LIABILITY.] 296.6 An employer who complies with an income-withholding order 296.7 issued in another state according to this chapter is not subject 296.8 to civil liability to an individual or agency with regard to the 296.9 employer's withholding of child support from the obligor's 296.10 income. 296.11 Sec. 68. [518C.506] [PENALTIES FOR NONCOMPLIANCE.] 296.12 An employer who willfully fails to comply with an 296.13 income-withholding order issued by another state and received 296.14 for enforcement is subject to the same penalties that may be 296.15 imposed for noncompliance with an order issued by a tribunal of 296.16 this state. 296.17 Sec. 69. [518C.507] [CONTEST BY OBLIGOR.] 296.18 (a) An obligor may contest the validity or enforcement of 296.19 an income-withholding order issued in another state and received 296.20 directly by an employer in this state in the same manner as if 296.21 the order had been issued by a tribunal of this state. Section 296.22 518C.604 applies to the contested order. 296.23 (b) The obligor shall give notice of the contested order to: 296.24 (1) a support enforcement agency providing services to the 296.25 obligee; 296.26 (2) each employer that has directly received an 296.27 income-withholding order; and 296.28 (3) the person or agency designated to receive payments in 296.29 the income-withholding order or if no person or agency is 296.30 designated, to the obligee. 296.31 Sec. 70. [518C.508] [ADMINISTRATIVE ENFORCEMENT OF 296.32 ORDERS.] 296.33 (a) A party seeking to enforce a support order or an 296.34 income-withholding order, or both, issued by a tribunal of 296.35 another state may send the documents required for registering 296.36 the order to a support enforcement agency of this state. 297.1 (b) Upon receipt of the documents, the support enforcement 297.2 agency, without initially seeking to register the order, shall 297.3 consider and may use any administrative procedure authorized by 297.4 the laws of this state to enforce a support order or an 297.5 income-withholding order, or both. If the obligor does not 297.6 contest administrative enforcement, the order need not be 297.7 registered. If the obligor contests the validity or 297.8 administrative enforcement of the order, the support enforcement 297.9 agency shall register the order under this chapter. 297.10 Sec. 71. Minnesota Statutes 1996, section 518C.603, is 297.11 amended to read: 297.12 518C.603 [EFFECT OF REGISTRATION FOR ENFORCEMENT.] 297.13 (a) A support order or income-withholding order issued in 297.14 another state is registered when the order is filed in the 297.15 registering tribunal of this state. 297.16 (b) A registered order issued in another state is 297.17 enforceable in the same manner and is subject to the same 297.18 procedures as an order issued by a tribunal of this state. 297.19 (c) Except as otherwise provided insections 518C.601 to297.20518C.612this chapter, a tribunal of this state shall recognize 297.21 and enforce, but may not modify, a registered order if the 297.22 issuing tribunal had jurisdiction. 297.23 Sec. 72. Minnesota Statutes 1996, section 518C.605, is 297.24 amended to read: 297.25 518C.605 [NOTICE OF REGISTRATION OF ORDER.] 297.26 (a) When a support order or income-withholding order issued 297.27 in another state is registered, the registering tribunal shall 297.28 notify the nonregistering party. Notice must be given by 297.29 certified or registered mail or by any means of personal service 297.30 authorized by the law of this state. The notice must be 297.31 accompanied by a copy of the registered order and the documents 297.32 and relevant information accompanying the order. 297.33 (b) The notice must inform the nonregistering party: 297.34 (1) that a registered order is enforceable as of the date 297.35 of registration in the same manner as an order issued by a 297.36 tribunal of this state; 298.1 (2) that a hearing to contest the validity or enforcement 298.2 of the registered order must be requested within 20 days after 298.3 the date of mailing or personal service of the notice; 298.4 (3) that failure to contest the validity or enforcement of 298.5 the registered order in a timely manner will result in 298.6 confirmation of the order and enforcement of the order and the 298.7 alleged arrearages and precludes further contest of that order 298.8 with respect to any matter that could have been asserted; and 298.9 (4) of the amount of any alleged arrearages. 298.10 (c) Upon registration of an income-withholding order for 298.11 enforcement, the registering tribunal shall notify the obligor's 298.12 employerpursuantaccording to section 518.611or 518.613. 298.13 Sec. 73. Minnesota Statutes 1996, section 518C.608, is 298.14 amended to read: 298.15 518C.608 [CONFIRMED ORDER.] 298.16If a contesting party has received notice of registration298.17under section 518C.605,Confirmation of a registered order, 298.18 whether by operation of law or after notice and hearing, 298.19 precludes further contest of the orderbased upon facts that298.20were known by the contesting party at the time of registration298.21with respect to any matter that could have been asserted at the298.22time of registrationwith respect to any matter that could have 298.23 been asserted at the time of registration. 298.24 Sec. 74. Minnesota Statutes 1996, section 518C.611, is 298.25 amended to read: 298.26 518C.611 [MODIFICATION OF CHILD SUPPORT ORDER OF ANOTHER 298.27 STATE.] 298.28 (a) After a child support order issued in another state has 298.29 been registered in this state, the responding tribunal of this 298.30 state may modify that order only if,section 518C.613 does not 298.31 apply and after notice and hearing, it finds that: 298.32 (1) the following requirements are met: 298.33 (i) the child, the individual obligee, and the obligor do 298.34 not reside in the issuing state; 298.35 (ii) a petitioner who is a nonresident of this state seeks 298.36 modification; and 299.1 (iii) the respondent is subject to the personal 299.2 jurisdiction of the tribunal of this state; or 299.3 (2)an individual party orthe child, or a party who is an 299.4 individual, is subject to the personal jurisdiction of the 299.5 tribunal of this state and all of theindividualparties who are 299.6 individuals have filedawrittenconsentconsents in the issuing 299.7 tribunalproviding thatfor a tribunal of this statemayto 299.8 modify the support order and assume continuing, exclusive 299.9 jurisdiction over the order. However, if the issuing state is a 299.10 foreign jurisdiction that has not enacted a law or established 299.11 procedures substantially similar to the procedures in this 299.12 chapter, the consent otherwise required of an individual 299.13 residing in this state is not required for the tribunal to 299.14 assume jurisdiction to modify the child support order. 299.15 (b) Modification of a registered child support order is 299.16 subject to the same requirements, procedures, and defenses that 299.17 apply to the modification of an order issued by a tribunal of 299.18 this state and the order may be enforced and satisfied in the 299.19 same manner. 299.20 (c) A tribunal of this state may not modify any aspect of a 299.21 child support order that may not be modified under the law of 299.22 the issuing state. If two or more tribunals have issued child 299.23 support orders for the same obligor and child, the order that 299.24 controls and must be recognized under section 518C.207 299.25 establishes the aspects of the support order which are 299.26 nonmodifiable. 299.27 (d) On issuance of an order modifying a child support order 299.28 issued in another state, a tribunal of this state becomes the 299.29 tribunal of continuing, exclusive jurisdiction. 299.30(e) Within 30 days after issuance of a modified child299.31support order, the party obtaining the modification shall file a299.32certified copy of the order with the issuing tribunal which had299.33continuing, exclusive jurisdiction over the earlier order, and299.34in each tribunal in which the party knows that earlier order has299.35been registered.299.36 Sec. 75. Minnesota Statutes 1996, section 518C.612, is 300.1 amended to read: 300.2 518C.612 [RECOGNITION OF ORDER MODIFIED IN ANOTHER STATE.] 300.3 A tribunal of this state shall recognize a modification of 300.4 its earlier child support order by a tribunal of another state 300.5 which assumed jurisdictionpursuantaccording to this chapter or 300.6 a law substantially similar to this chapter and, upon request, 300.7 except as otherwise provided in this chapter, shall: 300.8 (1) enforce the order that was modified only as to amounts 300.9 accruing before the modification; 300.10 (2) enforce only nonmodifiable aspects of that order; 300.11 (3) provide other appropriate relief only for violations of 300.12 that order which occurred before the effective date of the 300.13 modification; and 300.14 (4) recognize the modifying order of the other state, upon 300.15 registration, for the purpose of enforcement. 300.16 Sec. 76. [518C.613] [JURISDICTION TO MODIFY CHILD SUPPORT 300.17 ORDER OF ANOTHER STATE WHEN INDIVIDUAL PARTIES RESIDE IN THIS 300.18 STATE.] 300.19 (a) If all of the parties who are individuals reside in 300.20 this state and the child does not reside in the issuing state, a 300.21 tribunal of this state has jurisdiction to enforce and to modify 300.22 the issuing state's child support order in a proceeding to 300.23 register that order. 300.24 (b) A tribunal of this state exercising jurisdiction under 300.25 this section shall apply the provisions of sections 518C.101 to 300.26 518C.209, and the procedural and substantive laws of this state 300.27 to the proceeding for enforcement or modification. Sections 300.28 518C.301 to 518C.508 and sections 518C.701 to 518C.802 do not 300.29 apply. 300.30 Sec. 77. [518C.614] [NOTICE TO ISSUING TRIBUNAL OF 300.31 MODIFICATION.] 300.32 Within 30 days after issuance of a modified child support 300.33 order, the party obtaining the modification shall file a 300.34 certified copy of the order with the issuing tribunal that had 300.35 continuing, exclusive jurisdiction over the earlier order, and 300.36 in each tribunal in which the party knows the earlier order has 301.1 been registered. A party who obtains the order and fails to 301.2 file a certified copy is subject to appropriate sanctions by a 301.3 tribunal in which the issue of failure to file arises. The 301.4 failure to file does not affect the validity or enforceability 301.5 of the modified order of the new tribunal having continuing, 301.6 exclusive jurisdiction. 301.7 Sec. 78. Minnesota Statutes 1996, section 518C.701, is 301.8 amended to read: 301.9 518C.701 [PROCEEDING TO DETERMINE PARENTAGE.] 301.10 (a) A tribunal of this state may serve as an initiating or 301.11 responding tribunal in a proceeding brought under this chapter 301.12 or a law or procedure substantially similar to this chapter, or 301.13 under a law or procedure substantially similar to the uniform 301.14 reciprocal enforcement of support act, or the revised uniform 301.15 reciprocal enforcement of support act to determine that the 301.16 petitioner is a parent of a particular child or to determine 301.17 that a respondent is a parent of that child. 301.18 (b) In a proceeding to determine parentage, a responding 301.19 tribunal of this state shall apply the parentage act, sections 301.20 257.51 to 257.74, and the rules of this state on choice of law. 301.21 Sec. 79. Minnesota Statutes 1996, section 548.091, 301.22 subdivision 1a, is amended to read: 301.23 Subd. 1a. [CHILD SUPPORT JUDGMENT BY OPERATION OF LAW.] 301.24 (a) Any payment or installment of support required by a judgment 301.25 or decree of dissolution or legal separation, determination of 301.26 parentage, an order under chapter 518C, an order under section 301.27 256.87, or an order under section 260.251, that is not paid or 301.28 withheld from the obligor's income as required under section 301.29 518.611 or 518.613, or which is ordered as child support by 301.30 judgment, decree, or order by a court in any other state, is a 301.31 judgment by operation of law on and after the date it is due and 301.32 is entitled to full faith and credit in this state and any other 301.33 state. Except as otherwise provided by paragraph (b), interest 301.34 accrues from the date the unpaid amount due is greater than the 301.35 current support due at the annual rate provided in section 301.36 549.09, subdivision 1, plus two percent, not to exceed an annual 302.1 rate of 18 percent. A payment or installment of support that 302.2 becomes a judgment by operation of law between the date on which 302.3 a party served notice of a motion for modification under section 302.4 518.64, subdivision 2, and the date of the court's order on 302.5 modification may be modified under that subdivision. 302.6 (b) Notwithstanding the provisions of section 549.09, upon 302.7 motion to the court and upon proof by the obligor of 36 302.8 consecutive months of complete and timely payments of both 302.9 current support and court-ordered paybacks of a child support 302.10 debt or arrearage, the court may order interest on the remaining 302.11 debt or arrearage to stop accruing. Timely payments are those 302.12 made in the month in which they are due. If, after that time, 302.13 the obligor fails to make complete and timely payments of both 302.14 current support and court-ordered paybacks of child support debt 302.15 or arrearage, the public authority or the obligee may move the 302.16 court for the reinstatement of interest as of the month in which 302.17 the obligor ceased making complete and timely payments. 302.18 The court shall provide copies of all orders issued under 302.19 this section to the public authority. The commissioner of human 302.20 services shall prepare and make available to the court and the 302.21 parties forms to be submitted by the parties in support of a 302.22 motion under this paragraph. 302.23 Sec. 80. Minnesota Statutes 1996, section 548.091, 302.24 subdivision 2a, is amended to read: 302.25 Subd. 2a. [DOCKETING OF CHILD SUPPORT JUDGMENT.] On or 302.26 after the date an unpaid amount becomes a judgment by operation 302.27 of law under subdivision 1a, the obligee or the public authority 302.28 may file with the court administrator, either electronically or 302.29 by other means: 302.30 (1) a statement identifying, or a copy of, the judgment or 302.31 decree of dissolution or legal separation, determination of 302.32 parentage, order under chapter 518C, an order under section 302.33 256.87,oran order under section 260.251, or judgment, decree, 302.34 or order for child support by a court in any other state, which 302.35 provides forinstallment orperiodicpaymentsinstallments of 302.36 child support, or a judgment or notice of attorney fees and 303.1 collection costs under section 518.14, subdivision 2; 303.2 (2) an affidavit of default. The affidavit of default must 303.3 state the full name, occupation, place of residence, and last 303.4 known post office address of the obligor, the name and post 303.5 office address of the obligee, the date or dates payment was due 303.6 and not received and judgment was obtained by operation of law, 303.7andthe total amount of the judgments to the date of filing, and 303.8 the amount and frequency of the periodic installments of child 303.9 support that will continue to become due and payable subsequent 303.10 to the date of filing; and 303.11 (3) an affidavit of service of a notice ofentry of303.12judgment or notice ofintent to docket judgment and to recover 303.13 attorney fees and collection costs on the obligor, in person or 303.14 by mail at the obligor's last known post office address. 303.15 Service is completed upon mailing in the manner designated. 303.16 Where applicable, a notice of interstate lien in the form 303.17 promulgated under United States Code, title 42, section 652(a), 303.18 is sufficient to satisfy the requirements of clauses (1) and (2). 303.19 Sec. 81. Minnesota Statutes 1996, section 548.091, 303.20 subdivision 3a, is amended to read: 303.21 Subd. 3a. [ENTRY, DOCKETING, AND SURVIVAL OF CHILD SUPPORT 303.22 JUDGMENT.] Upon receipt of the documents filed under subdivision 303.23 2a, the court administrator shall enter and docket the judgment 303.24 in the amount of thedefault specified in the affidavit of303.25defaultunpaid obligation identified in the affidavit of default 303.26 and note the amount and frequency of the periodic installments 303.27 of child support that will continue to become due and payable 303.28 after the date of docketing. From the time of docketing, the 303.29 judgment is a lien upon all the real property in the county 303.30 owned by the judgment debtor, but it is not a lien on registered 303.31 land unless the obligee or the public authority causes a notice 303.32 of judgment lien or certified copy of the judgment to be 303.33 memorialized on the certificate of title or certificate of 303.34 possessory title under section 508.63 or 508A.63. The judgment 303.35 survives and the lien continues for ten years after the date the 303.36 judgment was docketed. Child support judgments may be renewed 304.1 by service of notice upon the debtor. Service shall be by 304.2 certified mail at the last known address of the debtor or in the 304.3 manner provided for the service of civil process. Upon the 304.4 filing of the notice and proof of service the court 304.5 administrator shall renew the judgment for child support without 304.6 any additional filing fee. 304.7 Sec. 82. Minnesota Statutes 1996, section 548.091, is 304.8 amended by adding a subdivision to read: 304.9 Subd. 5. [AUTOMATIC INCREASES; SATISFACTION.] After 304.10 docketing and until satisfied by the obligee, public authority, 304.11 or the court administrator, the amount of the docketed judgment 304.12 automatically increases by the total amount of periodic 304.13 installments of child support that became due and payable 304.14 subsequent to the date of docketing, plus attorney's fees and 304.15 collection costs incurred by the public authority, and less any 304.16 payment made by the obligor to partially satisfy the docketed 304.17 judgment. The court administrator shall not satisfy any child 304.18 support judgment without first obtaining a written judgment 304.19 payoff statement from the public authority or obligee. If no 304.20 such statement can be obtained within two business days, the 304.21 court administrator shall only satisfy the judgment if the 304.22 amount paid to the court administrator equals the judgment 304.23 amount plus interest and costs, and the amount of the periodic 304.24 installment times the number of payments due since the date of 304.25 docketing of the judgment. 304.26 Sec. 83. Minnesota Statutes 1996, section 548.091, is 304.27 amended by adding a subdivision to read: 304.28 Subd. 6. [NOTE ON JUDGMENT ROLL.] The court administrator 304.29 shall note on the judgment roll which judgments are filed 304.30 pursuant to this section and the amount and frequency of the 304.31 periodic installment of child support that will continue to 304.32 become due and payable after the date of docketing. 304.33 Sec. 84. Minnesota Statutes 1996, section 548.091, is 304.34 amended by adding a subdivision to read: 304.35 Subd. 7. [FEES.] The public authority is exempt from 304.36 payment of fees when a judgment is docketed or a certified copy 305.1 of a judgment is issued by a court administrator, or a notice of 305.2 judgment lien or a certified copy of a judgment is presented to 305.3 a registrar of titles for recording. If a notice or certified 305.4 copy is recorded by the public authority under this subdivision, 305.5 the registrar of titles may collect from a party presenting for 305.6 recording a satisfaction or release of the notice or certified 305.7 copy, the fees for recording and memorializing both the notice 305.8 or certified copy and the satisfaction or release. 305.9 Sec. 85. Minnesota Statutes 1996, section 548.091, is 305.10 amended by adding a subdivision to read: 305.11 Subd. 8. [REGISTERED LAND.] If requested by the public 305.12 authority and upon the public authority's providing a notice of 305.13 judgment lien or a certified copy of a judgment for child 305.14 support debt, together with a street address, tax parcel 305.15 identifying number, or a legal description for a parcel of real 305.16 property, the county recorder shall search the registered land 305.17 records in that county and cause the notice of judgment lien or 305.18 certified copy of the judgment to be memorialized on every 305.19 certificate of title or certificate of possessory title of 305.20 registered land in that county that can be reasonably identified 305.21 as owned by the obligor who is named on a docketed judgment. 305.22 The fees for memorializing the lien or judgment must be paid in 305.23 the manner prescribed by subdivision 7. The county recorders 305.24 and their employees and agents are not liable for any loss or 305.25 damages arising from failure to identify a parcel of registered 305.26 land owned by the obligor who is named on the docketed judgment. 305.27 Sec. 86. Minnesota Statutes 1996, section 548.091, is 305.28 amended by adding a subdivision to read: 305.29 Subd. 9. [PAYOFF STATEMENT.] The public authority shall 305.30 issue to the obligor, attorneys, lenders, and closers, or their 305.31 agents, a payoff statement setting forth conclusively the amount 305.32 necessary to satisfy the lien. Payoff statements must be issued 305.33 within three business days after receipt of a request by mail, 305.34 personal delivery, telefacsimile, or e-mail transmission, and 305.35 must be delivered to the requester by telefacsimile or e-mail 305.36 transmission if requested and if appropriate technology is 306.1 available to the public authority. 306.2 Sec. 87. Minnesota Statutes 1996, section 548.091, is 306.3 amended by adding a subdivision to read: 306.4 Subd. 10. [RELEASE OF LIEN.] Upon payment of the amount 306.5 due under subdivision 5, the public authority shall execute and 306.6 deliver a satisfaction of the judgment lien within five business 306.7 days. 306.8 Sec. 88. Minnesota Statutes 1996, section 548.091, is 306.9 amended by adding a subdivision to read: 306.10 Subd. 11. [SPECIAL PROCEDURES.] The public authority shall 306.11 maintain sufficient staff available to negotiate a release of 306.12 lien on specific property for less than the full amount due 306.13 where the proceeds of a sale or financing, less reasonable and 306.14 necessary closing expenses, are not sufficient to satisfy all 306.15 encumbrances on the liened property. Partial releases do not 306.16 release the obligor's personal liability for the amount unpaid. 306.17 Sec. 89. Minnesota Statutes 1996, section 548.091, is 306.18 amended by adding a subdivision to read: 306.19 Subd. 12. [CORRECTING ERRORS.] The public authority shall 306.20 maintain a process to review the identity of the obligor and to 306.21 issue releases of lien in cases of misidentification. The 306.22 public authority shall maintain a process to review the amount 306.23 of child support determined to be delinquent and to issue 306.24 amended notices of judgment lien in cases of incorrectly 306.25 docketed judgments. 306.26 Sec. 90. Minnesota Statutes 1996, section 548.091, is 306.27 amended by adding a subdivision to read: 306.28 Subd. 13. [FORMS.] The department of human services, after 306.29 consultation with registrars of title, shall prescribe the 306.30 Notice of Judgment Lien. These forms are not subject to chapter 306.31 14. 306.32 Sec. 91. Minnesota Statutes 1996, section 550.37, 306.33 subdivision 24, is amended to read: 306.34 Subd. 24. [EMPLOYEE BENEFITS.] (a) The debtor's right to 306.35 receive present or future payments, or payments received by the 306.36 debtor, under a stock bonus, pension, profit sharing, annuity, 307.1 individual retirement account, individual retirement annuity, 307.2 simplified employee pension, or similar plan or contract on 307.3 account of illness, disability, death, age, or length of service: 307.4 (1) to the extent the plan or contract is described in 307.5 section 401(a), 403, 408, or 457 of the Internal Revenue Code of 307.6 1986, as amended, or payments under the plan or contract are or 307.7 will be rolled over as provided in section 402(a)(5), 403(b)(8), 307.8 or 408(d)(3) of the Internal Revenue Code of 1986, as amended; 307.9 or 307.10 (2) to the extent of the debtor's aggregate interest under 307.11 all plans and contracts up to a present value of $30,000 and 307.12 additional amounts under all the plans and contracts to the 307.13 extent reasonably necessary for the support of the debtor and 307.14 any spouse or dependent of the debtor. 307.15 (b) The exemptions in paragraph (a) do not apply when the 307.16 debt is owed under a support order as defined in section 518.54, 307.17 subdivision 4a. 307.18 Sec. 92. [552.01] [DEFINITIONS.] 307.19 Subdivision 1. [SCOPE.] The definitions in this section 307.20 apply to this chapter. 307.21 Subd. 2. [CLAIM.] "Claim" means the unpaid balance of the 307.22 public authority's judgment against the judgment debtor, 307.23 including all lawful interest and costs incurred. 307.24 Subd. 3. [FINANCIAL INSTITUTION.] "Financial institution" 307.25 means all entities identified in section 13B.06. 307.26 Subd. 4. [JUDGMENT DEBTOR.] "Judgment debtor" means a 307.27 party against whom the public authority has a judgment for the 307.28 recovery of money resulting from unpaid child support. 307.29 Subd. 5. [PUBLIC AUTHORITY.] "Public authority" means the 307.30 public authority responsible for child support enforcement. 307.31 Subd. 6. [THIRD PARTY.] "Third party" means the person or 307.32 entity upon whom the execution levy is served. 307.33 Sec. 93. [552.02] [PUBLIC AUTHORITY'S SUMMARY EXECUTION OF 307.34 CHILD SUPPORT JUDGMENT DEBTS; WHEN AUTHORIZED.] 307.35 The public authority may execute on a money judgment 307.36 resulting from unpaid child support by levying under this 308.1 chapter on indebtedness owed to the judgment debtor by a third 308.2 party. The public authority may execute under this chapter upon 308.3 service of a notice of child support judgment levy for which the 308.4 seal of the court is not required. 308.5 Sec. 94. [552.03] [SCOPE OF GENERAL AND SPECIFIC 308.6 PROVISIONS.] 308.7 General provisions relating to the public authority's 308.8 summary execution as authorized in this chapter are set forth in 308.9 section 552.04. Specific provisions relating to summary 308.10 execution on funds at a financial institution are set forth in 308.11 section 552.05. When the public authority levies against funds 308.12 at a financial institution, the specific provisions of section 308.13 552.05 must be complied with in addition to the general 308.14 provisions of section 552.04. Provisions contained in the 308.15 statutory forms are incorporated in this chapter and have the 308.16 same force of law as any other provisions in this chapter. 308.17 Sec. 95. [552.04] [GENERAL PROVISIONS.] 308.18 Subdivision 1. [RULES OF CIVIL PROCEDURE.] Unless this 308.19 chapter specifically provides otherwise, the Minnesota Rules of 308.20 Civil Procedure for the district courts apply in all proceedings 308.21 under this chapter. 308.22 Subd. 2. [PROPERTY ATTACHABLE BY SERVICE OF LIEN 308.23 NOTICE.] Subject to the exemptions provided by subdivision 3 and 308.24 section 550.37, and any other applicable statute, the service by 308.25 the public authority of a notice of child support judgment levy 308.26 under this chapter attaches all nonexempt indebtedness or money 308.27 due or belonging to the judgment debtor and owing by the third 308.28 party or in the possession or under the control of the third 308.29 party at the time of service of the notice of child support 308.30 judgment levy, whether or not the indebtedness or money has 308.31 become payable. The third party shall not be compelled to pay 308.32 or deliver the same before the time specified by any agreement 308.33 unless the agreement was fraudulently contracted to defeat an 308.34 execution levy or other collection remedy. 308.35 Subd. 3. [PROPERTY NOT ATTACHABLE.] The following property 308.36 is not subject to attachment by a notice of child support 309.1 judgment levy served under this chapter: 309.2 (1) any indebtedness or money due to the judgment debtor, 309.3 unless at the time of the service of the notice of child support 309.4 judgment levy the same is due absolutely or does not depend upon 309.5 any contingency; 309.6 (2) any judgment owing by the third party to the judgment 309.7 debtor, if the third party or the third party's property is 309.8 liable on an execution levy upon the judgment; 309.9 (3) any debt owing by the third party to the judgment 309.10 debtor for which any negotiable instrument has been issued or 309.11 endorsed by the third party; 309.12 (4) any indebtedness or money due to the judgment debtor 309.13 with a cumulative value of less than $10; and 309.14 (5) any disposable earnings, indebtedness, or money that is 309.15 exempt under state or federal law. 309.16 Subd. 4. [SERVICE OF THIRD-PARTY LEVY; NOTICE AND 309.17 DISCLOSURE FORMS.] When levying upon money owed to the judgment 309.18 debtor by a third party, the public authority shall serve a copy 309.19 of the notice of child support judgment levy upon the third 309.20 party either by registered or certified mail, or by personal 309.21 service. Along with a copy of the notice of child support 309.22 judgment levy, the public authority shall serve upon the third 309.23 party a notice of third-party levy and disclosure form that must 309.24 be substantially in the form set forth below. 309.25 OFFICE OF ADMINISTRATIVE HEARINGS 309.26 File No. ........... 309.27 ........ (Public Authority) 309.28 against NOTICE OF THIRD PARTY 309.29 ........ (Judgment Debtor) LEVY AND DISCLOSURE 309.30 and (OTHER THAN EARNINGS) 309.31 ........ (Third Party) 309.32 PLEASE TAKE NOTICE that pursuant to Minnesota Statutes, 309.33 chapter 552, the undersigned, as representative of the public 309.34 authority responsible for child support enforcement, makes 309.35 demand and levies execution upon all money due and owing by you 309.36 to the judgment debtor for the amount of the judgment specified 309.37 below. A copy of the notice of child support judgment levy is 309.38 enclosed. The unpaid judgment balance is $...... 310.1 In responding to this levy, you are to complete the 310.2 attached disclosure form and mail it to the public authority, 310.3 together with your check payable to the public authority, for 310.4 the nonexempt amount owed by you to the judgment debtor or for 310.5 which you are obligated to the judgment debtor, within the time 310.6 limits in chapter 552. 310.7 Two exemption notices are also enclosed according to 310.8 Minnesota Statutes, section 552.02. 310.9 Public Authority 310.10 Address 310.11 (........) 310.12 Telephone Number 310.13 310.14 DISCLOSURE 310.15 On the ... day of ......, 19.., the time of service of the 310.16 execution levy herein, there was due and owing the judgment 310.17 debtor from the third party the following: 310.18 (1) Money. Enter on the line below any amounts due and 310.19 owing the judgment debtor, except earnings, from the third party. 310.20 ......................... 310.21 (2) Setoff. Enter on the line below the amount of any 310.22 setoff, defense, lien, or claim which the third party claims 310.23 against the amount set forth on line (1). State the facts by 310.24 which the setoff, defense, lien, or claim is claimed. (Any 310.25 indebtedness to you incurred by the judgment debtor within ten 310.26 days prior to the receipt of the first execution levy on a debt 310.27 may not be claimed as a setoff, defense, lien, or claim against 310.28 the amount set forth on line (1).) 310.29 ......................... 310.30 (3) Exemption. Enter on the line below any amounts or 310.31 property claimed by the judgment debtor to be exempt from 310.32 execution. 310.33 ......................... 310.34 (4) Adverse Interest. Enter on the line below any amounts 310.35 claimed by other persons by reason of ownership or interest in 310.36 the judgment debtor's property. 310.37 ......................... 311.1 (5) Enter on the line below the total of lines (2), (3), 311.2 and (4). 311.3 ......................... 311.4 (6) Enter on the line below the difference obtained (never 311.5 less than zero when line (5) is subtracted from the amount on 311.6 line (1)). 311.7 ......................... 311.8 (7) Enter on the line below 100 percent of the amount of 311.9 the public authority's claim which remains unpaid. 311.10 ......................... 311.11 (8) Enter on the line below the lesser of line (6) and line 311.12 (7). You are instructed to remit this amount only if it is $10 311.13 or more. 311.14 ......................... 311.15 AFFIRMATION 311.16 I, .......... (person signing Affirmation), am the third 311.17 party or I am authorized by the third party to complete this 311.18 nonearnings disclosure, and have done so truthfully and to the 311.19 best of my knowledge. 311.20 Dated:.......... Signature 311.21 .......... 311.22 Title 311.23 .......... 311.24 Telephone Number 311.25 Subd. 5. [THIRD-PARTY DISCLOSURE AND REMITTANCE.] Within 311.26 15 days after receipt of the notice of child support judgment 311.27 levy, unless governed by section 552.05, the third party shall 311.28 disclose and remit to the public authority as much of the amount 311.29 due as the third party's own debt equals to the judgment debtor. 311.30 Subd. 6. [ORAL DISCLOSURE.] Before or after the service of 311.31 a written disclosure by a third party under subdivision 5, upon 311.32 a showing by affidavit upon information and belief that an oral 311.33 examination of the third party would provide a complete 311.34 disclosure of relevant facts, any party to the execution 311.35 proceedings may obtain an ex parte order requiring the third 311.36 party, or a representative of the third party designated by name 311.37 or by title, to appear for oral examination before the court or 311.38 a referee appointed by the court. Notice of the examination 312.1 must be given to all parties. 312.2 Subd. 7. [SUPPLEMENTAL COMPLAINT.] If a third party holds 312.3 property, money, earnings, or other indebtedness by a title that 312.4 is void as to the judgment debtor's creditors, the property may 312.5 be levied on although the judgment debtor would be barred from 312.6 maintaining an action to recover the property, money, earnings, 312.7 or other indebtedness. In this and all other cases where the 312.8 third party denies liability, the public authority may move the 312.9 court at any time before the third party is discharged, on 312.10 notice to both the judgment debtor and the third party for an 312.11 order making the third party a party to supplemental action and 312.12 granting the public authority leave to file a supplemental 312.13 complaint against the third party and the judgment debtor. The 312.14 supplemental complaint shall set forth the facts upon which the 312.15 public authority claims to charge the third party. If probable 312.16 cause is shown, the motion shall be granted. The supplemental 312.17 complaint shall be served upon the third party and the judgment 312.18 debtor and any other parties. The parties served shall answer 312.19 or respond pursuant to the Minnesota Rules of Civil Procedure 312.20 for the district courts, and if they fail to do so, judgment by 312.21 default may be entered against them. 312.22 Subd. 8. [JUDGMENT AGAINST THIRD PARTY UPON FAILURE TO 312.23 DISCLOSE OR REMIT.] Judgment may be entered against a third 312.24 party who has been served with a notice of child support 312.25 judgment levy and fails to disclose or remit the levied funds as 312.26 required in this chapter. Upon order to show cause served on 312.27 the third party and notice of motion supported by affidavit of 312.28 facts and affidavit of service upon both the judgment debtor and 312.29 third party, the court may render judgment against the third 312.30 party for an amount not exceeding 100 percent of the amount 312.31 claimed in the execution. Judgment against the third party 312.32 under this section shall not bar the public authority from 312.33 further remedies under this chapter as a result of any 312.34 subsequent defaults by the third party. The court upon good 312.35 cause shown may remove the default and permit the third party to 312.36 disclose or remit on just terms. 313.1 Subd. 9. [SATISFACTION.] Upon expiration, the public 313.2 authority making the execution shall file a partial satisfaction 313.3 by amount or the total satisfaction with the court administrator 313.4 without charge. 313.5 Subd. 10. [THIRD-PARTY GOOD FAITH REQUIREMENT.] The third 313.6 party is not liable to the judgment debtor, public authority, or 313.7 other person for wrongful retention if the third party retains 313.8 or remits disposable earnings, indebtedness, or money of the 313.9 judgment debtor or any other person, pending the third party's 313.10 disclosure or consistent with the disclosure the third party 313.11 makes, if the third party has a good faith belief that the 313.12 property retained or remitted is subject to the execution. In 313.13 addition, the third party may, at any time before or after 313.14 disclosure, proceed under Rule 67 of the Minnesota Rules of 313.15 Civil Procedure to make deposit into court. No third party is 313.16 liable for damages if the third party complies with the 313.17 provisions of this chapter. 313.18 Subd. 11. [BAD FAITH CLAIM.] If, in a proceeding brought 313.19 under section 552.05, subdivision 9, or a similar proceeding 313.20 under this chapter to determine a claim of exemption, the claim 313.21 of exemption is not upheld, and the court finds that it was 313.22 asserted in bad faith, the public authority shall be awarded 313.23 actual damages, costs, reasonable attorney fees resulting from 313.24 the additional proceedings, and an amount not to exceed $100. 313.25 If the claim of exemption is upheld, and the court finds that 313.26 the public authority disregarded the claim of exemption in bad 313.27 faith, the judgment debtor shall be awarded actual damages, 313.28 costs, reasonable attorney fees resulting from the additional 313.29 proceedings, and an amount not to exceed $100. The underlying 313.30 judgment shall be modified to reflect assessment of damages, 313.31 costs, and attorney fees. However, if the party in whose favor 313.32 a penalty assessment is made is not actually indebted to that 313.33 party's attorney for fees, the attorney fee award shall be made 313.34 directly to the attorney, and if not paid, an appropriate 313.35 judgment in favor of the attorney shall be entered. Any action 313.36 by a public authority made in bad faith and in violation of this 314.1 chapter renders the execution levy void and the public authority 314.2 liable to the judgment debtor named in the execution levy in the 314.3 amount of $100, actual damages, and reasonable attorney fees and 314.4 costs. 314.5 Subd. 12. [DISCHARGE OF A THIRD PARTY.] Subject to 314.6 subdivisions 6 and 13, the third party, after disclosure, shall 314.7 be discharged of any further obligation to the public authority 314.8 when one of the conditions in paragraphs (a) to (c) are met. 314.9 (a) The third party discloses that the third party is not 314.10 indebted to the judgment debtor or does not possess any 314.11 earnings, property, money, or indebtedness belonging to the 314.12 judgment debtor that is attachable as defined in subdivision 2. 314.13 The disclosure is conclusive against the public authority and 314.14 discharges the third party from any further obligation to the 314.15 public authority other than to retain and remit all nonexempt 314.16 disposable earnings, property, indebtedness, or money of the 314.17 judgment debtor which was disclosed. 314.18 (b) The third party discloses that the third party is 314.19 indebted to the judgment debtor as indicated on the execution 314.20 disclosure form. The disclosure is conclusive against the 314.21 public authority and discharges the third party from any further 314.22 obligation to the public authority other than to retain and 314.23 remit all nonexempt disposable earnings, property, indebtedness, 314.24 or money of the judgment debtor that was disclosed. 314.25 (c) The court may, upon motion of an interested person, 314.26 discharge the third party as to any disposable earnings, money, 314.27 property, or indebtedness in excess of the amount that may be 314.28 required to satisfy the public authority's claim. 314.29 Subd. 13. [EXCEPTIONS TO DISCHARGE OF A THIRD PARTY.] The 314.30 third party is not discharged if: 314.31 (a) Within 20 days of the service of the third party's 314.32 disclosure, an interested person serves a motion relating to the 314.33 execution levy. The hearing on the motion must be scheduled to 314.34 be heard within 30 days of the service of the motion. 314.35 (b) The public authority moves the court for leave to file 314.36 a supplemental complaint against the third party, as provided 315.1 for in subdivision 7, and the court upon proper showing vacates 315.2 the discharge of the third party. 315.3 Subd. 14. [JOINDER AND INTERVENTION BY PERSONS IN 315.4 INTEREST.] If it appears that a person, who is not a party to 315.5 the action, has or claims an interest in any of the disposable 315.6 earnings, other indebtedness, or money, the court shall permit 315.7 that person to intervene or join in the execution proceeding 315.8 under this chapter. If that person does not appear, the court 315.9 may summon that person to appear or order the claim barred. The 315.10 person so appearing or summoned shall be joined as a party and 315.11 be bound by the judgment. 315.12 Subd. 15. [APPEAL.] A party to an execution proceeding 315.13 aggrieved by an order or final judgment may appeal as in other 315.14 civil cases. 315.15 Subd. 16. [PRIORITY OF LEVY.] Notwithstanding section 315.16 52.12, a levy by the public authority made under this section on 315.17 an obligor's funds on deposit in a financial institution located 315.18 in this state has priority over any unexercised right of setoff 315.19 of the financial institution to apply the levied funds toward 315.20 the balance of an outstanding loan or loans owed by the obligor 315.21 to the financial institution. A claim by the financial 315.22 institution that it exercised its right to setoff prior to the 315.23 levy by the public authority must be substantiated by evidence 315.24 of the date of the setoff and must be verified by the sworn 315.25 statement of a responsible corporate officer of the financial 315.26 institution. For purposes of determining the priority of a levy 315.27 made under this section, the levy must be treated as if it were 315.28 an execution made under chapter 550. 315.29 Sec. 96. [552.05] [SUMMARY EXECUTION UPON FUNDS AT 315.30 FINANCIAL INSTITUTION.] 315.31 Subdivision 1. [PROCEDURE.] In addition to the provisions 315.32 of section 552.04, when levying upon funds at a financial 315.33 institution, this section must be complied with. If the notice 315.34 of child support judgment levy is being used by the public 315.35 authority to levy funds of a judgment debtor who is a natural 315.36 person and if the funds to be levied are held on deposit at any 316.1 financial institution, the public authority shall serve with the 316.2 notice of child support judgment levy and summary execution two 316.3 copies of an exemption notice. The notice must be substantially 316.4 in the form determined by the public authority. Failure of the 316.5 public authority to send the exemption notice renders the 316.6 execution levy void, and the financial institution shall take no 316.7 action. Upon receipt of the notice of child support judgment 316.8 levy and exemption notices, the financial institution shall 316.9 retain as much of the amount due as the financial institution 316.10 has on deposit owing to the judgment debtor, but not more than 316.11 100 percent of the amount remaining due on the judgment. 316.12 The notice informing a judgment debtor that an execution 316.13 levy has been used by the public authority to attach funds of 316.14 the judgment debtor to satisfy a claim must be substantially in 316.15 the form determined by the public authority. 316.16 Subd. 2. [EFFECT OF EXEMPTION NOTICE.] Within two business 316.17 days after receipt of the execution levy and exemption notices, 316.18 the financial institution shall serve upon the judgment debtor 316.19 two copies of the exemption notice. The financial institution 316.20 shall serve the notice by first class mail to the last known 316.21 address of the judgment debtor. If no claim of exemption is 316.22 received by the financial institution within 14 days after the 316.23 exemption notices are mailed to the judgment debtor, the funds 316.24 remain subject to the execution levy and shall be remitted to 316.25 the public authority within seven days. If the judgment debtor 316.26 elects to claim an exemption, the judgment debtor shall complete 316.27 the exemption notice, sign it under penalty of perjury, and 316.28 deliver one copy to the financial institution and one copy to 316.29 the public authority within 14 days of the date postmarked on 316.30 the correspondence mailed to the judgment debtor containing the 316.31 exemption notices. Failure of the judgment debtor to deliver 316.32 the executed exemption notice does not constitute a waiver of 316.33 any claimed right to an exemption. Upon timely receipt of a 316.34 claim of exemption, funds not claimed to be exempt by the 316.35 judgment debtor remain subject to the execution levy. All money 316.36 claimed to be exempt shall be released to the judgment debtor 317.1 upon the expiration of seven days after the date postmarked on 317.2 the envelope containing the executed exemption notice mailed to 317.3 the financial institution, or the date of personal delivery of 317.4 the executed exemption notice to the financial institution, 317.5 unless within that time the public authority interposes an 317.6 objection to the exemption. 317.7 Subd. 3. [OBJECTION TO EXEMPTION CLAIM.] Objection shall 317.8 be interposed by mailing or delivering one copy of the written 317.9 objection to the financial institution and one copy of the 317.10 written objection to the judgment debtor along with a copy of 317.11 the judgment debtor's claimed exemption form. Both copies of an 317.12 objection to an exemption claim shall be mailed or delivered on 317.13 the same date. The financial institution may rely on the date 317.14 of mailing or delivery of a notice to it in computing any time 317.15 periods in this section. The written objection must be 317.16 substantially in the form specified in subdivision 5. 317.17 Subd. 4. [DUTIES OF FINANCIAL INSTITUTION IF OBJECTION IS 317.18 MADE TO EXEMPTION CLAIM.] Upon receipt of a written objection 317.19 from the public authority within the specified seven-day period, 317.20 the financial institution shall retain the funds claimed to be 317.21 exempt. Unless the financial institution receives a request for 317.22 hearing and notice of hearing from the judgment debtor asserting 317.23 exemption rights within ten days after receipt of a written 317.24 objection to the exemption, the funds remain subject to the 317.25 execution levy as if no claim of exemption had been made and 317.26 shall be remitted to the public authority within seven days. If 317.27 a request for hearing and notice of hearing to determine the 317.28 validity of a claim of exemption is received by the financial 317.29 institution within the period provided, it shall retain the 317.30 funds claimed to be exempt until otherwise ordered by the court. 317.31 Subd. 5. [NOTICE OF OBJECTION.] (a) The written objection 317.32 to the judgment debtor's claim of exemption must be in 317.33 substantially the following form: 317.34 OFFICE OF ADMINISTRATIVE HEARINGS 317.35 ....... (Public Authority) OBJECTION TO 317.36 ....... (Judgment Debtor) EXEMPTION CLAIM 317.37 ....... (Garnishee)(Third Party) 318.1 The public authority objects to your claim for exemption 318.2 from levy of execution for the following reason(s): 318.3 .................... 318.4 .................... 318.5 .................... 318.6 Because of this objection, your financial institution will 318.7 retain the funds you claimed to be exempt for an additional ten 318.8 days. If you wish to request a hearing on your exemption claim, 318.9 you should do so within ten days of your receipt of this 318.10 objection. You may request a hearing by completing the attached 318.11 form and filing it with the office of administrative hearings. 318.12 (1) The office of administrative hearings shall provide 318.13 clerical assistance to help with the writing and filing of a 318.14 Request for Hearing by any person not represented by counsel. 318.15 The office of administrative hearings may charge a fee of $1 for 318.16 the filing of a Request for Hearing. 318.17 (2) Upon the filing of a Request for Hearing, the office of 318.18 administrative hearings shall schedule the matter for a hearing 318.19 no later than five business days from the date of filing. The 318.20 office of administrative hearings shall promptly send a 318.21 completed copy of the request, including the hearing date, time, 318.22 and place to the adverse party and to the financial institution 318.23 by first class mail. 318.24 (3) If it is possible that the financial institution might 318.25 not receive the requested mailed form mailed from the court 318.26 administrator within ten days, then you may want to personally 318.27 deliver a copy of the request to the financial institution after 318.28 you have filed your request with the office of administrative 318.29 hearings. 318.30 (4) An order stating whether your funds are exempt shall be 318.31 issued by the office of administrative hearings within three 318.32 days of the date of the hearing. 318.33 If you do not file a Request for Hearing within ten days of 318.34 the date you receive this objection, your financial institution 318.35 may turn your funds over to the public authority. 319.1 If you file a Request for Hearing and your financial 319.2 institution receives it within ten days of the date it received 319.3 this objection, your financial institution will retain your 319.4 funds claimed to be exempt until otherwise ordered by the office 319.5 of administrative hearings. 319.6 ........... 319.7 Attorney for Public Authority 319.8 Subd. 6. [REQUEST FOR HEARING AND NOTICE FOR HEARING.] The 319.9 request for hearing accompanying the objection notice must be in 319.10 substantially the following form: 319.11 OFFICE OF ADMINISTRATIVE HEARINGS 319.12 ........(Public Authority) REQUEST FOR HEARING 319.13 .....(Judgment Debtor) AND NOTICE FOR HEARING 319.14 .....(Garnishee)(Third Party) 319.15 I hereby request a hearing to resolve the exemption claim 319.16 which has been made in this case regarding funds in the account 319.17 of ..... (Judgment Debtor) at the ..... (Financial Institution.) 319.18 I believe the property being held is exempt because 319.19 ................................................ 319.20 Dated: ............. .............. 319.21 (JUDGMENT DEBTOR) 319.22 ................. 319.23 (ADDRESS) 319.24 ................. 319.25 HEARING DATE: ............ 319.26 HEARING PLACE: ........... 319.27 (Note to both parties: Bring with you to the hearing all 319.28 documents and materials relevant to the exemption claim and 319.29 objection. Failure to do so could delay the court's decision.) 319.30 Subd. 7. [RIGHT TO REQUEST REVIEW.] (a) To request 319.31 administrative review of an action taken by the public authority 319.32 under this section, the obligor must make a request in writing 319.33 directed to the public authority or file a motion with the court 319.34 within 20 days of the date the notice of a child support 319.35 judgment levy was served on the obligor. 319.36 (b) The public authority's receipt of a written request for 319.37 administrative review starts the administrative process. At a 319.38 hearing conducted under section 518.5511, the only issues to be 319.39 determined are whether: 319.40 (1) the public authority complied with the process required 320.1 by this section; 320.2 (2) the amount stated in the notice of child support 320.3 judgment levy is owed by the obligor; and 320.4 (3) the amount stated in the notice of child support 320.5 judgment levy is correct. 320.6 (c) The obligor's filing of a motion requesting a court 320.7 hearing under the Rules of Civil Procedure serves to stay the 320.8 levy on the obligor's property, but the lien remains in force 320.9 and effect until the court has issued a final ruling on the 320.10 matter and all periods for appeal have expired. At a court 320.11 hearing requested by the obligor, the only issues to be 320.12 determined are whether: 320.13 (1) the public authority complied with the process required 320.14 by this section; 320.15 (2) the amount stated in the notice of child support 320.16 judgment levy is owed by the obligor; and 320.17 (3) the amount stated in the notice of child support 320.18 judgment levy is correct. 320.19 (d) The court may review the proceeding taken by the public 320.20 authority under this section and may correct any mistakes of 320.21 fact but shall not reduce or retroactively modify child support 320.22 arrears. 320.23 Subd. 8. [RELEASE OF FUNDS.] At any time during the 320.24 procedure specified in this section, the judgment debtor or the 320.25 attorney for the public authority or the public authority may, 320.26 by a writing dated after the service of the writ of execution, 320.27 direct the financial institution to release the funds in 320.28 question to the other party. Upon receipt of a release, the 320.29 financial institution shall release the funds as directed. 320.30 Subd. 9. [SUBSEQUENT PROCEEDINGS; BAD FAITH CLAIM.] If in 320.31 subsequent proceedings brought by the judgment debtor or the 320.32 public authority, the claim of exemption is not upheld, and the 320.33 office of administrative hearings finds that it was asserted in 320.34 bad faith, the public authority shall be awarded actual damages, 320.35 costs, and reasonable attorney fees resulting from the 320.36 additional proceedings, and an amount not to exceed $100. The 321.1 underlying judgment must be modified to reflect assessment of 321.2 damages, costs, and attorney fees. However, if the party in 321.3 whose favor a penalty assessment is made is not actually 321.4 indebted to the party's attorney for fees, the attorney's fee 321.5 award shall be made directly to the attorney and if not paid, an 321.6 appropriate judgment in favor of the attorney shall be entered. 321.7 Upon motion of any party in interest, on notice, the office of 321.8 administrative hearings shall determine the validity of any 321.9 claim of exemption, and may make any order necessary to protect 321.10 the rights of those interested. No financial institution is 321.11 liable for damages for complying with this section. Both copies 321.12 of an exemption claim or an objection to an exemption claim must 321.13 be mailed or delivered on the same date. The financial 321.14 institution may rely on the date of mailing or delivery of a 321.15 notice to it in computing any time periods in this section. 321.16 Subd. 10. [FORMS.] The public authority shall develop 321.17 statutory forms for use as required under this section. 321.18 Sec. 97. [CHILD SUPPORT ENFORCEMENT PROGRAM; SERVICES 321.19 DELIVERY STUDY.] 321.20 The commissioner of human services shall conduct a study of 321.21 the overall state child support enforcement delivery system in 321.22 order to appropriately meet the performance requirements of new 321.23 federal law. 321.24 Sec. 98. [AGENCY CONSULTATION ON SUSPENDING RECREATIONAL 321.25 LICENSES.] 321.26 The commissioner shall consult with other state agencies to 321.27 establish procedures to meet federal requirements to suspend 321.28 recreational licenses of child support obligors who fail to pay 321.29 child support. 321.30 Sec. 99. [TRANSFER TO COMMISSIONER OF CHILDREN, FAMILIES, 321.31 AND LEARNING; REVISOR INSTRUCTION.] 321.32 Effective July 1, 1997, all duties and funding related to 321.33 family visitation centers under Minnesota Statutes, section 321.34 256F.09, are transferred to the commissioner of children, 321.35 families, and learning. In the next edition of Minnesota 321.36 Statutes, the revisor of statutes shall renumber Minnesota 322.1 Statutes, section 256F.09, in Minnesota Statutes, chapter 119A. 322.2 Sec. 100. [INSTRUCTION TO REVISOR.] 322.3 The revisor shall delete the references to sections 518.611 322.4 and 518.613 and insert a reference to section 518.6111 wherever 322.5 the occur in Minnesota Statutes and Minnesota Rules. 322.6 Sec. 101. [REPEALER.] 322.7 (a) Minnesota Statutes 1996, sections 518C.9011; and 322.8 609.375, subdivisions 3, 4, and 6, are repealed. 322.9 (b) Minnesota Statutes 1996, sections 256.74; 256.979, 322.10 subdivision 9; 256F.05, subdivisions 5 and 7; 518.5511, 322.11 subdivisions 5, 6, 7, 8, and 9; 518.611; 518.613; 518.645; and 322.12 518C.502, are repealed effective July 1, 1997. 322.13 Sec. 102. [EFFECTIVE DATE.] 322.14 Section 1 is effective the day following final enactment. 322.15 Sections 3, and 79 to 89 are effective July 1, 1998. 322.16 Section 82 applies only to judgments first docketed on or after 322.17 July 1, 1998. 322.18 Sections 20 to 27, amending the family preservation fund 322.19 provisions, are effective July 1, 1997. 322.20 ARTICLE 7 322.21 CONTINUING CARE FOR DISABLED PERSONS 322.22 Section 1. Minnesota Statutes 1996, section 62E.14, is 322.23 amended by adding a subdivision to read: 322.24 Subd. 4e. [WAIVER OF PREEXISTING CONDITIONS; PERSONS 322.25 COVERED BY PUBLICLY FUNDED HEALTH PROGRAMS.] A person may enroll 322.26 in the comprehensive plan with a waiver of the preexisting 322.27 condition limitation in subdivision 3, provided that: 322.28 (1) the person was formerly enrolled in the medical 322.29 assistance, general assistance medical care, or MinnesotaCare 322.30 program; 322.31 (2) the person is a Minnesota resident; and 322.32 (3) the person applies within 90 days of termination from 322.33 medical assistance, general assistance medical care, or 322.34 MinnesotaCare program. 322.35 Sec. 2. Minnesota Statutes 1996, section 245.652, 322.36 subdivision 1, is amended to read: 323.1 Subdivision 1. [PURPOSE.] The regional treatment centers 323.2 shall provide services designed to end a person's reliance on 323.3 chemical use or a person's chemical abuse and increase effective 323.4 and chemical-free functioning. Clinically effective programs 323.5 must be provided in accordance with section 246.64. Services 323.6 may be offered on the regional center campus or at sites 323.7 elsewhere in thecatchmentarea served by the regional treatment 323.8 center. 323.9 Sec. 3. Minnesota Statutes 1996, section 245.652, 323.10 subdivision 2, is amended to read: 323.11 Subd. 2. [SERVICES OFFERED.] Services providedmustmay 323.12 include, but are not limited to, the following: 323.13 (1) primary and extended residential care, including 323.14 residential treatment programs of varied duration intended to 323.15 deal with a person's chemical dependency or chemical abuse 323.16 problems; 323.17 (2) follow-up care to persons discharged from regional 323.18 treatment center programs or other chemical dependency programs; 323.19 (3) outpatient treatment programs; and 323.20 (4) other treatment services, as appropriate and as 323.21 provided under contract or shared service agreements. 323.22 Sec. 4. Minnesota Statutes 1996, section 245.652, 323.23 subdivision 4, is amended to read: 323.24 Subd. 4. [SYSTEM LOCATIONS.]Programs shall be located in323.25Anoka, Brainerd, Fergus Falls, St. Peter, and Willmar and may be323.26offered at other selected sites.Programs are currently located 323.27 in Walker, Anoka, Brainerd, Fergus Falls, St. Peter, Willmar, 323.28 and in the Moose Lake area, Cloquet, and Cambridge. Locations 323.29 of state-operated chemical dependency programs shall be 323.30 determined by needs of Minnesota counties and consumers. The 323.31 commissioner of human services shall have the authority to 323.32 consolidate or close any state-operated chemical dependency 323.33 programs that are not able to generate sufficient revenues to 323.34 cover their expenses, after reasonable attempts to generate 323.35 additional revenues have failed. Before the closure or 323.36 consolidation of any state-operated chemical dependency program, 324.1 the commissioner shall notify the chairs of the senate health 324.2 and family security budget division and the house of 324.3 representatives health and human services finance division. 324.4 Sec. 5. Minnesota Statutes 1996, section 246.0135, is 324.5 amended to read: 324.6 246.0135 [OPERATION OF REGIONAL TREATMENT CENTERS.] 324.7 (a) The commissioner of human services is prohibited from 324.8 closing any regional treatment center or state-operated nursing 324.9 homeorand, except for chemical dependency programs as provided 324.10 in section 245.652, any program at any of the regional treatment 324.11 centers or state-operated nursing homes, without specific 324.12 legislative authorization. For persons with mental retardation 324.13 or related conditions who move from one regional treatment 324.14 center to another regional treatment center, the provisions of 324.15 section 256B.092, subdivision 10, must be followed for both the 324.16 discharge from one regional treatment center and admission to 324.17 another regional treatment center, except that the move is not 324.18 subject to the consensus requirement of section 256B.092, 324.19 subdivision 10, paragraph (b). 324.20 (b) Prior to closing or downsizing a regional treatment 324.21 center, the commissioner of human services shall be responsible 324.22 for assuring that community-based alternatives developed in 324.23 response are adequate to meet the program needs identified by 324.24 each county within the catchment area and do not require 324.25 additional local county property tax expenditures. 324.26 (c) The nonfederal share of the cost of alternative 324.27 treatment or care developed as the result of the closure of a 324.28 regional treatment center, including costs associated with 324.29 fulfillment of responsibilities under chapter 253B shall be paid 324.30 from state funds appropriated for purposes specified in section 324.31 246.013. 324.32 (d) Counties in the catchment area of a regional treatment 324.33 center which has been closed or downsized may not at any time be 324.34 required to pay a greater cost of care for alternative care and 324.35 treatment than the county share set by the commissioner for the 324.36 cost of care provided by regional treatment centers. 325.1 (e) The commissioner may not divert state funds used for 325.2 providing for care or treatment of persons residing in a 325.3 regional treatment center for purposes unrelated to the care and 325.4 treatment of such persons. 325.5 Sec. 6. Minnesota Statutes 1996, section 246.02, 325.6 subdivision 2, is amended to read: 325.7 Subd. 2. The commissioner of human services shall act with 325.8 the advice of the medical policy directional committee on mental 325.9 health in the appointment and removal of the chief executive 325.10 officers of the following institutions: Anoka-Metro Regional 325.11 Treatment Center, Ah-Gwah-Ching Center, Fergus Falls Regional 325.12 Treatment Center, St. Peter Regional Treatment Center and 325.13 Minnesota Security Hospital, Willmar Regional Treatment Center, 325.14Faribault Regional Center,Cambridge Regional Human Services 325.15 Center, Brainerd Regional Human Services Center,and until June325.1630, 1995, Moose Lake Regional Treatment Center, and after June325.1730, 1995,Minnesota Sexual Psychopathic Personality Treatment 325.18 Center and until June 30, 1998, Faribault Regional Center. 325.19 Sec. 7. Minnesota Statutes 1996, section 252.025, 325.20 subdivision 1, is amended to read: 325.21 Subdivision 1. [REGIONAL TREATMENT CENTERS.] State 325.22 hospitals for persons with mental retardation shall be 325.23 established and maintained at Faribault until June 30, 1998, 325.24 Cambridge and Brainerd, and notwithstanding any provision to the 325.25 contrary they shall be respectively known as the Faribault 325.26 regional center, the Cambridge regional human services center, 325.27 and the Brainerd regional human services center. Each of the 325.28 foregoing state hospitals shall also be known by the name of 325.29 regional center at the discretion of the commissioner of human 325.30 services. The terms "human services" or "treatment" may be 325.31 included in the designation. 325.32 Sec. 8. Minnesota Statutes 1996, section 252.025, 325.33 subdivision 4, is amended to read: 325.34 Subd. 4. [STATE-PROVIDED SERVICES.] (a) It is the policy 325.35 of the state to capitalize and recapitalize the regional 325.36 treatment centers as necessary to prevent depreciation and 326.1 obsolescence of physical facilities and to ensure they retain 326.2 the physical capability to provide residential programs. 326.3 Consistent with that policy and with section 252.50, and within 326.4 the limits of appropriations made available for this purpose, 326.5 the commissioner may establish, by June 30, 1991, the following 326.6 state-operated, community-based programs for the least 326.7 vulnerable regional treatment center residents: at Brainerd 326.8 regional services center, two residential programs and two day 326.9 programs; at Cambridge regional treatment center, four 326.10 residential programs and two day programs; at Faribault regional 326.11 treatment center, ten residential programs and six day programs; 326.12 at Fergus Falls regional treatment center, two residential 326.13 programs and one day program; at Moose Lake regional treatment 326.14 center, four residential programs and two day programs; and at 326.15 Willmar regional treatment center, two residential programs and 326.16 one day program. 326.17 (b) By January 15, 1991, the commissioner shall report to 326.18 the legislature a plan to provide continued regional treatment 326.19 center capacity and state-operated, community-based residential 326.20 and day programs for persons with developmental disabilities at 326.21 Brainerd, Cambridge,Faribault,Fergus Falls, St. Peter, and 326.22 Willmar, as follows: 326.23 (1) by July 1, 1998, continued regional treatment center 326.24 capacity to serve 350 persons with developmental disabilities as 326.25 follows: at Brainerd, 80 persons; at Cambridge, 12 persons;at326.26Faribault, 110 persons;at Fergus Falls, 60 persons; at St. 326.27 Peter, 35 persons; at Willmar, 25 persons; and up to 16 crisis 326.28 beds in the Twin Cities metropolitan area; and 326.29 (2) by July 1, 1999, continued regional treatment center 326.30 capacity to serve 254 persons with developmental disabilities as 326.31 follows: at Brainerd, 57 persons; at Cambridge, 12 persons;at326.32Faribault, 80 persons;at Fergus Falls, 35 persons; at St. 326.33 Peter, 30 persons; at Willmar, 12 persons, and up to 16 crisis 326.34 beds in the Twin Cities metropolitan area. In addition, the 326.35 plan shall provide for the capacity to provide residential 326.36 services to 570 persons with developmental disabilities in 95 327.1 state-operated, community-based residential programs. 327.2 The commissioner is subject to a mandamus action under 327.3 chapter 586 for any failure to comply with the provisions of 327.4 this subdivision. 327.5 Sec. 9. Minnesota Statutes 1996, section 252.025, is 327.6 amended by adding a subdivision to read: 327.7 Subd. 7. [MINNESOTA EXTENDED TREATMENT OPTIONS.] The 327.8 commissioner shall develop by July 1, 1997, the Minnesota 327.9 extended treatment options to serve Minnesotans who have mental 327.10 retardation and exhibit severe behaviors which present a risk to 327.11 public safety. This program will provide specialized 327.12 residential services on the Cambridge campus and an array of 327.13 community support services statewide. 327.14 Sec. 10. Minnesota Statutes 1996, section 252.32, 327.15 subdivision 1a, is amended to read: 327.16 Subd. 1a. [SUPPORT GRANTS.] (a) Provision of support 327.17 grants must be limited to families who require support and whose 327.18 dependents are under the age of 22 and who have mental 327.19 retardation or who have a related condition and who have been 327.20 determined by a screening team established under section 327.21 256B.092 to be at risk of institutionalization. Families who 327.22 are receiving home and community-based waivered services for 327.23 persons with mental retardation or related conditions are not 327.24 eligible for support grants. Families whose annual adjusted 327.25 gross income is $60,000 or more are not eligible for support 327.26 grants except in cases where extreme hardship is demonstrated. 327.27 Beginning in state fiscal year 1994, the commissioner shall 327.28 adjust the income ceiling annually to reflect the projected 327.29 change in the average value in the United States Department of 327.30 Labor Bureau of Labor Statistics consumer price index (all 327.31 urban) for that year. 327.32 (b) Support grants may be made available as monthly subsidy 327.33 grants and lump sum grants. 327.34 (c) Support grants may be issued in the form of cash, 327.35 voucher, and direct county payment to a vendor. 327.36 (d) Applications for the support grant shall be made by the 328.1 legal guardian to the county social service agencyto the328.2department of human services. The application shall specify the 328.3 needs of the families, the form of the grant requested by the 328.4 families, and that the families have agreed to use the support 328.5 grant for items and services within the designated reimbursable 328.6 expense categories and recommendations of the county. 328.7 (e) Families who were receiving subsidies on the date of 328.8 implementation of the $60,000 income limit in paragraph (a) 328.9 continue to be eligible for a family support grant until 328.10 December 31, 1991, if all other eligibility criteria are met. 328.11 After December 31, 1991, these families are eligible for a grant 328.12 in the amount of one-half the grant they would otherwise 328.13 receive, for as long as they remain eligible under other 328.14 eligibility criteria. 328.15 Sec. 11. Minnesota Statutes 1996, section 252.32, 328.16 subdivision 3, is amended to read: 328.17 Subd. 3. [AMOUNT OF SUPPORT GRANT; USE.] Support grant 328.18 amounts shall be determined by thecommissioner of human328.19servicescounty social service agency. Each service and item 328.20 purchased with a support grant must: 328.21 (1) be over and above the normal costs of caring for the 328.22 dependent if the dependent did not have a disability; 328.23 (2) be directly attributable to the dependent's disabling 328.24 condition; and 328.25 (3) enable the family to delay or prevent the out-of-home 328.26 placement of the dependent. 328.27 The design and delivery of services and items purchased 328.28 under this section must suit the dependent's chronological age 328.29 and be provided in the least restrictive environment possible, 328.30 consistent with the needs identified in the individual service 328.31 plan. 328.32 Items and services purchased with support grants must be 328.33 those for which there are no other public or private funds 328.34 available to the family. Fees assessed to parents for health or 328.35 human services that are funded by federal, state, or county 328.36 dollars are not reimbursable through this program. 329.1 The maximum monthly amount shall be $250 per eligible 329.2 dependent, or $3,000 per eligible dependent per state fiscal 329.3 year, within the limits of available funds.During fiscal year329.41992 and 1993, the maximum monthly grant awarded to families who329.5are eligible for medical assistance shall be $200, except in329.6cases where extreme hardship is demonstrated.Thecommissioner329.7 county social service agency may consider the dependent's 329.8 supplemental security income in determining the amount of the 329.9 support grant.A varianceThe county social service agency may 329.10be granted by the commissioner toexceed $3,000 per state fiscal 329.11 year per eligible dependent for emergency circumstances in cases 329.12 where exceptional resources of the family are required to meet 329.13 the health, welfare-safety needs of the child. Thecommissioner329.14 county social service agency may set aside up to five percent of 329.15the appropriationits allocation to fund emergency situations. 329.16 Effective July 1, 1997, county social service agencies 329.17 shall continue to provide funds to families receiving state 329.18 grants on June 30, 1997, if eligibility criteria continue to be 329.19 met. Any adjustments to their monthly grant amount must be 329.20 based on the needs of the family and funding availability. 329.21 Sec. 12. Minnesota Statutes 1996, section 252.32, 329.22 subdivision 3a, is amended to read: 329.23 Subd. 3a. [REPORTS ANDREIMBURSEMENTALLOCATIONS.] (a) The 329.24 commissioner shall specify requirements for quarterly fiscal and 329.25 annual program reports according to section 256.01, subdivision 329.26 2, paragraph (17). Program reports shall include data which 329.27 will enable the commissioner to evaluate program effectiveness 329.28 and to audit compliance. The commissioner shall reimburse 329.29 county costs on a quarterly basis. 329.30 (b) Beginning January 1, 1998, the commissioner shall 329.31 allocate state funds made available under this section to county 329.32 social service agencies on a calendar year basis. The 329.33 commissioner shall allocate to each county first in amounts 329.34 equal to each county's guaranteed floor as described in clause 329.35 (1), and second, any remaining funds, after the allocation of 329.36 funds to the newly participating counties as provided for in 330.1 clause (3), shall be allocated in proportion to each county's 330.2 total number of families receiving a grant on July 1 of the most 330.3 recent calendar year. 330.4 (1) Each county's guaranteed floor shall be calculated as 330.5 follows: 330.6 (i) 95 percent of the county's allocation received in the 330.7 preceding calendar year. For the calendar year 1998 allocation, 330.8 the preceding calendar year shall be considered to be double the 330.9 six-month allocation as provided in clause (2); 330.10 (ii) when the amount of funds available for allocation is 330.11 less than the amount available in the preceding year, each 330.12 county's previous year allocation shall be reduced in proportion 330.13 to the reduction in statewide funding, for the purpose of 330.14 establishing the guaranteed floor. 330.15 (2) For the period July 1, 1997, to December 31, 1997, the 330.16 commissioner shall allocate to each county an amount equal to 330.17 the actual, state approved, grants issued to the families for 330.18 the month of January 1997, multiplied by six. This six-month 330.19 allocation shall be combined with the calendar year 1998 330.20 allocation and be administered as an 18-month allocation. 330.21 (3) At the commissioner's discretion, funds may be 330.22 allocated to any nonparticipating county that requests an 330.23 allocation under this section. Allocations to newly 330.24 participating counties are dependent upon the availability of 330.25 funds, as determined by the actual expenditure amount of the 330.26 participating counties for the most recently completed calendar 330.27 year. 330.28 (4) The commissioner shall regularly review the use of 330.29 family support fund allocations by county. The commissioner may 330.30 reallocate unexpended or unencumbered money at any time to those 330.31 counties that have a demonstrated need for additional funding. 330.32 (c) County allocations under this section will be adjusted 330.33 for transfers that occur pursuant to section 256.476. 330.34 Sec. 13. Minnesota Statutes 1996, section 252.32, 330.35 subdivision 3c, is amended to read: 330.36 Subd. 3c. [COUNTY BOARD RESPONSIBILITIES.] County boards 331.1 receiving funds under this section shall: 331.2 (1) determine the needs of families for services in 331.3 accordance with section 256B.092 or 256E.08 and any rules 331.4 adopted under those sections; 331.5 (2) determine the eligibility of all persons proposed for 331.6 program participation; 331.7 (3)recommend for approval allapprove a plan for items and 331.8 services to be reimbursed and inform families of 331.9 thecommissioner'scounty's approval decision; 331.10 (4) issue support grants directly to, or on behalf of, 331.11 eligible families; 331.12 (5) inform recipients of their right to appeal under 331.13 subdivision 3e; 331.14 (6) submit quarterly financial reports under subdivision 3b 331.15 and indicate on the screening documents the annual grant level 331.16 for the recipients; and 331.17 (7) coordinate services with other programs offered by the 331.18 county. 331.19 Sec. 14. Minnesota Statutes 1996, section 252.32, 331.20 subdivision 5, is amended to read: 331.21 Subd. 5. [COMPLIANCE.] If a county board or grantee does 331.22 not comply with this sectionand the rules adopted by the331.23commissioner of human services, the commissioner may recover, 331.24 suspend, or withhold payments. 331.25 Sec. 15. Minnesota Statutes 1996, section 254.04, is 331.26 amended to read: 331.27 254.04 [TREATMENT OF CHEMICALLY DEPENDENT PERSONS.] 331.28 The commissioner of human services is hereby authorized to 331.29 continue the treatment of chemically dependent persons at 331.30 Ah-Gwah-Ching and Moose Lake area programs as well as at the 331.31 regional treatment centers located at Anoka, Brainerd, Fergus 331.32 Falls,Moose Lake,St. Peter, and Willmar as specified in 331.33 section 245.652.During the year ending June 30, 1994, the331.34commissioner shall relocate, in the catchment area served by the331.35Moose Lake regional treatment center, two state-operated331.36off-campus programs designed to serve patients who are relocated332.1from the Moose Lake regional treatment center. One program332.2shall be a 35-bed program for women who are chemically332.3dependent; the other shall be a 25-bed program for men who are332.4chemically dependent. The facility space housing the Liberalis332.5chemical dependency program (building C-35) and the men's332.6chemical dependency program (4th floor main) may not be vacated332.7until suitable off-campus space for the women's chemical332.8dependency program of 35 beds and the men's chemical dependency332.9program of 25 beds is located and clients and staff are332.10relocated.332.11 Sec. 16. Minnesota Statutes 1996, section 254B.02, 332.12 subdivision 3, is amended to read: 332.13 Subd. 3. [RESERVE ACCOUNT.] The commissioner shall 332.14 allocate money from the reserve account to counties that, during 332.15 the current fiscal year, have met or exceeded the base level of 332.16 expenditures for eligible chemical dependency services from 332.17 local money. The commissioner shall establish the base level 332.18 for fiscal year 1988 as the amount of local money used for 332.19 eligible services in calendar year 1986. In later years, the 332.20 base level must be increased in the same proportion as state 332.21 appropriations to implement Laws 1986, chapter 394, sections 8 332.22 to 20, are increased. The base level must be decreased if the 332.23 fund balance from which allocations are made under section 332.24 254B.02, subdivision 1, is decreased in later years. The local 332.25 match rate for the reserve account is the same rate as applied 332.26 to the initial allocation. Reserve account payments must not be 332.27 included when calculating the county adjustments made according 332.28 to subdivision 2. For counties providing medical assistance or 332.29 general assistance medical care through managed care plans on 332.30 January 1, 1996, the base year is fiscal year 1995. For 332.31 counties beginning provision of managed care after January 1, 332.32 1996, the base year is the most recent fiscal year before 332.33 enrollment in managed care begins. For counties providing 332.34 managed care, the base level will be increased or decreased in 332.35 proportion to changes in the fund balance from which allocations 332.36 are made under subdivision 2, but will be additionally increased 333.1 or decreased in proportion to the change in county adjusted 333.2 population made in subdivision 1, paragraphs (b) and (c). 333.3 Sec. 17. Minnesota Statutes 1996, section 254B.03, 333.4 subdivision 1, is amended to read: 333.5 Subdivision 1. [LOCAL AGENCY DUTIES.] (a) Every local 333.6 agency shall provide chemical dependency services to persons 333.7 residing within its jurisdiction who meet criteria established 333.8 by the commissioner for placement in a chemical dependency 333.9 residential or nonresidential treatment service. Chemical 333.10 dependency money must be administered by the local agencies 333.11 according to law and rules adopted by the commissioner under 333.12 sections 14.001 to 14.69. 333.13 (b) In order to contain costs, the county board shall, with 333.14 the approval of the commissioner of human services, select 333.15 eligible vendors of chemical dependency services who can provide 333.16 economical and appropriate treatment. Unless the local agency 333.17 is a social services department directly administered by a 333.18 county or human services board, the local agency shall not be an 333.19 eligible vendor under section 254B.05. The commissioner may 333.20 approve proposals from county boards to provide services in an 333.21 economical manner or to control utilization, with safeguards to 333.22 ensure that necessary services are provided. If a county 333.23 implements a demonstration or experimental medical services 333.24 funding plan, the commissioner shall transfer the money as 333.25 appropriate. If a county selects a vendor located in another 333.26 state, the county shall ensure that the vendor is in compliance 333.27 with the rules governing licensure of programs located in the 333.28 state. 333.29 (c) For the biennium ending June 30, 1999, the rate for 333.30 vendors may not increase more than three percent above the rate 333.31 approved on January 1, 1997. Residential vendors may not 333.32 receive a rate increase in the biennium ending June 30, 1999, if 333.33 the rate charged on January 1, 1997, exceeds the statewide 333.34 median rate for that level of care. Rates for residential 333.35 levels of care for vendors who are enrolled after January 1, 333.36 1997, may not exceed the median rate for each level of care 334.1 provided. 334.2(c)(d) A culturally specific vendor that provides 334.3 assessments under a variance under Minnesota Rules, part 334.4 9530.6610, shall be allowed to provide assessment services to 334.5 persons not covered by the variance. 334.6 Sec. 18. Minnesota Statutes 1996, section 256B.0625, 334.7 subdivision 15, is amended to read: 334.8 Subd. 15. [HEALTH PLAN PREMIUMS AND COPAYMENTS.] Medical 334.9 assistance covers health care prepayment plan premiums, 334.10 insurance premiums, and copayments if determined to be 334.11 cost-effective by the commissioner. Effective for all premium 334.12 payments due on or after January 1, 1998, medical assistance 334.13 does not cover premiums for health insurance policies offered by 334.14 the Minnesota comprehensive health association under chapter 62E. 334.15 For purposes of obtaining Medicare part A and part B, and 334.16 copayments, expenditures may be made even if federal funding is 334.17 not available. 334.18 Sec. 19. [256B.095] [THREE-YEAR QUALITY ASSURANCE PILOT 334.19 PROJECT ESTABLISHED.] 334.20 Effective July 1, 1998, an alternative quality assurance 334.21 licensing system pilot project for programs for persons with 334.22 developmental disabilities is established in Dodge, Fillmore, 334.23 Freeborn, Goodhue, Houston, Mower, Olmsted, Rice, Steele, 334.24 Wabasha, and Winona counties for the purpose of improving the 334.25 quality of services provided to persons with developmental 334.26 disabilities. A county, at its option, may choose to have all 334.27 programs for persons with developmental disabilities located 334.28 within the county licensed under chapter 245A using standards 334.29 determined under the alternative quality assurance licensing 334.30 system pilot project or may continue regulation of these 334.31 programs under the licensing system operated by the 334.32 commissioner. The pilot project expires on June 30, 2001. 334.33 Sec. 20. [256B.0951] [QUALITY ASSURANCE COMMISSION.] 334.34 Subdivision 1. [MEMBERSHIP.] The region 10 quality 334.35 assurance commission is established. The commission consists of 334.36 at least 13 but not more than 20 members as follows: at least 335.1 three but not more than five members representing advocacy 335.2 organizations; at least three but not more than five members 335.3 representing consumers, families, and their legal 335.4 representatives; at least three but not more than five members 335.5 representing service providers; and at least three but not more 335.6 than five members representing counties. Initial membership of 335.7 the commission shall be recruited and approved by the region 10 335.8 stakeholders group. Prior to approving the commission's 335.9 membership, the stakeholders group shall provide to the 335.10 commissioner a list of the membership in the stakeholders group, 335.11 as of February 1, 1997, a brief summary of meetings held by the 335.12 group since July 1, 1996, and copies of any materials prepared 335.13 by the group for public distribution. The first commission 335.14 shall establish membership guidelines for the transition and 335.15 recruitment of membership for the commission's ongoing 335.16 existence. Members of the commission who do not receive a 335.17 salary or wages from an employer for time spent on commission 335.18 duties may receive a per diem payment when performing commission 335.19 duties and functions. All members may be reimbursed for 335.20 expenses related to commission activities. Notwithstanding the 335.21 provisions of section 15.059, subdivision 5, the commission 335.22 expires on June 30, 2001. 335.23 Subd. 2. [AUTHORITY TO HIRE STAFF.] The commission may 335.24 hire staff to perform the duties assigned in this section. 335.25 Subd. 3. [COMMISSION DUTIES.] (a) By October 1, 1997, the 335.26 commission, in cooperation with the commissioners of human 335.27 services and health, shall do the following: (1) approve an 335.28 alternative quality assurance licensing system based on the 335.29 evaluation of outcomes; (2) approve measurable outcomes in the 335.30 areas of health and safety, consumer evaluation, education and 335.31 training, providers, and systems that shall be evaluated during 335.32 the alternative licensing process; and (3) establish variable 335.33 licensure periods not to exceed three years based on outcomes 335.34 achieved. For purposes of this subdivision, "outcome" means the 335.35 behavior, action, or status of a person that can be observed or 335.36 measured and can be reliably and validly determined. 336.1 (b) By January 15, 1998, the commission shall approve, in 336.2 cooperation with the commissioner of human services, a training 336.3 program for members of the quality assurance teams established 336.4 under section 256B.0952. 336.5 Subd. 4. [COMMISSION'S AUTHORITY TO RECOMMEND VARIANCES OF 336.6 LICENSING STANDARDS.] The commission may recommend to the 336.7 commissioners of human services and health variances from the 336.8 standards governing licensure of programs for persons with 336.9 developmental disabilities in order to improve the quality of 336.10 services by implementing an alternative developmental 336.11 disabilities licensing system if the commission determines that 336.12 the alternative licensing system does not affect the health or 336.13 safety of persons being served by the licensed program nor 336.14 compromise the qualifications of staff to provide services. 336.15 Subd. 5. [VARIANCE OF CERTAIN STANDARDS PROHIBITED.] The 336.16 safety standards, rights, or procedural protections under 336.17 sections 245.825; 245.91 to 245.97; 245A.04, subdivisions 3, 3a, 336.18 3b, and 3c; 245A.09, subdivision 2, paragraph (c), clauses (2) 336.19 and (5); 245A.12; 245A.13; 252.41, subdivision 9; 256B.092, 336.20 subdivisions 1b, clause (7), and 10; 626.556; 626.557, and 336.21 procedures for the monitoring of psychotropic medications shall 336.22 not be varied under the alternative licensing system pilot 336.23 project. The commission may make recommendations to the 336.24 commissioners of human services and health or to the legislature 336.25 regarding alternatives to or modifications of the rules 336.26 referenced in this subdivision. 336.27 Subd. 6. [PROGRESS REPORT.] The commission shall submit a 336.28 progress report to the legislature on pilot project development 336.29 by January 15, 1998. The report shall include recommendations 336.30 on any legislative changes necessary to improve cooperation 336.31 between the commission and the commissioners of human services 336.32 and health. 336.33 Sec. 21. [256B.0952] [COUNTY DUTIES; QUALITY ASSURANCE 336.34 TEAMS.] 336.35 Subdivision 1. [NOTIFICATION.] By January 15, 1998, each 336.36 affected county shall notify the commission and the 337.1 commissioners of human services and health as to whether it 337.2 chooses to implement on July 1, 1998, the alternative licensing 337.3 system for the pilot project. A county that does not implement 337.4 the alternative licensing system on July 1, 1998, may give 337.5 notice to the commission and the commissioners by January 15, 337.6 1999, or January 15, 2000, that it will implement the 337.7 alternative licensing system on the following July 1. A county 337.8 that implements the alternative licensing system commits to 337.9 participate until June 30, 2001. 337.10 Subd. 2. [APPOINTMENT OF REVIEW COUNCIL; DUTIES OF 337.11 COUNCIL.] A county or group of counties that chooses to 337.12 participate in the alternative licensing system shall appoint a 337.13 quality assurance review council comprised of advocates; 337.14 consumers, families, and their legal representatives; providers; 337.15 and county staff. The council shall: 337.16 (1) review summary reports from quality assurance team 337.17 reviews and make recommendations to counties regarding program 337.18 licensure; 337.19 (2) make recommendations to the commission regarding the 337.20 alternative licensing system and quality assurance process; and 337.21 (3) resolve complaints between the quality assurance teams, 337.22 counties, providers, and consumers, families, and their legal 337.23 representatives. 337.24 Subd. 3. [NOTICE TO COMMISSIONERS.] The county, based on 337.25 reports from quality assurance managers and recommendations from 337.26 the quality assurance review council regarding the findings of 337.27 quality assurance teams, shall notify the commissioners of human 337.28 services and health regarding whether facilities, programs, or 337.29 services have met the outcome standards for licensure and are 337.30 eligible for payment. 337.31 Subd. 4. [APPOINTMENT OF QUALITY ASSURANCE MANAGER.] (a) A 337.32 county or group of counties that chooses to participate in the 337.33 alternative licensing system shall designate a quality assurance 337.34 manager and shall establish quality assurance teams in 337.35 accordance with subdivision 5. The manager shall recruit, 337.36 train, and assign duties to the quality assurance team members. 338.1 In assigning team members to conduct the quality assurance 338.2 process at a facility, program, or service, the manager shall 338.3 take into account the size of the service provider, the number 338.4 of services to be reviewed, the skills necessary for team 338.5 members to complete the process, and other relevant factors. 338.6 The manager shall ensure that no team member has a financial, 338.7 personal, or family relationship with the facility, program, or 338.8 service being reviewed or with any clients of the facility, 338.9 program, or service. 338.10 (b) Quality assurance teams shall report the findings of 338.11 their quality assurance reviews to the quality assurance manager. 338.12 The quality assurance manager shall provide the report from the 338.13 quality assurance team to the county and commissioners of human 338.14 services and health and a summary of the report to the quality 338.15 assurance review council. 338.16 Subd. 5. [QUALITY ASSURANCE TEAMS.] Quality assurance 338.17 teams shall be comprised of county staff; providers; consumers, 338.18 families, and their legal representatives; members of advocacy 338.19 organizations; and other involved community members. Team 338.20 members must satisfactorily complete the training program 338.21 approved by the commission and must demonstrate 338.22 performance-based competency. Team members are not considered 338.23 to be county employees for purposes of workers' compensation, 338.24 unemployment compensation, or state retirement laws solely on 338.25 the basis of participation on a quality assurance team. The 338.26 county may pay a per diem to team members who do not receive a 338.27 salary or wages from an employer for time spent on alternative 338.28 quality assurance process matters. All team members may be 338.29 reimbursed for expenses related to their participation in the 338.30 alternative process. 338.31 Subd. 6. [LICENSING FUNCTIONS.] Participating counties 338.32 shall perform licensing functions and activities as delegated by 338.33 the commissioner of human services in accordance with section 338.34 245A.16. 338.35 Sec. 22. [256B.0953] [QUALITY ASSURANCE PROCESS.] 338.36 Subdivision 1. [PROCESS COMPONENTS.] (a) The quality 339.1 assurance licensing process consists of an evaluation by a 339.2 quality assurance team of the facility, program, or service 339.3 according to outcome-based measurements. The process must 339.4 include an evaluation of a random sample of program consumers. 339.5 The sample must be representative of each service provided. The 339.6 sample size must be at least five percent of consumers but not 339.7 less than three consumers. 339.8 (b) All consumers must be given the opportunity to be 339.9 included in the quality assurance process in addition to those 339.10 chosen for the random sample. 339.11 Subd. 2. [LICENSURE PERIODS.] (a) In order to be licensed 339.12 under the alternative quality assurance process, a facility, 339.13 program, or service must satisfy the health and safety outcomes 339.14 approved for the pilot project. 339.15 (b) Licensure shall be approved for periods of one to three 339.16 years for a facility, program, or service that satisfies the 339.17 requirements of paragraph (a) and achieves the outcome 339.18 measurements in the categories of consumer evaluation, education 339.19 and training, providers, and systems. 339.20 Subd. 3. [APPEALS PROCESS.] A facility, program, or 339.21 service may contest a licensing decision of the quality 339.22 assurance team as permitted under chapter 245A. 339.23 Sec. 23. [256B.0954] [CERTAIN PERSONS DEFINED AS MANDATED 339.24 REPORTERS.] 339.25 Members of the quality assurance commission established 339.26 under section 256B.0951, members of quality assurance review 339.27 councils established under section 256B.0952, quality assurance 339.28 managers appointed under section 256B.0952, and members of 339.29 quality assurance teams established under section 256B.0952 are 339.30 mandated reporters as that term is defined in sections 626.556, 339.31 subdivision 3, and 626.5572, subdivision 16. 339.32 Sec. 24. [256B.0955] [DUTIES OF THE COMMISSIONER OF HUMAN 339.33 SERVICES.] 339.34 (a) Effective July 1, 1998, the commissioner of human 339.35 services shall delegate authority to perform licensing functions 339.36 and activities, in accordance with section 245A.16, to counties 340.1 participating in the alternative licensing system. The 340.2 commissioner shall not license or reimburse a facility, program, 340.3 or service for persons with developmental disabilities in a 340.4 county that participates in the alternative licensing system if 340.5 the commissioner has received from the appropriate county 340.6 notification that the facility, program, or service has been 340.7 reviewed by a quality assurance team and has failed to qualify 340.8 for licensure. 340.9 (b) The commissioner may conduct random licensing 340.10 inspections based on outcomes adopted under section 256B.0951 at 340.11 facilities, programs, and services governed by the alternative 340.12 licensing system. The role of such random inspections shall be 340.13 to verify that the alternative licensing system protects the 340.14 safety and well-being of consumers and maintains the 340.15 availability of high-quality services for persons with 340.16 developmental disabilities. 340.17 (c) The commissioner shall provide technical assistance and 340.18 support or training to the alternative licensing system pilot 340.19 project. 340.20 (d) The commissioner and the commission shall establish an 340.21 ongoing evaluation process for the alternative licensing system. 340.22 (e) The commissioner shall contract with an independent 340.23 entity to conduct a financial review of the alternative 340.24 licensing system, including an evaluation of possible budgetary 340.25 savings within the department of human services and the 340.26 department of health as a result of implementation of the 340.27 alternative quality assurance licensing system. This review 340.28 must be completed by December 15, 2000. 340.29 (f) The commissioner and the commission shall submit a 340.30 report to the legislature by January 15, 2001, on the results of 340.31 the evaluation process of the alternative licensing system, a 340.32 summary of the results of the independent financial review, and 340.33 a recommendation on whether the pilot project should be extended 340.34 beyond June 30, 2001. 340.35 Sec. 25. Minnesota Statutes 1996, section 256B.49, 340.36 subdivision 1, is amended to read: 341.1 Subdivision 1. [STUDY; WAIVER APPLICATION.] The 341.2 commissioner shall authorize a study to assess the need for home 341.3 and community-based waivers for chronically ill children who 341.4 have been and will continue to be hospitalized without a waiver, 341.5 and for disabled individuals under the age of 65 who are likely 341.6 to reside in an acute care or nursing home facility in the 341.7 absence of a waiver. If a need for these waivers can be 341.8 demonstrated, the commissioner shall apply for federal waivers 341.9 necessary to secure, to the extent allowed by law, federal 341.10 participation under United States Code, title 42, sections 341.11 1396-1396p, as amended through December 31, 1982, for the 341.12 provision of home and community-based services to chronically 341.13 ill children who, in the absence of such a waiver, would remain 341.14 in an acute care setting, and to disabled individuals under the 341.15 age of 65 who, in the absence of a waiver, would reside in an 341.16 acute care or nursing home setting. If the need is 341.17 demonstrated, the commissioner shall request a waiver under 341.18 United States Code, title 42, sections 1396-1396p, to allow 341.19 medicaid eligibility for blind or disabled children with 341.20 ineligible parents where income deemed from the parents would 341.21 cause the applicant to be ineligible for supplemental security 341.22 income if the family shared a household and to furnish necessary 341.23 services in the home or community to disabled individuals under 341.24 the age of 65 who would be eligible for medicaid if 341.25 institutionalized in an acute care or nursing home setting. 341.26 These waivers are requested to furnish necessary services in the 341.27 home and community setting to children or disabled adults under 341.28 age 65 who are medicaid eligible when institutionalized in an 341.29 acute care or nursing home setting. The commissioner shall 341.30 assure that the cost of home and community-based care will not 341.31 be more than the cost of care if the eligible child or disabled 341.32 adult under age 65 were to remain institutionalized. The 341.33 average monthly limit for the cost of home and community-based 341.34 services to a community alternative care waiver client, 341.35 determined on a 12-month basis, shall not exceed the statewide 341.36 average medical assistance adjusted base year operating cost for 342.1 nursing and accommodation services under sections 256.9685 to 342.2 256.969 for the diagnostic category to which the waiver client 342.3 would be assigned except the admission and outlier rates shall 342.4 be converted to an overall per diem. The average monthly limit 342.5 for the cost of services to a traumatic brain injury 342.6 neurobehavioral hospital waiver client, determined on a 12-month 342.7 basis, shall not exceed the statewide average medical assistance 342.8 adjusted base-year operating cost for nursing and accommodation 342.9 services of neurobehavioral rehabilitation programs in Medicare 342.10 designated long-term hospitals under sections 256.9685 to 342.11 256.969. The following costs must be included in determining 342.12 the total average monthly costs for a waiver client: 342.13 (1) cost of all waivered services; and 342.14 (2) cost of skilled nursing, private duty nursing, home 342.15 health aide, and personal care services reimbursable by medical 342.16 assistance. 342.17 The commissioner of human services shall seek federal 342.18 waivers as necessary to implement the average monthly limit. 342.19 The commissioner shall seek to amend the federal waivers 342.20 obtained under this section to apply criteria to protect against 342.21 spousal impoverishment as authorized under United States Code, 342.22 title 42, section 1396r-5, and as implemented in sections 342.23 256B.0575, 256B.058, and 256B.059, except that the amendment 342.24 shall seek to add to the personal needs allowance permitted in 342.25 section 256B.0575, an amount equivalent to the group residential 342.26 housing rate as set by section 256I.03, subdivision 5. 342.27 Sec. 26. Minnesota Statutes 1996, section 256D.03, 342.28 subdivision 3b, is amended to read: 342.29 Subd. 3b. [COOPERATION.] General assistance or general 342.30 assistance medical care applicants and recipients must cooperate 342.31 with the state and local agency to identify potentially liable 342.32 third-party payors and assist the state in obtaining third-party 342.33 payments. Cooperation includes identifying any third party who 342.34 may be liable for care and services provided under this chapter 342.35 to the applicant, recipient, or any other family member for whom 342.36 application is made and providing relevant information to assist 343.1 the state in pursuing a potentially liable third party. General 343.2 assistance medical care applicants and recipients must cooperate 343.3 by providing information about any group health plan in which 343.4 they may be eligible to enroll. They must cooperate with the 343.5 state and local agency in determining if the plan is 343.6 cost-effective. If the plan is determined cost-effective and 343.7 the premium will be paid by the state or local agency or is 343.8 available at no cost to the person, they must enroll or remain 343.9 enrolled in the group health plan. Effective for all premium 343.10 payments due on or after January 1, 1998, general assistance 343.11 medical care does not pay for premiums for health insurance 343.12 offered by the Minnesota comprehensive health association under 343.13 chapter 62E. Cost-effective insurance premiums approved for 343.14 payment by the state agency and paid by the local agency are 343.15 eligible for reimbursement according to subdivision 6. 343.16 Sec. 27. Laws 1995, chapter 207, article 8, section 41, 343.17 subdivision 2, is amended to read: 343.18 Subd. 2. [PROGRAM DESIGN AND IMPLEMENTATION.] (a) The 343.19 pilot projects shall be established to design, plan, and improve 343.20 the mental health service delivery system for adults with 343.21 serious and persistent mental illness that would: 343.22 (1) provide an expanded array of services from which 343.23 clients can choose services appropriate to their needs; 343.24 (2) be based on purchasing strategies that improve access 343.25 and coordinate services without cost shifting; 343.26 (3) incorporate existing state facilities and resources 343.27 into the community mental health infrastructure through creative 343.28 partnerships with local vendors; and 343.29 (4) utilize existing categorical funding streams and 343.30 reimbursement sources in combined and creative ways, except 343.31 appropriations to regional treatment centers and all funds that 343.32 are attributable to the operation of state-operated services are 343.33 excluded unless appropriated specifically by the legislature for 343.34 a purpose consistent with this section. 343.35 (b) All projects funded by January 1, 1997, must complete 343.36theirthe planning phase and be operational by June 30, 1997; 344.1 all projects funded by January 1, 1998, must be operational by 344.2 June 30, 1998. 344.3 Sec. 28. [MCHA TERMINATION NOTICE.] 344.4 The Minnesota comprehensive health association, in 344.5 consultation with the commissioner of human services, shall 344.6 provide written notice to all persons whose coverage under the 344.7 comprehensive health insurance plan terminates due to the change 344.8 in policy described in sections 18 and 27 and shall assist these 344.9 individuals in securing health coverage in the private market. 344.10 The notice must include the following information: 344.11 (1) the reason for termination; 344.12 (2) a description of the eligibility requirements for the 344.13 comprehensive health insurance plan; 344.14 (3) a description of medical assistance and general 344.15 assistance medical care eligibility categories; 344.16 (4) a description of the participation requirements to the 344.17 prepaid medical assistance program, prepaid general assistance 344.18 medical care, and exemptions from participation due to 344.19 disability as determined by the social security administration; 344.20 and 344.21 (5) a telephone number for the department of human services 344.22 for specific questions regarding the medical assistance and 344.23 general assistance medical care program. 344.24 Notice must be given at least six months before coverage is 344.25 terminated. 344.26 The commissioner of human services shall release to the 344.27 association any data necessary to provide the notice required in 344.28 this section. 344.29 Sec. 29. [NAMES REQUIRED ON GRAVES.] 344.30 Unless the individual's family indicates otherwise to the 344.31 appropriate authority, the commissioner of human services with 344.32 assistance of the communities in which regional treatment 344.33 centers are located and in consultation with the state council 344.34 on disability shall replace numbers with the names of 344.35 individuals whose graves are located at regional treatment 344.36 centers operated by the commissioner or formerly operated by the 345.1 commissioner. The commissioner and the state council on 345.2 disability shall develop a plan to accomplish this 345.3 systematically over a five-year period. The individual names 345.4 may be placed on a central marker or memorial for a designated 345.5 cemetery. 345.6 Sec. 30. [WAIVER AMENDMENT.] 345.7 By July 15, 1997, the commissioner of human services shall 345.8 submit proposed amendments to the Health Care Financing 345.9 Administration for changes in the home and community-based 345.10 waiver for persons with mental retardation or a related 345.11 condition that maximize the number of persons served within the 345.12 limits of appropriations and divert persons from institutional 345.13 placement. The commissioner shall monitor county utilization of 345.14 allocated resources and, as appropriate, reassign resources not 345.15 utilized. Priority consideration for the reassignment of 345.16 resources shall be given to counties who enter into written 345.17 agreements with other counties to jointly plan, request 345.18 resources, and develop services for persons with mental 345.19 retardation or a related condition who are screened and waiting 345.20 for waivered services. In addition to the priorities listed in 345.21 Minnesota Rules, part 9525.1880, the commissioner shall also 345.22 give priority consideration to persons whose living situations 345.23 are unstable due to the age or incapacity of the primary 345.24 caregiver. The commissioner shall report to the chairs of the 345.25 senate health and family security budget division and the house 345.26 health and human services finance division by March 1, 1998, on 345.27 the results of the waiver amendment, the authorization and 345.28 utilization of waivered services for persons with mental 345.29 retardation or a related condition, including crisis respite 345.30 services, plans to increase the number of counties working 345.31 together, additional persons served by the reassignment of 345.32 resources, and options which would allow an increased number of 345.33 persons to be served within the existing appropriation. 345.34 Sec. 31. [REQUEST FOR WAIVER.] 345.35 By January 1, 1998, the commissioner of human services or 345.36 health shall request a waiver from the federal Department of 346.1 Health and Human Services to permit the use of the alternative 346.2 quality assurance system to license and certify intermediate 346.3 care facilities for persons with mental retardation. 346.4 Sec. 32. [REPEALER.] 346.5 Minnesota Statutes 1996, sections 252.32, subdivision 4; 346.6 and 256B.501, subdivision 5c, are repealed. 346.7 Sec. 33. [EFFECTIVE DATE.] 346.8 Sections 2 to 5 and 15 are effective the day following 346.9 final enactment. 346.10 ARTICLE 8 346.11 DEMONSTRATION PROJECT FOR PERSONS WITH DISABILITIES 346.12 Section 1. [256B.77] [COORDINATED SERVICE DELIVERY SYSTEM 346.13 FOR PEOPLE WITH DISABILITIES.] 346.14 Subdivision 1. [DEMONSTRATION PROJECT FOR PEOPLE WITH 346.15 DISABILITIES.] (a) The commissioner of human services, in 346.16 cooperation with county authorities, shall develop and implement 346.17 a demonstration project to create a coordinated service delivery 346.18 system in which the full medical assistance benefit set for 346.19 disabled persons eligible for medical assistance is provided and 346.20 funded on a capitated basis. The demonstration period shall be 346.21 a minimum of three years. 346.22 (b) Each demonstration site shall, under county authority, 346.23 establish a local group to assist the commissioner in planning, 346.24 designing, implementing, and evaluating the coordinated service 346.25 delivery system in their area. This local group shall include 346.26 county agencies, providers, consumers, family members, 346.27 advocates, tribal governments, a local representative of labor, 346.28 and advocacy organizations, and may include health plan 346.29 companies. Consumers, families, and consumer representatives 346.30 must be involved in the planning, implementation, and evaluation 346.31 processes for the demonstration project. 346.32 Subd. 2. [DEFINITIONS.] For the purposes of this section, 346.33 the following terms have the meanings given: 346.34 (a) "Acute care" means hospital, physician, and other 346.35 health and dental services covered in the medical assistance 346.36 benefit set that are not specified in the intergovernmental 347.1 contract or service delivery contract as continuing care 347.2 services. 347.3 (b) "Additional services" means services developed and 347.4 provided through the county administrative entity or service 347.5 delivery organization, which are in addition to the medical 347.6 assistance benefit set. 347.7 (c) "Advocate" means an individual who: 347.8 (1) has been authorized by the enrollee or the enrollee's 347.9 legal representative to help the enrollee understand information 347.10 presented and to speak on the enrollee's behalf, based on 347.11 directions and decisions by the enrollee or the enrollee's legal 347.12 representative; and 347.13 (2) represents only the enrollee and the enrollee's legal 347.14 representative. 347.15 (d) "Advocacy organization" means an organization whose 347.16 primary purpose is to advocate for the needs of persons with 347.17 disabilities. 347.18 (e) "Alternative services" means services developed and 347.19 provided through the county administrative entity or service 347.20 delivery organization that are not part of the medical 347.21 assistance benefit set. 347.22 (f) "Commissioner" means the commissioner of human services. 347.23 (g) "Continuing care" means any services, including 347.24 long-term support services, covered in the medical assistance 347.25 benefit set that are not specified in the intergovernmental 347.26 contract or service delivery contract as acute care. 347.27 (h) "County administrative entity" means the county 347.28 administrative structure defined and designated by the county 347.29 authority to implement the demonstration project under the 347.30 direction of the county authority. 347.31 (i) "County authority" means the board of county 347.32 commissioners or a single entity representing multiple boards of 347.33 county commissioners. 347.34 (j) "Demonstration period" means the period of time during 347.35 which county administrative entities or service delivery 347.36 organizations will provide services to enrollees. 348.1 (k) "Demonstration site" means the geographic area in which 348.2 eligible individuals may be included in the demonstration 348.3 project. 348.4 (l) "Department" means the department of human services. 348.5 (m) "Emergency" means a condition that if not immediately 348.6 treated could cause a person serious physical or mental 348.7 disability, continuation of severe pain, or death. Labor and 348.8 delivery is an emergency if it meets this definition. 348.9 (n) "Enrollee" means an eligible individual who is enrolled 348.10 in the demonstration project. 348.11 (o) "Informed choice" means a voluntary decision made by 348.12 the enrollee or the enrollee's legal representative, after 348.13 becoming familiar with the alternatives, and having been 348.14 provided sufficient relevant written and oral information at an 348.15 appropriate comprehension level and in a manner consistent with 348.16 the enrollee's or the enrollee's legal representative's primary 348.17 mode of communication. 348.18 (p) "Informed consent" means the written agreement, or an 348.19 agreement as documented in the record, by a competent enrollee, 348.20 or an enrollee's legal representative, who: 348.21 (1) has the capacity to make reasoned decisions based on 348.22 relevant information; 348.23 (2) is making decisions voluntarily and without coercion; 348.24 and 348.25 (3) has knowledge to make informed choice. 348.26 (q) "Intergovernmental contract" means the agreement 348.27 between the commissioner and the county authority. 348.28 (r) "Legal representative" means an individual who is 348.29 legally authorized to provide informed consent or make informed 348.30 choices on a person's behalf. A legal representative may be one 348.31 of the following individuals: 348.32 (1) the parent of a minor who has not been emancipated; 348.33 (2) a court-appointed guardian or conservator of a person 348.34 who is 18 years of age or older, in areas where legally 348.35 authorized to make decisions; 348.36 (3) a guardian ad litem or special guardian or conservator, 349.1 in areas where legally authorized to make decisions; 349.2 (4) legal counsel if so specified by the person; or 349.3 (5) any other legally authorized individual. 349.4 The county authority is prohibited from acting as legal 349.5 representative for any enrollee, as long as the provisions of 349.6 subdivision 15 are funded. 349.7 (s) "Life domain areas" include, but are not limited to: 349.8 home, family, education, employment, social environment, 349.9 psychological and emotional health, self-care, independence, 349.10 physical health, need for legal representation and legal needs, 349.11 financial needs, safety, and cultural identification and 349.12 spiritual needs. 349.13 (t) "Medical assistance benefit set" means the services 349.14 covered under this chapter and accompanying rules which are 349.15 provided according to the definition of medical necessity in 349.16 Minnesota Rules, part 9505.0175, subpart 25. 349.17 (u) "Outcome" means the targeted behavior, action, or 349.18 status of the enrollee that can be observed and or measured. 349.19 (v) "Personal support plan" means a document agreed to and 349.20 signed by the enrollee and the enrollee's legal representative, 349.21 if any, which describes: 349.22 (1) the assessed needs and strengths of the enrollee; 349.23 (2) the outcomes chosen by the enrollee or their legal 349.24 representative; 349.25 (3) the amount, type, setting, start date, duration, and 349.26 frequency of services and supports authorized by the county 349.27 administrative entity or service delivery organization to 349.28 achieve the chosen outcomes; 349.29 (4) a description of needed services and supports that are 349.30 not the responsibility of the county administrative entity or 349.31 service delivery organization and plans for addressing those 349.32 needs; 349.33 (5) plans for referring to and coordinating between all 349.34 agencies or individuals providing needed services and supports; 349.35 (6) the use of regulated treatment; and 349.36 (7) the transition of a child to the adult service system. 350.1 (w) "Regulated treatment" means any behaviorally altering 350.2 medication of any classification or any aversive or deprivation 350.3 procedure as defined in rules or statutes applicable to eligible 350.4 individuals. 350.5 (x) "Service delivery contract" means the agreement between 350.6 the commissioner or the county authority and the service 350.7 delivery organization in those areas in which the county 350.8 authority has provided written approval. 350.9 (y) "Service delivery organization" means an entity that is 350.10 licensed as a health maintenance organization under chapter 62D 350.11 or a community integrated service network under chapter 62N and 350.12 is under contract with the commissioner or a county authority to 350.13 participate in the demonstration project. If authorized in 350.14 contract by the commissioner or the county authority, a service 350.15 delivery organization participating in the demonstration project 350.16 shall have the duties, responsibilities, and obligations defined 350.17 under subdivisions 8, 9, 18, and 19. 350.18 (z) "Urgent situation" means circumstances in which care is 350.19 needed as soon as possible, usually with 24 hours, to protect 350.20 the health of an enrollee. 350.21 Subd. 3. [ASSURANCES TO THE COMMISSIONER OF HEALTH.] A 350.22 county authority that elects to participate in a demonstration 350.23 project for people with disabilities under this section is not 350.24 required to obtain a certificate of authority under chapter 62D 350.25 or 62N. A county authority that elects to participate in a 350.26 demonstration project for people with disabilities under this 350.27 section must assure the commissioner of health that the 350.28 requirements of chapters 62D and 62N are met. All enforcement 350.29 and rulemaking powers available under chapters 62D and 62N are 350.30 granted to the commissioner of health with respect to the county 350.31 authorities that contract with the commissioner to purchase 350.32 services in a demonstration project for people with disabilities 350.33 under this section. 350.34 Subd. 4. [FEDERAL WAIVERS.] The commissioner, in 350.35 consultation with county authorities, shall request any 350.36 authority from the United States Department of Health and Human 351.1 Services that is necessary to implement the demonstration 351.2 project under the medical assistance program; and authority to 351.3 combine Medicaid and Medicare funding for service delivery to 351.4 eligible individuals who are also eligible for Medicare, only if 351.5 this authority does not preclude county authority participation 351.6 under the waiver. Implementation of these programs may begin 351.7 without authority to include medicare funding. The commissioner 351.8 may authorize county authorities to begin enrollment of eligible 351.9 individuals upon federal approval but no earlier than July 1, 351.10 1998. 351.11 Subd. 5. [DEMONSTRATION SITES.] The commissioner shall 351.12 designate up to five demonstration sites with the approval of 351.13 the county authority. Demonstration sites may include one 351.14 county or a multicounty group. At least one of five sites shall 351.15 implement a model specifically addressing the needs of eligible 351.16 individuals with physical disabilities. By February 1, 1998, 351.17 the commissioner and the county authorities shall submit to the 351.18 chairs of the senate committee on health and family security and 351.19 the house committee on health and human services a phased 351.20 enrollment plan to ensure an orderly transition which protects 351.21 the health and safety of enrollees and ensures continuity of 351.22 services. 351.23 Subd. 6. [RESPONSIBILITIES OF THE COUNTY AUTHORITY.] (a) 351.24 The commissioner may execute an intergovernmental contract with 351.25 any county authority that demonstrates the ability to arrange 351.26 for and coordinate services for enrollees covered under this 351.27 section according to the terms and conditions specified by the 351.28 commissioner. With the written consent of the county authority, 351.29 the commissioner may issue a request for proposals for service 351.30 delivery organizations to provide portions of the medical 351.31 assistance benefit set not contracted for by the county 351.32 authority. County authorities that do not contract for the full 351.33 medical assistance benefit set must ensure coordination with the 351.34 entities responsible for the remainder of the covered services. 351.35 (b) No less than 90 days before the intergovernmental 351.36 contract is executed, the county authority shall submit to the 352.1 commissioner an initial proposal on how it will address the 352.2 areas listed in this subdivision and subdivisions 1, 7, 8, 9, 352.3 12, 18, and 19. The county authority shall submit to the 352.4 commissioner annual reports describing its progress in 352.5 addressing these areas. 352.6 (c) Each county authority shall develop policies to address 352.7 conflicts of interest, including public guardianship and 352.8 representative payee issues. 352.9 (d) Each county authority shall annually evaluate the 352.10 effectiveness of the service coordination provided according to 352.11 subdivision 12 and shall take remedial or corrective action if 352.12 the service coordination does not fulfill the requirements of 352.13 that subdivision. 352.14 Subd. 7. [ELIGIBILITY AND ENROLLMENT.] The commissioner, 352.15 in consultation with the county authority, shall develop a 352.16 process for enrolling eligible individuals in the demonstration 352.17 project. Enrollment into county administrative entities and 352.18 service delivery organizations shall be conducted according to 352.19 the terms of the federal waiver. Enrollment of eligible 352.20 individuals under the demonstration project may be phased in 352.21 with approval of the commissioner. The commissioner shall 352.22 ensure that eligibility for medical assistance and enrollment 352.23 for the person are determined by individuals outside of the 352.24 county administrative entity. 352.25 Subd. 7a. [ELIGIBLE INDIVIDUALS.] (a) Persons are eligible 352.26 for the demonstration project as provided in this subdivision. 352.27 (b) "Eligible individuals" means those persons living in 352.28 the demonstration site who are eligible for medical assistance 352.29 and are disabled based on a disability determination under 352.30 section 256B.055, subdivisions 7 and 12, or who are eligible for 352.31 medical assistance and have been diagnosed as having: 352.32 (1) serious and persistent mental illness as defined in 352.33 section 245.462, subdivision 20; 352.34 (2) severe emotional disturbance as defined in section 352.35 245.487, subdivision 6; or 352.36 (3) mental retardation or a related condition as defined in 353.1 section 252.27, subdivision 1a. 353.2 Other individuals may be included at the option of the county 353.3 authority based on agreement with the commissioner. 353.4 (c) Eligible individuals residing on a federally recognized 353.5 Indian reservation may be excluded from participation in the 353.6 demonstration project at the discretion of the tribal government 353.7 based on agreement with the commissioner, in consultation with 353.8 the county authority. 353.9 (d) Eligible individuals include individuals in excluded 353.10 time status, as defined in chapter 256G. Enrollees in excluded 353.11 time at the time of enrollment shall remain in excluded time 353.12 status as long as they live in the demonstration site and shall 353.13 be eligible for 90 days after placement outside the 353.14 demonstration site if they move to excluded time status in a 353.15 county within Minnesota other than their county of financial 353.16 responsibility. 353.17 (e) A person who is a sexual psychopathic personality as 353.18 defined in section 253B.02, subdivision 18a, or a sexually 353.19 dangerous person as defined in section 253B.02, subdivision 18b, 353.20 is excluded from enrollment in the demonstration project. 353.21 Subd. 8. [RESPONSIBILITIES OF THE COUNTY ADMINISTRATIVE 353.22 ENTITY.] (a) The county administrative entity shall meet the 353.23 requirements of this subdivision, unless the county authority or 353.24 the commissioner, with written approval of the county authority, 353.25 enters into a service delivery contract with a service delivery 353.26 organization for any or all of the requirements contained in 353.27 this subdivision. 353.28 (b) The county administrative entity shall enroll eligible 353.29 individuals regardless of health or disability status. 353.30 (c) The county administrative entity shall provide all 353.31 enrollees timely access to the medical assistance benefit set. 353.32 Alternative services and additional services are available to 353.33 enrollees at the option of the county administrative entity and 353.34 may be provided if specified in the personal support plan. 353.35 County authorities are not required to seek prior authorization 353.36 from the department as required by the laws and rules governing 354.1 medical assistance. 354.2 (d) The county administrative entity shall cover necessary 354.3 services as a result of an emergency without prior 354.4 authorization, even if the services were rendered outside of the 354.5 provider network. 354.6 (e) The county administrative entity shall authorize 354.7 necessary and appropriate services when needed and requested by 354.8 the enrollee or the enrollee's legal representative in response 354.9 to an urgent situation. Enrollees shall have 24-hour access to 354.10 urgent care services coordinated by experienced disability 354.11 providers who have information about enrollees' needs and 354.12 conditions. 354.13 (f) The county administrative entity shall accept the 354.14 capitation payment from the commissioner in return for the 354.15 provision of services for enrollees. 354.16 (g) The county administrative entity shall maintain 354.17 internal grievance and complaint procedures, including an 354.18 expedited informal complaint process in which the county 354.19 administrative entity must respond to verbal complaints within 354.20 ten calendar days, and a formal grievance process, in which the 354.21 county administrative entity must respond to written complaints 354.22 within 30 calendar days. 354.23 (h) The county administrative entity shall provide a 354.24 certificate of coverage, upon enrollment, to each enrollee and 354.25 the enrollee's legal representative, if any, which describes the 354.26 benefits covered by the county administrative entity, any 354.27 limitations on those benefits, and information about providers 354.28 and the service delivery network. This information must also be 354.29 made available to prospective enrollees. This certificate must 354.30 be approved by the commissioner. 354.31 (i) The county administrative entity shall present evidence 354.32 of an expedited process to approve exceptions to benefits, 354.33 provider network restrictions, and other plan limitations under 354.34 appropriate circumstances. 354.35 (j) The county administrative entity shall provide 354.36 enrollees or their legal representatives with written notice of 355.1 their appeal rights under subdivision 16, and of ombudsman and 355.2 advocacy programs under subdivisions 13 and 14, at the following 355.3 times: upon enrollment, upon submission of a written complaint, 355.4 when a service is reduced, denied, or terminated, or when 355.5 renewal of authorization for ongoing service is refused. 355.6 (k) The county administrative entity shall determine 355.7 immediate needs, including services, support, and assessments, 355.8 within 30 calendar days of enrollment, or within a shorter time 355.9 frame if specified in the intergovernmental contract. 355.10 (l) The county administrative entity shall assess the need 355.11 for services of new enrollees within 60 calendar days of 355.12 enrollment, or within a shorter time frame if specified in the 355.13 intergovernmental contract, and periodically reassess the need 355.14 for services for all enrollees. 355.15 (m) The county administrative entity shall ensure the 355.16 development of a personal support plan for each person within 60 355.17 calendar days of enrollment, or within a shorter time frame if 355.18 specified in the intergovernmental contract, unless otherwise 355.19 agreed to by the enrollee and the enrollee's legal 355.20 representative, if any. Until a personal support plan is 355.21 developed and agreed to by the enrollee, enrollees must have 355.22 access to the same amount, type, setting, duration, and 355.23 frequency of covered services that they had at the time of 355.24 enrollment unless other covered services are needed. For an 355.25 enrollee who is not receiving covered services at the time of 355.26 enrollment and for enrollees whose personal support plan is 355.27 being revised, access to the medical assistance benefit set must 355.28 be assured until a personal support plan is developed or 355.29 revised. The personal support plan must be based on choices, 355.30 preferences, and assessed needs and strengths of the enrollee. 355.31 The service coordinator shall develop the personal support plan, 355.32 in consultation with the enrollee or the enrollee's legal 355.33 representative and other individuals requested by the enrollee. 355.34 The personal support plan must be updated as needed or as 355.35 requested by the enrollee. Enrollees may choose not to have a 355.36 personal support plan. 356.1 (n) The county administrative entity shall ensure timely 356.2 authorization, arrangement, and continuity of needed and covered 356.3 supports and services. 356.4 (o) The county administrative entity shall offer service 356.5 coordination that fulfills the responsibilities under 356.6 subdivision 12 and is appropriate to the enrollee's needs, 356.7 choices, and preferences, including a choice of service 356.8 coordinator. 356.9 (p) The county administrative entity shall contract with 356.10 schools and other agencies as appropriate to provide otherwise 356.11 covered medically necessary medical assistance services as 356.12 described in an enrollee's individual family support plan, as 356.13 described in section 120.1701, or individual education plan, as 356.14 described in chapter 120. 356.15 (q) The county administrative entity shall develop and 356.16 implement strategies, based on consultation with affected 356.17 groups, to respect diversity and ensure culturally competent 356.18 service delivery in a manner that promotes the physical, social, 356.19 psychological, and spiritual well-being of enrollees and 356.20 preserves the dignity of individuals, families, and their 356.21 communities. 356.22 (r) When an enrollee changes county authorities, county 356.23 administrative entities shall ensure coordination with the 356.24 entity that is assuming responsibility for administering the 356.25 medical assistance benefit set to ensure continuity of supports 356.26 and services for the enrollee. 356.27 (s) The county administrative entity shall comply with 356.28 additional requirements as specified in the intergovernmental 356.29 contract. 356.30 (t) To the extent that alternatives are approved under 356.31 subdivision 17, county administrative entities must provide for 356.32 the health and safety of enrollees and protect the rights to 356.33 privacy and to provide informed consent. 356.34 Subd. 9. [CONSUMER CHOICE AND SAFEGUARDS.] (a) The 356.35 commissioner may require all eligible individuals to obtain 356.36 services covered under this chapter through county authorities. 357.1 Enrollees shall be given choices among a range of available 357.2 providers with expertise in serving persons of their age and 357.3 with their category of disability. If the county authority is 357.4 also a provider of services covered under the demonstration 357.5 project, other than service coordination, the enrollee shall be 357.6 given the choice of at least one other provider of that 357.7 service. The commissioner shall ensure that all enrollees have 357.8 continued access to medically necessary covered services. 357.9 (b) The commissioner must ensure that a set of enrollee 357.10 safeguards in the categories of access, choice, comprehensive 357.11 benefits, access to specialist care, disclosure of financial 357.12 incentives to providers, prohibition of exclusive provider 357.13 contracting and gag clauses, legal representation, guardianship, 357.14 representative payee, quality, rights and appeals, privacy, data 357.15 collection, and confidentiality are in place prior to enrollment 357.16 of eligible individuals. 357.17 (c) If multiple service delivery organizations are offered 357.18 for acute or continuing care within a demonstration site, 357.19 enrollees shall be given a choice of these organizations. A 357.20 choice is required if the county authority operates its own 357.21 health maintenance organization, community integrated service 357.22 network, or similar plan. Enrollees shall be given 357.23 opportunities to change enrollment in these organizations within 357.24 12 months following initial enrollment into the demonstration 357.25 project and shall also be offered an annual open enrollment 357.26 period, during which they are permitted to change their service 357.27 delivery organization. 357.28 (d) Enrollees shall have the option to change their primary 357.29 care provider once per month. 357.30 (e) The commissioner may waive the choice of provider 357.31 requirements in paragraph (a) or the choice of service delivery 357.32 organization requirements in paragraph (c) if the county 357.33 authority can demonstrate that, despite reasonable efforts, no 357.34 other provider of the service or service delivery organization 357.35 can be made available within the cost and quality requirements 357.36 of the demonstration project. 358.1 Subd. 10. [CAPITATION PAYMENT.] The commissioner shall pay 358.2 a capitation payment to the county authority and, when 358.3 applicable under subdivision 6, paragraph (a), to the service 358.4 delivery organization for each medical assistance eligible 358.5 enrollee. The commissioner shall develop capitation payment 358.6 rates for the initial contract period for each demonstration 358.7 site in consultation with an independent actuary, to ensure that 358.8 the cost of services under the demonstration project does not 358.9 exceed the estimated cost for medical assistance services for 358.10 the covered population under the fee-for-service system for the 358.11 demonstration period. For each year of the demonstration 358.12 project, the capitation payment rate shall be based on 96 358.13 percent of the projected per person costs that would otherwise 358.14 have been paid under medical assistance fee-for-service during 358.15 each of those years. Rates shall be adjusted within the limits 358.16 of the available risk adjustment technology, as mandated by 358.17 section 62Q.03. In addition, the commissioner shall implement 358.18 appropriate risk and savings sharing provisions with county 358.19 administrative entities and, when applicable under subdivision 358.20 6, paragraph (a), service delivery organizations within the 358.21 projected budget limits. Any savings beyond those allowed for 358.22 the county authority, county administrative entity, or service 358.23 delivery organization shall be first used to meet the unmet 358.24 needs of eligible individuals. Payments to providers 358.25 participating in the project are exempt from the requirements of 358.26 sections 256.966 and 256B.03, subdivision 2. 358.27 Subd. 11. [INTEGRATION OF FUNDING SOURCES.] The county 358.28 authority may integrate other local, state, and federal funding 358.29 sources with medical assistance funding. The commissioner's 358.30 approval is required for integration of state and federal funds 358.31 but not for local funds. During the demonstration project 358.32 period, county authorities must maintain the level of local 358.33 funds expended during the previous calendar year for populations 358.34 covered in the demonstration project. Excluding the state share 358.35 of Medicaid payments, state appropriations for state-operated 358.36 services shall not be integrated unless specifically approved by 359.1 the legislature. The commissioner may approve integration of 359.2 other state and federal funding if the intergovernmental 359.3 contract includes assurances that the people who would have been 359.4 served by these funds will receive comparable or better 359.5 services. The commissioner may withdraw approval for 359.6 integration of state and federal funds if the county authority 359.7 does not comply with these assurances. If the county authority 359.8 chooses to integrate funding, it must comply with the reporting 359.9 requirements of the commissioner, as specified in the 359.10 intergovernmental contract, to account for federal and state 359.11 Medicaid expenditures and expenditures of local funds. The 359.12 commissioner, upon the request and concurrence of a county 359.13 authority, may transfer state grant funds that would otherwise 359.14 be made available to the county authority to provide continuing 359.15 care for enrollees to the medical assistance account and, within 359.16 the limits of federal authority and available federal funding, 359.17 the commissioner shall adjust the capitation based on the amount 359.18 of this transfer. 359.19 Subd. 12. [SERVICE COORDINATION.] (a) For purposes of this 359.20 section, "service coordinator" means an individual selected by 359.21 the enrollee or the enrollee's legal representative and 359.22 authorized by the county administrative entity or service 359.23 delivery organization to work in partnership with the enrollee 359.24 to develop, coordinate, and in some instances, provide supports 359.25 and services identified in the personal support plan. Service 359.26 coordinators may only provide services and supports if the 359.27 enrollee is informed of potential conflicts of interest, is 359.28 given alternatives, and gives informed consent. Eligible 359.29 service coordinators are individuals age 18 or older who meet 359.30 the qualifications as described in paragraph (b). Enrollees, 359.31 their legal representatives, or their advocates are eligible to 359.32 be service coordinators if they have the capabilities to perform 359.33 the activities and functions outlined in paragraph (b). 359.34 Providers licensed under chapter 245A to provide residential 359.35 services, or providers who are providing residential services 359.36 covered under the group residential housing program may not act 360.1 as service coordinator for enrollees for whom they provide 360.2 residential services. This does not apply to providers of 360.3 short-term detoxification services. Each county administrative 360.4 entity or service delivery organization may develop further 360.5 criteria for eligible vendors of service coordination during the 360.6 demonstration period and shall determine whom it contracts with 360.7 or employs to provide service coordination. County 360.8 administrative entities and service delivery organizations may 360.9 pay enrollees or their representatives for service coordination 360.10 activities. 360.11 (b) The service coordinator shall act as a facilitator, 360.12 working in partnership with the enrollee to ensure that their 360.13 needs are identified and addressed. The level of involvement of 360.14 the service coordinator shall depend on the needs and desires of 360.15 the enrollee. The service coordinator shall have the knowledge, 360.16 skills, and abilities to, and is responsible for: 360.17 (1) arranging for an initial assessment, and periodic 360.18 reassessment as necessary, of supports and services based on the 360.19 enrollee's strengths, needs, choices, and preferences in life 360.20 domain areas; 360.21 (2) developing and updating the personal support plan based 360.22 on relevant ongoing assessment; 360.23 (3) arranging for and coordinating the provisions of 360.24 supports and services, including knowlegeable and skills 360.25 specialty services and prevention and early intervention 360.26 services, within the limitations negotiated with the county 360.27 administrative entity or service delivery organization; 360.28 (4) assisting the enrollee and the enrollee's legal 360.29 representative, if any, to maximize informed choice of and 360.30 control over services and supports and to exercise the 360.31 enrollee's rights and advocate on behalf of the enrollee; 360.32 (5) monitoring the progress toward achieving the enrollee's 360.33 outcomes in order to evaluate and adjust the timeliness and 360.34 adequacy of the implementation of the personal support plan; 360.35 (6) facilitating meetings and effectively collaborating 360.36 with a variety of agencies and persons, including attending 361.1 individual family service plan and individual education plan 361.2 meetings when requested by the enrollee or the enrollee's legal 361.3 representative; 361.4 (7) soliciting and analyzing relevant information; 361.5 (8) communicating effectively with the enrollee and with 361.6 other individuals participating in the enrollee's plan; 361.7 (8) educating and communicating effectively with the 361.8 enrollee about good health care practices and risk to the 361.9 enrollee's health with certain behaviors; 361.10 (10) having knowledge of basic enrollee protection 361.11 requirements, including data privacy; 361.12 (11) informing, educating, and assisting the enrollee in 361.13 identifying available service providers and accessing needed 361.14 resources and services beyond the limitations of the medical 361.15 assistance benefit set covered services; and 361.16 (12) providing other services as identified in the person 361.17 support plan. 361.18 (c) For the demonstration project, the qualifications and 361.19 standards for service coordination in this section shall replace 361.20 comparable existing provisions of existing statutes and rules 361.21 governing case management for eligible individuals. 361.22 Subd. 13. [OMBUDSMAN.] Enrollees shall have access to 361.23 ombudsman services established in section 256B.031, subdivision 361.24 6, and advocacy services provided by the ombudsman for mental 361.25 health and mental retardation established in sections 245.91 to 361.26 245.97. The managed care ombudsman and the ombudsman for mental 361.27 health and mental retardation shall coordinate services provided 361.28 to avoid duplication of services. For purposes of the 361.29 demonstration project, the powers and responsibilities of the 361.30 office of the ombudsman for mental health and mental 361.31 retardation, as provided in sections 245.91 to 245.97 are 361.32 expanded to include all eligible individuals, health plan 361.33 companies, agencies, and providers participating in the 361.34 demonstration project. 361.35 Subd. 14. [EXTERNAL ADVOCACY.] In addition to ombudsman 361.36 services, enrollees shall have access to advocacy services on a 362.1 local or regional basis. The purpose of external advocacy 362.2 includes providing individual advocacy services for enrollees 362.3 who have complaints or grievances with the county administrative 362.4 entity, service delivery organization, or a service provider; 362.5 assisting enrollees to understand the service delivery system 362.6 and select providers and, if applicable, a service delivery 362.7 organization; and understand and exercise their rights as an 362.8 enrollee. External advocacy contractors must demonstrate that 362.9 they have the expertise to advocate on behalf of all categories 362.10 of eligible individuals and are independent of the commissioner, 362.11 county authority, county administrative entity, service delivery 362.12 organization, or any service provider within the demonstration 362.13 project. 362.14 These advocacy services shall be provided through the 362.15 ombudsman for mental health and mental retardation directly, or 362.16 under contract with private, nonprofit organizations, with 362.17 funding provided through the demonstration project. The funding 362.18 shall be provided annually to the ombudsman's office based on 362.19 0.1 percent of the projected per person costs that would 362.20 otherwise have been paid under medical assistance 362.21 fee-for-service during those years. Funding for external 362.22 advocacy shall be provided for each year of the demonstration 362.23 period. This funding is in addition to the capitation payment 362.24 available under subdivision 10. 362.25 Subd. 15. [PUBLIC GUARDIANSHIP ALTERNATIVES.] Each county 362.26 authority with enrollees under public guardianship shall develop 362.27 a plan to discharge all those public guardianships and establish 362.28 appropriate private alternatives during the demonstration period. 362.29 The commissioner shall provide county authorities with 362.30 funding for public guardianship alternatives during the first 362.31 year of the demonstration project based on a proposal to 362.32 establish private alternatives for a specific number of 362.33 enrollees under public guardianship. Funding in subsequent 362.34 years shall be based on the county authority's performance in 362.35 achieving discharges of public guardianship and establishing 362.36 appropriate alternatives. The commissioner may establish fiscal 363.1 incentives to encourage county activity in this area. For each 363.2 year of the demonstration period, an appropriation is available 363.3 to the commissioner based on 0.2 percent of the projected per 363.4 person costs that would otherwise have been paid under medical 363.5 assistance fee-for-service for that year. This funding is in 363.6 addition to the capitation payment available under subdivision 363.7 10. 363.8 Subd. 16. [APPEALS.] Enrollees have the appeal rights 363.9 specified in section 256.045. Enrollees may request the 363.10 conciliation process as outlined under section 256.045, 363.11 subdivision 4a. If an enrollee appeals in writing to the state 363.12 agency on or before the latter of the effective day of the 363.13 proposed action or the tenth day after they have received the 363.14 decision of the county administrative entity or service delivery 363.15 organization to reduce, suspend, terminate, or deny continued 363.16 authorization for ongoing services which the enrollee had been 363.17 receiving, the county administrative entity or service delivery 363.18 organization must continue to authorize services at a level 363.19 equal to the level it previously authorized until the state 363.20 agency renders its decision. 363.21 Subd. 17. [APPROVAL OF ALTERNATIVES.] The commissioner may 363.22 approve alternatives to administrative rules if the commissioner 363.23 determines that appropriate alternative measures are in place to 363.24 protect the health, safety, and rights of enrollees and to 363.25 assure that services are of sufficient quality to produce the 363.26 outcomes described in the personal support plans. Prior 363.27 approval waivers, if needed by the demonstration project, shall 363.28 be extended. The commissioner shall not waive the rights or 363.29 procedural protections under sections 245.825; 245.91 to 245.97; 363.30 252.41, subdivision 9; 256B.092, subdivision 10; 626.556; and 363.31 626.557; or procedures for the monitoring of psychotropic 363.32 medications. Prohibited practices as defined in statutes and 363.33 rules governing service delivery to eligible individuals are 363.34 applicable to services delivered under this demonstration 363.35 project. 363.36 Subd. 18. [REPORTING.] Each county authority and service 364.1 delivery organization, and their contracted providers, shall 364.2 submit information as required by the commissioner in the 364.3 intergovernmental contract or service delivery contract, 364.4 including information about complaints, appeals, outcomes, 364.5 costs, including spending on services, service utilization, 364.6 identified unmet needs, services provided, rates of out-of-home 364.7 placement of children, institutionalization, commitments, number 364.8 of public guardianships discharged and alternatives to public 364.9 guardianship established, the use of emergency services, and 364.10 enrollee satisfaction. This information must be made available 364.11 to enrollees and the public. A county authority under an 364.12 intergovernmental contract and a service delivery organization 364.13 under a service delivery contract to provide services must 364.14 provide the most current listing of the providers who are 364.15 participating in the plan. This listing must be provided to 364.16 enrollees and be made available to the public. The 364.17 commissioner, county authorities, and service delivery 364.18 organizations shall also made all contracts and subcontracts 364.19 related to the demonstration project available to the public. 364.20 Subd. 19. [QUALITY MANAGEMENT AND EVALUATION.] County 364.21 authorities and service delivery organizations participating in 364.22 this demonstration project shall provide information to the 364.23 department as specified in the intergovernmental contract or 364.24 service delivery contract for the purpose of project evaluation. 364.25 This information may include both process and outcome evaluation 364.26 measures across areas that shall include enrollee satisfaction, 364.27 service delivery, service coordination, individual outcomes, and 364.28 costs. An independent evaluation of each demonstration site 364.29 shall be conducted prior to expansion of the demonstration 364.30 project to other sites. 364.31 Subd. 20. [LIMITATION ON REIMBURSEMENT.] The county 364.32 administrative entity or service delivery organization may limit 364.33 any reimbursement to providers not employed by or under contract 364.34 with the county administrative entity or service delivery 364.35 organization to the medical assistance rates paid by the 364.36 commissioner of human services to providers for services to 365.1 recipients not participating in the demonstration project. 365.2 Subd. 21. [COUNTY SOCIAL SERVICES OBLIGATIONS.] For 365.3 services that are outside of the medical assistance benefit set 365.4 for enrollees in excluded time status, the county of financial 365.5 responsibility must negotiate the provisions and payment of 365.6 services with the county of service prior to the provision of 365.7 services. 365.8 Subd. 22. [MINNESOTA COMMITMENT ACT SERVICES.] The county 365.9 administrative entity or service delivery organization is 365.10 financially responsible for all services for enrollees covered 365.11 by the medical assistance benefit set and ordered by the court 365.12 under the Minnesota Commitment Act, chapter 253B. The county 365.13 authority shall seek input from the county administrative entity 365.14 or service delivery organization in giving the court information 365.15 about services the enrollee needs and least restrictive 365.16 alternatives. The court order for services is deemed to comply 365.17 with the definition of medical necessity in Minnesota Rules, 365.18 part 9505.0175. The financial responsibility of the county 365.19 administrative entity or service delivery organization for 365.20 regional treatment center services to an enrollee while 365.21 committed to the regional treatment center is limited to 45 days 365.22 following commitment. Voluntary hospitalization for enrollees 365.23 at regional treatment centers must be covered by the county 365.24 administrative entity or service delivery organization if deemed 365.25 medically necessary by the county administrative entity or 365.26 service delivery organization. The regional treatment center 365.27 shall not accept a voluntary admission of an enrollee without 365.28 the authorization of the county administrative entity or service 365.29 delivery organization. An enrollee will maintain enrollee 365.30 status while receiving treatment under the Minnesota Commitment 365.31 Act or voluntary services in a regional treatment center. For 365.32 enrollees committed to the regional treatment center longer than 365.33 45 days, the commissioner may adjust the aggregate capitation 365.34 payments, as specified in the intergovernmental contract or 365.35 service delivery contract. 365.36 Subd. 23. [STAKEHOLDER COMMITTEE.] The commissioner shall 366.1 appoint a stakeholder committee to review and provide 366.2 recommendations on specifications for demonstration projects; 366.3 intergovernmental contracts; service delivery contracts; 366.4 alternatives to administrative rules proposed under subdivision 366.5 17; specific recommendations for legislation required for the 366.6 implementation of this project, including changes to statutes; 366.7 waivers of choice granted under subdivision 9, paragraph (e); 366.8 and other demonstration project policies and procedures as 366.9 requested by the commissioner. The stakeholder committee shall 366.10 include representatives from the following stakeholders: 366.11 consumers and their family members, advocates, advocacy 366.12 organizations, service providers, state government, counties, 366.13 and health plan companies. This stakeholder committee shall be 366.14 in operation for the demonstration period. The county 366.15 authorities shall continue to meet with state government to 366.16 develop the intergovernmental partnership. 366.17 Subd. 24. [REPORT TO THE LEGISLATURE.] By February 15 of 366.18 each year of the demonstration project, the commissioner shall 366.19 report to the legislature on the progress of the demonstration 366.20 project, including enrollee outcomes, enrollee satisfaction, 366.21 fiscal information, other information as described in 366.22 subdivision 18, recommendations from the stakeholder committee, 366.23 and descriptions of any rules or other administrative procedures 366.24 waived. 366.25 Subd. 25. [SEVERABILITY.] If any subdivision of this 366.26 section is not approved by the United States Department of 366.27 Health and Human Services, the commissioner, with the approval 366.28 of the county authority, retains the authority to implement the 366.29 remaining subdivisions. 366.30 Subd. 26. [SOUTHERN MINNESOTA HEALTH INITIATIVE PILOT 366.31 PROJECT.] When the commissioner contracts under subdivisions 1 366.32 and 6, paragraph (a), with the joint powers board for Blue 366.33 Earth, Freeborn, LeSueur, and Rice counties to participate in 366.34 the demonstration project for persons with disabilities under 366.35 subdivision 5, the commissioner shall also require health plans 366.36 participating in those counties under this section to contract 367.1 with the southern Minnesota health initiative (SMHI) joint 367.2 powers board to provide covered mental health and chemical 367.3 dependency services for the nonelderly/nondisabled persons who 367.4 reside in one of the four counties and who are required or elect 367.5 to participate in the prepaid medical assistance and general 367.6 assistance medical care programs. Enrollees may obtain covered 367.7 mental health and chemical dependency services through the SMHI 367.8 or through other health plan contractors. Participation of the 367.9 nonelderly/nondisabled with the SMHI is voluntary. The 367.10 commissioner shall identify a monthly per capita payment amount 367.11 that health plans are required to pay to the SMHI for all 367.12 nonelderly/nondisabled recipients who choose the SMHI for their 367.13 mental health and chemical dependency services. 367.14 ARTICLE 9 367.15 MISCELLANEOUS 367.16 Section 1. Minnesota Statutes 1996, section 16A.124, 367.17 subdivision 4b, is amended to read: 367.18 Subd. 4b. [HEALTH CARE PAYMENTS.] The commissioner of 367.19 human services must pay or deny a valid vendor obligation for 367.20 health services under the medical assistance, general assistance 367.21 medical care, or MinnesotaCare program within 30 days after 367.22 receipt. A "valid vendor obligation" means a clean claim 367.23 submitted directly to the commissioner by an eligible health 367.24 care provider for health services provided to an eligible 367.25 recipient. A "clean claim" means an original paper or 367.26 electronic claim with correct data elements, prepared in 367.27 accordance with the commissioner's published specifications for 367.28 claim preparation, that does not require an attachment or text 367.29 information to pay or deny the claim. Adjustment claims, claims 367.30 with attachments and text information, and claims submitted to 367.31 the commissioner as the secondary or tertiary payer, that have 367.32 been prepared in accordance with the commissioner's published 367.33 specifications, must be adjudicated within 90 days after receipt. 367.34 The agency is not required to make an interest penalty 367.35 payment on claims for which payment has been delayed for 367.36 purposes of reviewing potentially fraudulent or abusive billing 368.1 practices, if there is an eventual finding by the agency of 368.2 fraud or abuse. 368.3 Sec. 2. [181.301] [AFTER ACCIDENT COUNSELING.] 368.4 Subdivision 1. [COUNSELING AND LEAVE.] Every railroad 368.5 company shall make available to every affected member of an 368.6 operating crew involved in an accident on its railroad 368.7 right-of-way, which results in loss of life, counseling 368.8 services, or other critical incident stress debriefing services 368.9 within 48 hours of the accident. Upon request, the operating 368.10 crew members involved in the accident may be relieved from duty, 368.11 with compensation and applicable benefits, for up to three work 368.12 days following the accident. After returning to duty, a crew 368.13 member experiencing traumatic symptoms related to the accident 368.14 may be afforded additional time off upon recommendation by the 368.15 counseling service provider. 368.16 Subd. 2. [DATA PRIVACY.] No statements made in or 368.17 information derived from peer or professional counseling 368.18 performed under this section may be used in any disciplinary 368.19 proceedings against any employee or in any legal action 368.20 involving any party to the accident. 368.21 Subd. 3. [REQUEST FOR PLAN BY COMMISSIONER.] The 368.22 commissioner of health may request a copy of the railroad 368.23 company's plan which demonstrates evidence that the services 368.24 required in subdivision 1 are available to railroad employees. 368.25 Sec. 3. Minnesota Statutes 1996, section 245.03, 368.26 subdivision 2, is amended to read: 368.27 Subd. 2. [MISSION; EFFICIENCY.] It is part of the 368.28 department's mission that within the department's resources the 368.29 commissioner shall endeavor to: 368.30 (1) prevent the waste or unnecessary spending of public 368.31 money; 368.32 (2) use innovative fiscal and human resource practices to 368.33 manage the state's resources and operate the department as 368.34 efficiently as possible, including the authority to consolidate 368.35 different nonentitlement grant programs, having similar 368.36 functions or serving similar populations, as may be determined 369.1 by the commissioner, while protecting the original purposes of 369.2 the programs. Nonentitlement grant funds consolidated by the 369.3 commissioner shall be reflected in the department's biennial 369.4 budget. With approval of the commissioner, vendors who are 369.5 eligible for funding from any of the commissioner's granting 369.6 authority under section 256.01, subdivision 2, paragraph (1), 369.7 clause (f), may submit a single application for a grant 369.8 agreement including multiple awards; 369.9 (3) coordinate the department's activities wherever 369.10 appropriate with the activities of other governmental agencies; 369.11 (4) use technology where appropriate to increase agency 369.12 productivity, improve customer service, increase public access 369.13 to information about government, and increase public 369.14 participation in the business of government; 369.15 (5) utilize constructive and cooperative labor-management 369.16 practices to the extent otherwise required by chapters 43A and 369.17 179A; 369.18 (6) include specific objectives in the performance report 369.19 required under section 15.91 to increase the efficiency of 369.20 agency operations, when appropriate; and 369.21 (7) recommend to the legislature, in the performance report 369.22 of the department required under section 15.91, appropriate 369.23 changes in law necessary to carry out the mission of the 369.24 department. 369.25 Sec. 4. Minnesota Statutes 1996, section 256.025, 369.26 subdivision 1, is amended to read: 369.27 Subdivision 1. [DEFINITIONS.] (a) For purposes of this 369.28 section, the following terms have the meanings given them. 369.29 (b) "Base amount" means the calendar year 1990 county share 369.30 of county agency expenditures for all of the programs specified 369.31 in subdivision 2, except for the programs in subdivision 2, 369.32 clauses (4), (7), and (13). The 1990 base amount for 369.33 subdivision 2, clause (4), shall be reduced by one-seventh for 369.34 each county, and the 1990 base amount for subdivision 2, clause 369.35 (7), shall be reduced by seven-tenths for each county, and those 369.36 amounts in total shall be the 1990 base amount for group 370.1 residential housing in subdivision 2, clause (13). Effective 370.2 January 1, 1998, the base amount for the programs in subdivision 370.3 2, clauses (1) and (6), shall be eliminated and shall be 370.4 considered the 1990 base amount for Minnesota family investment 370.5 program-statewide in subdivision 2, clause (14). 370.6 (c) "County agency expenditure" means the total expenditure 370.7 or cost incurred by the county of financial responsibility for 370.8 the benefits and services for each of the programs specified in 370.9 subdivision 2, excluding county optional costs which are not 370.10 reimbursable with state funds. The term includes the federal, 370.11 state, and county share of costs for programs in which there is 370.12 federal financial participation. For programs in which there is 370.13 no federal financial participation, the term includes the state 370.14 and county share of costs. The term excludes county 370.15 administrative costs, unless otherwise specified. 370.16 (d) "Nonfederal share" means the sum of state and county 370.17 shares of costs of the programs specified in subdivision 2. 370.18 (e) The "county share of county agency expenditures growth 370.19 amount" is the amount by which the county share of county agency 370.20 expenditures in calendar years 1991 to 2002 has increased over 370.21 the base amount. 370.22 Sec. 5. Minnesota Statutes 1996, section 256.025, 370.23 subdivision 2, is amended to read: 370.24 Subd. 2. [COVERED PROGRAMS AND SERVICES.] The procedures 370.25 in this section govern payment of county agency expenditures for 370.26 benefits and services distributed under the following programs: 370.27 (1) aid to families with dependent children under sections 370.28 256.82, subdivision 1, and 256.935, subdivision 1; 370.29 (2) medical assistance under sections 256B.041, subdivision 370.30 5, and 256B.19, subdivision 1; 370.31 (3) general assistance medical care under section 256D.03, 370.32 subdivision 6; 370.33 (4) general assistance under section 256D.03, subdivision 370.34 2; 370.35 (5) work readiness under section 256D.03, subdivision 2, 370.36 for assistance costs incurred prior to July 1, 1995; 371.1 (6) emergency assistance under section 256.871, subdivision 371.2 6; 371.3 (7) Minnesota supplemental aid under section 256D.36, 371.4 subdivision 1; 371.5 (8) preadmission screening and alternative care grants; 371.6 (9) work readiness services under section 256D.051 for 371.7 employment and training services costs incurred prior to July 1, 371.8 1995; 371.9 (10) case management services under section 256.736, 371.10 subdivision 13, for case management service costs incurred prior 371.11 to July 1, 1995; 371.12 (11) general assistance claims processing, medical 371.13 transportation and related costs; 371.14 (12) medical assistance, medical transportation and related 371.15 costs;and371.16 (13) group residential housing under section 256I.05, 371.17 subdivision 8, transferred from programs in clauses (4) and (7); 371.18 and 371.19 (14) Minnesota family investment program-statewide under 371.20 section 256J.02, subdivision 2, clauses (1), (3), and (4), 371.21 transferred from programs in clauses (1) and (6). 371.22 Sec. 6. Minnesota Statutes 1996, section 256.9742, is 371.23 amended to read: 371.24 256.9742 [DUTIES AND POWERS OF THE OFFICE.] 371.25 Subdivision 1. [DUTIES.] Theombudsmanombudsman's program 371.26 shall: 371.27 (1) gather information and evaluate any act, practice, 371.28 policy, procedure, or administrative action of a long-term care 371.29 facility, acute care facility, home care service provider, or 371.30 government agency that may adversely affect the health, safety, 371.31 welfare, or rights of any client; 371.32 (2) mediate or advocate on behalf of clients; 371.33 (3) monitor the development and implementation of federal, 371.34 state, or local laws, rules, regulations, and policies affecting 371.35 the rights and benefits of clients; 371.36 (4) comment on and recommend to the legislature and public 372.1 and private agencies regarding laws, rules, regulations, and 372.2 policies affecting clients; 372.3 (5) inform public agencies about the problems of clients; 372.4 (6) provide for training of volunteers and promote the 372.5 development of citizen participation in the work of the office; 372.6 (7) conduct public forums to obtain information about and 372.7 publicize issues affecting clients; 372.8 (8) provide public education regarding the health, safety, 372.9 welfare, and rights of clients; and 372.10 (9) collect and analyze data relating to complaints, 372.11 conditions, and services. 372.12 Subd. 1a. [DESIGNATION; LOCAL OMBUDSMANREPRESENTATIVES372.13 STAFF AND VOLUNTEERS.] (a) In designating an individual to 372.14 perform duties under this section, the ombudsman must determine 372.15 that the individual is qualified to perform the duties required 372.16 by this section. 372.17 (b) An individual designated as ombudsman staff under this 372.18 section must successfully complete an orientation training 372.19 conducted under the direction of the ombudsman or approved by 372.20 the ombudsman. Orientation training shall be at least 20 hours 372.21 and will consist of training in: investigation, dispute 372.22 resolution, health care regulation, confidentiality, resident 372.23 and patients' rights, and health care reimbursement. 372.24 (c) The ombudsman shall develop and implement a continuing 372.25 education program for individuals designated as ombudsman staff 372.26 under this section. The continuing education program shall be 372.27 at least 60 hours annually. 372.28 (d) An individual designated as an ombudsman volunteer 372.29 under this section must successfully complete an approved 372.30 orientation training course with a minimum curriculum including 372.31 federal and state bills of rights for long-term care residents, 372.32 acute hospital patients and home care clients, the Vulnerable 372.33 Adults Act, confidentiality, and the role of the ombudsman. 372.34 (e) The ombudsman shall develop and implement a continuing 372.35 education program for ombudsman volunteers which will provide a 372.36 minimum of 12 hours of continuing education per year. 373.1 (f) The ombudsman may withdraw an individual's designation 373.2 if the individual fails to perform duties of this section or 373.3 meet continuing education requirements. The individual may 373.4 request a reconsideration of such action by the board on aging 373.5 whose decision shall be final. 373.6 Subd. 2. [IMMUNITY FROM LIABILITY.] The ombudsman or 373.7 designee including staff and volunteers under this section is 373.8 immune from civil liability that otherwise might result from the 373.9 person's actions or omissions if the person's actions are in 373.10 good faith, are within the scope of the person's 373.11 responsibilities as an ombudsman or designee, and do not 373.12 constitute willful or reckless misconduct. 373.13 Subd. 3. [POSTING.] Every long-term care facility and 373.14 acute care facility shall post in a conspicuous place the 373.15 address and telephone number of the office. A home care service 373.16 provider shall provide all recipients, including those in 373.17 elderly housing with services under chapter 144D, with the 373.18 address and telephone number of the office. Counties shall 373.19 provide clients receiving a consumer support grant or a service 373.20 allowance with the name, address, and telephone number of the 373.21 office. The posting or notice is subject to approval by the 373.22 ombudsman. 373.23 Subd. 4. [ACCESS TO LONG-TERM CARE AND ACUTE CARE 373.24 FACILITIES AND CLIENTS.] The ombudsman or designee may: 373.25 (1) enter any long-term care facility without notice at any 373.26 time; 373.27 (2) enter any acute care facility without notice during 373.28 normal business hours; 373.29 (3) enter any acute care facility without notice at any 373.30 time to interview a patient or observe services being provided 373.31 to the patient as part of an investigation of a matter that is 373.32 within the scope of the ombudsman's authority, but only if the 373.33 ombudsman's or designee's presence does not intrude upon the 373.34 privacy of another patient or interfere with routine hospital 373.35 services provided to any patient in the facility; 373.36 (4) communicate privately and without restriction with any 374.1 client in accordance with section 144.651, as long as the 374.2 ombudsman has the client's consent for such communication; 374.3 (5) inspect records of a long-term care facility, home care 374.4 service provider, or acute care facility that pertain to the 374.5 care of the client according to sections 144.335 and 144.651; 374.6 and 374.7 (6) with the consent of a client or client's legal 374.8 guardian, the ombudsman or designated staff shall have access to 374.9 review records pertaining to the care of the client according to 374.10 sections 144.335 and 144.651. If a client cannot consent and 374.11 has no legal guardian, access to the records is authorized by 374.12 this section. 374.13 A person who denies access to the ombudsman or designee in 374.14 violation of this subdivision or aids, abets, invites, compels, 374.15 or coerces another to do so is guilty of a misdemeanor. 374.16 Subd. 5. [ACCESS TO STATE RECORDS.] The ombudsman or 374.17 designee, excluding volunteers, has access to data of a state 374.18 agency necessary for the discharge of the ombudsman's duties, 374.19 including records classified confidential or private under 374.20 chapter 13, or any other law. The data requested must be 374.21 related to a specific case and is subject to section 13.03, 374.22 subdivision 4. If the data concerns an individual, the 374.23 ombudsman or designee shall first obtain the individual's 374.24 consent. If the individual cannot consent and has no legal 374.25 guardian, then access to the data is authorized by this section. 374.26 Each state agency responsible for licensing, regulating, 374.27 and enforcing state and federal laws and regulations concerning 374.28 long-term care, home care service providers, and acute care 374.29 facilities shall forward to the ombudsman on a quarterly basis, 374.30 copies of all correction orders, penalty assessments, and 374.31 complaint investigation reports, for all long-term care 374.32 facilities, acute care facilities, and home care service 374.33 providers. 374.34 Subd. 6. [PROHIBITION AGAINST DISCRIMINATION OR 374.35 RETALIATION.] (a) No entity shall take discriminatory, 374.36 disciplinary, or retaliatory action against an employee or 375.1 volunteer, or a patient, resident, or guardian or family member 375.2 of a patient, resident, or guardian for filing in good faith a 375.3 complaint with or providing information to the ombudsman or 375.4 designee including volunteers. A person who violates this 375.5 subdivision or who aids, abets, invites, compels, or coerces 375.6 another to do so is guilty of a misdemeanor. 375.7 (b) There shall be a rebuttable presumption that any 375.8 adverse action, as defined below, within 90 days of report, is 375.9 discriminatory, disciplinary, or retaliatory. For the purpose 375.10 of this clause, the term "adverse action" refers to action taken 375.11 by the entity involved in a report against the person making the 375.12 report or the person with respect to whom the report was made 375.13 because of the report, and includes, but is not limited to: 375.14 (1) discharge or transfer from a facility; 375.15 (2) termination of service; 375.16 (3) restriction or prohibition of access to the facility or 375.17 its residents; 375.18 (4) discharge from or termination of employment; 375.19 (5) demotion or reduction in remuneration for services; and 375.20 (6) any restriction of rights set forth in section 144.651 375.21 or 144A.44. 375.22 Sec. 7. Minnesota Statutes 1996, section 256.9744, 375.23 subdivision 2, is amended to read: 375.24 Subd. 2. [RELEASE.] Data maintained by the office that 375.25 does not relate to the identity of a complainant, a client 375.26 receiving home-care services, or a resident of a long-term 375.27 facility may be released at the discretion of the ombudsman 375.28 responsible for maintaining the data. Data relating to the 375.29 identity of a complainant, a client receiving home-care 375.30 services, or a resident of a long-term facility may be released 375.31 only with the consent of the complainant, the client or resident 375.32 or by court order. 375.33 Sec. 8. Minnesota Statutes 1996, section 256E.06, is 375.34 amended by adding a subdivision to read: 375.35 Subd. 2b. [COUNTY SOCIAL SERVICE GRANTS FOR FORMER GRH 375.36 RECIPIENTS.] (a) Notwithstanding subdivisions 1 and 2, and 376.1 notwithstanding the provision in Laws 1995, chapter 207, article 376.2 1, section 2, subdivision 3, that authorized the commissioner to 376.3 transfer funds from the group residential housing account to 376.4 community social services aids to counties, beginning July 1, 376.5 1995, money used to provide continuous funding for assistance to 376.6 persons who are no longer eligible for assistance under the 376.7 group residential housing program under chapter 256I, as 376.8 specified in paragraph (b), is added to the community social 376.9 services aid amount for the county in which the group 376.10 residential housing setting for which the person is no longer 376.11 eligible is located. Notwithstanding the provision in Laws 376.12 1995, chapter 207, article 1, section 2, subdivision 3, that 376.13 required the increased community social services act 376.14 appropriations to be used to proportionately increase each 376.15 county's aid, this money must not be apportioned to any other 376.16 county or counties. 376.17 (b) Former group residential housing recipients for whom 376.18 money is added to a county's aid amount under paragraph (a) 376.19 include: 376.20 (1) persons receiving services in Hennepin county from a 376.21 provider that on August 1, 1984, was licensed under Minnesota 376.22 Rules, parts 9525.0520 to 9525.0660, but was funded as a group 376.23 residence under the general assistance or Minnesota supplemental 376.24 aid programs; 376.25 (2) persons residing in a setting with a semi-independent 376.26 living services license under Minnesota Rules, parts 9525.0900 376.27 to 9525.1020; or 376.28 (3) persons residing in family foster care settings who 376.29 have become ineligible for group residential housing assistance 376.30 because they receive services through the medical assistance 376.31 community-based waiver for persons with mental retardation or 376.32 related conditions under section 256B.0916. 376.33 Sec. 9. Section 256J.02, as proposed by S.F. No. 1, if 376.34 enacted, is amended by adding a subdivision to read: 376.35 Subd. 6. [COUNTY SHARE.] The county share of the MFIP-S 376.36 program shall be eight percent of the expenditures for the 377.1 purposes under subdivision 2, clauses (1), (3), and (4). The 377.2 state shall reimburse the counties according to the payment 377.3 schedule set forth in section 256.025. Payment under this 377.4 subdivision is subject to the provisions of section 256.017. 377.5 Sec. 10. [256J.03] [TANF RESERVE ACCOUNT.] 377.6 There shall be created in the federal fund in the state 377.7 treasury a temporary assistance for needy families (TANF) 377.8 reserve account. All unexpended federal TANF block grant funds 377.9 authorized under title I of Public Law Number 104-193 and 377.10 appropriated for the biennium do not cancel to the general fund 377.11 but shall be transferred to the TANF reserve account. Amounts 377.12 remaining in the TANF reserve account do not cancel, but remain 377.13 in the account until appropriated. 377.14 Sec. 11. [256J.80] [JOBS-PLUS PILOT PROJECT.] 377.15 Subdivision 1. [PROJECT AUTHORIZED.] A three-year 377.16 jobs-plus pilot project administered by the Manpower 377.17 Demonstration Research Corporation is authorized in Ramsey 377.18 county. The commissioner of human services shall cooperate with 377.19 the St. Paul public housing authority, Ramsey county, the St. 377.20 Paul workforce development center, and the Manpower 377.21 Demonstration Research Corporation to develop and implement the 377.22 project. 377.23 Subd. 2. [PROJECT DESCRIPTION.] (a) Jobs-plus shall offer 377.24 intensive employment-related services and activities to 377.25 working-age family residents of the Mt. Airy Homes public 377.26 housing development. McDonough Homes and Roosevelt Homes public 377.27 housing developments shall be used as comparison sites. The 377.28 project shall incorporate community support for work, work 377.29 incentives, and best practices in preparing people for sustained 377.30 employment and in linking residents with jobs. 377.31 (b) The Mt. Airy community center shall serve as a hub for 377.32 delivery of pilot project services, delivery of related 377.33 services, and promotion of community support for work. The 377.34 center shall provide space for economic development and 377.35 supportive services programming and for activities that best 377.36 respond to diverse resident needs, including expanded child 378.1 care, computer technology access, employment-related and 378.2 workforce literacy training, job clubs, job fairs, special 378.3 workshops, and life skills training. 378.4 (c) The pilot project shall promote the involvement of Mt. 378.5 Airy Homes residents in the development and implementation of 378.6 the pilot project through community meetings, celebrations and 378.7 recognition events, and the inclusion of resident 378.8 representatives in planning and implementation activities. 378.9 (d) The commissioner may authorize work incentives that 378.10 exceed the incentives provided to participants in the Minnesota 378.11 family investment program-statewide (MFIP-S). 378.12 (e) The commissioner of human services, the St. Paul public 378.13 housing authority, Ramsey county, the St. Paul workforce 378.14 development center, and the Manpower Development Research 378.15 Corporation may negotiate changes as necessary in the program 378.16 outlined in paragraphs (a) to (d) in order to develop an 378.17 effective jobs-plus project. 378.18 Subd. 3. [PROJECT FUNDING.] The commissioner of human 378.19 services may authorize work incentives that are different from 378.20 the incentives provided under the MFIP-S program only if 378.21 nonstate funding is available to defray the additional costs 378.22 associated with utilizing the different work incentives. 378.23 Subd. 4. [RELEASE OF DATA.] Notwithstanding the provisions 378.24 of chapter 13, Ramsey county and the relevant state agencies 378.25 shall, upon request, release to the Manpower Demonstration 378.26 Research Corporation data on public assistance benefits 378.27 received, wages earned, and unemployment insurance benefits 378.28 received by residents of the Mt. Airy Homes, McDonough Homes, 378.29 and Roosevelt Homes public housing developments in St. Paul 378.30 during the period from 1992 to 2002 for the purposes of 378.31 complying with the research and evaluation requirements of the 378.32 jobs-plus program. 378.33 Sec. 12. Minnesota Statutes 1996, section 518.17, 378.34 subdivision 1, is amended to read: 378.35 Subdivision 1. [THE BEST INTERESTS OF THE CHILD.] (a) "The 378.36 best interests of the child" means all relevant factors to be 379.1 considered and evaluated by the court including: 379.2 (1) the wishes of the child's parent or parents as to 379.3 custody; 379.4 (2) the reasonable preference of the child, if the court 379.5 deems the child to be of sufficient age to express preference; 379.6 (3) the child's primary caretaker; 379.7 (4) the intimacy of the relationship between each parent 379.8 and the child; 379.9 (5) the interaction and interrelationship of the child with 379.10 a parent or parents, siblings, and any other person who may 379.11 significantly affect the child's best interests; 379.12 (6) the child's adjustment to home, school, and community; 379.13 (7) the length of time the child has lived in a stable, 379.14 satisfactory environment and the desirability of maintaining 379.15 continuity; 379.16 (8) the permanence, as a family unit, of the existing or 379.17 proposed custodial home; 379.18 (9) the mental and physical health of all individuals 379.19 involved; except that a disability, as defined in section 379.20 363.01, of a proposed custodian or the child shall not be 379.21 determinative of the custody of the child, unless the proposed 379.22 custodial arrangement is not in the best interest of the child; 379.23 (10) the capacity and disposition of the parties to give 379.24 the child love, affection, and guidance, and to continue 379.25 educating and raising the child in the child's culture and 379.26 religion or creed, if any; 379.27 (11) the child's cultural background; 379.28 (12) the effect on the child of the actions of an abuser, 379.29 if related to domestic abuse, as defined in section 518B.01, 379.30 that has occurred between the parents or between a parent and 379.31 another individual, whether or not the individual alleged to 379.32 have committed domestic abuse is or ever was a family or 379.33 household member of the parent; and 379.34 (13) except in cases in which a finding of domestic abuse 379.35 as defined in section 518B.01 has been made, the disposition of 379.36 each parent to encourage and permit frequent and continuing 380.1 contact by the other parent with the child. 380.2 The court may not use one factor to the exclusion of all 380.3 others. The primary caretaker factor may not be used as a 380.4 presumption in determining the best interests of the child. The 380.5 court must make detailed findings on each of the factors and 380.6 explain how the factors led to its conclusions and to the 380.7 determination of the best interests of the child. 380.8 (b) The court shall not consider conduct of a proposed 380.9 custodian that does not affect the custodian's relationship to 380.10 the child. 380.11 Sec. 13. [STUDY ON OMBUDSMAN SERVICES.] 380.12 The senate health and family security budget division and 380.13 the house health and human services finance division shall (1) 380.14 study the regulatory effectiveness and efficiency of the current 380.15 ombudsman services to the elderly, developmentally disabled, 380.16 chemically dependent, and mentally ill; (2) study the 380.17 overlapping of services among all protective and advocacy 380.18 services currently funded by the state; and (3) make 380.19 recommendations on coordinating the current ombudsman services, 380.20 for the above described populations, in order to improve their 380.21 effectiveness and efficiency. The recommendations may include 380.22 proposed statute and rule changes relating to advocacy practices 380.23 and personal and professional conduct. 380.24 Sec. 14. [HEALTH CARE CONSUMER ASSISTANCE GRANTS; BOARD ON 380.25 AGING.] 380.26 The board on aging shall award a grant to each of the 14 380.27 area agencies on aging to develop projects to provide 380.28 information about health coverage and to provide assistance to 380.29 individuals in obtaining public and private health care benefits. 380.30 Projects must: 380.31 (1) train and support staff and volunteers to work in 380.32 partnership to provide one-on-one information and assistance 380.33 services; 380.34 (2) provide individual consumers with assistance in 380.35 understanding the terms of a certificate, contract, or policy of 380.36 health coverage, including but not limited to, terms relating to 381.1 covered services, limitations on services, limitations on access 381.2 to providers, and enrollee complaint and appeal procedures; 381.3 (3) assist individuals to understand medical bills and to 381.4 process health care claims and appeals to obtain health care 381.5 benefits; 381.6 (4) coordinate with existing health insurance counseling 381.7 programs serving Medicare eligible individuals or establish 381.8 programs to serve all consumers; 381.9 (5) target those individuals determined to be in greatest 381.10 social and economic need for counseling services; and 381.11 (6) operate according to United States Code, title 42, 381.12 section 1395b-4, if serving Medicare beneficiaries. 381.13 Sec. 15. [SERVICES PROVIDED TO DEAF-BLIND CHILDREN BY 381.14 LOCAL ORGANIZATIONS; PARENTAL CONTRIBUTION REQUIRED.] (a) An 381.15 organization that receives a grant from the commissioner of 381.16 human services to provide services to deaf-blind children and 381.17 their families must require the deaf-blind child's parents to be 381.18 responsible for the cost of services provided, based upon the 381.19 parents' ability to pay. In determining a parent's ability to 381.20 pay, the organization must utilize the contribution amount 381.21 sliding scale specified in Minnesota Statutes, section 252.27, 381.22 subdivision 2a. The commissioner must provide technical 381.23 assistance to the organization to assist the organization to 381.24 implement this sliding scale requirement. 381.25 (b) The commissioner and the organization must monitor the 381.26 implementation of the sliding scale requirement in paragraph 381.27 (a). If the commissioner and the organization develop 381.28 recommendations for an alternative method of implementing a 381.29 parental contribution sliding scale requirement that is easier 381.30 for the organization to administer, the commissioner must report 381.31 these recommendations to the chairs of the house health and 381.32 human services finance division and the senate health and family 381.33 security budget division by January 31, 1998. 381.34 Sec. 16. [VETERANS HOMES IMPROVEMENTS.] 381.35 (a) The veterans homes board of directors may make and 381.36 maintain the following improvements to the indicated veterans 382.1 homes using money donated for those purposes: 382.2 (1) at the Hastings veterans home, an outdoor bus shelter 382.3 and smoking area for residents and a pole barn for storage of 382.4 residents' property; 382.5 (2) at the Luverne veterans home, a garage, picnic shelter, 382.6 and three-season porch; and 382.7 (3) at the Silver Bay veterans home, a garage, maintenance, 382.8 and storage building, a three-season porch at the east entrance, 382.9 and landscaping as follows: 382.10 (i) walking and wheelchair trails; 382.11 (ii) stationary benches along trails; 382.12 (iii) flag pole relocation; 382.13 (iv) a gazebo in the dementia wander area; and 382.14 (v) two patio areas. 382.15 (b) Money donated for these improvements must be accounted 382.16 for in accordance with Minnesota Statutes, section 198.161. 382.17 Sec. 17. [REPEALER.] 382.18 Minnesota Statutes, section 256.026, is repealed effective 382.19 January 1, 1998. 382.20 Sec. 18. [EFFECTIVE DATE.] 382.21 Sections 2 and 8 are effective the day following final 382.22 enactment. 382.23 ARTICLE 10 382.24 MARRIAGE PROVISIONS 382.25 Section 1. Minnesota Statutes 1996, section 517.01, is 382.26 amended to read: 382.27 517.01 [MARRIAGE A CIVIL CONTRACT.] 382.28 Marriage, so far as its validity in law is concerned, is a 382.29 civil contract between a man and a woman, to which the consent 382.30 of the parties, capable in law of contracting, is essential. 382.31 Lawful marriage may be contracted only between persons of the 382.32 opposite sex and only when a license has been obtained as 382.33 provided by law and when the marriage is contracted in the 382.34 presence of two witnesses and solemnized by one authorized, or 382.35 whom one or both of the parties in good faith believe to be 382.36 authorized, so to do. Marriages subsequent to April 26, 1941, 383.1 not so contracted shall be null and void. 383.2 Sec. 2. Minnesota Statutes 1996, section 517.03, is 383.3 amended to read: 383.4 517.03 [PROHIBITED MARRIAGES.] 383.5 Subdivision 1. [GENERAL.] (a) The following marriages are 383.6 prohibited: 383.7(a)(1) a marriage entered into before the dissolution of 383.8 an earlier marriage of one of the parties becomes final, as 383.9 provided in section 518.145 or by the law of the jurisdiction 383.10 where the dissolution was granted; 383.11(b)(2) a marriage between an ancestor and a descendant, or 383.12 between a brother and a sister, whether the relationship is by 383.13 the half or the whole blood or by adoption; 383.14(c)(3) a marriage between an uncle and a niece, between an 383.15 aunt and a nephew, or between first cousins, whether the 383.16 relationship is by the half or the whole blood, except as to 383.17 marriages permitted by the established customs of aboriginal 383.18 cultures;provided, however, thatand 383.19 (4) a marriage between persons of the same sex. 383.20 (b) A marriage entered into by persons of the same sex, 383.21 either under common law or statute, that is recognized by 383.22 another state or foreign jurisdiction is void in this state and 383.23 contractual rights granted by virtue of the marriage or its 383.24 termination are unenforceable in this state. A same-sex 383.25 relationship may not be recognized by this state as being 383.26 entitled to the benefits of marriage. 383.27 Subd. 2. [MENTALLY RETARDED PERSONS; CONSENT BY 383.28 COMMISSIONER OF HUMAN SERVICES.] Mentally retarded persons 383.29 committed to the guardianship of the commissioner of human 383.30 services and mentally retarded persons committed to the 383.31 conservatorship of the commissioner of human services in which 383.32 the terms of the conservatorship limit the right to marry, may 383.33 marry on receipt of written consent of the commissioner. The 383.34 commissioner shall grant consent unless it appears from the 383.35 commissioner's investigation that the marriage is not in the 383.36 best interest of the ward or conservatee and the public. The 384.1 court administrator of the district court in the county where 384.2 the application for a license is made by the ward or conservatee 384.3 shall not issue the license unless the court administrator has 384.4 received a signed copy of the consent of the commissioner of 384.5 human services. 384.6 Sec. 3. Minnesota Statutes 1996, section 517.08, 384.7 subdivision 1a, is amended to read: 384.8 Subd. 1a. Application for a marriage license shall be made 384.9 upon a form provided for the purpose and shall contain the 384.10 following information: 384.11 (1) the full names of the parties,and the sex of each 384.12 party; 384.13 (2) their post office addresses and county and state of 384.14 residence,; 384.15 (3) their full ages,; 384.16 (4) if either party has previously been married, the 384.17 party's married name, and the date, place and court in which the 384.18 marriage was dissolved or annulled or the date and place of 384.19 death of the former spouse,; 384.20 (5) if either party is a minor, the name and address of the 384.21 minor's parents or guardian,; 384.22 (6) whether the parties are related to each other, and, if 384.23 so, their relationship,; 384.24 (7) the name and date of birth of any child of which both 384.25 parties are parents, born before the making of the application, 384.26 unless their parental rights and the parent and child 384.27 relationship with respect to the child have been terminated,; 384.28 (8) address of the bride and groom after the marriage to 384.29 which the court administrator shall send a certified copy of the 384.30 marriage certificate,; and 384.31 (9) the full names the parties will have after marriage. 384.32 Sec. 4. Minnesota Statutes 1996, section 517.20, is 384.33 amended to read: 384.34 517.20 [APPLICATION.] 384.35 Except as provided in section 517.03, subdivision 1, 384.36 paragraph (b), all marriages contracted within this state prior 385.1 to March 1, 1979 or outside this state that were valid at the 385.2 time of the contract or subsequently validated by the laws of 385.3 the place in which they were contracted or by the domicile of 385.4 the parties are valid in this state. 385.5 Sec. 5. [EFFECTIVE DATE.] 385.6 Sections 1, 2, and 4 are effective the day following final 385.7 enactment. Section 3 is effective July 1, 1997. Section 2, 385.8 subdivision 1, paragraph (b), and section 4 apply to all 385.9 marriages entered into in other jurisdictions before, on, or 385.10 after the effective date.